City Council Minutes 07-14-2003 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday July 14, 2003 - 5 p.m.
Members Present: Roger Carlson, Glen Posusta, Robbie Smith, Brian Stumpf and
Bruce Thielen
Members Absent: None
1. Call to Order.
Mayor Thielen called the meeting to order at 5 p.m. and explained the purpose of the special
meeting. City Council, staff and developers present were introduced.
2. CSAH 18/I-94 Interchange Agenda.
Review Status of Plan Development
City Engineer, Bret Weiss provided background on how the City got to this point with the
interchange plans for CSAH 18. Some time ago the City identified that they wanted an interchange
with two movements while the Federal Highway Administration required the city to show they could
supply a full interchange with all four movements. The Federal Highway Administration had
approved an interchange going on the Dahlheimer site. With the proposed development of the
Dahlheimer/Bondhus property, the developer would like to see the interchange location moved more
to the east toward the redi-mix site. Since MnDOT is ready to do some work on I-94 it would
make sense to look at the interchange again.
At the last meeting, the Council authorized WSB & Associates to move forward with preliminary
plans and do other necessary studies. In September it is planned to start the final design phase with
construction to take place in 2004. Between now and September there is a great deal of work
that needs to be done.
The City wanted to meet with the property owners and go over how the cost will be assessed, how
the right of way will be acquired, impact on the development plans of the property owners and
negotiate cost sharing agreements with the various entities. The primary goal of this meeting is to
introduce a concept plan.
Review Commercial Development Plans in Concept
Mr. Ken Streeter spoke about his search for development sites within the City resulting in his
meeting with the Dahlheimers and Mr. Bondhus. Mr. Streeter indicated their procedure would be
Special Council Meeting - 7/14/03
to enter into an agreement with the properties owners and contract with the Ryan Companies as the
developer. Ken Streeter noted that nothing is requested for approval at this time but he felt it was
important for the city to have something to look at. Dick Brooks of Ryan Companies provided
some background information on their company and the developments they have done. He stated
that he didn't want to identify the proposed tenants at this time because it would premature to do so
at this point but he added that three of the biggest retailers in the country are proposed for this site.
The proposed site is acceptable to the prospective tenants so now they are proceeding with the
development of it.
Dick Koppy, in charge of engineering for Ryan Companies, stated that have not done a great deal of
engineering work yet. There is 174,000 sq. ft. proposed for general merchandising and grocery,
106,000 sq. ft. for soft merchandising and 95,000 for other merchandising. There are three outlots
which could house another 50,000 sq. ft of retail or restaurants making a total of 425,000 sq. ft. on
a 48 acre site. Dick Koppy briefly reviewed elevations in the area noting that the property lies at an
elevation of between 960-963. The interchange configuration is essential to their development.
Whether the center can be done before the interchange is completed has yet to be determined. The
interchange with a signal is necessary because of the impact the center will have on traffic volume.
There will also be access to the site from 7"' Street. Water, sanitary sewer and storm sewer needs
will have to be worked out.
Dick Brooks reviewed their schedule. Once cost information is obtained the developer will submit
the cost estimate to the tenants who will sign off. At that time they will be representing actual tenants
in the development. It anticipated that the closing would be in May 2004 and construction would
take place in 2004 with a grand opening in 2005 depending on MnDOT and the City. He noted
that the retailers have set opening dates that they are trying to meet. Ken Streeter added that there
are some other issues as well such as the relocation of Dahlheimer to a new site, either an existing
building or vacant land suitable for construction. Ken Streeter stated that this development will have
a big trickle down effect in attracting other businesses. Mayor Thielen stated that Monticello is a
community that will do what is necessary to make this development happen.
Doug Weiszhaar presented a sketch of the proposed alignment and stated that a project works best
when it tries to build by consensus. It was suggested that two committees be established, a
Technical Committee that deals with items that are highly technical in nature and the other a Policy
Committee that would deal with issues like how the project would impact adjacent neighborhoods.
Both committees would advise the City Council on what the alternatives are for this project. Doug
Weiszhaar noted that the City Council cannot veto anything MnDOT does on a federal highway. It
was asked what would happen to the bridge on CSAH 18. Since the bridge has at least half of its
useful life remaining, MnDOT does not want to replace it at this time. MnDOT agreed to build
temporary bypass to the north of the new lanes. Doug Weiszhaar suggested that a representative of
the Wright County Board be designated to serve on the Policy Committee. He also noted that the
redi-mix plant is still in the township and for that reason they might want a member of the township
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board on the Policy Committee as well. Bret Weiss stated that over the next several months the
work load would be very intense for these committees especially during the preliminary design
phase.
Bruce Thielen asked about the process of appointing people to these committees. Bret Weiss
suggested that if there are individuals that the Council feels would work well on the committees they
should select them rather than trying to advertise for people to serve on the committee. The
members of the Council suggested a number of people that could be considered: Dave Rietveld,
Roger Belsaas, Dick Van Allen, Mary Lou McCormick. It was suggested that for the Technical
Committee the following people be selected: City Engineer, Bret Weiss, Deputy City Administrator,
Jeff O'Neill, Virgil Hawkins or Wayne Fingalson from Wright County, Terry Hombart from MnDot
and the area representative for the Federal Highway Administration. Ken Streeter suggested that
someone from the Ryan Companies be included as well.
For the Policy Committee, Bruce Thielen and Robbie Smith will be the Council representatives.
Others making up the committee would include, a representative from the Planning Commission
which the Planning Commission will designate, a representative from the south area with Mary Lou
Mccormick, Roger Belsaas and Gary Kraft listed as possibilities; a representative from the north
area with Clint Herbst, Stu Leach, Bob Murray and Dick Van Allen listed as possibilities, city staff,
Ken Streeter and Shawn Weinand representing the developers and a member of county board. It
was suggested that the meetings be set on a regular basis so the committee members had adequate
time to schedule around the committee meetings.
Cost Analysis:
Bret Weiss submitted some preliminary information. Bret Weiss indicated that they will be talking to
MnDOT about taking the lead on acquisition of the redi-mix site. Bruce Thielen mentioned that he
had talked to Representative Mark Kennedy and he suggested that the City contact his
representative in Buffalo and keep him informed of this project. Doug Weiszhaar noted that with
Mark Kennedy on the Transportation Committee he does have some influence. It was suggested
that the city make contact with his representative and keep him informed of what is happening. Bret
Weiss said one of the big issues is to get the MnDOT funding moved up from 20007. The City
could fund the cost and get paid back when MnDOT has funds available. There was discussion on
some $800 million of bonding and advance construction funding available with $400 million specified
for the metro area and $400 million outstate. The estimated interchange cost is $9.3 million which
does not include right of way costs but includes the ramp and bridge for CSAH 18. The
construction of 7t" Street and a north -south street was estimated at $1.7 million which is just a
preliminary estimate but it is something for the developers to use.
The southeast interceptor sanitary sewer would need be constructed in conjunction with the
interchange project but this cost would come from trunk funds. The south frontage road whether it
is the extension of Meadow Oak Avenue or the construction of another road would have to be done
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Special Council Meeting - 7/14/03
if CSAH 75 is eliminated. Storm sewer ponding will be funded in part by MnDOT. Some utilities
may be impacted by the lowering of I-94.
Right of way acquisition - Just under 30 acres of right of way is estimated to be acquired. Ken
Streeter asked about the right of way and whether there was a point where MnDOT would take all
of the redi-mix site.
Glen Posusta asked what the logic was in having a 4 lane bridge. Bret Weiss said that preliminary
traffic analysis shows the 4 lane bridge would be needed. Roger Carlson asked if CSAH 18 would
be four lane all the way to School Boulevard and Bret Weiss indicated that was a possibility.
Review Potential Options for Project Funding
Jeff O'Neill reported that the staff has been searching out what other communities have done. He
reviewed the various funding options available and noted that the agreement and support of the
developers is necessary on this. Jeff O'Neill thought the Policy Committee would have to come up
with funding program for this project. Jeff O'Neill indicated that he has met with Mark Ruff of
Ehlers & Associates, the City's financial consultants to get the preliminary process going.
Bruce Thielen asked about the federal funding and whether they could apply for it. Bret Weiss
didn't know if they could still get it. Doug Weiszhaar stated the current bill applies through October
and the application process is closed. Congress hass indicated that there would not be a new bill
by October but it is possible the current bill would be extended another year or possibly two years.
If that is the case there would be another solicitation process. Bret Weiss stated that interchange
projects don't compete well against other projects. MnDOT sees them more as a developer
benefit. Doug Weiszhaar felt the project had strong potential and MnDOT wants to have their
projects picked by the end of this month sot it is important to visit with MnDOT officials to see if this
project fits.
Glen Posusta asked if the redi-mix plant had been approached on this project. Jeff O'Neill
indicated that there is land that is being considered for a relocation site but there are some issues
with it yet.
Matt Brokl, City Attorney noted there is a pre -development agreement that needs to be put in
place. Matt Brokl and Jeff O'Neill would like to start working with the developers on this.
3. Adjourn.
Mayor Thielen closed the workshop meeting at 6:40 p.m.
RecordingSecretary
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