City Council Agenda Packet 12-27-1983AGENDA FOR THE SPECIAL MEETING
OF THE CI Ty COUNCIL
Tuesday, December 27, 1983
5:00 o'clock p.m.
1. Call to Order.
2. Consider Final Plat for Monticello Country Club.
3. Public Hearing - RE: A Proposal under the Municipal
Industrial Development Act.
5. Approval of Remaining December Bills.
6. Adjourn.
Council Agenda - 12/27/83
AGENDA SUPPLEMENT
2. Consider Final Plat for Monticello Country Club. (T.E.)
A. REFERENCE AND BACKGROUND:
Jim Metcalf, representing the Monticello Country Club, contacted me
last week to find out about getting their final plat approved so
that it could be recorded before the end of the year. He stated
that it was his recollection that the Council and Planning Commission,
in the early discussions about this matter, had consented to holding
a combined meeting for the express purpose of getting this plat
completed before the end of the year. I told Jim that I had no
recall of such an agreement. I explained that the original discussions
in the City Hall Conference Room with Jean Brouillard and Howard
Gillham was that we would make the necessary arrangements to re-
assign the assessments and take care of their delinquencies providing
they, as the developers, would proceed with the subdivision as it
is laid out in the ordinance. What I was intending to express to
them is that they ought not ask for additional favors in going through
the subdivision process, that the City was being very responsive
and cooperative and to request more special favors would only create
problems. Mr. Metcalf's reference to item number 2 in the final
signed agreement is that the City accepts the obligation as much as
the developer to got the process completed by the end of the year.
While that certainly was not my intent when stipulating this provision,
I have no trouble with proceeding in this manner.
On Tuesday, December 20, Mayor Grimamo called me and certified the
request for this item appearing on thu agenda for the already
established opecial meeting of December 27. Gary Anderson is in
tho process of trying to contact at least three Planning Commission
members to request their presence and a motion from them so that we
at least meet the minimum requirements of our subdivision ordinance.
If we are unable to contact a quorum of Planning Commission members,
the Council has the right to waive the requirement and take their own
action on the plat without previous Planning Commission action.
C. STAFF RECOMMENDATION.
In order to expedite this entire matter, I recommend that the plat be
reviewed and granted approval if all of the previously mentioned con -
corns have boon adequately addreasod.
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Council Agenda - 12/27/83
3. Public Hearing - RE: A Proposal under the Municipal Industrial
Development Act, and
4. Consider Adoptinq the Resolution of Preli minary Approval. (T. E.
A. REFERENCE AND BACKGROUND:
These two items, which are interconnected , arc the original reason
why the special meeting was set. There is little new information
to provide. Under the heading of public hearing, representatives
of Key Manufacturing will be present to discuss their proposal.
They should be providing a basic summary of their intent. Upon
the closing of the public hearing, the Council should consider
adopting the Resolution of Preliminary Approval. Again, I wish
to emphasize that this is not granting final approval. Basically,
the resolution states that it appears to be a feasible project under
the limitations of FS 474 and the Council is prepared to lend its
tax exempt status to the project. It is the adoption of this
resolution that is the official action the developers need to have
occur prior to the end of the year in the event the federal
legislature puts restrictions on industrial revenue bonds.
D. SUPPORTING DATA:
Copy of the resolution granting preliminary approval.
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RESOLUTION 1:0. 1983
RESOLUTION GIVING PRELIMINARY APPROVAL TO
A PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, REFERRING THE PROPOSAL
TO THE MINNESOTA ENERGY AND ECONOMIC
UEVELOPMENT AUTHORITY FOR APPROVAL, AND
AUTHORIZING PREPARATION OF NECESSARY
DOCUMENTS
WHEREAS, the welfare of the State of Minnesota (the "State") requires
active promotion, attraction, encouragement and development of economically
sound industry and eoaanerco through governmental acts to prevent, so far as
possible, emergence of blighted lands and areas of chronic unemployment, and
it is the policy of the State to facilitate and encourage action by local
government units to prevent the economic deterioration of such areas to the
point where the process can be reversed only by total redevelopment through
the use of local, state, and tederal tunds derived tram taxation, with the
attendant necessity of relocating displaced persons and of duplicating
public services in other areasi and
WHEREAS, technological change has caused a shift to a significant degree
in the area of opportunity for educated youth to processing, transporting,
marketing, service and other industries, and unless existing and related
industries are retained and new industries are developed to use the available
resources of the City of Monticello (the "City"), a large part of the existing
investment of the community and of the State as a whole in educational and
public service facilities will be lost, and the movement of talented, educated
personnel of mature age to areae where their services may be effectively used
and compensated and the lessening attraction of persons and businesses from
other areas for purposes of industry, commerce and tourism will deprive the
City and the State of the economic and human resources needed as a base for
providing governmental services and facilities for the remaining population) and
WHEREAS, the increase in the amount and cost of governmental services
requires the need for more intensive development and use of land to provide an
adequate tax base to finance these costal and
WHEREAS, a representative of Key Tool G Plastics, Inc. (the "Developer"),
has advised this City Council that it, desires to acquire land and construct a
now building for industrial use thereon in the City (hereinafter referred to au
the "Project"); and
WHEREAS, the existence of the Project in the City will contribute to more
intensive development and use of land to increase the tax base of the City and
overlapping taxing authorities and maintain and provide for an increase in
opportunities for employment for residents of the City, including economically
disadvantaged or unemployed Individualst and
WHEREAS, the City has been advised that conventional, commercial financing
to pay the capital cost of the Project is available at such costs of borrowing
that the economic feasibility of operating the Project would be significantly
reduced, but that with the aid of municipal financing, and its resulting
lower borrowing cost, the Project is economically more feasible; and
WHEREAS, this Council has been advised by a representative of the
Developer that on the basis of information submitted to them and their
discussions with representatives of area financial institutions and potential
buyers of tax-exempt bonds, industrial development revenue bonds of the City
could be issued and sold upon favorable rates and terms to finance the Project;
and
WHEREAS, the City is authorized by Minnesota Statutes, Chapter 474, to
issue its revenue bonds to finance the cost, in whole or in part, of the
acquisition, construction, reconstruction, improvement, or extension of
capital projects consisting of properties used and useful in connection with
a revenue producing enterprise, such as that of the Developer, and the issuance
of such bonds by the City would be a substantial inducement to the Developer
to construct its facility in the City; and
.E1L^ti,
on. the basis of i:.:o:watica given theC. -r to iit appaarc
that it would be in the best interest of the City to issue its industrial
development revenue bonds under the provisions of Chapter 474 to finance the
Project of the Developer in an amount presently estimated not to exceed
$475,000.00.
NOW, THEREFORE, BE 1T RESOLVED THAT:
1. The Project is hereby given preliminary approval by the City and
the isuuance of the revenue bonds for such purpose and in such amount approved,
subject to approval of the Project by the Minnesota Energy and Economic
Uevelopment Authority and to the mutual agreement of this body , the Developer
and the initial purchaser of the bonds as to the details of the bonds and
provisions for their payment. In all events, it is understood , however, that
the bonds of the City shall not constitute a charge, lien or encumbrance legal
or equitable uFon any property of the City except the Project, and the bonds,
when, as, and if issued, shall recite in substance that the bonds, including
interest thereon, is payable solely from the revenues received from the Project
and property pledged to the payment thereof, and shall not constitute a debt
of the City.
2. In accordance with Minnesota Statutes, Section 474.01 ,-Subdivision 7a,
the Mayor of the City is hereby authorized and directed to submit the proposal
for the Project to the Minnesota Energy and Economic Development Authority for
approval of the Project. The Mayor and other officers, employees and agents of
the City are hereby authorized to provide the Minnesota Energy and Economic
Development Authority with any preliminary information needed for this purpose,
and Lila City Attorney is authorised to initiate and assist in the preparation
of such documents as may be appropriate to the Project, it it is approved by
the Minnesota Energy and Economic Development Authority.
d. The law firm of 11olmes a Craven, Chartered, is authorized to act as
Uusd Counsel and to assist in the preparation and review of necessary documents
relating to fila Project and bonds Issued in connection therewith. The Mayor,
City Attorney, and other officers, employees and agents of the City are hereby
aLt Y.vriLetl to aabut Baud Ccus,awl in Lim i,ivi,aiiti„n or 1.Jtn dLQcw"nta.
4. In accordance with Minnesota Statutes, Section 474.01, Subdivision
11, the City Clerk/Treasurer and other officers, employees and agents of the
City are hereby authorized and directed to encourage the Developer to provide
employment opportunities to economically disadvantaged or unemployed
individuals. Such individuals may be identified by such mechanisms as are
available to the City, including a first source agreement in which the
Developer agrees to use a designated State employment office as a first
source for employment recruitment, referral, and placement.
Adopted this day of , 1983.
Thomas A. £idem
City Administrator
Arve A. Grimsmo, Mayor
GENERAL FUND DECEMBER 1983
AMOUNT
CHECK N0.
Northern States Power - Utilities for November 1983
6,877.73
18224
Phillips Petroleum - Gas
14.10
18225
V.icglcr, Inc. - Payment on Caterpillar -'930 Loader
12.586.81
1822b
U.S. Postmaster - Stamps
200.00
18227
Banker's Life Insurance - Group Health Ins. for November
3.b14.913
18228
Tom Eidem - Mileage for December
82.22
18229
State Capitol Credit Union - Payroll withholdings
144.04
18230
Gerald Hermes - Janitorial Services at Library
125.00
18231
MN. State Treasurer - Watercraft Receipts
70.00
18232
MN. State Treasurer - Snowmobile Receipts
130.00
18233
MN. State Treasurer - PERA Secretary - PERA Withholdings
1,371.3 5
18234
Wright County State Bank - Purchase of 89 Day Banker's Accept.
488,074.53
18235
Wright County Highway Depart. - Sand/Salt Mix
1,785.00
18236
Dr. Joel Erickson - Euth. Services for July thru Nov. 1983
380.00
18237
Mobil Oil Credit Corp. - Gas for Water 6 Fire Depart.
139.52
18238
St. Cloud Restaurant Supply - Supplies
34.32
18239
Treasurer, State of Minnesota - Water Testing Services
197.8 3
18240
^
The Plumbcry - Cleanhumidifier at Library
28.00
18242
Monticello Fire Department - Wages thru 12/12/83
524.00
1.8243
Gruys, Johnson and Assoc. - Computer Services for October 1983
290.00
18244
Feed -Rite Controls, Inc. - Operating supplies for Water Depart.
2,292.7b
18245
Mayor Arvo Grimsmo - Salary for Orderly Annexation Board Mtg.
75.00
18246
Leroy Engstrom - Salary for Orderly Annexation Board Mcg.
165.60
18247
Franklin Donn - Salary for Orderly Annexation Board Mtg.
90.00
18248
Marjorie Gootzko - Salary for Orderly Annexation Board Mtg.
142.50
18249
Tom Salkowski - Salary for Orderly Annexation Board Mtg.
125.00
18250
First Bank Minneapolis - Public Fund Charges
4.00
18251
Central Eyewear - Safety Glasses
17.00
18252
Jim Hatch Sales Company, Inc. - Gloves
54. b0
18253
Phillips Petroleum Company - Gas for Water Department
19.(o7
18254
Clutch s U -Joint Brooklyn Park - Parts
29.80
18255
Monticello Fire Department Relief Assoc. - 2% State Aid Contrib
16,716.00
18256
Equitable Life Assurance Society of the U.S. - Ins Withholdings
40.00
18257
Allen Pelvit - Mileage
23.02
18258
Leaf Brothers, Inc. - Uniforms for Hovembor 1983
163. 10
18259
SMA Construction - Parte
5.20
18260
Northern States Power - Installation of Street Light at Meadow -)ak
304.00
18261
Northern Power Products, Inc. - Parts
17. 39
18262
TOTAL CASH DISBURSEMENTS
$537,079.25
LIQUOR FUND DECEMBER 1983
TOTAL CASH DISBUSEMENTS $39,238.15
AMOUNT
CHECK
NO. I
Northern States Power - Utilities for November 1983
458.03
11015
Banker's Life Insurance - Group Health Ins. for November
361.26
11016•
State Capitol Credit Union - Payroll Withholdings
20.00
11017 ?
MN. Department of Revenue - Sales Tax for November 1983
6,113.41
11018
MN. State Treasurer - PERA Withholdings thru 12/15/83
164.67
11019
Ed Phillips 6 Sons Company - Wine and Liquor Purchase
15,106.06
11020
Griggs, Cooper and Company, Inc. - Wine and Liquor Purchase
7,766.25
11021
Quality Wine and Spirits Company - Wine Purchase
754.64
11022
void
11023
Twin City Wine Company - Wine Purchase
3,695.97
11024
Old Dutch Foods, Inc. - Misc. Purchases
237.12
11025
Ed Phillips 6 Sons, inc. - Liquor and Wino Purchases
4,560.74
11026
TOTAL CASH DISBUSEMENTS $39,238.15