City Council Agenda Packet 07-10-2000
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AGENDA
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, July 10 2000 - 7 p.m.
Mayor:
Roger Belsaas
Council Members:
Roger Carlson, Clint Herbs, Brian Stumpf and Brucc Thielen
1.
Call to Order
2.
Approve minutes ofJune 26, 2000 regular 'ouncil meeting. I (S"<t e (
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Consideration of adding items to the agen a.
4.
Citizen comments/petitions, request and c( mplaints.
5.
Consent agenda.
A. Consideration of a request for a cm ditional use permit allowing a planned unit
development containing a multi-hu ily structure with more than 12 residential
units - Applicant: Silver Creek Rea Estate Development.
B. Consideration of rezoning from I-I to I-lA, Construction 5, Outlot A. Applicant:
City of Monticello Planning ComI ission.
6.
Consideration of items removed from the c nsent agenda fix discussion.
7. Consideration of proposals for sale of$I,645,000 G.O. Improvement Bonds, Series 2000B.
8. Consideration of authorizing execution of a letter of acknowledgment f()f TIF assistance
for redevelopment of the Klucas property.
9. Consideration of making an otTer to purcha e the Jim Eisele property.
10. Consideration of authorizing preparation of a study examining potential development of
second municipal liquor store at CSAH 75 nd East Country Road 39.
11. Update and discussion on land exchange ne -'-otiations with John Chadwick.
(I nformation to be provided at meeting)
12. Approve payment of bills for July, 2000.
13. Adjourn
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MINUTES
REGtJLAR MEETING - M NTICELLO CITY COUNCIL
Monday, June 6,2000 - 7 p.m.
Members Present:
Roger Belsaas, Roger Carlson, Clint Herbst, Brian Stumpf and
Bruce Thielen.
Members Absent:
None
Mayor Belsaas called the meeting to order at 7 p.m. md declared a quorum present.
2. A rove minutes of re ular council meeti of .June 12 2000.
ROGER CARLSON MOVED TO APPROV., 1'1 IE MINUTES OF Tl-IE JUNE 12,2000
REGULAR COUNCIL MEETING. CLINT IERBST SECONDED TfIE MOTION. MOTION
CARRIED UNANIMOUSLY.
3. Consideration of addin items to the a end
Bruce Thielen requested that setting a meetin date for the Personnel Committee meeting be
addcd to the agenda. Clint Herbst rcquested t at a discussion of the construction work at the
Monticello Community Center be added and oger Carlson asked that traffic conccrns on
CSAH 75 also be added to the agenda.
4. Citizen comments/
None
5. Consent Agenda.
A. Consideration of authorizing annual fir works expenditure for Riverfest celebration.
Recommendation: Approve expenditu e of $8,000 for the Riverfest fireworks display.
B. Consideration of an amendment to the I tcrim Use Permit allowing operation of the
Alternative Learning Program in an I-I istrict; Consideration of an amendment to the
Zoning Ordinance allowing public and rivate educational institutions as a conditional
usc in the 1-1 District; and Consideratio of an application for a conditional use permit
allowing a public institution to operate i 1 an 1-1 District. Applicant: WAG Partnership!
Alternative Learning Program. Recom endation: Move to send the item back to the
Planning Commission for further revie .
Clint Herbst requested that Item 5B be removed from the consent agenda for discussion.
BRIAN STUMPF MOVED TO APPROVE TH~ CONSENT AGENDA WITH ITEM 513
BEING REMOVED. BRUCE THIELEN SEC NDED THE MOTION. MOTION CARRIED
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Council Minutes - 6/26/00
UNANIMOUSLY.
6.
Consideration of items removed from the co sent a enda for discussion.
Item 5B, the proposed amendment to an interim use permit to allow the Alternative Learning
Program to be situated in an I-I District was reI oved from the consent agenda for further
discussion. Clint Hcrbst emphasized that at the Planning Commission meeting, the Planning
Commission had discussed at length the reques ed amendment. The Planning Commission was
adamant that the Alternative Learning Program should not remain in the industrial park. It was
the understanding that in granting the interim u e permit that this use of industrial zoned land
would be short term. The Planning Commissi n did not feel public institutions should be
situated in an industrial district. While the Pia ning Commission indicated there was no
problem with the program, they did not feel it elonged in the I-I District. It was pointed out
that the interim use permit would be in force UI til August, 2001 which allows thc school
district time to consider othcr locations for the rogram and there would be no purpose in the
Planning Commission considering this item a rain at this time.
CLINT HERBST MOVED TO DENY THE R QUEST TO SEND THE MATTER BACK TO
THE PLANNING COMMISSION. BRIAN S' UMPF SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
CLINT IIERBST MOVED TO DENY THE I TERIM USE PERMIT AMENDMENT TO
EXPAND THE BUILDING BASED ON A FI DING THAT THE USE IS INTENDED TO BE
TEMPORARY AND EXPANSION OF THE UILDING IS INCONSISTENT WITH TI-IAT
INTENT. BRIAN STUMPF SECONDED T1- E MOTION. MOTION CARRIED
lJNANIMOlJSL Y.
BRIAN STUMPF MOVED TO DENY THE ONING ORDINANCE AMENDMENT BASED
ON A FINDING THAT THE SCHOOL USE S NOT COMPATIBLE WITI-I THE
ACTIVITIES IN TI-IE INDUSTRIAL DIST ICT OVER THE LONG TERM. CLINT
HERBST SECONDED THE MOTION. MO 'ION CARRIED UNANIMOUSLY.
7. Consideration of resolution authorizin sal of, 1 645000 G.O. 1m rovement Honds for
Proiect 98-25C. Chelsea Road West.
Rick W olfsteller provided background inform tion on the project which is currently under
construction, noting the estimated project cos that would be assessed, the amount that would
be covered by the trunk fee charges and the C ty's share ofthe project. It was explained that thc
City is picking up the cost for trunk sewer, tr nk watermain and trunk storm sewer.
Rusty Fifefield from Ehlers and Associates re iewed with the Council the terms and conditions
of the proposed bond sale.
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Council Minutes - 6/26/00
CLINT HERBST MOVED TO ADOPT THE RESOLUTION AUTHORIZING THE SALE OF
$1,645,000 IN G.O. IMPROVEMENT BON S FOR PROJECT 98-25C, CHELSEA ROAD
WEST AS RECOMMENDED BY EHLERS NO ASSOCIATES. ROGER CARLSON
SECONDED THE MOTION. MOTION CA RIED UNANIMOUSLY.
Consideration of acce tin 1999 audit re 0 t.
Rick Borden from Gruys Borden Carlson & ssociates was present and reviewed the audit report
for the year ending December 31, 1999. He n tcd that thc general fund overall balance had
increased by approximately $790,000 and that the City's financial situation was good. lIe also
pointed out that there will be changes in the n xt few years in the tinancial reporting and audit
requirements for municipalities and eXplained what some of the proposed changes were.
BRIAN STUMPF MOVED TO ACCEPT TH 1999 AUDIT REPORT AS PRESENTED.
CLINT l-:lERBST SECONDED THE MOTIO . MOTION CARRIED UNANIMOUSLY.
Consideration of extension of 30" sewer fro
Road 75 throu h railroad.
8rett Weiss, City Engineer, and John Simola, ublic Works Director provided information
about the proposal to extend the trunk sanitary sewer from its termination point on the Bondhus
property to south of the BNSF railroad. Bond lUS is proposing to place additional till on their
property and the school district is requesting c mpletion of the ponding area. 80th of these
items, if done, would make extending the se er line through this area more difficult so it was
being proposed to consider the extension ofth sewer at this time. 8ret Weiss eXplained bow
this segment of trunk sewer fit into the City's omprehensiye sewer system and also supplied
some preliminary cost figures for the propose work which is estimated at $318,912.
BRUCE THIELEN MOVED TO APPROVE "liE FEASIBILITY AND COST" STUDY FOR
THE EXTENSION OF THE TRUNK SEWE FROM COUNTY ROAD 75 TO THE SOUTH
SIDE OF THE BNSF RAILROAD AND AU HORIZE PREPARATION OF PLANS AND
SPECIFICATIONS UPON RECEIPT OF AN EASEMENT FROM THE BONDHUS
CORPORATION AND THE ADDITIONAL ASEMENTS NEEDED TO EXTEND THE
SEWER TO 1-94. BRIAN STUMPF SECON lED THE MOTION. MOTION CARRIED
UNANIMOUSL Y.
ordinance for auto sales in the B-3 District
n 4 500 s uare feet. A Iicant: Dunlo Motors.
A special meeting of the Planning Commissio was held prior to the Council meeting to consider
the requests of Dunlo Motors for an amend me t to the zoning ordinance that would allow
utilization of the bui Iding on the former Wend's site for the purpose of conducting auto sales.
Steve Grittman, City Planner, summarized for he Council the Planning Commission review and
discussion of the request. The recommendatio 1 of the Planning Commission was that the zoning
ordinance be amended to allow for a minimUI size structure of 2,500 square feet and a building
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Council Minutes ~ 6/26/00
to site area ratio of 6%. The Planning Commi' sion also directed the stafT to bring back an
alternative that would graduate the floor area to site area on larger sites so that as the size of the
site area increases so does the building area.
CLINT HERBST MOVED TO APPROVE TII" ZONING TEXT AMENDMENT AS
RECOMMENDED BY THE PLANNING CO MISSION ALLOWING A MINIMUM SIZE
STRUCTURE OF 2,500 SQUARE FEET AN A BUILDING TO SITE AREA RATIO OF
6% BASED ON TI.IE FINDING THAT THE MENDMENT IS CONSIS'T'ENT WITH TI-IE
CHARACTERISTICS OF TilE B-3 DISTRIC". BRIAN STUMPF SECONDED THE
MOTION. MOTION CARRIED UNANIMO JSL Y.
11. Consideration of an amendment to the cond tional use ermit for auto sales in a B-3
District issued to Dunlo Motors.
Dunlo Motors request for a conditional use per lit to operate auto sales in a B-3 District was
approved by the Planning Commission on May 2, 2000. Dunlo Motors came baek to the
Planning Commission in June to request chang s to the conditional use permit relating to the
fencing and channel island.
BRIAN STUMPF MOVED TO APPROVE T E CONDITIONAL USE PERMIT FOR DUNLO
MOTORS TO ALLOW AUTO SALES IN A -3 DISTRICT SUBJECT TO THE
FOLLOWING CONDITIONS AS AMENDE BY THE PLANNING COMMISSION:
I. Retain landscaped island north (!(the huilding nIt reduce in si::e to allow tred/ic to circulate.
2. Installfive/oot wide landscaped xreen space aong lvest and south boundw)' /ines, in accordance
with the Zoning Ordinance requirernents.f(Jr pt rking areas and as approved hy Ci()/ stall
3. Install continuous concrete curbing along the 'est side protecting the land5capingpmn the parking area.
4. Total rejinishinx/re-paving of the entire parkin lot.
5. Fencing instal/cd on south side to bl!UCr "The JlayhOllse" pmn the auto dealer on lefi side to he
agreed on by Peterson Ford, !Jun!o Motors, TI e Playhouse and the City.
6. COll/p/iance with the arnendment to the Zoning Ordinance providing/ill' rninimurn structure si::e of
2, SOU square/E'et and a Inrilding site to area I' tio (~f6%
BRUCE '1'1 HELEN SECONDED THE MOTI N. MOTION CARRIED UNANIMOUSLY.
The Council discussed setting a date for a meeting of e Personnel Committee to discuss vacation and
sick leave accrual limits and also possible changes in orking hours, A meeting was set for
6 p.m. on Monday, July 24, 2000.
Clint Herbst expressed frustration with the problems ( eeurring with the Community Center building
such as the flooring and the pool which you wouldn't xpect to happen in a new building. He hoped that
these problems would not discourage staff from keepi g on the contractor to assure that all work was
completed and all defective work corrected. He also' sked if the staff could come up with a dollar figure
for lost revenue for all the times the pool has been clo ed. There was also discussion on the acoustics in
the Mississippi Room. Fred Patch indicated that the a oustics were designed for when the room was
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COUllci I M illutes - 6/26/00
being used as a reception hall and the acoustics that w rc suitable for that purpose were not suitable for a
meeting room. The stalT is checking into options for it proving the acoustics and preliminary cost
figures run $10,000-$15,000.
Roger Carlson explained that he has been contacted b residents about the truck traffic on West
Broadway. The concern was not only the speed of the truck traffic but the amount of truck traffic
utilizing the road so early in the morning. There was also concern about traffic on East River Street.
ROGER CARLSON MOVED TO DIRECT STAff T CONTACT THE SHERIFF'S DEPARTMENT
REGARDING TRAFFIC CONCERNS ON WEST B OADW A Y AND EAST RIVER STREET.
BRIAN STUMPF SECONDED THE MOTION. MO ION CARRIED UNANIMOUSLY.
Ollie Koropchak, Economic Development Director, u dated the Council on the bus tour and golf outing
and presented the Council with updated community pI' file information.
12. Consideration of payment of bills for June.
BRUCE THIELEN MOVED TO APPROVE A YMENT Of BILLS FOR JUNE. ROGER
CARLSON SECONDED THE MOTION. M TION CARRIED UNANIMOUSLY.
13.
Adiourn.
BRIAN STUMPf MOVED TO ADJOURN A" 8:40 P.M. CLINT HERBST SECONDED THE
MOTION. MOTION CARRIED UNANIMO JSL Y.
Recording Secretary
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City Council Agenda -07/10/00
Consideration of a re uest for a Condi ional lJse Permit allow in a Planned lJnit
Develo ment of 25 townhomes in the CC Zonin District. A licant: Silver Creek
Real Estate. (NAC/JO)
A. REfERENCE AND BACKGROUN
Silver Creek Real Estate is proposing a townhome development on ] .92 acres ofland along
East 7th Street. The paree] adjoins other R-3 housing on either side, and the parking lot for
the yh Street Annex shopping center to the n rth. The concept plan submitted for the project
consists of25 town homes around a central dive and parking area. Most of the townhomes
would include patio space around the perim tel' of the site which are not shown on the site
plan.
The purpose of concept plan review is to ide ltify issues raised by the proposal and provide
direction to the developer as to how they lay be addressed. This report will address
planning related issues which will require s ecific zoning action. The City engineer has
identified storm water management as the pri lary engineering issue, and the developers wi II
need to work with public works and enginee ing on utility design as well.
The primary zoning issue relates to the sele tion of the unit type and density. In the R-3
District, townhomes arc permitted uses in clusters of no more than eight units, multiple
family buildings are permitted in buildings of no more than] 2 units, with more than] 2 units
allowed, hut requiring a Conditional Use P I'm it. The issue raised hy this proposal is the
density of the project using a townhouse style unit.
Monticello's Ordinance regulates density y unit type, rather than by zoning district.
Townhome projects arc allowed to be develo cd at a density of one unit per 5,000 square feet
of lot area, irrespective of the zoning district. Multiple hlmily projects may he developed at
a density of one unit for the first 10,000 squa e feet, and one unit per each additional 3,000
square feet. On this parcel, therefore, a tow home project may contain a maximum of 16
units, whereas a multiple family project cou d be as many as 25 units if all two bedroom
units. Moreover, under the general ceo reg lations, ground floor units may be developed
only at a density of one unit per 9,000 squa e feet, with upper floor units at one unit per
3,000 square feet. The PUD is necessary to "import" the R-3 density standards onto this
ceo site. Otherwise, the density of a townh me project (where all of the units are ground
Hoor units) would be even further restricted.
The proposed project shows 25 units, an a propriate density under the multiple family
scenario, but far in excess of the allowable t wnhome density. 'I"he rationale commonly
applied for requiring town homes to be built at lower density is that multiple family projects
will typically construct the same number ofu lits on a smaller amount ofland, thus leaving
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City Council Agenda -07/10/00
more area for green space and on-site re reational opportunity. Apartment units are also
typically smaller and result in a lower trafic count.
Townhomc units are often favored by citi s because they have a higher likelihood of home
ownership and are larger. '1'0 allow this number of townhome units on the subject site,
however, would require an amendment tt the Zoning Ordinance which would change the
way density is calculated within each zoni g district, together with the PLIO approval to use
the R~3land uses standards and private dri e access to each unit. Such an amendment would
probably be written into the R-3 District Conditional Use Permit regulations to allow
townhome development at a density equal to apartments when developed as a Planned Unit
Development. The PUD review for such C' ses should focus on whether the design of project
attempts to compensate for the decreased green area and increased traffic when compared
to a multiple family development of simil r density.
The accompanying site plan provides a ew comments on site plan issues if the project
proceeds as a townhome development. T' ese include:
Increase driveway width in traffic reas to 24 feet.
Look for opportunities to increase internal/central landscaped areas.
Consider alternative paving materials in the central area.
Redesign the northwest corner uni s to allow for better backing and access.
Maintain a maximum of eight unit townhome clusters
Plan for a highly intensified landsc ped plan, particularly at the perimeter, including
well-designed patio areas, fencing, and other sidelrear yard improvements.
Address outward appearance of buildings to maximize aesthetic impact on
neighboring property.
Planning Commission reviewed this item nd recommended approval (Alternative 1), with
modifIcations as listed above. They a so called for a public hearing on ordinance
amendments necessary to support higher townhome density. See attached minutes for
detai Is.
It is suggested that this item be pulled from the consent agenda if any Council Member docs
not agree with concept of modifying densi y minimums flJr townhomes.
B.
AL TERNATIVE ACTIONS
1.
Motion to recommend approval f the concept plan for a PUD as a townhome
project, including a recommendati n for the necessary ordinance amendments to
accommodate townhomes of the poposed density in the R-3 and CCD Districts.
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Motion to recommend denial ofth concept plan, based on a finding that thc density
exceeds the townhome density pe mitted in the ordinance.
City Council Agenda -07/10/00
3. Motion to table action on the cone pt plan, subject to additional information.
C. STAFF RECOMMENDATION
Under the current ordinance language, sta f can not recommcnd approval of the townhomc
project due to the proposed density. To all w the project to proceed as a townhome project,
it would need to be coupled with a propo. al for an amendment to the Zoning Ordinance
which allows townhomes to bc built at a (cnsity equal to multiple family dwellings in the
R-3 and CCD Districts. Alternative 1 abo e reflects this option. Thcre is rationale f()r such
a changc in that thc City would be able to egulate density by zoning district instead of by
unit type as is now the practice. There are ome issues raised by a new approach, however,
including loss of green space and potentia increased population and traffic. Thc primary
advantagcs of a change would be the Iikeli lood of increased ownership and larger units.
I fthe City chooses to proceed with the proj ct as a townhome development as recommended
by the Planning Commission, staff will ha e an amendment available for review at the next
Planning Commission meeting. A publ'c hearing should be called to consider that
amendment. Finally, the Development Sta e PUD plans should include attention to thc site
planning issues raised in this report, comments from Engineering and Public Works staft: as
well as full sitc developmcnt plans, f100r .Ians, grading, drainage, and utility plans, and
landscape plans. A Preliminary Plat shou d also be prepared to allow the subdivision of
individual unit lots.
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SUPPORTING DA'lA
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Planning Minutes - 7/5/00
REQUIREMENTS. ROBBIE SMITH SE ONDED THE MOTION. MOTION CARRIED
UNANIMOUSL Y.
ROD DRAGSTEN MOVED TO CONDU T A PUBLIC HEARING AT THE AUGUST
PLANNING COMMISSION MEETING N THE PROPOSED ORDINANCE
AMENDMENT ON SETBACK REQUI MENTS FOR RESIDENTIAL PROPERTY
PLA TTED PRIOR TO THE CURRENT 0 DINANCE TAKING EFFECT. RICHARD
CARLSON SECONDED THE MOTION. OTION CARRIED UNANIMOUSL Y.
There was further discussion on what optio s Mr. Cox could pursue regarding the addition to
his property.
ROD DRAGSTEN MOVED TO GRANT VARIANCE FOR THE PROPERTY AT
306 EAST 4TH STREET TO ALLOW CON TRUCTION OF AN ADDITION SO LONG
AS IT MAINTAINS THE SAME SIDE Y RD SETBACK AS THE EXISTING RESIDENCE
AND THERE IS NO FURTHER ENCROACHMENT INTO THE SETBACK. ROY
POPILEK SECONDED THE MOTION. OTION CARRIED UNANIMOUSL Y.
6.
Public Hearin - Consideration of an a ication for a variance allowin construction of a
deck within the 10' minimum setback sta dards. A bcant: Paul Kiefer.
It was determined after further review that a variance was not required and the request was
withdrawn.
7.
Public Hearino - Consideration of a re ue t for a conditional use ermit allowin a
lanned unit develo ment contain in a m lti-famil structure with more than 12
residential units. A Iicant: Silver Creek eal Estate Oevelo ment.
Steve Grittman provided the background inti rmation on this item. The proposed planned unit
development shows 25 town homes located on this site along Th Street East. The primary issue
with this development is the density. In the -3 District town homes are permitted and based
on the acreage of the parcel a maximum of 1 units could be placed on the site and still meet
the requirements of the ordinance. The ordin nce also restricts town homes to clusters of no
more than eight units and the proposal showe a cluster of ten units. If the proposed develop-
ment was laid out as a multiple family projec 25 units would be an appropriate density. Even
though town homes and multiple family units are permitted uses in an R-3 District the density
requirements for each are different. If the PIa ing Commission preferred the town home
concept. they may want to consider an ordina ce amendment that would set density
requirements by zoning district rather than by type of use.
Steve Grittman briefly reviewed the site plan
driveway widths, landscaping concerns, num
alternative paving materials for central area,
nd commented on number of areas including
er of units in a cluster, aesthetic considerations,
d issues such as storm water drainage and
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Planning Minutes - 7/5/00
utilities which would be further reviewed b the City Engineer and Public Works.
There was additional questions concerning t e density issue and what the positives and
negatives werc in regulating density by zoni g district rather than by use. Steve Grittman noted
that the language in the City's ordinance wa commonly used in the zoning ordinances
established in the 1970's and emphasized th t town home units tend to use up more green space
than multiple family units which was why t eir density was less than multiple family
dwellings. It was also pointed out that CUfre tly a single family dwelling is an allowable use in
an R-3 District and if there was going to be n amendment to the R-3 District it should be
considered whether the single family should continue as an allowable use in that district..
Chairman Frie then opened the public heari g. Bruce Haverly, representing Silver Creek Real
Estate spoke briet1y regarding the proposal. He explained that they had looked at various
layouts including multiple family but felt th t aesthetically the town homes better suited the
site. He indicated that the density of the unit may be reduced somewhat, possibly to 23 units
and the cluster of ten units would be broken p. It is proposed that the units will be constructed
so they could be sold off as individual units. Chairman Frie then closed the public hearing.
Roy Popilek stated that in addition to the ite s noted in the agenda from the site plan review. he
also had concerns about open areas/play are for the children. Bruce Haverly indicated that
reducing the number of units would open up some additional area for open space but stated that
because of topography. the northwest area 0 the parcel would be kept for drainage.
.
The Planning Commission also addressed p king facilities not only for the residents of
the units but also visitor parking. There was concern that while a good number of these units
are 2-3 bedroom units there are only single c r garages for many of the units (approximately
2/3 of the units had single car garages). The Planning Commission felt parking would probably
not be adequate and could have a negative 'mpact on the ability to sell the units. leffO' Neill
indicated that the City's zoning ordinance 0 ly specified garage unit requirements for single
family and two family dwellings.
Bruce Haverly indicated that the developme t will have a homeowner's association and that
each unit has individual sewer access which tends towards individual ownership rather
than rental. Dick Frie asked if the only entra ce to property was off Lauring and whether one
entrance was adequate as far as the Fire Dep rtment was concerned. Steve Grittman noted that
this would be looked at further when the pIa s were reviewed by Public Works. Dick Frie also
asked about signage for the development. M . Haverly indicated that there would be just a
single entrance sign. He also indicated that t e median price for the units would be about
$130,000.
.
There was additional discussion on the densi y of the development. Mr. Haverly was asked if
16 units, which would comply with the ordin nce provisions, was not economically feasible,
4
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Planning Minutes - 7/5/00
what number of units determined whether it ould be economically feasible. Mr. Haverly
indicated that above 20 units would be feasibl .
DICK FRIE MOVED TO RECOMMEND A PROV AL OF THE CONCEPT PLAN FOR A
PUD AS TOWN HOME PROJECT INCLU ING COMMENTS A-G AS NOTED IN THE
AGENDA ITEM AND SUBMITTAL AND EVIEW OF LANDSCAPING, UTILITY AND
DEVELOPMENT PLANS BY THE CITY E GINEER AND STAFF AND TO CALL FOR A
PUBLIC HEARING ON AN ORDINANCE MENDMENT TO ACCOMMODATE TOWN
HOMES OF THE PROPOSED DENSITY IN THE R~3 AND THE CCD DISTRICTS.
ROBBIE SMITH SECONDED THE MOTIO .
Richard Carlson noted that the recommendati n is based on the proposed density but that the
Planning Commission felt the density was too high. Steve Grittman suggested rather than
specifying a number of units, they could creat a green space requirement that everyone would
have to meet. He indicated that 35%-40% wa the requirement of communities that he was
familiar with.
RICHARD CARLSON MOVED TO AMEN THE MOTION TO INCLUDE A LOT
COVERAGE/GREEN SPACE REQUIREM T AT A PERCENTAGE TO BE
DETERMINED AS RECOMMENDED BY HE CITY PLANNER AND STAFF.
ROY POPILEK SECONDED THE AMEND ENT.
UPON VOTE BEING TAKEN THE ORIGIN L MOTION WAS PASSED
UNANIMOUSL Y. UPON VOTE BEING T KEN THE AMENDMENT TO THE
MOTION WAS PASSED UNANIMOUSL Y.
8.
- Consideration of rezoninO' from 1-1 to I-IA Construction 5 Outlot A.
of Monticello Plannin Co mission.
JefT 0' Neill provided the background inform tion indicating that previously when the Planning
Commission had considered rezoning land along Th Street from I-I to I-IA this parcel was
inadvertently omitted. It was now coming be re the Planning Commission so that this
omission could be corrected.
Chairman Frie opened the public hearing. Jos ph LaFromboise, 2326 Eastwood Circle, the
owner of the property was present and stated is belief that an I -1 A zoning would not be the
best use of the property. He felt that the appr priate zoning should be R-3 and asked that the
Planning Commission consider the R-3 desig ation for this parcel. No one else was present
to speak for or against the proposed rezoning. Chairman Frie then closed the public hearing.
Rod Dragsten concurred that the R-3 zoning d signation may be a more appropriate use for
the property.
5
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5b.
City Council Agenda - 07/10/00
Public Hcarin - Consideration ofre-z nin from 1-1 to 1-1A Construction 5 Outlot
A. A licant: Cit of Monticello Plann.n Commission. (.l0)
A. REFERENCE AND BACKGROl ND
This is essentially a housekeeping matter t at relates to a recent zoning district
amendment. As you might recall, some m nths ago the industrial land located along East
Jlh Street was changed from 1-1 to I-la. uring this process, a small portion of the land
to be designated as I-la (LaFromboise par el) was left out of the map information
supporting the Planning Commission and :ity Council decision making. City Council is
asked to review the matter and correct the ituation by recommending approval of the
proposed amendment to the zoning map. lease see the attached map data for detail.
At the public hearing held by the Planning ~ommission, Mr. LaFromboise expressed his
desire to have the property re-zoned to R-3. As you recall, not long ago this request
failed to get support from Planning Commi 'sion and City Council. Planning
Commission accepted his comments and v . ted to approve the re-zoni ng as noted under
Alternative 1 below.
B.
ALTERNATIVE ACTION
1. Motion to recommend approval oftl e rezoning of the Lafromboise parcel from
1-1 to I-la based on the finding that tIe proposed rezoning is consistent with the
comprehensive plan and consistent ith the character of the area.
2. Motion to deny approval of the rezo
C. STAFF RECOMMENDATION
As noted earlier, this is a housekeeping matt r that properly completes City action taken
some time ago. Staff recommends approval.
D. SUPPORTING DATA
Exhibit A - Map information
Exhibit B - Copy of City Council Agenda /tell from 4/12/99
Exhibit C - Ordinance Amendment
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Council Agenda - 4/12/99
5G. Consideration of rezonina Lots 5-13' HI ck 2' Hillside Terrace from 1-1 to I-IA.
(F.P.)
A. REFERENCE AND BACKGRO D:
City Council is asked to consider rezoning the land north of the freeway between the new
post office facility and the Construction 5 esidential area. The proposed rezoning would
change the designation from I-I (light indt strial) to I-I A. The I-I A designation allows
similar uses to the I-I district. However, uilding facade requirements are stricter by
requiring facade to partially consist of som material other than steel. Also, limited
wholesale retail uses are also allowed.
This request comes from the Planning Co ission and is due in part from the impending
development of an industrial development 'incubator" that provides some leased space
for both industrial and wholesale retail co mercial uses. Technically, without the I-lA
designation, the retail uses proposed would be non-conforming, The rezoning of the area
also applies to the FSI site but will not rend r the site non-conforming.
It would appear to make sense to move to t e stricter facade requirements due to the
residential and commercial development aIr ady existing in the area. The I-IA
regulations will also enable wholesale retail use as contemplated by the proposed
development.
Planning Commission recommended appro al of the rezoning at its April 6 meeting,
B. ALTERNATIVE ACTIONS:
1. Motion to approve the rezoning requ st from I-I to I-IA for the subject area based
on the finding that the proposed rezo ing is consistent with the comprehensive
plan, compatible with the adjoining 1 d uses, will not result in the depreciation of
adjoining land values, and there is a emonstrated need for the use.
2. Motion to deny approval of the rezon'ng request based on the finding that the
proposal is not consistent with the co prehensive plan, not compatible with the
adjoining land uses, will result in the epreciation of adjoining land values, and
there is no demonstrated need for the se.
C. STAFF RECOMMENDATION:
The Planning Commission and City staff rec mmend alternative # 1.
D.
SUPPORTING DATA:
Exhibit A - Site map.
Exhibit B - Copy of ordinance amendment
9
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EXhi'oct- b
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ORDINANCE A ENDMENT NO. 348
onticello
ty, Minnesota
THE CITY COUNCIL OF THE CITY OF MO TICELLO, MINNESOTA HEREBY
ORDAINS AS FOLLOWS:
The Official Zoning Map of the City of Monticello is hereby amended by rezoning the following
described property from I-I (Light Industrial Oistri t) to I-] A (Limited Light Industrial District):
Outlot A, Construction 5 Addition
This ordinance shall become effective from and aft r its passage and publication.
Adopted this 10th day of July. 2000.
ATTEST:
Rick Wolfstel1er, City Administrator
Eih .bit
Roger Belsaas. Mayor
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Council Agenda - 7/10/00
7.
Considerations of ro osals for sale of 1 6 5 000 G.O. 1m rovement Bonds
Series 2000B (R W)
A. REFERENCE AND BACKGROUND:
Ehlers and Associates will be recei ving bids l' r the sale of $1 ,645,000 in general obligation
bonds that will be used to linance the Chelsea Road West Project 98-25C.
Assuming that the interest rates are acceptable, the City Council will be asked to adopt a
resolution award the sale of the general obliga ion bonds to the low bidder. The bids will be
tabulated and presented to the Council on Mo day night by Ehlers and Associates.
B. ALTERNATIVE ACTIONS:
1. Adopt a resolution awarding the sale 01'$1,645,000 G.O. Improvement Bonds,
Series 20008 as recommended by the -:ity's financial consultant, Ehlers and
Associates.
2. Do not award the sale of the bonds.
c.
STAFF RECOMMENDATION:
Unless for S(Hne reason the interest rates are c mpletely out of line, the funding is necessary
to reimburse the City for costs that will be incurred by construction of Project 98-25C,
Chelsea Road West and therefore the bond sa e should proceed with the low bidder.
D. SUPPORTING DATA:
Resolution
.
BID TA ULATION
$1,645,000 General Obligation I mprovement Bonds, Series 2000B
City of Mantic ella, Minnesota
SALE: J Iy 10, 2000
AWARD: DAIN RAUSCHER INC.
RATING: Moody's Investors Service "A3"
881: 5.71 %
NAME OF BIDDER
NET TRUE
RATE YEAR PRICE INTEREST INTEREST
COST RATE
4.50% 2002 $1,631,413.00 $455,897.00 4.9990%
4.60% 2003
4.65% 2004
4.70% 2005
4.75% 2006
4.80% ?007
4.85% '008
4.90% 2009
4.95% 7010
5.00% 7011
4.60% 7002 $1,622,134.50 $474,333.00 5.2223%
4.70% 7003
4.75% 004
4.80% 005
4.85% 006
4.90% 007
4.95% 008
5.00% 009
5.05% 010
5.10% 011
5.00% 002.2008 $1,632,423.10 $476,106.90 5.2235%
5.10% 009~201 0
5.20% 011
DAIN RAUSCHER INC.
Minneapolis, Minnesota
.
U.S. BANCORP PIPER JAFFRAY
Minneapolis, Minnesota
WELLS FARGO
Minneapolis, Minnesota
CRONIN & CO., INC.
Minneapolis, Minnesota
SALOMON SMITH BARNEY
Chicago, Illinois
MORGAN STANLEY DEAN WIITER
Chicago, Illinois
PAINEWEBBER, INC.
Chicago, Illinois
CISC WORLD MARKETS
New York, New York
.
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EHLERS
LEADERS IN PUBLIC FINANCE
3060 Centre Pointe Drive, Roseville, MN 55113-1105
651.697.8500 fax 651.697.8555 www.ehlers-inc.com
Offices in Roseville, MN, Brookfield, WI and Naperville, It
& ASSOCIATES INC
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$1,645,000 General Obligation Improvement Bonds, Series 2000B
City of Monticello, Minnesota
P~.
NAME OF BIDDER
RATE YEAR
PRICE
NET
INTEREST
COST
TRUE
INTEREST
RATE
UNITED BAKERS' BANK 4.75% 2002 $1,628,550.00 $477,243.75 5.2400%
Bloomington, Minnesota 4.80% 2003
FIRST MINNESOTA BANK, NATIONAL 4.85% 2004
ASSOCIATION 4.90% 2005
Glencoe, Minnesota 4.95% 2006
5.00% 2007
5.05% 2008
5.10% 2009
5.15% 2010
5.20% 2011
JOHN G. KINNARD & COMPANY 4.70% 2002 $1,628,550.00 $477,836.25 5.2455%
Minneapolis, Minnesota 4.80% 2003
MILLER, JOHNSON & KUEHN, INC. 4.85% 2004
Minneapolis, Minnesota 4.90% 2005
BERNARDI SECURITIES, INC. 4.95% 2006
Chicago, Illinois 5.00% 2007
5.05% 2008 .
5.10% 2009
5.15% 2010
5.25% 2011
.
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Extract of Min tes of Meeting
of the City Coun i1 of the City of
Monticello, Wright ounty, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Monticello, Minnesota, was duly held in the ity Hall in said City on Monday, July 10, 2000,
commencing at 7:00 o'clock P.M.
The following members were present:
and the following were absent:
***
***
***
The Mayor announced that the next orde of business was consideration of the proposals
which had been received for the purchase f the City's $1,645,000 General Obligation
Improvement Bonds, Series 2000B.
The City Administrator presented a tabul tion of the proposals that had been received in
the manner specified in the Terms of Proposal fo the Bonds. The proposals were as set forth in
Exhibit A attached.
After due consideration of the prop sals, Member
then
introduced the following resolution, the readin of which was dispensed with by unanimous
consent, and moved its adoption:
SJB-182318vl
MNl90-87
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A RESOLUTION AWARD G THE SALE OF $1,645,000
GENERAL OBLIGATION IMPRO EMENT BONDS, SERIES 2000B
FIXING THEIR FORM SPECIFICATIONS;
DIRECTING THEIR EXEC ION AND DELIVERY;
AND PROVIDING FO THEIR PAYMENT
BE IT RESOLVED By the City Coun it of the City of Monticello, Wright County,
Minnesota (City) as follows:
Section 1.
Sale of Bonds.
1.01. It is hereby determined that:
(a) the following assessable p blic improvements (the Improvements) have
been made, duly ordered or contracts let ~ r the construction thereof, by the City pursuant
to the provisions of Minnesota Statutes, C apter 429 (Act);
Proiect Designation & Description:
Project 98-25c Costs
Discount Allowance
Capitalized Interest
Finance Related Expenses
City Funds
Total Uses
$1,791,991
Total Proiect Cost
23,000
42,360
22,400
(234.751)
$1,645,000
(b) it is necessary and expedie t to the sound financial management of the
affairs of the City to issue $1,645,000 Ge eral Obligation Improvement Bonds, Series
2000B (Bonds) pursuant to the Act to provi e financing for the Improvements.
1.02. The proposal of (Purchaser) to
purchase $1,645,000 General Obligation Improve ent Bonds Series 2000B (Bonds) of the City
described in the Terms of Proposal thereof is he~ by found and determined to be a reasonable
offer and is hereby accepted, the proposal be ng to purchase the Bonds at a price of
$ plus accrued interest to date of deli ery, for Bonds bearing interest as follows:
SJB-182318vl
MNI90-87
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. Year of Interest Year of Interest
Maturitv Rate Maturitv . Rate
2002 2007
2003 2008
2004 2009
2005 2010
2006 2011
True interest cost:
1.03. The sum of $ being e amount proposed by the Purchaser in excess
of $1,622,000 will be credited to the Debt ervice Fund hereinafter created. The City
Administrator is directed to retain the good faith heck of the Purchaser, pending completion of
the sale of the Bonds, and to return the goo faith checks of the unsuccessful proposers
forthwith. The Mayor and City Administrator are directed to execute a contract with the
Purchaser on behalf of the City.
.
1.04. The City will forthwith issue and ell the Bonds pursuant to Minnesota Statutes,
Chapter 429 (Act) in the total principal amount 0 $1,645,000, originally dated August 1, 2000,
in the denomination of $5,000 each or any integr multiple thereof, numbered No. R-1, upward,
bearing interest as above set forth, and maturing s rially on February 1 in the years and amounts
as follows:
Year Amount Year Amount
2002 $225,000 2007 $145,000
2003 210,000 2008 145,000
2004 195,000 2009 145,000
2005 145,000 2010 145,000
2006 145,000 2011 145,000
1.05. Optional Redem{>tion. The City m y elect on August 1, 2007, and on any day
thereafter to prepay Bonds due on or after Febru 1,2008. Redemption may be in whole or in
part and if in part, at the option of the City and in s ch manner as the City will determine. If less
than all Bonds of a maturity are called for redem tion, the City will notify DTC (as defined in
Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine
by lot the amount of each participant's interest 'n such maturity to be redeemed and each
participant will then select by lot the beneficial ownership interests in such maturity to be
redeemed. Prepayments will be at a price of par pI s accrued interest.
1.06. Term Bonds. To be completed if Te Bonds are requested by the Purchaser.
.
SJB-182318vl
MN190-87
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Section 2.
Rel!'istration and Pavrnent.
2.01. Rel!'istered Form. The Bonds wil be issued only in fully registered form. The
interest thereon and, upon surrender of each Bo d, the principal amount thereof, is payable by
check or draft issued by the Registrar described h rein.
2.02. Dates: Interest Pavrnent Dates. E ch Bond will be dated as of the last interest
payment date preceding the date of authenticatio to which interest on the Bond has been paid
or made available for payment, unless (i) the da of authentication is an interest payment date
to which interest has been paid or made availabl for payment, in which case the Bond will be
dated as of the date of authentication, or (ii) the d te of authentication is prior to the first interest
payment date, in which case the Bond will be dat d as of the date of original issue. The interest
on the Bonds is payable on August 1 and Feb ary 1 of each year, commencing February I,
2001, to the registered owners of record thereof of the close of business on the fifteenth day
of the immediately preceding month, whether or ot that day is a business day.
2.03. Rel!'istration. The City will appoint a bond registrar, transfer agent, authenticating
agent and paying agent (Registrar). The effect 0 registration and the rights and duties of the
City and the Registrar with respect thereto are as f llows:
(a) Rel!'ister. The Registrar mu t keep at its principal corporate trust office a
bond register in which the Registrar provi es for the registration of ownership of Bonds
and the registration of transfers and ex hanges of Bonds entitled to be registered,
transferred or exchanged.
(b) Transfer of Bonds. Upon s rrender for transfer of a Bond duly endorsed
by the registered owner thereof or accom anied by a written instrument of transfer, in
form satisfactory to the Registrar, duly exe uted by the registered owner thereof or by an
attorney duly authorized by the regist red owner in writing, the Registrar will
authenticate and deliver, in the name of th designated transferee or transferees, one or
more new Bonds of a like aggregate princi al amount and maturity, as requested by the
transferor. The Registrar may, however, c ose the books for registration of any transfer
after the fIfteenth day of the month preced ng each interest payment date and until that
interest payment date.
(c) Exchanl!'e of Bonds. When onds are surrendered by the registered owner
for exchange the Registrar will authenticate and deliver one or more new Bonds of a like
aggregate principal amount and maturity requested by the registered owner or the
owner's attorney in writing.
(d) Cancellation. Bonds surre dered upon transfer or exchange will be
promptly cancelled by the Registrar and the after disposed of as directed by the City.
(e) 1m ro er or Unauthorized ansfer. When a Bond is presented to the
Registrar for transfer, the Registrar may ref se to transfer the Bond until the Registrar is
satisfied that the endorsement on the Bond r separate instrument of transfer is valid and
genuine and that the requested transfer is Ie ally authorized. The Registrar will incur no
SJB-182318vl
MN190-87
1
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liability for the refusal, in good faith, to alee transfers which it, in its judgment, deems
improper or unauthorized.
(f) Persons Deemed Owners. e City and the Registrar may treat the person
in whose name a Bond is registered in e bond register as the absolute owner of the
Bond, whether the Bond is overdue or not for the purpose of receiving payment of, or on
account of, the principal of and interest on the Bond and for all other purposes and
payments so made to registered owner r upon the owner's order will be valid and
effectual to satisfy and discharge the liab' ity upon the Bond to the extent of the sum or
sums so paid.
(g) Taxes. Fees and Charges. The Registrar may impose a charge upon the
owner thereof for a transfer or exchange f Bonds, sufficient to reimburse the Registrar
for any tax, fee or other governmental c arge required to be paid with respect to the
transfer or exchange.
(h) Mutilated Lost Stolen or estro ed Bonds. If a Bond becomes mutilated
or is destroyed, stolen or lost, the Regis will deliver a new Bond of like amount,
number, maturity date and tenor in exch ge and substitution for and upon cancellation
of the mutilated Bond or in lieu of and in s bstitution for a Bond destroyed, stolen or lost,
upon the payment of the reasonable expen es and charges of the Registrar in connection
therewith; and, in the case of a Bond d stroyed, stolen or lost, upon filing with the
Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of
the ownership thereof, and upon furnishi g to the Registrar of an appropriate bond or
indemnity in form, substance and amount satisfactory to it and as provided by law, in
which both the City and the Registrar mus be named as obligees. Bonds so surrendered
to the Registrar will be cancelled by the Re istrar and evidence of such cancellation must
be given to the City. If the mutilated, des yed, stolen or lost Bond has already matured
or been called for redemption in accordan e with its terms it is not necessary to issue a
new Bond prior to payment.
(i) Redemption. In the event y of the Bonds are called for redemption,
notice thereof identifying the Bonds to be redeemed will be given by the Registrar by
mailing a copy of the redemption notice by first class mail (postage prepaid) to the
registered owner of each Bond to be redee ed at the address shown on the registration
books kept by the Registrar and by publis ing the notice if required by law. Failure to
give notice by publication or by mail to an registered owner, or any defect therein, will
not affect the validity of the proceedings ~ r the redemption of Bonds. Bonds so called
for redemption will cease to bear interest ter the specified redemption date, provided
that the funds for the redemption are on dep sit with the place of payment at that time.
2.04. A ointment of Initial The City appoints
, Minnesota, as the initial
Registrar. The Mayor and the City Administrat r are authorized to execute and deliver, on
behalf of the City, a contract with the Registrar. pon merger or consolidation of the Registrar
with another corporation, if the resulting corporati n is a bank or trust company authorized by
law to conduct such business, the resulting co oration is authorized to act as sl,iccessor
SlB~182318vl
MNl90-87
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Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the
services performed. The City reserves the right to remove the Registrar upon 30 days' notice and
upon the appointment of a successor Registrar,' which event the predecessor Registrar must
deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond
register to the successor Registrar. On or befo each principal or interest due date, without
further order of this Council, the City Adminis ator must transmit to the Registrar monies
sufficient for the payment of all principal and inte st then due.
2.05. Execution Authentication and Del ve . The Bonds will be prepared under the
direction of the City Administrator and executed on behalf of the City by the signatures of the
Mayor and the City Administrator, provided that those signatures may be printed, engraved or
lithographed facsimiles of the originals. If an of lcer whose signature or a facsimile of whose
signature appears on the Bonds ceases to be suc officer before the delivery of a Bond, that
signature or facsimile will nevertheless be valid an sufficient for all purposes, the same as if the
officer had remained in office until delivery. No ithstanding such execution, a Bond will not
be valid or obligatory for any purpose or entitled t any security or benefit under this Resolution
unless and until a certificate of authentication on e Bond has been duly executed by the manual
signature of an authorized representative of the Registrar. Certificates of authentication on
different Bonds need not be signed by the sam representative. The executed certificate of
authentication on a Bond is conclusive evidence that it has been authenticated and delivered
under this Resolution. When the Bonds have bee so prepared, executed and authenticated, the
City Administrator will deliver the same to the Pu chaser upon payment of the purchase price in
accordance with the contract of sale heretofore ade and executed, and the Purchaser is not
obligated to see to the application of the purchase p . ceo
2.06. Temporarv Bonds. The City may elect to deliver in lieu of printed definitive
Bonds one or more typewritten temporary Bonds i substantially the form set forth in Section 3
with such changes as may be necessary to reflect ore than one maturity in a single temporary
bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be
exchanged therefor and cancelled.
Section 3.
Form of Bond.
3.01. The Bonds will be printed or typew 'tten in substantially the following form:
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No. R-_
$
GENERAL OBLIGATION IMPRO EMENT BOND, SERIES 2000B
Rate
Maturitv
Registered Owner: Cede & Co.
Date of
Oril!inal Issue
CUSIP
August 1, 2000
The City of Monticello, Minnesota, a duly organized and existing municipal corporation
in Wright County, Minnesota (City), acknowledg s itself to be indebted and for value received
hereby promises to pay to the Registered Own r specified above or registered assigns, the
principal sum of $ on the maturity da e specified above, with interest thereon from
the date hereof at the annual rate specified above, ayable August 1 and February 1 in each year,
commencing February 1,2001, to the person in w ose name this Bond is registered at the close
of business on the fifteenth day (whether or not business day) of the immediately preceding
month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are
payable in lawful money of the United St tes of America by check or draft by
, innesota, as Bond Registrar, Paying Agent,
Transfer Agent and Authenticating Agent, or its designated successor under the Resolution
described herein. For the prompt and full payme t of such principal and interest as the same
respectively become due, the full faith and credit d taxing powers of the City have been and
are hereby irrevocably pledged.
The City may elect on August 1,2007, and n any day thereafter to prepay Bonds due on
or after February 1,2008. Redemption may be in hole or in part and if in part, at the option of
the City and in such manner as the City will dete ine. If less than all Bonds of a maturity are
called for redemption, the City will notify Deposi ory Trust Company (DTC) of the particular
amount of such maturity to be prepaid. DTC will determine by lot the amount of each
participant's interest in such maturity to be redeem d and each participant will then select by lot
the beneficial ownership interests in such maturit to be redeemed. Prepayments will be at a
price of par plus accrued interest.
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The City Council has designated the issu of Bonds of which this Bond forms a part as
"qualified tax exempt obligations" within the eaning of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended (the Code) elating to disallowance of interest expense for
financial institutions and within the $10 million it allowed by the Code for the calendar year
of issue.
This Bond is one of an issue in the aggre ate principal amount of $1,645,000 all of like
original issue date and tenor, except as to num er, maturity date, redemption privilege, and
interest rate, all issued pursuant to a resolution ad pted by the City Council on July 10, 2000 (the
Resolution), for the purpose of providing money to defray the expenses incurred and to be
incurred in making local improvements, pursuant 0 and in full conformity with the Constitution
and laws of the State of Minnesota, including Mi esota Statutes, Chapter 429, and the principal
hereof and interest hereon are payable from s ecial assessments against property specially
benefited by local improvements and from ad valo em taxes for the City's share of the cost of the
improvements, as set forth in the Resolution to hich reference is made for a full statement of
rights and powers thereby conferred. The full fai and credit of the City are irrevocably pledged
for payment of this Bond and the City Council h obligated itself to levy additional ad valorem
taxes on all taxable property in the City in the eve t of any deficiency in special assessments and
taxes pledged, which additional taxes may be levi d without limitation as to rate or amount. The
Bonds of this series are issued only as fully regist red Bonds in denominations of $5,000 or any
integral multiple thereof of single maturities.
As provided in the Resolution and subjec to certain limitations set forth therein, this
Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by
the registered owner hereof in person or by the ow erts attorney duly authorized in writing, upon
surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar,
duly executed by the registered owner or the own r's attorney; and may also be surrendered in
exchange for Bonds of other authorized denominati ns. Upon such transfer or exchange the City
will cause a new Bond or Bonds to be issued in the ame of the transferee or registered owner, of
the same aggregate principal amount, bearing inter st at the same rate and maturing on the same
date, subject to reimbursement for any tax, fee or overnmental charge required to be paid with
respect to such transfer or exchange.
The City and the Bond Registrar may deem d treat the person in whose name this Bond
is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose
of receiving payment and for all other purposes, an neither the City nor the Bond Registrar will
be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, C VENANTED AND AGREED that all acts,
conditions and things required by the Constitutio and laws of the State of Minnesota, to be
done, to exist, to happen and to be performed preli inary to and in the issuance of this Bond in
order to make it a valid and binding general obliga . on of the City in accordance with its terms,
have been done, do exist, have happened and have been performed as so required, and that the
issuance of this Bond does not cause the indebtedne s of the City to exceed any constitutional or
statutory limitation of indebtedness.
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This Bond is not valid or obligatory for an purpose or entitled to any security or benefit
under the Resolution until the Certificate of Au entication hereon has been executed by the
Bond Registrar by manual signature of one of its a thorized representatives.
IN WITNESS WHEREOF, the City of onticello, Wright County, Minnesota, by its
City Council, has caused this Bond to be execu ed on its behalf by the facsimile or manual
signatures of the Mayor and City Administrator d has caused this Bond to be dated as of the
date set forth below.
Dated:
CITY OF MONTICELLO, MINNESOTA
(Facsimile )
City Administrator
(Facsimile )
Mayor
CERTIFICATE OF A THENTICATION
This is one of the Bonds delivered pursuan to the Resolution mentioned within.
By
Authorized Representative
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The following abbreviations, when used in the inscription on the face of this Bond, will
be constructed as though they were written out in full according to applicable laws or
regulations:
TEN COM -- as tenants
in common
UNIF G
TEN ENT -- as tenants
by entireties
IT TEN --
as joint tenants with
right of survivorship and
not as tenants in common
MIN ACT Custodian
(Cust) (Minor)
under Unifonn Gifts or
Transfers to Minors
Act. . . . .
(State)
Additional abbreviations may also be used though not in the above list.
ASSIG
For value received, the undersigned
does hereby irrevocably constitute and appoin
transfer the said Bond on the books kept for regis
substitution in the premises.
Dated:
Notice:
hereby sells, assigns and transfers unto
e within Bond and all rights thereunder, and
attorney to
ation of the within Bond, with full power of
The assignor's signature to is assignment must correspond with the name
as it appears upon the face 0 the within Bond in every particular, without
alteration or any change wha ever.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a mandal institution that is a member of the
Securities Transfer Agent Medallion Program (" TAMP"), the Stock Exchange Medallion
Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP")
or other such "signature guarantee program" as ma be detennined by the Registrar in addition
to, or in substitution for, STAMP, SEMP or MSP, 1 in accordance with the Securities Exchange
Act of 1934, as amended.
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The Bond Registrar will not effect ansfer of this Bond unless the infonnation
concerning the assignee requested below is prov'ded.
Name and Address:
(Include in onnation for all joint owners if this
Bond is hell by jOint account.)
Please insert social security or other
identifying number of assignee
PROVISIONS AS TC REGISTRATION
The ownership of the principal of and inte est on the within Bond has been registered on
the books of the Registrar in the name of the person last noted below.
Date of Registration
Signature of
Officer of Registrar
ReQ'istered 0 wner
Cede & Co.
Federal ill # 3-2555119
3.02. The City Administrator is directed to obtain a copy of the proposed approving
legal opinion of Kennedy & Graven, Chartere(, Minneapolis, Minnesota, which is to be
complete except as to dating thereof and to cause tt e opinion to be printed on or accompany each
Bond.
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Section 4.
Pa
4.01. (a) The Bonds are payable fro the Improvement Bonds, Series 2000B Debt
Service Fund (Debt Service Fund) hereby creat d, and the proceeds of general taxes hereinafter
levied (Taxes), and special assessments (A sessments) levied or to be levied for the
Improvements financed by the Bonds are hereby ledged to the Debt Service Fund. If a payment
of principal or interest on the Bonds becomes du when there is not sufficient money in the Debt
Service Fund to pay the same, the City Adminis ator is directed to pay such principal or interest
from the general fund of the City, and the gener fund will be reimbursed for the advances out
of the proceeds of Assessments and Taxes whe collected. There is appropriated to the Debt
Service Fund (i) capitalized interest financed fro Bond proceeds, if any, (ii) any amount over
the minimum purchase price paid by the Purch er, and (iii) the accrued interest paid by the
Purchaser upon closing and delivery of the Bonds
.
(b) The proceeds of the Bonds, les the appropriations made in paragraph (a),
together with any other funds appropriated for e Improvements and Assessments and Taxes
collected during the construction of the Imp ovements will be deposited in a separate
construction fund (which may contain separate ac ounts for each Improvement) to be used solely
to defray expenses of the Improvements and the ayment of principal and interest on the Bonds
prior to the completion and payment of all costs 0 the Improvement. Any balance remaining in
the construction fund after completion of the Impr vements may be used to pay the cost in whole
or in part of any other improvement instituted nder the Act. When the Improvements are
completed and the cost thereof paid, the constru tion account is to be closed and subsequent
collections of Assessments and Taxes for the provements are to be deposited in the Debt
Service Fund.
(a) The City has caused or will ause the Assessments for the Improvements
to be promptly levied so that the first inst lment will be collectible not later than 2001
and will take all steps necessary to ass re prompt collection, and the levy of the
Assessments is hereby authorized. The C ty Council will cause to be taken with due
diligence all further actions that are requir: d for the construction of each Improvement
financed wholly or partly from the proceeds f the Bonds, and will take all further actions
necessary for the final and valid levy of th Assessments and the appropriation of any
other funds needed to pay the Bonds and int rest thereon when due.
4.02. It is hereby determined that the 1m rovements will directly and indirectly benefit
abutting property, and the City hereby covenants w.th the holders from time to time of the Bonds
as follows:
(b) In the event of any current 0 anticipated deficiency in Assessments and
Taxes, the City Council will levy additional d valorem taxes in the amount of the current
or anticipated deficiency.
~
...
(c) The City will keep complete and accurate books and records showing:
receipts and disbursements in connection wi the Improvements, Assessments and Taxes
levied therefor and other funds appropriate for their payment, collections thereof and
disbursements therefrom, monies on hand an , the balance of unpaid Assessments:
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(d) The City will cause its b oks and records to be audited at least annually
and will furnish copies of such audit rep rts to any interested person upon request.
4.03. It is determined that at least 20% f the cost of the Improvements will be specially
assessed against benefited properties. For the p rpose of paying the principal of and interest on
the Bonds. there is levied a direct annual irrep alable ad valorem tax (Taxes) upon all of the
taxable property in the City. which will be spre d upon the tax rolls and collected with and as
part of other general taxes of the City. The taxes will be credited to the Debt Service Fund above
provided and will be in the years and amounts as follows (year stated being year of levy for
collection the following year):
Year Levy
(See Attach ent A)
.
4.04. It is hereby determined that the stimated collections of Assessments and the
foregoing Taxes will produce at least five percen in excess of the amount needed to meet when
due the principal and interest payments on th Bonds. The tax levy herein provided is
irrepealable until all of the Bonds are paid. provid d that at the time the City makes its annual tax
levies the City Administrator may certify to the ounty Auditor of Wright County the amount
available in the Debt Service Fund to pay princip and interest due during the ensuing year. and
the County Auditor will thereupon reduce the levy collectible during such year by the amount so
certified.
4.05. The City Administrator is authoriz d and directed to file a certified copy of this
resolution with the County Auditor of Wright Co nty and to obtain the certificate required by
Minnesota Statutes, Section 475.63.
Section 5.
Authentication of Transcript.
5.01. The officers of the City are authori ed and directed to prepare and furnish to the
Purchaser and to the attorneys approving the Bond . certified copies of proceedings and records
of the City relating to the Bonds and to the financi condition and affairs of the City, and such
other certificates. affidavits and transcripts as ma be required to show the facts within their
knowledge or as shown by the books and recor s in their custody and under their control.
relating to the validity and marketability of the onds. and such instruments, including any
heretofore furnished, may be deemed representation of the City as to the facts stated therein.
5.02. The Mayor and City Administrator a e authorized and directed to certify that they
have examined the Official Statement prepared an circulated in connection with the issuance
and sale of the Bonds and that to the best of their owledge and belief the Official Statement is
a complete and accurate representation of the facts and representations made therein as of the
date of the Official Statement.
~
... 5.03. The City authorizes the Purchaser 0 forward the amount of Bond proceeds
allocable to the payment of issuance expenses (0 er than amounts payable to Kennedy &
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Graven, Chartered as Bond Counsel) to Re ource Bank & Trust Company, Minneapolis,
Minnesota on the closing date for further distri uti on as directed by the City's financial adviser,
Ehlers & Associates, Inc.
Section 6.
Tax Covenant.
6.01. The City covenants and agrees ith the holders from time to time of the Bonds
that it will not take or permit to be taken by an of its officers, employees or agents any action
which would cause the interest on the Bonds t become subject to taxation under the Internal
Revenue Code of 1986, as amended (the Cod ), and the Treasury Regulations promulgated
thereunder, in effect at the time of such actio s, and that it will take or cause its officers,
employees or agents to take, all affirmative ac on within its power that may be necessary to
ensure that such interest will not become subj ct to taxation under the Code and applicable
Treasury Regulations, as presently existing or as hereafter amended and made applicable to the
Bonds.
6.02. (a) The City will comply with req irements necessary under the Code to establish
and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of
the Code, including without limitation requ'rements relating to temporary periods for
investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and
the rebate of excess investment earnings to the nited States if the Bonds (together with other
obligations reasonably expected to be issued in calendar year 2000) exceed the small-issuer
exception amount of $5,000,000.
(b) For purposes of qualifying for the mall-issuer exception to the federal arbitrage
rebate requirements, the City finds, determines an declares that the aggregate face amount of all
tax-exempt bonds (other than private activity bo ds) issued by the City (and all subordinate
entities of the City) during the calendar year in hich the Bonds are issued is not reasonably
expected to exceed $5,000,000, within the meanin of Section 148(f)(4)(C) of the Code.
6.03. The City further covenants not to se the proceeds of the Bonds or to cause or
permit them or any of them to be used, in such a manner as to cause the Bonds to be "private
activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code.
6.04. In order to qualify the Bonds as " ualified tax-exempt obligations" within the
meaning of Section 265(b)(3) of the Code, the Cit makes the following factual statements and
representations:
Code;
(a) the Bonds are not "private ac ivity bonds" as defined in Section 141 of the
(b) the City hereby designat s the Bonds as "qualified tax-exempt
obligations" for purposes of Section 265(b)( ) of the Code;
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(c) the reasonably anticipated amount of tax-exempt obligations (other than
any private activity bonds that are not qu ified 501 (c)(3) bonds) which will be issued by
the City (and all subordinate entities of the City) during calendar year 2000 will not
exceed $10,000,000; and
(d) not more than $10,000,0 0 of obligations issued by the City during
calendar year 2000 have been designated or purposes of Section 265(b )(3) of the Code.
6.05. The City will use its best en rts to comply with any federal procedural
requirements which may apply in order to effectu te the designations made by this section.
Section 7.
7.01. The Bonds will be initially issued in the form of a separate single typewritten or
printed fully registered Bond for each of the ma urities set forth in Section 1.03 hereof. Upon
initial issuance, the ownership of each Bond will be registered in the registration books kept by
the Bond Registrar in the name of Cede & Co., nominee for The Depository Trust Company,
New York. New York, and its successors and ass gns (DTC). Except as provided in this section,
all of the outstanding Bonds will be registere in the registration books kept by the Bond
Registrar in the name of Cede & Co., as nominee f DTC.
7.02. With respect to Bonds registere in the registration books kept by the Bond
Registrar in the name of Cede & Co., as nomine of DTC, the City, the Bond Registrar and the
Paying Agent will have no responsibility or obl"gation to any broker dealers, banks and other
financial institutions from time to time for whi h DTC holds Bonds as securities depository
(Participants) or to any other person on behalf f which a Participant holds an interest in the
Bonds, including but not limited to any respo sibility or obligation with respect to (i) the
accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership
interest in the Bonds, (ii) the delivery to any articipant or any other person (other than a
registered owner of Bonds, as shown by the regi tration books kept by the Bond Registrar,) of
any notice with respect to the Bonds, including y notice of redemption, or (iii) the payment to
any Participant or any other person. other than a gistered owner of Bonds, of any amount with
respect to principal of. premium, if any, or intere t on the Bonds. The City, the Bond Registrar
and the Paying Agent may treat and consider the erson in whose name each Bond is registered
in the registration books kept by the Bond Regi trar as the holder and absolute owner of such
Bond for the purpose of payment of principal, pr mium and interest with respect to such Bond,
for the purpose of registering transfers with resp ct to such Bonds, and for all other purposes.
The Paying Agent will pay all principal of, premi m, if any. and interest on the Bonds only to or
on the order of the respective registered owners, s shown in the registration books kept by the
Bond Registrar, and all such payments will be v id and effectual to fully satisfy and discharge
the City's obligations with respect to payment of rincipal of, premium, if any, or interest on the
Bonds to the extent of the sum or sums so paid. No person other than a registered owner of
Bonds, as shown in the registration books kept b the Bond Registrar, will receive a certificated
Bond evidencing the obligation of this resolu ion. Upon delivery by DTC to the City
Administrator of a written notice to the effect t at DTC has determined to substitute a new
nominee in place of Cede & Co., the words "Ce e & Co.... will refer to such new nominee of
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DTC; and upon receipt of such a notice, the Ci Administrator will promptly deliver a copy of
the same to the Bond Registrar and Paying Agen .
7.03. Representation Letter. The City as heretofore executed and delivered to DTC a
Blanket Issuer Letter of Representations (Repre entation Letter) which shall govern payment of
principal of, premium, if any, and interest on Bonds and notices with respect to the Bonds.
Any Paying Agent or Bond Registrar subsequ ntly appointed by the City with respect to the
Bonds will agree to take all action necess for all representations of the City in the
Representation letter with respect to the Bond egistrar and Paying Agent, respectively, to be
complied with at all times.
7.04. Transfers Outside Book-Ent S tern. In the event the City, by resolution of the
City Council, determines that it is in the best in rests of the persons having beneficial interests
in the Bonds that they be able to obtain Bond c rtificates, the City will notify DTC, whereupon
DTC will notify the Participants, of the availabi ity through DTC of Bond certificates. In such
event the City will issue, transfer and exchange ond certificates as requested by DTC and any
other registered owners in accordance with e provisions of this Resolution. DTC may
determine to discontinue providing its services ith respect to the Bonds at any time by giving
notice to the City and discharging its responsibi ities with respect thereto under applicable law.
In such event, if no successor securities deposito is appointed, the City will issue and the Bond
Registrar will authenticate Bond certificates in ac ordance with this resolution and the provisions
hereof will apply to the transfer, exchange and m thod of payment thereof.
. 7.05. Payments to Cede & Co. Notwi standing any other provision of this Resolution
to the contrary, so long as a Bond is registered i the name of Cede & Co., as nominee of DTC,
payments with respect to principal of, premium, i any, and interest on the Bond and notices with
respect to the Bond will be made and given, r spectively in the manner provided in DTC's
Operational Arrangements, as set forth in the Rep esentation Letter.
Section 8. Continuing Disclosure.
8.01. The City hereby covenants and agr es that it will comply with and carry out all of
the provisions of the Continuing Disclosure Certi icate. Notwithstanding any other provision of
this Resolution, failure of the City to comply wi the Continuing Disclosure Certificate is not to
be considered an event of default with respect to e Bonds; however, any Bondholder may take
such actions as may be necessary and approp . ate, including seeking mandate or specific
performance by court order, to cause the City to c mply with its obligations under this section.
8.02. "Continuing Disclosure Certificat " means that certain Continuing Disclosure
Certificate executed by the Mayor and City Ad inistrator and dated the date of issuance and
delivery of the Bonds, as originally executed an as it may be amended from time to time in
accordance with the terms thereof.
.
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The motion for the adoption of the foreg ing resolution was duly seconded by Member
, and upon vote be ng taken thereon, the following voted in favor
thereof:
and the following voted against the same:
whereupon said resolution was declared duly pass d and adopted.
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STAlE OF MINNESOTA )
)
COUNTY OF WRIGHT ) SS.
)
CITY OF MONTICELLO )
I, the undersigned, being the duly qualifie and acting City Administrator of the City of
Monticello, Wright County, Minnesota, do here y certify that I have carefully compared the
attached and foregoing extract of minutes of a re ular meeting of the City Council of the City
held on July 10, 2000 with the original minutes 0 file in my office and the extract is a full, true
and correct copy of the minutes insofar as they elate to the issuance and sale of $1,645,000
General Obligation Improvement Bonds, Series 20 OB of the City.
WITNESS My hand officially as such Cit Administrator and the corporate seal of the
City this
day of
,2000.
(SEAL)
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City Administrator
Monticello, Minnesota
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STATE OF MINNESOTA
COUNTY OF WRIGHT
COUNTY AUDITOR'S
CERTIFICATE AS TO
TAX LEVY AND
REGISlRA nON
I, the undersigned County Auditor of right County, Minnesota, hereby certify that a
certified copy of a resolution adopted by the governing body of the City of Monticello,
Minnesota, on July 10, 2000, levying taxes for e payment of $1,645,000 General Obligation
Improvement Bonds, Series 2000B, of said muni ipality dated August 1, 2000, has been filed in
my office and said bonds have been entered on e register of obligations in my office and that
such tax has been levied as required by law.
WITNESS My hand and official seal this
(SEAL)
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day of
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County Auditor
Wright County, Minnesota
By
Deputy
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Council Agenda - 7/10/00
8.
IF
A. Reference and BackJround.
The City Council is asked to authorize exec tion of a Letter of Acknowledgment for TIF
assistance for redevelopment of the Klucas roperty. The Letter of Acknowledgment to be
submitted as part of a tax credit application 0 the Minnesota Housing Finance Agency
(MHF A) from the developer, Larry Olson 0 Metro Plains. Tax credit applications are
due July 20, 2000.
You may recall, Attorney Brad Larson appr ached the City Council in January 1999 for
the same request. The Council, at that time authorized execution of the letter approving
the requested TIP assistance for reimburse ent of soils correction in an amount not to
exceed $10,000 and 50% of the annual tax i crement over 5 years to "buy down" the rents
of the tenants. The recommendation had b n forwarded to the Council by the HRA. The
application was submitted to Minnesota Ho sing Finance Agency (MHF A); however, the
application did not score sufficient points to receive funding. Attorney Larson withdrew
the TIF request in mid-June of 1999. The i 'tial proposal consists of32-umts in Phase I,
28-units in Phase II, and undetermined plan for Phase Ill. The initial approved PUD
Conditional Use Permit has expired and the developer will need to re-apply.
Mr. Olson will make a presentation to the ity Council and will serve as the developer.
Attorney Larson will serve as the project's gal counsel. The project includes the
development of 32-umts of3.bedroom rent 1 townhouses, single garages.
MHF A has changed their point systems ad . ng additional points for other public or
community assistance such as W AC/SAC rite-downs from Cities or housing vouchers
and non-profit contributions. It is my unde standing, the developer has obtained funding
for this proposal/application from a non-pr fit entity, MN Accessible Affordable Housing,
and will work with St. Cloud BRA relative 0 housing vouchers.
At the July 5, 2000, HRA meeting, the commissioners considered Mr. Olson's
request for TIF assistance and approved th use of TIP for redevelopment of the Klucas
property subject to the City Council consid ration to execute the Letter of
Acknowledgment. The approved TIF assi tance for reimbursement of soils corrections in
an amount not to exceed $10,000 and a se '-annual real estate tax rebate of 50% of the
project tax increment for a period of five y ars which funds would be used to "buy down"
the rents of tenants. The motion passed 3 1. Discussion centered around a developer,
again, coming before the HRA requesting rushed decision in order to make a July 20
application deadline.
1
.
Council Agenda. 7/10/00
The summary of a housing study conducte by AdMark Resource, Inc. of St. Cloud in
January 1999 indicated a demand for 42 (3. edroom) affordable rental units at 600,10 level.
The 1999 MHFA annual median income ( I) for Wright County is $63,600. For a
household of 4, the income limits at 60% is $38,160 and for a 3.bedroom unit, the
maximum gross rent is $992.
The TIP District would be a "Qualified Ho sing District" exempting the City from the
HACA Penalty or Local Match. The conce t plan requires review by the Planning
Commission for a conditional use permit an the TIP expenditures require review by
Ehlers & Associates and Kennedy & Grav for eligibility in context with state law.
Establislunent of the TIP District and appr at of the TIP Plan would be in the future.
A copy of the Letter of Acknowledgment fi r execution is attached.
B. Alternative Action:
1. A motion to authorize execution of Letter of Acknowledgment for TIP
assistance for redevelopment of the ucas property.
2.
A motion to deny authorization to ecute a Letter of Acknowledgment for TIP
assistance for redevelopment of the lucas property.
.
3. A motion to table any action.
C. Recommendation:
Without having seen a concept plan of the roposed project or knowing the proposed
construction costs or estimated market val e, the City Administrative hesitates to give a
recommendation. If the project appears on of quality and is a "Qualified Housing
District". the Administrator would recomm d Alternative No.1. The Letter of
Knowledgment is a preliminary approval fo TIP assistance for the purpose of the tax
credit application. The applicant will appl for the conditional use permit upon receiving
funding from the MHF A.
D. Supporting Data:
Copy of the Letter of Acknowledgment an map.
.
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9.
Consideration of urehase of the ro e
Hall/Communitv Center site. (.TO)
REFERENCE AND BACKGROUND
Please note that the appraisal data is not p blic.
City Council Agenda - 07/]0/00
Jim Eisele ad' aeent to Fire
In May of 1999, the City Council rejected he notion of purchasing the Eisele property as
noted in the attached meeting minutes. A ew things have changed since Council last
acted on this matter which may justify rec nsideration. Staff has been informed by Eisele
that he will be putting his building and pro erty on the market. Purchase of the building
at this time will provide the City with the pportunity to buy it before a similar type of
use moves into the neighborhood. Jim has kept the building and property in a very
presentable condition. There is no guarant e that a future user of this structure for a
similar use would do as good of a job. Th need for storage space continues to grow.
According to Scott Douglas, the Fire Depa tment needs storage space and the City could
use the space for housing building inspecti n vehicles. Leasing space to the Guard as a
vehicle repair location remains a potential.
Jim Eisele has suggested a purchase price f $156,000, which is the same as he was
willing to accept in May of 1999. Followi g is an excerpt from the agenda item written
in May of 1999.
"Jim Eisele set his original purchas price at $175,000. The City had an appraisal
completed some time ago which in icated that the value of the property is
$120,000. Due to 4% inflation in I ld values, the current value is approximately
$124,800. According to Dan Wilso ,the relocation benefits could be set at
$20,500. Adding an additional $5,0)0 for avoidance of legal fees results in a cost
of $150,000". The price desired by jsele at that time was $156,000.
As you will notice, the appraised value at t . t time with a 4% inflation was set at
$124,800. Ifwe add another 4% fiJr the per od May 1999 through today, the value would
come in at about $130,000. If one conclud s that the appraisal plus adjustments remains
valid even with the intervening construction of the Community Center, the price that
Eisele is asking for the City to pay is above he appraised value. As noted in the May
report to Council, $20,500 of the $150,000 sking prices was for relocation expenses.
Since in this case, Eisele wants to move any ay, it may bc diHicult to justify adding
rclocation expenses to the purchase price. n the other hand, the party that purchases the
site from Eisele would also be cligible for I' location so it is not likely that this expense
will go away. Also, perhaps the land values have increased faster than 4% due to the
development of the Community Center and heref()re basing a sales price on the original
appraisal plus inflation may not be valid.
Budget impact. This is a non-budgeted item. Funds for this purchase would need to be
drawn directly from reserves.
-1-
City COLlllcil Agenda - 07!1 0/00
.
ALTERNATIVE ACTIONS
I. Motion to approve purchase and relo ation expenses associated with City
acquisition of the Eisele property in t e amount of $156,000 (or some other
number).
Under this alternative the City believ s that payment of an amount in excess of
the appraised value is justifiable give the likelihood that it will be needed in the
future and there is a chance that relo ation benefits will need to be paid at some
point. If not Eisele, the future prope y owner might be eligible for relocation
benefits so perhaps paying a premiUl for the property today is justified. Buying
the property today could intercept fu ure land use conflicts. If the price is fair,
why put off the inevitable.
2.
Motion to deny authorization to purc ase property and discuss action with regard
to enforcement of the zoning ordinal ceo
.
Under this alternative the City woul be taking the position that the building/land
is not needed at this time and that th re is no overriding reason why the City
should purchase the land for any mo e than the appraised value at this time. A
future land owner would likely be ab e to operate the site similar to the current
operation. Please note however that the storage area west of Linn Street is not
allowed by ordinance. Outside storare is not allowed in the CCD District and was
not aIlowed under the zoning district that was in place when Eisele began to use
the property for outside storage. Co ncilmay wish to discuss enforcement issues
relating to the current and future use f the parcel west of Linn Street.
Also, the City could build a simple g rage on the site to satisfy short term storage
needs at a cost far less than $156,00 .
3. Motion to table matter, but authorize stalT to obtain an updated appraisal on the
property.
Due to the development of the Comr unity Center and other factors, it could be
that the property is worth more than 130,000. Council may wish to direct staff to
inform Eisele of an interest in purch' sing the property with the caveat that the
price needs to be at or near appraise value. Due to the f~lct that the existing
appraised is old, it may make sense t have it updated.
RECOMMENDA nON
.
It is the recommendation of the City Admin'strator to hold olT on purchase of the
property until the price comes down. It is his view that Eisele is not likely to get
$156,000 Cor the building and land, especial y in light of the Cact that the stranded plcd
can not be used f()f outdoor storage by a flit re user. Also, the $156,000 includes (20,000
-2-
.
City Council Agenda - 07/10/00
for relocation. Why would a future buyer ay Eisele for relocation? Even though the
structure is immaculate, it would be surpri" ing to see a party be willing to spend $156,000
for it. The City Administrator suggests th, the city make a counter offer at a lower price,
or wait and see what happens when Eisele uts the property up on the open market.
Perhaps Eisele will be willing to sell at a l( wer price once the land has been for sale for a
while. If Council is interested in buying th parcel, it is recommended that the appraisal
be updated and the purchase price be established accordingly.
SUPPORTING DATA
Excerpt from meeting minutes of May 199
.
.
^'
- -,-
Council Minutes - 5/1 0/99
~~'
~
Councilmember Clint Herbst suggested that staff d scuss with Mr. Bondhus the idea of
swapping a pathway easement for CSAH 75 assess ents in order to complete the river
walk connection.
A MOTION WAS MADE BY BRUCE THIELEN AN SECONDED BY ROGER CARLSON
TO DIRECT STAFF TO COMPLETE A STUDY DE ERMINING THE PROPER AMOUNT
FOR THE PATHWAY DEDICATION FEE AND DE ELOP POLICIES FOR
IMPLEMENTATION OF THE FEE PROGRAM FOR FUTURE CITY COUNCIL APPROVAL
AND POSSIBLE PUBLIC COMMENT PROCESS. otion carried unanimously.
Consideration of
Broadwav.
Economic Development Director Ollie Koropchak reported that Mr. Bill Grassl, owner of
Domino's Pizza, has offered the City of Monticell an opportunity to purchase a 6-ft by
165-ft strip of the downtown parcel described as t e west 17 ft of Lot 10 and east 26 ft of
Lot 11, Block 35. This strip ofland would allow t e City to carry out the goals and
objectives of the Downtown and Riverfront Revit lization Plan by creating a public
access or walkway between Broadway businesses nd the rear public/private parking lot.
In addition, she noted that Mr. Grassl is also inter sted in asking the HRA to swap his lot
for the one located next to the MCP office.
Council members noted that they would be interes ed in creating a public walkway from
Broadway to the parking lot; however, they felt th t the land swap should first be
discussed with the HRA.
AFTER DISCUSSION, A MOTION WAS MADE B BRUCE THIELEN AND SECONDED
BY ROGER CARLSON TO TABLE ACTION ON T IS ITEM PENDING FURTHER STUDY
BY THE BRA REGARDING THE PROPOSED LA D SWAP. Motion carried unanimously.
Consideration of urchase of the
community center site.
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Jim Eisele located ad' acent to
Deputy City Administrator Jeff O'Neill reported t at Mr. Jim Eisele has offered to sell
his garage and land to the City and accept relocati n expenses for a total amount of
$156,000. The sale would be contingent on Mr. isele obtaining approvals for
development of a similar facility on a portion of p operty recently purchased by Jeff
Michaelis for his bulk oil facility. It was noted th t the City did not need to acquire this
site from Mr. Eisele for the community center to . evelop and operate; however,
acquisition of the building and the associated site i ontrol would benefit the City by
providing storage space for vehicles and equipme: t. In addition, Mr. O'Neill noted that
in the past the National Guard has expressed inte . st in leasing space from the City for
maintenance of Guard vehicles.
Page 10
~~M""""'''''~'-- .".....
Council Minutes - 5/10/99
i .>uncil discussed whether it would be best for the Guard t purchase the property
directly from Mr. Eisele and what price would be charged y the City to lease the space.
AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE HIELEN AND SECONDED
BY CLINT HERBST TO TABLE ACTION ON THIS ITEM P NDING ADDITIONAL
RESEARCH BY CITY STAFF. Motion carried unanimously
Consideration of bills for the first half of May 1999.
A MOTION WAS MADE BY CLINT HERBST AND SECON ED BY ROGER CARLSON
TO APPROVE THE BILLS FOR THE FIRST HALF OF MAY 1999 AS PRESENTED.
Motion carried unanimously.
MOTION WAS MADE BY ROGER CARLSON AND SECONDED Y BRUCE THIELEN TO
IJOURN THE MEETING. Motion carried unanimously.
j7t 0 /1~'y
'~enJ>'1) e y oty .
:puty ~ erk
.1"0. by Jeff O'Neill, Deputy City Administrator
.
Page 11
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10.
City Council Agenda - 07/10/00
REFERENCE AND BACKGROUND
ment of
Negotiations on development of the Ferrel . as site and associated potential expansion of
the liquor store site have been proceeding. t appears at this time that the overall project
will not include expansion of the Liquor St re because it is not likely that cost benefit
information and associated decision making needed in this regard will occur in time to
allow simultaneous expansion of the liquor tore with development of the New Town
facilities. It appears therefore that the New own plans will proceed without expansion
of the Liquor Store.
Although a study has been done outlining d sign concepts and costs associated with
expanding the liquor store, there has been n formal market study that would examine the
economic factors that would support such a expansion. Also, there has been talk of
developing a second store adjacent to the Li erty Savings building or adjacent to the new
Conoco convenience store. Does it make s nse to develop a second store at this location
rather than building on to the current facilit ? What would be the net economic afTect of
adding a second store?
ALTERNATIVE ACTION
I. Motion to authorize staff to seek pr posals from various firms specializing in
market studies t(lr the purpose of pr paring a plan for maximizing potential
revenue associated with municipal I quor operations.
Under this alternative, City stall wo Id obtain proposals from various firms
specializing in such studies and pre ent them to Council for consideration. As a
modification to this alternative, Co ncil could authorize City staff to proceed with
obtaining quotes and give us author ty to select a reputable firm without bringing
proposals back to the City Council. Council should give staff a "not to exceed"
amount under this alternative.
2. Motion to deny authorization to see proposals on said study.
Council could take the position that it is premature to look at a second location.
Or perhaps Council does not believ that a market study is necessary to justify
expansion of the store at the present location.
-1-
.
City Council Agenda - 07/10/00
RECOMMEND A nON
The City Administrator recommends that a study be conducted that will result in a plan
for further developmcnt of Municipal Liqu r operations. Liquor Store revenue is an
important part ofthc City budget and it ma es sense for the City to develop the business.
The timc is probably right for the City to g t the information it needs to move in the right
direction.
SUPPORTING DATA
None
.
.
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