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City Council Agenda Packet 08-26-2002
AGENDA REGULAR MEETING - MONT�CELLO CITY COUNCIL Monday, August 26, 2002 - 7 p.m. Mayor: Roger Belsaas Council Members: Roger Carlson, Clint Herbst, Brian Stumpf and Bruce Thielen 1. Call to Order and Pledge of Allegiance. 2.A. Approve minutes of August 12, 2002 regular Council meeting. B. Approve minutes of August 12, 2002 special meeting. 3. Consideration of adding items to the agenda. 4. Citizen commen�t�sr/petitions, request and complaints. S c a* Dt ay •-`F 9-k Dzq.T, ®`5 S -q 2S — S`1, Ul TMs — S' -r, �' C14 (de< A -r. 5. Consent agenda. A. Consideration to review GMEF Loan No. 022 for compliance with EDA-GMEF Business Subsidy Criteria. UMC Applicant. B. Consideration of accepting petition, ordering feasibility study, accepting feasibility study, ordering plans and specifications, accepting quotes and ordering change order to CSAR 75 project allowing development of utility connections at Maple Street. C. Consideration of authorizing purchase of replacement cooler shelving for liquor store. 6. Consideration of items removed from the consent agenda for discussion. 7. Public Hearing - Consideration to approve business subsidy for UMC and to authorize entering into the Contract for Private Development among the HRA, the City and Terrance and Mary Tomann Limited Partnership 8 Public Hearing - Consideration to adopt a resolution authorizing application to the Minnesota department of Trade and Economic Development (DIED) for funding an economic development project.. 9. Public Hearing - Consideration of vacation of easements in Outlot F of Groveland Addition 10. Consideration of request for amendment to City Ordinance on Tattoo Parlors/Body Piercing Establishments relating to training requirements. 11. Consideration of adoption of amendments to the Comprehensive Plan. Agenda Monticello City Council August 26, 2002 Page 2 12. Review new owner development proposal for consistency with Montissippi Trail Planned Unit Development (Timber Ridge) - Applicant: Mike Schneider- Homestead Multi -family Development Corporation. 13. Approve payment of bills for August. 14. Adjourn MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday August 12, 2002 - 7 p.m. Members Present: Roger Belsaas, Roger Carlson, Clint Herbst, Brian Stumpf and Bruce Thielen Members Absent: None 1. Call to order and Nedge of Allegiance. Mayor Belsaas called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was said. 2. Approve minutes of Julv 22, 2002 regular Council meeting. ROGER CARLSON MOVED TO APPROVE THE MINUTES OF THE JULY 22, 2002 REGULAR COUNCIL MEETING. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED WITH CLINT HERBST ABSTAINING. 3. Consideration of adding items to the agenda. BRIAN STUMPF MOVED TO ADD CONSIDERATION OF THE FINAL PLAT OF AUTUMN RIDGE TO THE CONSENT AGENDA AS ITEM #5J. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Rick Wolfsteller added scheduling budget workshop meetings to the agenda and Bruce Thielen added a discussion of the State Auditor's Report concerning activities in the City of Brooklyn Park. 4. Citizens comments/petitions, requests and complaints. Chris Bonk, 9065 Graystone Avenue, spoke for a group of residents who were concerned about activities at one of the residences in their area. He cited underage drinking, traffic issues and an altercation that had taken place. They have called the Sheriff's Department out but the problems still persist. He came before the Council to make them aware of the problem and also to find out if the city ordinances addressed the issue of "nuisance houses." The Council indicated that this was a matter for the Sheriff's Department and directed the City Administrator to work with them on the issue. Bruce Thielen requested that a follow up report be given to the Council. 5. Consent agenda. A. Consideration of ratifying new hires for the Community Center and Public Works. Recommendation: Ratify the new hires as identified. LP Council Minutes - 8/12/02 B. Consideration of 3/12 beer license - River Fest Street Dance - Rescheduled for September 6, 2002. Recommendation: Approve the issuance of a one day license to the Lions Club for the re -scheduled River Fest Street Dance to be held on September 6, 2002. C. Consideration of preliminary and final plat for the Monticello Commerce Center 6" Addition. Applicant: Monticello Industrial Park, Inc. Recommendation: Approve the preliminary plat and final plat of the Monticello Commerce Center 6"' Addition contingent upon final review by the City Engineer. Res. No. 2002-49. D. Consideration of a request for a conditional use permit allowing installation of a - telecommunications roof mounted antenna. Applicant: Voicestream Minneapolis, Inc. Recommendation: Approve the conditional use permit allowing Voicestream Minneapolis, Inc. to install a telecommunications antenna on the roof of the building located at 121 West Broadway subject to the following conditions and based on the finding that it is in compliance with the objectives of the ordinance: 1. Location: Antennas shall be located on existing buildings and structures, if possible. Antennas located upon a public building or structure shall require the processing of an administrative permit issued in compliance with the procedures established by the City Council. Where an antenna support structure is used to support antennas, the installation of more than one antenna support structure per property shall require the approval of a conditional use permit. 2. Yards: Minimum setback requirements for antennas and antenna support structures shall in all zoning districts be the same as those permitted in accessory buildings, uses and equipment. 3. Height: Antennas shall not extend more than ten feet above the highest part of the building or structure to which they are attached and no more than ten feet above the highest roof elevation. 4. Security: Antennas support structures shall be constructed, fenced, or secured in such a manner as to prevent unauthorized climbing. No barbed wire, razor ribbon, or the like shall be used for this purpose. 5. Screening: Transmitting, receiving, and switching equipment shall be housed within an existing structure or screened from view from any public street. 6. Neiahbor4z Property Impact: Antenna and antenna support structures shall be designed and located such that in the event of structural failure, neither the antenna nor the support structure will fall on adjoining property. 7. Design: The use of guyed antenna support structures is prohibited. The design and installation of new antenna support structures must utilize an open framework or monopole configuration. Permanent platforms or structures 7 a P, Council Minutes - 8/12/02 accessory to the antennas support structure or antenna that increase visibility are prohibited. No part of the antenna support structure shall exceed 500 square feet in horizontal area. Color/Content: Antennas and antenna support structures shall be constructed of a corrosion resistant material or be painted a neutral color, and shall not be painted with scenes or contain letters or messages which qualify as a sign. 9. Illumination: Antennas and antenna support structures shall not be artificially illuminated unless required by law or by a governmental agency to protect public health and safety. 10. Compliance: Antennas, antenna support structures, electrical equipment and connections shall be designed, installed, and operated in conformance with all applicable federal, state, and local laws. Personal wireless communications service antennas, are only permitted as conditional uses and must meet the conditions in #1 through #10 above as well as the following additional conditions: Antenna support structures for personal wireless communication systems shall be allowed as conditional uses provided: A. Minimum spacing between personal wireless communications service antenna support structures shall be 1/4 mile. B. All new antenna support structures for personal wireless communications system antennas shall be a single ground mounted metal, concrete, or plastic composite (.i.e., fiberglass, graphite fiber, etc.) pole. Such antenna support structures shall not exceed seventy-five feet in height in agricultural open space (AO), Residential (R -1,R -2,R-3, R-4 and R -PUD), Performance Zone (PZR and PZM) , and Business (B-1, B-2, B-3, B-4) zoning districts, and shall not exceed one hundred sixty-five (165) feet in height in Industrial (I-1, I -IA and I-2) zoning districts. E. Consideration of a concept stage planned unit development to allow for expansion of a drive-in banking facility and coordinated commercial development within the Central Community District. Applicant: Wells Fargo Bank, N.A. Recommendation: Move to approve a development stage planned unit development contingent on the addition of sidewalk along 4"' Street based on the finding that the commercial PUD is consistent with the comprehensive plan and consistent with the character of the Walnut Street Corridor. F. Review and acceptance of feasibility report for reconstruction of parking lots. Recommendation: Accept the feasibility study for the Hi -Way Liquor parking lot and the Block 35 Public parking lot. Resolution No. 2002-53 G. Consideration of annual maintenance agreement with Wright County. Recommendation: Approve the 2002 Maintenance Agreement with Wright County with the reimbursement for this year of $11,628.57. 3 Council Minutes - 8/12/02 H. Consideration of adopting a resolution approving Monticello Heartland Express 2003 Budget and Transit Assistance application. Recommendation: Adopt the resolution approving the Heartland Express 2003 budget Plan and Transit Assistance application. Resolution #2002-50. I. Consideration of approving final payment to C.W. Houle, Inc. for Groveland 2" d Addition, Project No. 2001-05C. Recommendation: Authorize final payment in the amount of $119,282.83 to C.W. Houle for the improvements to the Groveland 2nd Addition, Project No. 2001-05C. J. Consideration of final plat approval for Autumn Ridge. Applicant: Shawn Weinand. Recommendation: Approve the final plat contingent upon determination by the Parks Commission and City Council as to park dedication requirements, completion of development agreement and review and approval of plans and specifications by the City Engineer. BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE ADDITION OF ITEM #5J. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration of items removed from the consent auenda for discussion. None. 7. Public hearing on proposed improvements to Downtown Parking Lot, Block 35. Mayor Belsaas asked if this item could be combined with item #12. John Simola, Public Works Director, provided background information on the item including previous improvements done to the parking lot. He stated that an overlay of the parking lot in its present condition would not serve any purpose and that the most practical action would be to reconstruct the parking lot. The City has budgeted money over the past two years to go towards this improvement. There was discussion of the EDA plan for this area which included improvements to alleyway, drainage improvements and making a location for a common dumpster. Since it did not seem likely that the EDA project would get done this year, it was decided to look at making improvements to the parking lot area only. One of the concerns that the EDA had was that if the parking lot and alleyway improvements were done this year at the same time as the CSAH 75 project was being done it would be totally disruptive to the businesses in the area. For that reason the EDA had decided to hold off on the parking lot/alleyway improvements until after CSAH 75 work was completed. Mike Nielsen, City Engineer, indicated that the reconstruction of the parking lot could be done before the CSAH 75 project takes the parking off that side of the road. He felt the contractor would be able to complete the work in about a week. It is proposed that the reconstruction work 0 W'. Council Minutes - 8/12/02 on the parking lot would extend up to the concrete alley. There was some discussion on what was all being proposed under the EDA plan and when work would commence. Roger Carlson asked if there were power lines in the islands and John Simola indicated there was. Clint Herbst asked about the drainage problems in the area. John Simola stated that the storm drainage pipe is fairly shallow and there is only one catch basin. If the storm sewer pipe was laid deeper it would remain open year round and the roof drains could be connected directly to the storm sewer which should help alleviate some of the drainage problems. Mayor Belsaas opened the public hearing. Karen Schneider, who owns two properties on the block stated that she was involved in the EDA meetings regarding the plan for improvements to parking lot/alleyway. She supported the EDA plan and felt it would be better to have all the improvements to the area done at one time. She also commented that changes in the snow plowing and snow removal in the area seemed to have eased some of problems with drainage. Pat Sawatzke, who owns a business on Block 52, questioned how the six block area was proposed to be assessed for the improvement. Since money had been budgeted by the City for this project he wanted to know what portion of the cost would be picked up by the City and what would be assessed. He wanted to know: 1) What is the amount of City participation; 2) What formula is the City planning to use in assessing the cost; and 3) What rights do the business owners have in the parking lot. He felt that if the business owners were going to be assessed there should be some assurances that the property would continue to be used for parking. John Simola stated that although they have been budgeting for the work the City is approximately $12,000 short of what is needed. Mayor Belsaas stated that the City is working on a policy for reconstruction projects but that has not been finalized. The formula used in earlier assessments for the parking lots improvements was based on a number of factors, including building size, number of employees and whether the business provided any additional parking. Clint Herbst suggested that maybe improvements on the parking lot on the south side should be assessed against the three blocks on that south and any improvements to the parking lot on the north side should be assessed against the three blocks on that side. Doug Schneider questioned why the City couldn't wait one more year with the parking lot reconstruction and do the work in conjunction with the EDA plan. He was also concerned that by doing this project the City would be cutting off most of the access to the downtown area. Clint Herbst asked if some patching work could be done now and then full improvements done at a later date. John Simola estimated at least $1,00042,000 of patching work would need to be done. Doug Schneider stated that the EDA had budgeted $60,000 for the alley improvements and he felt the timing of the proposed parking lot reconstruction was bad. Al Loch of Loch Jewelers, discussed the work that was done with the EDA on the plan for this area and he favored waiting with this project until the spring. Susie Wojchouski, Chamber of Commerce stated she was also in favor of delaying the project for 5 a� Council Minutes - 8/12/02 another year and do all the improvements at one time. Delaying the work another year would also relieve some parking pressure for the downtown area. No one else spoke on the proposed improvement and Mayor Belsaas then closed the public hearing. The consensus of the Council was that the project could be delayed but they also felt some of the issues relating to the drainage should be looked into further. Brian Stumpf agreed that the work should delayed and also stated the City needed to be sensitive to the business owners with the traffic situation on CSAH 75 as a result of the construction. BRUCE THIELEN MOVED TO DELAY THE PARKING LOT RECONSTRUCTION PROJECT FOR ONE YEAR AND GET ADDITIONAL INFORMATION ON THE OTHER PROPOSED IMPROVEMENTS SO THAT THE ENTIRE PROJECT COULD BE DONE NEXT SPRING. CLINT HERBST SECONDED THE MOTION. BRUCE THIELEN AMENDED HIS MOTION TO AUTHORIZE THAT THE PATCHING WORK ON THE PARKING LOT BE DONE. CLINT HERBST SECONDED THE AMENDED MOTION. MOTION CARRIED UNANIMOUSLY. 12. Consideration of quotes for work on parking lot improvements. Mike Nielsen reviewed the quotes received for the parking lot improvements. The quotes for the liquor store parking lot and the Block 35 parking lot were separate quotes. Quotes were obtained from Buffalo Bituminous and Hardrives, Inc. The engineer's estimate was $11,408 and the low quote from Buffalo Bituminous came in over $14,000. The Council discussed contacting the Towne Centre developer regarding their paving work and whether this is something that could be done in conjunction with the paving of 5 t/2 Street. Bruce Thielen noted that to proceed with the liquor store parking lot improvement did not require Council action since it was below $25,000. However, he did feel the City should contact Towne Centre and find out what they proposed to do as far as their paving work. Mike Nielsen noted that Buffalo Bituminous will be doing the CSAH 75 project as well as the angle parking project for Locust and Cedar Streets. At the present time the contractor is waiting for Xcel Energy to move the power poles at the old senior center site before they can start. 8. Public Hearin¢ - Consideration to approve a resolution adopting the modified, Redevelopment Plan for Central Monticello Redevelopment Proiect No. 1; and establishine within Central Monticello Redevelopment Prosect No. 1 TIF District No. 1-31 and adopting the related TIF plan therefor. 011ie Koropchak provided the background information for the creation of the TIF District for UMC (Ultra Machining Company). The life of the TIF District is 10 years and the TIF plan was submitted to the county and school district as required by state statutes. Mr. Don Tomann of UMC supplied some background information about their company and presented a preliminary sketch of their 501 aR Council Minutes - 8/12/02 proposed building. They are in the process of finalizing plans and hope to start construction in September. A ground breaking ceremony has tentatively been scheduled for September 20. 011ie Koropchak stated that the public hearing to approve the business subsidy for UMC was pulled from the agenda because the notice was not published in time. This hearing will be scheduled for the August 26"' meeting. Mayor Belsaas opened the public hearing. There was no one present who spoke for or against the proposed establishment of TIF District No. 1-31. Mayor Belsaas then closed the public hearing. BRIAN STUMPF MOVED TO APPROVE A RESOLUTION ADOPTING THE MODIFIED REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING WITHIN CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 TIF DISTRICT NO. 1-31 AND ADOPTING THE RELATED TIF PLAN THEREFOR. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Resolution No. 2002-51. 9. Public Hearing - Consideration to approve a resolution adopting the modified Redevelopment Plan for Central Monticello Redevelopment Pro iect No. 1, and establishing within Central Monticello Redevelopment Proiect No. I 'I'ff District No. 1-32 and adopting the related TIF Plan therefor. 011ie Koropchak provided the background information on the establishment of a TIF District for Production Stamping. The duration of the TIF District is eight years and the TIF plan was submitted to the county and school district as required by state statutes. 011ie Koropchak noted that the city will be getting the "but for findings" letter from the lender so any approval should be contingent upon that. Mayor Belsaas opened the public hearing on establishing TIF District No. 1-32. No one present spoke for or against the proposed district. Mayor Belsaas then closed the public hearing. BRIAN STUMPF MOVED TO APPROVE A RESOLUTION ADOPTING THE MODIFIED REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING WITHIN CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 TIF DISTRICT NO. 1-32 AND ADOPTING THE RELATED TIF PLAN THEREFOR CONTINGENT UPON RECEIPT OF THE `BUT FOR FINDINGS" LETTER. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Resolution No. 2002-52. 10. Removed from agenda. 7 0 Council Minutes - 8/12/02 11. Public Dearing - Consideration to approve business subsidv for Production Stamping, Inc. and to authorize entering into the Contract for Private Development among the IIIA, the Citv, and Wurm Partnership, L.L.P. 011ie Koropchak noted that a letter from the lender committing to the financing and all other statute requirements have been met. She added that any time assistance is given of $100,000 or more it requires a public hearing. The Contract for Private Development outlines the terms of the tax increment financing assistance that is being provided. Mayor Belsaas opened the public hearing. There was no one present who spoke for or against the proposal. Mayor Belsaas stated that the business subsidy to Production Stamping, Inc. is a $295,000 pay-as-you-go TIF note at an interest rate of 7.25% over eight years for land write down. Mayor Belsaas then closed the public hearing. CLINT HERBST MOVED TO APPROVE THE BUSINESS SUBSIDY FOR PRODUCTION STAMPING, INC. AND TO AUTHORIZE ENTERING INTO THE CONTRACT FOR PRIVATE DEVELOPMENT AMONG THE HRA, THE CITY, AND WURM PARTNERSHIP L.L.P. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 12. Consideration of quotes for work on parking lot improvements. Included with discussion of agenda item 47. 13. Consideration of review and acceptance of feasibility studv for the extension of Cedar Street, Proiect No. 2002-06C, authorizing ,preparation of plans and specifications and calling for a public hearing on the improvement proiect. Jeff O'Neill provided some background information on the proposal noting that a feasibility study had been done for Cedar Street from Chelsea Road to Dundas Road. This feasibility report looks at Cedar Street from Dundas Road to Kjellberg's mobile home park and looks at improvements to Dundas Road as well. The study was requested by Shawn Weinand who has a development proposed for that area. Roger Belsaas asked if it was wise to order plans and specifications without developments in the area being firmed up. Staff felt that perhaps setting the street alignment would be an impetus for developers to set their plans. Staff felt the Council could set the public hearing and then decide which segments of the roadway to proceed with. Jeff O'Neill stated that waiting with the plans and specifications until the public hearing might slow it down for the Weinand development which is ready to go now. Mike Nielsen from WSB & Associates reviewed the feasibility report with the Council. There are two segments of roadway being considered: 1) Dundas Road from Cedar Street to County Road E'1 Council Minutes - 8/12/02 117 and 2) Cedar Street from Dundas Road to Kjellberg's East Mobile Home Park. Mike Nielsen outlined the improvements proposed for each segment. Clint Herbst asked about the curvature of Cedar Street. The engineer discussed the alignment and noted that curve in the alignment was not as radical as it looked in the drawings. Clint Herbst also suggested that the City look at the street connecting to Kjellberg's park and to the Gold Nugget property. Mike Nielsen stated the City does have right of way north of School Boulevard but would need to acquire right of way on the Lundsten property. Clint Herbst felt that all the plans and specifications for the project parameters should be completed as it would give developers information as to where the road is going to be and how it will impact their property. The Council discussed the two alternatives listed in the staff report requiring the developers to pay the full cost of the plans and specifications or a pro -rated share of the cost. The City would fund the cost of the plans and specifications and be reimbursed by the developers when the property develops. Clint Herbst felt the property in this area may develop rather quickly. The Council discussed the alignment of Cedar Street in the area of Kjellberg's and whether the roadway couldn't be better aligned with the road entering the mobile home park. Shawn Weinand stated that there is a development plan for that area therefor any adjustment to the alignment would either have to be made on the Kj ellberg side or it would require an amendment to the plat. Shaw Weinand stated the original thinking on the alignment of the road was that one needed 400 feet of depth for a commercial building lot. By holding the road in from TH 25 it would create commercial property along TH 25. CLINT HERBST MOVED TO ADOPT A RESOLUTION ACCEPTING THE FEASIBILITY STUDY, CALLING FOR A PUBLIC HEARING AND AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS WITH DEVELOPERS PAYING THE PRO -RATED SHARE OF THE PLANS AND SPECIFICATIONS AND THE CITY FUNDING THE COST OF PLANS AND SPECIFICATIONS FOR THE BALANCE. THE DEVELOPER'S UP FRONT SHARE TO BE REIMBURSED AT SUCH TIME THAT THE PROJECT IS ORDERED AND THEN INCLUDED IN THE ASSESSMENT ROLL FOR THE PROJECT. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 15. Review of six month Liquor Store financial report. This item was moved up on the agenda. Joe Hartman, Liquor Store Manager, was present and reviewed with the Council the financial condition of the liquor store through the first six months of the year. He noted that some of the increases in expenditures, particularly for advertising and labor costs, were a result of the recent expansion of the liquor store. He anticipates that these expenditures would not be recurring ones. He reported on the expansion of the liquor store, its impact on sales and comments from residents and others concerning the facility. He also indicated that the City would be looking at an expenditure in the near future to replace the old cooler shelves. The Council accepted the report on the liquor store operations. 9 Council Minutes - 8/12/02 16. Discussion of feasibility of converting Broadwav overhead power to underground. This item was moved up on the agenda. Rick Wolfsteller indicated that there had been discussion in the past on removing the overhead lines along Broadway and replacing them with underground lines. With the proposed construction of CSAH 75, the Council was asked to look at this and determine if there was interest in doing this work Darrin Lahr from Xcel Energy was present and discussed the conversion from overhead wiring to underground wiring. In looking at the conversion, they considered the area from Chestnut Street on the west to Washington Street on the east. There are approximately 75 poles in that stretch and approximately 30 crossings of the street (Broadway). He added that not all of these poles and crossings are Xcel's. Some belong to the cable and telephone companies and these lines would need to be removed as well. The preliminary cost estimate of approximately $780,000 would not cover any of the cost of removing the cable and telephone lines. Xcel looked at removing all of the feeder lines running parallel to the road but 6-9 feeder crossings which run perpendicular to the road would remain. He also added that in converting from overhead to underground, customers would have to re -wire their meter sockets. The sockets would have to be rewired in order to accept the underground service. This work would not be done by Xcel but rather by the customer's electrician and would run approximately $2004800 per residence. Darrin Lahr indicated that there is about 65 customers who would be affected by this. Bruce Thielen suggested that City could get one contractor to do all the meter socket change outs and thus save the customers a little in cost. Underground customers have a $2/per month fee on their bill which overhead customers don't have since underground is more expensive to maintain. Darrin Lahr stated that not only is underground more expensive to construct but it is also about three times as costly to maintain. He noted that the estimated $780,000 did not include the cost of any easements. Along CSAR 75 the right of way is pretty much used up so easements would be needed but he could not provide an estimate of the cost for the easements. Darrin Lahr discussed two options for financing the cost of the conversion. The first option discussed was a franchise fee. The City would notify Xcel Energy to collect a set percentage from all customers in the City and these funds would be used to pay for the project. He estimated with a I% franchise fee $60,000 a year would be generated. This would work out to about $1.30/per customer per month. Under this option the City would finance the project and then pay itself back with the funds generated by the franchise fee. Clint Herbst asked about placing conduit in. Darrin Lahr stated that the conversion work from overhead to underground does not have to be done in conjunction with the CSAH 75 construction project and Xcel would prefer not to be in a position where their work could delay the street contractor. He indicated that by using directional boring the lines could be installed underground without disrupting the road surface. Darrin Lahr stated that Xcel does not place their lines under the sidewalk or road surface because they would have no access to it but if there was adequate 10 Council Minutes - 8/12/02 room they could place it between the curb and sidewalk. Clint Herbst suggested the City get prices from the cable company for moving their lines and also get input from residents as to their interest in having the power lines underground.. John Simola stated that at the reconstruction meeting there was discussion by the cable and telephone company representatives about placing conduits. Contractor indicated he was amenable to placing conduit. The council determined that the following additional research that needs to be done: 1) The cost to have cable and telephone lines moved; 2) The residents willingness to covert their wiring system to accept the underground wiring and to provide easements for the underground wiring; 3) The cost for an electrical contractor to do all the meter socket changeouts and 4) The cost to have the contractor place the conduits . The second option mentioned by Darrin Lahr is for the City to request a facility surcharge. The City would order Xcel to bury their lines at which point Xcel would go before the utilities commission to request a surcharge be placed on all utility customers in the city until the cost of the underground conversion is paid back. The maximum is $4.50/per customer per month for 60 months. He estimated that based on the cost of the conversion this surcharge would run approximately 4 years for Monticello customers. Bruce Thielen felt the acceptability of this to the residents depends on how it is presented. John Simola expressed his concern about directional boring citing a couple of examples where the utility company had bored through storm sewer pipes in the process of placing their lines. The staff was directed to work on getting the additional information. 14. Consideration of resolution requesting the Commissioner of Transportation to schedule a public hearinLy for the proposed at grade railroad crossing for the extension of 7r" Street to Countv State Aid Hii!hwav 75. Mike Nielsen explained the request for a railroad crossing for the proposed extension of 7"' Street. Roger Belsaas questioned when the new interchange comes in if the crossing would still be needed. Mike Nielsen stated that it was possible that it wouldn't but that determination may be a while in coming and requesting the hearing was a step that would allow the City to keep its options open. Mike Nielsen stated that it is railroad policy not to allow any more crossings regardless of whether the railroad tracks are used or not. Mike Nielsen reviewed the alternatives available and since at this point they don't have specific and detailed information about the I-94 interchange it was recommended that the City pass the resolution requesting the Commissioner of Transportation to schedule a public hearing for a proposed at grade railroad crossing to allow for the extension of 7"' Street to CSAH 75. Clint Herbst felt this might be expensive because it would require stop lights at more locations. John Simola noted that a lot more study is needed at CR 18 as far as placement of stop lights. There was additional discussion on the crossing location and how it would impact the alignment of 7"' Street. It was noted that if the City's position on this changes in the future the appeals process could be stopped. BRUCE THIELEN MOVED TO PASS THE RESOLUTION REQUESTING THE COMMISSIONER OF TRANSPORTATION TO SCHEDULE A PUBLIC HEARING FOR THE PROPOSED AT GRADE RAILROAD CROSSING FOR THE EXTENSION OF 7TH Council Minutes - 8/12/02 STREET TO COUNTY STATE AID HIGHWAY 75. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Resolution No. 2002-48. Other Items: Budget Workshop - With September 13)"' being the deadline for submitting the preliminary 2003 budget and tax levy to the County, the Council tentatively set the budget meeting workshops for 5 p.m. on August 26, 2002 and September 9, 2002. Rick Wolfsteller noted that this year the City is under levy limits but he has not yet gotten the City's levy limit amounts from the Department of Revenue. State Auditor's Report - Bruce Thielen noted that with the State Auditor's report on the activities at the City of Brooklyn Park it would be an appropriate time for the City to review the Auditor's report to make sure that the none of the practices questioned in the report are in use here. 17. Approve pavment of bills for August. BRIAN STUMPF MOVED TO APPROVE PAYMENT OF BILLS FOR AUGUST. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 18. Adiourn. ROGER CARLSON MOVED TO ADJOURN AT 8:50 P.M. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary 12 MINUTlES SPECIAL MEETING - MONTICIELI-0 CITY COUNCIL Monday, August 12,2002 - 5 p.m. Members Present: Roger Belsaas, Roger Carlson, Clint Herbst and Brian Stumpf. Bruce Thielen arrived at 5:30 p.m. Members Absent: None 1. Call to Order: Mayor Belsaas called the meeting to order at 5 p.m. The purpose of the meeting was to conduct interviews with three firms for providing legal services. The procedure to be used allows for approximately 25-30 minutes for introductions and to have the firms respond to a specific set of questions. 2. Interviews: A. Flaherty & Hood - Tim Flaherty, Chris Hood and Steve Nyhus were present representing the firm. Chris Hood would be the primary attorney for the City if their firm was selected. B. Campbell Knutson Professional Association - Matt Brokl and Tom Scott were present representing the firm. Matt Brokl, Joel Jamnik and Andrea McDowll Poehler would serve as the City's attorneys if their firm was selected. C. Kennedy & Graven - Dan Greensweig and Paula Callies were present representing their firm. If the firm of Kennedy and Graven was selected, Dan Greensweig would serve as lead attorney and Paula Callies would serve as assistant city attorney. Upon completion of the interviews, the Council briefly discussed the interview process. The Council felt the first two firms interviewed had more experience in the area of annexation which is an issue the City is involved with. They directed the City Administrator to contact some of the municipal clients listed by the firms of Flaherty and Hood and Campbell Knutson. 3. Adiourn. The special meeting was adjourned at 6:25 p.m. Recording Secretary City Council Agenda - 8/26/02 5A. Consideration to review Greater Monticello Enterprise Fund (GMEF) Loan No. 022 for compliance with the EDA-GMEF Business Subsidy Criteria.. UMC, Applicant. (O.K.) A. Reference and Back round: The EDA requests the City Council review GMEF Loan No. 022 for compliance with the EDA-GMEF Business Subsidy Criteria. The GMEF Guidelines state: "The EDA shall have authority to approve or deny loans; however, within 21 days of EDA approval, the City Council may reverse a decision by the EDA to approve a loan if it is determined by Council that such loan was issued in violation of the GMEF Guidelines." On August 20, 2002, the EDA approved GMEF Loan No. 022 for Ultra Machining Company subject to lender commitment, credit worthiness letter, and Council ratification of EDA action. For your review, enclosed as supporting data is the outline used by the EDA for determination of GMEF public purpose and policy compliance. The real property acquisition and development loan was approved for $200,000 at a 2.75% fixed interest rate. Amortization consistent with lender, not to exceed 30 years. Balloon payment in 5 years. Loan fee set at $200 and GMEF legal fees the responsibility of the applicant. The GMEF loan will share a second -position with the State loan or take a third position on the real estate loan behind the State loan and the lender, Twin City Federal. Collateral, guarantees, and other condition requirements to be determined and prepared by the GMEF attorney. The real estate loan will assist in bringing 120 new full- time jobs to Monticello within two years. At least 90% of the new jobs to pay a wage of higher than $9.00 per hour, exclusive of benefits, for individuals over the age of 20 during the term of the assistance. Annual written reports are required until termination date. Failure to meet the job and wage level goals require partial or full repayment of the assistance with interest. The EDA held a public hearing on August 20, 2002, relative to the approved $200,000 business subsidy to UMC. The notice appeared in the local newspaper on August 15, 2002, for compliance with Minnesota Statutes 2000, 116J.994. After review of the EDA outline for GMEF public purpose and policy compliance, the EDA requests the City Council consider the following actions. City Council Agenda - 8/26/02 B. Alternative Actions: 1. A motion stating that City Council has determined the EDA approval of GMEF Loan No. 022 for Ultra Machining Company was approved without violation of the EDA-GMEF Business Subsidy Criteria; therefore, Council supports the decision by the EDA for loan approval. 2. A motion stating that City Council has determined the EDA approval of GMEF Loan No. 022 for UMC was issued in violation of the GMEF Guidelines; therefore, the Council reverses the decision by the EDA for loan approval. C. Recommendation: The City Administrator recommends Alternative No. 1. The loan approval complies with the EDA-GMEF Criteria and the City's objective and goals. D. Supporting Data: GMEF criteria used by the EDA, preliminary application, and GMEF approval form. 2 EDA Agenda - 8/20/02 4. Consideration to review for discussion the preliminary GM EF application for UMC. A. Reference and Background: GMEF Loan Application: See Attachment A. Request is for a $200,000 real property acquisition and development loan. Project Summary: Ultra Machining Company (UMC), is ISO certified and specializes in medical, aviation, and commercial jobs. 60% medical surgical instruments, operating and emergency room equipment, laboratory and hospital equipment. 20% aviation fuel delivery system components, engine components, and other aircraft parts. 20% industrial fuel cells, radiator plates, fluid control equipment, construction industry equipment. UMC was established in 1968 and currently resides in Corcoran, MN. They plan to acquire 10 acres of industrial zoned land in the Monticello Commerce Center, located along East Chelsea Road to the west of Twin City Die Castings. The company's initial plans were to construct a 60.000 sq ft office/manufacturing facility. According to Ed Sorgatz. Olson General Contractors. the preliminary building elevations show a 72,000 sq ft facility. See Attachment B. Projected job and wage goals. See Attachment C. Letter of intent to finance the project from Kurt Schrupp, Twin City Federal. The City is applying for a Minnesota Small Cities Economic Development Grant in the amount of $290,000 to assist with the acquisition and construction financing. A Central Minnesota Initiative Fund Loan in the amount of $250,000 will assist in financing of the machinery and equipment. The EDA loan of $200,000 was part of the proposal submitted to the company from the City of Monticello in April 2002. The EDA should review the preliminary application for compliance with the EDA-GMEF Business Subsidy Criteria. ESTIMATED PROJECT COSTS: Land acquisition $ 400.000 Construction $2,600.000 Site Improvements $ 395.000 Machinery c5c'', Equipment S1.000.000 TOTAL $4.395.000 �;P\ EDA Agenda - 8/20/02 GREATER MONTICELLO ENTERPRISE FUND GUIDELINES PUBLIC PURPOSE CRITERIA: Must comply with four or more of the criteria listed below, criteria 91 being mandatory. Job Goal: 120 full-time jobs to the City of Monticello within two years of the benefit date. Wage Goal: At least 90% of the new jobs must pay a wage of the higher of $9.00 per hour, or at least 160% of the federal minimum wage, exclusive of benefits, for individuals over the age of 20 during the term of the assistance. See Attachment B. Annual reports are required until termination date. Failure to meet job and wage goals require partial or frill payment of the assistance plus interest. 2. Increases the community tax base: $2,600,000 EMV. $51,250 Tax Capacity. Annual Property Taxes, $74,752. 3. Factors: To assist a new manufacturing business to expand their operations. Other factors for consideration but no limited to: Nature of business (manufacturing), no availability of service and product currently, potential adverse environmental effect (none), and compatibility to the comprehensive plan and zoning policy (yes, acceptable in I-1 A zone.) 4. Used as a secondary source to supplement conventional financing. The GMEF and SCEDG are secondary sources of financing for the real estate. CMIF for M&E. 5. Used as gap financing: Used to encouraged growth and job creation within Monticello. 6. Used to assist other funds: Used to obtain State and Regional funds. GREATER MONTICELLO ENTERPRISE FUND POLICIES BUSINESS ELIGIBILITY Industrial business: Yes. 5Q II IV. EDA Agenda - 8/20/02 Located within city limits: Yes, Zoned I-1 A. Credit worthy existing business: Kurt Schrupp, TCF (forthcoming) $10.000 loan per each job created. $10.000 X 124 = $1,240,000. Or $5.000 per every $20,000 increase in property market valuation, whichever is higher. $2,600,000 divided by $20,000 = $130 X $5,000 = $60,000. Criteria: $1,240,000 FINANCING METHOD: Companion Direct Loan: All such loans may be subordinated to the primary lender if requested by the primary lender. The GMEF is leveraged and the lower interest rate of the GMEF lowers the effective interest rate on the entire project. Criteria: The GMEF takes a shared second position or third position on the real estate loan. USES OF PROCEEDS: Real property acquisition and development. TERMS AND CONDITIONS: Loan Size: Maximum not to exceed 50% of the remaining revolving loan fund balance. Cash balance as of August 19, 2002, $73,782.40. Request: $200,000. Criteria: $200,000. Remaining balance thereafter, $5-35.782.40. $200,000 was the amount within the proposal from the City of Monticello. Leveraging: M1111111Urn 60% private/public non-GMEF Maximum 30% public (GMEF) M1111mUrn 10% equity of EDA loan Proposed Lender TIF LIEF SCEDG Equity $1.838.000 (54.1%) $ 39.000*(11.6%) $ 200.000 (5.89%) $ 290.000 (8.54%) $ 672.000 (19.79%) EDA Agenda - 8/20/02 TOTAL $3,395,000 (99.92%) Company plans to sell TIF pay -as -you -0o note. Loan Term: Real estate property maximum of 5 -year maturity amortized up to 30 years. Balloon payment at 5 years. Approved: Amortization consistent with lender, not to exceed 30 years. Balloon payment in year 5. Interest Rate: Fixed rate not less than 2% below Minneapolis prime rate. Prime rate per National Bank of Minneapolis on date of EDA loan approval. Prime rate August 20, 2002. 4.75% . Approved: 2.75% fixed rate. Loan Fee: Minimum fee of $200 but not to exceed 1.5% of the total loan project. Paid by applicant to the EDA within five working days after City Council approval of GMEF loan. Non-refundable. Loan fee may be incorporated into project costs. EDA retains the right to reduce or waive loan fee or portion of loan fee. Options: Minimum fee of S200 or not to exceed 1.5% of GMEF loan (S3,000), due and payable not later than September 3, 2002. Approved: Minimum fee of S200, due and payable not later than September 3, 2002. Prepayment Policy: No penalty for prepayment. Deferral of Payments: 1. Approval of the EDA membership by majority vote. 2. Extend the balloon if unable to refinance. verification letter fI'0111 two 1e11d1I1g institutions subject to Board approval. Late Payment Policy: Failure to pay principal or interest when due may result in the loan being immediately called. Interest limitation on �(yuaranteed loans: Not applicable. Assumability of loan: None. 4 EDA Agenda - 8/20/02 Business equity requirements: Subject to type of loan; Board of Directors will determine case by case, analysis under normal lending guidelines. Collateral: Personal and/or corporate guarantees (requires unlimited personal guarantees) as per the GMEF attorney. Non-performance: An approved GMEF loan shall be null and void if fiends are not drawn upon or disbursed within 180 days from date of EDA approval. August 20, 2002 EDA approval - loan becomes null and void February 20, 2003. Non-performance extension: Not applicable. Le��al Fees: Responsibility of the GMEF applicant. B. Recommendation: Recommendation is to review this information prior to the EDA meeting for discussion and potential questions. Consideration to approve or deny GMEF Loan No. 022 is the next agenda item. C. SuDDortina Data: Preliminary GMEF application, job and wage -level goals. TCF letter, and preliminary elevation sketches. 5 RXI AUG -16-2002 01:49PM FROM -FIRST NAT. BANK HASSAN +763-428-4601 T-824 P.002/002 F-551 GREATER MONTICELJLO ENTERPRISE 250 EAST BROADWAY MONTICEL LO, MINNESOTA PRELIMINARY APPLICATION FOR LOAN APPLICANT: ULTRA MACHINING CORPORATION FIRM OR TRADE NAME: - _._...._ .. - BUSINESS ADDRESS: 22510 IHighway 55. CITY/STATE: Hamel CODE: 55340 TELEPHONE: (BUS.) (HOME) DATE ESTA 3L SHED: EMPLOYER LD.## 41-0970352 SOLE PROPRIETOR X CORPORATION PARTNERSHIP MANAGEMENT NAME TITLE OWNERSHIP % See Attached Organizational & Ownership Charts PROJECT LOCATION: Monticello, MN X NEW LOCATION EXISTING BUSINESS TOTAL PROJECT COST ESTIMATE: S 3,395, 000 w/o Equipment PROPOSED USES:(000's) LAND S 795 EXISTING BUILDING CONSTRUCTION 2600 MACHINERY CAPITAL WORKING CAPITAL OTHER TOTAL USES: S REOUEST: PROPOSED BEGINNING DATE: September 2002 ESTrAATED COMPLETION DATE: April 2003 TITLE TO PROJECT ASSETS TO BE HELD BY: PARTICIPATING LENDER: TCF (Name) Kurt Schrupp (Contact Person) AMOUNT OF LOAN S 200. MATURITY & TERMS REQUESTED 5/20: APPLICANT'S EQUITY n L LOAN PURPOSE Comm - Real Estate OPERATING ENTITY X ALTER EGO Minneapolis, MN (Address) h12 1 661-8317 (Telephone #) PRESENT # OF F.T. EMPLOYEES: 90 PROJECTED # OF F.T. EMPLOYEES(within 2 years) 30 PROJECTED AVERAGE WAGE PER HOUR: ADDITIONAL PROJECT INFOgM�q,,1'YON: Company will be purchasing or leasing approximately $1;,000,000 of CNC Metal FabricaLluli i:qulyuu�ui. APPLICANT SIGNATURE: DATE SIGNED: APPROVAL OF GREATER MONTICELLO ENTERPRISE FUNDS BY ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA Preliminary Loan Application Approval. Loan terms negotiated and agreed upon between the developer, the lending institution, and the EDA Executive Director. Formai Loan Application and Financial Statement analyzed by the lending institution, BDS, Inc. or City staff. Building and Site Plan Preliminary and/or Final Review. Building Permit approval or construction commitment. Loan documents reviewed and/or prepared by the City Attorney. YES YES LENNY KIRSCHT, FIRST NATIONAL BANK OF ELK. K1VEK FORTUCCUING FORTHCOMING ��r-�T- ONEY DA—GpfiE'?�TcjTFT ECONOMIC DEVELOPMENT AUTHORITY APPROVAL OR DISAPPROVAL: LOAN NUMBER: GMEF LOAN NO. 022 LOAN APPROVED: YES BORROWER: ULTRA MACHINING COMPANY (UMC) ADDRESS:22510 HIGHWAY 55, HAMEL, MN 55340 DISAPPROVED: LOAN AMOUNT: TWO HUNDRED THOUSAND DOLLARS AND NO .CENTS ($200, 000.00) REAL PROPERTY ACQUIS RATE: 2.75% FIXED INTEREST RATE DATE: AUGUST 20, 2002 ITION AND DEVELOPMENT TERMS TWENTY YEAR AMORTIZATION WITH BALLOON PAYMENT IN 5 YEARS LUAN FEE $20e AND PAYABLE NOT LATER THAN EEPTE14EER 3, 2092. "OTHER (SECOND PAGE) A motion was made b EDA Commissioner DARRIN LAHR to (grove -� y Greater Monticello Enterprise Funds In the amount of $200,000.00 TWO HUN151�ED THOUSA ) DOLLARS AND NO CENTS dollars and cents to developer TTT.TRA MAC T4TNTNC,' C.nMPANY (TTM('.) this 20th day of AUGUST , 2002 Seconded by EDA Commissioner RON HOGLUND YEAS: DARRIN LAHR BARB SCHWIENTEKNAYS: NONE RON HOGLUND ROGER CARLSON BILL DEMEULES KEN MAUS ABSENT: CLINT HERBST GMEF disbursed by Check No. EDA Treasurer CITY COUNCIL MAY REVERSE AN EDA LOAN DECISION WITHIN TWENTY-ONE DAYS OF EDA APPROVAL. TO CITY COUNCIL, TO COUNCIL AUGUST 26, 2.002. SA GMEF Approval Page 2 ACCEPTANCE OF TERMS I (We) hereby accept the terms stated above as approved by the Economic Development Authority in and for the City of Monticello. DATED: * SEE ATTACHMENT FOR JOB CREATION. SEE ATTACHEMNT FOR WAGE GOALS SHARED SECOND POSITION WITH STATE FUND MINNESOTA INVESTMENT FUND GMEF LEGAL FEES RESPONSIBILITY OF APPLICANT. COLLATERAL: PERSONAL/CORPORATE GUARANTEES (REQUIRES UNLIMITED PERSONAL GUARANTEES) OR PER THE EDA ATTORNEY. LOAN BECOMES NULL AND VOID FEBRUARY 20, 2003, IF FUNDS HAVE NOT BEEN DISBURSED. GMEF DOLLARS DISBURSED FROM TCDC AND GMEF. Mi City Council Agenda - 08/26/02 5B. Consideration of acceptine petition, ordering feasibilitv studv, acceptinLy feasibility studv, orderinLy plans and specifications, acceptinLy quotes and orderiniz chanLre order to CSAH 75 proiect allowing_ develop_ ment of utility connections at Maple Street. (JO) REFERENCE AND BACKGROUND Some months ago Rick Anderson obtained approval for development of two twin homes at the corner of Maple Street and CSAH 75. After reviewing the utility system serving the site, it has been determined that the best way to serve the site is via a new sewer line extension along Maple Street. Also needed is the extension of two sanitary services and two water services. The timing for construction is timed well in terms of the CSAH 75 project. The estimated cost to complete this is not known at the moment, however, the developer has indicated support for the extension of the utilities as proposed and is expected to sign a waiver of hearing on the proposed assessment. Obviously if the waiver_ of assessment hearing is not signed, staff will not order the work. ALTERNATIVE ACTIONS 1. Motion to accept petition, ordering feasibility study, accepting feasibility study, order plans and specifications and accept change order to CSAH 75 project allowing Maple Street service connection to the adjoining property owned by Rick Anderson. Motion contingent on Anderson signing a waiver of assessment hearing noting that he agrees to pay the full cost of the extension. 2. Motion to deny approval of the requests noted. STAFF RECOMMENDATION Staff recommends approval as noted under alternative 1. SUPPORTING DATA None Council Agenda - 8/26/02 5C. Consideration of authorizing purchase of replacement cooler shelving for liquor store. (RW) A. REFERENCE AND BACKGROUND: Liquor Store Manager, Joe Hartman, noted at the last Council meeting that some of the older shelving in the cooler had begun to buckle and was dangerously close to collapsing. Since most of the shelving is tied together, much of the shelving has now twisted to the point where it may become dangerous. Three quotations were obtained from supplies that ranged in price from $18,272 to $19,785 for complete removal and installation of new shelving. Although this item was not budgeted as part of the expansion project, it is recommended that the liquor store manager be authorized to have the new shelving installed by Britz Store Equipment, Inc. in the amount of $18,271.68. The original shelving is now over 25 years old, and with the replacement, all of the cooler doors and shelving will be new. B. ALTERNATIVE ACTIONS: 1. Authorize the purchase of replacement cooler shelving in the amount of $18,271.68 from Britz Store Equipment. C. SUPPORTING DATA: Copy of three quotes. FROM : BRITZ STORE EQUIPMENT FAX NO. 3204602528 Aug. 19 2002 10:42AM P1 • Store Equipment, Inc. Hwy. 25 North - Buckman, Minnesota 56317 - Ph. (320) 45$-6294 - FAX (320) 468-252$ Name: Hi -Way Liquors Address; 545 Highway 25 City: Monticello, Mate: MN Zip: 55362 - QTY: " New: I Used:I Description: Date; 8119/2002 Phone: 7631295-5222 Fisc: 771295-8891 Attention: Joe Hartman r Amount: 21 X B -Q -F Conveyor Shelving for Behind 2811 Anthony Doors, $15,795 -006, -Level, 6' Deep, W/Black PTM Cr X B -O --F Conveyor Shelving for Behind 28" Anthony Doors, 2Q $14,745.00 6 -Level, B' Deep, W/Black PTM 1 X Anthony Rall -A -Way Beverage Unit, 5 Tier High, Gravity Flow Shelves 30-112" W x 24" D x 80" H $775-00 x 36,. $835.00 x4241 $875.00 30--112 W x 27" D x 80" H, Roll -A -Way Beverage Unit W/Flat Shelves $745.00 Delivery and Shelving Set Up $500.00 Prices Do Not Include Sales Tax or Freight c10 n,► o U, �pi W�� f Sed S-6 D � � 1 � aSfiLv% U/j o�o V/A., z o d —7--b 7-A L N�� SvpermarKet & Convenience Store EgUipmaAt 08/18/02 FRI 09:38 FAX 812 721 1838 AA EQUIPMENT CO. AA equipment c 2212 II4INNEHAHA AVENUE MINNEAPOLIS, tv' MNESOTA 55 104 TELEPHONE (612) 721-3383 FACSIMILE (612) 721-1638 Mr. Joe I4—nminam. Hi Way Liquor Y.O. Box 1147 Monticello, MN. 55362 Dear Joe, We are pleased to quote you ua the following. QUOTATION 1 Only set of B.OX. 9favitY flow shelving, 6' p for behind 21 Anthony flangless 28 3143' wide doors. INCLUDES: E -Z must uprights. Two levels type 02 shelves. Two levels type 10 shelves. One level qpe 09 shelves. One Level type 08 shelves. AS LISTED: 15,511.00 AA EQUIPMENT COMPANY UNLOADING OF S]ELVING, SETTING UP OF THE UPRIGHTS, AND INSTALLING TWO SHELVES PER SECTION: $ Sto.00 SALES TAX EXTRA. Sincerely, AA EQUIPME MPANY, Ne.�� 7V- kit, Mike Zztznian MZ--st 08/21/02 WED 13:33 FAX 320 251 9390 ST CLOUD REFRIGERATION . "117s'�' ST. CLOUD INC. providing �upetiat Service Since 1968 August 21, 2002 Hi -Way Liquors Hwy 25 South Monticello, MN 55362 Attention. Joe/kick/Fred Regarding: 8 -O -F Conveyor Shelving 1. Behind 2128" Anthony Doors Flangless Q. 6 levels (6' deep) b. Same as previous ordered C. See drawings d. Approx. 4-5 weeks delivery Z002 • ... � �. I 1.ti1•^•'f'��y�11p1�.�i(iyk�A ��^���1'��T!:T��a�ii�it*.. 604 LINCOLN AVENUE NORTHEAST ST CLOUD, MINNESOTA 56304 TELEPHONE: (320) 251-6861 FAX: (320) 251-9360 02.HiWayLiquar ..................... $15,500.00 Estimated Sales Tax .......... . .. . ............................. $1,085.00 Estimated Freight ............................... . . , .. , ........ $1,200.00 Installation of New Shelving ....... ...................... , , . , , , $1,000.00 - Up rites only, shelves by others - Existing shelving removal by others Estimated Grand Total .......................................... $18,785.00 Option: 1. For removal of existing shelving, Add: $1,000.00 - Includes disposal Charges Sincerely, ST, CLOUD REFRIGERATION Matt Skudlarek MS/bg SALES & SERVICE: REFRIGERATION/AIR CON DITIONING/HEATING/SHEET METAL/STORE FIXTURES Council Agenda - 08/26/2002 5D. Consideration of extending work hours beyond the quitting time of 7:00 v.m. for buffalo Bituminous on CSAR 75 Rehabilitation Project #2000-16C. (J.S.) A. REFERENCE AND BACKGROUND: The general contractor Buffalo Bituminous and their subcontractors are making a great effort to stay on schedule with the CSAR 75 Rehabilitation Project. Quam Construction Company out of Willmar, Minnesota is doing the utility work. There have been a few occasions where they have had to work beyond the 7 a.m. to 7 p.m. Monday through Saturday work period set out by city policy. These instances were due to emergency conditions to get sections completed or to get businesses or residents back on water before the night ended. The contractor has asked to extend the work period from 7 p.m. to 9 p.m. Monday through Saturday. It is possible that there could be again emergencies that may cause the contractor to work beyond 9 p.m., but under almost all instances he would shut down equipment at 9 p.m. B. ALTERNATIVE ACTIONS: 1. The first alternative is to authorize the contractor Buffalo Bituminous and their subcontractors to work between the hours of 7 a.m. to 9 p.m. Monday through Saturday with the understanding that emergencies may cause the work period to go beyond 9 p.m. This applies to the CSAH 75 Project only. 2. The second alternative would be not to grant an extension of working time. C. STAFF RECOMMENDATION: It is the recominendation of the City Administrator, Public Works Director and City Engineer that the City Council allow the contractor to work from 7 a.m. to 9 p.m. Monday through Saturday as outlined in alternative # 1. D. SUPPORTING DATA: None. City Council Agenda - 8/26/02 7. Public Hearing - Consideration to approve the business subsidy for UMC and to authorize entering into a Contract for Private Development amore! the HRA, the City, and Terrace & Mary Tomann Family Limited Partnership. (O.K.) A. Reference and backcround: PUBLIC HEARING The business subsidy notice appeared in the local newspaper August 22, 2002, for compliance of the Minnesota Statutes 2000, 116J.994: Before granting a business subsidy that exceeds $100,000 for a local government grantor, the grantor must provide public notice and a hearing on the subsidy. Please open the public hearing for comments. CONTRACT INCLUDING THE BUSINESS SUBSIDY AGREEMENT The Contract for Private Development outlines the terms and conditions of TIF assistance to the developer, Terrace & Mary Tomann Family Limited Partnership dba Ultra Machining Company (UMC). The Contract was drafted by Dan Greensweig, Kennedy & Graven, and a copy provided to the developer. Generally, the Contract is executed or agreed upon between the parties, prior to the City Council approving the establishment of the TIF District. The HRA agreed to reimburse the developer up to $395,000 of the $653,400 land cost. Interest rate of 7.25%. The City agreed to waive or forgive the trunk fees. As part of the negotiations, the City Administrator agreed to calculate the trunk fees based on 7 acres, as the company's need was to purchase 7 acres and not 10 acres as required by the land owner to purchase. The HRA attorney elected to draft the Contract using 10 acres or $94,600 for consistency with City Trunk Fee Policy rather than the negotiated 7 -acre calculation. The developer agreed to construct a 60,000 sq ft office/ manufacturing facility on the raw land along East Chelsea Road. According to Ed Sorgatz, Olson General Contractors, the enclosed preliminary building elevations show the building at 72,000 sq ft. The Business Subsidy Agreement, Section 3. 5, includes the general terms, job and wage goals, remedies, reports, and audits for the purpose of the Business Subsidy Act. The construction commencement date is September 30, 2002, with completion by July 1, 2003. The developer must provide a copy of the purchase agreement, evidence of short and long term financing, evidence for "but for" test, and proof of insurances prior to issuance of the building permit. City Council Agenda - 8/26/02 CLOSING PUBLIC HEARING Prior to closing the public hearing, please publicly identify and summary the terms of the business subsidy to UMC by the Authority: $395,000 pay-as-you-go TIF note at an interest rate of 7.25% over 8 years for land write-down. B. Alternative Action: A motion to approve the business subsidy for UMC and to authorize entering into the Contract for Private Development among the HRA, the City, and Terrace & Mary Tomann Family Limited Partnership. 2. A motion to deny approval of the business subsidy for UMC and to deny authorization to enter into the Contract ............................. 3. A motion to table any action. C. Recommendation: Recommendation is Alternative No. 1. D. Supporting Data. Excerpts of the Contract including the Business Subsidy Agreement. 2 ARTWLIE 1H Acquisition of Property; Financial Assistance Section 3.1. Status of the Development Property. As of the date of this Agreement, the Developer has entered into a purchase agreement with a third party for the Development Property. The Authority shall have no obligation to purchase the Development Property or any portion thereof. Section 3.2. Soil Conditions. The Developer acknowledges that neither the Authority nor the City makes any representations or warranties as to the condition of the soils on the Development Property or its fitness for construction of the Minimum Improvements or any other purpose for which the Developer may make use of such property. The Developer further agrees that it will indemnify, defend, and hold harmless the Authority. the City, and their governing body members, officers, agents, servants, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Development Property. The Developer"s obligations under this Section 3.2 shall survive termination of this Agreement. Section 3.3. Payment of Administrative Costs. The Developer agrees that it will pay upon demand by the Authority, Administrative Costs (as hereafter defined). For the purposes of this Agreement. the term "Administrative Costs" means out-of-pocket costs incurred by the Authority and attributable to or incurred in connection with the negotiation and preparation of this Agreement and other documents and aL),rreements in connection with the development contemplated hereunder. Out-of-pocket Administrative Costs shall be evidenced by invoices, statements, or other reasonable written evidence of the costs incurred by the Authority. As of the date of this Agreement, the Developer has deposited $5,000 with the Authority to be applied toward Administrative Costs. The amount by which this deposit exceeds the Authority's actual Administrative Costs, if any, shall, upon demand by the Developer, be returned to the Developer, but no earlier than the date on which the Developer receives a Certificate of Completion pursuant to Section 4.4 of this Agreement. Section 3.4. Financino of Land Acquisition Costs. In order to make development of the Minimum Improvements economically feasible, the Authority will reimburse the Developer for the Land Acquisition Costs (hereby defined as the Developer's cost of acquiring the Development Property) in accordance with the following terms and conditions: (a) Subject to the terms and conditions of this Agreement, the Land Acquisition Costs will be reimbursed to the Developer with simple interest thereon at 7.25% per annum, interest commencing to accrue on the date that the Developer complies with the cost certification requirement described in paragraph (t) of this Section. The Land Acquisition Costs will be reimbursed by the Authority to the Developer in semi-annual installments payable on each February 1 and Au�(Tust 1 ("Payment Dates") commencing August 1, 2004 and concluding no later than the Termination Date. These payments will be made from Available Tax Increment as defined in this Section 3.4 and from no other source. (b) The term "Available Tax Increment' means 90% of the Tax Increment with respect Jhh-21637 3v 1 7 NON 190-100 to the Development Property as calculated by the County and paid to the Authority during the six months preceding any Payment Date. (c) If on any Payment Date there is available to the Authority insufficient Available Tax Increment to pay the amounts due on such date, the amount of such deficiency shall be deferred and shall be paid, without interest thereon, on the next Payment Date on which the Authority has available to it Available Tax Increment in excess of the amount necessary to pay the amount due on such Payment Date. (d) The Authority shall have no obligation to pay any portion of the Land Acquisition Costs that remains unpaid after the Termination Date. The Authority may prepay all or a portion of the Land Acquisition Costs at any time. (e) The Authority shall not be obligated to make any payment under this Section if. (i) there is an Event of Default on the Developer's part under this Agreement that has not been cured; or (ii) the Developer has failed to comply with the payment procedures described herein. (f) At least 30 days before becoming entitled to receive any payment hereunder, the Developer must submit to the Authority a payment request certificate signed by its duly authorized representative stating: (i) that the Developer has paid Land Acquisition Costs in at least the amount of $395,000; (ii) that no Event of Default has occurred and is continuing under this Agreement; and (iii) that the Developer has received a Certificate of Completion pursuant to Section 4.4 of this Agreement. The payment request certificate must be accompanied by evidence satisfactory to the Authority that the Land Acquisition Costs have been incurred and paid by the Developer, and without limitation of the foregoing. must include a copy of the purchase agreement, a certificate of real estate value evidencing the purchase price paid by the Developer for the Development Property. and evidence reasonably satisfactory to the Authority that the purchase price did not exceed the fair market value of the Development Property at the time of the Developer's acquisition of it. (g) The Authority makes no warranties or representations that Available Tax Increment will be sufficient to pay the Land Acquisition Costs. The Developer agrees and understands that Available Tax Increment is subject to calculation by the County and change in State law, and that a significant portion of Land Acquisition Costs may remain unpaid after the Termination Date. The Developer further agrees and understands that estimates of Available Tax Increment provided by the Authority and its agents, officers, or employees are estimates only and not intended for the Developer's reliance. Section 3.5. Business Subsidy Agreement. The provisions of this Section constitute the "business subsidy agreement" between the Developer and the Authority and between the Developer and the City, for the purposes of the Business Subsidy Act. (a) General Terms. The parties agree and represent to each other as follows: (1) The subsidy provided to the Developer by the Authority consists of payments to the Developer for Land Acquisition Costs pursuant to this Agreement and the waiver by the City of certain sever and water trunk fees. These payments and waivers represent a .1KP-216373v I MN 190-100 E? forgivable loan that is repayable by the Developer in accordance with this Section. The payments under- Section 3.4 are payable from a portion of the Tax Increments from the TIF District, an economic development tax increment financing district. (2) The public purposes of the subsidy are to promote development of a manufacturing facility in the City, increase manufacturing jobs in the City and the State, and increase the tax base of the City and the State. These public purposes predominate over any incidental benefit received by the Developer as the subsidy is provided solely to induce the Developer to construct the manufacturing improvements. (3) The goals for the subsidy are: to secure development of the Minimum Improvements on the Development Property; to maintain such improvements as a manufacturing facility for at least five years as described in clause (6) below; and to create the jobs and wa�(ye levels in accordance with Section 3.5(b) hereof. (4) If the goals described in clause (3) are not met, the Developer must make the payments to the Authority and City described in Section 3.5(c). (5) The subsidy is needed because land acquisition costs make development of the Minimum Improvements infeasible without public assistance, all as determined by the City upon approval of the TIF Plan. (6) The Developer must continue operation of the Minimum Improvements as a manufacturing facility for at least five years after the date of issuance of the certificate of completion. (7) The Developer does not have a parent corporation. (8) In addition to the assistance provided under this Agreement, the Developer expects to receive additional assistance in connection with the Minimum Improvements or machinery and equipment to be purchased by Developer for use at the Minimum Improvements, specifically a loan from the Monticello Economic Development Authority ("EDA"") (the "EDA Loan") and a Minnesota Investment Fund Grant from the Minnesota Department of Trade and Economic Development (the "DTED Loan"). Notwithstanding the foregoing, nothing in this paragraph constitutes a contractual obligation by the Authority, the City, or the EDA with respect to such assistance. (b) Job crud GI (tge Goals. Within two years after the date of issuance of the Certificate of Completion of the Minimum Improvements (the "Compliance Date"), the Developer shall cause to be created at least 20 new full-time equivalent jobs on the Development Property (the "New Jobs") and shall cause the wages for the New Jobs to be as follows: (i) at least 1 New Job shall pay no less than $10.00 per hour, exclusive of benefits; (ii) at least 2 New Jobs shall pay no less than $12.00 per hour, exclusive of benefits, (iii) at least 4 New Jobs shall pay no less than $14.00 per hour, exclusive of benefits; (iv) at least 4 New Jobs shall pay no less than $16.00 per hour, exclusive of benefits; (v) at least 4 New Jobs shall pay no less than $18.00 per hour, exclusive of benefits; (vi) at least 4 New Jobs shall pay no less than $20.00 per hour, exclusive of benefits; and (vii) at least 1 New Job shall UKP-2Ic„7,v I MN 190-100 we pay no less than $22.00 per hour, exclusive of benefits. In addition to the foregoing, the Developer shall, within 6 months of receiving a certificate of occupancy for the Minimum Improvements, cause to be transferred to the Development Property 70 jobs that exist as of the date of this agreement at the Developer's current facility in Corcoran, Minnesota (the "Existing Jobs"), shall cause the Existing Jobs to be maintained at the Development Property at least through the Compliance Date, and shall cause the wages for the Existing Jobs at all times through the Compliance Date to be as follows: (i) at least 2 Existing Jobs shall pay no less than $10.00 per hour, exclusive of benefits; (ii) at least 5 Existing Jobs shall pay no less than $12.00 per hour, exclusive of benefits; (iii) at least 6 Existing Jobs shall pay no less than $14.00 per hour, exclusive of benefits; (iv) at least 12 Existing Jobs shall pay no less than $16.00 per hour, exclusive of benefits; (v) at least 8 Existing Jobs shall pay no less than $18.00 per hour, exclusive of benefits; (vi) at least 17 Existing Jobs shall pay no less than $20.00 per hour, exclusive of benefits; and (vii) at least 20 Existing Jobs shall pay no less than $22.00 per hour. exclusive of benefits. Notwithstanding anything to the contrary herein, if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied despite the Developer's continuing obligations under Sections 3.5(a)(6) and 3.5(d). (c) Remedies. If the Developer fails to meet the goals described in Section 3.5(a)(3), the Developer shall repay (1) to the Authority upon written demand from the Authority a "pro rata share" of the amount of any payments made to the Developer under Section 3.4 hereof, (2) to the City upon written demand from the City a "pro rata share" of the amount of any fee waivers granted by the City under Section 3.7, and (3) to the Authority and City, respectively, interest on the amounts in clauses (1) and (2) at the implicit price deflator as defined in Minnesota Statutes, Section 116J994, subd. 6, accrued from the date of issuance of the certificate of completion to the date of payment. The term "pro rata share' means percentages calculated as follows: (i) if the failure relates to the number of jobs, the jobs required less the New Jobs created. divided by the jobs required; (ii) if the failure relates to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; (iii) if the failure relates to maintenance of the Minimum Improvements Jn accordance with Section 3.5(a)(6), 60 less the number of months of operation as a metals recycling facility (where any month in which the facility is in. operation for at least 15 days constitutes a month of operation), commencing on the date of the certificate of completion and ending with the date the facility ceases operation as determined by the Authority, divided by 60; and (iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable percentages, not to exceed 100%. Nothing in this Section shall be construed to limit the Authority's or City's remedies under Article IX hereof. In addition to the remedy described in this Section and any other remedy available to the Authority or City for failure to meet the goals stated in Section 3.5(a)(3), the Developer agrees and understands that it may not receive a business subsidy from the Authority. the JKP-216373v1 10 MN 190-100 �t City, or any other "grantor" (as defined in the Business Subsidy Act) for a period of five years from the date of the failure or until the Developer satisfies its repayment obligation under this Section, whichever occurs first. (d) Reports. The Developer must submit to the Authority a written report regarding business subsidy goals and results by no later than March of each year, commencing March 1, 2003 and continuing until the later of (i) the date the goals stated Section 3.5(a)(3) are met; (ii) 30 days after expiration of the five-year period described in Section 3.5(a)(6); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 3.5(c). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The Authority will provide information to the Developer regarding the required forms. If the Developer fails to timely file any report required under this Section, the Authority will mail the Developer warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Developer fails to provide a report. the Developer must pay to the Authority a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this Section $1,000. (e) Auchis. Upon written request of the Authority or City in any year, the Developer shall retain at its expense an independent, third party accountant to audit any job and wage report submitted by the Developer under paragraphs (d) or (f) of this Section. The Developer must deliver to the Authority a written report from the accountant promptly upon completion of such audit. Section 3.6. Use of Tax Increment. Except as set forth herein, the Authority shall have no obligation to the Developer with regard to its use of Tax Increment and may use Tax Increment for any lawful purposes, whether set forth herein or otherwise. Section 3.7. Fee Waivers for Wates- and Sewer. The Developer acknowledges that sewer and water trunk fees (the "Trunk Fees") imposed by the City on a development the size of the Minimum Improvements would normally total $92,600. The City hereby agrees to waive $83,340 of these Trunk Fees. The Developer shall, at its option, pay the remaining $9,260 of Trunk Fees upon: (i) issuance of a building permit for the Minimum Improvements; or (ii) as assessed against the Minimum Improvements over a period of 10 years, with 6.5% interest accruing on such assessments; provided that the Developer will provide the City with written confirmation of which of these two Trunk Fee payment options it has selected and shall take such actions as are necessary to effect its selected payment option prior to issuance of a building permit for the Minimum Improvements. .1rP-216373%,1 11 MN 190-100 ILI ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvements. The Developer agrees that it will construct the Minimum Improvements on the Development Property in accordance with the approved Construction Plans and at all times during the term of this Agreement, will operate and maintain, preserve and keep the Minimum Improvements or cause such improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. The Authority shall not have any obligation to operate or maintain the Minimum Improvements. Section 4.2. Construction Plans. (a) Before commencement of construction of the Minimum Improvements, the Developer shall submit to the Authority Construction Plans. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with the Redevelopment Plan. this Agreement, and all applicable State and local laws and regulations. The Authority will approve the Construction Plans in writing if. (i) the Construction Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans conform to the goals and objectives of the Redevelopment Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum Improvements; (v) the Construction Plans do not provide for expenditures in excess of the fiends available to the Developer from all sources for construction of the Minimum Improvements; and (vi) no Event of Default has occurred. Approval may be based upon a review by the City's Building Official of the Construction Plans. No approval by the Authority shall relieve the Developer of the obligation to comply with the terms of this Agreement or of the Redevelopment Plan, applicable federal, state and local laws, ordinances, rules and retyulations, or to construct the Minimum Improvements in accordance therewith. No approval by the Authority shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Developer in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefore, and shall be made within 10 days atter the date of their receipt by the Authority. If the Authority rejects any Construction Plans in whole or in part, the Developer shall submit new or corrected Construction Plans within 10 days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the Authority. The Authority"s approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements constructed in accordance with said plans) comply to the Authority's satisfaction with the provisions of this Agreement relating thereto. (b) If the Developer desires to make any Material change in the Construction Plans after their approval by the Authority, the Developer shall submit the proposed change to the Authority for its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved AP -2163731 v 1 12 MN 190-100 0 Construction Plans, the Authority shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans shall, in any event. be deemed approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to the Developer, setting forth in detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the notice of such change. The Authority's approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays, the Developer shall commence construction of the Minimum Improvements by September 30, 2002. Subject to Unavoidable Delays, the Developer shall complete the construction of Minimum Improvements by July 1, 2003. All work with respect to the Minimum Improvements to be constructed or provided by the Developer on the Development Property shall be in conformity with the Construction Plans as submitted by the Developer and approved by the Authority. The Developer agrees for itself, its successors and assigns, and every successor in interest to the Development Property, or any part thereof, that the Developer, and such successors and assigns, shall promptly begin and diligently prosecute to completion the development of the Development Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement. The obligation to construct the Minimum Improvements in accordance with this Section touches and concerns the land, and shall run with the property and be binding upon all successors and assigns to the Development Property. After the date of this Agreement and until construction of the Minimum Improvements has been completed, the Developer shall make reports, in such detail and at such times as may reasonably be requested by the Authority, as to the actual progress of the Developer with respect to such construction. Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Developer to construct the Minimum Improvements (including the dates for beginning and completion thereof). the Authority will furnish the Developer with a Certificate shown as Exhibit B. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof. (b) If the Authority shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4 of this Agreement, the Authority shall, within thirty (30) days after written request by the Developer, provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Minimum Improvements in accordance with the provisions of the Aureement. or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Authority, for the Developer to take or perform in order to obtain such certification. (c) The construction of the Minimum Improvements shall be deemed to be complete upon issuance of a certificate of occupancy by the City for, and the opening for business of, the Minimum Improvements. MN 190-100 13 "-A M %.A"11%-0 )t1ces NOTICE OF PUBLIC HEARING EASEMENT VACATION OUTLOT F IN GROVELAND ADDITION tEBY GIVEN that a public hearing will be conducted by the City of Monticello on Monday, August 26, 2002 at 7 p.m. in the City to consider the vacation of all the dedicated drainage and utili- n Outlot F, Groveland Addition accorded to the recorded plat inty, Minnesota. s desire to be heard in reference to the proposed vacation will !eting. mat narne. i ne nnng is requirea Tor consumer protection in oraer to enaole con- sumers to be able to identify the true owner of a business. 1. State the exact assumed name under which the business is or will be con- ducted (one business name per application): Aspire Realty. 2. State the address of the principal place of business. A complete street address or rural route and rural route box number is required; the address cannot be a P.O. Box: 12347 Afton Ave NE, Monticello, MN 55362. 3. List the name and complete street address of all persons conducting business under the above Assumed Name or if the business is a corporation, provide the legal corporate name and registered office address of the corporation. Attach addi- tional sheet(s) if necessary. Gary R. Carlson, 12347 Afton Ave NE, Monticello, MN 55362. 4. 1 certify that I am authorized to sign this certificate and I further certify that I understand that by signing this certificate, I am subject to the penalties of perjury as set forth: in Minnesota Statutes section 609.48 as if I had signed this certificate under oath' Date: 06-28-02. -Gary R. Carlson-Broker/Owner; (Aug. 22, 29, 2002) comments will be considered. li NOTICE OF PUBLIC HEARING City Administrator V CITY OF MONTICELLO, MINNESOTA '2) NOTICE IS HEREBY GIVEN that the City Council of Monticello, Minnesota, will hold a public hearing on Monday, August 26, 2002, 7:00 p.m. in the Council NOTICE OF ELECTION Chambers, 505 Walnut Street, Monticello, Minnesota, regarding a proposed busi- ie Township of Big Lake, Township of Monticello Township of ness subsidy -to be granted by the Housing and Redevelopment Authority in and Otsego. for the City of Monticello, Minnesota, to Ultra Machining Company (the "Recipient") Hospital Board Members of Monticello -Big Lake Community under Minnesota Statutes, Sections 116J.993 to 116J.994.The proposed subsidy involves a tax increment finance pay-as-you-go note to assist with land acquisition NOTICE, that an election of Hospital Board members to the costs as part of the development of a manufacturing facility by the Recipient in the o -Big Lake Community Hospital District shall be conducted in City. General Election on Tuesday, November 5, 2002. Information about the proposed business subsidy and copy of the draft busi- eats on the Board are up for election: ness subsidy agreement ar available for inspection at City Hall during regular. busi- nb m the Township of Monticello; _ ness hours. -nb m the City s Otsego; All interested persons may appear and be heard orally and in writing. -nbei Irom the Township of Big Lake; -Rick Wolfsteller, City Administrator b f th T • f B k (August 22, 2002) m er w rom e ons h ip o ec er, I District consists of the City of Big Lake, Township of Big Lake, Monticello, Township of Monticello, Township of Silver Creek, p of Becker, and City of Otsego). d this year shall be elected for a term of four years, commenc- iday in January of 2003. Persons elected on November 5, 2002, Certificate of Election, and will be required to file an Oath and ce in order to qualify for office. Once qualified, the person shall i Monday in January 2003. n file who will be at least 21 years of age on January 6, 2003. reside within the city or township which they seek to represent. -nlv file_ for one position. An "Affidavit For Candidacy" must be ivit For Candidacy" can be obtained from the Clerk of the vhich he/she resides. Candidates must file with the Clerk of the re he/she lives within the filing period. .uesday, August 27, 2002 - During normal business office hours. Tuesday, September 10, 2002 - During normal business office Acants should check with City/Township office for their office ng fee. -,, Secretary/Clerk ke Community Hospital District Sept. 5, 2002) NOTICE OF PUBLIC HEARING :ITY OF MONTICELL0 - COUNTY OF WRIGHT STATE OF MINNESOTA EREBY GIVEN that the City of Monticello will hold a public hear - Aug, 26, 2002 at approximately 7:00 p.m., at the Monticello iter, 505 Walnut Street, Mississippi Room Council Chambers, 5362, to consider making an application for funding from the State ier the Small Cities Economic Development Program for an eco- :)nt project. The program and its requirements will be explained. questions will be welcomed. Under consideration will be a pro- trr shining Company with its proposed location and expansion 1091",11 is designed to provide assistance to private businesses in r in expanding, while benefitting low and moderate -income per- ation, call 011ie Koropchak, Economic Development Coordinator at City Administrator PUBLIC NOTICE he provisions of Minnesota Statutes 471.705, and in accordance iin Citv Code of Ordinances, Title 1, Chapter 5, Section 1-5-1 (B), NOTICE OF PUBLIC HEARINGS NOTICE IS HEREBY GIVEN that a public hearing will be held by the City of Monticello Planning Commission on September 3, 2002 at 7 PM, in the Monticello City Hall to consider the following matter: Consideration of an amendment to a Planned Unit Development allowing expansion of auto sales and display area on an interim basis. Location: Section 11, Township 121, Range 25. Dave Peterson's Monticello Ford Expansion area to include Outlot A, Outlot B, Lot 1, Block 1; Lot 1, Block 2; and Lot 9, Block 3, Plaza Partners. Applicant: Dave Peterson, Monticello Ford. Written and oral testimony will be accepted on above subjects, and all persons desiring to be heard on referenced subjects will be heard at this meeting. Decisions of the Planning Commission will be subject to the approval or denial of the City Council and will be heard on Monday, September 9, 2002 at 7 p.m., at the Monticello City Hall. -Fred Patch, Zoning Official (August 22, 2002) NOTICE OF PUBLIC HEARINGS NOTICE IS HEREBY GIVEN that a public hearing will be held by the City of Monticello Planning Commission on September 3, 2002 at 7 PM, in the Monticello City Hall to consider the following matter: Consideration of a request for a zoning map amendment re -zoning a parcel from 1-2, heavy industrial to" one or a combi- nation of the following districts: B-4, B-3, B-2, and I-1 A. Location: Unplatted prop- erty, PID #155-500-142400. Section 14, Township 121, Range 25. Applicant: Zoning Administrator, City of Monticello. Written and oral testimony will be accepted on above subjects, and all persons desiring to be heard on referenced subjects will be heard at this meeting. Decisions of the Planning Commission will be subject to the approval or denial of the City Council and will be heard on Monday, September 9, 2002 at 7 p.m., at the Monticello City Hall. -Fred Patch, Zoning Official (August 22, 2002) NOTICE OF PUBLIC ACCURACY TEST NOTICE IS HEREBY GIVEN that Monticello Township will be testing their optic voting scan machine on Wednesday, Sept. 4 at 3 p.m. for the upcoming primary election. -Darlene Sawatzke, Monticello Twp. Clerk (August 22, 2002) NOTICE OF PUBLIC HEARINGS NOTICE IS HEREBY GIVEN that a public hearing will be held by the City of Monticello Planning Commission on September 3, 2002 at 7 PM, in the Monticello City Hall to consider the following matter: Consideration of a request for variance .. . • -., __a n..+1..1 A r-, ,,n1nnH 7nri Aridition to Booms I Black Yc you; g ar N. Council Agenda - 8/26/02 8. Public Hearing - Consideration to adopt a resolution authorizing application to the Minnesota Department of Trade and Economic Development (DTED) for funding an economic development proiect, UMC. (O.K.) A. Reference and Background: PUBLIC HEARING The Mayor should open the public hearing for comments or questions. The public hearing notice appeared in the Monticello Times, August 15 and 22, 2002, for compliance of Minnesota Statutes. As you are aware, the Ultra Machining Company has selected the City of Monticello for its proposed relocation and expansion project. The 10 -acre site is located along the south side of Chelsea Road East and to the west of the TCDC. The proposed project includes the construction of a 60,000 sq ft office/manufacturing facility and the creation of 120 new full-time jobs for the City of Monticello and 30 new full-time jobs for the State of Minnesota. Knowing the company relocation and expansion plans met the criteria of the city and the state funding programs, Koropchak contacted the DTED representative as to the State's interest to participate in this expansion project. With the State's immediate interest in the proposed project and as a part of the recruitment process, Lenny Kirscht, First National Bank of Elk River, Hassan Office, was called aboard to package the Minnesota Investment Fund (MIF) Application. The estimated $4,395,000 project has two separate funding uses and sources statement. The real estate costs estimated at $3,395,000 and the machinery/equipment costs estimated at one million dollars. The funding sources proposed for the real estate are the Minnesota Investment Fund, Monticello GMEF, lender, and equity. The Central Minnesota Initiative Fund will apply to the machinery/equipment loan. After hearing comments and questions from the public, the Mayor should close the public hearing. RESOLUTION FOR ADOPTION The resolution for adoption states that the City of Monticello has the legal authority to apply for financial assistance, will enter into certain agreements and comply with all applicable laws, and authorizes application to the Department of Trade and Economic Development for the Ultra Machining Company project. Council Agenda - 8/26/02 The City of Monticello will apply for a grant in the amount of $290,000. Upon receiving the grant, the City will loan the $290,000 to Ultra Machining Company at terms negotiated between the city and company. Lenny Kirscht and Mark Ruff, Ehlers & Associates, report terms of a 4% fixed interest rate over 20 years are typical for this type of program. However, the Small Cities Economic Development Grants of a few years ago to Aroplax and Standard Iron were at 6% and Twin City Die Castings at 4%. Again, the $290,000 is part of the real estate funding. The State is proposing the MIF dollars be from the State's pool of money which means the City of Monticello retains the first $100,000 principal plus interest for the purpose of providing future loans to assist expanding businesses. In other words, the first $100,000 principal and interest payback payments will go into the EDA-GMEF. The purpose of the Minnesota Investment Fund Program is to create new and retain the highest quality jobs possible on a state wide basis with a focus on industrial, manufacturing, and technology related industries; to increase the local and state tax base and improve the economic vitality for all Minnesota citizens. Eligible projects include loans for land, building, equipment and training. Funds may also be used for infrastructure improvements necessary to support businesses located or intending to locate in Minnesota. Ineligible projects include working capital, retail business, and industrial park development. Mr. Lenny Kirscht will be present at the Council meeting to review the application process and legal obligations of the City. It is anticipated the completed application will be submitted to the State on August 30, 2002. The HRA/EDA Attorney will prepare the State's loan closing documents as well as the GMEF and TIF documents. The City's Economic Development Director administers the awarded State funds and programs. At a later date, the Council will hold a public hearing relative to the $290,000 loan and approve a business subsidy agreement relative to the $290,000 loan. B. Alternative Action: 1. A motion to approve the Local Government Resolution, Economic Development Program, authorizing application to the Minnesota Department of Trade and Economic Development for Ultra Machining Company (UMC). 2. A motion to deny approval of the Local Government Resolution, Economic Development Program, authorizing application to the Minnesota Department of Trade and Economic Development for Ultra Machining Company. 3. A motion to table any action. 2 Council Agenda - 8/26/02 C. Recommendation: The City Administrator and Economic Development Director recommend alternative action no. 1. Although not part of this action, the recommended terms of the loan to be negotiated are 2.75% fixed rate, amortized over 20 years with balloon payment in 10 years for the Minnesota Investment Fund. The recommendation is based on the Prospect Team's suggestion for the Proposal submitted to UMC in April. The GMEF loan will follow its guidelines. D. Supporting Data: Resolution for adoption, public hearing notice, estimated uses and sources statement, and job and wage -level goals. J 1. 2 3. 9 CITY OF MONTICELLO GRANT APPLICATION TO THE STATE OF MINNESOTA FOR LOAN FUNDS TO ASSIST ULTRA MACHINING COMPANY INC.'s EXPANSION, LOCATION, AND NEW EQUIPMENT ACQUISITION Grant Proposal The City is applying for a grant under the State of Minnesota's Economic Development Grant Program, the Minnesota investment Fund. The application will be for $290,000 to provide loan funds to assist Ultra Machining Company, Inc.'s (UMC) in its facility construction and equipment acquisition project. All of the funds to be loaned to the Company will assist for the construction of its new facility in the Monticello Industrial Park. The project will be known as the Ultra Machining Company Expansion Project. Proiect Site The Ultra Machining Corporation facility will be located at the following site: Chelsea Road, Monticello, MN Proiect Activities and Timeframe August 2002 - April 2003 September 2002 April 2003 through March 2005 Overall Proiect Cost and Financing Arrange financing, construction of facility on the project site, begin acquisition of equipment. Total construction of the new building will be in excess of 60,000 square feet. Estimated time for release of State loan funds, assuming grant application is approved. Hiring of 30 new FTE employees. Overall project cost is estimated to be in excess of $4,400,000: Approximately 3,400,000 for construction, including soft costs/contingency, and $1,000,000 for new equipment. The City, in its grant application, is requesting $290,000 to loan to Ultra Machining Company, Inc. at an annual interest rate of 0 fully amortized for a term of 20 years. If the grant funds are federal monies, then the City may retain all the repayments. If the grant funds are state monies, then the City may retain the first $100,000 in principal repayments, including accrued interest up to mat point. These funds can then be loaned to other eligible businesses. It is anticipated that the financing for the remainder of the project will come from the following sources: Bank, State of Minnesota, Greater Monticello Enterprise Fund, Central MN Foundation (equipment) and Company equity/TIF equity. No project costs will be assessed to community residents. Upon project completion, it is anticipated that maintenance expenses incurred by Ultra Machining Company for the facilities and for business operations will be ordinary maintenance costs experienced by similar businesses in the same industry category operating in a similar -sized and configured facility. The City will incur no maintenance expenses for the facility or its operations. 5. Benefit to Low and Moderate Income Persons At a minimum, 51 % of the jobs created by this project will be available to persons of low and moderate income (income at or below 80 % of the median household income for Wright County, as established by the U.S. Department of Housing and Urban Development for the applicable fiscal year). Creation of 30 new jobs would potentially result in 16 persons of low and moderate income hired for a total combined salary of approximately $1,150,000 annually. 6. Displacement None of the proposed project activities will result in displacement of any persons. 7. Citizen Opportunitv to Comment Any individual may comment on the loan funds proposal to assist the Ultra Machining Company Expansion Project. Any individual may also comment on any community needs that the City should address. Written responses shall be made to written comments within 15 days of the hearing. After 15 days following the hearing have elapsed, written responses to written comments will be made within 15 days of receiving the written comment. LOCAL GOVERNMENT RESOLUTION ECONOMIC DEVELOPMENT PROGRAM BE IT RESOLVED that the City of Monticello act as the legal sponsor for project(s) contained in the Business and Community Development Application to be submitted on approximately August 30, 2002 and that the Mayor and City Administrator are hereby authorized to apply to the Department of Trade and Economic Development for funding of this project on behalf of the City of Monticello. BE IT FURTHER RESOLVED that the City of Monticello has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to enSUre adequate construction, operation, maintenance and replacement of the proposed project for its design life. BE IT FURTHER RESOLVED that the City of Monticello has not incurred any costs and has not entered into any written agreements to purchase property. BE IT FURTHER RESOLVED that the City of Monticello has not violated any Federal, State, or local laws pertaining to fraud, bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state, the City of Monticello may enter into an agreement with the State of Minnesota for the above -referenced project(s), and that the City of Monticello certifies that it will comply with all applicable laws and regulations as stated in all contract agreements and described on the Compliance Section (page 7) of the Business and Community Development Application. AS APPLICABLE, BE IT FURTHER RESOLVED that the City of Monticello has obtained credit reports and credit information from Ultra Machining Company and Terry Tornann. Upon review by the City of Monticello and the City's Representatives, no adverse findings or concerns regarding, but not limited to, tax liens, judgements, court actions, and filings with state, federal and other regulatory agencies were identified. Failure to disclose any sEich adverse information could result in revocation or other legal action. NOW, THEREFORE BE IT RESOLVED that the Mayor and City Administrator, or their successors in office, are hereby authorized to execute such agreements, and amendments thereto, as are necessary to implement the project(s) on behalf of the applicant. I CERTIFY THAT the above resolution was adopted by the City Council of the City of Monticel to on August 26, 2002. SiGNED: WiTNESSED (Title) (Date) (Title) (Date) 06 Winners of the bike, , left) Mitch Torrell Nartz (board). blade and board stunt competitions are (blade), Jake Peterson (bike) and Jason NOTICE OF PUBLIC HEARING ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO COUNTY OF WRIGHT STATE OF MINNESOTA NOTICE IS HEREBY GIVEN that the Economic Development Authority in and for the City of Monticello, Minnesota, will hold a public hearing on Tuesday, Aug.. 20, 2002, at approximately 4:00 p.m., at the City Hall, 505 Walnut Street, Academy Room, Monticello, Minnesota, regarding a proposed business subsidy to be grant- ed by the Economic Development Authority to the Ultra Machining Company (the "Recipient") under Business Minnesota Statutes, Sections 116J993 through 116J.994. The proposed subsidy involves a below interest loan to assist with real estate development as part of the development of a manufacturing facility by the Recipient in the City of Monticello. Proposed amount of the subsidy is $200,000. Information about the proposed business subsidy is available for inspection at ting of City Hall during regular business hours. lace: All interested persons may appear at the hearing and present their views oral- ly or in writing. BY ORDER OF THE ECONOMIC DEVELOPMENT AUTHORITY —011ie Koropchak, Executive Director (August 15, 2002) PUBLIC NOTICE Pursuant to the provisions of Minnesota Statutes 471.705, a special meeting of the Monticello Economic Development Authority is hereby scheduled for the fol- lowing time, date, and place: City TIME: 4:00 P.M. e City DATE: Tuesday, August 20, 2002 J utili- PLACE: Academy Room, Monticello Community Room, 505 Walnut Street d r SUBJECT: Consideration to review GMEF Loan Application from UMC. Public hearing and consideration to approve GMEF Loan No. 1-22, a business sub- sidy. (August 15, 2002) NOTICE OF PUBLIC HEARING CITY OF MONTICELLO - COUNTY OF WRIGHT STATE OF MINNESOTA lip of NOTICE IS HEREBY GIVEN that the City of Monticello will hold a public hear- ing on Monday, Aug. 26, 2002 at approximately 7:00 p.m., at the Monticello unity Government Center, 505 Walnut Street, Mississippi Room Council Chambers, Monticello, MN 55362, to consider making an application for funding from the State the of Minnesota under the Small Cities Economic Development Program for an eco- �d in nomic development project. The program and its requirements will be explained. Comments and questions will be welcomed. Under consideration will be a pro- posal to assist Ultra Machining Company with its proposed location and expansion project. The state's program is designed to provide assistance to private businesses in getting started or in expanding, while benefitting low and moderate -income per- sons. For information, call 011ie Koropchak, Economic Development Coordinator at ake, (763) 295-2711. eek, —Rick Wolfsteller, City Administrator (Aug. 15, 22) =nc- 302, PUBLIC NOTICE and Pursuant to the provisions of Minnesota Statutes 471.705, a special meeting of :hall the Monticello Joint Fire Board is hereby scheduled for the following time, date; )03, and place: ent. TIME:'7 p.m. be DATE: Tuesday, August 20, 2002 the PLACE: Fire Hall the SUBJECT: Regular Meeting ars. Tice )C, ',"UN NEIN -OWNERSHIP Divots Bar 1 5700 Jason A Albertvil 763-497-3 At the Cedar Creek Golf Cou Monday: Kids Night Kids menu item FREE with every Tuesday: Senior Night $1 off any entree for Seniors Wed. -Fri.: Happy Hour 3-6 p.m. $1 off taps and well drinks Saturday: All -You -Can -Eat Fish Fry — $7.9: r - - - - - �- � Monticello Shopper Coupon - - 1 - Any menu off or tap N 1 With coupon. One coupon per customer per d at Divots Bar & Grill, Albertville. Good through 16 ---- Bring Home the BACON Get quick cash with the classifiE Sell your unwanted car, property and houSE more -quicky and affordably with the clas r Just call us today to place your ad and get read to start counting your cash. Monticello IMf!5, Inc. 763-295-3131 I Nati✓ CITY OF MONTICELLO GRANT APPLICATION TO THE STATE OF MINNESOTA FOR LOAN FUNDS TO ASSIST ULTRA MACHINING COMPANY INC.'s EXPANSION, LOCATION, AND NEW EQUIPMENT ACQUISITION 1. 2. a Grant Proposal The City is applying for a grant under the State of Minnesota's Economic Development Grant Program, the Minnesota Investment Fund. The application will be for $290,000 to provide loan funds to assist Ultra Machining Company, Inc.'s (UMC) in its facility construction and equipment acquisition project. All of the funds to be loaned to the Company will assist for the construction of its new facility in the Monticello Industrial Park. The project will be known as the Ultra Machining Company Expansion Project. Proiect Site The Ultra Machining Corporation facility will be located at the following site: . Chelsea Road, Monticello, MN Proiect Activities and Timeframe August 2002 - April 2003 September 2002 April 2003 through March 2005 4. Overall Proiect Cost and Financine Arrange financing, construction of facility on the project site, begin acquisition of equipment. Total construction of the new building will be in excess of 60,000 square feet. Estimated time for release of State loan funds, assuming grant application is approved. Hiring of 30 new FTE employees. Overall project cost is estimated to be in excess of $4,400,000: Approximately 3,400,000 for construction, including soft costs/contingency, and $1,000,000 for new equipment. The City, in its grant application, is requesting $290,000 to loan to Ultra Machining Company, Inc. at an annual interest rate of fully amortized for a term of 20 years. If the grant funds are federal monies, then the City may retain all the repayments. If the grant funds are state monies, then the City may retain the first $100,000 in principal repayments, including accrued interest up to that point. These funds can then be loaned to other eligible businesses. It is anticipated that the financing for the remainder of the project will come from the following sources: Bank, State of Minnesota, Greater Monticello Enterprise Fund, Central MN Foundation (equipment) and Company equity/TIF equity. No proiect costs will be assessed to community residents. Upon project completion, it is anticipated that maintenance expenses incurred by Ultra Machining Company for the facilities and for business operations will be ordinary maintenance costs experienced by similar businesses in the same industry category operating in a similar -sized and configured facility. The City will incur no maintenance expenses for the facility or its operations. 5. Benefit to Low and Moderate Income Persons At a minimum, 51 % of the jobs created by this project will be available to persons of low and moderate income (income at or below 80 % of the median household income for Wright County, as established by the U.S. Department of Housing and Urban Development for the applicable fiscal year). Creation of 30 new jobs would potentially result in 16 persons of low and moderate income hired for a total combined salary of approximately $1,150,000 annually. 6. Displacement None of the proposed project activities will result in displacement of any persons. 7. Citizen Opportunity to Comment Any individual may comment on the loan funds proposal to assist the Ultra Machining Company Expansion Project. Any individual may also comment on any community needs that the City should address. Written responses shall be made to written comments within 15 days of the hearing. After 15 days following the hearing have elapsed, written responses to written comments will be made within 15 days of receiving the written comment. 06/26/02 WEIR 36.28 FAX 7634786483 1 / ULTRA MACHINING coMPANY ®grAm WvQue 01"EVS A-1 N: CAROL PRESSLEY-OLSON SL.NiOR LOAN OFFICER OFMCE OF BUSINESS FINANCE 500 METRO SQUARE 121 7' T I PLACE EAST ST. PAUL. MN 55 to 1-2116 RE- UMC BU11,D(NG PROJECT Un. INC - 4 002 22510 Higkwoy 55 mamel, Minnesot® 55340 Tejcp} one (7631 d78-6609 Fow (7631 478-6483 Enclosed ptcase find rhe completed Einplobinent Data Form stin,mamn- ng the jobs to be crcatcd ~girl} the UNIC btilldmvir pmicct. Katf of the jobs to be created arc for die m--tchini-st P05140n Candidates for this position are rcquired to have a 2-yca.r vocational school degm or equivalent cN-pcncncc. Tlic toolmakcr- quality assurance- and cngtneer positions rec�utrc a 2 or 4 vicar degrcc or ccluivalcnt e�pericncc The apprentice machinist poSif On 35 tvplcaliv a, high school or technical school student •working part time while pursuing a degree The W shing and assrmbly/deburring pc,silrions could be open to nor(-skiP:d candidates Plcase doii-t licsttate to contact me if ecru need firthCr inS'or'matioat .. Bc5t rrgards. ��-a 14,J, Dick Salonck. CMA CorltmIlcr NTMA IPPA mCmSaa 99-d EO/ZO"d 9CY-1 G31G-Woad W"19'80 ZO®LZ-unf I r to £V9 -d £0/£0*d 80V-1 ®R 0314—woad wets:80 ZO-1Z—unr City Council Agenda - 08/26/02 9. Public HearinLy: Consideration of vacation of easements in Outlot F of Groveland Addition. (JO) REFERENCE AND BACKGROUND City Council is asked to vacate the easements shown on the original Groveland Outlot F. The easements will be replaced by new easements identified on the Groveland Commercial Center plat that was recently approved. This plat was approved in conjunction with development of the Groveland Commercial Center. It should be noted that the new plat moves a utility easement line along the rear of the building a distance of five feet to the north which results in the removal of the building foundation from a small area of the original utility easement area. Placement of the building at this location occurred after Weinand was granted a license allowing the placement of a portion of the footing in the easement area. The proposed vacation and associated re -platting removes the building from the easement area. There is a subtle benefit to keeping the easement in place as the license agreement includes a clause that indemnifies the City for any damage to the building resulting from City maintenance of the utilities within the easement. This benefit can also be achieved by having the developer indemnify the City against liability associated with work in the easement. This indemnification would apply even though the structure is not in the easement. The vacation of easement also allows a slight reduction in easement area long the Marvin Road right-of-way in the areas where the building wall comes close to the current 12' easement. The City Engineer has reviewed the location and elevation of utilities in the area and believes that the City is safe in granting the developers request to move the easement lines as proposed. ALTERNATIVE ACTIONS 1. Motion to vacate easements as requested to allow recording of final plat of the Groveland Commercial Center. Motion contingent on replacement of easements with new easements as identified on the new plat. Motion also contingent on developer releasing the City from liability associated with damage ever resulting from City maintenance of the utility lines within the easement. 2. Motion to deny vacation of easements as requested. Council should select this alternative if it believes that the easement and associated license agreement is needed to protect the City against liability associated with the building foundation located in close proximity to City utility lines. STAFF RECOMMENDATION City Council Agenda - 08/26/02 The City Administrator recommends alternative 1. SUPPORTING DATA Copy of original plat — Outlot F of Groveland Addition. 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Consideration of a request for amendment to the City ordinance on Tattoo Parlors/Bodv Piercinu. Establishments relatina. to traininLy requirements. (RW) A. REFERENCE AND BACKGROUND: In August of 1999, the Council adopted an ordinance regulating tattoo parlors/body piercing establishments. At that time the Planning Commission had conducted a public hearing and made a determination that the B-4 District was the appropriate district for this commercial use and the zoning ordinance was amended to allow tattoo parlors/body piercing as a permitted use in a B-4 District and any permitted use in a B-4 District is also permitted use in the CCD District. The issues of public health and safety were also a concern and it was felt that the most effective way of regulating these operations was through licensing. The ordinance the City adopted was based on regulations of the Minnesota State Department of Health and Family Services. The applicant has questioned Section 3-14-10(G) of the ordinance which requires that each operator at the establishment must submit evidence of having served an apprenticeship of at least 30 days under a licensed tattoo artist. Mr. Distel feels that the medical training he has received as a nurse would meet or exceed the training provided in a 30 day apprenticeship. He is requesting that the Council consider amending the ordinance to allow for equivalent training alternatives to the apprenticeship program. Mr. Distel will be present at the meeting with information on what other communities have allowed. He indicates that it would cost in excess of $4,000 for the 30 day apprentice program and if he is required to comply with that provision of the ordinance, it may not be financially feasible for hien to proceed with this business venture. B. ALTERNATIVE ACTIONS: If the Council feels there is merit in allowing for options for training that are equivalent to the training requirement specified in the ordinance, they can direct staff to study other options and report back to the Council. 2. If the Council feels the training provision of the ordinance is satisfactory, then no change would be made to the ordinance. C. STAFF RECOMMENDATION: At the time the ordinance was originally drafted it was based on information from the State Department of Health and Family Services and the training provision seemed a reasonable requirement. D. Sf1P1DORTING DATA: Section of Tattoo/Body Piercing Ordinance. 3-14-9 LOCATIONS INELIGIBLE FOR A LICENSE: The following locations shall be ineligible for a license under this Chapter. (A) Taxes Due on Property. No license shall be granted or renewed for operation on any property on which taxes, assessments, or other financial claims of the state, county, school district, or City are due, delinquent or unpaid. In the event a suit has been commenced under Mirmesota Statutes, Section 278.01-278.03, questioning the amount or validity of taxes, the City Council may on application waive strict compliance with the provision; no waiver may be granted, however, for taxes or any portion thereof which remain unpaid for a period exceeding one (1) year after becoming due. (B) Improper Zoning. No license shall be granted or renewed if the property is not properly zoned or does not qualify as a legal nonconforming use for tattooing and/or body piercing establishments under Title 10 of this Code. (C) Premises Licensed for Alcoholic Beverages. No license shall be granted or renewed if the license for the furnishing of alcoholic beverages pursuant to Title 3, Chapter 2 of this Code or is license as a sexually -oriented business pursuant to Title 3, Chapter 13 of this Code. 314-10 GENERAL LICENSE REQUIREMENTS: (A) Tattoos on Minors. No person shall tattoo any person under the age of eighteen (18) except in the presence of, and with the written permission of, the parent or legal guardian of such minor. The consent must include both the custodial and non-custodial parents where applicable. (B) Prohibition on License Transfer. The license granted under this Chapter is for the operator and the premises named on the approved license application. No transfer of a license shall be permitted from place -to -place or from person-to-person without first complying with the requirements of an original application, except in the case in which an existing non -corporate licensee is incorporated and incorporation does not affect the ownership, control, and interest of the existing licensed establishment. (C) Hours of Operation. A licensee under this Chapter shall not be open for business for tattooing and/or body piercing before 7:00 AM nor after 11:00 PM. (D) Licensed Premises. The tattoo and/or body piercing establishment license is only effective for the compact and contiguous space specified in the approved license application. If the licensed premises is enlarged, altered, or extended, the licensee shall inform the Issuing authority. No person shall engage in the practice of tattooing at any place other than the place or location named or described in the application and license. A separate (C) MONTICELLO CITY ORDINANCE TITLE III/Chpt 14/Page 7 room shall be required for body piercing and tattooing services. The applicant shall submit a drawing to scale of the tattoo/body piercing facilities. (E) Effect of License Suspension or Revocation. No person shall solicit businesses or offer to perform tattooing services while under license suspension or revocation by the City. (F) Maintenance of Order. The licensee shall be responsible for the conduct of the business being operated and shall at all times maintain conditions of order. (G) Employee Lists. The licensee shall provide to the Issuing Authority a list of employees including operators who perform tattooing at the licensed establislunent and shall verify that each employee has received a copy of Sections 10 and 11 of this Chapter. Each operator shall submit evidence of apprenticeship of at least thirty days under a licensed tattoo artist. (H) Liability Insurance. All licensees shall have at all tunes a valid certificate of insurance issued by an insurance company licensed to do business in the State of Minnesota indicating that the licensee is currently covered in the tattoo business by a liability insurance policy. Such insurance shall be kept in force during the term of the license and shall provide for notification to the City prior to terminating or cancellation. A certificate of insurance shall be filed with the City. The minimum limits of coverage for such insurance shall be: 1. Each claim, at least two hundred thousand dollars ($200,000). 2. Each group of claims, at least five hundred thousand dollars ($500,000). 3-14-11 HEALTH AND SANITATION REQUIREMENTS: No person shall engage in the practice of tattooing and/or body piercing at any place in the City without complying with the following regulations: (A) Lavatory Requirement. Every place where tattooing and/or body piercing is practice shall be equipped with an adequate and conveniently located toilet room and hand lavatory for the accommodation of employees and patrons. The hand lavatory shall be supplied with hot and cold running water under pressure; shall be maintained in good repair at all times; and shall be kept in a clean and sanitary condition. Toilet fixtures and seats shall be of a sanitary open front design and readily cleanable. Easily cleanable, covered receptacles shall be provided for waste materials. Every lavatory facility shall be provided with an adequate supply of hand cleansing compound and single service sanitary towels or hand drying devices. �C) MONTICELLO CITY ORDINANCE TITLE III/Chpt 14/Page 8 City Council Agenda - 08/26/02 11. Consideration of adoption of amendments to the Comprehensive Plan for the City. (JO) REFERENCE AND BACKGROUND Last year at this time the Planning Commission and City Council authorized initiation of a comprehensive plan amendment process that is now approaching completion. Council is asked to review the documentation assembled via the public review process, review the proposed draft of the comprehensive plan and guide plan and consider adopting the text and guide plan as an amendment to the comprehensive plan. As you know, the plan results from considerable input from the City Council, HRA and Planning Commission at the beginning of the process followed by input provided at two open house events, a formal public hearing and a special joint meeting of the various city commissions. As you know there are a number of issues addressed by the plan but a particularly hot topic included questions regarding provisions for industrial and commercial land areas. A major concern of the Economic Development Group (IDC/HRA/Chamber of Commerce) was establishment of a plan that would assure short and long term supply of developable industrial/commercial land. The Planning Commission listened to the Economic Group's comments and made some adjustments to the narrative affecting the Gold Nugget parcel. In the end after a discussion of the options for identification of industrial and commercial land it appeared that the Economic Development Group generally supported the location and supply of industrial land as identified in the plan, however an aggressive strategy for making the plan come true needs to follow the planning process. The Planning Commission understood the concerns expressed by the Economic Development Group and noted support for convincing the City Council of the need to make investments in infrastructure necessary to support the long term economic development of the City. The following agenda packet to the Planning Commission provides a listing, A -I, of various issues discussed at various forums. These items were addressed specifically by the Planning Commission and should be reviewed also by the City Council at your discretion. ALTERNATIVE ACTIONS 1. Motion to adopt, or modify and adopt, amendments to the Comprehensive Plan as recommended by the Planning Commission. Motion based on the findings identified in the Planners report. 2. Motion to deny adoption of the proposed amendments to the comprehensive plan. STAFF RECOMMENDATION Staff recommends alternative 1 and suggests that the budget setting process include development of a strategy for development of infrastructure and road system improvements necessary to support the plan. S UPp0R TI P/ NG ID TA annin I'na p and �ColnlnlsslOn city Planning COM o Porting to agenda itel cOu,Icl� A �oianning C°,mmission 7t• n from 8/610 9ej?d a ^ 08126102 plan t 114&et- S Issl °n I n utes Of 8/6/ Which includes 0 Let nIng Con Umrnal y a Utes of �/2 02 des a Pro Quest from Ken I ssl on ager d memo to 02 P°sed land use lona e Kjellb da an Cit C e guide raft gr1 y 1 r for dick erg o f 4/19 minutes o f guide C 1anning Co plan ofd I'le /02 -'/7/02 °f 6/12/02 pl � meats 1 e mission Ini9/02 nin I ved nutes planning w °Inmiss . t open hOuse 118102 °rkshoP a 17 mutes o 1 da an f 2/4/01 d minutes of 9/18/01 2 Planning Commission Agenda - 08/06/02 9. Public Hearina: Consideration of an Update to the City_ 's Comprehensive Plan. Applicant: City of Monticello. (NAC) A. Reference and BackLyround. Attached is a revised draft of the update to the City's Comprehensive Plan. As noted in the text section of the attachment, the plan is intended to supplement, rather than replace, the existing plan. Comments from the various meetings and workshops held on the plan have been considered and the text and map have been adjusted to address those comments. B. Alternative Actions. Motion to recommend approval of the Comprehensive Plan amendment, based on a finding that land use planning for the extra -territorial areas needs to be addressed prior to the consumption of the City's available development land. 2. Motion to recommend denial of the amendment. based on findings to be developed at the hearing. C. Staff Recommendation. Staff recommends approval of the plan amendments. The issues have been discussed in several forums, and the plan has been adjusted to take those discussions into consideration. At this time, the following items should be considered specifically, based on comments that have been received throughout the process: a. Limits of growth to the east. b. Limits of growth to the southeast. C. Inclusion of the Urban Mixed Use designation in the southeast area. d. Discussion of industrial uses in the Gold Nugget area. e. Provision of buffer open space along major highway corridors. f. Inclusion of the Urban Mixed Use designation in the southwest area. g. Discussion of allowable industrial uses in the West area. h. Provision of other industrial land designation in the Highway 25 corridor. i. Focus on the interchange recommendation for Orchard Road. D. Supportinc Data. Comprehensive Plan Update and Map Monticello Extraterritorial Growth Ilan - 6/06/-02 Draft Background and Purpose This document serves as narrative support for the land use mapping being considered as a part of the Comprehensive Plan update. The City of Monticello has developed a proposed land use plan for an extraterritorial area that includes land far beyond the for ese%.1CA period. The purpose of this exercise is to develop a basis for projecting roadway and other infrastructure needs, and to protect corridors for those needs to accommodate the future City boundary. This update is developed as an addendum to the previous 1995 Plan, adding or adjusting in the extraterritorial areas, but leaving the bulk of the current Plan in place. Often, a land use plan uses a 20 year time horizon as its planning framework. However, the limitations of this period can be seen in the conflicts created when the interest in annexation and extension of utility services does not exactly match the demands for growth in either pace or location. A longer planning period is also suggested by the expected lifespan of infrastructure development - usually forty years and often much longer. This longer time frame also reflects the previous Orderly Annexation Area that was established about thirty years ago. At that time, the OAA boundary line was placed well out from the foreseeable growth boundary. The advantage of this strategy allowed the City and Township to work together on growth issues without an immediately pressing deadline on saturation of the available development land. This plan follows the same strategy. It should be noted that this update is not seen as promoting any particular annexation strategy. Regardless of the annexation path followed by the City and Township, this Plan is intended to establish the land use pattern for development once annexation occurs. Goals of the Plan Update To address these growth issues, the City intends, through this document, to establish an extraterritorial growth line that incorporates planning and land use objectives of the City far out into the future. The graphic plans that this document supports are developed around the following goals: 1. Allocate land uses in a way that supports all types of growth, with the opportunities for the City to maintain a long-term balance of land use demand, land supply, and housing choice. This goal is intended to ensure that the City has provided adequate land and growth area, in locations that are appropriate for each particular land use, for a full range of commercial, industrial, public, and residential development. Page 1 An undersupply of any category can have impacts on the market, and on the long term growth of the community. Because all land uses are interrelated, it is not possible to grow in one category, but ignore another. Moreover, each type of land use requires certain physical landscape and locational factors that help to create successful, sustainable development. The City needs to plan for adequate land area, infrastructure that can, efficiently meet capacity needs, and locations that are compatible with the requirements of the development in each land use category. 2. Develop a transportation system that supports the growth of the City, and protects transportation corridors in areas now to avoid later conflict over corridor expansion. Critical to any growth plan, more than any other factor, is convenient, accessible transportation opportunity. In Monticello's Comprehensive Plan Update, this goal will primarily refer to roadway planning, although transit is not to ignored as time and market justify. Central to the strategy behind this plan is the ability to define its primary transportation corridors at an early stage in the City's growth. This identification will help the City plan for both the location and physical layout of all types of development without later compromising the quality or quantity of development as the community, and the traffic levels, grow. 3. Preserve, to the extent possible, a visual connection to the rural areas of the surrounding township land, and maintain the small-town physical environment, even as the community grows into a regional center. One of the most common concerns heard from members of the community when discussing future growth plans is the fear that the growth will result in a loss of the small-town environment. It is also recognized that this environment is one of the very factors that fuels residential growth in the area. To combat this problem, the City plans to limit growth adjacent to the major road corridors, preserving views of the countryside even while more remote areas may be absorbing significant urban growth. 4. Provide for an opportunity to protect future urban areas from interim encroachment by non -urban uses. Inherent in planning for long-range land use is the need to Page 2 create a system that effectively avoids development of the area prior to the availability of urban services, including roadways, sewer treatment, and water supply. The City and Township have historically accomplished this through the use of an Orderly Annexation Area, and the operation of a joint planning board that regulated land use and development in the OAA. Regardless of the form of .regulatory oversight for future land use, the City and Township will need to work together to avoid short-term conflicts with the Plan. Such a cooperative effort is beyond the scope of this Update, although it is anticipated that this Plan will establish the groundwork for any agreement into which the two governmental bodies enter. 5. Facilitate opportunity for land owners to recoup increasing land values in ways that complement the City's growth boundaries. This goal statement acknowledges that land use planning can have differential impacts on prospective property values, particularly where the City seeks to permit development in some areas, and preserve open space views in others. One of the objectives of the City's planning efforts is to seek ways in which owners of land that are preserved for open space can realize some of the anticipated value increases that accompany urbanization. 6. Provide a framework to identify major infrastructure needs early to support the City's land use planning and growth demands. This goal may state the central purpose in development of the plan at this time. Because the City has seen significant growth in the past ten years, planning for current development is including consideration of the needs for infrastructure (including streets) in areas that are outside the boundaries of the previous planning area. Delaying decisions relating to future growth and land use patterns will have detrimental effects on the costs of providing services to the community in the future. 7. Communicate the desire to grow in an orderly, contiguous fashion, and set a foundation on which a renewed relationship with the township can be based. As noted in previous statements, this Plan is not an annexation plan or implementation strategy, it is a land use Page 3 plan. This plan can form the foundation for other efforts, however, including planning for infrastructure, and cooperative efforts between the City and Township. At the heart of this plan is the objective of providing an orderly growth plan for the City of Monticello that provides adequate area for long-term City development, and also provides assurance to the Township that the City seeks orderly growth and not undisciplined territorial expansion. The terms of the City's previous Orderly Annexation Agreement with the Township provided for annexation as the City needed to accommodate land, contiguous to the City boundaries, and that was likely to be served and developed in the near term. This plan extends the endorsement of those themes because of the efficiency they lead to in the provision of services requested by private landowners. Land Use Patterns The land use plan focuses on extraterritorial areas, generally. However, there are certain locations within the current City boundaries that merit some attention. As a rule, areas within the City are expected to continue their historical land use pattern. The most notable exception would be the County Highway 18/Interstate 94 area. This area has been planned primarily for industrial land uses on both sides of 1-94, with limited areas of commercial land use. With an expectation that a full interchange will soon be constructed at this location, however, commercial uses are now more viable. There will be only limited impact on the south side of the freeway, but the north side should support the opportunity for larger -scale commercial land uses. In discussing this issue with affected landowners and developers, the interchange design has been developed to reflect the most intense commercial development in the northwest quadrant of the interchange. Ramps would occupy the northeast and southeast quadrants. The southwest quadrant is already zoned for commercial uses. Land use planning in the extraterritorial areas include the following: a. Northeast Area. This area includes land that is adjacent to both City and Township residential areas, and in some places borders the freeway. This area is guided in the plan for low density residential land uses, although there is an expectation that in larger areas, some examples of medium density housing styles will be considered when the overall density in no greater than three units per gross acre. The City will apply a two-pronged density standard when considering attached housing styles. As noted, no more than three units per gross residential acre will be considered. In addition, a standard of no more than four units per net developable residential acre will also apply. Finally, the City Page 4 will consider attached housing in low density areas at its discretion - the predominant (and sometimes sole) land use pattern is expected to be single family homes. The northeast area is able to be served by City utility services, but the plan intends to limit growth in this direction to preserve utility capacity for downstream relief, and to encourage a growth pattern that is more westerly in direction. Some utility improvements being planned, and WVI;i;e arguably illcreaslfllg capacity to this area, they are primarily intended to add reserve capacity in areas where bottlenecks already exist in the system. It is anticipated that rural residential uses would be reasonable beyond the boundaries of this planning district. Expected zoning districts to be incorporated into the development of this area include R-1, R-2, and R -2A districts. R -1A has not been programmed here at this time due to proximity and exposure to the freeway of most of the developable land. A final issue in this area is the anticipated expansion of the Interstate 94 corridor, and MnDOT's realignment of the curved overpass over the Burlington Northern Railroad line. These projects will affect a portion of the lands north of the freeway, and the City expects to work with the developers and MnDOT toward a reasonable plan that accommodates the needs of the highway system. b. East Area. South of the freeway, the limitations of sewer service, existing development and other factors create another natural edge for urban expansion. Some areas include well -wooded land and hillside areas that lend themselves to higher -end housing opportunities. Other areas would be expected to be entry- level to mid-range in housing costs. An emphasis on natural feature preservation will be important in this area, including capitalizing on view opportunities where they are available. Expected zoning in this area would be R- 1, R -1A, R-2, and R -2A. Density levels would be below three units per gross acre, as calculated above. Again, no guarantee of attached housing, or the maximum density, is made under any designation. One of the aspects of development in this area will be preservation of a natural landscape view from County Highway 18. New development in this corridor will be expected to be setback and screened with a natural landscape buffer to minimize the impression of urbanization in this area (as described in Goal 3 above). C. Southeast Area. The southeast portion of the planning area lies between the Monti Club Hill and Pelican Lake. County Highway 37 borders the north shore of the lake, and would serve as the primary south boundary for the planning area. Much of this area is designated "Future Growth Area", and does not have a density or land use label attached. However, it is expected that the bulk of these areas would be dominated by low-density residential development. One of the Page 5 primary issues will be enhanced protection of Pelican Lake, both in water quality and preservation of a natural edge to the shoreline. Development in this area will need to accommodate an added level of stormwater and landscape management into any urbanization design. An exception to the land use designation is the area around the intersection of County Highway 37 and Fenning Avenue. This area is seen as a higher -density development area, perhaps with a fluxed pattern of townhouses, some commercial, and mixed use buildings. As noted above, a broad band of open space should be incorporated into the plan to protect the shoreline of Pelican Lake. Density in the district is not designated at this time, due to the long period of time before this area would become urbanized, however, typical suburban single family home development would not be expected in the core of this area. With regard to zoning, this area would lend itself to a more classic use of Planned Unit Development under a common design. Rather than break the area up into several sub -districts, an integrated planning approach to the entire mixed use area would enable the City to consider the site as a single project, and evaluate the sum total of the impacts, rather than parcel -by -parcel. As a result, subdivision approval to smaller tracts should be only be considered when they can be justified under a common development scheme. Without this plan, such subdivisions may be considered premature. d. South Area. The land south of the current City limits includes the "Gold Nugget" property and other land between 85th Street and County Highway 37. The Gold Nugget property is guided for a combination of one third office -industrial, and two thirds residential. The residential portion is seen as a mixed density project, with overall densities at three units per gross acre. The office -industrial area is projected to be a mix of lower -impact manufacturing, office, office -warehouse, office -showroom and other similar land uses. To support the transportation network in this area, an extension of Cedar Street is planned to continue south. from School Boulevard to connect to 85" Street through this area. This roadway may take the form of a frontage road, or a service road serving development on both sides, depending on engineering and routing issues. South of 85' Street, the plan has designated the area for Future Growth, without listing a specific land use pattern or density. vie of the features of this area is that urban development is intended to be buffered from Highway 25 by up to one half mile or more on both sides. The actual buffer distance may vary based on the sight distances from the highway, the practicality of maintaining farm or open space in particular areas, property boundaries, and other factors appropriate to the location. This concept is intended to reinforce the feeling that Monticello retains a connection to the rural areas surrounding it, and to help make the community feel smaller than it is or will be. A system of development rights and credits could be established to compensate land owners in this area for the Page 6 I1 plan's prohibition of development in the Highway 25 corridor. A similar plan is proposed west of Highway 25, with an office -industrial area mirroring the Gold Nugget development, and residential uses expected elsewhere. A buffer zone is planned south of County Road 106 as well, keeping the Future Growth Area one half mile from the Highway corridor. Thornhnc- hr1r n r - -+ *, 1.. 1 1-1:_1_:._ _._ r 11V1 V 1 IGJ I.Jccl I JUI I IC it interest III est UlIS(IIf 1(� dfl area Tor a City -Owned Industrial development south of County Highway 106 in the "Future Growth Area". The Land Use Plan reflects the proposal that the majority of new industrial is focused to the west along Chelsea Road and its future extension. The advantages to the establishment of industrial in the south area as suggested primarily relates to the ability of the City to purchase and develop the area using existing road infrastructure, although several roadway improvements would be necessary to accomplish the project. Such a project would also require an extension of sanitary sewer and water lines, currently about a half mile away or more. Disadvantages to this location, as with others in the Highway 25 corridor, relate to the loading of new industrial trucking traffic in what is programmed to be the primary commercial corridor to the interstate. In addition to traffic conflicts in the corridor itself, large levels of new truck traffic will continue to increase traffic problems at the Trunk Highway 25/Interstate 94 interchange which already experiences significant congestion. e. Southwest Area. The southwest area is a region of significant changes in land cover and a mix of existing development, agricultural uses, and natural features. The plan anticipates a preservation of the natural areas, using them as amenities for both private development and public view. Some public recreation would be programmed for areas that are encumbered by utility easements. The City intends to develop a community park with athletic fields in this area, taking advantage of the utility corridors to accommodate the need for parking and support activities for the park uses. An area of higher density mixed use development is shown in this plan around the intersectiU—n of 90th Str eet and the extension of School Boulevard. This land use would be similar to that described for the County 37/Fenning Avenue area in sub -section c. above. Other land uses include attached residential housing, and limited commercial. Zoning districts in this area could include all of the City's residential districts and a mixed use district to be established. Residential density would likely range between six and fifteen units per acre in the attached housing and mixed use areas, with densities below forjr units per acre in the remainder of the area. f. West Area. Extending Chelsea Road to the west and north is the feature of this area, creating a parallel south collector street. Chelsea would serve primarily higher intensity uses, including commercial and industrial uses. North of County Page 7 Highway 39, Chelsea Road would serve as a dividing boundary between residential uses along the border of Silver Springs Golf Course, and industrial uses along the interstate highway. The plan discourages residential uses along the highway where possible. Broad green spaces and landscaping buffers are programmed to help separate existing residential areas. The City is considering an allowance for limited levels of commercial development to o :cur aio ng i-94 south of County 39. Because Of the Increased commercial activity along Chelsea Road, demand for expansion of this use may exist. However, the City has also invested in protecting the Highway 25 corridor for commercial uses, and any expansion of commercial in this area should be considered as to its impact on other areas. g. Northwest Area. This area is dominated by industrial uses that would be developed in concert with an interchange at Orchard Road. This area would take advantage of both the freeway exposure and the natural tree cover to create a higher end commercial/industrial park. A new interchange in this area will minimize truck traffic impacts on either the existing developed areas or the traffic conditions at Chelsea Road and Highway 25. From an implementation strategy perspective, the City has been considering the acquisition of land for a City -owned industrial park. An alternative economic development option for consideration would be an aggressive capital plan to fund the construction of the Orchard Road interchange. The location has recently been included in MnDOT's plan for 1-94 (albeit without funding or schedule). However, it is possible that a plan for the construction of this interchange over the next several years (as other privately owned industrial land is absorbed) will pay off in better access to the interstate, more valuable land due to that access, and a supply of industrial land that could not be duplicated in any other corridor in the City - particularly without the disruption other industrial areas would create for commercial areas, schools, and residential neighborhoods. h. "Permanent" Rural Areas. Outside the boundaries of the planning area, the land use Is proposed to be labeled "Permanent Rural Use". Although it is anticipated that at some point in the future, the boundaries of the City's planning area will need to be reevaluated, any development in the Permanent Rural area would be well beyond the foresight of this plan. The proposed planning area, in fact, encompasses much more land than the City's utility services are able to treat. As a result, other major infrastructure changes will be necessary even to serve the identified districts. Summary The proposed plan is established to help establish roadway needs and issues, and to create a framework under which both the City and the Township might work, with the Page 8 �1 goal being that orderly planned growth can occur without Township fear that land will be annexed before it is needed, and without City fear that administrative opposition will interfere with the timing and process of development and growth. The City and the Township would need to work together to protect the areas for future development shown on the plan. Page 9 I r — L - - � Low Density Residential Expansion Area Low Density Residential (R-1) Future Land Use Objectives: Low Density Residential (R -1A) Medium Density (attached hsg.) * Allow for a mix of land uses * Preserve and protect natural resources _ �] Urban Mixed -Use Provide road system to support growth 0 Commercial * Retain rural character and a small town feel Use existing amenities (i.e. views, lakes, trees) Industrial to enhance development �] Open Space * Prevent sprawl by encouraging compact development pattern Mobile Home Park Planning Commission Minutes - 08/06/02 9. Consideration of adoption of amendments to the Comprehensive Plan. Steve Grittman, City Planner, provided the report and stated that rapid growth had led to this update and feels this plan will get a land use pattern in use so that engineers can make calculations for long term planning. He advised of a number of meetings and workshops that were held and many comments were received from interested people. Grittman advised of comments received that should be considered by the Planning Commission including limits of growth to the east and southeast, inclusion of the Urban Mixed Use designation in the southeast and southwest areas, discussion of industrial uses in the Gold Nugget area, provision of buffer open space along major highway corridors, discussion of allowable industrial uses in the west area, provision of other industrial land designation in the Highway 25 corridor, and focusing on the interchange recommendation for Orchard Road. Grittman advised that there had been quite a bit of discussion initially regarding the provision of buffer open space along major highway corridors and advised that this should be looked at as well as industrial land designation. There is a land use pattern designated in the new map and they are also looking at the focus to the northwest area U Planning Commission Minutes - 08/06/02 and the need for access to the interstate. Grittman advised that they are trying to avoid industrial development in the Highway 25 corridor due to congestion with truck traffic and retail traffic, and encouraging it to the west. Grittman felt that the City would be better off investing in infrastructure versus an industrial park as the City has limited access to interstate. There would be an increase in property value in that area which would pay off the infrastructure development. Chair Frie opened the public hearing. April Studer, Chamber of Commerce representative, advised that there has been a lot of discussion by business owners that the corridor on Hwy 25 is a prime retail spot, and they suggested possibly going south on Hwy 25 for a distance, then laterally which would be a good area for retail and commercial. It was clarified that they were not suggesting to take any industrial land out, just not having a half mile of green space. Susie Wojchouski, Chamber of Commerce Director, also clarified their concern to keep an area for retail potential. Smith asked about their thoughts on industrial land available and Studer advised that if the City was looking at putting in infrastructure they felt that would be a good direction to go. Wojchouski added that access was also important and felt that would be a good route as well. They liked the idea of more commercial also. Chair Frie then closed the public hearing. Dragsten stated some of the comments seemed to state industrial was a more immediate need, not a future need, and wondered if this was the direction versus the Chadwick land. O'Neill stated it would depend on the annexation question which they may not know until sometime in September, and that the Chadwick parcel is immediate. Retail could be allowed in that area if desired with industrial on the other side which was proposed for manufacturing as well. But the discussion was that by allowing retail in that area we would be deleting some of the industrial land, but also if it is the best use of the land, they felt that should be their direction. It was stated the net acreage is approx 90+ acres and O'Neill added that the Gold Nugget piece could also be looked at. If MOAA is victorious, that opens up the whole area for industrial. He also added marketability stating that land is tied up with owners who are asking a large amount of money for their sites. Frie stated he liked that the comprehensive plan is intended to supplement. He also felt that everyone has had the opportunity to comment on the plan and they have given a great deal of input and feels comfortable in advancing the plan to the City Council, keeping in mind that the Planning Commission can review this a year from now, based on results of the courts. The Chamber representatives were in agreement as well. Frie also stated the comp plan has to be flexible. Carlson added that he felt Co. Rd. 118, when the freeway is completed, will explode in retail/commercial and Grittman agreed and stated there is land designated to the south of the freeway as well. O'Neill noted other sites available for commercial use on the south side of Hwy 25, feeling they are ready for the big box users. Herbst agreed with the Planning Commission and staff, and that the comp plan can be Planning Commission Minutes - 08/06/02 flexible. Frie asked about the MnDOT project east of town, regarding the Bruggeman property, and O'Neill advised that there is a meeting coming up on August 15)" at 10:00 a.m. at City Hall. A MOTION WAS MADE BY RICHARD CARLSON TO RECOMMEND APPROVAL OF THE COMPREHENSIVE PLAN AMENDMENT, BASED ON A FINDING THAT LAND USE PLANNING FOR THE EXTRA -TERRITORIAL AREAS NEEDS TO BE ADDRESSED PRIOR TO THE CONSUMPTION OF THE CITY'S AVAILABLE DEVELOPMENT LAND. ROD DRAGSTEN SECONDED THE MOTION. There was further discussion by O'Neill stating they will provide this report, as well as all other information to date, to the City Council for their review. The public will be able to speak at that time as well. Frie asked if we are holding developers off by not acting on this. Dragsten asked if this would be coming back in October if legal matters are not resolved. O'Neill stated the Planning Commission could review this at any time on their own, possibly on a regular basis. He also added that Planning Commission could motion to recommend the City Council move forward on the Orchard Road completion. Frie stated that Clint Herbst, Council Liaison, could bring that to the City Council. Herbst added that he agreed with Grittman that if we want to have land available or add infrastructure, we should look at that to be able to bring developers in. It was asked if the Planning Commission would like to designate dollars to add infrastructure. Herbst questioned which the Planning Commission wanted to do, infrastructure or purchase industrial land. Chair Frie then amended his motion to designate money for infrastructure. He then rescinded his amendment. Grittman stated that they would look at this as a follow-up and possibly staff could give a strategic outline to compare on all items. He added that the Planning Commission could direct staff to weigh the options regarding the value of adding infrastructure versus the purchasing of industrial land. There was no further discussion. MOTION CARRIED UNANIMOUSLY. A MOTION WAS MADE BY ROD DRAGSTEN TO DIRECT STAFF TO CONSIDER OPTIONS ALONG THE HIGHWAY 25 CORRIDORS AND ORCHARD ROAD. RICHARD CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. R Planning Commission44ta-�67/02/02 10. Consideration of adoption of amendments to the Comprehensive Plan. Jeff O'Neill provided the staff report stating that staff is seeking the Planning Commission's input regarding the proposed amendments, but that they do not have all the language in place at this time. It is staff's hope that this will be addressed at the August meeting. O'Neill also provided a summary of the joint meeting held in June. Frie stated that he felt the j oint meeting was constructive and highlighted some of their goals. He also felt the major topic at that meeting was acquisition of industrial land and his concern is that the end result was designating a specific area for industrial land of 200 acres. He is in favor of acquiring industrial land, but does not feel that they should designate it or pinpoint any one area. He is in favor of staff putting together the language. Robbie Smith added that he felt from the meeting that the best place for industrial land was northwest and that would be where the city could focus on if the interchange were to be in place. He is interested in hearing what the economics would be to pursue the interchange. It was also advised that the Chamber agreed that the northwest area was the focus for industrial land. The negative was getting the freeway interchange in place and the dollars to do that. O'Neill added that getting utilities to this area as well would be difficult and costly, but added that the city may be able to pursue this by assessing benefitting properties which would help to pay the utilities. Smith asked about the city taking the 200 acres south instead, stating that there would already be utilities in place. He also asked about south being a temporary solution, but still driving toward the northwest. Herbst also feels the city should acquire industrial land and stated that they could re -zone land at a later time if necessary, although he doesn't see where the city would come up with the money to purchase 200 acres at this time. Dragsten also felt an urgency for more industrial land now rather than 10 to 15 years from now. O'Neill stated the city is creating the same amount of industrial land as they still have the Gold Nugget piece that could be acquired for industrial. They also stated a concern with only one developer controlling the industrial land and O'Neill stated that this may be good in the long term as larger industries with higher paying jobs would be more likely to purchase the higher priced land. Dragsten stated they should not be looking long term, but should acquire property before the land prices go up further. Grittman added that between Chadwick, Pfeffer, Gold Nugget, and the land across Hwy 25, the city has about 300 acres which would support 3.2 million industrial space. He also felt that Hwy 25 is not the right spot for industrial land and would have a negative impact on the commercial businesses there. A MOTION WAS MADE BY DICK FRIE DIRECTING STAFF TO PREPARE ADDITIONAL LANGUAGE OR GRAPHICS SUPPORTING CONCEPTS AND GOALS DISCUSSED AT THE JOINT MEETING. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. -13- Summary of conclusions at Joint Planning Meeting - 6/12/02 HRA input from Brad Barger focused on clarifying language governing industrial uses in the Gold Nugget industrial area. He also discussed the importance of city ownership of an industrial area. IDC comments summarized in Dick VanAllen's report. Chamber of Commerce likes idea of industrial land acquisition/development of large industrial area south of Gold Nugget. Likes access to highway 25. The following summary represents a general consensus at the meeting. Comprehensive Planning Points The language describing the industrial district at the Gold Nugget site needs to be adjusted to allow a wider variety of industrial uses. 2. The City should consider designating an area for industrial development south of the Gold Nugget area. The area designated should be 200 acres or more. Economic Development Points 1. The City should attempt to gain control of land for industrial development. Locations could include. A. Northwest area B. Area south of Gold Nugget C. Chadwick area Revenue for the acquisition could come from the sale of the City/Remmele Parcel 2. The city should build developing a finance/capital plan for development of the interchange at Orchard Road. The finance plan could include a combination of assessments against benefitting properties and development of sinking fiend via general tax levy. Development of infrastructure is as critical as ownership of land. MONTICELLO MEMO TO: All City Commissions and Industrial Development Committee Members FROM: Dick Frie, Planning Commission Chairman DATE: May 28, 2002 RE: Special Joint Meeting of City Commission to Review Draft Comp Plan Amendment Some months ago, the Monticello City Council and Planning Commission initiated a comprehensive plan amendment process and later approved a draft amendment for review and comment by the public. The review and comment process included a special open house and a public hearing. Through this process, the City has received a number of comments from groups and individuals regarding the plan which have been responded to via incorporation into the plan or via various staff reports. In an effort to enhance the public review process, the Planning Commission is conducting a special "joint meeting" of the various cit` - commissions. The Industrial Development Committee is also invited. The special meeting is scheduled for 7:00 PM, June 12, 2002 at the Community Center (Mississippi Room). Please plan on attending this meeting as it is another great opportunity for individuals and commissions to provide information to the Planning Commission as it formulates a recommendation to the City Council. Attached is the most recent staff report, draft extraterritorial gro�i�rth plan and a copy of the long range land use map.. Attachment: Staff Report Draft Extraterritorial Growth Plan Land Use Guide Plan Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, MN 55362-8831 • (763) 295-2711 • Fax: (763) 295-4404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 • (763) 295-3170 • Fax: (763) 271-3272 Planning Commission Agenda - 05/7/02 13. Public Hearing: Consideration otan amendment to the City's Comprehensive Plan and future land use quide plan. Applicant: City of (Monticello. (NAC)/JO A. Reference and Background. Th (`4%1 k -,n hi,i r ,.— 1.; 4—.... 4 4-L,.. ,.1,.., I r I r i I I Ic VILy I icaJ tJcc1 I vVv1 NII ly IVVVQI U U IC UCVCIVfJI 1 let ll of a revised ruture land use pian that would address areas beyond the current boundaries of the City. As growth has accelerated over the past few years, available development land has been consumed, and project proposals are beginning to encroach on the edge of what has previously been used as the boundary for the orderly annexation area. In order to plan for future transportation routes, land use planning, and utility service areas and capacity, a draft long-term growth plan has been formulated. This plan has been reviewed in concept form by staff and City officials, and has been presented at a public open house for review and feedback. Several of the affected landowners were present, and had the opportunity to provide information about their property, and to question City staff and officials as to the impacts of the concept plan. In general, feedback received has been positive, with the majority of input being in the form of questions of clarification. There have been a small number of property owners who have sought to be included in the long-term growth boundary, and a few others who would prefer different land use designations on their land. Below, we have summarized comments received that have requested changes in the draft plan, or questions raised that could affect the overall concept. 1. At the east edge of the growth area, a landowner has requested that the City include an additional 80 acres of property within the growth boundary. This area was excluded in the original draft due to the likelihood that the only probable land use is some form of residential, with a significant exposure to 1-94. Because attached housing is likely to comprise the majority of the City's mixed use development and original plat redevelopment, staff limited the expansion of the City in this area to minimize (+(lmnetlt1 n with these other atf ch rI hn1 lcinr, orn-no +ka+ mini 11,1 r+f-4 c-, i�fr,r r -....o. ay.,eu II a. „,,,� ul`.GJ II IGI VV\./U U IIkJL 0UIII--I from the I-94 exposure. 2. In the southeast portion of the growth area, a landowner has requested that an additional 40 acre parcel be included. The parcel abuts the east boundary line of the "Hermes" property and has exposure to County 18. The property is generally wooded. Staff discussion has been to limit expansion of the City to the east, and maintain a rural buffer for roadway traffic entering the community from this direction. This parcel, however, may provide an attractive location for R -1A housing opportunities, and should be considered for inclusion in the planning area. It also sits at a favorable elevation relative to existing City service line which may make it Planning Commission Agenda - 05/7/02 readily developable with the need for a lift station. 3. Staff from the YMCA have been contacted regarding their interest in being a part of the future development area. The draft plan includes land owned by the YMCA east of the series of lakes at the west edge of the City. The YMCA staff that reviewed the plan expressed positive comments but were careful to note that any decision regarding future development of a portion of the site was in the hands of YMCA policy makers that have not had the opportunity to review the plan. 4. The parcel along the west side of Highway 25, south of the Kjellberg West mobile home community is owned by the Kjellberg group. They have asked that the property be designated for commercial development rather than industrial as shown on the concept plan. Staff would consider this industrial classification similar to that of the "Gold Nugget" industrial area across Highway 25 to the east - a combination of office, warehouse, and showroom space, rather than manufacturing. 5. The Industrial Development Committee (IDC) asked about growth and annexation of property to the north, across the river. Although this concept was explored when the "Bridgeview" residential project was being considered, the expense of extending utilities across the river is great, and a very large industrial user would be necessary to ensure that the expansion was affordable. Even more at issue, from planning staff's position, is that Highway 25 is the only access to this area, and another bridge across the river is even less likely than a new interchange along 1-94. The traffic issues raised by industrial development in this area would cause additional concern for the downtown area. Staff continues to support industrial development to the west, with an aggressive funding plan to create a new interchange as soon as practicable. 6. The IDC asks about the prospects for industrial zoning for the "Remmele" property along Highway 25, now owned by the City. Planning staff is reluctant to recommend this land use, based on the property's location and greater potential for future commercial use. Commercial land is much more sensitive to location, access, a.nd visibility, and eroding the existing supply will compromise the future land use, potentially discouraging additional commercial development. If the IDC goal is to control industrial land as a tool for attracting industry, the City should consider acquisition of land suited for industrial development in accordance with the plan. 7. The owner of land north of the Remmele property has suggested to staff that their property between the Remmele site and the large pond be designated for mid- to high-density residential, rather than commercial as now shown on the land use plan. 'v^"while t his site may provide a site that could support an attractive active residential pr o�ect, staff makes the same comments regarding the long term supply of prime commercial land as in note 6 above. Planning Commission Agenda - 05/7/02 8. The IDC challenges the `Chadwick" PUD plan for a mix of uses, including some commercial as proposed by the developer along the highway. The land use plan calls for industrial (a rather broad term), and the developer's intent is to propose highway oriented commercial uses along the freeway frontage. The Planning Commission should comment on this issue as a part of its review of the Plan Amendment. 9. The IDC also asks about the Planning Commission's opinion of various opportunities that the City may pursue to own and develop its own industrial park, including the Gold Nugget, Remmele, and Chadwick properties. Planning staff has considered this question to be one of implementation strategy, rather than land use pattern and policy. It has been staff's position that an appropriate land use pattern should be agreed upon apart from the issue of whether the City should be the owner/developer of industrially guided land. 10. A common question regarded the meaning of "Urban Mixed Use", a land use category shown in two areas of the draft land use plan. This concept is intended to identify areas where the City may encourage a mix of both attached and detached housing, commercial uses, and support facilities in an urban or traditional development pattern. Although not intended to be a Central business district, the pattern is likely to reflect that type of urban development style. Two areas area designated in this way: One area to the west, near the future intersection of 901h Street NE and the extension of School Boulevard, and one area to the southeast, around the intersection of County 37 and Fenning Avenue, north of Pelican Lake. These areas have been called out separately to distinguish them from what is expected to be a land use pattern that is otherwise dominated by more common residential or commercial districts. As noted, apart from these comments, the open house generated questions, but few other comments affecting the general content of the Plan amendment. The Plan is designed,to encourage growth to the south and west, taking advantage of the natural tendency of residents in these areas to take advantage of Monticello's commercial markets, rather than the commercial areas along the commuting routes to the east. With the exception of the area around County 18 and 1-94, the existing land use pattern is expected to remain the same. This latter area is proposed to be amended from a primarily industrial area to include more potential commercial development north of the freeway, due to the coming full interchange at this location. B. Alternative Actions. 1. Motion to recommend approval of the amendment to the Comprehensive Plan, based on a finding that it provides a reasonable baseline for guiding efficient, Planning Commission Agenda - 05/7/02 coordinated future growth of the City of Monticello. This motion should incorporate any changes to the concept plan to be made pursuant to the discussion in this report or other public testimony. 2. Motion to recommend denial of the Comprehensive Plan amendment, based on a finding that the current plan is adequate to guide growth for the foreseeable future. 3. Motion to table pending input from Monticello township. Although an open house was held, there was no formal presentation to Monticello Township or County officials. C. Staff Recommendation. Staff recommends adoption of the amendment. Since the last plan update in 1995, the City has grown rapidly, consuming much of the planned urban land. The line established in the early 1970s, now about 30 years old, has served the City well, but is no longer able to help direct land use and infrastructure planning decisions being made now that will affect the extraterritorial areas in the near term. The intent of this plan is to provide a long-term framework that will assist in guiding the growth of the City in a logical, efficient manner, and will avoid the consumption of the remaining farmland. In this regard, the plan also seeks to preserve the rural impression of the surrounding areas by holding development back from the highways leading into town, avoiding a stripped development pattern along these thoroughfares. As development grows toward these areas, the City will need to prepare a process for selling and transferring development rights to allow land owners to recoup the value of their land investments. This strategy should also have the advantage of maximizing access management benefits in each of these roadway corridors. These benefits should include easier flow and greater capacity, as well as the opportunity for less disruption of urban development when the roadways need to expand. D. Supportinq Data. 1. Extraterritorial Growth Plan and Map Planning Commission Minutes - 05/07/02 13. Public Hearing - Consideration of amendments to the comprehensive plan land use Ruide plan. Applicant: City of Monticello.. Steve Grittman provided the report stating that the plan has been reviewed in concept form by staff and city officials, and has been presented at a public open house for review and feedback. Grittman summarized the comments received at the open house as well as questions that were raised that could affect the overall concept. Chair Frie opened the public hearing. Dick VanAllen, representative for the IDC, questioned the Gold Nugget property and also why staff had excluded manufacturing from that property. O'Neill advised that he did not believe that they excluded all manufacturing in this area, but perhaps heavy manufacturing. Grittman stated that was true and that they did not exclude warehouse/office. Van Allen then requested that the planning commission declare a moratorium until there was further input from the HRA, EDA, IDC, Chamber, Planning Commission, City of Monticello and any local groups. He suggested the possibility of a Saturday workshop with opportunities to discuss. He felt the city should look at the proposed land use plan and the fact that there would need to be an interchange, as well as problems with serving capacity, which he believes is necessary to recover tax capacity. 011ie Koropchak addressed the planning commission advising that the HRA had made a previous recommendation as presented back on January 8, 2002, to complete an industrial park by the City/HRA, by April 2003. She stated she just wanted to bring that recommendation forward. Frie stated he had met individually with members of some of the commissions and was dumbfounded by the lack of support of the proposed land use plan, stating that many were very disgruntled with what was being proposed. It was a council member who recommended to Frie the same idea of a meeting of the groups to discuss the plan further. Fire asked if the planning commission was locked into a time frame as far as recommending a plan to the city council, stating he would feel more comfortable if the other commissions and the community were more supportive in what is being proposed. Frie asked about the IDC's plan for industrial acquisition and where is the city at with that. O'Neill stated that they agreed it would be great to have land as a tool, but did they want to use the available land up for that purpose. He also stated the city council was in favor of a portion of the Gold Nugget property, as well as the Remmele parcel, to be re- zoned to industrial. Herbst also reminded them that the Chadwick property was initially -13- Planning Commission Minutes - 05/07/02 thought to be industrial and unfortunately that did not work out as first planned. Grittman stated that from land use side, the question should be where should the industrial park be, not should the city have one. Once decided on where it should be, then is the time to decide how to develop it. Grittman stated he wanted to separate the how to do it from the where to do it. He stated that his recommendation would be not to re -zone the Remmele property to industrial as a quick fix, as it is better suited for commercial due to its location/visibility. O'Neill stated that is the purpose of a public hearing, to get opinions and feedback. Carlson stated he felt everyone seemed to have their own agenda, yet they don't come forward. O'Neill asked if the main issue is the industrial side of it, and if that was resolved, would that satisfy 80% of the concerns. Van Allen stated, personally, he felt that may be the case and that he felt that if the city would zone a certain amount of industrial land at a designated area by a designated date, they would be satisfied. Koropchak followed up on a comment from Van Allen, under Grittman's narrative regarding item 4 in staff report. It was stated that zoning does not distinguish between "light manufacturing" and "industrial" at this point. Grittman stated that regarding Gold Nugget, that distinction hadn't been made. The public hearing was then closed. The planning commission felt they would like to have an informal meeting with the commissions stated previously, prior to making any decisions on the comprehensive land use plan. A MOTION WAS MADE BY DICK FRIE TO TABLE ACTION, PENDING INPUT FROM THE MONTICELLO TOWNSHIP, COMMISSIONS OF THE IDC, EDA, HRA, PLANNING COMMISSION AND COUNCIL LIAISON CLINT HERBST, WITH THE UNDERSTANDING THAT THIS IS THE OPPORTUNITY TO FINALIZE AND MAKE AND MAKE RECOMMENDATIONS TO THE CITY COUNCIL BASED ON THE RESULTS OF THE MEETING. ROD DRAGSTEN SECONDED THE MOTION. There was further discussion advising that the various commission should be prepared to show their rationale when presenting at the meeting. O'Neill asked the commissioners if there was anything they felt staff should modify/clarify in the proposed plan prior to the meeting and Frie stated possibly offering options, but also asked that staff come to the meeting with an open mind. Herbst agreed with the meeting and asking for rationale as well. O'Neill stated he would schedule this within 30 days, after each committee has met to discuss. Van Allen questioned having Township representation and Frie advised there was no formal presentation to Monticello Township or County officials. There was no further discussion and the Motion carried unanimously. -14- OM KJELLBERGS INC PHONE NO. : 612 295 2991 Apr, 22 2002 09:35AM P1 %lit (,� i \/ D : 1000 Kjellbergys Park Monticello, MN' 55362 C. .6f lM dticeuo Mt:...T 553orce ua 62. _ •Dear' PlO'n' iin 'Commis We`;appz'ecate the dime and eort spent 1--r-you t'o `ex Iain' to the eneral ublic. our' P.P, general p y. :. bveraHjong-;ianland.use program .Regardiag-tbe land that adjoins our West Park;; stead'.ofiirarin :t1ie industrial land of Golden'Nu et we feel a'inoxe a i'© nate g Nugget • .. pP. R zoiiiig: vouid be, commercial to add contrast; of stores or shopping or other busiriessi§e :r Yf '' .ou:wish: t� contact'us' further lease call at ?63295-2931. T o _ Kent': President' j:.�. : a;. ..: A-Membe'r.�.'Of' The Kj6 lber' Group Since ":1.92 _ 1. 9 9 763.. 295-2931. � fax.(763)2 _ _ . , i' . )9;5®2991 )UES'I'IONS UEVI?LOI'ED 13Y' "1'1-1}�, IDC' I�OIZ j �17 t2► �_ ��- �o THE PL,!-kNNIN(, ('ONIN!1ISSION PI,.,�N ANIENDINJ ;NT) 1. LOOKIN(,',-kl' VIONTIC'EL.LO AS "I,l-i I; }-IU13, WHY DOES "I'IIE 1'LLf1NNIN(: COMMISSION NOT LOOK "l,() ANNEX PROI'ERTN' ACROSS THE MISSISSIPPI RIVER`.' 2. WITH TI-iE INC'IZEASED INTEIZEST TO DEVELOP CONIVIERCIAL T'1`PE BUSINESSES ALONG THE FREEWAY, WHERE. IS THE PLANNING: COMMISSION'S FOCUS FOR INDUSTRIAL? �. ASSUMING NO PROGRESS HAS BEEN NIADE TO ACQUIRE THE GOLD NUGGET PROPERTY BY FALL 2002, WILL THE PLANNING COMMISSION CONSIDER ZONING THE CITY/REVIMELE PROPERTY INDUSTRIAL? IF NOT, THEN WHERE? 4. WITHIN THE NIARKETING PIECE OF THE CHADWICK PARCEL, IT STATES "FLEXIBLE ZONING .=kLLOWS FOR COMVIERCIAL, INDUSTRIAL, AND RESIDENTIAL USES". DOES THE PLANNING COiJNIMISSION SUPPORT THIS MIX OF USES? �. 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ON I� Q Wf [ t � �O �l p�CIO. 1� ;"/`q•�Vy cw/ el V 1 U � C3 7-0 J N � eq O tCommercial Development Scenario Monday, May 139 2002 IDC Members — From Dick Van Allen State 25 Buffalo to Monticello 2004 scheduled for widening to four lanes. Monticello to Big Lake 2006 scheduled for widening to four lanes Big Lake Hi -way 10 Bypass — Say 2010 now in the talking stage — anticipated to pass between highway 10 east of Big Lake to the Airport road. Anticipate commercial Big Lake deve opnnent bel een Big Lake and Monticello with a Forth — South draw Tromrn Decker, BT c, Lake and Monticello and Commercial development along highway 25 between Big Lake Monticello. Consider: o Weaver Lake Road 194 development over the past five years 0 Rogers 194 development over the last three or so years commercial and industrial a Albertville —1 94 development, the mall and ... o St. Michael — Monte 19 & Route H8 developmment as a regional hub. o Monticello —194 0 Clear eater —194 ® St. Cloud -194 development, Commercial /Industrial, What do they have in common? '"'hat is not common between them? The common thing 1 remember is, open land somehow set aside and made. available. b LU Ix 41 1-1 tro a � C V � OW 0.4 b � �a • .moi v �V1 ow va ® 4' 'C 04 �10 a V V �,. P � C,4V ®gam (L)��� 4) tM q 41 1-1 Monticello Extraterritorial Growth Plan - 3/19/-02 Draft Background and Purpose This document serves as narrative support for the land use mapping being considered as a part of the Comprehensive Plan update. The City of Monticello is developing a land use plan for an extraterritorial area that includes land far beyond the foreseeable period. The purpose of this exercise is to develop a basis for projecting roadway and other infrastructure needs, and to protect corridors for those needs to accommodate the future City boundary. Commonly, a land use plan uses a 20 year time horizon as its planning framework. However, the limitations of this period can be seen in the conflicts created when the interest in annexation and extension of utility services does not exactly match the demands for growth in either pace or location. A longer planning period is also suggested by the expected lifespan of infrastructure development - usually forty years and often much longer. To address this issue, the City intends to establish an extraterritorial growth line that incorporates planning and land use objectives of the City far out into the future. The graphic plans that this document supports are developed around the following goals: 1. Allocate land uses in a way that supports all types of growth, with the opportunities for the City to maintain a long-term balance of land use demand, land supply, and housing choice. 2. Develop a transportation system that supports the growth of the City, and protects transportation corridors in areas now to avoid later conflict over corridor expansion. 3. Preserve, to the extent possible, a visual connection to the rural areas of the surrounding township land. 4. Provide for an opportunity to protect future urban areas from interim encroachment by non -urban uses. 5. Facilitate opportunity for land owners to recoup increasing land values in ways that complement the City's growth boundaries. 6. Provide a framework to identify major infrastructure needs early to support the City's land use planning and growth demands. 7. Communicate the desire to grow in an orderly, contiguous fashion, and set a foundation on which a renewed relationship with the township can be based. Page 1 +e Land Use The land use plan focuses on extraterritorial areas, generally. However, there are certain locations within the current City boundaries that merit some attention. As a rule, areas within the City are expected to continue their historical land use pattern. The most notable exception would be the County Highway 18/Interstate 94 area. This area has been planned primarily for industrial land uses on both sides of 1-94, with limited areas of commercial land use. With an expectation that a full interchange will soon be constructed at this location, however, commercial uses are now more viable. There will be only limited impact on the south side of the freeway, but the north side should support the opportunity for larger -scale commercial land uses. Extraterritorial areas include the following: a. Northeast Area. This area includes land that is adjacent to both City and Township residential areas, and in some places borders the freeway. This area is guided in the plan for low density residential land uses, although there is an expectation that in larger areas, some examples of medium density housing styles will be considered when the overall density in no greater than three units per gross acre. This area is able to be served by City utility services, but the plan intends to limit growth in this direction to preserve utility capacity for downstream relief, and to encourage a growth pattern that is more westerly in direction. It is anticipated that rural residential uses would be reasonable beyond the boundaries of this planning district. Expected zoning districts to be incorporated into the development of this area include R-1, R-2, and R -2A districts. b. East Area. South of the freeway, the limitations of sewer service, existing development and other factors create another natural edge for urban expansion. Some areas include well -wooded land and hillside areas that lend themselves to higher -end housing opportunities. Other areas would be expected to be entry- level to mid-range in housing costs. An emphasis on natural feature preservation will be important in this area, including capitalizing on view opportunities where they are available. Expected zoning in this area would be R- 1, R -1A, R-2, and R -2A. Density levels would be below three units per gross acre. C. Southeast Area. The southeast portion of the planning area lies between the Monti Club Hill and Pelican Lake. County Highway 37 borders the north shore of the lake, and would serve as the primary south boundary for the planning area. Much of this area is designated "Future Growth Area", and does not have a density or land use label attached. However, it is expected that the bulk of these areas would be dominated by low-density residential development. An exception Page 2 I to the land use designation is the area around the intersection of County Highway 37 and Fenning Avenue. This area is seen as a higher -density development area, perhaps with a mixed pattern of townhouses, some commercial, and mixed use buildings. A broad band of open space should be incorporated into the plan to protect the shoreline of Pelican Lake. Density in the district is not designated at this time, due to the long period of time before this area would become urbanized, however, single family homes would not be expected in the core of this area. d. South Area. The land south of the current City limits includes the "Gold Nugget" property and other land between 85th Street and County Highway 37. The Gold Nugget property is guided for a combination of one third office -industrial, and two thirds residential. The residential portion is seen as a mixed density project, with overall densities at three units per gross acre. The office -industrial area is projected to be a mix of office, office -warehouse, office -showroom and other similar land uses. To support the transportation network in this area, an extension of Cedar Street is planned to continue south from School Boulevard to connect to 85" Street through this area. This roadway may take the form of a frontage road, or a service road serving development on both sides, depending on engineering and routing issues. South of 85" Street, the plan has designated the area for Future Growth, without listing a specific land use pattern or density. One of the features of this area is that urban development is intended to be buffered from Highway 25 by one half mile on both sides. This concept is intended to reinforce the feeling that Monticello retains a connection to the rural areas surrounding it, and to help make the community feel smaller than it is or will be. A system of development rights and credits could be established to compensate land owners in this area for the plan's prohibition of development in the Highway 25 corridor. A similar plan is proposed west of Highway 25, with an office industrial area mirroring the Gold Nugget development, and residential uses expected elsewhere. A buffer zone is planned here as well, keeping the Future Growth Area one half mile from the Highway corridor. e. Southwest Area. The southwest area is a region of significant changes in land cover and a mix of existing development, agricultural uses, and natural features. The plan anticipates a preservation of the natural areas, using them as amenities for both private development and public view. Some public recreation would be programmed for areas that are encumbered by utility easements. An area of higher density mixed use development is shown in this plan around the intersection of 901h Street and the extension of School Boulevard. Other land uses include attached residential housing, and limited commercial. Zoning districts in this area could include all of the City's residential districts and a mixed use district to be established. Residential density would likely range between six Page 3 9! 5 e and fifteen units per acre in the attached housing and mixed use areas, with densities below four units per acre in the remainder of the area. f. West Area. Extending Chelsea Road to the west and north is the feature of this area, creating a parallel south collector street. Chelsea would serve primarily higher intensity uses, including commercial and industrial uses. North of County Highway 39, Chelsea Road would serve as a dividing boundary between residential uses along the border of Silver Springs Golf Course, and industrial uses along the interstate highway. T he plan discourages residential uses along the highway where possible. Broad green spaces and landscaping buffers are programmed to help separate existing residential areas. g. Northwest Area. This area is dominated by industrial uses that would be developed in concert with an interchange at Orchard Road. This area would take advantage of both the freeway exposure and the natural tree cover to create a higher end commercial/industrial park. A new interchange in this area will minimize truck traffic impacts on either the existing developed areas or the traffic conditions at Chelsea Road and Highway 25. h. Permanent Rural Areas. Outside the boundaries of the planning area, the land use is proposed to be labeled "Permanent Rural Use" . Although it is anticipated that at some point in the future, the boundaries of the City's planning area will need to be reevaluated, any development in the Permanent Rural area would be well beyond the foresight of this plan. The proposed planning area, in fact, encompasses much more land than the City's utility services are able to treat. As a result, other major infrastructure changes will be necessary even to serve the identified districts. Summary The proposed plan is established to help establish roadway needs and issues, and to create a framework under which both the City and the Township might work, with the goal being that orderly planned growth can occur without Township fear that land will be annexed before it is needed, and without City fear that administrative opposition will interfere with the timing and process of development and growth. The City and the Township would need to work together to protect the areas for future development shown on the plan. Page 4 VI Planning Commission Agenda - 01/08/02 8. Consideration of Callinc for A Public Hearing on Amendments to the Comprehensive Plan. Jeff O'Neill provided a brief report noting that staff did bring this to the City Council previously, and that the Planning Commission is asked to review the latest information regarding the process of updating the comprehensive plan and consider calling for a public hearing on amending the plan. O'Neill stated that at the previous meeting of the Planning Commission a draft of the amended Land Use Guide plan was reviewed, accepted and forwarded to the City Council. Similarly, the City Council accepted the plan and directed staff to obtain input from Tom Salkowski (County Planner and MOAA Zoning Administrator). It was the view of staff that Salkowski was in the best position to provide input necessary to create a plan that would likely be supported by the Township and County officials. The meeting with Salkowski was held on Friday, January 4"' and Salkowski stated he felt they should include input from the Township as well. O'Neill added that they would like to get information out to the Township and MORA residents so that they are aware of what the City is looking at in it's Comprehensive Plan. Clint Herbst concurred and Popilek added that anything the City can do to keep the Township informed would be good for the City. O'Neill added that staff would set a meeting for an open house and advise the Planning Commission of that date. A MOTION WAS MADE BY ROBBIE SMITH TO CALL FOR A PUBLIC HEARING ON AMENDMENTS TO THE COMPREHENSIVE PLAN SCHEDULED FOR MARCH 5, 2002. ROD DRAGSTEN SECONDED THE MOTION. Motion carried unanimously. still COMMENT CARD ....... Comprehensive Land Use Plan Name S l VD L Phone (/o Address 13 �Q Z-�Scr� -( E City (' e, I �C� Zip SS��6Q O� , I�ro �� Vii°sS CD3 3 v A-- A)(51 Plea e ro�.kle comments and/or questions regarding this plan for further review and research v the P q .. .. P b, Planning Commission. (Please continue on back if more space is needed). W 0 UU 4) O-tA-IL4 ob IV # I 0-r� c �� (o `f-� - --E+ hay �� D Lv �� P u-�.� We, wouj� aV.�.d -� o � vis � b e I `�� �qa no�j{h h�Il s '�-fiees �1 di s a ca ci..� 4-oo rer • C�,�,�-ems `'� In 11 �d oz> s c COMMENT CARD ....... Comprehensive Land Use Plan Name _C Ile d) G- Phone 2 ( ) 2 Address 141111 L l L-, /1z' City"� �,��� �C v zip Please provide comments and/or questions regarding this plan for further review and research by the Planning Commission. (Please continue on back if more space is needed). 7 /- 2-1 - c7� �jj\)6) Of' Y Planning Commission Minutes - 12/04/01 7. Consideration of a conceptual land use plan proposal as a part of the Comprehensive Plan Update. Applicant: City of Monticello. Jeff O'Neill presented the staff report. He added that this topic came from conversations with City Council and staff at a workshop held on September 6"'. Pursuant to the workshop, staff had prepared a conceptual future land use plan for a large area surrounding the City of Monticello. Staff has informally dubbed this map the 2050 year plan in that it contemplates land development and growth for the near term and growth well beyond both the foreseeable future and beyond the design capabilities of the City's current utility services. The 2050 year designation is not meant to predict an actual time frame, merely to allude to a map that is outside of the City's usual planning horizons of 20 or 40 years. The plan incorporates the previous orderly annexation area, and also includes large areas to the south that have not been part of any prior land use planning. The areas to the South and West that have always been in the MOAA as "Residential" have been analyzed in more detail accounting for wetland, power lines and other features resulting in the beginning of a master plan for the area. Staff has envisioned that this map would help the City plan for impacts of very long term growth, irrespective of the time table. The idea behind this map is that the City can develop a reasonable set of growth management assumptions together with a vision that may be several decades away, but within the foreseeable future, we can consider development patterns that will lead us toward that end, presumably with some adjustments along the way. In developing this preliminary plan, we anticipate and hope for establishment of a framework for decision making that will include township residents. This plan therefore IFA Planning Commission Minutes - 12/04/01 once approved on a preliminary basis by the Planning Commission and City Council, will be a starting point for discussions with township residents and county officials. Our hope would be to develop a unified plan and development of a mechanism assuring its implementation. O'Neill provided the criteria that is used to define the plan with an explanation of the ideas. He also advised that the biggest change is the inclusion of the future growth area on the map. Will also be getting input from the Township prior to updating the comprehensive plan. Herbst added that there is a problem with sewer capacity and this needs to be addressed. O'Neill advised that it would be bypassed with more potential for moving East. O'Neill asked that members review the information, advising that this then would go to the City Council for formal review and brought to the township, looking at a February/March time -line. He also added that the plats that are being submitted include the type of housing that the City is looking for. Richard Carlson asked if the County or City can dictate whether residents have to hook up to City Water/Sewer and it was advised that they could. The City Council would also have to dictate whether they want a reserve set aside for services in the future, as in the area of Mississippi Dr. O'Neill stated that the public hearing would occur after the City Council reviews it and it may have comments/changes to it from the Council. It was noted that no action was necessary. Herbst added that Chair Frie previously had issues with industrial land located by the residential areas and golf courses. Frie stated this is still an issue. -8- MINUTES Planning Workshop September 18, 2001 - 7:00 PM Present: Bruce Theilen, Roger Carlson, Clint Herbst, Rick Wolfsteller, Brian Stumpf, Mayor Roger Belsaas, Jeff O'Neill, Steve Grittman, 011ie Koropchak, Robbie Smith, Richard Carlson, Planning Commission Chair Dick Frie, Roy Popilek, Rod Dragsten, Representatives from Gold Nugget, Horst Graser and Shawn Weinand Acting Chair Clint Herbst called the meeting to order at 7:05 PM. Deputy City Administrator O'Neill provided a brief recap of the purpose of the workshop regarding Gold Nugget land use as well as the scope of the Comprehensive Plan update study. Steve Grittman, City Planner, provided a brief description of the previous proposal by Gold Nugget from the Fall/Winter of 1998 which was primarily single family residential, noting that the City's comprehensive plan states the primary use as residential. Grittman also noted that the southwest corner of the proposed project showed commercial use, and that is were the project ended when the Planning Commission approved the preliminary plat. Grittman advised them on the status of approval/processing, as well as listing land use alternatives. Dick Frie asked the City Council if they were unanimous in favoring annexation of the entire Gold Nugget parcel. The Council noted that in time they would like to see the entire 220 acres annexed, but not all at once, and that it may depend on what is proposed by the developer. They discussed again various options including extending Cedar Street, installing a lighted pathway system, as well as a possible mixed use of light industrial with residential. 011ie Koropchak, Economic Development Director, stated that the City's approximate available acreage for industrial land is 100 acres, and advised that this includes two large lots with several smaller lots. O'Neill also advised of the Chadwick 180 acre industrial parcel available which already includes utilities, etc. Mayor Belsaas stated that staff repeatedly gets requests for land and the City does not have any to offer at this time. These people often do not want to deal with private developers but would rather deal directly with City staff. There was discussion that perhaps residential along Highway 25 would not be appropriate, and also if it would be appropriate to mix industrial with residential. Grittman added that with some creative planning there could be a softened transition between industrial and residential. It was noted that there are different types of industrial as well and that light industrial may even be a better buffer between the residential and Highway 25. O'Neill questioned the layout of the Gold Nugget property in that it is not completely flat, so how would it be arranged for mixed use to make the most use of this land and would it be large enough for a residential neighborhood with enough buffer for industrial/commercial. Grittman advised that it is doable if a greenway corridor was retained as a break point between the two land uses. He noted that a 70 acre area for industrial uses would be created if a frontage road along Hwy 25 was used as a corridor for industrial development. It was the consensus that a 70 acre area for industrial land use was appropriate. It was the consensus that all were in support of the land use as a mix of residential and light industrial. Also noted was that MnDOT may not be in favor of entrances to Highway 25 nor would the City want entrances off 85"' Street. Grittman also suggested the possibility of bringing back a business campus, making sure the area becoming the buffer would be a nice buffer. Shawn Weinand stated that of the 100 acres he owns, there are only 2 acres of industrial with the remaining land being a business campus. Weinand felt the City may want a different zoning where they would have more choices. It was noted that the developers of Gold Nugget have previously worked very well with the City and that hopefully that would be the case once again. Horst Graser, Gold Nugget, questioned about the infrastructure to work with regarding industrial and commercial, noting that he doubted they would be allowed access to Highway 25 for residential use. Also are there road limitations on the rest of the area. O'Neill stated utilities would have to be installed depending on what type of zoning, probably upgrades if the use was for larger industrial, but also noted that the City shouldn't let these utility limitations dictate land use. Koropchak also advised that the IDC has not made any formal recommendation but are encouraging City Council and Planning Commission to make sure industrial land is available. It was advised that the Northwest corridor is another area available for industrial land with freeway accessibility, it is contiguous to the City, and utilities would come over time. Regarding the comprehensive plan study, Grittman advised that it would need to be amended regarding the Gold Nugget area. Regarding the Southeast Monticello Extraterritorial Area, it was noted that many areas around the City are under development pressure. The East and Southeast areas of the City have really used up the utilities and growth would go to the West or South of existing City limits. The City has now received a lot of interest in this area. Mayor Belsaas stated several concerns with some starter housing mixing in with higher end recently. Also added that the area near the Monte Club seemed to be a good spot for higher -end housing. It was stated that the City Council had recently authorized a feasibility study in this area. Consensus is to hold any action on amending the comp plan for now until the feasibility study is completed • It was the consensus of the members to set new standards regarding residential districts prior to the first of the year. • Regarding Commercial Land Use Planning and the Chadwick I-94 frontage area, Grittman noted that this area is guided for industrial and there was discussion previously on moving it to commercial. The owner stated no retail, but office/light industrial would be a more positive zoning, visibility would be a positive. The consensus was to leave it as it is for now. 2 Regarding the County 18/I-94 Interchange Area it was advised that the City is participating with MnDOT in creating a full interchange in this area. Current comp plan calls for industrial with a small amount of commercial in that area. It was asked if this converts to a full interchange would the City want to include consideration of an expanded commercial land use designation as opposed to industrial. Mayor Belsaas stated he felt it would be more attractive to commercial; Grittman stated access to the freeway would be beneficial to industrial and the traffic pattern brings so many people by there. They support looking at commercial versus industrial. Other Potential Changes - The Paumen property is in conflict with the City and MOAA land use plans if it is proposed as residential/industrial; may need to look at buffers near the golf course if this were to occur. It was advised to look at the land near Osowski's in more detail as well. Interchange Location Options - 18 and 194, as well as the Orchard Road area. Regarding the idea of an interchange at Co Rd 39, it was noted that it doesn't meet the rural spacing guidelines according to MnDOT. It was asked if there was any interest in actively pursuing that as an interchange location. The consensus was to see what evolves with the area near Osowski's at Orchard Road. Also discussed was collector/arterial road network to support local traffic as freeway traffic is looked at. It was the consensus that there is a need to get 7" Street to the East and West through soon. Utility Service Area - Grittman stated they would request the City Engineer to develop a utility service map rather than having to do a study each time a developer approaches the City. Optional Approaches to Boundary Adjustment Process • Statutory Annexation • Orderly Annexation Agreement Options. It was the consensus to work with the township, and to identify larger areas outside of the City that should remain rural in anticipation of future urban development. Grittman concluded with stating it is staffs expectation to get something put together so it would be available for the next development season and stated he would like to get something back to City Council and Planning Commission by February that they could adopt. Would probably need a few more meetings to complete it. Chair Frie question where the Council and Staff stood regarding annexation at this time and the Mayor stated there are only two parcels, Groveland and Remmele, being considered at this time, the others are on hold. Brian Stumpf added that the Fire Department is discussing the possibility of a new fire station south of town and would ask that the City keep that in mind when considering land use. He stated that growth is continuing in that direction and there are good arterial roads that would give them access through the City. Grittman advised they could include this area in their study. Robbie Smith brought up the school district crisis with low enrollment and feels that the City as the governing body should be in tune to this, and the need to keep working with the school district. O'Neill advised that they would include them in the comp plan discussions as well. Grittman stated that a standard format for the comp plan update will be available at the next City Council and Planning Commission meetings. The meeting was adjourned at 9 PNI- Recorder E II. Planning Workshop September 18. 2001 - 7:00 PM - Mississippi Room Introduction and Purpose (5 min.) A. Gold Nugget Land Use Discussions B. Scope of Comprehensive Plan Update Study Gold Nugget Land Use (I hr.) A. Description of Previous Proposal B. Status of Approval/Processing C. Land Use Alternatives i. 100% Residential ii. Residential with Hwy. 25 Commercial iii. Residential with Hwy. 25 Industrial IV. 50-50 Split Residential/Industrial V. 100% Industrial vi. Other Comprehensive Plan Update Scope (30 min.) (This section is intended to determine the potential scope of a Comprehensive Plan Update or other study. and what topics such a study might include. There is not expected to be time to develop solutions to any of the topics raised.) A. Gold Nugget Area B. Southeast Monticello Extraterritorial Area C. Residential Development Standards and Districts i. R-1, R- IA. Other District Options ii. General Performance Standards iii. Housing Type and Mix (Townhouse/Multi-family/Single Family) D. Commercial Land Use Planning i. "Chadwick' I-94 Frontage Area ii. County 18/I-94 Interchange Area iii. Other Potential Changes E. Transportation and Utility Network to Support Land Use Plan i. Interchange Location Options Ii. Collector/Arterial Road Network iii. Utility Service Area F. Optional Approaches to Boundary Adjustment Process i. Statutory Annexation ii. Orderly Annexation Agreement Options iii. Other IV. Timeline and Schedulin�cy of Next Meeting (5 min.) V. Summary and Conclusions (10 min.) VI. Adjourn City Council Agenda - 08/26/02 12. Review New Owner Development Proposal for Consistency with Montissippi Trail, Planned Unit Development (Timber Ridae). Applicant: Mike Schneider, Homestead Multi-familv Development Corporation. (JO) REFERENCE AND BACKGROUND City Council is asked to review the enclosed proposal for consistency with the Planned Unit Development proposal previously approved for the Montissippi Trails project and consider authorizing staff to proceed to final PUD stage. Planning Commission members have also received this information and have been requested to call me with their views on the topic in time for a report to you at your meeting. Enclosed you will find a packet of information submitted by Mike Schneider who is the "new developer" of the Montissippi Trails project. As you recall, the Montissippi Trail Planned Unit Development with Forest Harstad as developer was approved some months ago. The new developer proposes to change the development name from Montissippi Trails to "Timber Ridge" but otherwise proposes no changes to the plat, utilities or required landscaping. However, the building style and base price proposed varies from the original plan. Last year at the PUD review stage, Harstad said the homes would exceed $150,000. On another occasion, Harstad indicated that the base price of the Montissippi Trail homes would be in the neighborhood of $170,000 - $200,000. The home proposed by Schneider was marketed in May 2001 at the price of $144,900. Schneider notes in his summary that the last home sold at Orchard Hill sold for $176,900. It was my recollection that building design and value played a role in the Planning Commission decision to recommend approval of the PUD therefore I thought it would be important for you to review this information prior to moving forward on this project. ALTERNATIVE ACTIONS 1. Motion to table the matter pending further review by the Planning Commission for consistency with the approved PUD. Under this alternative the item would be remanded to the Planning Commission without the need to conduct a new public hearing. If the Planning Commission finds that the new proposal is consistent with the approved PUD then the item would be forwarded to the City Council for final approval. If the Planning Commission finds that the plans are not consistent with the original approved PUD then the applicant would need to submit a new concept/development stage PUD application for review at the October meeting of the Planning Commission. City Council Agenda - 08/26/02 2. Motion to accept the building plans as consistent with the PUD requirements under the approved PUD. Under this alternative the project would move forward to final stage PUD which include execution of the development agreement and placement of signatures on the final plat and initiation of public storm sewer improvement necessary to support the project. 3. Motion to deny acceptance of the building plans as being consistent with the approved PUD and require that the new developer submit a new PUD Application. STAFF RECOMMENDATION On two different occasions during the original review process the City was given information regarding the value of the homes. At the original Planning Commission meeting the Planning Commission was told that the homes would exceed $150,000. On another occasion the developer said that the homes would range from $170,000 to $20000. It appears that the new developer is hedging when it comes to meeting building value commitments made by the developer that obtained the original PUD. Council may wish to require that a new application be submitted if there is any doubt that the new developer will meet or exceed the standards proposed by the original developer. On the other hand. City Council could take the view that staff is "splitting hairs" and that the home value proposed by the new developer is fine. SUPPORTING DATA Meeting minutes associated with original PUD approval. Submital provided by new developer. 2 MINUTES REGULAR MEETING - MONTICELLO PLANNING COMMISSION Tuesday, July 3, 2001 - 7 p.m. Members Present: Dick Frie. Robbie Smith, Roy Popilek, Richard Carlson, Rod Dragsten Council Liaison: Clint Herbst (Absent) Staff Present: Fred Patch, Steve Grittman Call to order. Chairman Frie called the meeting to order at 7:00 p.m. 2. Approval of minutes of the regular meeting June 5 2001. A MOTION WAS MADE BY ROBBIE SMITH TO APPROVE THE MINUTES OF THE REGULAR MEETING HELD JUNE 5, 2001. MOTION SECONDED BY ROD DRAGSTEN. Motion passed unanimously. 3. Consideration of addinL items to the aLyenda. It was noted by Robbie Smith that an item regarding side yard setbacks for veterinary clinics in the B-3 district was not on the agenda. Mr Grittman explained that due to the Independence Day Holiday, staff intended to reserve the item for the meeting in August. Roy Popilek requested that the commission discuss property blight issues and enforcement status, and specifically review the extensive blight surrounding Danner Trucking at State Highway 25 and Dundas Road. Chairman Frie added item 10: Blialht Update and Danner Trucking BliLht. 4. Citizens comments. No comments were heard. 5. Public Hearing — Consideration of a request for rezoning from I-1 to R-2 the easterly_ 119+ feet of parcel occupied by Electro Industries. Inc. at 2150 W. River Street and the parcel occupied by Riverside Oil Company at 1156 W. River Street: and consideration of a concept and development stage planned unit development: and consideration of a request for preliminary plat approval for Montissippi Trail Townhomes. a 97 -unit townhome development. Applicant: Harstad Holdings. Inc. Staff report on this item was presented by Steve Grittman. Mr. Grittman reviewed the Page 1 10� concerns were dispensed with as part of the additional land purchase. Mr. Frie also asked about protective covenants and enforcement of those covenants. The developers stated that the declarations and by laws of the association will be recorded at the County for each townhome. Mr. Harstad stated that each homeowner has the opportunity to foreclose based on the declarations and bylaws. Rod Dragsten had no questions. Roy Popilek asked if the cul de sac at the south end of the project provided adequate fire department access. and if the snow storage issues had been resolved. Mr. Grittman answered to the affirmative. Richard Carlson asked if there will be a connection to Prairie Road. Mr. Grittman stated that the internal road for this project will be private but connected to Prairie Road. The cul de sac terminus of the interior roadway will provide a distinctive sense of entry. MOTION BY ROD DRAGSTEN TO RECOMMEND TO THE CITY COUNCIL THAT THE EASTERLY 119+ FEET OF PARCEL OCCUPIED BY ELECTRO INDUSTRIES, INC. AT 2150 W. RIVER STREET AND THE PARCEL OCCUPIED BY RIVERSIDE OIL COMPANY AT 1156 W. RIVER STREET BE REZONED FROM I-1 TO R-2, ONE AND TWO FAMILY RESIDENTIAL USE. MOTION SECONDED BY RICHARD CARLSON. Motion passed unanimously. MOTION BY ROD DRAGSTEN TO RECOMMEND APPROVAL TO THE CITY COUNCIL OF A CONCEPT AND DEVELOPMENT STAGE PLANNED UNIT DEVELOPMENT: AND CONSIDERATION OF A REQUEST FOR PRELIMINARY PLAT APPROVAL FOR MONTISSIPPI TRAIL TOWNHOMES. A 97 -UNIT TOWNHOME DEVELOPMENT. MOTION SECONDED BY ROBBIE SMITH. Motion passed unanimously. aLe 3) 1(5k Planning Commission Agenda - 7/03/01 5. Public Hearinq - Consideration of an application for a Rezoninq from 1-1 to R- 2, and a revised Development Staq_ a Conditional Use Permit/Planned Unit Development and a Preliminary Plat to allow the development of the 97 unit Nlontissippi Trail Townhomes located on the "Klucas" property. Applicant: Harstad Holdinqs, Inc. (NAC) A RFFFFRFNJr.F ;4NNn Par vr,Rni min Harstad Holdings has applied for a rezoning, CUP/PUD and Preliminary Plat to allow an 97 -unit townhome development on the "Klucas" property. The project was previously reviewed as a 92 unit development, but since that time, the applicants have acquired a 2.5 acre strip of land along the west boundary from Electro Industries and Riverside Oil. The additional land allows the project to expand to the existing tree line that divides the two land uses, and provides the project with additional fill necessary to properly grade the remainder of the site. The property is now 16.5 acres in size and is located in northwest (Monticello. The property is located between 1-94 and County Highway 75 south of West River Street. The property is zoned R-2, Single and Two Family Residential. Land Use and Zoning The additional parcel must be rezoned from 1-1 to R-2 to accommodate the residential use. The proposed townhome land use would be consistent with the zoning for the property, and the rezoning would fit well with the land use pattern and the lay of the land. The predominate housing type is four -unit townhomes. One two -unit and five three -unit townhomes are also included. The surrounding land uses are industrial to the west, an NSP training facility to the north, a single-family residential use to the east, and Interstate 94 to the south. Density After subtracting the area of the public right-of-way, the parcel is approximately 16 acres in size. The proposed 97 units would result in a net density of 6.1 units per acre, slight less than the original concept. This is an appropriate density for medium density residential development. Setbacks In the R-2 District the minimum front and rear yard setback is 30 feet and the minimum side yard setback is 10 feet. The plan illustrates a minimum setback of 30 feet from all properly, boundaries; therefore, the setbacks from property boundaries are compliant. The proposed minimum setbacks within the property are listed below: Front yard (garage to curbline) 25 feet Corner lot side yard adjacent to drive 25 feet Rear yard setback 25 feet (Minimum distance between buildings 22 feet 1(3 � Planning Commission A_enda - 7/03/01 unit. Generally one guest parking space for each three dwelling units is required. The proposed plan shows 45 guest parking spaces, exceeding the minimum standard. Landscaping Multi -residential sites are required to contain a minimum of one tree per dwelling unit. Landscaping that exceeds minimum requirements is appropriate in this situation because 1+ ;c, -, DI In t ''] /"l /"� T� /� v t i'� 1 t+� �rr� m .� 1 v� rv� r� r.i .-� .n �i r .. .-...1 i L- - _I Il IJ a I vv allu IICAIUIIILY 11 VIII Ut-_VtZ;1UYIIICI1l standards is proposCu. I IIC P1upuSuu development contains 97 units, and the plan contains approximately 130 trees in the buffer yard along the west property line and more than170 trees on the rest of the property. The west boundary line adjoins a slope and thick stand of evergreen trees. Planning staff would encourage the applicant to consider adding trees along the east boundary, perhaps by relocating some of the west bufferyard plantings, to break up views between the two developments and provide some screening of private backyard spaces. Shade trees are spaced along the internal streets throughout the development. A proposed stormwater pond provides some separation between the development and Interstate 94; however, additional vegetative screening would also be desirable along the south property line. A minimum of 15 percent of the required minimum number of trees for multi -residential developments is required to be long-lived hardwood deciduous trees, 3.5 inches in diameter as measured six inches off the ground. Currently, all of the long-lived hardwood deciduous trees proposed have a 2.5 inch caliper size. The landscape plan must be revised so that at least 17 of these proposed trees meet the 3.5 inch size requirement. Grading and Utilities Preliminary grading and utilities plans have been submitted. These plans are subject to City Engineer review and approval. Development Agreement As a condition of final plat approval, the applicant will be required to enter into a development agreement with the City. Homeowner Rules and Bylaws As a condition of final plat approval, the applicant must submit a copy of all rules and bylaws to be utilized by the development's homeowners association for City review. The rules and bylaws should address such issues as maintenance of common open space and snow removal. Refuse Because each unit will front on a street of sufficient width, trash handling may occur along the street as with any other subdivision. As noted previously, only the cul-de-sac units will need special review for turning and backing requirements of the trucks in the cul-de-sac area. 3 a Planning Commission Agenda - 7/03/01 CONDITIONS OF CUP/PUD AND PRELIMINARY PLAT /APPROVAL 1. Prairie Road must be extended from the subject property to where the existing street ends. The City must determine timing on how to finance this extension. 2. The landscape plan must be revised to include vegetative screening along the south property line to screen Interstate 94 and along the east rn,rnperty linrr tri create an open "screen" between the backyards of the proposed development and the existing development to the east. 3. The landscape plan must be revised to include at least 17 long-lived hardwood deciduous trees, 3.5 inches in diameter as measured six inches off the ground. 4. The Preliminary Grading Plan is subject to the review and approval of the City Engineer. 5. The Preliminary Utility Plan is subject to the review and approval of the City Engineer. 6. The applicant must submit a copy of all rules and bylaws to be utilized by the development's homeowners association for City review. The rules/bylaws should address such issues as maintenance of common open space and snow removal. 7. A lighting plan must be submitted for review by the City. 8. The applicant must enter into a development agreement with the City. 9. Comments from other City staff. a 5 Planning, Commission Minutes - 04/03/01 A MOTION WAS MADE BY DICK FRIE AND SECONDED BY ROD DRAGSTEN TO RECOMMEND APPROVAL OF THE CONCEPT FOR RE -USE AND REDEVELOPMENT OF THE ST. HENRY'S CHURCH AREA. BASED ON A FINDING THAT THE MIXED USE CONCEPT WOULD BE POSITIVE FOR THE PROPERTY, AND POTENTIAL TRAFFIC ISSUES CAN BE ADDRESSED AS PART OF THE SITE PLANNING PROCESS. Motion carried unanimously. 8. Consideration of an application for a Development Stao-e Conditional Use Permit/Planned Unit Development and a Preliminary Plat to allow the development of a townhouse proiect located on the Klucas vrovertv. Applicant: CraiL, Schreber & Associates. Inc. Steve Grittman, City Planner, provided the staff report stating the applicant has applied for a CUP/PUD and Preliminary Plat to allow an 90 -unit townhome development. The applicant did not submit a concept plan for review but has met with staff to discuss the development. The proposed townhome land use is consistent with the zoning for the property; the surrounding land uses are industrial to the west, an NSP training facility to the north, a single-family residential use to the east, and Interstate 94 to the south; the proposed 90 units would create a density within this area of 6.6 units per acre which is an appropriate density for medium density residential development and the plan illustrates a minimum setback of 30 feet from all property boundaries and therefore, the setbacks from property boundaries are compliant. A buffer yard is required along the western boundary of the site between the proposed residential land use and the existing industrial use. A residential use next to an industrial use is considered a severe type of conflict that requires a minimum building setback of 50 feet, a minimum landscape yard of 40 feet, and a minimum of 160 plant units per 100 feet of property line. A thick band of evergreen trees already exists on the industrial property along the property line; therefore the residential development is required to install half the width and intensity of the required buffer yard. The density of planting is high with 147 trees along the west boundary or 156.5 plant units per 100 feet. The proposed buffer yard is adequate given the existing screening on the industrial site. The proposed project also meets the general standards regarding building spacing and height, building elevations and floor plans were submitted. The property gains access from Marvin Elwood Road in the northeast corner of the property and a cul-de-sac and road extension to Prairie Road is also planned at the south end of the site to provide a second access. The site plan shows the road being extended to the approximate existing end of Prairie Road. In previous discussions staff asked the applicant to look at the possibility of connecting the northern two dead-end streets to provide greater connectedness between units. The applicant has decided not to connect these two streets due to space limitations. Instead, the applicant should provide turn - VA Planning Commission Minutes - 04/03/01 Chair- Frie opened the public hearing. Mike Gair, MFRA. provided additional information, noting there is a change in topography by about 10 feet on the industrial side on the western edge. Eastern side is residential with bike trails/pathways, and parks which are attributes to this site. He provided exhibits showing their survey of the site and noting that after review, it was decided to keep the housing inside the green space with entry from Marvin Elwood Road, and stating that 46% of the site is common open space with (Yood access to the trails and streets. Gair advised that they will incorporate the 3 1/2' caliber trees required; also showed where they relocated approximately 12 coniferous trees to the south to provide additional screening, as well as relocating about 7 conifers from a norther point and placed along the southern edge. Also clusters will be placed along the eastern edge that originally were put in for garbage collection sites no longer needed due to the installation of the hammerheads. Gair stated they are working with NSP to have lighting at each of the key entrances and one at the far west of the open space. Chair Frie asked how soon the homeowner rules and bylaws could be submitted and Gair stated they could submit this information as soon as possible if necessary. A resident at 307 Marvin Elwood Rd, questioned how much space there would be from the backside of the townhomes to his garage, stating he felt it looked somewhat cramped. Gair noted it would be 30 ft at closest, which is well in excess of the City's ordinance, again noting they intend to keep this development as open as possible; landscaping spaced typically 15 to 20 feet on center, and Gair stated there were no trees put at this resident's particular site but that they could be added. Gair also advised that the units are owner/occupied homes with double stall garages and a particular floor plan that is split. The resident also noted his concern regarding the lack of maintenance of other developments in that area and it was noted that this would be addressed by the bylaws. A resident at 226 Crocus Lane, Lot -3 Block 3, whose front yard overlooks this project, felt that the density was too large stating the landscaping between east/west is just trees, and no berm, although there is a natural sloping. and the resident was concerned about people wandering through this area. The resident also stating he just sees a handful of trees to the freeway site and Gair advised that staff had requested more plantings and that this would be done. Gair also stated there are 271 plantings which averages 3 per unit and the density is well within the ordinance. Gair advised that Outlot A is a common open space of 148 x 114 ft with parking availability to the area and additional groups of open areas which could be used as play/recreation areas and stated that 46% of the development is open/common space to accommodate outdoor recreation. 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The EDA approved the loan on June 18, 2002, and on June 19, 2002, the proposed buyer notified the Office of the EDA that they had withdrawn -from purchase of the Lake Tool building. The EDA Lake Tool loan payment is current and TIF District No. 1-21 is deficient. b) EDA Invoice - Copy of invoice for Blue Chip Development - Vector Tool (draft of document). C) GMEF No. 021 - EDA loan fee from Tapper's Inc. for approved $55,000 machinery and equipment loan. Loan documents are prepared and reviewed by applicant. Closing anticipated for September. d) MCCF Loan Criteria - This is the criteria for the MCCF dollars available through the 17conomic Development Partnership of Wright County. The adjustable and fixed rate is expected to be over prime rate meaning the program is truly gap financing and not used as an incentive. Loan fee is higher than charged by most lenders. e) Production Stamping - Les Wurm has been hesitant to apply for the EDA loan for construction. He has been informed of the need to have his construction financing in place prior to permit issuance. TIF District No. 1-32 for Production Stamping was approved by Council on AuOust 12, 2002. Grading and footings will be in place this fall. f) Working wit11 two industries - A wet industry and a company who manufactures wind generation equipment. The latter one through DTED needs a response to their request for proposal by August 26. (Mailed August 22. 2002.) Also need to follow-up with FIuot Manufacturing Company, St. Paul, the company visited by the Prospect Team in late June. 8/19/02 - Huot Mfg has not received an offer to purchase their property from the YMCA, therefore, visit to Monticello on hold. g) State Grant - Tlie State of Minnesota will be out on August 26 to monitor the city ledgers and documentation for the $500,000 grant the city received and lent to Twin City Die Castings. They will also tour the facility. The effective close-out date was June 1. 2002. TCDC has been requested to complete the job and wage form for compliance. The City can request an extension for job creation based on a copy of' Certi f icate of Occupancy issued by the City. 11) BRE visits - Need to lint up visits. Last ones were Standard Iran and Electro Industries. I ) Meeting scheduled 'Witl1 Chuck Van Heel. Steve Hei111btic11, Mayor Belsaas. Wolfsteller. and iiiyself relative to Midwest Graphic's building and proposed East 7 Street incubator collllllercial/industrial project. J) C0111PLICI-alit - Attended a reception for C0111puCredit in St. Cloud o11 Au`7ust 21, Council AcFenda - 8/26/02 2002... CompuC'redtirt purchased- the_-re:ceivabrles from Fingerhut. They have renewed a 1e w with. Duane Schultz on°the.-Thomas Circle building for another c..0uph--of yc;Mrs. Tete. company president and vice president from Altanta, GA, Ott they have f ttturc plans --to expand: Invited them to Monticello for tour and rn et Cottmil, etc - k). NAl`IRO Conference: Per recommendation of HRA, I'm registered for a confer=ence in Du=luff"t September 18-20. l) UMC: -. Groundbreaking. tentatively scheduled for September 20, afternoon. 1b} HRA leas b-ewtne: working with Steve Johnson and Kevin Heaton for potential redevelorpt-exit ofa portion of Block 52, beginning in the southeast corner. We hove a long. way to go to get a project together (cost, design, parking, etc.).