City Council Minutes 02-27-2012 JointMINUTES
SPECIAL JOINT MEETING — MONTICELLO CITY COUNCIL,
MONTICELLO EDA, MONTICELLO PLANNING COMMISSION
Monday, February 27, 2012 — 5:30 p.m.
Mississippi Room, Monticello Community Center
EDA Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz
Council: Mayor Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian
Stumpf
PC Commissioners: Chair Rod Dragsten, Brad Fyle, Charlotte Gabler, Bill Spartz, Barry
Voight
Absent: Matt Frie (EDA)
Others: Megan Barnett Livgard, Jeff O'Neill, Tom Kelly, Angela Schumann,
Bruce Westby, Dan Wilson (Wilson Development), Ron Hackenmueller,
Bret Weiss, Steve Johnson
1. Call to Order
Mayor Herbst called the Special Joint Meeting of the Council, Economic Development
Authority and Planning Commission to order at 5:42 p.m.
2. Purpose of Meeting: Provide comprehensive update of the Embracing Downtown
Project
Megan Barnett Livgard explained that this meeting will give an overview for the Council,
EDA, and Planning Commission on the status of the Embracing Downtown project. She
outlined the areas that will be covered during the discussion.
3. Embracing Downtown Update
a. Montgomery Farms (purchase agreements and tenant negotiations)
Dan Wilson updated the group on where he is at in discussions with Montgomery
Fanns. They have generally agreed on a price. However, the difficult part is
working with leases, some of which run into 2014. Because of the uncertainty on
the intersection project, some of the tenants had to be brought into the discussion
which also added other issues in the situation. Montgomery is now represented
by an attorney, which added some complexity to the discussions but many of
those items are being worked out.
Dan Wilson explained the process of working with current tenants for relocation
and the options that are available for them. As discussions take place, the tenants
are becoming more comfortable with the process.
Glen Posusta asked why the City is responsible for the discussions with the
tenants rather than having Montgomery be responsible for this. Dan Wilson
explained that it is in the City's best interest to reach a negotiated settlement,
Special Joint Meeting Minutes — February 27, 2012 Page 1
which requires discussion with both the owner and tenants. The City has a chance
to purchase the property at a price far lower than the potential appraised value.
The other option for the City to obtain the property would be to go through the
condemnation process. In this case, the tenants would then have to go through
Montgomery Farms to get their relocation costs covered.
Clint Herbst asked Dan Wilson to talk about what happens if the Council and /or
EDA would decide they do not want to pursue a negotiated settlement anymore,
especially considering the possible high costs of relocating the current tenants. It
looks like there might be four tenants that would have to be relocated which could
run up to $50,000 each plus miscellaneous costs.
Clint Herbst commented that it appears that it got more complicated when
Montgomery's attorney came into the picture. He feels that the City should not
have to be totally responsible for working with the tenants. Megan Barnett
Livgard commented that Montgomery has been working with the City too in this
process. Dan Wilson explained that it is in the best interest of the City to keep the
tenants in the building as long as possible in order to reduce the costs of
relocation.
Lloyd Hilgart asked about the process of buying out the leases. Dan Wilson gave
some examples of how the City might approach that and could possibly include
offers from both Montgomery and the City. Dan Wilson also explained how the
leasehold costs could be calculated. He also noted that an attorney representing a
leaseholder could also make an offer for a buyout. Lloyd Hilgart suggested that it
might be best to negotiate a buyout rather than wait out the terms of the lease
since the City will still need to pay relocation costs. Tracy Hinz asked if there
was an estimate of the costs that would be incurred for procuring this property.
Dan Wilson said that they really don't know those costs at this time as there are so
many factors involved in relocating the tenants.
Clint Herbst asked Bret Weiss to explain the potential funding from federal transit
funds and how long that might be. Bret Weiss explained that the funding period
would not take place until 2013. Although the City might be notified they are
eligible to receive funds, they would probably have to wait until a certain point in
time before they can actually take down the Montgomery building so as to not
jeopardize the funding.
Dan Wilson talked briefly about the dental lease and the movement that has been
made so far in discussions on options available to move the dental office. Glen
Posusta commented on the old Bait Shop building and the possibility of not
displacing those tenants since the City won't need to take down that building for
the intersection project. Dan Wilson recommended that may not be the best
option for the City once they see the condition of the apartments. He did note that
tenants who do not pay their rent lose their eligibility to receive relocation
benefits.
Special Joint Meeting Minutes— February 27, 2012 Page 2
In the interest of time, the discussion moved on.
b. Contracts with Wilson Development, Jim McComb, & Janna King
Megan Barnett Livgard explained that Council will be asked tonight to ratify
EDA's decision approving a contract with Wilson Development to continue
negotiations for property acquisition related to Embracing Downtown.
Contracts have been signed with Jim McComb and Janna King related to the
Embrace Downtown project. Jim McComb is working with potential developers
for locating in the downtown area. Janna King is working with the Leadership
Team.
C. Intersection improvement project status
Bruce Westby summarized potential sources for funding of the Hwy 25 /CSAH 75
intersection improvements. Up to $400,000 may be available through Mn/DOT's
Local Initiative Funds, and he plans to meet with Wright County soon to discuss
the potential for them to fund some of the proposed improvements along CSAH
75. Staff is also currently researching whether our project is eligible for the
Transportation Economic Development funding program.
Bill Tapper asked about the project costs and Bruce Westby pointed out that about
$1.65 million is needed to complete the remaining intersection improvements.
Jeff O'Neill asked about partnering with neighboring areas in order to garner state
support for funding. Bruce Westby feels that there are enough potential sources
of funds available for the current project without expanding the project. He
would be leery about trying to partner with other entities because that could add
some complexity to getting the project funded. Bruce Westby summarized the
project to include realigning northbound TH 25 to the east, adding dual left tarn
lanes on three of the four legs of the intersection, and dual right turn lanes in the
northeast quadrant. Highway 25 would need to be widened and that would be
done in the area where the Montgomery building now sits.
d. CCD rewrite initiative
Angela Schumann explained that the Planning Commission and members of the
Embrace Downtown leadership team are working on rewriting components of the
CCD district. She expects a draft to be ready in March.
e. Creation of Downtown Leadership Taskforce
A leadership team was recently formed and held their first meeting recently and
has another meeting on March 7th.
Special Joint Meeting Minutes— February 27, 2012 Page 3
f Establishment of priority blocks and related general criteria to be used for
identifying opportunities
The Leadership Team is working on establishing criteria for Embrace Downtown
acquisitions so that city staff can more quickly move on this project when needed.
4. Adjournment
Mayor Herbst adjourned the special meeting at 6:28 p.m.
Recorder: Catherine M. Shuman
Approved: March 12, 2012
Attest:
C imstrator
Special Joint Meeting Minutes — February 27, 2012 Page 4