City Council Agenda Packet 10-15-1984AGENDA FOR THE SPECIAL MEETING OF THE CITY COUNCIL
Monday, October 15, 1984 - 7:30 P.M.
Mayor: Arve A. Grimsmo
Council Members: Fran Fair, Jack Maxwell, Dan Blonigen, Ken Maus
1. Call to Order.
2. Public Hearing - Proposals Under the Municipal Industrial
Development Act.
3. Consideration of Adopting Resolutions of Preliminary Approval.
4. Adjournment.
C
Special Council Agenda - 10/15/84
2. Public Hearing - Proposals Under the Municipal Industrial Development
Act and
3. Consideration of Adopting Resolutions of Preliminary Approval. (A.P)
A. REFERENCE AND BACKGROUND:
Both of these items are inter -related. They are the sole reason
why this special meeting was called. By Minnesota Statute 474,
a public hearing must be held for the purpose of 1) allowing
;he developer(s) to inform the City of their proposal and 2) allowing
the public to comment on the proposals. The second part of
this would allow the Council to give preliminary approval of
the project or deny it based on the outcome of the hearing.
Because we have two proposals at hand, both should be heard
and acted upon separately. Also, because one proposal is more
common than the other, we should hear that proposal first, act
on it, and then proceed to the second proposal. As in the past,
representatives for the projects will be present to explain
their proposals and to answer any questions the Council or the
public may have.
Gary Le Frombolse of Construction 5 will explain his Washington
Business Cantor West Offica/Warehouse proposal. This should
be followed by the Monti Stadia Development Company, which will
be represented by Dick Maw. I would like to remind you that
giving preliminary approval does not grant final approval. Basically,
the resolution of preliminary approval states that the project
appears to be f000l blo under the limitations of M.S. 474 and
that the Council is prepared to land its tax exempt status to
the project. It is the adoption of those resolutions that is
needed in order for those developers to submit their IRB applications
to the Minnesota Department of Energy and Economic Devolopment
Authority for competition in the last allocation process for
1984.
C. STAFF RECOMMENDATION:
No recommendation Is given. Each proposal should be judged
on its morito.
D. SUPPORTING DATA:
Copiao of tho rasolutiono granting preliminary approval.
ME
RESOLUTION 1984 W
RESOLUTION GIVING PRELIMINARY APPROVAL TO
A PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, REFERRING THE PROPOSAL
TO THE MINNESOTA ENERGY AND ECONOMIC
DEVELOPMENT 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 commerce 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 unite 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 federal funds derived from taxation,
with the attendant necessity of relocating displaced persons and of duplicating
public services in other areas; 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 now industries are developed to use the available
resources of the City of Monticello (the "City"), a largo 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 ago to areas where their cervices may be effectively
used and componsatod and the lessoning 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 baso
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 those costs; and
WHEREAS, a representative of Washington Business Cantor Meat (the "Developer"),
has advised this City Council that it desire@ to acquire land and construct
a new building for industrial use thoreon in the City (hereinafter referred
to as 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 rosidonto of the City, including
economically disadvantaged or unemployed individuals: and
WHEREAS, the City has been advised that conventional, commercial financing
to pay the capital coat of the Project is available at such costs of borrowing
that the economic feasibility of operating the Projoct would be significantly
reduced, but that with the aid of municipal financing, and its resulting
lower borrowing coat, the Project is economically more feasible; and
9
Resolution 1984 6
Page 2
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
WHEREAS, on the basis of information given the City to date, it appears
that it would be in the best interest of the City to issue its industrial
development revenue bonds under the provis lone of Chapter 474 to finance
the Project of the Developer in an amount presently eatimated not to exceed
$800,000.00.
NOW. THEREFORE, BE IT RESOLVED THAT:
1. The Project is hereby given preliminary approval by the City
and the issuance of the revenue bonds for such purpose and in such amount
approved, subject to approval of the Project by the Minnesota Energy and
Economic Development Authority and to the mutual agreement of this body,
the Developer and the initial purchaaer 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 upon 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 conatituto 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 the City Attorney ie authorized to initiato and assist
in the preparation of such documents as may be appropriate to the Project,
If it is approved by the Minnesota Energy and Economic Development Authority.
3. The law firm of Holmes G Craven, Chartered, is authorized to
act as Bond Counsel and to assist in the preparation and review of necessary
documents relating to the Project and bonds issued in connection therewith.
The Mayor, City Attorney, and other officers, employees and agents of the
City aro horaby authorized to aeaist Bond Counsel in the preparation of
ouch documents.
Resolution 1984 9
Pago 3
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
Thomas A. Eldom
City Administrator
C
Arve A. Grimsmo, Mayor
0
RESOLUTION 1984 N
RESOLUTION GIVING PRELIMINARY APPROVAL TO
A PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, REFERRING THE PROPOSAL
TO THE MINNESOTA ENERGY AND ECONOMIC
DEVELOPMENT 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 commerce 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 federal funds derived from taxation,
with the attendant necessity of relocating displaced persons and of duplicating
public services in other areae; 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 now industries are developed to use the available
resources of the City of Monticello (the "City"), a largo part of the
existing investment of the community and of the State an 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 eervicos may be
effectively used and compensatod and tho lessening attraction of persona
and busineanos from other areae for purponoo 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 eervicos 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 baso to finance those costo: and
WHEREAS, a ropr000ntativu of Monti Stadia Dovolopmont Company (the
"Developer"), has advised thlu City Council that it daoiLes to acquire
land and construct a now building for industrial use thereon in the City
(hereinafter referred to as the "Projects'); and
WHEREAS, the existence of the Project in the City will contribute
to more intensive dovolcpmont and use of land to incroaoo the tax base
of the City and overlapping taxing authorltion and maintain and provide
for an increase in opportunities for employment for residents of the City,
including economically dioadvantagod or unemployed individuals; and
WHEREAS, the City has boon advised that convontional, commercial
financing to pay the capital coat of the Project La available at ouch
0
Resolution 1984
Page 2
coats 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 coat, 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 Segued 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 coat, 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
WHEREAS, on the basis of information given the City to date, it appears
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
$20,000,000.00.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The Project la hereby given preliminary approval by the City
and the issuance of the revenue bonds for ouch purpose and in ouch amount
approved, subject to approval of the Project by the Minnesota Energy and
Economic Development Authority and to the mutual agreement of this body,
the Developer and the initial purchaser of the bonds so to the details
of the bonds and provisions for their payment. In all ovento, it is understood,
however, that the bonds of the City shall not constitute a charge, lion
or encumbrance legal or equitable upon any property of the City except
the Project, and the bonds, when, as, and if issued, shall raclto 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 in hereby authorized and directed to submit the
proposal for the Project to the Mlnnosota Energy and Economic Development
Authority for approval of the Project. The Mayor and other officers,
employees and agents of the City aro hereby authorized to provide the
Minnesota Energy and Economic Development Authority with any preliminary
information needed for this purpose, and the City Attorney Is authorized
to initiate and Asolat in the preparation of ouch documents as may be
appropriate to tho Project, if it is approved by the Minnesota Energy
and Economic Development Authority.
Resolution 1984 0
Pago 3
3. The lav firm of Holmes 6 Graven, Chartered, is authorized to
act as Bond Counsel and to assist in the preparation and review of necessary
documents relating to the Project and bonds issued in connection therewith.
The Mayor, City Attorney, and other officers, employees and agents of
the City are hereby authorized to assist Bond Counsel in the preparation
of such documents.
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
Arve A. Grimamo, Mayor
Thomas A. Eidem
City Administrator
O -e
Mayor and Fellow Council Members,
Since I agreed to serve on the Fire Station Building Committee,
I am somewhat remiss in not being present at the October 9 meeting
when the final decision will be made. However, guilt feelings
can't make me change my plans or diminish the pleasure in a
trip to Kentucky.
I feel the Committee accomplished its goal in planning
a fire station. The architect started with a 9600 square foot
building which incorporated all the specifics outlined by the
Fire Department. The preliminary plan presented to you drastically
scales down the original. At the same time, the basic requirements
in the apparatus room, storage and personnel areas and offices
have been met. The more public areas --meeting room, bathrooms,
kitchen, and the entrances --will serve the Fire Department well
but could be used by the general public if needed. I think
the final plan will meet the needs, has potential for expansion,
and will be attractive to the taxpayers and be an asset to the
City. In my opinion, the architect and the Committee did a
very responsible job.
Fran
INDIVIDUAL PUNT ACTIVITY REPORT
MONTH OF Seotember , 1984
PERMIT
NUMBER
DESCRIPTION
PF
NAME/LOCATION VALUATION
Fr
PERMIT
SURCHARGE
PLUMBING SURCHARGE
84-679
Burger zing Restaurant
C
Burger King Corporation/200 Lauring L $
130,400.00
S 509.00
$ 65.20
S 36.00 $ .50
84-684
24 Unit Apartment Building
Q
Construction 5, Inc./615 Lauring Lane
841,700.00
1,854.25
420.85
151.00 .50
84-685
Stair Entrance G Door
Opening
%C
Dr. Maus/201 West Broadway
6,000.00
56.50
3.00
84-686
House Reshingle
ND
Clarence McCarty/312 East River Stream.
1,400.00
14.30
.70
84-688
Building Remodel
4C
Marcus Fleahman/143 East Broadway
30,000.00
193.00
15.00
84-689
Concession Building
C
Monticello High School/1006 E. Broadwr,y
16,100.00
117.10
8.05
11.00 .50
84-690
Concession Building
C
-Pinewood Elementary School/1216 w. Brdadway
12,800.00
97.30
6.40
23.00 .50
84-691
Single Family Dwelling
3P.-
Lyle Olson/409 E. River St. I
65,800.00
330.40
32.90
27.00 .50
84-692
Single Family Dwelling
SPi
Gene Pair/1119 Club View Drive
97,900.00
426.70
48.95
27.00 .50
i 84-694
Detached Accessory Buildin4
C:
Phil Ritze/1403 W. River Street
9,800.00
79.30
4.90
84-695
Single Pandy Dwelling
-F1
Ultra Homes, Inc./2881 Red Oak Circle
52,600.00
290.80
26.30
I 23.00 .*0
84-696
Attached Garage
-IG
Marvin George Builders/22 Fairway Dr.�
6,000.00
56.50
3.00
•
TOTALS $1,270,500.00
,
$4,025.15
5635.25
$298.00 $3.50
I
PLAN CHECKING
I
I
1
I
�
84-679(
Burger Ring Restaurant,
C I
Burger King Corporation/200 Learing 4
S 330.85-
t
84-684
124 Unit Apartment Building
!Concession
-(F
Construction 5, Inc./615 Lauring LanelI
1,486.71
84-689
Building
C I
Monticello High School/1006 E. Broad wjy
76.11
84-690
!Concession Building
C'
Pinewood Elementary School/1216 W. Brpadway
63.24
I I
I
I
$1,956.91
�
.
I
t
i
I
TOTAL REVENUE
$6,918.81
1
ITOTALS
19 3 6,280.06 $638.75 $1,270,500.04 160 119 -_�
CITY OF MCIffICELLO
Monthly Building Department Report
PERMITS and USES
Month ofseptemberl9ea
PERMITS ISSUED
"This Same Month Last Year
This Year
Month
Month Auguet
MOnthSeptember Last Year To Date
To Date
RESIDENTIAL
Numbsr
10
6 10 51
78
Valuation
E 72,559.00
$ 1,065,400.00 $ 481,455.00 S 2, 296, 127.90
S 3,386,627.00
Fees
557.32
4,459.66 3,262.01 11,667.04
17,276.77
Surcharges
36.56
532.70 240.94 1,149.38
1,683.90
COMMERCIAL
Number
3
6 10 23
31
Valuation
157,900.00
205,100.00 813,900.00 1,896,112.40
1,145,429.00
Fees
1,040.41
1,522.40 4,848.45 9,896.16
7,846.78 1
Surcharges
78.95
102.55 407.45 948.44
572.85
INDUSTRIAL
Number
2
5
Valuation
590,000.00
1,776.500.00
Fees
1,862.40
8,318.53 1
Surcharges
295.00
888.65
PLUMING
!
Number
Fees
2
64.00
7 11 33
298.00
44
Surcharges
1.00
406,00 1,099.00
3.50 10.50 23.00
1,665.00
22,00
OTHERS
Number
1
1 10
2
Valuation
10.00
8,000.00 40,220.00
Fees
68.50 548.40
20.00
Surcharges
4.00 17.90
TOTAL NO. PERMITS
16
191 32 119
160
TOTAL VALUATION
$230,459.00
$1,270,500.001 $1,303,355.00 $4,822,460.30
$6,308,556.00
TOTAL FEES
1,671.73
6,280.061 0,584.96 25,093.00
35,127.06
TOTAL SURCHARGES
116.51
638.751 662.89 2.433.72
3-167.40
CURRENT MONTH
to Date i
PERMIT NATURE
Number
Valuation
PERMIT I This Year
Last Year!
Single Family
3
S 1,047.90 : 108.15 S 216,300.00 24
21 !
Duplex
1
1
multi-remily
1
3,340.96 420.85 841,700.00 3
6
Commercial
4
1,272.90 64.55 169,100.00 12
11
Industrial
4
i
1
Res. Garages.
1
56.50 3.00 6,000.00 16
7
Sipis
0
3
!
Public Buildings
2
0
ALTERATION OR REPAIR
Dwellings
1
14.30 .70 1,400.0 34
12
Commercial
2
249.5o 18.00 36,000.00 17
f l
Industrial
1
2
i
PLUMBING
All types
7
298.00 3.50 44
33
ACCZSSORY STRUCTURLS
swimming Pools,
0
3
backs
0
4
TEMPORARY PERMIT
0
2
DEMOLITION
2
2
ITOTALS
19 3 6,280.06 $638.75 $1,270,500.04 160 119 -_�