City Council Agenda Packet 06-12-1995AGENDA
REGULAR MEETING - MONTICELLO C1TY COUNCIL.
Monday, Jame 12,1998.7 p m.
Mayor:Brad Fyle
Council Members: Shirley Anderson, Clint Herbst, Brian Stumpf, Tom Perrault
Call to order.
2. Approval of minutes of the special meeting held May 22, and the regular
meeting held May 22, 1998.
3. Consideration of adding items to the agenda.
A.. Consideration to adopt a resolution calling for a public hearing on the
proposed modification of the Redevelopment Plan for Redevelopment
Project No. 1, the TIF Plane for TIF District Nos. l-1 through 1-18, and
the TIF Plan for TIF District No. 1.19.
B. Consideration to adopt a resolution approving the Private
Redevelopment Contract among the HRA, the City, and Presbyterian
Homes and the Subordination Agreement between the HRA, the City,
and the Trustee.
C. Consideration of final plat approval of the Pinehurst residential
subdivision. Applicant, Eugene Bauer.
�• fiu���} -Tfli[i( Julil-aje llp4,,4l
4. Citizens cornmenta/petitions, requests, and complaints.
8. Public Hearing --Consideration of a resolution authorizing the issuance of
housing revenue bonds for the Mississippi Shores Senior Housing project.
8. Consideration of reconsidering approving the issuance of a gambling license
to the Minnesota License Beverage Association Children's Fund - Joyner
Lanes.
7. Consideration of a request for a parking stall and driveway design
conditional use permit. Applicant, Ray Schmidt.
8. Consideration of a request for a conditional use permit which would allow
outside storage in an I.1 zone. Applicant, Ray Schmidt.
9. Consideration of a conditions) use permit which would allow expansion of an
ambulance garage. Applicant, Monticello -Big Lake Hospital District.
Agenda
Monticello City Council
June 12, 1995
Page 2
10. Consideration of a request for rezoning from PZM (performance zone mixed)
to B-4 (general business). Applicant. Riverstreet Station.
11. Consideration of a request for a conditional use permit to allow open and
outdoor sales from a wagon or cart. Applicant, Riverstreet Station.
12. Consideration of an update to a conditional use permit allowing outside
sales. Applicant, Dave Peterson.
13. Consideration of accepting 1894 audit report for the City of Monticello.
14. Consideration of an ordinance amendment regarding clear water entry into
the sanitary sewer system.
15. Consideration of adopting a policy for accepting and processing subdivision
applications.
18. Consideration of approving annual renewal of municipal liquor licenses.
17. Consideration of a resolution approving the issuance of a gambling license
renewal for the VFW Club.
18. Consideration of adopting a resolution supporting membership in a newly-
established
ewlyestablished Local Government Nuclear Waste Coalition for the purpose of
encouraging the development of an interim spent feel storage facility.
18. Consideration of authorizing advertisement for bids for sealcoating project.
20. Consideration of purchase of flow monitor equipment.
21. Adjournment.
MINUTES
SPECIAL MKC11NG - MONTICELLO Cr1rY COUNCIL
Monday. May 22,1995 - 5 p.m.
Members Present: Brad Fyle, Shirley Anderson, Climt Herbst, Brian Stumpf, Tom
Perrault
Members Absent: None
A special meeting of the City Council was held for the purpose of interviewing the
following four engineering consultant firms for the vvaetewater treatment plant
expansion project.
Short Elliott Hendrickson Inc. (SEH),
SEH was represented by John Stodola, Bob Stark, and Kurt Mayer. John
Stodola noted that SEH is very experienced and would be able to meet
Monticello's required time table for construction. They have an excellent
working relationship with the Minnesota Pollution Control Agency, would
provide continuous open communication during the project, and can help the
City obtain financial assistance.
Bob Stark suggested that the City consider am oxidation ditch process
rather than duplicating the present system as referenced in the facilities
plan, as the oxidation ditch process could reduce construction cost for the
immediate project and long-term future expansions. The oxidation ditch
process offers many advantages over the present treatment system such as:
1) providing a high level of nitrification, which will meet more stringent
effluent requirements, 2) a longer detention time and can easily handle bigh
loads, 3) drastically reducing pumping requirements, which reduces
operation cost. and 4) allowing for cost-effective, organized plant expansions.
Stark also suggested the following changes to the facilities plan:
1) installation of static fine screens in lieu of a new interim primary
clarifier to remove solids, 2) converting existing intermediate clarifiers to
chlorine contact basins in lieu of construction of an additional chlorine
contact basin, 3) converting the existing anaerobic digesters to aerobic
digesters, and 4) converting the two existing final clarifiers and two existing
aeration basins into sludge storage. It was noted by John Stodola that they
would amend the existing facilities plan to include the suggested changes
rather than rewrite the entire plan.
Public Works Director John Simola asked whether converting the anaerobic
digesters to aerobic would result in more or less odors, and would the final
sludge product be more or less treated. John Stodola stated that aerobic
digesters will not create additional odors, and the suggested treatment
would result in class B sludge.
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Special Council Minutes - 6/22!88
TKDA was represented by Dave Kirkwold, Bob Callery, and Duane Prow.
Dave Kirkwold stated that it was their view that the current fatalities plan
was too costly for a city of Monticello's size and suggested that the City
consider either an oxidation ditch process or a trickling filter/solids contact
process.
Kirkwold explained that an oxidation ditch system would be comprised of
two new primary clarifiers, two oxidation ditches, and two new final
clarifiers, which would be constructed off line and would be hooked up when
construction was complete. This system would reduce the number of pumps
needed to operate the plant. He also noted that it may be possible to use
the current aeration basins and clarifiers as sludge storage tanks.
Bob Callery explained that another alternative is the trickling filter/solids
contact process, which minimizes the amount of activated sludge process.
There would be no need for additional aeration tanks, and it would have the
ongoing benefit of not having to expend energy to aerate the water.
Callery also noted that an oversight was made when preparing the proposal,
and engineering costs would need to be added. It was also noted that the
existing facilities plan would be amended by TKDA to incorporate the
necessary changes.
Public Works Director John Simola asked what type of sludge would be
produced with each alternative, and if the process would be anaerobic or
aerobic. Dave Kirkwold stated that the anaerobic digester process would be
utilized, and the sludge would be similar to what is currently produced.
Countalmember Anderson asked if TKDA's proposal included the coat to add
odor control. Kirkwold responded that the cast to construct odor controls
would need to be added to each alternative.
Simola questioned whether either process suggested by TKDA would lead to
easier odor control, especially in light of the egg processing facility located
in town. Kirkwold noted that the possibility for emissions is most prevalent
in the primary clarifier and that the trickling filter/oxidation ditch would be
comparable to the current treatment; however, construction of a small
aeration basin for the primary clarifier could be studied to help control odor.
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Special Council Minutes - 6/27/85
HDR Eneineering. Inc.
HDR was represented by Bob Peplin, Kurt Sparks, and Scott Wallace. Bob
Peplin noted that HDR has sufficient experience to stay on budget and stay
on schedule for this project. It was also noted that they have an 85% ratio
on return customers, indicating that customers have been happy with the
work completed by HDR in the past.
Poplin suggested that the City consider two additional alternatives to that
suggested in the facilities plan: 1) an oxidation ditch process, or
2) sequencing batch reactors (sbr). These alternatives would result in a
better plant for less money, would require only 6 pumps versus the 60
pumps needed with the current plant, and would result in the ability to
construct the new addition while continuing to use the current plant. These
alternatives would also simply future expansion and would provide the
ability to use common -wall construction to help minimize the cost of future
development. Peplin noted that the total cost of the project should be
between $6 million and $7 million, including odor controls, which calculates
to $2-$3 per gallon versus the present $6.60 per gallon at the current
facility.
Peplin went on to explain that the system suggested by HDR would upgrade
the sludge from class B to class A, which is pathogen free and would
eliminate the City having to search for land application sites. The class A
sludge can be disposed of as a fertilizer in ways such as selling to a farm
coop or bagging it and distributing to city residents.
Scott Wallace proposed that the City use the sequencing batch reactor (ebr)
process, which could be sized for 4 mgd and beyond. He explained that a
new lift station would be constructed at the head of the plant, and the
wastewater would then enter the sbr process. The wastewater enters the
tanks, is aerated, then aeration is turned off and the tanks settle, which
acts as a clarifier. The flow is cycled between the tanks. This process
combines much of the current process into four tanks. The wastewater then
goes through the final disinfection process and is discharged to the river.
As the city grows, only an additional treatment basin is added. Wallace
also noted that the existing tankage could be reused to avoid the cost of
additional tank construction.
Kurt Sparks reported that the proposed treatment facility will most new
and future permit regulations and that nitrogen and phosphorus removal
facilities can be added as required.
Bob Poplin noted that the oxidation ditch system is a good process that
could also be used; however, the disadvantage is that it requires a large
amount of concrete and could be up to two times the size of the sbr process.
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Special Council Minutes - 6!22/'88
John Simola asked what treatment is proposed to achieve the proposed
class A sludge. It was noted by HDR that some plants use aerobic
treatment and others use lime to achieve the class A sludge.
Simola also asked whether the sbr units could adapt to increased nutrient
limits. Scott Wallace replied that the sbr process is good for nutrient
removal because the aeration equipment can be sized to oxidize the
ammonia to nitrate.
RCM/OSM was represented by Sam Claassen, Ed DeLaForest, Larry
Anderson, and Charlie Weerts.
Sam Claassen noted that the RCM/OSM team prepared the facilities plan
for the City of Monticello and that there may be some minor updates to
make to the plan. He encouraged the City to consider joint solids handling
with the City of Buffalo as a solution to the City's difficulty in finding land
for sludge application. Buffalo is considering lime stabilization and
composting with Wright County. Claassen also noted that, although the
facilities plan is based on achieving class B sludge, it may be in the best
interest of the City to consider class A sludge, and RCM/OSM would be
willing to explore other alternatives to those suggested in the facilities plan.
Claassen also suggested that the City undertake an odor control study and
that constructing the project in phases would be the most cost-effective way
to expand the treatment plant.
Kelsie McGuire of PSG commented that other firms have presented
alternatives to the fiidlities plan and asked if RCM/OSM had considered the
sbr process or an oxidation ditch process. Larry Anderson responded by
stating that they were not convinced that the sbr process would meet the
10 mgl BOD standard with high strength waste entering the plant. He also
noted that it was their view an oxidation ditch system would not be cost-
effective for the Monticello plant due to the site being located on a hilletde.
At the conclusion of the presentations by the four engineering firms, the meeting
was adjourned.
Karen Doty
Office Manager
Pepe 4
hUNITPES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, May 88,1995. 7 p.m.
Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Brian Stumpf, Tom
Perrault
Members Absent: None
Conaideretion of ap *ping minutes of he respilar meetingalh d Ma3E 8.1495.
and tie =6nnj joint men 'ngheldMay IS- 1995
AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND
SECONDED BY TOM PERRAULT TO APPROVE THE MINUTES OF THE
REGULAR MEETING HELD MAY 8,1895, AS WRITTEN. Motion carried
unanimously.
A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY TOM
PERRAULT TO APPROVE THE MINUTES OF THE SPECIAL JOINT MEETING
HELD MAY 15, 1995, AS WRITTEN. Motion carried unanimously.
Co aiddpratinn of adding items to the aoonda
]Economic Development Director 011ie Koropchak reported that the
MA members and Councilmembers Clint Herbst and Tom Perrault
interviewed Mr. Roger Cartoon for the HRA seat vacated by the
retirement of Ben Smith. Following the interview, the HRA elected
not to readvertise for the vacated seat and unanimously approved
recommending that Council appoint Mr. Carlson to the HRA. She
noted that it is Carlson intent to resign fk-om the Parks Commission
upon appointment to the HRA.
AFTER DISCUSSION, A MOTION WAS MADE BY SMRLEY ANDERSON
AND SECONDED BY TOM PERRAULT TO APPOINT ROGER CARLSON TO
THE HRA. Motion carried unanimously.
Public Works Director John Simola reported that at the May 8 Council
meeting, staff presented information regarding the possible purchase
of a 1 -tan bucket truck that would serve as a bucket truck and as
transportation within the parka and street departments: however.
Council restricted the budget to 810,000 for purchase of a
1 -ton bucket truck, and any proposed purchase beyond $10,000 would
Page 1 CA)
Council Minutes - 6N2M
require Council approval. Simola noted that two trucks have been
found, one in Kansas City for $10,500, and one in South Bend,
Indiana, for $12,500. Staff has also learned that Wright Hennepin
Electric will have a well -used 1 -ton truck for auction or bids in the
near future. It was staffs recommendation that Council increase the
allowable expenditure to $15,000 in order to find a truck that is in
good serviceable condition and is safe.
After discussion, a motion was made by Shirley Anderson and
seconded by Tom Perrault to approve an expenditure of up to $15,000
without Council approval to purchase a 1 -ton bucket truck. Voting in
favor: Shirley Anderson, Tom Perrault. Opposed: Brad Fyle, Brian
Stumpf, Clint Herbst. Motion failed.
After discussion, it was the consensus of Council to authorize staff to
bid on the used 1 -ton truck owned by Wright Hennepin Electric.
City Administrator Rick Wolfsteller reported that the Minnesota
License Beverage Association (MLBA) Children's Fund is requesting
approval from the City for operating a pull -tab gambling operation at
Joyner Lanes. The MLBA Children's Fund is a charitable organization
based out of Minneapolis that contributes funds to various
organizations related to youth activities. He noted that in the past,
the Monticello Jaycees have run the pull -tab operation at Joyner
Lanes; however, Joyner Lanes has now decided to allow the MLBA
Children's Fund to operate pull -tabs in their facility.
AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND
SECONDED BY SHIRLEY ANDERSON TO DENY ADOPTION OF THE
RESOLUTION SUPPORTING THE APPLICATION FOR A GAMBLING
LICENSE. It was Council's view that gambling licenses should be
operated by local organizations to ensure that profits are put back into
the local community. Voting in flavor. Brad Fyle, Shirley Anderson,
Clint Herbst, Brian Stumpf. Abstaining: Tom Perrault, as he is a
current member of the Monticello Jaycees. 11111'l e o ,- f "J 07 ` f c .i
D. Canaidpratinn of apyro�g a la of tax-forfeitad and_ nareala hn tba
Cnunue ALditor.
City Administrator Wol&teller reported that the Wright County
Auditor's office is preparing for a public auction sale of tax -forfeited
parcels for nonpayment of property taxes. The County is asking for
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Council Minutes - 5!22/95
the City's approval to proceed with a public auction on Lot 10, Block 3,
Hoglund Addition, which was originally tax -forfeited in 1992 but was
not sold at that time. He noted that the County also requested
verification of the outstanding special assessments in the amount of
$9,537.35 remaining unpaid against this lot. This figure has been
verified by the City Administrator.
AFTER DISCUSSION, A MOTION WAS MADE BY SHMLEY ANDERSON
AND SECONDED BY BRIAN STUMPF TO ADOPT A RESOLUTION
APPROVING LOT 10, BLOCK 3, HOGLUND ADDITION, TO BE SOLD AT
PUBLIC AUCTION BY THE WRIGHT COUNTY AUDITOR'S OFFICE AND
VFJW?YMG THAT THE SPECIAL ASSESSMENTS OUTSTANDING
AGAINST THIS PARCEL AMOUNT TO $9,637.35. Motion carried
++mar . usly. SEE RESOLUTION 95-39.
City Administrator Wolfsteller reported that due to a shortage of
equity needed to allow the senior housing project to continue,
Presbyterian Homes, in conjunction with the Wedum Foundation,
plans to inject $160,000 into the Mississippi Shores senior housing
project, which appears to be the most feasible way of continuing the
project. It is the intent of the Monticello Senior Housing Alliance to
purchase the project Brom Presbyterian HomeslWedum Affordable
Housing Group after five years if the project is still viable. In order for
Presbyterian Homes to develop the project privately, some of the past
resolutions regarding the housing program adoption and the City's
agreement to issue revenue bonds will need to be modified if the
Council is supportive of the new entity owning the project. At this
time, Council is asked to adopt a resolution calling for a public hearing
to be held June 12, 1996.
During discussion, Council expressed concerns regarding the
numerous changes in the project and regarding the City's name
appearing on bonds sold for a privately -developed project; however, it
was their view that additional information regarding the status of the
project could be provided to the Council by Pcosbyterim Homes at the
public hearing.
AFTER DISCUSSION, A MOTION WAS MADE BY CUNT HERBST AND
SECONDED BY BRIAN STUMPF TO ADOPT A RESOLT.MON CALLING
FOR A PUBLIC HEARING FOR JUNE 1% 1995, REGARDING MODIFYING
THE HOUSING PROGRAM AND FOR ISSUANCE OF REVENUE BONDS
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Council Minutes - 5/22/96
TO A NEW NON-PROFIT ORGANIZATION. Motion Carried unanimously.
SEE RESOLUTION 95-34.
A. Ms. Iris Peter, owner of parcel 4155-046-001060, requested that
Council lower the estimated market value of her property fi^om the
proposed $130,000 to $115,000, which is the price paid for the home
when purchased in September 1994. She stated she would not be able
to sell the home for $130,000 if on the market today.
City Assessor Jerry Kramber noted that the valuation of properties
along the golf course and the river were adjusted this year to more
accurately reflect the market value, and the property in question is
located on the golf course. It was his view that the $130,000 value is
in line with other properties in the area. He also noted that several
items were missed this year such as a porch that has been enclosed
and finished and two additional porches, which will be added to the
value nen, year.
After discussion, a motion was made by Shirley to reduce the 1996
market value of parcel 0155-046-001060 to $120,000. It was her view
that the valuation should reflect the price at which property will sell.
Motion failed for lack of a second.
AFTER FURTHER DISCUSSION, A MOTION WAS MADE BY BRIAN
SCUMPF AND SECONDED BY BRAD FYLE TO LEAVE THE ESTIMATED
MARKET VALUE AT $130,000 FOR PARCEL 0165.040-001060 AS
RECOMMENDED BY THE CITY ASSESSOR. Voting in favor. Brian
Stumpf, Brad Fyle, Clint Herbst, Tom Perrault. Opposed: Shirley
Anderson. Ms. Peter was informed that she may appeal the Council's
decision to the Wright County Board of Equalization.
City Assessor Jerry Kramber was present to report the following findings
after re-evaluating a number of parcels discussed at the Board of Review
meeting held on May 4, 1995.
165-035-004040 Wayne Spicer
1995 EMV: $77,200 Reduced to $70,700
166-059.002110 Barbara Hamilton
1995 ENV: $90,900 Reduced to $87,400
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Council Minutes - 5/22(95
155-0354004120 Tom Holthaus
1995 EMV: $97,500 No change
165-048-003010
Kathleen Klemz
1995 EMV: $159,000
No change
166-020-001020
Robert Walks
1995 EMV: $132,500
No change
165-500-123300 Robert Jameson
1995 EMV: $78,400 Reduced to $46,500
166-059-003060
1995 EMV: $79,900
165-010-052031
1995 EMV: $179,300
155-010-052070
1995 EMV: $18,100
166-010-052090
1995 EMV: $77,200
155.010-052131
1995 EMV: $28,000
165-010-009080
1995 EMV: $101,600
Tom Rowen
No change
Steve Johnson
Reduced to $168,000
Steve Johnson
No change
Steve Johnson
No change
Steve Johnson
No change
Marvin Arvideon
No change
165.048-001060 his Peter
1995 EMV: $130,000 No change
(reviewed by Council under citizens comments)
155-500.182101 Gary Host
1995 EMV: $92,300 Reduced to $88,100
AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERSST AND
SECONDED BY TOM MtRAULT TO ACCEPT THE RECOMMENDATIONS OF
THE CITY ASSESSOR FOR THE ESTIMATED MARKET VALUES OF THOSE
PROPERTIES THAT WERE RE-EVALUATED. Motion carried unanimously.
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Council Minutes - 5/22/95
Building Official Gary Anderson reported that Gene Bauer is requesting
preliminary plat approval to construct two three -unit townhouse buildings on
four platted lots, along with a conditional use permit which would allow two
three -unit townhomes to be constructed in an R-2 district. The request as
submitted to the Planning Commission also included a variance to the
requirement that driveways be located 3 ft from the side yard property line.
As a result of the discussion at the Planning Commission meeting, the
applicant modified the site plan eliminating the need for the variance.
Anderson went on to note that the Planning Commission recommended that
the preliminary plat and conditional use permit be approved based on the
finding that the preliminary plat and conditional use permit will result in a
development that is consistent with the character of the area and consistent
with the purpose and intent of the R-2 zoning district.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY CLINT HERBST TO APPROVE THE PRELIMINARY PLAT OF
THE PINEHURST RESIDENTIAL SUBDIVISION BASED ON THE FINDING THAT
IT IS CONSISTENT WITH THE CHARACTER OF THE AREA. Motion carried
unanimously.
A MOTION WAS MADE BY SHIM" ANDERSON AND SECONDED BY CLINT
HERBST TO APPROVE THE CONDITIONAL USE PERMIT ALLOWING TWO
THREE -UNIT TOWNHOMES IN AN R-2 DISTRICT CONTINGENT ON THE
FOLLOWING CONDITIONS:
A revised site plan is submitted indicating the distance between
the intersection and the curb cut of any driveway in excess of 40
ft, as well as compliance with the 3 -ft setback for driveways
from side property lines.
A grading/drainage plan is submitted which indicates drainage
patterns and grading necessary to divert surUaoe water runoff
away from the townhouse structure(s).
A landscape plan is submitted which indicates the trees on site
being preserved, as well as any additional landscape
improvements associated with the townhouse prgf eud..
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Council Minutes - 5122/95
The connection of public utilities is found to be acceptable by the
City Engineer and appropriate to the City's service capacities.
The applicant establishes a Property Owners Association for the
primary purpose of maintaining the property's common spaces.
Motion carried unanimously.
Jerry Shannon of Springsted, Inc., the City's financial consultant, reported
that eight bids were received on May 22 for the sale of $3,890,000 in G.O.
improvement bonds for various city improvements. The low bidder was
Norwest Investment Services, Inc1FBS Investment Services, Inc. with an
interest rate of 4.9647% and net interest cost of $1,119,735.83. It was
Shannon's recommendation that Council award the bid to the low bidder.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY TOM PERRAULT TO ADOPT A RESOLUTION ACCEPTING THE
BIDS AND AWARDING THE SALE OF 53,890,000 IN 0.0. IMpROVEMOENT
BONDS TO NORWEST INVESTMENT SERVICES, INCJFBS INVESTMENT
SERVICES, INC., AT AN INTEREST RATE OF 4.9647%. Motion carried
unanimously. SEE RESOLUTION 95-35.
f :nnaideratinn of approving c ontm t wit} Ancien RnvironmAntal - I RE I
&ud)L
Public Works Director John Simola reported that, as directed by Council at
the last meeting, City staff has negotiated a contract with Craig Anderson of
Buchen Environmental for development of an inflow and infiltration
reduction program, The project outline induded program development at a
cost of $3,500; public relations and education program, $7,000; inspections at
$42.50 each (minimum of 300 inspections); administration of inspection
program appointments, $3,000; and report, $4,000.
Simola also reported that a letter had been received from Visu-Sewer of St.
Louis Park, Minnesota, stating that they would like to submit a proposal for
the sump pump inspection project; however, it was noted that, after checking
references, Buchen Environmental was the best firm for the program. The
City Engineer supported Simola's recommendation, noting that many cities
use quality -based selection rather than selection by price alone.
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Council Minutes - 6/22/95
Rick Lymer of Visu-Sewer requested that Council allow them to submit a
proposal and noted that he could provide additional references.
Council discussed whether the I & I study needed to begin immediately or
could wait for additional proposals. Simola stated that it was just recently
discovered after development of the treatment plant facilities plan that it is
vital to obtain the I & I information for designing the wastewater treatment
plant expansion. He noted that if the I & I study is delayed, the treatment
plant will likely need to be designed for a larger capacity than if the flow of
clean water to the system can be reduced through the I & I program.
Atter discussion, a motion was made by Clint Herbst and seconded by Brian
Stumpf to allow additional propoaals to be received on the project. Voting in
favor: Clint Herbst, Brian Stumpf. Opposed: Shirley Anderson, Tom
Perrault, Brad Fyle. Motion failed.
A MOTION WAS MADE BY SWIM ANDERSON AND SECONDED BY TOM
PERRAULT TO APPROVE THE AGREEMENT WITH BUCHEN ENVIRONMENTAL
SERVICES FOR DEVELOPMENT OF AN I & I REDUCTION PROGRAM. Motion
is based on the finding that Buchen Environmental received a favorable
recommendation upon checking references. Voting in favor: Shirley
Anderson, Tom Perrault, Brad Fyle. Opposed: Brian Stumpf, Clint Herbst.
Motion passed.
10. (`onaid ration nfa =Qu at for ad .tie al 6MA to complete driveway and
��rt:ing let hares
surfacing . Arnax Storage GIgn Pea mt&
Glen Posusta, owner of the Amur Storage facility located south of Dundas
Road, requested an extension from the requirement to complete the driveway
and parking hard surfacing of his facility by August 1995. Because
additional buildings will be constructed in the future, Posusta preferred to
hard -surface the driveway area atter construction is complete to avoid
possible damage to the hard surfacing. He noted that the hard surfacing will
be completed between buildings q2 and 03 this week and between buildings
01 and q2 sometime this summer.
It was noted by staff that variances to the hard surfhcing requirement have
been approved in the past for areas on which the expansion will occur, but
driveway area hard surfacing hes been required.
AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND
SECONDED BY SHIRLEY ANDERSON TO MAINTAIN THE AUGUST 199E
DEADLINE FOR THE HARD SURFACING REQUIREMENT, AND P09USTA MAY
RETURN TO COUNCIL AT THAT TIME FOR CONSIDERATION OF AN
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Council Minutes - 6/22/95
EXTENSION. voting in favor. Clint Herbst, Shirley Anderson, Brad Fyie,
Brian Stumpf. Opposed: Tom Perrault.
11. Conaideration of ad antyng VWitima ggIgrning gnntingnffinal oaaipp=
ZMMQjf odor o fill] completion of siteimprov men a
Assistant Administrator O'Neill reported that the City has had difficulty in
the past making sure that site improvements such as grading, driveway
improvements, tree installation, and seeding/sodding are completed on a
timely basis in residential developments atter allowing occupancy prior to
such improvements being completed. The most significant reason for not
completing all improvements prior to occupancy is weather; however, he also
noted that many home buyers wish to complete site improvements on their
own after occupancy. The City has been granting conditional occupancy
permits with a notation that certain improvements are not completed, and
the mortgage company anti builder have been establishing an escrow fund to
assure completion of the improvements; however, often the escrow fund is
released by the mortgage company without inspection by a City official,
which sometimes results in improper completion of grading plans.
OWeill asked Council to consider establishing a City escrow policy to help
ensure that site improvements are completed properly. He noted that
requiring a deposit and reinspection fee for incomplete items may be one way
of encouraging improvements to be completed prior to occupancy.
Dave Klein, a local builder, supported the idea of an escrow but noted that
escrowing finds with both the City and mortgage companies would be very
difficult since the amount could be as high as $4,000 for each home and
results in doubling up of the security. Klein also requested that any escrow
policy adopted affect only new permits and not be retroactive to homes
already under construction.
OWeill suggested t21at the topic be discussed with the City Attorney to
investigate ways to require a city inspection prior to release of the escrow by
the mortgage company.
After discussion, it was the consensus of Council to continue with allowing
conditional occupancy permits until the subject is discussed with the City
Attorney.
12. Conaideratinn of a rmnintien approving n ani and flnerifiggiona Lnr
tuna ruetinn of hurl Bn +Inv rd be wenn F Ileo Av nun nd Highway 2b.
City Engineer Bret Weiss reported that plans and spedfications have been
prepared for the extension of School Boulevard between Fallon Avenue and
Pago 9 9
Council Minutes - 6/22/95
Highway 25 and for extension of utilities to the proposed Business Center.
Weiss suggested that Council consider extending utilities across Highway 25
at this time, which could eventually serve the nearby trailer park.
Weiss went on to explain the two alternatives for proposed tree plantings
along School Boulevard, which would be financed through general city funds.
The alternatives included a staggered planting of trees every 40 ft, or a
randomly -spaced grouping of trees. Weiss noted that Council would also
need to decide whether they preferred a standard concrete median on School
Boulevard or a median that included a colored strip in the center, which is
the median preferred by developer Tony Emmerich.
Atter discussion, it was the consensus of Council to plant the trees along
School Boulevard in a staggered fashion and to install a concrete median
with a colored strip in the center as preferred by Emmerich. It was also
concluded that tree planting would be done concurrent with land
development adjacent to the roadway, thus better assuring proper
maintenance of trees. There was also a consensus that tree planting along
School Boulevard between County Road 118 and Fallon Avenue would follow
the plan proposed by Weise but be planted over a period of years on a staged
basis.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY BRIAN STUMPF TO ADOPT A RESOLUTION APPROVING
PLANS AND SPECIFICATIONS FOR SCHOOL BOULEVARD, INCLUDING
EXTENSION OF UTILITIES ACROSS HIGHWAY 26, AND AUTHORIZING
ADVERTISEMENT FOR BIDS. Motion carried unanimously.
SEE RESOLUTION 95.36.
13. rnnaidnration of ant_hnrizing chn QW a" to 11rop n n &2dbjlitXBUMb
ata" the Highway 26/Oakweed Drive road ayatem_
Assistant Administrator O'Neill asked Coundl to consider directing the City
Engineer to begin the planning and design process associated with
development of roadway improvements in the area of the Highway 26 and
Oakwood Drive intersection. This intersection has become a bottleneck for
traffic circulation; and as noted in the transportation plan adopted by the
City Council a few years ago, the alignment of this intersection needs to be
moved farther to the south in order to accommodate vehicle stacking
requirements for vehicles southbound on Highway 25.
O'Neill reported that City staff met with County and MN/DOT
representatives on May 12, 1995, to discuss possible improvements to this
area. MN/DOT has plans for developing a four -lane section between the
fiwway bridge and the Oakwood Drive intersection sometime in 1998. The
Page 10 (.t
Council Minutes - 5W%
Wright County Engineer indicated that the County would be interested in
assisting with funding a portion of the coat to realign Oakwood Drive/CSAR
117. It was the consensus of the State, County, and City engineering staff
that the City needs to begin acquiring the necessary right-of-way, which can
only be done after the proper alignment of the roadway has been identified
through a feasibility study.
Mayor Fyle and Councilmember Herbst questioned why the City is required
to conduct the planning for Highway 25 since it is a state road, as it was
their view that MN/DOT should spend the funds necessary to study the
roadway improvements. City Engineer Weiss explained that the State
recognizes that there is a problem, and the County and State will participate
in the cost of improvements once area planning is completed by the City.
O'Neill noted that it is important that land needed for the alignment be
identified as soon as possible to allow acquisition prior to development thus
limiting land acquisition cost.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY TOM PERRAULT TO ADOPT A RESOLUTION APPROVING AN
ESTIMATED EXPENDITURE OF $18,000 FOR A FEASIBILITY STUDY ON
IIdPROVEMENTS TO THE HIGHWAY 25/OAKWOOD DRIVE ROAD SYSTEM,
WHICH INCLUDES PREPARING PLAN WORK FOR THE ENTIRE SYSTEM ON
HIGHWAY 25 BETWEEN SCHOOL BOULEVARD AND OAKWOOD DRIVE.
Voting in favor: Shirley Anderson, Tom Perrault, Brian Stumpf. Opposed:
Brad Fyle, Clint Herbst. It was Fyle and Herbst's view that the State should
be responsible for the cost to study traffic issues on Highway 25.
SEE RESOLUTION 95-37.
14. ro aideratinn of a hnrinrw the .i y gnaineer to preRarn a feaFdhility atudv
oa ramn nd hr. irmpmvem nta at County Rnad 118 and L$¢,
Assistant Administrator O Neill requested that Council consider authorizing
the City Engineer to prepare a feasibilility for development of freeway
interchange improvements at County Road 118 in order to obtain the
necessary approvals from the State of Minnesota and MN/DOT. This project
was included in the City's transportation plan prepared a few years ago and
was discussed at the recent joint commission meeting in conjunction with
potential development of an outlet mall near Chelsea and County Road 118.
At a meeting held on May 12,1998, the County Engineer noted that Wright
County may help fund a portion of the estimated $3.6 million project;
however, although MN/DOT officials support development of an interchange
at the proposed location, no construction funding would be provided by the
State, as it was their view that the primary purpose of the project is to
improve local traffic flow only and enhance land developability in the area.
Page 11 9
Council Minutes - 6J2?M
AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND
SECONDED BY TOM PERRAULT TO ADOPT A RESOLUTION AUTHORUMgG
THE CITY ENGINEER TO PREPARE A FEASIBILITY STUDY ON FREEWAY
INTERCHANGE HAPROVEMENTS AT COUNTY ROAD 118 AND I-94. Motion
carried unanimously. SEE RESOLUTION 86-38.
16. Cona+derstion of reviewing hides far contracted mowing se *
Public Works Director John Simola reported that specifications for contract
mowing and landscape maintenance include mowing at the library, liquor
store, and fire hall on an as -needed basis. In addition, mowing of public
nuisance property for weeds and tall grass was also bid. Simola noted that
on May 18, 1896, bids were received from Carefree Lawn Service and Quality
Lawn Maintenance.
Council discussed the individual prices shown on the bid tabulation for both
the city property mowing and the public nuisance mowing. It was noted that
although the public nuisance mowing price was bid at $60 by Carefree Lawn
Services and $46 by Quality Lawn Maintenance, the low bid for the city
property mowing was made by Carefree Lawn Services.
AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND
SECONDED BY SHIRLEY ANDERSON TO AWARD THE CONTRACT FOR
MOWING AND LANDSCAPE MAINTENANCE TO CAREFREE LAWN SERVICES.
Voting in favor: Clint Herbst, Shirley Anderson, Brian Stumpf, Tom
Perrault. Opposed: Brad Fyle.
18, Cnwdderation ofe ,.ryMain+n r artmen� t mower_
It was the consensus of Council to table this item until the purchase of a
bucket truck is resolved.
17, (:e nideratin nfhillA for tha month a MAV.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY BRIAN STUMPF TO APPROVE THE BILLS FOR THE MONTH OF
MAY AS PRESENTED. Motion carried unanimously.
18. ati"er aUM.
A. Assistant Administrator O Neill reported that there is again a vacancy
on the Parks Commission due the appointment of Roger Carlson to the
HRA. He noted that Earl Smith is interested in the position and was
interviewed recently for a seat on the Parks Commission vacated by
Dick Frio, who was appointed to the Planning Commission.
Page 12 9
Council Minutes - 612M
After discussion, a motion was made by ftirley Anderson and
seconded by Brad Fyfe to appoint Earl Smith to the Parks Commission
to fill the vacancy left by Roger Carlson. Voting in favor- Shirley
Anderson, Brad Fyle, Clint Herbst, Brian Stumpf Opposed. Tom
Perrault.
B. Public Vorks Director John Simola requested that Council set a
special meeting for the purpose of selecting an engineering consultant
for the wastewater treatment plant expansion project.
A"M DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON
AND SEOONDED BY BRIAN STUMPF TO DIRECT STAFF TO RANK THE
PROPOSALS AND PROVIDE COUNCIL WITH A RECOMMENDATION AT A
SPECIAL MEETING SET FOR MONDAY, JUNE 12, 1996, AT 6 PAL
Motion carried unanimously,
There being no fiuther business, the meeting was adjourned.
Karen Doty
Office Manager
Page 13 0
Council Agenda - 6/12/95
A RFFFRFNCR AND BA .K =RO
The City Council is requested to adopt a resolution calling for a public hearing
date of June 26, 1995, for the modification of the TIF Plan for TIF District No.
1-19. The proposed modification is to increase the TIF budget by $42,000 for a
total of $367,830.
On March 13, 1995, the City Council approved the establishment of TIF District
No. 1-19 and its plan. The plan included a budget amount of $325,830. This
TIF District, a Housing District, was created to assist with site improvement
costs associated with the construction of the 48 -unit multi -senior housing
facility known as Mississippi Shores.
On April 15, the HRA gave preliminary approval to increase the budget by
$42,000 for a total of $367,830. The main reason the HRA agreed to the
modification was to allow 90'.5 of the tax increment ($325,830) to be spent on the
senior housing project, thereby increasing the cash flow of the project and
reducing the rental rates. Secondly, the 10% administration 442,000 budget
increase) provides dollars for HRA administration costs and/or allows the HRA
the flexibility to reimburse the City for its estimated total HACA loss of $33,787
if for some reason in any given year during the life of the district the project
does not meet the requirements of a `Qualified Housing District.'
Until such time the senior housing project funding was in place, it made no
sense to bring the proposed modification to the Council for approval. The
project funding was resolved by the approval of the Monticello Senior Housing
Alliance, Inc., to transfer ownership to Presbyterian Homes Housing and
Assisted Living, Inc. Within the agenda items relating to Mississippi Shores is
a memorandum prepared by Dan Lindl of Presbyterian Homes outlining the
benefits of a Presbyterian ownership.
Again, the City Council is requested to adopt the enclosed resolution calling for
a public hearing date of June 26,1995. Actual approval of the proposed $42,000
budget increase will take place on June 26.
Council Agenda - 6/12/95
R. ALTERNATIVE ACTIONS:
1. A motion to adopt a resolution calling for a public hearing on the
proposed modification of the Redevelopment Plan for Redevelopment
Predect No. 1, the modification of the TIF Plans for TIF District Nos. 1-1
through 1-18, and the modification of the TIF Plan for TIF District No.
1-19. Public hearing date of June 26, 1995.
2. A motion to deny adoption of the resolution calling for a public hearing.
3. A motion to table any action.
Staff recommends Alternative 01.
n SUPPORTING DATA,
Copy of the resolution for adoption; Proposed budget; Approved March 13
budget.
Councilmember introduced the following resolution,
the reading of which was dispensed with by unanimous consent, and moved its
adoption:
CITY OF MONTICELLO CQ
WRIGHT COUNTY �r
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION CALLING FOR A PUBLIC HEARING ON THE
PROPOSED MODIFICATION, BY THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, OF THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 1, THE MODIFICATION OF
THE TAX INCREMENT FINANCING PLANS FOR TAX
INCREMENT FINANCING DISTRICTS NO. 1-1 THROUGH 1-18,
AND THE MODIFICATION OF THE TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 1-19, ALL LOCATED WITHIN
REDEVELOPMENT PROJECT NO. 1.
BE IT RESOLVED by the City Council (the "Council") of the City of
Monticello, Minnesota (the "City"), as follows:
Section 1. Public Hearina. This Council shall meet on June 26, 1995, at
approximately 7:00 p.m., to hold a public hearing on the following matters: (a) the
proposed modification, by increased project costs of the Housing and
Redevelopment Authority's (the "Authority") Redevelopment Project No. 1; (b)
the proposed modification, by increased project costs of Tax Increment Financing
Districts No. 1-1 through 1-18, located within Redevelopment Project No. 1; (cj
the modification of Tax Increment Financing District No. 1-19, located within
Redevelopment Project No. 1; (d) the proposed adoption of the Modified
Redevelopment Plan for Redevelopment Project No. 1; (e) the proposed adoption
of the Modified Tax Increment Financing Plans for Tax Increment Financing
Districts -No. 1-1 through 1-18 (f) the proposed adoption of the Modified Tax
Increment Financing Plan for Tax Increment Financing District No. 1-19, all
pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to
469.047, inclusive, as amended, and Sections 469.174 to 469.179, inclusive, as
amended.
3%+
Section 2. Notice of Hearing: Filing of Program. The City Administrator
is authorized and directed to cause notice of hearing, substantially in the form
attached hereto as Exhibit A, to be given as required by law, to place a copy of
the proposed Modified Redevelopment Plan and Modified Tax Increment Fmmcing
Plans on file in the Administrator's office at City Hall and to make such copy
available for inspection by the public no later than June 6, 1995.
The motion for the adoption of the foregoing resolution was duly seconded
by Councilmember and upon vote being taken thereon, the
following voted in favor thereof:
And the following voted against the same:
Whereupon said resolution was declared duly passed and adopted by the
Council in and for the City of Monticello, Minnesota, on June 12, 1995.
Mayor
ATTEST:
Administrator
J�
EXHIBIT A
NOTICE OF PUBLIC HEARING
CITY OF MONTICELLO
COUNTY OF WRIGHT
STATE OF MINNESOTA
NOTICE IS HEREBY GIVEN that the City Council (the "Council") in and
for the City of Monticello, County of Wright, State of Minnesota, will hold a
public hearing on June 26, 1995 at approximately 7:00 p.m., at City Hall, 250
East Broadway, Monticello, Minnesota, relating to the proposed modification, by
increased project costs, the Housing and Redevelopment Authority's
Redevelopment Project No. 1 and the approval and adoption of the Modified
Redevelopment Plan relating thereto; the proposed modification, by increased
project costs, of the Modified Tax Increment Financing Plans for Tax Increment
Financing Districts No. 1-1 through 1-18 located within Redevelopment Project
No. 1; and the proposed adoption of the Modified Tax Increment Financing Plan
relating to Tax Increment Financing Plan No. 1-19, also located within
Redevelopment Project No. 1, all pursuant to and in accordance with Minn
Statutes, Sections 469.001 to 469.047, inclusive, as amended, and Sections
469.174 to 469.179, inclusive, as amended. A copy of the Modified
Redevelopment Plan for Redevelopment Project No. 1 and the Tax Increment
Financing Plans for Tax Increment Financing Districts No. 1-1 through 1-19, as
proposed to be adopted will be available at the office of the City Administrator at
City Hall not later than June 6, 1995.
The property comprising Tax Increment Financing District No. 1-19 is as
follows:
PID Number:
155-015-021.020
PID Number:
155-015-022-120
PID Number:
155-015-021-010
PID Number:
155-011-000-210
PID Number:
155-011-000-050
PID Number:
155-015-022.020
PID Number:
155-015-022-040
34-3
Also described as:
Those parts of Lots 2, 3, 4, 10, 11, 12. Block 22 and Block 21 lying
southeasterly of the center line of said Lot 2 extended northeasterly to the shoreline
of the Mississippi River and lying northwesterly of the northeasterly extension of
the southeasterly line of said Lot 10.
Also that part of Lot 5 of Auditor's Subdivision No. One according to the recorded
map thereof lying westerly of the southwesterly extension of the southeasterly line
of Lot 4, Block 22, LOWER MONTICELLO according to the recorded plat
thereof extended southwesterly to the southwest line of said Lot 5 except that part
lying southeasterly of a line parallel with and 12.5 feet northerly of a line
descn'bed as follows: Beginning at the intersection of the southwesterly extension
of the southeasterly line of Lot 5 of said Block 22 with the southeasterly extension
of the southwest line of said Block 22, thence southwesterly at a deflection angle
of 132 degrees 46 minutes from the said southeasterly extension of the southwest
line of Block 22, a distance of 139.5 feet more or less to said southwest line of
Lot 5 of Auditor's Subdivision No. One and said line there terminating.
Also that part of Broadway Street of LOWER MONTICELLO according to the
recorded plat thereof lying southeasterly of the southwesterly extension of the
center line of Lot 2, Block 22 of said LOWER MONTICELLO and northeasterly
of the northwesterly extension of the southwest line of Lot 5 of the Auditor's
Subdivision No. One according to the recorded map thereof. Maps of the project
area and of proposed Tax Increment Financing District No. 1-19 are attached.
Further information regarding the identification of the parcel to be included
in Tax Increment Financing District No. 1-19 may be obtained from the office of
the City Administrator.
All interested persons may appear at the hearing and present their views
orally or in writing.
BY ORDER OF THE CITY COUNCIL
City Administrator
3A-4
STATE OF MINNESOTA )
ss.
CITY OF MONTICELLO )
I, the undersigned, being the duly qualified and acting Administrator of the
City Council (the 'Council') in and for the City of Monticello, Minnesota, DO
HEREBY CERTIFY that I have carefully compared the attached and foregoing
extract of minutes of a meeting of the Council held on the date indicated with the
original minutes thereof on file in my office and that the same is a full, true and
correct transcript thereof insofar as said minutes relate to Resolution No.
WITNESS my hand officially and the official seal of the Council this
day of 1995.
City Administrator
(SEAL)
3�.s
Pr�oPosk.� �,(�cET.
(As modified June 26, 1995)
Debt Service Reserve for Housing Bonds
595,000.00
Demolition/Removal
7,300.00
Site Improvements
Storm Sewer
15,440.00
Sanitary Sewer
18,930.00
Water
3,400.00
Water/Sewer Hookup Fees
30,000.00
Public Improvements
Utility Realignment
12,000.00
Fin Truck Path/Hydrants
10,(W.00
Bike/Pedestrian Pathway Bridge
10,000.00
Site Preparation
39,208.00
Other Preparation Footings
15,675.00
Parlang/Pavinga andseaping
Contingency
48, 637.00
20.000
Subtotal
$325,830.00
Administration
42_000.00
Total
S367,830.00
Subsection 1.11. jwld,ljz. All new and/or existing development on land
identified on Exhibits I -C thorough I -F as 'property to be acquired'
or 'possible
acquisition" will be subject to the following uses and requirements:
1.43
34 .(�
ADaP ED i?,C 6E T
)istrict No. 1-19
(As adopted March 13, 1995)
Debt Service Reserve for Housing Bonds
575,000
Demolition/Removal
7,500
Site Improvements
Storm Sewer
15,440
Sanitary Sewer
18,950
Water
3,400
Water/Sewer Hookup Fees
30,000
Public Improvements
Utility Realignment
12,000
Firetruck Path/Hydrants
10,000
Bike/Ped Pathway Bridge
10,000
Site Preparation
39,208
Other Preparation - Footings
15,675
Parkin8/Paving/LandscViAg
48.657
SUBTOTAL
$285,830
Contingency
20,000
Administration
20 -
TOTAL
$325,830
I-42
3B.
Council Agenda - 6/12/96
O.K.)
The Council is requested to adopt a resolution approving the two documents
which were prepared by HRA Attorney Steve Bubul.
PRIVATE REDEVELOPMENT CONTRACT
The Private Redevelopment Contract is a legal document which defines the
terms and conditions associated with the disbursement of the TIF assistance to
a redeveloper. As you recall, the TIF Plan for any TIF District describes the
estimated tax increment to be generated over the life of a district, the budget
which is a guide for the expenditure of tax increment, and the impact of the tax
increment on the taxing jurisdictions. One can expend dollars less than the
budget; however, prior to expenditure of dollars in excess of the budget, the TIF
Plan must be modified.
The TIF Plan for TIF District No. 1-19 was created to assist with the site
improvement coats associated with the construction of a 48 -unit multi -senior
housing facility.
As described within the Private Redevelopment Contract, the TIF pay-as-you-go
assistance is for public redevelopment costs in the marimum amount of
$326,830. Assuming the redeveloper, Presbyterian Homes Housing and
Assisted Living, Inc., constructs and completes the 48 -unit multi -senior housing
facility within the terms and conditions of the Contrail, the redeveloper will be
reimbursed by the HRA in semi-annual installments with interest at a rate
equal to the leaser of 8% per annum or the yield on the Housing Bonds, payable
on each February 1 and August 1 commencing August 1, 1897, and concluding
no later than February 1, 2012. Payments will be made solely from and to the
extent of available tax increment from this housing district.
Normally, the Private Redevelopment Contract is an agreement between the
HRA and redeveloper only. The City is a party to this contract because the City
shall construct the "public improvements; and Uho City is associated with the
requirements of a "Qualified Housing District."
Council Agenda - 6/12/95
As a party to this contract, the City is in agreement to ARTICLE III, Pub]iC
RedevelnUmP.nt Coetn, Section 3.2. Publie FedevellWment Gosto:
The Redeveloper shall construct certain site improvements on the
Redevelopment Property identified in Schedule A hereto, in accordance with the
Construction Plana. The City shall construct the site improvements identified
as "Public Improvements" in Schedule B, the coat of which the Redeveloper shall
pay the City within 30 days after receipt of any invoice therefor. The parties
further agree and understand that, as a condition of issuance of the Housing
Bonds by the City, the Redeveloper will be required to fund a debt service
reserve for such bonds. The cost of the site improvements, together with the
debt service reserve for the Houisng Bonds, shall be referred to herein as the
"Public Redevelopment Coats." In order to make the development of the
Minimum Improvements economically feasible, the Authority will reimburse the
Redeveloper for the Public Redevelopment Costs in the maximum amount of
$325,830.
In the event that the Public Redevelopment Costs exceed $325,830, such excess
costs shall be the responsibility of the Redeveloper. The Authority shall have
no obligation to the Redeveloper or to any third party with respect to any defects
in the construction of improvements financed or reimbursed by the Authority
as Public Redevelopment Costs.
Secondly, as a party to this contract the City is in agreement to ARTICLE VI,
fax Increment_ Taxes, Section 6.4, Qualification of the TIF District:
(a) The parties hereto understand and agree that the TIF District constitutes
a "housing district" under the TIF Act. The parties also reasonably
anticipate that the TIF District will meet the requirements of a "qualified
housing distaicV under Minnesota Statutes. To that end, and in order to
ensure continued compliance with the income and rent limitations under
those statutes, the Redeveloper and the Authority shall, upon execution
of this Agreement, execute the Low Income Housing Agreement approved
by and on file with the Authority.
(c) If at any time the Authority receives notice from the State Department
of Revenue, any Tax Official, or any Court of competent jurisdiction that
the TIF District does not quality as a "qualified housing district," without
affecting the status of the TIF District as a housing district, then on each
Payment Date thereafter until the date of receipt of the last Tax
Increments 6om the TIF District, the Authority shall pay to the City, as
an administrative fee in connection with the TIF District, an amount
Council Agenda - 6/12/95
equal to 10% of the Tax I=emmt received by the Authority with respect
to the Redevelopment Property during the six months preceeding each
Payment Date provided that the Authority's obligation hereunder is
subject to the limit on expenditures of Ta: Increments for administrative
expenses.
Thirdly, as a party to this contract the City is in agreement to ARTICLE VII,
Morte,am Fi andner, Section 7.3, Rnhordination and MgdifiCddgnJgrJaMWfLt1
In order to facilitate the Redeveloper obtaining financing for ;he development
of the Minimum Improvements, the Authority and City Pgree to subordinate
their interests in the Enimum Improvements and the IW$evelopment Property
under this Agreement, provided that such subordination shall be subject to such
reasonable terms and conditions as the Authority, the City, and the Holder
mutually agree in writing.
Outlined are only three excerpts of the 26 -page document which is available at
city hall for your review.
SUBORDINATION AGREEWNT
The Subordination Agreement is between the HRA, the City, and First Trust
National Association (the "Trustee").
In order to induce the Trustee to enter into the Indenture, and as additional
security for repayment of all amounts due under the Loan Agreement, the
Authority, City, and Trustee agree to enter into the Subordination Agreement.
On June 6, 1985. the HRA adopted a resolution approving the Private
Redevelopment Contract, the Extended Ww•lncome Housing Commitment
Agreement, and the Subordination Agreement. Presbyterian Homes has
received a copy of the documents for review; and at this time, I'm unaware if the
documents have been approved. HRA Attorney Steve Bubul will be present at
the City Council meeting for additional comments and to respond to Council
questions.
R. AI.TRRNArIVP ACTIONq;
1. A motion to adopt the resolution approving the Private Redevelopment
Contract among the HRA, the City, and Pmabyterian Homes and the
Subordination Agreement between the HRA, the City, and the Trustee.
Council Agenda - 6112/85
A motion to deny adoption of the resolution.
A motion to table any action.
[!_ STAFF CO NDATION:
As the financial strength of the project has increased with the new ownership
of Presbyterian Homes Housing and Assisted Living, Inc., and with the
utilization of their expertise in senior housing management, staff rewmmends
Alternative 01.
D_ SUPPORTING DATA
Copy of Schedule B of the Private Redevelopment Contract; Resolution for
adoption.
SCHEDULE B
PUBLIC RRDEVELOPlaM (MSTS
SITE DIPROVEMENTS
ESTIMATED COST
Demolition/ Removal
= 7,800.00
Storm Sewer,
18,440.00
Sanitary Sewer
18,980.00
Water I 1
8,400.00
Water/Sewer Hookup Fees
80,000.00
Public Improvements ••
Utility Realignment
12,000.00
-jFlrs Truck Path/Hydrants
10,000.00'
Bike/Pedestrian Pathway Bridge
10,000.00
Site Prepat�atloii„1
89, 208.00
Other Preparation Footings
18,978.00
parking/Paving/Landsosphsg
48,887.00
Contingency
20.000.00
Subtotal
A 4 U9,M-00
Debt -Service Reserve for Housing
/1 93.000.00
Bonds
TOTAL
A A 325-M.
Coate may vary among any of the above items, provided
that the total public
Redevelopment Coats shall not exceed the above total.
.IA ,
"Ma”
also..,
B-1 tares" em 911wb owelcomm
3s-1
CITY OF YONTICELLO
RESOLUTION NO._
RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT AMONG
THE AUTHORITY, THE CITY AND PRESBYTERIAN HOMES HOUSING AND
ASSISTED LIVING, INC. (PRESBYTERIAN HOMES HOUSING) AND
SUBORDINATION AGREEMENT AMONG THE AUTHORITY, THE CITY AND THE
BOND TRUSTEE
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Monticello ("Authority") is administering its Redevelopment Project No. 1
("Project"); and
WHEREAS, within the Project the Authority and the City have approved the
creation of Tax Increment Financing District No. 1-18 (the "TIF District") in order
to facilitate the development of a senior housing facility by Presbyterian Homes
Housing and Assisted Living, Inc. ("Presbyterian Homes Housing"); and
WHEREAS, Presbyterian Homes Housing expects that the facility will be
financed in part through issuance by the City of Monticello of housing revenue bonds
in the maximum principal amount of $3,500,000 (the "Bonds"); and
WHEREAS, the City has reviewed a Contract for Private Redevelopment among
the Authority, the City and Presbyterian Homes Housing (the "Contract") specifying
the respective obligations of parties regarding development within the TIF District;
and
WHEREAS, the City has reviewed a Subordination Agreement among the
Authority, the City and the trustee for the Bonds, ( the "Subordination Agreement")
providing for subordination of certain of the Authority's and City's interests in the
Contract to the trustee for the Bonds; and
WHEREAS, the City Council has determined that It is In the beat interests of
the City to enter into the Contract and the Subordination Agreement;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Monticello as follows:
1. The Contract and the Subordination Agreement are hereby approved in
substantially the form presented to the City Council on this date, subject to
modifications to those documents that do not materially alter the nature of the
transaction. which are approved by the Mayor and City Administrator; provided that
execution of the documents by such officiate shall be conclusive evidence of such
approval.
2. The proper City officials are authorized and directed to execute the
Contract and Subordination Agreement on behalf of the City, and to carry out on
behalf of tha City the City's obligations thereunder.
ann6ri
Milo -41
3g'
Approved by the City Council of the the City of Monticello this 14th day of
June, 1998.
Mayor
ATTEST:
City Administrator
mlo•u
CuunLil Agenda - 6/12195
ac.
anhdivislon. AnnU on �'naene 3R=. (J.O.)
As you recall, a few weeks ago the preliminary plat of the Pinehurst
subdivision was approved subject to a number of minor modifications to the
plat. As of the preparation of this memo, I have not had the opportunity to
review the final plat in any detail. I also need to review the Association
Bylaws governing the site. I plan on completing my review prior to the
Council meeting, at which time I will report any problems with the final plat
or Association Bylaws.
Motion to approve the final plat subject to final review by City staff
and completion of plat modifications.
Motion to deny final plat approval.
Motion to table approval of the final plat.
C. STAFF RECOMMENDATION;
Staff supports approval of the final plat assuming that the modifications
outlined at the preliminary plat phase were made and subject to correction of
any other problems with the final plat that may be discovered during the
final review process.
n S1IPPORTINO DATA
Copy of final plat; E:oerpt firom meeting minutes defining requested changes
to the preliminary plattsite plan.
�. _ f _ -.rte �� �� Y��i �•.'. ...... 1to14
91��CS?N Ran a
rf�tl
COPY Council Minutes - 5/22/95
179
Building 06rial Gary Anderson reported that Gene Bauer is requesting
preliminary plat approval to construct two three -unit townhouse buildings on
four platted lots, along with a conditional use permit which would allow two
three -unit townhomes to be constructed in an R-2 district. The request as
submitted to the Planning Commission also included a variance to the
requirement that driveways be located 3 R from the side yard property line.
As a result of the discussion at the Planning Commission meeting, the
applicant modified the site plan eliminating the need for the variance.
Anderson went on to note that the Planning Commission recommended that
the preliminary plat and conditional use permit be approved based on the
finding that the preliminary plat and conditional use permit will result in a
development that is consistent with the character of the area and consistent
with the purpose and intent of the R-2 zoning district.
AFTER DISCUSSION, A MOTION WAS MADE BY SHMLEY ANDERSON AND
SECONDED BY CLINT HERBST TO APPROVE THE PRELIMINARY PLAT OF
THE PINEHURST RESIDENTIAL SUBDIVISION BASED ON THE FINDING THAT
IT IS CONSISTENT WITH THE CHARACTER OF THE AREA. Motion carried
unanimously.
A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY CLINT
HERBST TO APPROVE THE CONDITIONAL USE PERMIT ALLOWING TWO
THREE -UNIT TOWNHOMES IN AN &2 DISTRICT CONTINGENT ON THE
FOLLOWING CONDITIONS:
A revised site plan is submitted indicating the distance between
the intersection and the curb cut of any driveway in excess of 40
ft, as well as compliance with the 3 -ft setback for driveways
Brom side property lines.
A grading/drainage plan is submitted which indicates drainage
patterns and grading necessary to divert surthoe water run-off
away t}om the townhouse structure(s).
3. A landscape plan is submitted which indicates the trees on site
being preserved. as well as any additional landscape
improvements associated with the townhouse project.
Page 6 3G - a-
Council Blim, - 6r2=
4. The connection of public utilities is found to be acceptable by the
City Faighum and appropriate to the City's service capacities.
5. The applicant establishes a Property Owner's Association for the
primary purpose of maintaining the property's common spaces.
Motion carried unanimously.
Council Agenda - 6/12/95
: .1 , :1 , . •: , 1 w 1 :.1 1 , 1 1 .,
[fled1
. (R.W.)
Previously, the City Council set a public hearing date for Monday evening to
consider the issuance of $3.5 million in housing revenue bonds to be used to
finance the construction of the Montissippi Shores Senior Housing facility
project. As you are aware, the senior housing project had run into problems
getting enough equity put into the project to make it feasible and attractive
for the bonds to sell. The Monticello Senior Housing Alliance had initially
been planning to be the owner of the project with Presbyterian Homes being
provided the management contract. Recently, the Senior Housing Alliance
agreed to a proposal presented by Presbyterian Homes that Presbyterian
Homes, along with the Wedum Foundation, become the owner of the project
during its initial years of operation, with the option being available for the
Monticello Senior Housing Alliance to purchase the property at a later date.
The reason this option was presented is that the Wedum Foundation had
agreed to inject some equity ($150,000) into the project to make it more
attractive for permanent financing. In order to do so, this organization was
not willing to invest this amount of money without actually becoming the
owner during the initial stages of the project. The Housing Alliance was in
agreement with this option, as it appeared it was the only way the
development was going to continue on a reasonable schedule.
Even with Presbyterian Homes being the owner of the project, financing to
make this project viable still would require the City of Monticello to back the
project by allowing our name to be used on a $3.5 million bond sale so that
the project can obtain a lower interest rate. The Council is asked to read the
memorandum dated June B from Mr. Steve Bubul of Holmes & Craven that
summarizes the City's role in this bond sale and how it differs from our
normal C.O. bonds. Generally speaking, the City is only using its name to
got a tax exempt interest rate, which is lower than what can be obtained on
the open market, and the City would wt be liable to make any payments on
the bonds should the project not have sufficient revenue. This type of
backing is very similar to past industrial revenue bonds that the City has
backed for projects such as the Silver Fox Motel when it was originally built,
Council Agenda - 6/12195
and also the original clinic building that is now owned by the hospital. In
both of these cases, the City's name was used to attract a lower interest rate,
but we were not obligated for any debt payments whatsoever.
In March of 1996, in anticipation of proceeding with the senior housing
project, the City Council adopted a housing plan which outlined the City's
need for senior housing in the community. The plan indicated that a senior
housing project would be owned by the Monticello Senior Housing Alliance;
and if the Council is still supportive of the senior housing project being
initially owned by Presbyterian Homes, the resolution should be adopted that
modifies the original housing plan to note that Presbyterian Homes is now
the owner. This resolution is really a technicality and does not change any
other aspects of the original housing plan that was adopted.
It is my understanding that if the Council is agreeable to the issuance of
bonds and adopts the resolution allowing for the bond sale, the project will be
going forward almost immediately. It is anticipated that the financing may
be finalized during the week of June 12, allowing the project to begin
construction soon. Mr. Steve Bubul of Holmes & Graven will be in
attendance at the meeting to update the Council on the action that is needed
by the City and to sun+n arize how the project has gotten to this point.
W ALTERNATIVE ACTIONS;
�e IA. After the close of the public hearing, the Council could adopt the
�a resolution approving the issuance of senior housing bonds in an
amount not to exceed 83.6 million, along with the associated loan
,4?� documents noted in the resolution.
�(i_ j1B. Assuming the above option is selected, the Council should also adopt
the resolution modifying the housing plan to indicate Presbyterian
Homes as the owner of the project.
Do not adopt the resolution issuing the bonds at this time. Likewise, if
this option is selected, the housing plan would not need to be modified
either.
While I believe everyone had hoped that if this project was going to happen it
would be a community effort and owned by the Monticello Senior Housing
Alliance, it appears that additional hurting equity needs to oocur to make the
Council Agenda - 6112195
project viable. Unless the money can be located within the community, the
only reasonable alternative at this time if the project is going to proceed is
the proposal to have Presbyterian Homes and Assisted Living, Inc., be the
owner during the initial years. I believe the Senior Housing Alliance Board
and members of the HRA are in agreement with the option proposed and feel
this is the best way to proceed at this time.
Copy of resolution authorizing the issuance of bonds; Copy of resolution
modifying housing plan; Memorandum flrom Steve Bubul; Memo liom
Presbyterian Homes.
10
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MONTICELLO, MINNESOTA (THE "ISSUER")
AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF
THE ISSUER'S SENIOR HOUSING REVENUE BONDS
(PRESBYTERIAN HOMES HOUSING AND ASSISTED
LIVING PROJECT) SERIES 1995 (THE "BONDS"), WHICH
BONDS AND THE INTEREST AND ANY PREMIUM
THEREON SHALL BE PAYABLE SOLELY FROM REVENUES
DERIVED FROM REVENUES PLEDGED PURSUANT TO THE
INDENTURE; APPROVING THE FORM OF AND
AUTHORIZING THE EXECUTION AND DET.IVERY OF A
TRUST INDENTURE, A LOAN AGREEMENT, A BOND
PURCHASE AGREEMENT AND CERTAIN OTHER
DOCUMENTS; A.PPROVING THE FORM OF AN OFFICIAL
STATEMENT; APPROVING THE FORM OF AND
AUTHORIZING THE EXECUTION AND DELIVERY OF THE
BONDS; AND PROVIDING FOR THE SECURITY, RIGHTS
AND REMEDIES OF THE OWNERS OF SAID BONDS
WHEREAS, the City of Monticello, Minnesota (the "Issuer") is a municipal
corporation duly organized and existing under the Constitution and laws of the State
of Minnesota; and
WHEREAS, pursuant to the Constitution and laws of the State of Minnesota,
particularly Minnesota Statutes, Chapter 462C, as amended (the "Act"), the Issuer
is authorized to carry out the public purposes described therein and contemplated
thereby by issuing Its revenue bonds to finance the cost of the acquisition,
construction, improving and equipping of multifamily housing facilities to be located
within its corporate boundaries, and is authorized to enter into any agreements made
in connection therewith and pledge those agreements as security for the payment of
the principal of and interest on auy such revenue bonds; and
WHEREAS, Presbyterian Homes Housing and Assisted Living, Inc. Center, a
Minnesota nonprofit corporation (the "Corporation") has requested the Issuer to
Issue its Senior Housing Revenue Bonds (Presbyterian Homes Housing and Assisted
Living, Inc. Project) Series 1995 in an aggregate principal amount not to exceed
$3,500,000 (the "Bonds") to provide for the funding of a loan (the "Loan") to the
Corporation for the purpose of financing the acquisition, construction, improving
and equipping of a 48 -unit independent living facility for the elderly (the "Project")
to be owned and operated by the Corporation; and
WHEREAS, the Issuer has developed its housing plan, pursuant to and (a
conformity with the Act (the "Housing Plan") , after pub lic hearing thereon and after'
one publication of notice in a newspaper circulating generally in the City of
Monticello at least thirty (30) days before the date of the hearing, as required by
the Act; and
WHEREAS, on June 12, 1995 the Issuer adopted a housing program (the
"Program") for the Issuance of the Issuer's senior housing revenue bonds to finance
ttie Project; and
WHEREAS, the Program was adopted in confornsity with the Act after public
hearing thereon and after one publication of notice in a newspaper circulatinig
Cacaowe
Palaa•47
generally in the City at least fifteen (15) days before the date of the hearing, as
required by the Act; and
WHEREAS, there is no active regional development commission whose
jurisdiction includes the City; and
WHEREAS, the Loan will be made pursuant to the terms of a Loan Agreement
dated as of June 1, 1995 (the "Loan Agreement") between the Issuer and the
Corporation and will be secured by (i) a mortgage lien on and security interest in
the Project and the real estate on which the Project is located, from the Corporation
to the Issuer pursuant to the terms of a Combination Mortgage, Security Agreement
and Fixture Financing Statement dated as of June 1, 1995 (the "Mortgage") which
Mortgage will be assigned by the Issuer to First Trust National Association, as
trustee (the "Trustee") and (ii) a Guaranty Agreement dated as of June 1, 1995 (the
"Guaranty") Presbyterian Homes Housing and Assisted Living, Inc. from
Presbyterian Homes of Minnesota, Inc., Presbyterian Homes Foundation, Johanna
Shores, Inc., Presbytrian Homes Care Centers, Inc., and Presbyterian Homes
Management and Services, Inc. (the "Guarantors") to the Trustee; and
WHEREAS, the Issuer proposes to finance the acquisition, construction,
improvement and equipping of the Project under the Act by the issuance of the
Bonds of the Issuer under this resolution as hereinafter dofined; and
WHEREAS, the Bonds will be issued under a Trust Indenture dated as of June
1, 1995 (the "Indenture") between the Issuer and Trustee, and will be secured by
a pledge and assignment of certain other revenues, all in accordance with the terms
of the Indenture, and said Bonds and the interest on said Bonds shall be payable
solely from the revenues pledged therefor and the Bonds shall not constitute a debt
of the Issuer within the meaning of any constitutional or statutory limitation nor shall
constitute nor give rise to a pecuniary liability of the Issuer or a charge against its
general credit or taxing powers and shall not constitute a charge, lien, or
encumbrance, legal or equitable, upon any property of the Issuer other than the
Issuer's interest in the Project; and
WHEREAS, in order to comply with the requirements of Section 147(f) of the
Internal Revenue Code of 1989, as amended, the City Council of the Issuer held a
public hearing an June 12, 1995, after publication of notice thereof in a newspaper
of general circulation in the City at least fourteen (14) days before the hearing; and
WHEREAS, the forms of the following documents (including the exhibits
referred to therein) have been submitted to the City:
(a) the Indenture, providing for the issuance of the Bonds, prescribing the
form thereof, plediriaR the trust estate described therein for the security of the
Bonds, and setting orth proposed recitals, covenants and agreements by the parties
with respect thereto;
(b) the Loan Agreement;
(c) the Mortgage from Corporation to Issuer;
(d) the Assignment of Leases and Rents dated June 1, 1995 from the
Corporation to the Issuer;
(e) the Assignment of Mortgage and Leases and Rents dated June 1, 1995
from the Issuer to Trustee;
0090065
IOlp•67
JUM-08-98 14 -SO FROM. HOLMES a GRAVEN 10-8123378310
PAGE Z/8
(0 the Cuaronty Agreement from Guarantors to Trustee;
(g) a Bond Purchase Agreement, to be dated ass of the date of exexation
thereof (the "Bond Purchase Agreement"), by and among the Issuer, Dougherty,
Dawkins, Sttmud h Bigelow, Inc. , (the "Underwriter") and Corporation; and
(h) a form of Preliminary Official Statement and a Final Official Statement
to be delivered on or prior to the bond closing (the "Official Statement").
The agreements described and referred to above in paragraphs (a) tbroagh
(h) shall be hereinafter sometimes referred to collectively as the "Agteemamts".
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF MONTICELLO, KWNESOTA. AS FOLLOWS:
1. The Issuer acknowledges. finds, determines, and declares that theDDxovfcion
Of ..+.:..,."...J housing facilities, so that adequate facilities era
available to reddeata of the State at reasonable cost, is a pu Uc purpose.
2. For the purposes set forth above. there to hereby authorised the issuance,
sale and dell of the Bonds in a principal amount of not to exceed
=3.500, 000. The Bonds shall be numbered, shall be dated, shall mature, shall
be subject to redemption prior to maturity, shell be in such form. and shall
have such other dettalls and provislow as are prescribed in the Indemmre in
the form now on file with the Issuer. The average interest tete on the Bonds
shall not exceed 7.751, which shall be determined by the Underwriter, subject
to approval of the rates by the City Administrator of the Issuer. Execution of
the Indenture and Loan Agreement by the City Admtnfstrator of the Issuer
shall be conclusive, evidence of auch approval.
3. The Bonds shall be special obligations of the Issuer payable solely from the
revenues pravided pursuant to the Loan Agreement and other fun"
pursuant to the Indenture. The City Council of the Issuer hereby eau rues
and directs the Mayor and the Ci Administrator of the Issuer (the "Mayor",
and the "Administrator*, . ,..,� . l d, ) to execute and deliver the Indenture,
by and between the Issuer and the Trustee, and to deliver to said Trustee the
Indenture, and hereby authorizes and directs the execution of the Bonds in
accordance with the Indenture, and hereby provides that the Indenture &hall
provide the corms and conditions, covenants, rights, obligations, duties and
agreements of the bondholders. the Issuer and the Trustee as sot forth
therein.
All of the provisions of the Indenture. when executed as authorised herein,
shall be deemed to be a part of this resolution as fully and to the same extant
as If Incorporated verbatim herein and shall be in full ftorce and effect from the
date of execution and delivery thereof.
The Agreements in substantially the forms submitted to the r at this
meeting, are hereby approved with such and appropriate
variations, omissions and insertions as do not eraterially nW the substance
thereof (including without limitation the date of an document), or as the
Mayor and the Admtofattstor, to their discretion, shall determine, and the
execution thereof by the Mayor and the Admtaistrotor shall be conclusive
evidence of such determination. Such of the documents as mequire the
execution of the Issuer are hereby authorised and directed to be executed or
ac.oet+s
0190.47
JUN -09-96 14-50 FROM.HOLMES a GRAVENo
ID. BIZ]]79370 PACE ]/6
accepted, as the case may be, and delivered in the name and on behalf of the
Issuer by its Mayor and City Administrator upon execution thereof by the
parties thereto as appropriate. The Bonds and the Agreements ahan be
executed and delivered as provided therein. Copies of all the documents
necessary for the consummation of the transactions described herein and in
the Anshan be delivered, filed and recorded as provided herein and
In
S. The Bonds shall be revenue obligations of the Issuer the proceeds of which
shall be disbursed pursuant to the Indenture and the Loan Agreement, and
the priincipal, premium and interest on the Bonds shall be payable solely from
the proceeds of the Bonds and the Loan Agreement.
S. The Trustee is hereby appointed as paying Agent and Bond Registrar for the
Bonds.
7. The Mayor and Administrator of the Issuer are hereby authorized to execute
and deliver, on behalf of the Issuer, such other documents as are necessary
or appropriate in connection with the issuance, sale, and delivery of the
Bonds, including the Arbitrage Certificate and any document necessary to
comply with Securities and Exchange Commission Rule 15c2 -12(b(5), if
applicable, and all other documents and certificates as shall be necessary and
appropriate in connection with the issuance, sale and delivery of the Bonds.
8. The Issuer is not participating in the preparation of the Preliminary Official
Statement telato the Bonds ( the "Preliminary Official Statement") , which
Preliminary Official Statement is expected to be amended and completed to add
certain pricing and other information (as amended and completed, the "Official
Statement") and has made and will make no Independent investigation with
respect to the information to be contained therein, including the A i
thereto, and the Issuer assumes no responsibility for the dency,
accuracy or completeness of such Information. Subject to the foregoing,
Issuer hereby consents to the distribution and the use by the Underwriter In
connection with the sale of the Bonds of the preliminary Official Statement and
the Official Statement In the form on fie with Issuer. The Preliminary Official
Statement and the Official Statement are the sols materials consented to by the
Issuer for use in connection with the offer and tele of the Bonds.
All covenants, stipulations, obligations and agreements of the Isauar
contained In this resolution and the aforemontioned documents shall be deemed
to be the covenants, atipulations. obligations and agreements of the Issuer to
the full extent authorised or permitted by law, and all such covenants,
stipulations. obligations and agreements shall be binding upon the Issuer.
Except as otherwise provided in this resolution, all rights, powers and
privileges conforred and duties and liabilities imposed upon the Issuer or the
City Council by the provisions of this resolution or of the aforementioned
documents shall be exercised or performed by the Iasuar or by such members
of the City Coundl. or such officers, board. body or egong thoroof as may
be required or authorised by law to exercise such powers and to perform such
duties.
No covenant, stipulation, obligation or agreement herein contained or
contained in the aforementioned documents shall be deemed to be a covenant,
stipulation, obligation or agreement of any member of the City Council of the
Issuer. or any officer, agent or employee of the Issuer in that person's
awoom
olio -at
JUN -08-96 14 '59 FROM. HOLMES 8 CRAVEN I0,8123379310 PAGE 4,S
individual capacity, and neither the City Connell of the Issuer nor any officer
or employee executing the Bonds shall be liable personally on the Bonds or be
subject to any personal liability or accountability by reason of the issuance
No provision, covenant or agreement contained In the aforementioned
documents, the Bonds or in any other document related to the Bonds, and no
obligation therein or herein Imposed upon the Issuer or the breach thereof,
shall constitute or give rise to any pecuniary liability of the Issuer or any
charge upon its geaelal credit or taagg powers. In making the agreements,
provisions, covenants and represeatationa set forth in such documents, the
Issuer has not obligated itself to pay or It any funds or revenues, other
than funds and revenues derived from the Uan Agreement which are to be
applied oto the payment of the Bonds, as provided therein and In the
10. EYeept as herein Otherwise expressly provided, nothing in this resolution or
in the aforementioned documents expressed or implied, is intended or shall be
construed to confer upon any person or firm or corporation, other than the
Issuer or any holder of the Bonds issued under the previsions of this
resolution, any right, remedy or claim, legal or equitable, under and by
reason of this resolution or any provision hereof, this resolution, the
aforementioned documents and all of their provisions being intended to be and
being for the sole and exclusive benefit of the Issuer and any holder from time
to time of the Bonds Issued under the provisions of this resolution.
11. In case any one or more of the provisions of this resolution, or of the
aforementioned documents, or of the Bonds issued hereunder shell for any
reason be held to be Illegal or Invalid, such Wegality or Invalidity shall not
affect any other 3pravisiou of this resolution. or of the aforementioned
documents, or of the Bonds, but this resolution, the aforementioned
documents, and the Bonds shall be construed and endorsed as if such illegal
or Invalid provision had not been contained therein.
22. The Bonds, When ezaouted and delivered, Shall contain a recital that they aro
issued pursuant to the Act, and such red" aball be conclusive evidence of
the validity of the Bonds and the regul&e1 of the Issuance there. and that
all acts, conditions and things required by ofthe laws of the State of Mmusota
relating to the ad ton of this resolution, to the Issuance of the Bonds and
to the execution of the aforementioned documents tohhaappppeaan, exist and be
performed precedent to and in the enactment of We sesotutfon, and precedent
to Issuance of the Bonds and precedent to the execution of the d. ..—.. J. , . sd
documents have happened, exist sad have been performed as so required by
law.
13. The officers of itis Issuer, attorneys, engineers and other agents or
employees of the Issuer are hereby autbAri"d to do all acts and thinrequired of them gta
documents. and the Bonds for in �theefW1, uactusl ann with this dt�let pparfaforementioned
all the tarms, covenants and mutt contained In the Banda, the
aforementioned documents and this resolution. In the event that for any
roason the Mayor of the Issuer Is unable to carry out the execution of any of
the documents or other acts provided horela. any other —bar of the City
Council of the Iesuer shall be authorised to act In his capacity and undertal<o
such execution or acts on behalf of the lasuar with full force and effect, which
executions or acts shall be valid and binding on the Issuer. If for any season
snso-s7 5
10
JUN -09-86 14.69 FROM-HOLMES 6 CRAVEN IO,e323378310 PACE 6/6
the City Administrator of the leaver is naabia to ezecuts and deliver the
doaumaats referred to in this Beacktion. awA documents may be emacllted by
a member of the City Council, with the same force and effect as f such
documents were azecuted and delivered by the Ctty Admb3bmtor of the
issuer.
14. This reschMon shaU be in Poll force and effect liom and alter its passage.
Adopted by the City Ccamcii of the City of MoatioeDc thia 12th day of June. 1995.
mayor
ATTEST:
City Admiaiatrator
anoo"
maw -47
THE CITY OF MONTICELLO. IUNNESOTA
RESOLUTION NO. _
ADOPTING A MODIFIED PROGRAM FOR THE ISSUANCE OF SENIOR
HOUSING REVENUE BONDS
WHEREAS, pursuant to the Minnesota Miunicipal Housing Act, Minnesota
Statutes, Chapter 462C (the "Act"), the City of Monticello, Minnesota (the
is authorized to adopt a housing plan and carry out programa for the financing of
rental housing which is intended primarily for elderly persons or is affordable to
persons of low and moderate income; and
WHEREAS, on March 13, 1995, the City Council held a public hearing on and
adopted a housing plan ( the "Plan") and program ( the "Program") in accordance with
the requirements of the Act; and
WHEREAS, the Program provides for the acquisition and construction of a 48 -
unit rental housing facility for elderly persons ( the "Project") to be located in the
City; and
WHEREAS, the City has determined a need to modify the Program in order to
reflect a change in ownership of the Project, and on this date conducted a public
hearing on the modified Program attached as Exhlbit A hereto, following publication
of notice at least 15 days prior to the date hereof, all in conformance with the
requirements of the Act; and
WHEREAS, the City to not located within the area of jurisdiction of either the
Metropolitan Council or any currently active regional development commission, and
therefore the Plan and Program have not been submitted for review and comment by
such bodies as would otherwise be required under the Act; and
WHEREAS, the modified Program provides for the issuance by the City of up
to $x,500,000 in revenue bonds to finance the acquisition and construction of the
Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF MONTICELLO, MINNESOTA:
That the modified Program is hereby in all respects adopted.
2. That the staff of the City is hereby authorized to do all other things and
take all other actions as may be necessary or appropriate to carry out the modified
Program In accordance with the Act and any other applicable laws and regulations .
Adopted this 12th day of June, 1995.
Mayor
City Administrator
anbn%
1ai+e•4+
SG
EXHIBIT A
MODIFIED PROGRAM FOR THE FINANCING
OF SENIOR RENTAL HOUSING DEVELOPMENT
Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the City of
Monticello (the "City") has been authorized to develop and administer programa of
multifamily housing developments under the circumstances and within the limitations
set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such
programs for multifamily housing developments may be financed by revenue bonds
issued by the City.
The City has determined that it is in the beet interests of the residents of the
City to create a program of financing to encourage and facilitate the development of
rental housing developments for elderly persons in the City (the "Program"). The
City has received a proposal from representatives of Presbyterian Homes Housing
and Assisted Living, Inc. (the "Developer"), that, pursuant to the authority found
in the Act, the City approves a program providing for the acquisition and
construction of the Presbyterian Homes Housing and Assisted Living, Inc. Project,
a senior housing development located at 1215 Hart Boulevard in the City (the
"Project") . The acquisition and construction of the Project is to be funded through
the Issuance of up to $3,500, 000 in revenue bonds issued by the City (the "Bonds") .
The Project will be designed for rental primarily to elderly persons.
The City, in establishing this senior housing program (the "Program"), has
considered the information contained in the City's 462C Housing Plan (the "Housing
Plan"), including particularly (I) the availability and affordability of other
government housing programs; (U) the availability and affordability of private
marketing financing for the construction of multifamily housing units; (Ui) an
analysis of population, unemployment trends and projections of future population
trends and future employment needs; (iv) the recent housing trends and future
housing needs of the City; and (v) an analysis of how the Program will meet the
needs of persons and families residing and expected to reside in the City.
The City, in adopting the Program, has further considered (i) the amount,
timing and sale of Bonds to finance the estimated costs of the housing units, to fund
the appropriate reserves and to pay the cost of issuance; (U) the method of
monitoring and implementation of the Program to Insure compliance with the City's
housing plan and its objectives; (Ui) the method of administering, servicing and
supervising the Program; (iv) the costs of the City, including future administrative
expenses; (v) the restrictions on the multifamily development to be financed under
the Program; and (vi) certain other limitations.
The City, In adopting the Program, considered the potential financing impact
of a bond Issuance on affected public agencies. In addition, the City reviewed the
method of marketing the Program. Such review examined the equal opportunity for
participation by (1) minorities; (U) households with Incomes at the lower end of the
range that can be served by the Program; (Ui) households displaced by public or
private actions; (!v) elderly persons; and (v) accessibility to the handicapped.
The Project will be constructed and financed pursuant to Subdivisions 1 and
4 of Section 462C.05 of the Act.
&M1901
q1l0-tt
S�
Subsection A. Definitions. The following terms used in this Program shall
have the following meanings, respectively:
(1) "Act" shall mean Minnesota Statutes, Section 462C.01, at seq., as
currently in effect and as the same may be from time to time amended.
(2) "Bonds" shall mean the revenue bonds to be issued by the City to
finance the Program.
(3) "City" shall mean the City of Monticello, State of Minnesota.
(4) "Developer" shall mean Presbyterian Homes Housing and Assisted
Living, Inc. , a Minnesota nonprofit corporation.
(S) "Housing Plan" shall mean the City of Monticello 462C Housing Plan, as
amended, setting forth certain information required by the Act.
(8) "Housing Unit" shall mean any one of the 48 units located in the Project,
occupied by one person or family, and containing complete living facilities.
(7) "Land" shall mean the real property upon which each Project is situated.
(8) "Program" shell mean the program for the financing of the Projects
pursuant to the Act.
(9) "Project" shall mean the Presbyterian Homes Housing and Assisted
Living, Inc. Project.
Subsection B. Prowram For Financint the Project. It is proposed that the
City establish this Program to provide financing for acquisition of the Project to be
owned by the Developer, or a related entity, at a cost and upon such other terms
and conditions as are set forth herein and as may be ag red upon in writing between
the City, the Initial purchaser of the Bonds and the respective Developer. To do
this, the City expects to issue Bonds the proceeds of which will be loaned to the
Developer for financing the acquisition and construction of the Project. It is
expected that a trustee will be appointed by the City to monitor the construction of
the Project and payments of principal and Interest on the Bonds. The cost of any
additional security devices for the Bonds will be borne by the Developer and payable
In addition to the principal and Interest on the Bonds except as otherwise provided
by resolution of the City.
It is contemplated that the Bonds shall have a maturity of thirty (30) years
and will be priced to the market at the time of issuance.
The City will hire no additional staff for the administration of the Program.
The City intends to select and contract with a financial institution or trustee,
experienced In trust matters to administer the Bonds.
Insofar as the City will be contracting with underwriters, legal counsel, bond
counsel, the trustee, and others, all of whom will be reimbursed from bond proceeds
and revenues generated by the Program, no adumhuiatrative coats will be paid from
the City's budget with respect to this Program except as otherwise provided by
resolution of the City. The Bonds will not be genornl obligation bonds of the City,
but are to be paid only from properties pledged to the payment thereof, which may
&MSI S
igloo -47
Sz
include additional security such as additional collateral, insurance or a letter of
credit.
Subsection C. Local Contributions To The Prorram. The City through its
Housing and Redevelopment Authority ("HRA"), will provide certain tax increment
financing assistance for the Project in accordance with a Contract for Private
Redevelopment between the HRA and the Developer.
Subsection D. Standards and Requirements Relatin¢ to the Financing of the
Projects Pursuant to the Pro¢ram. The following standards and requirements shall
apply with respect to the operation of the Project by the Developer pursuant to this
Program:
(1) Substantially all of the proceeds of the sale of the Bonds will be used to
provide funds for the acquisition and rehabilitation of the Project. The funds will
be made available to the Developer pursuant to the terms of the Bond offering, which
may include certain covenants to be entered into between the City and the
Developer.
(2) The Developer or subsequent owner of the Project will not arbitrarily
reject an application from a proposed tenant because of race, color, creed, religion,
national origin, sex, marital status, or status with regard to public assistance or
disability.
(3) No Housing Unit may be in violation of applicable zoning ordinances or
other applicable land use regulations, including any urban renewal plan or
development district plan, and including the state building code as set forth under
Minnesota Statutes, Section 18.83, et seq.
Subsection E. Evidence of Compliance. The City may require from the
Developer or such other person deemed necessary at or before the issuance of the
Bonds, evidence satisfactory to the City of the ability and intention of the Developer
to complete the Project, and evidence satisfactory to the City of compliance with the
standards and requirements for the making of the financing established by the City,
as set forth herein; and in connection therewith, the City or Its representatives may
inspect the relevant books and records of the Developer in order to confirm such
ability, intention and compliance. In addition, the City may periodically require
certification from either the Developer or such other person deemed necessary
concerning compliance with various aspects of the Program.
Subsection F. lasuance of Bonds. To finance the Program authorized by this
Section, the City may by resolution authorize, issue and sell its revenue Bonds in
one or mores series, and using any additional credit enhancement devices determined
by the City to be necessary or desirable for each such aeries, In an aggregate
principal amount estimated to be up to $3,500,000. The Bonds shall be issued
pursuant to Section 482C.07, Subdivision I of the Act, and shall be payable
primarily from the revenues of the Program authorized by this Section. The City
anticipates the issuance of such amount prior to the end of 1995.
SubsectionG. Severability. The provisions of this Program are severable and
if any of its provisions, sentences, clauses or paragraphs shall be held
unconstitutional, contrary to statute, exceeding the authority of the City or
otherwise illegal or inoperative by any court of competent jurisdiction, the decision
of such court shall not affect or impair any of the remaining provisions.
an9t9m
00190-4+
S
Subsection H. Amendment. The City shall not amend this Program while
Bonds authorized hereby are outstanding, to the detriment of the holders of such
Bonds.
OnSIT
oneo-a Sk
HOLMES & GRAVEN
CHARTERED
i�Xuf11�71`� lIllu lI
TO: Rick Wolfsteller. City Administrator
FROM: Stephen Bubul
RE: Housing Revenue Bonds
As you know, the City is considering the issuance of housing revenue bonds (Housing Bonds)
in order to finance construction of a senior housing facility in the City. You asked me to explain
how these proposed bonds differ from the general obligation bonds (G.O. Bonds) that the City
typically issues for various City projects.
In the case of G.O. Bonds. the City issues the bonds and uses the proceeds from the sale to
finance a governmental function --such as sewer or water improvements. To repay the bonds, the
City pledges various revenues --special assessments, or revenues of a utility system --but also
pledges the City's full, faith and credit. This means that if revenues are ever insufficient to pay
the bonds, the City must levy a property tax against all property in the City. Potential investors
look to the City's financial condition and credit rating in dctemtining whether to buy the bonds.
In the case of the Housing Bonds, the City issues the bonds but does not directly use the
proceeds. Instead, the City loans the proceeds to a nonprofit. 501(c)(3) corporation, which uses
the money to construct a housing facility intended for seniors. The borrower repays the loan
from the revenues generated by the housing facility. To repay the bonds, the City pledges only
the amount that the nonprofit borrower is obligated to repay under the loan agreement. The City
does not pledge any of its own funds or its full faith and credit. If revenues from the housing
facility are insufficient to repay the bonds, that is simply a risk the bondholders bear.
The loan agreement between the City and the nonprofit corporation is assigned to a bond trustee.
The corporation makes all payments directly to the trustee, who handles all financial transactions
related to the bonds. Once the bonds arc issued, the City has no practical role in the financing
except if the bonds are later refunded.
,rD+1A 0
41 51
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WELIJNQTON H. LAW
ROSE" J. LDIDALL
T. JAY SALMQI
ROBERT C. LONG
i�Xuf11�71`� lIllu lI
TO: Rick Wolfsteller. City Administrator
FROM: Stephen Bubul
RE: Housing Revenue Bonds
As you know, the City is considering the issuance of housing revenue bonds (Housing Bonds)
in order to finance construction of a senior housing facility in the City. You asked me to explain
how these proposed bonds differ from the general obligation bonds (G.O. Bonds) that the City
typically issues for various City projects.
In the case of G.O. Bonds. the City issues the bonds and uses the proceeds from the sale to
finance a governmental function --such as sewer or water improvements. To repay the bonds, the
City pledges various revenues --special assessments, or revenues of a utility system --but also
pledges the City's full, faith and credit. This means that if revenues are ever insufficient to pay
the bonds, the City must levy a property tax against all property in the City. Potential investors
look to the City's financial condition and credit rating in dctemtining whether to buy the bonds.
In the case of the Housing Bonds, the City issues the bonds but does not directly use the
proceeds. Instead, the City loans the proceeds to a nonprofit. 501(c)(3) corporation, which uses
the money to construct a housing facility intended for seniors. The borrower repays the loan
from the revenues generated by the housing facility. To repay the bonds, the City pledges only
the amount that the nonprofit borrower is obligated to repay under the loan agreement. The City
does not pledge any of its own funds or its full faith and credit. If revenues from the housing
facility are insufficient to repay the bonds, that is simply a risk the bondholders bear.
The loan agreement between the City and the nonprofit corporation is assigned to a bond trustee.
The corporation makes all payments directly to the trustee, who handles all financial transactions
related to the bonds. Once the bonds arc issued, the City has no practical role in the financing
except if the bonds are later refunded.
,rD+1A 0
41 51
Rick Wolfsteller
June g. 1995
Page 2
The buyers of the Housing Bonds look to theborrower's financial condition and the strength of
the project that will be built with the bonds; they do not look to the City at all. Because of that
fact, the Housing Bonds have no effect on the City's credit rating or its ability to issue other
bonds. The interest rates on these types of bonds are higher than for G.O. Bonds, because the
security is less certain. The riskier the project, the higher the rates will be.
The Housing Bonds are often referred to as "conduit bonds." because the City is really just a
conduit for the issuance. In a sense, the City lends its name --and its authority under state and
federal law to issue tax exempt bonds—to allow low—cost financing for a nonprofit corporation.
But in every respect. the borrower is the entity that must repay the debt
In this case, the original borrower was to be the Monticello Senior Housing Alliance, Inc., a
nonprofit corporation made up of representatives appointed by the City Council, the HRA and
the community at large. The Presbyterian Homes organization would be the project manger for
at least the fust few years. That structure has not worked as well as had been hoped, as the
corporation does not have a "track record" or any additional assets or credit that would satisfy
potential bond buyers. As a consequence, interest rates on the Housing Bonds would increase
to a point where unacceptably high rent levels would be required to cover debt service payments.
Instead, Presbyterian Homes Housing and Assisted Living, Inc. has been proposed as the owner
of the facility, and the borrower of the bond proceeds. The Wedum Foundation will provide
5150,000 of equity, and the Presbyterian Homes Foundation will provide $50,000, in both cases
to be repaid from project revenues without interest. Several related Presbyterian Horncs entities
will also guaranty payment of the bonds until the project has produced revenues covering 120%
of debt service for at least two years. These changes significantly improve the financial picture
of this project, and make it possible to issue Housing Bonds at a lower interest rate. which in
tum keeps the rents at an affordable level.
The bond documents allow for initial transfer of ownership to Wedum/PHM Affordable Housing,
Inc. (a nonprofit corporation that is waiting for approval of 501(c)(3) status). The documenu
also allow for an eventual transfer to the Monticello Senior Housing Alliance if (1) the project
is fully leased. (2) it has produced rent revenues that equal at least 120% of the annual debt
service on the bonds for two years, and (3) the equity loans made by Wedum and Presbyterian
Homes arc repaid. Again, whatever entity owns the facility, it is that entity, and not the City,
that is liable to make payments on the Bonds. Also, the City or Presbyterian Homes may arrange
for Monticello Senior Housing Alliance to serve as an advisory board for the project whether or
not that entity takes over the ownership.
The property would be acquired from the hospital district under the sante terms as initially
discussed, with the addition that the $73.000 note to the hospital would be paid as soon as
possible after the facility is fully leased.
If you have further questions on the Housing Bonds or any related matter, please let tee know.
JUN- 1-95 THU 10:35 PRESBYTERIAN HONES CORP. FAX NO. 6126316108 P.02
Memorandum
DATE June 1, 1995
TO; Monticello City Council
FROM: Monticello Senior Housing Alliance, Inc.
SUBJ: Monticello Senior Housing Alliance Mississippi Shores;
Our Current Position and Recommendation
Monticello Senior Housing Alliance Is recommending that the TEFRA hearing action
approved by the Monticello City Counc0 earlier be amended to allow for Presbyterian
Homes of Minnesota to Issue the bonds as well. All other components of Information
presented to the Monticello City Council and HRA remain unchanged and consistent.
The Monticello Senior Housing Alliance has been working on completion of Mississippi
Shore3 for several months, We are getting dose to enabMV construction to start but are
constrained by the following:
• Marketing plateau at 17; short of the required 24
► Financial proforma Is still tight - conatruction costs are approximately 3,000/unit
higher than ardidpated
• 501(c)3 determination has been received
• Sales tax exemption still pending
Factors that ere complete Include:
► Architect plans and construction documents
► Contractor and not -to -exceed price
► TIF and Development Agreement
• Approval for bonds
• Marketing and waiting tist (Senior Innovations)
. Market feasibility study (Pat McCullough)
Presbyterian Homes proposing to:
. Use existing PHM 501(c)3 (Presbyterian Homes Housing and Assisted Uving, Inc.
or Wedum/PHM AfPordable Housing, Inc.)
. PHM guarantees during rent -up
► PHM guarantee 'bums Or after 2 years cash How
. Wedum Foundation equity - no Interest loan $150,000
PNM equity $50,000 - no Interest loan
► PHM Management Contract
► Advisory Board from Monticello
. 75,000 note paid to hospital first - probably within 2 years of rent -up
Can be transferred to%ownsd by Monticello Senior Housing Alliance provided that:
• PHM guarantee "burned ofr - 1.2 coverage for 2 consecutive years or
replaced
PHM and Wedum Foundation pay back oquity
`J
JUN- 1-95 THU 10:36 PRESBYTERIAN HOItES CORP. FAX Nil. 6126316108 P.03
Memorandum
MondoeUo 8e for Mousing AManr^ Inc.
June 1. 1995
Page 2
Benefits:
► Construction starts right away - could be as Boron as June 22, 1995
. Interest .etas reduced 50 basis points
► Renta reduced approximately >610/morrth
►
Conditional use permit Issue goes away
► Benefits - cash flow increase to 1.2+
Next Steps:
► TEFRA hearing City Council on June 12 (2 was notice)
► HRA - modfly TIF and Development Plan (can happen at any meattng)
► dba Mississippi Shores
P. Purchase AgreemenHland
► Construction review finalized and positlonad - begin
► Borden - finish financial feasibility
► Bond documents completed
Presbyterian Homes of Minnesota was inowporated In 1953. Key to Its start was Dr. West,
Senior Pastor of Home of Hope Presbyterian Church and Dr. Kagin from Macalester
College, among others. Sinoe that time, Presbyterian Hames, has grown Into an
organization with nine corporations operating approdmately 1,600 units across the
metropo0tm area. Presbyterian Homes has three business foaues Including:
A. Nursing Homes
B. Housing and Assisted Living
C. Community Services
Presbyterian Homes serves approximately 3,000 aider adults each year, has 1,500
employees and an operating budget of appro)dmataiy 40,000,000. Presbyterian Homos has
klemifled the opportunity to servo older adutb through bu lding affordable housing as one of
its strabglc options.
End of Memo
50
Council Agenda - 6/12/95
A- RF.FF F.N . . AND BACKGROUND-
At
ACK ,RO 1ND-
At the last meeting, the Council was presented with a request for approving
a charitable gambling license for the Minnesota License Beverage
Association Children's Fund at Joyner Lanes. It was my understanding the
license application was denied because the organization was not local and the
Council felt there were local organizations that could handle the gambling
activity.
Upon informing Pam Dane, owner of Joyner Lanes, of the Council's decision,
she was quite surprised by the Council's action knowing that no other license
has ever been denied by the Council. She indicated that had she known this
would be a controversial item, she would have been glad to attend the
meeting to explain her position and to have a representative of the
Minnesota License Beverage Association Children' a Fund in attendance.
Since she feels this is an important issue for their business, she has
requested that the Council allow her to present additional information and
requested reconsideration of her gambling license request.
'Nadu!
I met with both Pam and Peter 11, Executive Director of the Minnesota
License Beverage Association Children's Fund Gambling Organization. Mr.
Mandell indicated that other communities where they operate charitable
gambling had similar concerns on whether some or all of the funds would be
donated locally. It is noted that their primary focus has been in the Twin
Cities area, but they would be agreeable to donating a set percentage or
dollar amount locally for appropriate activities. At this time they aro
suggesting they would be agreeable to donating between 20-50'7 of net
proceeds within the city.
One of the reasons Joyner Lanes has decided to consider another
organization to conduct gambling at their facility was that there apparently
havo been some past incidents where the present operation had not always
been open and staffed by the organization. As a result, the customers of
Joyner Lanes are typically expecting to purchase pull- tabs during their
bowling activities, and Pam feels that it is important to have a reliable
organization operate the pull tab booth on a consistent basis so they can
remain competitive with other bowling establishments.
Council Agenda - 6/12/95
Both Pam and Peter Man" will be in attendance at the Council meeting to
provide any additional information they can regarding this request. Within
reason, I believe the MLBA Children's Fund is certainly willing to donate a
portion of the proceeds locally, provided there are acceptable organizations to
receive the funds.
Council could reconsider its previous action and allow the MLBA to
operate a pull -tab gambling activity at Joyner Lanes with the
understanding that between 20 - 50% of the net proceeds must be
donated to local organizations.
2. Council could approve the gambling license request based on a
different percentage of net proceeds being donated y.
3. Council could deny the request. C
14
f:. STAFF RPrOMMF.NDATION:
Since the City Council may not be aware of all the details ncerning the
present operating pull -tab activity at Joyner Lanes, we are not in a position
to fully understand why Joyner Lanes may want to Beek a different
organization to operate the pull -tab operation. In the past, Council has not
denied an organization or a business's request for a license but did want the
ability to review the charitable donations that have been made by the
organization to see where the funds are going. While we have never set a
minimum percentage, most of the current gambling licenses are local
organizations and thus contribute a larger percentage of their donations to
local activities. Naturally, just because it is a local organization, it does not
mean that all of the proceeds are donated locally as is evident by
contributions to surrounding comrnunity activities and national
organizations. The same would probably be true of the MLBA in that their
primary goal is providing funds for children, but it may be through Twin City
organizations in addition to a minimum percentage the Council could
establish to be local.
Copy of letter from MLBA and brochure on the Children's Fund; Resolution
authorizing iasuance of gambling license.
MINNESOTA LICENSED BEVERAGE ASSOCIATION
y CHILDRENS' FUND, INC. 66911W Ave Nu
Mnmrappif. MN SSM
(612)522.9614
Mr. Rick WolfsteUer
City Administrator
City of Monticello
250 East Broadway
Monticello, MN 55362-9245
Dear Rick:
Pursuant to our meeting on Tuesday, enclosed you will fend some information on the MLBA
Children's Fund concerning our activities in lawful gambling. 1 hope this proves useful to the
council in evaluating our premises permit application.
As we discussed, our policy regarding donations is to try to identify when possible, local groups
who meet our giving guidelines. As we discussed, the City of Hastings expressed similar concerns
when we firsts applied for a gaming permit in their city. We promised the members of the
Hastings council that we would be good community partners and they approved us on the
condition that our re-Ucensing would be directly tied to the donations we made in their city. We
have recently concluded our re-Ucensing process and the City of Hastings has unanimously
approved our permit.
After discussing this matter with my board of directors, 1 can promise you that our goal is to
donate between 20% and 50% of our net proceeds within your city. We hope to be able to
accomplish the 50% donation level, but I can promise you that a minimum of 20416 will be
donated.
Please feel Gee to give me a call if you have any questions.
Sincerely,
0//,
R. Peter Madel III
Ercecutivo Director
6A
Oreantratlon
Cretin Durham Hall H.S.
Cystic Fibrosis Foundatm
Catholic Parents Club
Hastings Athletic Association
Hastings Hockey Association
DARE • Hastings
Highland Little Leage
Daytea's Bluff Boosters
Make-A•Wish
Boys &ad Girls Club
Young Life of St. Paul
Friends of Kids Park
MLl;A Children's Fund
Donations
July 199) - March 1995
§i y Amount
St. Paul
60,000
Mpls,
10,000
St. Paul
10,000
Hastings
5,000
Hastings
5,000
Hastings
5,000
St. Paul
1,650
St. Paul
3,200
Minneapolis
1,000
Sl. Paul
2,600
St. Paul
2,700
St. Paul
2,800
RESOLUTION 95
-
RESOLUTION AUTHORIZING THE ISSUANCE
OF A GAMBLING LICENSE
WHEREAS, the MLBA Children's Fund of Minneapolis has submitted an application
to the City Council of Monticello for issuance of a charitable gambling license to
conduct gambling at Joyner Lanes located in Monticello, Minnesota, and
WHEREAS, upon review of the organization's activities, the Council is not opposed to
the gambling license being issued by the State Gambling Control Board, and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the MLBA
Children's Fund application for license issuance listed above is hereby approved, and
the Slate Gambling Control Board is authorized to process the application.
Adopted by the City Council this 12th day of June, 1995.
Mayor
City Administrator
Council Agenda - 8/12/95
7. Consideration of a mquest for a psarking stall and driveway design
con itio col use permit ApplicanLRay SchmidL
e. C'nngideratinn of a ==nst for- con itio al use permit which wo ■ld allow
outside storage in an_ I-1 24oe- Mn11rnnL&y Schmid . (J.O.)
A_ iZFFERF.N .F. ANP 13ACKGROUND:
Ray Schmidt requests that the City Council consider granting his company two
conditional use permits, which would allow an expansion of his manufacturing
facility. The proposed expansion calls for development of a 9,000 eq ft addition to
the existing structure. The addition would be located on the north side of the
existing building and would be used primarily for loading equipment onto trucks.
City staff, along with the City Engineer, has reviewed the site plan in detail and
found that it meets site plan requirements; however, the site plan does call for a
slight reduction in the standard driveway and curb improvements, thus creating
the need for the conditional use permit.
The City's standard requirement for curbing requires that a curb line be placed
along the perimeter of all parking and drive areas; however, if it can be
demonstrated that in I-1 amd 1-2 zones curb areas are not needed for drainage
purposes or needed to channel traffic, then a conditional use permit option is
allowed, which allows a reduction in the standard requirements. According to the
attached site plan, the areas proposed to be without curb appear to be in areas
where the curb is not needed for drainage or to channel traffic; therefore, approval
of the request for the conditional use permit allowing a reduction in the driveway
and parking standards appears appropriate.
The site plan also calls for development of a small outside storage area. According
to Ray Schmidt, he plans on screening the storage area through development of a
screening fence as required by ordinance. Therefore, it also appears appropriate to
grant the conditional use permit allowing outside storage.
The Planning Commission recommends approval of both requests based on the
findings, noted below.
B. ALTERNATIVE. ACTIONC;
DECISION ONE - PARKXNG STALVDRIVEWAY DESIGN
1. Motion to recommend granting the request for a parking stall and driveway
design conditional use permit.
This alternative could be based on the finding that the granting of the
conditional use permit allowing a reduction in the standard design
requirements for parking and driveway design is appropriate in this case due
13
Council Agenda - 6/12/95
to the fact that the curbing proposed to be eliminated with the site plan is not
needed to channel water, is not located in an area that is commonly used by
the public, and is generally located in an area of possible future expansion.
2. Motion to deny granting the parking stall and driveway design conditional
use permit.
City Council should select this alternative if it feels that the case has not
been sufficiently demonstrated for allowing a reduction in the driveway
design standards. Perhaps it is the view of the Council that the curbing
should remain in place to properly channel vehicles away from the unpaved
areas. This alternative would be inconsistent with approvals granted to
other businesses.
DECISION TWO - OUTSIDE STORAGE
1. Motion to approve a conditional use permit allowing outside storage.
This alternative could be based on the finding that the proposed outside
storage is relatively small and will be screened and maintained in accordance
with the requirements outlined by ordinance.
2. Motion to deny a conditional use permit allowing outside storage.
(`_ STAFF F..O MF.NDATION:
DECISION ONE - PARKING STALVDRIVEWAY DESIGN
Staff recommends alternative 01. Granting of the conditional use permit as
proposed under alternative 01 is consistent with the conditional use permits
granted for allowing similar reductions in driveway design standards. The action to
approve would be consistent with what the City has done for Standard Iron,
Marties Farm Service, and Suburban Machine A Manufacturing.
DECISION TWO .OUTSIDE S'T'ORAGE
Staff recommends that the City Council select alternative 01. The proposed outside
storage area is relatively small, and staff has been assured that the area will be
properly screened and maintained in accordance with the city code.
D_ SUPPORTING DATA:
Copy of site plan; Excerpts from ordinance regarding conditional use permit
allowing reduction in driveway design requirements; Excerpts from ordinance
detailing requirements for outside storage in an I.1 zone.
A conditional use request to allow outside storage in an 1-1 zone
and also parking stall and driveway design.
Lj
Lim-
NONTICEUA) ZONING ORDINANCE
158-4: CONDITIONAL USES: The following are conditional uses in an
"I-1" district: (Requires a conditional use psrmix based upon
procedures set forth in and regulated by Chapter 22 of this
ordinance).
(A) Open and outdoor storage as an accessory use provided
that:
1. The area is fenced and screened from view of
neighboring residential uses or, if abutting a
residential district, in compliance with Chapter 3,
Section 2 (G), of this ordinance.
2. Storage is screened from view from the public
right-of-way in compliance with Chapter 3,
Section 2 (G], of this ordinance.
3. Storage area is grassed or surfaced to control
dust.
4. All lighting shall be hooded and so directed that
the light source shall not be visible from the
public right-of-way or from neighboring residences
and shall be in compliance with Chapter 3,
Section 2 (H),' of this ordinance.
5. The provisions of Chapter 22 of this ordinance are
considered and satisfactorily met.
�'3 P>
If
Stall aisle and driveway design requirements
as noted in (k) Surfacing, (o) Curbing and
Landscaping, and (r) Curbing, may be lessened
subject to the following conditions
I. Any reduction in requirements requires
completion of the conditional use permit
process outlined in Chapter 22 of this
ordinance.
ii. Final approval of parking and driveway
drainage plans associated with
conditional use permit request shall be
provided in writing by the City
Engineer. Engineering expenses greater
than portion of building permit fee
allocated for engineer plan review shall
be paid by applicant prior to occupancy
of structure.
iii. A surmountable "transition" curb or
cement delineator must be installed as a
boundary between an outside storage area
and a parking or drive area.
iv. Development of a curb along the boundary
between a parking area and an area
designated on site plan for future
parking is not required if said curb
line is not needed for drainage purposes
as determined by the City Engineer.
V. Exceptions to the standard• curb
requirements do not apply to any parking
or driveway perimeter that runs roughly
parallel to and within 20 feet of an
adjoining parcel.
vi. This conditional use permit is allowed
only in I-1 and I-2 sones.
vii. Drive areas that are secondary and not
used by the general public and not used
for routine delivery of goods or
services do not require hard surfaeing
or curb unless hard surface and curb is
needed for drainage purposes as
determined by the City Engineer. Access
to such drive areas may be restricted by
a gate whicthmust be closed after each
use. At such time that routine use is
noted, the drive area shall be paved.
110NTICELLO EONIN ORDINANCE
(0192, 7/9/90)
-7,Q v
Council Agenda - 6/12/86
Motion to approve conditional use permit request to allow expansion of
an ambulance garage.
Motion to deny approval of conditional use permit request.
Motion to approve conditional use permit request with conditions.
The Planning Commission recommended approval of the conditional use
permit allowing expansion of the ambulance garage for the following reasons.
Even though perking is a problem, the two -stall ambulance garage
expansion will result in the loss of only two parking stalls, which
should not contribute seriously to the parking problem.
According to Barb Schwientek, the Hospital District remains
committed to development of the interim plan identified jointly by the
City and Hospital District in 1893, which will ultimately correct the
parking problem for the uses now in place. This plan is to be executed
subsequent to the planned widening of Highway 76, which is planned
for completion within the next 3-6 years.
City Planner's report; Site plan of the interim plan for hospital parking per
1993 study will be shown at the meeting.
rN
JLN 17:1b Nal �— I w Northwest Associated Consultants, Inc.
C Ya ■A N P LANNI NG - ens lel N • MARKET RE sE A A C N
1VII+MORAMUM
TO:
Monticello Planning Commission
FROM:
Stephea Guttman
DATE:
Jane 1, 1995
RE
Monticello - Hospital District Conditional Use Permit
FRE N0:
191.07 - 95.
BACZGROEM
The Moaicello - B* Isle Hospital District is requesting approval of a Conditional Use Permit
which would dim Bre escpantba of rho ambob= garage at the HospiW ampas. The property
is subject to a Dong tecta devdopment plan which is governed by a Planned Unit Develapmem.
PUD permit approvals at given by Cold Use Ptrrmit.
UXIA1'V
The Hospia Maki has imWUW a program by which these are ambulance empWyees an duty
24 bouts a city. rte, ffio smbulaooe Empty= were on call, and as sw%, regained parking
apron im wdWvly aq)aeatt w tate ambulance garage when they cam in to nVoW to a requau
for amthasnee auvim Since the timinj is so longer cdtit:al for the ambubm aperatbns, the
HoaplW Dimiet would lilm to replace two pMdag spaces with enclosed ambulance gang am.
Tho concsmm which this request presents is the ioawe in the demand on the main employee
puking area. Ambubnoe employees will new put in the main areas when parking space are
already in shots maly. 7U long term plan for the EkmpiW campus was deslpted to
accommodate a coordinated a ptrulon of the Hovinl facilities. and at the same time, permit a
phased eqansion of the puki g areas sat u to grub ally get to a point at which the puldrq wpply
4f-
5775 Wayzata Blvd. • Suite 555 -SL Louis Park. bW 55418 • (812) 595.9838•Fax. 595.9837
JUN -01-1995 17:1e Nil.
was adequate to save all uses on the site. The elimination of even a Lew spaces, and the
relocation of the demand to other areas, would be counter to the Intent of that plan.
At the very least. the Hospital should consider rapladag the lost spaces by expanding the other
pasi3ng areas in ocnformaaoe with the concept plan. Additional parld to satisfy some of the
current pasiong shortage could also be considemd in comiection with this project While much
of the campus plan was dad into the County's ty's improvements of County Highway 75, that
imprvvemem was eat made a aitical component of the campus plan. As the use of the Hospital
site continues w increase, incremental increases in the patting apply should be made.
Conditional Use Pe®its ase to be reviewed according to the following factors:
1. Relations to the Comprehensive Plan.
2. Geographical area involved.
3. Tendency to dcpedats the area.
4. Charade of the surrounding arra.
S. Demonstrated need for the use.
These is no doubt that the use of the ambular>ce garage L cooaiste at with the long tarn use of the
property, and the ara. however, the parking situation, has already been a problem, and relocating
existing parking to overburdened parting Iota could add to the coaasm in the area. Mitigating
the Ions of parking would be consistent with the Ordim m regah,ments for the coadduration of
Conditional Use Ptecmits, and well as the Hospital ampan plan. The Planning Commission must
make a finding of fact an these issues as a part of its recommendation.
ALTERNATIVE DECISIONS
Dedsias A. Approval of the Conditional Use Permit to expand the ambulance garage on the
Mooticello-14 Lake Hospital property u PMPoaed.
Deddon B: Denial of the Conditional Use Permit to expand the ambulance garage on the
Monticello -big Lake Hospital property.
Drddoa C: Approval of a Conditional Use Permit to expand the ambulance garage on the
Mamlodlo-Blg Labe HospiW property. subject to cis.
RECOMMENDATION
As noted in this nV01 , aro would not approval of the expansion of the ambulance
gatttge without, at a mWmura, the replacement of the lona parking spaces. The Hospital campus
plan was designed to permit an incremental Increase In the parking t Wly In the MOW area,
evennAlly dlmlmting the patting dd1ch which ooa exists. Asa rani. we would reoommend
that any approval of the ambduce garage's expand— In conditioned upon a net Increase in
overall Hospital campus parting, consistent with the approved long term c=4+t plan
Council Agenda - 6/12/95
W „ ,n• 17:,. -r, . ,
Please see the attached Planner's Report for detail regarding these requests. Please
note that decisions relating to signage were tabled by the Planning Commission at
the previous meeting and will not be considered by City Council until the meeting
scheduled for June 26. The items that Council is requested to consider pertain to
the rezoning and the conditional use permit allowing outside sales from wagons.
DE'cum ONE - CONSIDERATION OF REZONING FROM PZM TO B4
Motion to approve rezoning based on the finding that the proposed rezoning
would be consistent with the present and future land uses in the area.
Motion to deny the rezoning.
DEcmoN'Iwo - CONSIDERATION OF CONDMONAL USE PERMIT
Motion to approve conditional use permit allowing outside sales from wagons,
subject to the condition that the wagons be located on the westerly side of the
parking lot outside of areas identified for parking and conducted in a fashion
that does not diminish perking capacity.
Motion to deny the conditional use permit.
Planning Commission and staff recommend alternative ql under Decisions 1 and 2
above.
Please note that it was not reoognized that the facility is located in a PZM zone
until weeks after the remodeling of the clinic had begun. It was truly a surprise to
find that this property was placed in a PZM zone. It is our view that the proposed
rezoning corrects an obvious problem in the zoning map.
Planners Report; Application materials.
JrN Northwest Associated Consultants, Inc.
Cj URBAN ►l ANNI NO • DESIGN • MAaKa T A E taA AC N
MIIKORAMUM
...
TO:
Plmniog Cominimim
FROM
stepbm fhit mn
DAM'
Jum1, im (staff revision June 8, 1995)
RL'
manriallo - River sum stub
FIIS NO:
191.07 -95.11
BACKGROLM
Owam of me ballQlns Is the im®oNm of Highway 23 tad Riva Strut have %mired for a series
of approvals rdatlag to me conversion of that boildin to a malC O to= ctlmmmial bull ft,
hrrbrditlg andgm Bale% moms affim usm End catdw fs>mds mallet aft. Mm dte is cuumdy
mood Padmmaoos Zom - ldbted OrLhO. M dimly is Mudared to dow primarily faldwlial
and Iowa icy commercial utas.
ANALYSIS
RsmakS zbe nmlos request b lmpae toot to coosldar 1iru. dace u t/m atietx um diapodtion
d some of the other appihmdans Bach of the Sve bloc a l m l i m m Unn and Palm Sheets is split
between PZM and B-4 Zoatog. wkh PZb1 on the hdf blocks facing River street, and sl on the
Galt b1mb ficins Broadway. B app ers that this aodq pan= may have boon c abliahod to
tmuitim ben eea the more inum dowuwwn cmnm= l arca to tha R-1 Dlstda whkh faces
most of the Idtsalafwl Riva.
5775 Wayzata Blvd • Suite 555 - St. loris Park. MN 55416 - (612) 595.9M -Fax. SVI-M7
/0,//,*
On this particular block, kmnver, the dues frontage is part land ratlror than mtMruoal In
add—, the keg term land use d this ma. 8 the dvcdwu, maybe transitioning to more
a rgpoz al commercial nature (am Comptehensive Pian matrrds ander a rspaete agenda ium).
For this arra, thme has been diisorssioa d a tease of the doarntoan area as a site for eatwAiarmnt
and tmcrtudonal related land ass. A zoning which rdkas thrt intent would most a.,
be designated B4, rwba than Md or R-1. Rewmags are to be considered according to faa7nm
which prtmutily "-In& the hap a an the area, and the guidecei of the Comprehensive Phan. A
findipg that a 114 momag district would be most eomalsted with the long term forum land arm of
the area would support the reaning nquated has.
Cand1dond Un Pond4 Farmer's Market Cam The aprpdi-- wishes to q=W a'farm es
mariner' an an outdoor sakes cart. rte proposed loeatim of the art would be on the River Suw
frarmge of the p mpvty. Outdoor said Is allowed in the E" Disuict (but ens the PM Disw)
by Ceod'itinml Use Permit.. 7U Ordim m zegahes flue eooditdoas be met in order to eontlder
the approval of such a permits, mese are at follows: -
1
ollows:
1. Outside Wes ate limited to thirty petmnt of the size of the pdmdpal use of the
Property (which may be increased by the t^1q).
2. Ovide sales ams are fenced ad screened fmm view of neighboring resideatial
ora or disuim
I IJghting is hooded, and will not cart a Sit= on mideattial stns of pubis atuaun.
4. rte ulna uea is grassed at naficed to control dust.
S. Chapter 22 Ptovition (Conditional Use Petah admiafauathm section) ate met.
Each of the first four conditions would be mat under tshe prWmd plea. Tse Chapta 22
provisions include candderatieo of the aumoumding aeighbottood lead utas, and the proposal's
irttpaet an the area. In this care, the proposed ret would be located an the River Surma adde of
the bulldog, wham them is no new to dr-stisu psift Mo. any traiiie copping to pat rw&a
the '-a would be parking on the strew. A mm It location for this use, if it warm
to be allowed, would be at the northwest comer of the site, wham it would be accessible from
bah the property's patting lot, and the tmrdclpal padding Its to the west. With this telocadon,
the can would moa the MQat mems d the Zoning otdlaaeoe.
DECISION AL7UNA77M
Dnaddon I
A. 71s Raaatng fzaa PZid to 111-4 should be aflmr4ed, upon a finding that such a
msaalrrg would be comsistrat with the prment and tat ue land uses of the alma.
B. no Razoaing from PZM to S4 should not be approved, upon a finding that the
eunew sonfag best paotecta rho present and fine led tram. as well U the riverfrom
Dteddon 2
A. The Cotdldoml Wim plrstmit for Outside Sala abmsid be apptmved U submitted. upon
a iiadiog that the use will meet all applkable sandtds, sad will be condttetu with be
rmundiq hod used in the ams.
8.7be CoodWmd Use Permit for Outside Sales abate! be approved, roaditkeed apron
a telocatloo d the oks stn to a dem whish is a6w of to the oft -tams paddq ams d do
ptupaty, upon a Rodittg that ft use will be comdatmt with the area load uses, and will
no ovesbutdm the pmbde sum u or patting In the nighbotbwd.
C. 7be Condidanl Use Penh tat Outside Un ahoald be dented, upon a flodinj that
the use will be inotnuisteot with the loop tam hind ere plan for the ate.
RBCOMWINDAMON
The River Sanas Sodom would appear to be a podd" s &m— to the dDwnwwn commadd area,
patf milady In H& of the possible loos team sue of 8m txatal bst6m dinda as an
., , „ i,.. ar roneatbrt destioa<loo As =14 aro would m mm mood approval of the
of the pamd to BA am the Conf'dlo nal Use pe a t for the Farmer's Madoet Cart. subjea to Its
rdocadon to a site whh ncaft otf-saeet parking.
io AU
r
RIVERSTREET STATION L.Z.P.
Planning Comission recommended
moving the Farmers Market site
to the SW side of the building
to avoid traffic problems on
River Street. RIVER STREET
13282 ■r
Ad
1
plvEq:<iTREET STATION
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rz.
Council Agenda - 6/12(95
(J.O.)
Dave Peterson requests that the City consider approval of a request to
expand the outside sales area of the car dealership. The amendment to the
CUP is needed because the existing CUP allowed an outside sales area that
is 7.5 times the area of the principal structure(s) on site. According to the
measurements provided by Peterson, the sales area after the expansion will
be approximately 159,000 sq ft (3.6 acres), which is 9.6 times the area of the
principal building.
The expansion of the site as proposed appears to be consistent with the land
uses in the area and does not appear to present land use related problems.
Storm water management is not a problem due to the fact that Peterson
recently funded a City -installed storm water project ($43,000) that enabled
full development of his land as proposed under the CUP request.
LANDSCAPING
The most significant issue relating to this request pertains to the landscaping
requirement. The original project approved in 1977 was approved prior to
the city landscaping ordinance. Now that an amendment to the CUP is
requested, it is appropriate to require additional landscaping in keeping with
the ordinance now on the books. According to the ordinance, the site area
results in the need for 38 overstory trees. This requirement can be reduced
by up to 50% in exchange for planting of shrubs and other low-level
landscaping.
According to Peterson, he is supportive of meeting city landscaping
requirements; however, he is concerned about the potential of trees blocking
the view of his vehicles. He has also noted that in the near future, he plans
on completing a major improvement to his showroom and existing outside
sales area. Detailed plans for the upgrade show improvements to the outside
sales area that include landscaped islands and tree plantings along the
exterior of the remodeled structure. Peterson is concerned about city
requirements to complete the landscaping requirements today when it is
likely that within a year he will be making additional landscaping
improvements in conjunction with his planned expansion.
Perhaps it make sense to require partial compliance with the landscaping
requirement at this time and require tWl compliance at such time that the
Council Agenda - 6/12/95
dealership is upgraded. Under this concept, Peterson would plant trees in
areas that do not cause an obstruction of the view of vehicles for sale and in
areas that will not be impacted by the proposed expansion. Such areas would
include the southern and western boundary of the property.
Motion to approve an amendment to a CUP which would allow an
expansion of an outside sales area subject to the following conditions:
Sales area must meet conditions as identified in the city
ordinance.
At least _% of the tree requirement must be met with the
expansion of the sales area at this time. Full completion of the
landscaping ordinance must be achieved within the next 24
months or prior to granting of occupancy of proposed remodeled
facility, whichever is sooner.
Motion to deny an amendment to the CUP allowing expansion of an
outside sales area.
C. STAFF RFA FNDATION:
Staff recommends approval of the CUP as requested with the provision that
at least 30% of the landscaping be installed at this time (13 trees). Council
may wish to add a provision that requires Peterson to establish a cash eacrow
with the City to guarantee installation of the remaining landscaping in the
event the facility is not expanded as proposed,
With regard to Peterson's concern about trees blocking the view of his
vehicles from Highway 26 and Oakwood Drive, this should not be a major
problem because the city ordinance does not dictate where trees are planted.
Peterson is at liberty to situate trees in areas that will not obstruct the view
of his vehicles. Such spaoc can be found along the property lino with the
parcel to the south and along the Sandberg Road property line. In addition.
50% of the tree requirement can be achieved via landscaped plantings which
can be strategically located to complement and not block the view of vehicles
for salo.
n_ SUPPORTING DATA:
Various correspondence; Copy of site plan - sales area expansion; Copy of site
plan - proposed remodeled facility; Excerpts from the ordinance governing
outside sales.
Is
7-)- �
yf
250 East Broadway
P. O. Box 1147
Mondcdlo. MN
55362.9245
)lIE10
Phony (612) 295-2711
Metro: (612) 333-5739
Fax. (612) 295-4404
TO: Mr. Dave Peterson
FROM: Jeff O'Neill, Assistant (k�
DATE: May 30, 199b
RE: Conditional use permit (CUP) needs analysis
Terms of existing CUP allows the outside sales area to be no larger than 76096 of the
salsa/office/garage area. See attached letter of May 19,19M, and meeting minutes of
November 7, 1977.
Current configuration:
Main bu�ldiw.
Lower level sq R
12,000
Upper level sq ft
4M
Mim storage aq ft
B00
TOTAL
16JM
Multiplier
7.6
TOTAL SALES
AREA ALLOWED
129,760
Existing sales lot acreage (est.)
4
Fzlating sales lot
wpm" tbotage
1741240
Deficiency
60,490
/a A
Memo
Dave Peterson
May 30, 1995
Page 2
Summary:
Based on the estimates of land area in buildings and outside sales, the present site is
over the limit in terms of the amount of outside sales erea allowed under the original
CUP issued in 1977. New expansion of the outside sales area will require an updated
CUP.
Following is a proposed schedule for applying for an updated CUP:
June 13 Completed site plan and applicatim -
Site plan must show location of aU buildings, parking, and sales area
Also, site landscaping should be ioduded.
June 19 Public hearing notices prepared by City staff
July 3 Planning Commission conside atim
July 10 City Council consideration
I suggest that we get together in the next few days to revieev the ft rmation
req d emente, landsmVing, drainage, and grading, etc., prior to preparation of application
materials. Please all me to set up a meeting.
I suggest that you delay installation of the blacktop until the review process is completed.
Please note that Buffalo Bituminous will be working in the city bar into the summer an
the pathway project
oc Rick WolfWAer. City Administrator
Ck" Aodereon, Buildiag Official
John Simola, Public Works Director
Wanda Kraemer, DST
File
M
q 3-018
250 East Broadway
P. 0. Box 1147
Monri-A , MN
55362.9245
MEMO
Phone: (612) 295-2711
Memo: (612) 333-5739
Fax: (612) 295-4404
TO: Gary Anderson, Rick Wolfsteller, John Simola, Dave Peterson, and Bret Weiss
FROM: Jeff ONeill, Assistant Admioistmtoi:�O •/K�
DATE: May 19, 1993
RE: Parking lot expansion at Dave Peterson Ford dealership
On Wednesday, May 19, John Simola and Jeff ONeill met with Dave Peterson to review his
plana for expansion of his parking lottoutside sales area Following are issues addressed and
conclusions drawn.
STORM WATER DRAINAGE
Peterson explained that a major portion of the remaining unpaved property will be paved.
The low portion of the remaining unpaved area will become a storage point for storm water
runes _...._ .
It was concluded that the plan for paving a major portion of the unpaved area is acceptable;
however, a method for dealing with the storm water run-off that will pond in the
undeveloped section of the property needs to be developed. Initially, it appears that a
beehive catch basin can be installed to allow metering of water into the nearby 12 -inch storm
water line currently in place along Sandberg Road Simola noted that direct deposit of water
into the Sandberg Road storm water system would not be possible bemuse the system is not
sized to handle run-off &am the Peterson property and was originally intended only to serve
Sandberg Road and the property developed by Rant F4dIberg with the Plaza Partners
development. Simola indicated that he would discuss the matter with Bret Weiss to
determine a short- and long-term solution to the problem. It appeared that a long-term
solution could ultimately include the need to develop a larger storm water system extending
from the southwest corner of the Peterson property to the west Detail design and cost of
this system need to be worked out
sa C-11
Memo
Parking Lot Expansion
Dave Peterson's Ford Dealership
May 19, 1993
Page 2
CURBING
Peterson indicated his plans for development of 6 -inch insurmountable curb along the west
and east sides of the parking areas. He showed O'Neill and Simola the alignment of the
curb on the west side of the property, which was proposed to be 3 ft inside of the position
of the stake. Simola stated that it appears that the location of the curb as proposed meets
the 5 -ft setback requirement.
CONDITIONAL USE PERMTNARI[ANCM
O'Neill informed Peterson that the original conditional use permit granted in 1977 allowed
outside sales area that is 7.5 times as large as the principal building on the site. (YNeill
asked Peterson to calculate the total square footage of the principal building, including both
lower and upper floors, and calculate the total square lbotage of the outside storage areas.
If outside storage is more than 7.5 times the area of the principal buildings, then he will
need to obtain a conditional use permit from the City.
I informed him that if a new conditional use permit was necessary, it would be likely that
the would need to comply with landscaping ordinances that were passed since the original
conditional use permit was issued in 1977. Peterson indicated that if a requirement of the
conditional use permit is to install landscaping, he would do so if trees could be planted at
locations that would not cause visual obstruction of outside sales area. CVNeill indicated that
tree planting locations could be selected to complement and not conflict his use .of the
property for outside sales. CVNeili indicated that it did not. appear necessary to halt the
project pending acquisition of the conditional use permit
If you should have any questions regarding this summary, please give me a call.
; a*b