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City Council Agenda Packet 07-23-2001 . AGENDA REGULAR MEETING - MONTI 'ELLO CITY COUNCIL Monday, .July 23 2001 - 7 p.m. INFORMATIONAL MEETING - CSA 75 IMPROVEMENT PROJECT NO. 2000-16C - 5:30 - 6:30 P.M. .JULY 23, 2001. Mayor: Roger Belsaas Council Members: Roger Carlson, Clint Herbst, rian Stumpf and Bruce Thielen 3. Consideration of adding items to the agenda. 4. Citizen comments/petitions, request and com 5. Consent agenda. I . Call to Order 2.A. Approve minutes ofJuly 9. 2001 regular Co neil meeting. B. Approve minutes of CSAH 75 Workshop ml:eting July 9, 2001. . A Consideration of ratifying new hires ~u.U ~< \tlJ b 8. Consideration to review Greater Mon icello Enterprise Fund (GM hI") Loan No. 0) ') for compliance with the EDA-GMEF. usiness Subsidy Criteria.. C. Consideration of amending Title Sevel. Chapter 2, City Ordinance clarifying penalty for violating provisions of water ordin nee. 6. Consideration of items removed from the con ent agenda for discussion. 7. Public Hearing - Consideration of a reso)utiOl adopting proposed assessment roll for delinquent utility bills and certification of ass ssment roll to County. ~.( ~S 8. Consideration of adopting assessment for CS H 75 Project No. 98~17C. (Kean and Bondhus properties) \ \ 10. . Consideration of resolution awarding sale of $ ,150,000 Taxable Temporary G.O. Tax Increment Bonds - Series 7-31-200 I. Consideration of an offer fiJr purchase of renm nt parcel adjacent to West Chelsea Road ~ Dr. John Erlandson. Consideration of reviewing liquor store schem tic design plans and authorization to prepare final construction documents. Consideration of adopting roadway design conlguration ll1l' CSAH 75 Project No. 2000-16(' ~o.:::. . . . Agenda Monticello City Council July 23, 2001 Page Two 13. Review of second quarter 200 I Monticello ( ommunity Center financial statements. 14. Consideration of accepting petition for anne ation and consideration of request to review preliminary plat of the Pine Meadows Subdi ision. Applicant: Gold Nugget Development. IS. Consideration ofremoving the trail section l' om the City Park/Outlot A River Mill 6th from the comprehensive park and trai I system for the :ity of Monticello. 16. Consideration of adding Gillard Avenue fro Pathway system and consider making a reeOI installation of the pathway at said location. East County Road 39 to 95th Street to City mendation that a feasibility study be ordered on the 17. Update on action taken with regards to Oak idge Drive/Gillard Avenue speed control analysis. 18. Consideration of approving plans and specifi ations and authorizing advertisement for bids for Walnut Street Corridor Improvements, Proje t No. 2000-17C. 19. Verbal Update - Blight Report 20. Approve payment of bills for July. 21. Adjourn. 411(l~~cJ-,u,J f ~t 'r-I""j '- G- t ( 4l""\ J . . . MIN TES REGIJLAR MEETING - MO TICELLO CITY COUNCIL .July 9,200 - 7 p.m. Members Present: Roger Belsaas, Clint Herbst, rian Stumpf and Bruce Thielen. Members Absent: Roger Carlson 1. Call to Order. Mayor Bclsaas called the meeting to order at 7: 10 p.m. and declared a quorum present. 2. A rove minutes of June 25 2001 re ularCouncil meetin . BRIAN STUMPF MOVED TO APPROVE fiE MINUTES OF THE JUNE 25. 200 I REGULAR COUNCIL MEETING AS PRE ENTED. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIM lJSL Y. 3. Consideration of addin items to the a ~en The f()llowing items were added to the agend : 1) Landscaping for medians on CSAII 75; 2) Monticello Ford; 3) Follow up on mailbox maintenance; 4) Blight conditions - Red Rock Lane; 5) Street light - River Mill area; 6) Update on liquor store expansion; and 7) Water sprinkling. It was noted that Clint Herbst, 13 uce 'fhie]en and Jeff O'Neill will be meeting with representatives of the schoo] district. This meeting was tentatively set for July 24th. 4. Citizens comments/ etitions re uests and om laints. Tom and Jean Matis, 106 l3alboul Circle earn before the Council to request that the City take some action to clear up the blight conditions i. ] 10 Balboul Circle (155-031-002080). They stated that the problem has been ongoing for llany years and the City has failed to act on enforcing the City's ordinance. They stated t ley are trying to sell their propeliy and the presence of the blighted property has not only lowered the value of their property but has kept it from selling. Clint Herbst stated that the City needs someo e who is willing to carry out the enf()l"cement orthe ordinance. The matter was referred to red Patch who was directed to work with the attorney on getting the blighted property into ompliance in a timely fashion. City Attorney, Dennis Dalen indicated that the processing tit e on a blight issue can be as little as 30 days or can run as In-nch as 90 days. Bruce Thie]en st, ted hc would like to know what is going on and askcd that the Council be updated on the statu of this property. BRUCE TI IIELEN MOVED TO DIRECT ST FF TO WORK ON BRINGING THE BLIGHTED PROPERTY AT 110 BALBOUL CIRCLE INTO COMPLIANCE AND TO :J/J. . . . Council Minutes - 7/9/01 REPORT BACK TO THE COUNCIL AT THE NI~XT MEETING. BRIAN STUMPF SEC()NDED THE MOTION. MOTION ARRIED UNANIMOUSLY. John Young, 9631 Gillard Avenue presentd two issues o[concern to the Council: I) Speeding on Gillard A venue and need f r installation of a stop sign and 2) Development of a pedestrian walkway f()f the area. He note that he had come before the Council a year ago on the same issue but nothing has been don. Mr. Young stated that the sheriffs department patrols the area but the patrol C'r is not parked there for any length of time so their presence has not deterred speeders. I Ie would like to see a three way stop at the intersection of Gillard and 97th Street. Recently another child was struck by a vehi Ie in this area and that prompted a request to have the City look at some kind of walkway for edestrians. Ideally residents would like an off- strect pathway from County Road 39 to Co nty Road 75. The Council discussed whether the problem could best be addressed by a path ay or by sidewalk construction. City Engineer, Bret Weiss, indicated that pI cement of a stop sign does not insure that vehicles will stop so pedestrians may have' false sense of security from the presence of a stop sign. He noted that the sight distance in thi. particular instance may warrant placement of the sign but it would have to be done in agreem nt with the Township since they have authority over half of the street. Bruce Thielen stated that placement of stop signs should not be used to control a speeding problem. I Ie felt that the ofT street pathway should be referred to the Parks Commission so that they could develop a pI n for that area which would then come back to the Council for approval. BRIAN STUMPF DIRECTED STAFF TO -lAVE THE SHERIFF'S DEPARTMENT PROVIDE ADDITIONAL PATROL FOR' HIS AREA. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UN NIMOUSL Y. Jeff O'Neill was directed to provide John Yc ung with the timetable for pathway development plan. Jim Freeberg, 2681 Oak Ridge Drive, came efare the Council to requcst a stop sign be placcd at Oakview Lane and Oak Ridge Dri e. I Ie pointed out that with the additional development in the area there is increased tr' ffic and traffic is moving at higher speeds. He indicated that there is sight problems at this i tersection that should be considered. Bruce Thielen suggested that the City Engineer, Br t Weiss, look at the intersection and make a recommendation to thc Council at the next n eeting. Bruce Thielen expressed concern about making a habit of installing a stop sign at ev ry location and emphasizcd that stop signs were not the best way to control speeding. 5. Consent Agenda. A. Consideration of issuing a gambling I cense to VFW Post #8731 to conduct gambling 2 ~A . . . Council Minutes - 7/9/0 1 at the Monticello VFW. Recomme dation: Adopt resolution authorizing the State Gamhling Control Board to issue a C 1aritable gambling license to VFW Post #8731. Res. No. 2001-44. B. Consideration of approving new hires and departures for the Monticello Community Center. Recommendation: Ratify t e hiring of the part-time employees for the Monticello Community Center as id ntified. c. Consideration of an application for r zoning from I-I to R-2 and a revised development stage conditional use p nnit/planned unit development and a preliminary plat to allow the development of 97 nit Montissippi 'rrail Townhomes located on the "Klucas" property. Applicant: Harst d Holdings, Inc. Recommendation: Move to approve the rezoning lrom 1-1 to R-2' to approve the concept and development stage planned unit development and appro e the preliminary plat for Montissippi Trail Townhomes on the "Klucas" propert with the conditions noted by the Planning Commission. Ord. Amd. #362. On the consent agenda, Clint Herbst pointed out that the rezoning request for itcm #5C must be approved by a 415's vote. John Simola rep rted that Sunny Fresh had agreed to pay 75% of the cost for the software changes necessary t incorporate the gravity belt thickener onto the system so agenda item #7 could also be inel ded on the consent agenda. BRUCE THIELEN MOVED '1'0 APPROV TIlE CONSENT AGENDA INCLUDING AGENDA ITEM #7, SOFTWARE CHANG =S TO THE OPERA TING SYSTEM FOR THE WWTP. BRIAN STUMPF SECONDED TE MOTION. MOTION CARRIED UNANIMOUSL Y THUS MEETING THE 45'S REQUIREMENT FOR APPROVAL OF THE REZONING. 6. Consideration of items removed from the None. 7. Consideration of software chan l!ravity belt thickener. Included with consent agenda. 8. s stem for the WWTP to incor orate the Consideration of acce tin J hids and awardin contract for Brid e and Pathwa Improvements. Project No. 98-02C. Bret Weiss reviewed the bids received on this project and pointed out that the low bid was $60,000 ahove the engineer's estimate but wa still within 10% of the estimated cost. Because the project was hid later in the constr Iction season, it may have resulted in few contractors submitting bids. Bret Weiss indic lled that they are still working on the easement ., ., d-f:1 . . . Council Minutes - 719/01 acquisition on the Weinand and Dahlheime' property. Mayor Bclsaas asked what progress had been made on getting an access on CS J-l 75 for Dahlheimers. Bret Weiss stated that they arc still working on it hut it has not ye heen resolved. It is the intent that the bridge and connecting pathway will be completed by t is fall. City Administrator, Rick Woltsteller, indie' ted that the City has hudgeted through 2001 tl.X this project totaling $240,000. However, th City will still need to come up with an additional $185,000-$200,000. The Council will need to make a determination how the halanee of the City's portion will need to he funded. BRUCE THIELEN MOVED TO A WARD HE CONTRACT FOR PROJECT 98-02C TO REDSTONE CONSTRUCTION COMPANY, INC. IN THE AMOUNT OF $698,072.55 CONTINGENT UPON MEETING ALL OF MN/DOT AND FEDERAL APPROVALS. CLINT HERBST SECONDED THE MOTI )N. MOTION CARRIED UNANIMOUSLY. 9. This project was tabled at the last meeting to allow the developer and the City Engineer to meet and review the design for the street project. That meeting took place on July 3, 2001. The developer was now requesting the Coun il to consider deferring the assessment i()r the street project until 2003. City Administrator, Rick Wolfsteller, eXplained that the assessment is llonnally levied at the completion of the cOlstruction. To construct the project in 2001 and not levy the assessment until 2003 could set precedent for other projects and did the City want to have that much of a time gap hetwee the work being completed and the assessment being levied. Clint Herbst asked about a dela ed assessment. Rick Wolfsteller indicated that it may he possihle hut it may also drive up th financing cost. Dan Mielke spoke indicating that his develop ent group had met and their feeling was that since it was so late into the construction seaso 1, they didn't think the project could be completed this year. Their plan was to get all he design issues resolved and bring the project back in January for bidding. Upon learning fr m the City Engineer, that the project could still be completed this construction season, the dev 10pment group would like to rethink their plan of action and proceed with the work this year. revious Council action on street work and the interior utilities was contingent upon Mr. Mid e signing a waiver and to date this waiver has not aeen signed. Mr. Mielke stated that he cOlld not sign the waiver without seeing the utility plans. Bret Weiss indicated the plans are read . Mr. Mielke stated he would like to present the plans to his development group. The Cou cil discussed the time frame fl.)r bidding the projects and holding an assessment hearing. dding the 30 day time frame f()r a possible assessment appeal would put awarding the con ract late into the construction season. CLINT HL':RBST MOVED TO APPROVE TH ~ PLANS AND SPECIFICATIONS FOR THE CEDAR S"rREET I MPROVEML-:NT PR JECT AS PREPARED AND TO ORDER ADVERTISEMENT FOR BIDS CONTINGE T UPON THE DEVELOPER SUBMITTING 4 :dA . . . Council Minutes - 7/9/0 I A SIGNED WAIVER FOR THE STREET IMPROVEMEN'/,S BY NOON ON JULY II, 2001. BRIAN STUMPF SECONDED T E MOTION. MOTION CARRIED UNANIMOUSL Y. Res. #2001-46 10. Consideration of ado tin resolution dec arin cost to be assessed and seHin a ublic tion of an assessment rol for the Cedar Street 1m rovement Pro 'ect No. BRIAN STUMPF MOVED TO ADOPT A ESOLUTION SETTING THE PUBLIC I fEARING ON ADOPTION OF THE ASS SSMENT ROLL FOR THE CEDAR STRE1:T IMPROVEMENT PROJECT NO. 2000-18 . FOR THE AUGUST 13, 200} COUNCIL MEETING. CLINT HERBST SECONDE THE MOTION. MOTION CARRIED UNANIMOUSL Y. Res. No. 2001-48 11. Consideration of revised cost estimate for 7th Street East 1m rovements Pro' ect No. 2001-07C. City Engineer, Bret Weiss summarized the p oposed change to the plans and specifications which remove all the bituminous surface frOll the street. This would add an estimated $135,000 in cost to the project. CLINT HERBST MOVED TO APPROVE T IE REDESIGN OF THE 7111 STREET RECONSTRUCTION PROJECT AND ORDER THE ADVERTISEMENT FOR BIDS. BRUCE THIELEN SECONDED THE MOT ON. MOTION CARRfED UNANIMOUSL Y. Res. No. 2001-47. Added Items: 1. Landscaping Medians - CSAH 75: The Co ll1cil discussed the landscaping for the medians on the completed portion of CSAH 75. It was suggested that instead of having the Planner prepare a landscape plan, that the Public Wor s Department could come up with plan for suggested plantings. John Simola indicated th t he would bring this back at thc next meeting. 2. Monticello Ford - Clint Herbst asked how the SACIW AC charges had been determined for the car wash portion of the operation. Rick olf<;teller explained that there is a formula the City uses that looks at the equipment used, the type of lacility, etc. and that is the basis for determining the charges. Whether the car was operation is for public or private use is not a factor in the formula. 3. Mailbox Maintenance - The question of who is responsible to maintain the mailboxes was brought up at a previous meeting. Maintaining the mailbox is the responsibility of the homeowner. Bruce Thielen felt that there shou d be some ordinance in place for maintenance of what is placed in the right-of-way. City staf is directed to check into this and bring it back to the Council. 5 dA . . . Council Minutes - 7/9/01 4. Blight - Bruce Thielen wanted a follow up t the blight complaint on Rcd Rock Lane which was brought up at the last meeting. Dennis alen indicated the complaints were ready to be filed. Bruce Thielen asked that the property )wners who brought up this matter be notified of the City's action. Dennis Dalen indicated th t he would do so. Brucc Thielen also asked that thc Council be kept informed of any legal ac ion taken. 5. Street Light - River Mill - Brian Stumpf asked if anything had he en done about the street light. John Simola indicated that he had ins ected that area and according to standard layout there appears to be one light missing which ill be ordered. Roger Belsaas also reported that there is a problem with one of the lights alon)" the Meadow Oaks path and asked .John Simola to check into it. 6. Liquor Store Expansion - City Administrat r, Rick Wolfsteller, updated the Council on the proposed expansion to the liquor store and th preliminary layouts that are being looked at. 7. Water Supply - John Simola reported on J ly 81h the system pumped 4.3 million gallons of water which is a record high. The high wate usage and the continued dry weather has prompted the Public Works Department to as the Council to implement an odd-even watering system. The Council discussed the effective date of the odd-even watering restriction, the penalties for violation. BRUCE THIELEN MOVED TO INSTITUT ., AN ODD-EVEN WATER BAN IN MONTICELLO EFfECTIVE THURSDAY, JULY ]2,200] AT MIDNIGHT AND TO INSTRUCT CITY STAFf TO COME BAC WITH AN ORDINANCE AMENDMENT TO ALLOW IMPOSITION OF TlIE WATER B N IN THE FUTURE WITHOUT IT COMING BACK TO THE COUNCIL AND ALSO TO WORK WITH THE WRIGHT COUNTY SHERIfF'S DEPARTMENT IN ENFORCE ENT OF THE BAN. CLINT HERBST SECONDED THE MOTION. MOTION CA RIED UNANIMOUSLY. 8. Approve payment of bills for .July. BRIAN STUMPF MOVED TO APPROVE P YMENT OF RILLS FOR JULY. BRUCE THIELEN SECONDED THE MOTION. Me TION CARRIED UNANIMOUSL Y. Other: Dick Van Allen wanted to go on record as Ch irman orthe IDC to recommend that the City not reinstate an MOAA agreement. He listed a numb r of concerns ahout the MOAA agreement. lIe also expressed his concern that the City address the n cd for industrial land. Mayor Belsaas indicated that the status of the MOAA agreement will be discussed at the July 11th MOAA meeting. 9. The Council elosed the meeting at 8:40 p.m. t discuss litigation. At 9:25 the Council reopened the regular Council meeting. The C uncil indicated that hy motion of the City 6 t?J A . . ~ ,., Council Minutes - 7/9/0 I Council the City Attorney was instructed t proceed with the settlement agreenlent with minor modifications. The City Attorney w s directed to inform the County and the Township that in light ofthe recent court action the m jority of the City Council, based on a 3 to I vote, is of the opinion that the MOAA Board is n longer in existence. 10. Adjourn. BRUCE THIELEN MOVED TO AD./OUR AT 9:30 P.M.. CLINT HERBST SECONDED THE MOHON. MOTION CARRIED UN NIMOUSL Y. ~-'_._~,-- Recording Secretary 7 dA MIN ITES SPECIAL MEETING - MO TICELLO CITY COUNCIL CSAII 75 ORKSHOP .July 9, 2001 - 5:30 p.m. . Members Present: Roger Belsaas, Clint -!erbst Brian Stumpf and Bruce Thielen. Members Absent: Roger Carlson Staff Present: Rick Wolfsteller, .left O'Neill, Ollie Koropchak, Roger Mack, John Simola; WSB: Becky I-:lauschild, Ron Bray and Bret Weiss; Wright County Highway Dep rtment: Wayne Fingalson and Virgil Hawkins, Wright County Comn issioner: Pat Sawatzke The workshop for the CSAH 75 project opened at 5:30 p.m. WSB & Associates, Inc. presented information on the proposed design for CSAH 75 fr m Washington Street to Otter Creek Road. It was noted that the Minnesota Department of Transp rtation had approved a variance from design standards to allow construction of a median 3' in wi th instead of 4' and 8.5' parking lanes instead of 10' f()f' CSAH 75 from Washington Street to Chestn t Street. The engineers then presented design information on the preferred alternative which includes five lanes but retains parking. This design is lower in cost because existing curb and storm sewer remains in place and the power line does not need to be move. It accommodates the residents desire to retain street parking and to continue to allow them to back out of their driveway onto CSAH 75. The engineers presented information on traffic volumes, s fety considerations, accidents and other items that factored into their design of the street layout. . The design limits access onto certain streets. The en ineers reviewed the design layout noting which streets were proposed to have full access and which s reets would have limited or restricted access. This had been an area of concern for some members f the Council particularly as far as emergency vehicles. The County representatives felt that the Ii 1 ited access was a trade oil for bei ng able to maintain parking on Broadway (CSAI I 75). There w s still concern expressed about one three block segment that had limited access. There were a numb r of other sites where there would have to be some modifications to their access to CSAH 75. Thes include Pinewood Elementary and West Side Markel. There was discussion on landscaping and plantings fo the median. It was noted that the landscaping plan should feature hearty vegetation that requires littl irrigation. Siaff noted that they would review successful plantings installed by other cities in similar nvironments and report back to the City Council. Prclinlinary cost estimates were presented. Of an estil ated total of $2,900,000-$3.1 00,000, the City's share would be approximately $2, I 00,000 and tl e County's share $1,000,000. There was a question raised on the lighting cost presented. Ron Br y explained that the $102,000 cost was to replace the existing street lighting. It did not include th cost of the signal which would be another ~ ,., . . - - Special Meeting Minutes - 7/9/0 I $150,000 and that cost would be shared equally by the City and the County. It was pointed out that a good portion of the City's cost was f(Jr replacemen of sanitary sewer and water main. The County was asking that the City approve the d sign layout at the July 23, 2001 Council meeting. It was felt that the City should hold another inform tional meeting so that the residents could see the design layout and have another chance to comment on the design. An inflmnational meeting was set 1()f Monday, July 23, 2001 at 5:30 at the Monticell City Hall. --'--._-,.,-"-'-._"-"._,-"-._,._,,-~,- Record i I1g Secretary 2 . . . SA. Consideration of a new hires a A. }{EFERENCE AND BACKGROUND: Council Agenda - 7/23/01 artures for the communi center. (RW) The Council is asked to ratify the hiring of ew employees that have occurred recently at thc the community center.. As YOll recall, it is reco mended that the Council officially ratify the hiring of all new employees including part-time a d seasonal workers. H. AL TERNA TIVE ACTIONS: 1. Ratify the hiring of the part-time eI ployees for the community center as identified on the attached list. C. SUPPORTING DATA: Lists of new part-time employees. NEW EMP OYEES Title Department Hire Date Class Lifeguard MCC 6/2/01 PT Lifeguard MCC 6/20/01 PT Custodian MCC 6/30/01 PT TERMINA TING E iIIPLOYEES Reason Department Last Day Class voluntary 1\ CC 6/30/01 PT job at PW 1\ CC 7/12/01 PT voluntary 1\ CC 6/21/01 PT . /2001 SA -- --. ~ .- -- -- . Name Larson/Paul Klym/Andrew Willemsen/Jennifer . Name Rovnak/Justin Hindermann/Ed Aleckson/P . employee councillist.xls: 07/19 . . . 5B. City Council Agenda - 7/23101 A. Reference and Back~:round: The EDA requests the City Council review GMEF Loan No. 019 for compliance with the EDA-GMEF Business Subsidy Criteria. n e GMEF Guidelines state: "The EDA shall have authority to approve or deny loans; ho evcr, within 21 days of EDA approval, the City Council may reversc a decision by the EDA to approvc a loan if it is determined by Council that such loan was issued in violati n of the GM EF Guidelines." On July 192001, the EOA approved GME Loan No. 019 for unknown LLC dba EDMA Company. The approval was subject to fun ing commitment by SBA. For your review, enclosed as supporting data is the outline us d by the EDA f(x determination ofGMEF public purpose and policy compliance. The real estate loan was approved for $30,0 0 at a 4.75% fixed interest rate with amortization not to exceed 20 years. Balloo payment at 5 years. Loan fee set at $200 and GMEF Icgal fees the responsibility oft e applicant. The GMEF loan will take a first-position on one piece of equipment and take a second position bchind the lender on other listed equipment, Western Bank, Way..ata. Collateral, guarantees, and other condition requirements to be determined an prepared by the GMEF attorney. The Monticello f~lcility will employ at least 3 ful -time people within two years and they will construct an approximate 10,000 sq it buildi g. At least 90% of the new jobs to pay a wage of higher than $9.00 per hour, exclusi e of benefits, for individuals over the age of 20 during the term of thc assistance. Annual written reports are required until termination date. Failure to meet the job and wage level goals require partial or full repayment of the assistance with interest. Council will not be sked to approve a Subsidy Agreement between the EDA and LLC dba EDMA Con pany as the subsidy is less than $75,000. And because the assistance does not exceed 100,000, a public hearing is not required. This project will be located at 1335 Dundas :ircle to the immcdiate north of Lake Tool in the Oakwood Industrial Park, Second Additi n. Mtcr review of the EDA outline for GMEF ublic purpos.e and policy compliance, the EDA requests the City Council consider the following actions. . City Council Agenda - 7/23101 B. Alternative Actions: I. A motion stating that City Council h s determined the FDA approval of GMEF Loan No. 019 for unknown LLC dba EDMA Company was approved without violation of the EDA-GMEF Busine s Subsidy Criteria; therefore, Council supports the decision by the EDA fo loan approval. 2. A motion stating that City Council h s determined the EDA approval of GMEF Loan No. 019 for unknown LLC dba EDMA Company was issued in violation of the G M EF Guidelines; therefore, the Council reverses the decision by the EDA for loan approval. C. Recommendation: The City Administrator recommends Altern tive No. I. The loan approval complies with the EDA-GMEF Criteria and the City's obj ctive and goals. The EDA approval was subject to SBA commitment. D. Supporting Data: . GMEF criteria used by the EDA, prelimina application, and GMEF approval form. . 2 . APPRO AL OF GREATER MONTICELL ENTERPRISE FUNDS B ECONOMIC DEVELO MENT AUTHORITY IN AND FOR THE CITY OF ONTICELLO, MINNESOTA Preliminary Loan Application Approval. YES Loan terms negotiated and agreed upon between the developer, the lending institution, and the EDA Executive Director. LENDER/DEVELOPER/EDA Formal Loan Application and Financial Statement analyzed by the lending institution, BDS, Inc. or City staff. WESTERN BANK. WAYZATA Building and Site Plan Preliminary and/or Final Review. CONTRACTOR - UNLIMITED TRADES Building Permit approval or construction commitment. Loan documents reviewed and/or prepared by the City Attorney. ATTORNEY DAN GREENSWEIG ECONOMIC DEVELOPMENT AUTHORITY APPROV L OR DISAPPROVAL: . LOAN NUMBER: NO. 019 LOAN APPR VED: YES BORROWER: LLC dba EDMA OMPANY ADDRESS: A SOUTH EDEN P RIED8\PPROVED: LOAN AMOUNT: THIRTY THOUSAND DOLLARS AND NO CENTS ($30~OOO.OO) RATE: 4.75% FIXED INTEREST RATE DAT : JULY ~ TERMS AMORTIZED OVER TWENTY lKAlGj wrUi JSA.Ll.OON PA'JlIIIJI.:'RI IN YEAlt FIVE. FEE LOAN n.]!; OF $166 ~ 55344 *"'OTHER (SECOND PAGE) A motion was made by EDA Commissioner DARR!N to (approve -Jni;."'IlI.I~ Greater Monticello Enterprise Funds in the amount of TH RTY THOUSAND DOLLARS AND NO CENTS dollars and cents to developer LLC dba EDMA SEN NAYS: this t day of Seconded by EDA Commissioner DARRIN LAHR. BARB SCHWIENTEK YEAS: BILL DEMEULES KEN MAUS RON HOGLUND CLINT HERBST .MEF disbursed ABSENT: by Check No. EDA Treasurer CITY COUNCIL MAY REVERSE AN EDA LOAN DECr ION WITHIN TWENTY-ONE DAYS OF EOA APPROVAL. TO CITY COUNCIL, AT COUNCIL~ JUL 23~ 2~Ol. \..,..,;. r"'\ .~. \<....) ) \- GMEF Approval Page 2 . ACCEPTANCE OF TERMS I (~hereby accept the terms stated above as approved b the Economic Development Authority in and for the City of Monticello. DATED: **** CHEF NO. 019 is a real estate loan JOB GOALS: 1 FULL TIME JOB AT WAGES BENE 2 FULL TIME JOBS AT WAGES $18.0 $10.00 to $11.99 without benefits. and higher without benefits. FIRST POSITION ON 1996 MILLTRONICS AND 2nd IEN POSITION ON REMAINING EQUIPMENT. CHEF LEGAL FEES RESPONSIBILITY OF APPLICANT . COLLATERAL: PERSONAL/CORPORATE GUARANTEES requires unlimited personal guarantees) OR PER THE EDA ATTORNEY. APPROVAL SUBJECT TO SBA APPROVAL. LOAN BECOMES NULL AND VOID JANUARY 19, 2002 IF FONDS HAVE NOT BEEN DISBURSED. CHEF DOLLARS DISBURSED FROM EDA-AROPLAX HN MONTICELLO LOCATION: 1335 DUNDAS CIRCLE, LEGAL DESCRIPTION: LOT 2, BLOCK 1, OAKWOOD INDUSTRIAL PARK SECOND ADDITION . s p) . . . GREATER MONTICLLO ENTERPRISE 250 EAST B OADW A Y MONTICELLO, MINNESOTA ATION FOR LOAN DA TE ESTABLISHED: ___SOLEPROpmETOR ZIP CODE: ~Y'fl OME) 952- 'fV8- 9'976 EMPLOYER I.D.# L/l- / 8~t/ J OS TION _PARTNERSHIP OWNERSHIP % ~I PROJECT LOCATION: n ) e,,(..k\ EXISTING BUSINESS TOTAL PROJECT COST ESTIMATE: $ PROPOSED USES: REOUEST: AMOUNT OF LOAN $ '3 ", ODe; MA TURITY & TERMS REQUESTED .LJ75'i?b e' t OJ'YJQr1 APPLICANT'S EQUITY E;.....~f'tt1c....+ LOAN PURPOSE ' LAND $ EXISTING BUILDING CONSTRUCTION MACHINERY CAPITAL WORKING CAPITAL 3Qoo~ OTHER TOTAL USES: $ PROPOSED BEGINNING DATE: 41.< ESTIMATED COMPLETION DATE: TITLE TO PROJECT ASSETS TO BE HELD BY: ALTER EGO "7 7:zh- sr- (Address) fJ52) 851- 40fo L ~ "( _ (~e~~o~e ~\, ., _ 4 0 " 0 PROJECT D # OF F.T. EMPLOYEES(within 2 yearsL.1_ D SJ"nt, PARTICIPATING LENDER: IlJ WIJ ,(Contact Person) "\ \.~ \t 4").... ) PRESENT # OF F.T. EMPLOYEES: 2. PROJECTED AVERAGE WAGE PER HOUR: 7- ADDITIONAL PROJECT INFORMATION: APPLICANT SIGNATURE: DATE SIGNED: 7- 5-0 I C, V.,i . ) \..-" . GOALS OF BUSINESS R CEIVING ASSISTANCE Please indicate number of employees at each leve and indicate the corresponding benefit level. Number of jobs created is over the first two years Job Creation Hourly Wage Hourly Value Level of Voluntary Benefits (S) Full-time Part-time (Excl. Benefits) -lL- Less than $7.00 $7.00 to $7.99 $8.00 to $9.99 $10.00 to $1 1. 99 ;2.00 . $12.00 to $13.99 $14.00 to $15.99 $16.00 to $17.99 "2- $18.00 and higher 3.. 50 . H RAagenda\ TI Fprocess \~~-, . ~!be~!fE~"~O~~ July 12, 200 I City of Monticello Economic Development Ollie Koropchak 505 Walnut SI. Suite 1 Monticello, MN 55362 Dear Ollie, Web page: hnp://Www.we.tern-bank.CDm Enclosed is the information that you requested in regard to Pat Jensen's $30,000 loan request. Western Bank approved Mr. Jensen's loan request (co SBA 504 financing and a $30,000 loan from the City of . itment letter included) subject to approval of onticello. In orner not to affect Dim Corporation's leverage positio and to avoid tax consequences for Pat Jensen, the $30,000 should not be made to Dim Corporation. I tead, we are proposing to make the $30,000 loan to the LLC which Pat is forming. The loan will still be uaranteed by Dim Corporation and assets of Dim Corporation will still be used as collateral. Please notify me of any questions that you may have or i there is a problem with the change in the borrower. I will be in the office thru Tuesday, July 17, ut will then be on vacation thru July 24. Sincerely, tJ",rnZk ~ ... ~ ~"~9 Vice President . D IECIED~1E n JUl 13 mU 663 University Avenue S1. Paul. MN 55104 (651) 290-8100 1740 Rice Street Maplewood, MN 55113 (651) 290-7822 7035 10th Street N. Oakdale, MN 55128 (651) 290-7844 2711 N.E. ighway 10 Mounds V ew, MN 55112 (651) 290 7866 3033 University Avenue S.E. Minneapolis, MN 55414 (651) 290-7888 4700 W. 77th Street, Suite 160 Edina, MN 55435 r' '." (612) 857-1707', \._- . . . DIM Corporation Equipment list Est FMV Est Book Value 1995 Charmilles EDM 1996 Milltronics 2000 Holepopper 2000 Haas CNC 1996 Charmilles EDM 2001 Rotary Table $80,000 $18,000 $35,000 $55,000 $60,000 $ 7.000 $64,000 $14,000 $28,000 $44,000 $48,000 $ 5.600 $255,000 $205,000 Western Bank currently has equipment loans totaling $15 ,000 secured with the above equipment. Per bank guidelines, the loan cannot exceed 80% of book val e. Therefore, Western Bank needs to remain in 1 $1 position on $191,000 of equipment. In order to accommodate the financing, Western Bank wi I release its position on the 1996 Milltronics. As collateral for the subject loan, the City of Monticello will ave a first position on the 1996 Milltronics and and a 2nd lien position on the remaining equipment. Q~."I .! \--.' . . . EDA Agenda - 7/19/01 6. Consideration to review for discussion t e relimina dba EDMA Companv. Pat Jensen, App icant. Iication for LLC A. Reference and Backl!round: GMEF Loan Application: See Attachmen A. Request is for an $30,000 real estate loan. Project Summary: Pat Jensen is President and 51 % owner of DMA Company. The company is six years old and leases space in Eden Prairie. The ompany is a small machine shop which does engineering, design, machining, and asse bly. This business will occupy 5,000 sq ft of the proposed 10,000 sq ft metal with rock onto The remaining 5,000 sq ft will house a new business specializing in maintenance f and leased indoor-storage of recreational trailers. The company requires no outside torage. The proposed builder is Unlimited Trades of Rogers, MN. ) 0 y; \ .,. C!. .. The Prospect Team of Kevin Doty, Ron H glund. Brad Barger. and myself visited the existing plant in June. Pat Jensen will be resent at the EDA meeting. The company has a Purchase Agreement ith Carl and Eric Bondhus for a lA-acre parcel to the north of Lake Tool. The project wil create 3 new jobs for the City of Monticello within two years. See Attachment B. USES AND SOURCES Estimated Uses of Funds Construction Costs Land Costs Contingency TOTAL $348 000 $ 75, 00 27 00 $450 000 Estimated Uses of Funds Lender SBA GMEF Equity (20%) $225 000 $175000 $ 30. 00 20. 00 1 r:) r~ . TOTAL $450000 EDA Agenda - 7/19/01 Please review the application for complian e with the EDA-GMEF Business Subsidy Criteria. GREA TER MONTICELLO ENT RPRlSE FUND GUIDELINES PUBLIC PURPOSE CRITERIA: Must co ply with four or more of the criteria listed below, criteria #1 being mandatory. 1. Job Goal: Three new full-time obs to the City of Monticello within two years of the benefit ate. Wage Goal: At least 4.5 of the ne jobs must pay a wage of the higher of$9.00 per hour, or at least 160% of the federal minimum wage, exclusive of benefits, for indiv' duals over the age of 20 during the term of the assistance. See ttachment B. Annual reports are required until terminatio date. Failure to meet job and wage goals require partial or full payment of the assist ce plus interest. . 2. Increases the community tax based: EMV of building is $290,000 Estimated increase of annual taxes is $5,900 (land and building). Use of new class rate. .., J. Factors: To assist a new man facturing business to expand their operations. Other factors for con ideration but no limited to: Nature of business (manufactu ng), no availability of service and product currently, potential a verse environmental effect (permit for furnace), and compat bility to the comprehensive plan and zoning policy (yes, steel ext ior acceptable in 1-2 zone.) 4. Used as a secondary source to suppl ment conventional financing. The GMEF is a secondary SQurce to he Western Bank and SBA. 5. Used as gap financing: Used as gap mancing. It is the intent for the EDA to take a first position on one piece of equip ent and shared position of the remaining equipment. The $30.000 EDA loan ould be used as equity into the real estate construction/real estate loan. It was the opinion of a local lender, this was a good use of gap financing dollars. It enc uraged the use of the loan program verus the . 2 . . . EDA Agenda - 7/19/01 use ofTIF. 6. Used to assist other funds: In a dition to the GMEF, other funds obtained are lend rs, SBA and equity. GREA TER MONTICELLO EN ERPRISE FUND POLICIES 1. BUSINESS ELIGIBILITY Industrial business: Yes. Located within city limits: Yes, Zoned -2. Credit worthy existing business: For etermination by Vonda Wurzburger of Wes em Bank, Wayzata, MN. (Bank Commitment) $10,000 loan per each job created. $10,00 X 3 = $30,000. Or $5,000 per every $20,000 increase in p operty market valuation, whichever is higher. $290,000 divided by $20,000 is 14.5 X $5000 = $72,500. Criteria: $30,000 II. FINANCING METHOD: Companion Direct Loan: All such 10 s may be subordinated to the primary lender if requested b the primary lender. The GMEF is leveraged and the low r interest rate of the GMEF lowers the effective int rest rate on the entire project. Criteria: The GMEF takes a first positi n on the 1996 Milltronics and 2nd lien of the remaining equipment. Attachment C. III. USES OF PROCEEDS: Real property development. IV. TERMS AND CONDITIONS: Loan Size: MaximLlm not to exceed 5 % of the remaining revolving loan fund balance. Approximate bal ce July 13, 2001, $560,000. Request: $30,000. Criteria: $30,00 .' Remaining balance thereafter, $530,000. ... .J i) S \) . Leveraging: Proposed Loan Term: Criteria: . Interest Rate: .. ('.. c.., 10 \..t. Criteria: Loan Fee: Criteria: EDA Agenda - 7/19/01 Minimum 60% private/publi non-GMEF Maximum 30% public (GM F) Minimum 10% equity of ED loan Lender $225,000 (500;0) SBA $175,000 (38.. %) GMEF $ 30,000 (6.60 ) Equity 20.000 4.40 >10% EDA TOTAL $450,000 (99., %) Real estate property maxim I of 5-year maturity amortized up to 30 years. Balloon payment at 5 ears. '}-O "'2f- As stated above. Fixed rate not less than 2% b low Minneapolis prime rate. Prime rate per National Bank of Minneapoli on date of EDA loan approval. Prime rate July 19,2001. Minimum rate is fix d rate. Minimum fee of $200 but notto exceed 1.5% of the total loan project. Paid by applicant to the EDA ithin five working days after City Council approval of GMEF loan. Non refundable. Loan fee may be incorporated into project costs. EDA retai s the right to reduce or waive loan fee or portion of loan fee. Minimum fee of $200 or $45 , due and payable not later than July 30, 2001. Prepayment Policy: No penalty for prepay ent. Deferral of Payments: 1. Approval of the ED membership by majority vote. 2. Extend the balloon f unable to refinance, verification letter from two lending instit tions subject to Board approval. Late Payment Policy: Failure to pay principa or interest when due may result in the loan being immediately call d. ~' 'f . 4 ,-. ''('' .....'~.J "'I ,.' ) . Interest limitation on guaranteed loans: Assumability of loan: None. Business equity requirements: EDA Agenda - 7/19/01 Not applicable. Subject to type of loan; Board of Directors will dete ine case by case, analysis under normal lend ng guidelines. Collateral: Personal and/or corporate uarantees (requires unlimited personal guarantees) as per the OM F attorney. Non-performance: An approved GME loan shall be null and void if funds are not drawn upon or disb sed within 180 days from date of EDA approval. July 19,2001 EDA approval-loan bee mes null and void January 19, 20()1)- Non-performance extension: Not applic ble. . Legal Fees: Responsibility of the GME applicant. B. Recommendation: Recommendation is to review this information prior to the EDA meeting for discussion and potential questions. Consideration to approve or deny GMEF Loan No. 019 is the next agenda it m. c. SUDDortin~ Data: Preliminary GMEF application an job and wage-level goals. . 5 ".. (---. . . . sc, Council Agenda - 7/23/01 Consideration of amendin J Title 7 Cha t r 2 Ci violatin rovisions ofthe water ordinanc . (R W) A. REFERENCE AND BACKGROUND: B. for With the Council's recent adoption of emerg ncy regulations to conserve water by implementing an odd/even watering restricti n, staff has noticed that our sewer and water ordinance does not specifically indicate wha penalties would apply to property owners who violate these emergency regulations. Whi Ie t is assumed that violations of our city code could result in a charge of a misdemeanor, it has been the recommendation of the City Attorney that each section of our ordinance s. ecifically indicates what the penalty would be fiJr any violation of a particular ordinance se tion. As a result, it is recommended that the ordinance amendment be adopted indicating hat any violation of our sewer and water ordinance could result in a charge of a misde leanor and appropriate fine allowed hy law. City stall will also be researching through th League of Minnesota Cities and by reviewing ordinances of other communities whether ad itionallanguage changes should he implemented to streamline the process of establishing wat ring bans in the future. Additional ordinance amendments may be recommended that cIari y what exemptions, if any, will be allowed and a process for requesting exemptions. ALTERNATIVE ACTIONS: 1. Adopt the ordinance amendment as p oposcd clarifying the estahlishment of penalties that would apply to any violation of 0 r water and sewer code. C. STAFF RECOMMENDATION: It is recommended that the ordinance amendt cnt be adopted as proposed. D. SUPPORTING DATA: Copy of ordinance amendment. . . . ORDINANCE AMENDMENT NO. 362 City of M nticello Wright Coun , Minnesota AN ORDINANCE AMENDING TITLE 7, CH PTER 2 OF THE MONTICELLO CITY ORDINANCE TIlE CITY COUNCIL OF THE CITY OF MONT CELLO HEREBY ORDAINS AS FOLLOWS: Section 1: Title 7, Chapter 2 is amended by ad ing the following: Section 7-2-22: PENALTY: Any pe son violating any provision of this ordinance is guilty of a misdemeanor and upon c nviction shall be punished not more than the maximum penalty for a misdemean r as prescrihed by state law. Section 2: This ordinance shall become cffecti e from and after its passage and publication. Adopted by the Monticello City Council this 23rd d y of July, 2001. Roger elsaas, Mayor ATTEST: .~._~,. ",,- Rick Wolfsteller, City Administrator 5~ . . . Council Agenda - 7/23/01 7. A. REFERENCE AND BACKGR UND: The City Council is again asked to adopt, n assessment roll for utility billing accounts which are delinquent more than 60 days a d to certify the assessment roll to the County Auditor f()!" collection on next year's real estate taxes. The delinquent utility accounts that are in luded with the agenda are accounts that are at least 60 days past duc and include all new delinquents from the last time wc certified them. In addition to the delinquent amoUl t, the Council also previously approved the establishment of an administrative fee of 50 per account that is added to each delinquent assessment. The amounts shown on the e closed delinquent utilities list in elude the additional $50 administration fee for the preparation of the assessment roll. It is recommended that the delinquent acc unts be put on an assessment roll for certification at an interest rate of 8lYo as allowed by state statute. As in the past, if any accounts are paid within 30 days after the adoption of the assessment roll, they can be paid without the additional interest. After 30 days, payments will be charged interest and can be accepted up to November 30,2001. B. ALTERNATIVE ACTIONS: 1. Adopt the assessment roll for the elinquent charges as presented. 2. Based on public hearing input, adj st the assessment roll as required, C. STAFF RECOMMENDATION It is staff recommendation that the Counc ) adopt the assessment roll as presented. All of the accounts are at least 60 days past due nd have been given proper notice of this assessment hearing and ample opportunit to pay the accounts in full. All utility accounts were notified that there would be an addit onal $50 administrative fee attached to each outstanding balance if the account was no paid by 4:30 p.m. on July 16,2001. D. SUPPORTING DATA: . Copy of resolution adopting asses ment roll Complete) isting of delinquent accounts to be certified, . . . . NTICF:LLO NO. 2001-49 RESOLUTION ADOPTI G ASSESSMENT ROLL FOR DELINQUENT l TILITY ACCOUNTS WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the prop( sed assessment fix delinquent utility account charges, NOW. T/IEREFORE, Bf( IT RESOL VED BY TH ('ITY COUNCIL OF MONTlC'ELLO, MINNESOTA: I, Such proposed assessment, a copy of whi'h is attached hereto and made a part hereof, is hereby accepted and shall constitute the s ecial assessments against the parcels named herein, and each tract of land therein incl ded is hereby found to be benefitted by the assessment levied against it. Such assessment shall be payable in one (1) annual installment payable on or before the first Monday in January 2002 and shall b ar interest at the rate of 6 percent per annum from the date of the adoption of this asse, sment resolution. To the first installment shall be added interest on the entire asses ment from the date of this resolution until December 31,2002. 2. 3. The owner of the property so assessed n1' y, at any time prior to certification of the assessment to the county auditor, pay the hole of the assessment on such property with interest accrued to the date of paym nt, to the City Treasurer, except that no interest shall be charged if the entire asse sment is paid within 30 days from the adoption of this resolution. 4. The City Administrator shall forthwith tr' nsmit a certified duplicate of this assessment roll to the county auditor to be extended n the proper tax list of the county, and such assessment shall be collected and paid ov I' in the same manner as other municipal taxes. Adopted by the City Council this 23tld day of Jul ,2001. ATTEST: Royer I3elsaas, Mayor Rick Wolfsteller, City Administrator l L . . . " 0' " ~ "' " ~ " "~ J:.: .~ " s " " .~ .c< " " "' [J " \"~ " 6< .~ C" '" rn "' r1 " 0;:'; '" '" ",0 S~ '" 0 o ~ "' ~ ?-1. ~ ~ : ~ '" '" r,l m CO H (:-.110-1 H U1 ~ ~ ~ ~ 0, 0:: 0-1 "' '" ~ ~ '" w ~ ;;.'\ ~ o. ~ ~rl "' c, H Ul ~ '-' ~ CO ;'j ~ 0: ~ "' " " ,:t, (i uJ ,. j " M f'l " '" ~. ~~ {:~. 6 t1 o ~ l'i " ~~ ~ "' CO ~ o ., "' '" '" c) ~ ~ ~ ~ ~ . . . L~ [" [0 g; [" "' 0: r1j '" ,., ,=r: "' ~ :< '" o ~ ,< " " [" E-: n:: '" U ~ "' ~. ~ '" G ;:l " CO C, ,:, [,] r1 ,-' D " "' " ~ o ,-. 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" ,:t, " '-' '" ,., m "' ," ,-- a c', ,-- 'D ," '-' ., ,." ;J; '" c, " cr, a, '" 'D '" " '" " " (I, ,', c a '" D ~ 'D ,-- ," ,- '" " " (~J ,', ,', Co a e-, '" '" " ,-- 0 6 ~ ,', '".' 0 Co '" . 1< c, ~ c., f',l .' " d ., ., ,".i '" 8 "' "' "' "' "' '" "' ,.n '" " '" ,., '" '" '" '" '" r". "' '" 0 c 0 ,', c' c' c, 0 L' 0 D .0 0 ",1 cO " '" L:.\ a '" c" " '<, "' c., '.' "" B q' '" '" r--": ,:[: Z C, "' , I '" U ~": C, C 0 ,., " ..J: ., "' "' 'n ,-- c- 1 c, '" '" "" '" ~I .' ~ ~ (.t; ~ fi c-- ~ n 0 b-' " . . . Council Agenda - 7/23/01 8. C'onsideration of ado )tinIJ assessments for CSAll 75 Pro' cet No. 98-17C Kean and Bondhus Properties) (R W) A. REFERENCE AND BACKGROUND: When the original assessment hearing was co 1ducled last fall !lw the CSAII 75 improvement, assessments for the Hondhus Tool property m d the Kean parcel owned by Ken SChwat1z and Dean Hoglund were delayed until an apprais,-I could be obtained fl)f each parcel to support the proposed assessments. The Kean of Montiee 10 parcel had been proposed to be assessed $55.671, a reductIon from the $59, 883 initial assessment and the Bondhus parcels were proposed to be assessed $52,484, a reduction from the original $63,868 proposed for the manufacturing facility parccl and a separate 3,898 assessment was proposed for the vacant triangular property lying between I lart Boule anI and County Road 75, that had been reduced Ii'om an original $5,295 assessment amount. Assessment Review - Bondhus Property The recently completed appraisal report look d at both parcels owned by John I3ondhus. the vacant triangular property proposed to be ass ssed $3,898 and the main manufacturing parcel proposed to be assessed $52.484. To summ rize, the appraisers did not feel that the vacant triangular parcel could be used for any buildi 19 purpose other than possibly a parking lot, and did not feel that the property would benefit b the improvements constructed. As you may recall, the City had initially assumed that thi property could be developed into a parking lot that could hold up to 50 cars, and that is the r ason why it was proposed to be assessed the $3.898. If the Council chooses to not assess this property because it is not considered buildable at this time. it could reserve the rig 1t to assess the property in the future if the property is proposed to be used in some f~tsh' on other than as vacant property. In regards to the main manubcturing facility the appraisal report indicates an increase in value to the property after completion of the impro ements of $80,000, well above the $52,484 proposed assessment. It should be noted tha the appraiser did indicate that since the City had not assessed 100% of the cost of the improvements in its original $52.484 assessment, the City could increase the proposed assessment by t e amount that had originally been proposed to be assessed against the vacant parcel and combi 1e it into one new assessment for the manul'acturing facility. While this would still place the assessment under the amount of the increase noted or $80,000. it is not recomme ded that this approach be taken. In summary. the appraisal report supports th proposed $52.484 assessment, and it is recommended that this assessrnent be adopte i as proposed. I n regards to the vacant parcel of $3.898. it is recommended that this assessm - 11t be deferred indefinitely if the property remains as undeveloped vacant land. If the property is converted in the future to some other use, the assessment could be reinstated at that time. . Assessment Review - Kcan of Monticello P rcel Council Agenda - 7/23/01 The second appraisal ohtained by the City wa' ordered to support a proposed $55,671 assessment to the Kean of Monticello parcell)r the frontage road improvement that was constructed as part of the CSAII 75 project. In reviewing the appraisal report. there are a couple of issues the Council needs to conside . First of all, the appraisal report, on the surface, seems to indieate that an increase in value tot' ling $11,000 occurred because of the improvement. The Council needs to be awar that the $11, 000 assumes that the property owner was not compensated f(Jr any of the rig 1t-of-way casement that was purchased hy the City and that the property owner simply ende up with 15,320 square feet less than before the improvement was initiated. As you may ree II, the City actually acquired the right-of-way for $83,000 based on a signed agreement from K n Schwartz and Dean Hoglund that indicated the City would he paying this amount for the eas ment with the understanding that half of this cost ($41,500) would be assessed to them as part l' the assessment roll adoption. I f you add the $11,000 noted in the report and the $41,500 n ted in the signed agreement from the property owner, this would amount to an assessment 0 $52,500. The appraisal report also supports this amoun of assessment by indicating that the property after the improvement has increased in value y $.75/sq. ft. This would amount to an inerease in value for the rernaining property outside of the right-of-way easement of$50J33. In either case, the appraisal supports an increase in val e of at least $50,333 or $52,500, assuming the Council intends to have the property owner h nor its signed agreement. . One of the appraisers, Rod Dragsten, along w th the Mayor and myself recently met with Ken and Dean to discuss the appraisal in further d tail and to see if a compromise could be reached. The property owners have initially indicated willingness to consider an assessment of around $20,000, tar below the proposed $50,000-$52000 amount we feel the appraisal report supports. During our meeting, it was noted by the prop rty owners that possibly 55 leet of the total 325 feet assessed fiJr the frontage road may bclon to the adjacent property owner and i r the City was to prorate this cost f(Jr the 55 feet f()f the improvement, including that share of the additional right-of-way costs, $9,155 might b a reasonable deduction from their proposed assessment. I n an attempt to eompromise, a offer was proposed to the property owner that the Council rnight consider using the lower v, luation amount of $50, 333 less the $9,155 attributable to the adjacent property and recon mend an assessment totaling $41,175. While I believe that the appraisal report supports eithe' the $.75/sq. n. increase in their property value or supports a $52,500 assessment, if we expec the property owner to honor their written agreement. I also believe the $41,175 adjuste( assessment would be a fair approach to settling the disagreement. The $9,155 reduction coul- be considered by the City as the anlount that is henefitting other property owners along the 1'1' mtage road that also have aecess to this new intersection. At this point, there has not beel an agreement hy the property owner to the reduced anlount. . . B. ) ~S G~ Council Agenda - 7/23/0 \ AL TERNATI VE ACTIONS: Bondhus Assessment \. The Council could adopt the assessm nt roll as proposed for the Bondhus parcel in the amount of $52,4S4.63 and defer the a sessment of $3,898.56 against the triangular parcel until such time as the proper is developed. The above recommendation is suppo ed by the appraisal report. 2. The Council could adopt an assessme t roll of $56,383.19 to be levied against the primary parcel. which is the total of t 0 assessments previously proposed. Again, this would be supported by the increase it value from the appraisal, but would be an increase in the original amount propo ed on the assumption that not all of the improvement eosts were originally as essed. C. STAFF RECOMMENDATION: . B. . C. It is the recommendation of the City Admini tTator that the assessment roll be adopted as outlined under Alternative # I with the $3,89 .56 assessment being deferred indefinitely unless the property is developed in some fashion. ALTERNATIVE ACTIONS: Kean of Monticello Assessment I. The Council could adopt an assessm nt roll totaling $52,500. lJ nder this alternative, the assessmen would be supported by the $ I 1,000 noted in the appraisal report as an increase in vall e along with the signed agreement indicating an additional assessment of $41 ,500 for )ne-half of the right-of-way. The Council could propose an asseSS1ent totaling $50,333. y"Ao,J ... ~.~ 2. oJ. f.9'" ~ /(0 0 I This amount would be based on the a praisal' s indication of the property increasing in vaJue by $.75/sq. ft. times the remain ng 67,1\ I square feel. 3. The Council could adopt an assessm nt roll totaling $41,178. This assessment amount is arrived at by taking alternative #2 ($50.333) and deducting prorated share tiJr the 55 feet of front Ige road irnprovement that is abutting the adjacent parcel f()I' $9,155. STAFF RECOMMENDATION: Because of the unique arrangement made be ween the City and the property owner regarding . . . Council Agenda - 7/23/0 I the anlOunt paid for the right-of-way easemen , adoption of this assessment roll becomes more difficult and also created more difficulties for the appraiser in establishing before and after market values. Regardless of how you analy ."e the appraisal report the report seems to indicate an improvement value of around $50 000, but if you adjust the assessment for some of the costs that may be attributable to other pro erties along the frontage road, alternative #3 may be a reasonable comprOlnise. (fthe City Eng neer can confirm that an additional $9,155 could be attributable to the adjacent parcel, it is rec mmended that alternative 1/3 be adopted. If the City Engineer indicates that the appropriate a lOunt was calculated as the assessment against the Kean parcel, it is recommended that alten ative #2 be adopted. D. SUPPORTING DATA: . Assessment review summaries from ovember, 2000. Summary pages from appraisal report. · Proposed assessment summaries. . . en -...,J ~ f;fl~f;fl ~~g; ~.D W lJl' .p ;:Il ts .::@8 . ~ Ul Ul 6 w -...,J b o ~ o ~ o ^ <1> 0) ::J o ....., <CD 0) 0 () ::J 0) Q. ~E ""0 ~lJl III C- o g. ~::J s: o ~ (')' ~ o f;fl Ul Ul m -...,J ~ (j) (j) .-. o <1> CD ..., ..., CD Q. <:fl Ul o w w w o o ::J Q. <1> :::h ::J -fA &,0 :s8 Ul Ul , o ~ ~ I o o o o (j) o s:~ lO'6-. ""OE ro .lJl ::J ....... c:.... -"'-0 ::s ::J -{fl w en (0 en Ul (j) f;fl o o o Ul Ul I o ""0 0) o l!!. ~ I o o o o w ~ f;fl Ul I'V -f>. en -f>. m w f;fl en o o o o o o Ii')> E:g III ..., g 92. 5".'~ fl :;0 CD CD 0)"8 l(l ;:J. f;fl Ul I'V -f>. en -f>. m w :;0 .'"0 ~ a (j,' .;0 CD o Q. g: )> Q.~ ~ "'tI ;:0 o "'tI o en m c )>"'tI en" ,-enO s:::m'- '<- en !!! n en "en t>J3,:-l)> ~wmZ:I: t>JzO...... o-l~<.n ~;:O~ O~ ,...... ,n ;:0 m < ~ o Z en ~ J '. HEARTLAND APPRAISA , Inc. P.O. Box 312 Monticello, Minnesota 55362 January 19, 2001 Mr. Rick Wolfsteller City Administrator City of Monticello 505 Walnut Street, Suite 1 Monticello, Minnesota 55362 Re: Limited Market Value Appraisal f the contributory value resulting from the public improvement project done in conjunction with the County State Aid Highway #75 Improvement Proj ct 98-17C on the Kean of Monticello property, located at 1511 East B oadway, in the City of Monticello, Wright County, Minnesota. . Dear Mr. Wolfsteller: In accordance with your request and au horization, we herewith submit our valuation and evaluation of the referen ed property. We inspected the subject and neighbor ood on January 19, 2001. All of the necessary investigation and analysis w s completed by the undersigned. The purpose of the appraisal report is to estimate the Market Value of the fee simple interest of the subject property before a d after the installation of public improvements. The appraisal report is prepared in acc rdance with the 2001 Edition of the Uniform Standards of Professional App aisal Practice (USPAP) of the Appraisal Foundation. We have invoked the Dep rture Rule of USPAP by not completing a Cost Approach Method or an Income pproach Method in this appraisal. The appraisal represents a Limited App aisal communicated to you via a Restricted Appraisal Report. The signifi ance of this reporting method is that there is additional data contained in our file memorandum which may lend support to our conclusions of value bet: re and after installation of the public improvements. . s . . ;"~,,' "~ '. ' :. ' ; ',' '. .' - i , i - I I II n . II ~ II - . II '-- -I a ".- - Mr. Rick Wolfsteller January 19, 2001 Page two As a result of our analysis and concl sions contained in the attached report, we have arrived at an opinion of the Ma ket Value of the fee simple interest of the subject: CURRENT MARKET VALUE OPINION (LAND ONLY) BEFORE INSTALLATION OF PUBLIC IMPROVEME TS AS OF January 19, 2001 : TWO HUNDRED FOURT EN THOUSAND DOLLARS ($ 2 4,000) CURRENT MARKET VALUE OPINIO (LAND ONLY) AFTER INSTALLATION OF PUBLIC IMPROVEME TS AS OF January 19, 2001: TWO HUNDRED TWENTY FIVE THOUSAND DOLLARS ($ 2 5,000) CURRENT OPINION OF ENEFIT TO THE SUBJECT AS OF Jan ary 19, 2001: ELEVEN THO SAND DOLLARS ($ 11 ,OOO) The valuation is contingent upon th limiting conditions included in the report. If we can be of further assistance in this matter, please contact us. ~ Rodney ragsten Minnesota Appraiser License #400 987 Certified Real Property Appraiser ~~~. Charles R. Glassing, MSA, AAR President Minnesota Appraiser License #400 999 Certified General Real Property Appraiser CRG:crg File# BD0590A 1.WR1 y I J J. VALUATION SALES COMPARISON APPROACH Adjustments were made to the comp rable land sales as indicated in the following table. ) UNADJ. SALE ADJ. CUMM. ADJUSTED COMPo SALE SIZE! PRICE! DATE PRICE! SIZE UTIL ADJ .I PRICE/ NO. DATE SQ.FT. SQ. FT. ADJ. SQ.FT. ADJ. ADJ. SQ. FT. SQ.FT. 6/00 382.504 $2.07 +5% $2.11 +30% +20% +50% $3.17 2 10/00 273,418 $0.91 +2% $0.93 +19% +60% +79% $1.66 3 12/98 74.385 $2.35 +19% $2.80 -1% 0% -1% $2.77 4 12/99 47.885 $2.26 +10% $2.49 -4% 0% -4% $2.39 STATISTI AL INDICATORS MEAN $2.50 MEDIAN $2.58 $1.66 to $3.17 $2.60 i Table 22 - Land Sales Adjustm nt Grid - Before Improvements . . HEARTLAND APPRAISAL, Inc. 82 ~ VALUATION SALES COMPARISON APPROACH . ,',::. ';::'""., ',:','. .'.,,:'.; ,.',,,, ""," .. LANDSAL.ES ADJUSTMEN UNADJ. SALE ADJ. CUMM. ADJUSTED COMPo SALE SIZEI PRICE! DATE PRICEI SIZE UTIL. ADJ.I PRICE! NO. DATE SQ. FT. SQ.FT. ADJ. SQ.FT. ADJ. ADJ. SQ.FT. SQ. FT. 5 5/98 30.332 $5.08 +24% $6.30 -5% 0% +5% $5.99 6 9/98 176.958 $1.79 +21% $2.17 +10% 0% +10% $2.39 7 7/99 73.368 $3.80 +14% $4.33 -1% 0% -1% $4.29 8 7/98 21.780 $9.95 +23% $12.24 -6% 0% -6% $11.51 STATISTIC L INDICATORS MEAN MEDIAN " M OPINION $6.05 $5.14 $2.39 to $11.51 $3.35 II RANGE OF SALES Table 23 - Land Sales Adjustme t Grid - After Improvements Adjustments were based on the followin factors: . SALE DATE DIFFERENTIAL The sale date adjustment is bas d on 9 percent per annum, which is the historic inflation rate. This adjust ent is also supported by pairing sale #1 with sale #6. SIZE DIFFERENTIAL I paired sale #1 with sale #4 an sale #5, which supported a 1 percent adjustment per 10,000 square fe t as the size adjustment. VISIBILITY ADJUSTMENT After considering sale date and si e adjustment we were unable to support an adjustment for visibility. . HEARTLAND APPRAISAL, Inc. Cf 83 QUALIFICATIONS . LOCA TION/ZONING ADJUST ENT Each sale has a similar zoning nd we were unable to support a location adjustment with paired sales. UTILITY ADJUSTMENT Based upon the information tha was narrated, the comparables support a value of $2.60 per square foot b fore the improvement project and $3.35 per square foot after the improvement project. The contributory value of the improvement is calculated as f Hows: assessment for sewer and water that was he cost was divided by the site square by the sales price to calculate the utility We based this adjustment on th indicted by the comparables. footage. The result was divide adjustment. RECONCILIATION OF LAND '. Before Project 82,431 sq. fT. $2.60/sq. ft. = $ 214,321, Say $ 214,000 After Project 67,111 sq. fT. $3.35/sq. '11. = $ 224,821, Say $ 225.000 Contributio of Improvements = $ 11,000 TOTAL CONTRIBUTION OF IMPROVEMENT $11,000 1 1 I I I I I. I HEARTLAND APPRAISAL. Inc. 84 ~ . . . 350 Westwood ake Office 8441 Wayzata Boulevard Minneapolis, N 55426 B.A. Mitrelsteadt, P.E. Bret A. Weiss, P.E. Peter R. Willenbring, P.E. Donald W. Sterna, P.E. Ronald B. Bray, P.E. 612-541 ~ 800 FAX 541 ~1700 & Associates, Inc. July 21,1999 Mr. Dean Hoglund Mr. Ken Schwartz Kean of Monticello, Inc. PO Box 1274 Monticello, MN 55362 Re: CSAH 75 Improvement S.A.P.86-675-12 City of Monticello, MN Right-of- W ay Acquisition/Hart Boulevard Extension WSB Project No. 1109.10 REVISED OFFER Dear Mr. Hoglund and Mr. Schwartz: Several meetings have been held to discuss the of er proposed to you by letter on June 23, 1999. This otfer proposed compensation in the amount of $3 ,100 for a parcel estimated at 16,049 square feet. Based on those discussions, I have had several op ortunities to further discuss the value of the property regarding the appraisal completed for th City of Monticello. Relative to your concerns and the facts presented at our meetings, the appraiser, Ms. Julie Jeffrey-Schwartz, stated that the actual square foot value can easily be justified at $3 per quare foot and possibly up to a value of $4 per square foot. Our discussions also included the co mercial property adjacent to the intersection of CSAH 39 and CSAH 75 in the northeast comer at is currently listed in the amount of $5 to $7 per square foot. In discussions with the developer of is parcel, they have agreed that the amount is somewhat speculative and will probably not recei e an offer in that amount until after the CSAH 75 improvements have been completed. The City of Monticello, in conjunction with the right County Highway Department, has pursued the improvement of CSAH 75 for several reasons These include the need for improved capacity due to substantial traffic increases on CSAH 75 both t day and in the future, CSAH 75 currently lacks left turn accommodations and access control, alo g with the City's desire to improve the aesthetics and urban nature of this roadway. The extension fHart Boulevard as a frontage road connection to the future 7th Street intersection in the front porti n of your property promotes future development with safe access at a proposed signalized intersec ion with left turn channelization. Upon further review of the existing plat and doc ents on file with the City of Monticello, it was noted that there is an existing 12-foot drainage utility easement within the property boundary, along with a permanent easement on the east end of the property by the existing connection of Hart Boulevard in the dimensions of 17.81 feet x 46.0 feet, or 821 square feet (see attached documents). The amount of permanent easement for roadway urposes has now been recalculated to an area of M inn e a pol i s St. C Iou d F:IWPWINI1109,101072199.dh&l<s,wpd Infrastructure En 'neers Planners EQUAL OPPORTU ITY EMPLOYER ~ . . . Mr. Dean Hoglund Mr. Ken Schwartz Kean of Monticello, Inc. July 21, 1999 Page 2 15,320 square feet. Mr. John Simola has also requ sted that the drainage and utility easement be perpetuated, and this amounts to a 3,200 square foo easement. On July 15, 1999, the City of Monticello made an offer of $76,600 for the perm ent roadway easement and $6,400 for the utility and drainage easement, for a total of$83,000. After further discussions with City Administrator ick Wolfsteller in a meeting held on Tuesday, July 20, 1999, the City of Monticello revised their ffer on the permanent easement to approximately $5.42 per square foot. This amounts to an offer of 83,000, with the utility and drainage easement being replaced in-kind at no cost. Verbal agreeme t was reached upon further discussions between the City and yourselves. The City of M nticello will prepare the necessary purchase agreement for closing within the next two weeks. ean of Monticello, Inc., is responsible for obtaining a release from the mortgage company. The assessment will proceed as previously discuss d with an assessment to the property of 50% of the roadway, a portion of the storm water improve ents, along with an assessment of 50% of the right-of-way cost to this parcel. Again, this will be handled at an assessment hearing anticipated to be held in the fall of 1999. If this offer is acceptable, please sign the following page acknowledging the terms of the negotiation. Please do not hesitate to call me at (612) 277-5787 if you have additional concerns and/or questions. Sincerely, WSB & Associates, Inc. ~.JAIf r'~ XJ.-. ~f.- onald B. Bray, P.E. 1 Project Manager Encl. RBB/kd c: Rick Wolfsteller, City of Monticello John Simola, City of Monticello Bret Weiss, City Engineer, WSB & Associ tes, Inc. Dennis Dalen, Olson, Usset & Weingarden Project File No. 1109.10 6 F:\WPWIN\1109,10\072199-<1h&k$.wpd . . . Mr. Dean Hoglund Mr. Ken Schwartz Kean of Monticello, Inc. July 21, 1999 Page 3 CITY OF MONTICELLO REPRESENTATIVE: KEAN OF MONTICELLO, INe.: ( -~ 4(/ ZM~~-f 'Ken SChwart ~ ()J~ Date 7IZ~/9 ? WITNESS: ~?7Yit C}~j 8' F;IWPWINlll09.101072199-dh&ks.wpd . HEARTLAND APPRAISAL, Inc. P.o. Box 312 Monticello. Minnesota 55362 January 19, 2001 Mr. Rick Wolfsteller City Administrator City of Monticello 505 Walnut Street, Suite One Monticello, Minnesota 55362 . Re: Limited Market Value Appraisal 0 the contributory value resulting from the public improvement project done n conjunction with the County State Aid Highway #75 Improvement proje 98-17C on the Bondhus Tool property, located at 1400 East Broadway S reet, in the City of Monticello, Wright County, Minnesota. Dear Mr. Wolfsteller: In accordance with your request and au horization, we herewith submit our valuation and evaluation of the referenc d property. We inspected the subject and neighbor ood on January 19, 2001. All of the necessary investigation and analysis w s completed by the undersigned. The purpose of the appraisal report is to esti ate the Market Value of the fee simple interest of the subject property before a d after the installation of public improvements. The appraisal report is prepared in ace rdance with the 2001 Edition of the Uniform Standards of Professional App aisal Practice (USPAP) of the Appraisal Foundation. . The appraisal represents a Limited App aisal communicated to you via a Restricted Appraisal Report. The signi cance of this reporting method is that there is additional data contained in ou file memorandum which may lend support to our conclusions of value be~ re and atter installation of the public improvements. ~ . Mr. Rick Wolfsteller, City Administrator City of Monticello January 19, 2001 Page two As a result of our analysis and conclusio s contained in the attached report, we have arrived at an opinion of the Market alue of the fee simple interest of the subject: CURRENT MARKET VALUE OPINI N BEFORE INSTALLATION OF PUBLIC IMPROVEMENTS S OF January 19, 2001: TWO MILLION TWO HUNDRED FI THOUSAND DOLLARS ($ 2,250,0 0) CURRENT MARKET VALUE OPINI N AFTER INSTALLATION OF PUBLIC IMPROVEMENTS S OF January 19, 2001: TWO MilLION THREE HUNDRED T IRTY THOUSAND DOLLARS ($ 2,330, 00) CURRENT OPINION OF BEN FIT TO THE SUBJECT AS OF January 19, 2001: . EIGHTY THOUSA D DOLLARS ($ 80,0 0) The valuation is contingent upon the lim ting conditions included in the report. If we can be of further assistance in this matter, please contact us. Rodne Dragsten Minnesota Appraiser License #400298 Certified Real Property Appraiser I l 1. I I ~f(. Charles R. Glassing, MSA, AAR President Minnesota Appraiser License #400099 Certified General Real Property Apprai er CRG:crg File# FB0584A 1.WR 1 g ~ Nov 21 00 02:35p . . . 320-252-3100 CSAH 75; City Project 98- 7C Assessment Review Bondhus, John R. REV TRUST 1349 Hart Boulevard, Monticello MN 55362 Parcel No.155-0 11-000060 Map No. 13 Curb & Gutter Assessment Storm Sewer Assessments Watennain Assessment Total}\ssessment $3,898.56 $1,396.82 SO $5,295.38 Mr. Bondhus questioned the added value to this parcel based on what he felt was a non- developable parceL This parcel is triangular in shape and is approxi ately 700 feet in length abutting both CSAH 75 and Hart Boulevard. The width of s parcel on the west end is approximately 90 feet in depth. For assessment purposes I had determined that pproximately 300 feet of this parcel was developable based on the dimensions required fi r a parking lot and therefore limited the curb & gutter assessments to 300 L.F. The storm sewer assessment has been dropped om this parceL The drainage from this parcel drains toward Hart Boulevard and any fu e storm sewer improvements on Hart Blvd. would be assessed to this parceL I have laid out a parking configuration on this p eel and determined that approximately 50 parking spaces could be constructed on this p eel and therefore feel that the assessment of $3,898.56 is justifiable. Revised assessments as follows; Curb & Gutter Assessment $3,898.56 Stonn Sewer Assessments SO Watermain }\ssessment $0 Total Assessment 53,898.56 1 p.3 'if 'iov 21 00 02:35p 320-252-3100 p.4 . CSAH 75; City Project 98-17 Assessment Review Bondhus, John R. REV TRUST 1349 Hart Boulevard, Monticello MN 55362 Parcel No.1 55-011-000031 Map No. 24 Curb & Gutter Asst:ssment Storm Sewer Assessments Watermain Assessment Total Assessment $13,670.95 $ 13,557.41 $ 29,012.57 $63,868.47 Mr. Bondhus questioned the added value to this p e1. This parcel is the rIl;Bin building site for the Bondh Corporation. This project included the addition off cufb & gutter to the entire length f this parcel and added a protected left turn lane from the east at the elltranCt; to the loadi g dock area for the Bondhus Corp. I .J Watermain was installed to provide service to the ain building. Bondbus Corp. was previously served by a private well. The watermai installed will provide adequate flows . for production and fire protection purposes. The watermain assessment was calculated based 1 12 1.f. of 6" watermain. The installed watermain was a 12" diameter, which provides sub tantially greater supply and fire protection capabilities than a 6" watennain. The total length of the watermain was assessed to e Bonhus Corp. because the properties directly across from this parcel already ad water service. It has been decided that only ~ the cost to install a 10" watermain according to the City of Monticello assessment policy at a rate of$30.13 .F. or $15.07 to Bondhus Corp. per foot. This will reduce the watennain assessment fr m $29. 012.57 to $ 23,553.71 for a reduction of $ 5,458.86. Based on a site map provided by the Bondhus Corp ration, to the City of Monticello the actual frontage of the Bondhus Corporation is 1141 17 feet and the area of the parcel is 173,479.7 S.F. Previously the front footage and ar a were taken from the County maps. The watermain, curb & gutter and storm sewer asse sments have been revised to reflect the changes in front foot and area calculations. . The revised assessment will be as follows: Curb & Gutter Assessment $14,829.73 Storm Sewer Assessments $ 14,121.19 Watennain Assessment $ 25,533.71 Total Assessment $ 52,484.63 <g . 25 . . Nov 21 00 02:36p r 320-252-3100 CSAH 75; City Project 98-17C Assessment Review Pill Owner 155-037-001010 Kean of Monticello Address PO Box 1274, Monticello MN 55362 " ~ Curb & Gutter Assessment Misc. Assessment (road & RJW) Stonn Sewer Assessments Watermain Assessment Total Assessment $ 4,211135 $54,102' 59 $ 1,569'07 $ 0'00 $59,883 01 I I The owners of this parcel have appealed their lSsessments based on the increased value of their property. i i I have reviewed thcse assessments and discovered that curb and gutter was included in the Misc. Assessment for this parcel and there ore the curb & gutter assessment for CSAR 75 should not be assessed against this parcel because they do not front on CSAH 75. This will reduce the curb & gutter assessrrents from $ 4,211.35 to $ 0.00. The total assessment for this project should be educed to $55,671.66. Kean of Monticello is also appealing based on he assessment for ~ the cost of the Right- of-Way acquired by the City. The "Assessmen Policy" clearly states in Section 13-1-1- (A) (8) that land acquisitions are an assessabletcm. Kean was paid $83,000 for the acquired Right-of-Way and ~ of this amount 0 $41,500 was assessed against the parceL The remaining $12,602.59 was for Y2 the cost tc construct the frontage road. A meeting was held with the property owners a d they are asking for a 50% reduction in ~e oterall assessment. It was decided to have a before and after assesSI1ent completed by an independent appraiser who is qualified in this type of appraisal. p.8 Assessment $ 59,883.02 8 . . . Council Agenda - 7/23/01 9. Consideration to ado t a resolution aw' rdin the sale of Taxable Tem G.O. Tax Increment Bonds. Series 7/31/01. ( .K. & R.W.) A. Reference and backl!round: Since the State Legislators adjourned the 001 session, I IRA Attorney Steve I3ubul, Financial Consultant Mark Rut1~ Rick Wolfsteller, and Koropchak have discussed the impact of the Omnibus Tax Bill on Monti ello's tax incrcment districts. Although the class rate reduction is clcar, we rcmain un ertain as to the future local tax rate. I3ecause the HRA has used TIF in a conservative a proach, the impact is minimal to Monticello compared to other communities. With the class rate reduction for commerc' allindustrial, the results is a 40% rcduction in tax capacity. However, with the impleme tation of the state wide business tax, the business willlikcly see a net reduction of 10%. For the purpose of tax increment, the state business tax is not collected. Also, ecause the state aid of HACA was deletcd, there is no longer a HACA Penalty associ ted with TIF. However, the City of Monticello no longer will receive any stat aid. The bill includes a provision for a city or uthority to apply for a grant for TIf shortfalls resulting from expenditures or bonds sold by August 1, 200 1.llowever, the combined excess tax increment from all districts mu t first be spend by thc authority prior to application of the grant. The bill provide no help for TIF pay-as-you-go finance methods and no protection for inter-fund oans between the City and HRA or internal loans between the TlF and HRA General undo At the lIRA meeting, the question asked was: "Is there a benefit to selling a Temp )rary Bond in order to accelerate funds for the existing inter-fund loans and the future pr jeets (in the pipeline) within the downtown district'?" After listing up-front TIf balm es, internal loans, and both projects in the pipeline and anticipated for downtown di trict, the amount came to about $1.5 million. The HRA made a motion recommending he City Council sell a Taxable Temporary Tax Increment Bond in the amount of $2 million net proceeds. The temporary bond terms were anticipated at a fixed interest rate of 5.51Yo over three years. The HRA asked of the approximate cost for issuance of the bon s. The issuance costs was estimated between $30,000 - $33,000. The HRA recommen s issuance of the bonds for the following reasons: One, it extends the life of the 5 year rule for the Downtown TIF District by two years or until August 1, 2004 (three years from date of bond sale) allowing time to complete projects in the pipeline and futu c redevelopment projects. Secondly, it provides protection f(x the existing inten alloans. And lastly, it provides the option to apply for a grant if a shortfall would occ r although not anticipated. Council Agenda - 7/23101 . The I IRA is scheduled to meet at 6:30 p.n . prior to Council meeting, to adopt a resolution pledging tax increment from 1'1 District No. 1-22 f<Jr payment of the bonds. Mark Ruff, Ehlers & Associates, will be p esent at the Council meeting to provide l'urther information and answer questions of the C )uncil. B. Alternative Actions: 1. A motion to adopt a resolution aw rding the sale of $2, 150,000 Taxable Temporary G.O. Tax Increment B nds, Series 7/31/01. 2. ^ motion to deny adoption of are olution awarding the sale of $2,150,000 Taxable Temporary G.O. Tax Incr ment Bonds, Series 7/31/01. C. Recommendation: ~lJ G~ The City Administrator and Economic De elopment Director recommend Alternative No. 1, supporting the reasons of the HRA. S lIing the bonds buys the HRA extra time for redevelopment within the downtown distr ct and protects the internal loans associated with Front Street acquisition. Projects in the pipeline include the Amoco site, Smith associate site, and Front Street. Addition' lly, developers have expressed interest in redevelopment of two other areas within tle district. However, administration does note that awarding the sale of the bonds docs c me at a cost. . D. SUDPortin!! Data: Resolution for adoption, TIF District 1-2 Cashflows. . . . . JUL.lL.:LUU1 11 l~AM tHLtK~ & A~~U~lAlt~ I~U. OJ::IL Monticel 0, MN $2,150)000 Taxable Temporary G.O. Tl x IncrcmCJlt Bonds, Series 7/31/2001 SOUllCES &: USES Ikltc:d 07/311200 Delivered 07/31/2001 SOURCES OF FUNDS P:ar Amount of Bon<ls....................._..............................._..................... $2,150,000.00 Coru;ttut;rion FWld Intcrcsr Earnings............. ....................................... 43,000.00 TOTAL SOURCES......................m.............. ....................................... S2,193,000.00 USES OF FUNDS Toca1 Undl!~s Discounr (1.000%)....... ....................................... Costs ofIs.~uance.................. .......................... ............. ....... ................... Deposit to Capiral~ IntereSt (CIF) Furn1... ......_..n........................... DC.:PllSit m Project Consuuction Fund........... ..............................-........ koUl1d.ing AmuWl~.....m_.m......................... ...........n.......................... n.500.00 14.000.00 154,336.35 2,000,000.00 3,163.05 TOTAL USES............................................... ........................................ :52,195,000.00 Ehlers & ,As$Oci:ltl$, Inc:. Leaders in Publi, Finance s~ 1955 t Prcds Taxable GO Temp- SINGLE PURPOSE 7/111200111:19 AM PiE 1 r.I.I't <4 . . . JUL. 12.2001 1119AM EHLERS & ASSOCIATES ~. -'NO. 6392-P. 3/4 Monticeno, MN S2,150,000 Taxable Temporary G.O. ., ax Increment Bonds, Series 7/31/2001 DEBT SERVICE SCHEDULE Dace Prindpal Coupon lnterett Totall'+1 FISCAL TOTAL 7/31/2001 - - . . . 1/0112002 . . 47,344.79 47,34-4.79 -47,344.79 7/01/2002 - . 56,437.50 56,437.50 - 1/01/2003 . . 56,437.50 56,437.50 112,875.00 7/0'/1003 . . 56,437.50 56,437.50 . 1/01/2004 . - 56,437.50 56,437.50 112,875.00 7/01/2004 2,1 SO,ooo.OO 5.250"- 56,437.50 2,206,437.50 - 1/01/2005 - . . . 2.206,437.50 Total 2,150,000.00 - 329,532.29 2,479,532.29 . YIELD STATISTICS Bond Ye:\l Dollllrs............................................................ ... ................................ ....... .............. Averngc UEc..................................................................... ........................................................ Avcr:lj;e COupon................._........ ...... .............................. ....................................................... 56,276.81 2.919 Yeln 5.2500000% NL"t Interest Cost (NIC)......................................__......... ....................................................... True Intcrl:l<t Q)st me).......................................-......... ....................................................... Bond Yield for Arbi~c l"urposcs........__..._................. ........_....._...................................... All IndlL~ivc Cosc (AIC)................................................... ....................................................... 5.5925309% 5.61804.30% 5.2516872% 5.8756159% IRS FORM 8038 N<!r Inr=t Coat......................................_.................................._......................................... W<.!ightl:d Average Manlrity.............................................. ..................._.................................. 5.2500000% 2.919 Y~'arS Ehlers llr. Associ:lcc:s, Inl;. File - MONTICE.LLO.SF-Sc:r 01 52,aOOK NlL!r Peeds Taxable GO TlL!/TJp-- SINGLE PURPOSE L:adcrs in Public Fin:ance si~ 1955 7/12/200111:19 AM Pagl2 ~ JUL, 12.2001 11: 19AM EHLERS & ASSOCIATES NO, 6392 P. 4/4 . Monticello, MN 52,150,000 Taxable Temporary G.O. Tax J :lcrement Bonds, Series 7/31/2001 NET DEBT SERVIC ~ SCHEDULE Dm: Principal Coupon Intc:rc.<;t Total HI CIP NctNew D/S FISCAL TOTAL 7/31/2001 . - . . . . - 1/01/2002 - - 47.344.79 "7,344 79 ("7,34-4.79) . . 7/0112002 - - 56,437.50 56,437 50 (56,437.50) - - 1/01/2.003 . . 56,437.50 56,437 SO (56.437.50) - - 7/01{2003 - - 56,437.50 56.41} SO - 56,437.50 . 1/01/2004 . - 56,437.50 56,43/ .50 - 56,437.50 1 U,875.00 7/01/2004 ~,1S0.0oo.00 5.250% 56,437.50 2,206,431.50 . 2.2.06,437.50 - 1/01/2005 - . - . . . 2,206.437.50 Total 2,150,000.00 . 329.532.29 2,479,53 .29 (160,219.79) 2.319,312.50 - Ehlers & AssoclllCc:..., Inc. File::;; MONTICELLO.Sf-Sl:r 01 S2,OOOK Net ~ Tanble GO Temp' SINGLE PURPOSE r,..-adc:rs in Publi, Finmcc since 1955 7/12/200111:19 AM . . Pas 3 . . . Extract of Minut s of Meeting of the City Coune I of the City of Monticello, Wright ounty, Minnesota Pursuant to due call and notice thereof, a egular meeting of the City Council of the City of Monticello, Minnesota, was duly held in the Ci y Hall in said City on Monday, July 23, 200t. commencing at 7:00 o'clock P.M. The following members were present: and the following Were absent: * * * * * * * * The Mayor announced that the next order f business was consideration of a proposal for the purchase of the City's $2.150,000 Taxable eneral Obligation Temporary Tax Increment Bonds, Series 200 I. The City Administrator presented an offer of Cronin & Co., Inc. to purchase the Bonds that had been submitted to the City pursuant to Cot ncil direction. After due consideration of the propos L Member introduced the following resolution, and moved its RESOLUTION then A RESOLUTION A W AROINGn-IE SALE OF $2.150.000 TAXA.BLE GENERAL OBLI A TION TEMPORARY TAX INCREMENT BO OS, SERIES 2001; FIXING THEIR FORM AN SPECIFICATIONS; SJB.200~65\ I MN I <)0.<)6 . DIRECTING THEIR EXECUTION AND DELIVERY: AND PROVIDING FOR THEIR PA YMENT BE IT RESOLVED By the City Council of the City of Monticello. Wright County. Minnesota (City) as follows: Section I. Sale of Bonds. 1.01. It is hereby determined that: (a) the City and the Housing and Redevelopment Authority in and for the City of Monticello (Authority) previously established Redevelopment Project No. 1 (Project Area) pursuant to Minnesota Statutes, Sections 469.001 through 469.047 (Act); (b) the City has duly established tax increment financing district no. 1- 22 (TIF District) within the Project Area pursuant to Minnesota Statutes. Sections 469.174 to 469.179 (TIF Act); (c) the City is authorized by section 469.178 of the TIF Act to issue and sell its general obligations to pay all or a portion of the public redevelopment costs (Costs) related to the Project Area as identified in the redevelopment plan (Plan) for the . TIF District. (d) the Plan authorizes the following Costs to be financed by the general obligations: Public Improvements Total Development Cost Land acquisition. site improvement and public improvements for downtown redevelopment Project Costs Contingency Discount Allowance Finance Related Expenses Capitalized Interest $1.957.000 3.164 21.500 14.000 154.336 Total Uses $2.150.000 (e) it is necessary and expedient to the sOLlnd tlnancial management of the aft~lirs of the City to issLle $2.150.000 Taxable General Obligation Temporary Tax . Increment Bonds. Series 2001 (Bonds) to provide temporary financing for the Costs; SJA-200465vl MN 190.96 . (n the Authority has r quested the City to issue and sell its general obligations to provide temporary rinancin~ for a portion of the Costs. (f) the Tax Increment ledge Agreement between the Authority and the City (Pledge Agreement) is approved in substantially the form on file with the City. and the Mayor and City Administrator re authorized to execute such agreement on behalf of the City. 1.02. It is determined that it is nece sary and desirable for the sound financial management of the City that the City issue and ell its Taxable General Obligation Temporary Tax Increment Bonds. Series 2001 (Bonds) pursll nt to the Act to finance all or a portion of the Costs. 1.03. The City is authorized by Minneso a Statutes, Section 475.60, Subdivision 2(6) to negotiate the sale of the Bonds it being determine on advice of bond counsel that the Bonds are taxable. The actions of the City staff and financi I advisors in negotiating the sale of the Bonds are ratified and confirmed in all aspects. 1.04. The offer of Cronin & Co.. Inc. (PL rchaser) to purchase the Bonds is found to be a reasonable offer and is accepted. the otTer bing to purchase the Bonds at a price of . $ for Bonds bearing interest at the ra e of % per annum to maturity. 1.05. The City will forthvvith issue and ell the Bonds pursuant to Minnesota Statutes, Chapters 469 and 475 (Act) in the total principal' mount of $2.150.000. originally dated July 30. 2001. in the denomination of $5.000 or integral ultiple thereof as requested by the Purchaser, and maturing on July 1, 2004. 1.06. Optional Redemption. The City ay elect on January 1, 2003. and on any day thereafter to prepay Bonds. Redemption may be i whole or in part and if in part. at the option of the City and in such manner as the City will dete mine. If less than all Bonds of a maturity are called for redemption. the City will notify DTC (' s defined in Section 6 hereof) 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 redee ed and each participant will then select by lot the beneficial ownership interests in sLlch maturi y to be redeemed. Prepayments will be at a price of par plus accrued interest. Section 2. Registration and Payment. 2.0 I. Registered Form. The Bonds will e issLled as a single typewritten bond. only in registered form. The interest thereon and. upon 'urrender of each BoneL the principal amount thereof. is payable by check or draft issued by the egistrar described herein. . 2.02. Dates: Interest Payment Dates. T 1e Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or SJI3.200465v 1 MN 190-9(1 . made available for payment unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment in which case the Bond 'vvill be dated as of the date of authentication. or (ii) the date of authentication is prior to the first interest payment date. in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on January I and July I of each year, commencing January I. 2002, to the registered owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 2.03. Registration. The City will appoint a bond registrar. transfer agent authenticating agent and paying agent (Registrar). The dIect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer. in form satisfactory to the Registrar. duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing. the Registrar will . authenticate and deliver. in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity. as requested by the transferor. The Registrar may. however. close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds 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 as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer. the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal. in good faith. to make transfers which it in its judgment deems improper or unauthorized. (t) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the SJH-2()()~65v I MNI9()-l)(, . . Bond. 'vvhether the Bond is overdue or not. for the purpose of receiving payment of. or on account of the princi pal of and interest on the Bond and for all other purposes. and payments so made to a registered owner or upon the owner's order will be valid and etTectual to satisfy and discharge the liabi ity upon the Bond to the extent of the sum or sums so paid. (g) Taxes. Fees and Charges. owner thereof for a transfer or exchange for any tax. fee or other governmental c transfer or exchange. The Registrar may impose a charge upon the f Bonds sufficient to reimburse the Registrar arge required to be paid with respect to the (h) Mutilated. Lost, Stolen or estro ed Bonds. If a Bond becomes mutilated or is destroyed. stolen or lost. the Regis rar will deliver a new Bond of like amount. number. maturity date and tenor in exchan Ie and substitution for and upon cancellation of the mutilated Bond or in lieu of and in SL bstitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expel ses 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 tha the Bond was destroyed, stolen or lost. and of the ownership thereof, and upon furnis ing to the Registrar an appropriate bond or indemnity in form, substance and amoun satisfactory to it and as provided by law. in which both thc City and the Registrar mu t be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the R gistrar and evidence of such cancellation must be given to the City. If the mutilated. des royed. stolen or lost Bond has already matured or been called for redemption in accorda ce with its terms it is not necessary to issue a new Bond prior to payment. . 0) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to b redeemed will be given by the Registrar by mailing a copy of the redemption notic by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by pub Ii hing the notice if required by law. Failure to give notice by publication or by mail to a y registered owner. or any defect therein. will not affect the validity of the proceedings 'or the redemption of Bonds. Bonds so called for redemption will cease to bear interes after the specified redemption date. provided that the funds for the redemption are on de osit 'vvith the place of payment at that time. 2.04. Appointment of l!"litial Registrar. The City appoints U.S. Bank Trust National Association. St. PauL Minnesota. as the initial Re istrar. The Mayor and the City Administrator are authorized to execute and deliver. on behalf of the City. a contract with the Registrar. Upon merger or consol idation of the Registrar with anot er corporation. if the resulting corporation is a bank or trust company authorized by' law to con ud such business. the resulting corporation is authorized to act as successor Registrar. The Ci y agrees to pay the reasonable and customary charges of the Registrar tl.)r the services perfl)!"m d. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appoi 1tment of a successor Registrar. in which event SJl3.200~65v I MN 190-96 . . 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 before each principal or interest due date. without further order of this CounciL the City Administrator must transmit to the Registrar monies sufficient for the payment of all principal and interest then due. 2.05. Execution. Authentication and Delivery. 'fhe 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 officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such otlicer before the delivery of a Bond. such signature or facsimile will nevertheless be valid and suflicient for all purposes, the same as if the ot1icer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the 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 same 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 been so prepared, executed and authenticated, the City Administrator will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not . obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more 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 Bond will be printed or typewritten in substantially the following form: . SJU-200465v I fVl N IlJO-lJ6 . . . [Face of th' Bond] UNITED STATES OF AMERICA STATE OF M NNESOTA COUNTY 0 WRIGHT ClTY OF MO TICELLO No. R-I TAXABLE GENERAL OBUG TION TEMPORARY TAX INCREMENT BO 0, SERIES 200 I Rate Maturity July 1, 2004 Registered Owner: Cede & Co. Date of Original Issue July 30, 200 I $ CUSIP The City of Monticello, Minnesota, a dul organized and existing municipal corporation in Wright County, Minnesota (City), acknowled es itself to be indebted and for value received hereby promises to pay to the Registered Ower specified above or registered assigns, the principal sum 01'$ on the maturity dat. specified above, with interest thereon from the date hereof at the annual rate specified above, payable January 1 and July 1 in each year, commencing January I, 2002, 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 States of merica by check or draft by U.S. Bank Trust National Association, St. Paul, Minnesota, as Bo d Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and in erest as the same respectively become due, the flllll~1ith and credit and taxing powers of the City have been and arc hereby irrevocably pledged. The City may elect on January I, 2Q03 and on any day thereafter to prepay Bonds. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determinc. If less than al Bonds of a maturity are called for redemption, the City will notify The Depository Trust Com any (DTC) of the particular amount of such maturity to be prepaid. DTC \-vill determine by lot the amount of each participant's interest in such maturity to be redeemed and each parti'ipant wi II then select by lot the beneficial ownership interests in such maturity to be redecl ed. Prepayments will be at a price of par plus accrued interest. SJH-200-l65v I .\INllJO-<)(' 'fhis Bond is one of an issuc in the aggregate principal amount of $2.150,000 all of like original issue date and tenor. except as to number. maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on July 23, 2001 (the Resolution), fell' the purpose of providing money to aid in financing public redevelopment costs in a Redevelopment Project (Project) in the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 through 469.179, the Minnesota Tax Increment Financing Act, and Minncsota Statutes, Sections 469.001 through 469.047. and the principal hereof and interest hereon are payable primarily from tax increments rcsulting from increases in taxable valuation of real property in a tax increment financing district (TIF District) within the Project as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to issue and sell definitive or additional temporary bonds to redeem the Bonds and to levy ad valorcm taxes on all taxable propcrty in the City in the cvent of any deficiency of tax increments pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denomination of $5,000 or integral multiples thereof. . As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal ot11ce of the Bond Registrar, by . the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hercof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount. bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and 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, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED. RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding gcneral obligation 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 thc indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. 5.1 (3-20041i:i v I tvINllJO,96 . . . . This Bond is not valid or obligatory for a y purpose or entitled to any security or benefit under the Resolution until the Certificate of At hentication hereon has been executed by the Bond Registrar by manual signature of one of its uthorized representatives. IN WITNESS WHEREOF, the City of City Council, has caused this Bond to be exec signatures of the Mayor and City Administrator date set forth below. Dated: (facsimile ) City Administrator onticello, Wright County, Minnesota, by its ted on its behalf by the facsimile or manual nd has caused this Bond to be dated as of the CITY OF MONTICELLO, MINNESOTA (facsimile) Mayor CERTIFICATE OF A THENTICATION This is one of the Bonds delivered pursu t to the Resolution mentioned within. SJB-l00465v I MN IlJO-96 U.S. BANK TRUST NATIONAL ASSOCIATION By A Ithorized Representative The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable lavvs or regulations: . TEN COM -- as tenants In common UNIF GIFT MIN ACT Custodian (eust) (Minor) TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors 1T TEN -- as joint tenants with right of survivorship and not as tenants in common Act. . . . . (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT . For value received. the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby ilTevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent lVledallion Program (""STAMP"). the Stock Exchange Medallion Program C'SEIvIP"). the New York Stock Exchange, Inc. Medallion Signatures Program . eMSP") or other such "signature guarantee program"" as may be determined by the Registrar in SJB-200./6Sv I MNI90-96 . . . addition to, or in substitution for. STAMP. SEM or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond Registrar will not etIect tr nsfer of this Bond unless the information concerning the assignee requested below is provi ed. Name and Address: (Include in rmation for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS T REGISTRATION The ownership of the principal of and int rest on the within Bond has been registered on the books of the Registrar in the name of the pel's n last noted below. Date of Registration Registered Owner Cede & Co. Federal ID #13-255 119 Signature of OfTicer of the Registrar 3.02. The City Administrator is directe to obtain a copy of the proposed approving legal Opll110n of Kennedy & Graven, Charter d. Minneapolis, Minnesota. which is to be complete except as to dating thereof and will caL se the opinion to be printed on or accompany each Bond. SJA-200465v I MN190-96 . Section 4. Payment Security. 4.01. The Bonds are payable from the Taxable General Obligation Temporary Tax Increment Bonds, Series 2001 Debt Service Fund (Debt Service Fund) hereby created, and all tax increments (Tax Increments) received by the City from Tax Increment Financing District No. 1- 22 (TIF District) pursuant to the Pledge Agreement described in Section 1.01 are pledged to the Debt Service Fund. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Administrator will pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for those advances out of the proceeds of Tax Increments when received. There is hereby appropriated to the Debt Service Fund (i) capitalized interest financed from Bond proceeds, if any, (ii) any amount over the minimum purchase price of the Bonds paid by the Purchaser, and (iii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds. 4.02. In accordance with its statutory duties under Minnesota Statutes, Section 478.178, Subdivision 5, the City covenants and agrees with the holders of the Bonds that if the Bonds cannot be paid at maturity from tax increments pledged or from other funds appropriated by the City Council, the Bonds will be paid from the proceeds of definitive or additional temporary bonds that will be issued and sold prior to the maturity date of the Bonds. . 4.03. It is hereby determined that the estimated collection of Tax Increments for payment of principal and interest on the Bonds, together with proceeds of any definitive or additional temporary bonds, will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.04. The City Administrator is authorized and directed to tile a certified copy of this resolution with the County Auditor of Wright County 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 authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City. and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control. relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished. may be deemed representations of the City as to the facts stated therein. 5.02. "fhe Mayor and City Administrator are hereby authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the . SJB,2(J0465v 1 MN1<JO,96 . . . issuance and sale of the Bonds and that to the est of their knowledge and belief the Official Statement is a complete and aceLlrate representati n of the facts and representations made therein as of the date of the Official Statement. 5.03. The City authorizes the Purchas r to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven. Chartered as Bond Counsel) to Reso lrce Bank & Trust Company. Minneapolis, Minnesota on the closing date for further distribu ion as directed by the City's financial adviser, Ehlers & Associates. Inc. Section 6. Book-Entrv S 6.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities 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., a' nominee for The Depository Trust Company. New York. New York, and its successors and assi )"ns (DTC). Except as provided in this section. all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee f DTe. 6.02. With respect to Bonds registered 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 obli ration 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 Ole. Cede & Co. or . ny 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 a y notice of redemption, or (iii) the payment to any Participant or any other person, other than a r-"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 Regis rar as the holder and absolute owner of such Bond for th(; 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 sLlch payments will be v, lid and effectual to fully satisfy and discharge the City's obligations \vith 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 ovvner of Bonds. as shcl\\n in the registration books kept b, the Bond Registrar. will receive a certiticated 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 SJB-200465v I MN 190-96 . nominee in place of Cede & Co.. the words "Cede & Co.," will refer to sueh new nominee of DTe; and upon receipt of such a notice, the City Administrator will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 6.03. Represent~.!:.i.on__Letter. The City has heretofore executed and delivered to OTC a Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of principal ot~ premium, if any. and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent. respectively, to be complied with at all times. 6.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify OTC, whereupon DTC will notify the Participants, of the availability through OTC of Bond certiticates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. OTe may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event. if no successor securities depository is appointed, the City will issue and the Bond . Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer. exchange and method of payment thereof. 6.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of OTC, payments with respect to principal of. premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in OTC's Operational Arrangements. as set forth in the Representation Letter. Section 7. Continuing Disclosure. 7.01. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing ~isclosure Certificate. Notwithstanding any other provision of this Resolutio.n. failure of the City to comply with the Continuing Disclosure Certiticate is not to be considered an event of default with respect to the Bonds; however. any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order. to cause the City to comply with its obligations under this section. 7.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the tvlayor and City Administrator and dated the date of issuance and delivery of the Bonds. as originally executed and as it may be amended from time to time in . accordance vvith the terms thereof. SJH-200465v I M N I9(J.96 . . . T'he 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. SJB-200465v I MN 190-<)6 STATE OF MINNESOTA ) ) COUNTY OF WRIGHT ) SS. ) CITY OF MONTICELLO ) I, the undersigned, being the duly qualified and acting Administrator of the City of Monticello, Wright County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on July 23, 2001 with the original minutes on file in my office and the extract is a fulL true and correct copy of the minutes insofar as they relate to the issuance and sale of $2,150,000 Taxable General Obligation Temporary Tax Increment Bonds, Series 2001 of the City. WITNESS My hand officially as such Administrator and the corporate seal of the City this day of ,2001. City Administrator Monticello, Minnesota (SEAL) SJB-2U0465v I MNI9(H)6 . . . . . . STATE OF MINNESOTA COUNTY OF WRIGHT COUNTY AUDITOR'S CERTfFfCA TE AS TO REGISTRA nON WHERE NO AD V ALOREM TAX LEVY I, the undersigned County Auditor of Wight County, Minnesota, hereby certify that a resolution adopted by the City Council of the Cit of Monticello, Minnesota, on July 23, 200 l, relating to Taxable General Obligation Tempora y Tax Increment Bonds, Series 2001, in the amount of $2, l50,OOO, dated July 30, 200 l, has b en tiled in my office and said obligations have been registered on the register of obligations in m office. WITNESS My hand and ofIicial seal this (SEAL) SJB-200465v I MN 1<)0-96 day of , 2001. County Auditor Wright County, Minnesota By Deputy . No. R-I UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF MONTICELLO $ TAXABLE GENERAL OBLIGATION TEMPORARY TAX INCREMENT BOND. SERIES 2001 Rate Maturity Date of Original Issue CUSIP July 1, 2004 July 30, 2001 614468 VD5 Registered Owner: Cede & Co. The City of Monticello, Minnesota, a duly organized and existing municipal corporation in Wright County, Minnesota (City), acknowledges itself to be indebted and for value received . hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable January 1 and July 1 in each year, commencing January 1. 2002. to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a 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 States of America by check or draft by U.S. Bank Trust National Association, St. PauL Minnesota, as Bond Registrar. Paying Agcnt Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on January 1, 2003. and on any day thereafter to prepay Bonds. Redemption may be in \Y.hole or in part and if in part. at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption. the City will notify The Depository Trust Company (DTe) 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 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 plus accrued interest. . S.JB-2()()-t65~ I MN )'i().l)6 . This Bond is one of an issue in the aggre< ate principal amollnt of $2,150,000 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 adopted. by the City Council on July 23, 2001 (the Resolution), for the purpose of providing money 0 aid in financing public redevelopment costs in a Redevelopment Project (Project) in the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, i eluding Minnesota Statutes, Sections 469.174 through 469.179. the Minnesota Tax Increment Fi ancing Act. and Minnesota Statutes, Sections 469.001 through 469.047, and the principal hereof and interest hereon are payable primarily from tax increments resulting from increases in taxabl valuation of real property in a tax increment financing district (TIF District) within the Proj ct as set forth in the Resolution to which reference is made for a full statement of rights an powers thereby conferred. The full faith and credit of the City are irrevocably pledged for pa ment of this Bond and the City Council has obligated itself to issue and sell definitive or add tional temporary bonds to redeem the Bonds and to levy ad valorem taxes on all taxable prope y in the City in the event of any deficiency of tax increments pledged, which taxes may be levie without limitation as to rate or amount. The Bonds of this series are issued only as fully re istered Bonds in denomination of $5.000 or integral multiples thereof. . As provided in the Resolution and subje t 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 ower's attorney duly authorized in writing, upon surrender hereof together with a written instrumen of transfer satisfactory to the Bond Registrar. duly executed by the registered O\vner or the ower's attorney: and may also be surrendered in exchange for Bonds of other authorized denominat'ons. Upon such transfer or exchange the City will cause a new Bond or Bonds to be isslled in tl1 name of the transferee or registered owner, of the same aggregate principal amount, bearing inteest at the same rate and maturing on the same date, subject to reimbursement for any tax. fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and 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, and either the City nor the Bond Registrar will be affected by any notice to the contrary. . IT IS HEREBY CERTIFIED, RECITED. OVENANTED AND AGREED that all acts, conditions and things requircd by the Constitution nd laws of the State of Minnesota to be done, to exist. to happen and to be performed prelimina y to and in the issuance of this Bond in order to make it a \'alid and binding general obligation f the City in accordance with its terms, have been done. do exist. have happened and have een performed as so required. and that the issuance of this Bond docs not cause the indebtedl ess of the City to exceed any constitutional or statutory limitation of indebtedness. S.l13.200..65\ I iVIN 190-<)6 This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. SJB.200-'l65v 1 I\IN 190-96 . . . . . . IN WrrNESS WHEREOF, the City of onticeIlo, Wright County, Minnesota, by its City Council, has caused this Bond to be exect ted on its behalf by the facsimile or manual signatures of the Mayor and City Administrator nd has caused this Bond to be dated as of the date set forth below. Dated: City Administrator SJR-200465v 1 MN 190-96 CITY OF MONTICELLO, MINNESOTA Mayor CERTIFICA IE OF AUTHENTIC A nON This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK TRUST NATIONAL ASSOCIA nON By Authorized Representative The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants 111 common UNIF GIFT MIN ACT Custodian (Cust) (Minor) TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors JT TEN -- as joint tenants with right of survivorship and not as tenants in common (State) Act. . . . . Additional abbreviations may also be used though not in the above list. SJH-200465v 1 MN 190-96 _".._.__. ,,_,~"""""!!IR.._ ,___ ~. . . . . . . ASSIG MENT For value received. the undersigned hereby sells. assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoi t attorney to transfer the said Bond on the books kept for reg stration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change wI atever. S.lR-2()()465v I MN 19()-96 ---,~---_.~-_..,. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee SJR-200465v I MN 190-96 .. --~-~._,-,~-----,- . . . . . . PROVISIONS AS T REGISTRA nON The ownership of the principal of and int rest on the within Bond has been registered on the books of the Registrar in the name of the pers n last noted below. Date of Registration Registered Owner Cede & Co. Federal ID #13-255 119 sm.2()0~65v I MN 190-96 Signature of Officer of the Registrar . 10. Council Agenda - 7/23/01 Consideration of an offer for Dr. .John Erlandson (R W) A. REFERENCE AND BACKGROUND: . . As part of the recent extcnsion of West Chels a Road from TH 25 to thc west, thc City acquired two lots in the Sandberg South Addition to pr vide for the right-or-way for Chelsea Road. One oUhe lots, Lot 2, Block 2, Sandberg South A dition was located on the west side of Sandberg Road, adjacent to the Southside Dental Clinic parcel. The City had obtained an appraisal on the pro erty in question and purchased the property for $2.36/sq. ft., or $87,150 for the lot. Gfthe 3 ,000 sq. ft. parcel, approximately 13,250 sq. ft. was not needed by the City to construct the C elsea Road extension and remains as a vacant parcel between Chelsea Road and the Southsi e Dental Clinic parcel. Earlier this year Dr. Erlandson inquired as to hether he could purchase the property from the City to attach to his parcel. I had informed Dr. Erlandson that it has been the past practiee of the City to offer any excess property to the p blic for sale at the same price the City had paid for the parcel, in this case, $2.36/sq. ft. As ou may recall, a small 1,000 sq. ft. strip ofland adjacent to Monticello Ford was transferred t ) Monticello Ford for the same price the City had paid when it purchased property ($3.00/sq. ft) and likewise, a remnant parcel was sold to the Mielke Development Group on the east side )1' TH 25 for over $4.00/sq. ft., the cost the City incurred in acquiring that property. Enelosed with the agenda is a sketch of the r mnant parcel that has been identified as having an area of approximately 6,300 sq. ft. of usable, buildable, property outside of drainage and utility easements while the remaining 6,900 sq. ft. 1 es within a drainage and utility casement area and would be difficult to actually construct any uildings on it. I indicated to Dr. Erlandson in fcbruary that since part ofthe property may ot be as valuable as the buildable area, the City Council may be willing to negotiate on the a 'king price. Mr. Greg Smith, representing Dr. Erlandson has submitted an offer for Council consideration for the purchase of the entire remnant parcel for $9,000. This amounts to approximately to $.68/sq. ft., far below the purchase price inc rred by the City. Although the parcel has approximately 80 feet of frontage on Sandb rg Road, current zoning ordinances require commercial lots to have a 100' minimum wi th, thus the lot would bc considered unbuildable by itself unless a variance was granted. Ev n if one was to discount the utility and drainage easement area, there still is 6,300 sq. ft. of u able property that I believe the City should try to recapture its original cost from. Even wit out any value established for the utility and drainage easement property. this would plac the market value for these 6,300 sq. ft. of usable area at about $14,900, substantially more th n the $9,000 offer. B. AL TERNATIVE ACTIONS: 1. Council could accept the offer as pr posed to purchase the remnant parcel of 13,250 sq. ft. flW $9,000 with the City retaining additional utility and drainage easements as shown on the sketch. . Counci I Agcnda - 7/23/01 Council could propose a countcroffi r for sale of the parcel. () ~rQl\ (J . ~9 0 0 to \'/ 3. Council could offcr thc property for sale to the public befixe accepting any offer. 2. C. STAFF RECOMMENDATION: While it would appear that the parcel has th most benefit to be combined with the Southside Dental Clinic property, r do believe it is rea onable to recapture as much of the purchase price as possible for any unnccded property and sking a minimum of $2.36/sq. ft. for the unencumbered part of the property seems more than reasonable and recommend that a counteroffer of around $14,000-$15,000 be _ roposed.. Although there may not be an immediate need by the City to retain this pa cel, it is recommended that any sale is contingent upon the City retaining sufficient utility an drainage casements to accommodate a future sanitary sewer force main planned along th n011h side of Chelsea Road. D. SUPPORTING DATA: . Copy of February 28, 2001 letter Sketch of parcel Appraisal summary Purchase offer Icttcr '0 \ \tJ0 ~ 4\ bv5AJ-' tj', \ J( . . . . . . . -- MONTICELLO February 28, 200 I Dr. John Erlandson Southside Dental Center 20 I Sandberg Road PO Box 600 Monticello, MN 55362-0600 Re: Chelsea Road Remnant Parcel Dear Dr. Erlandson: Enclosed you will find a sketch plan prepared by 01.. r city engineer that outlines the remnant parcel of property the City acquired for the extension of Chelsca Road adjacent to your property. As you can see, our engineer estimates that the remnant parcel ontains 13,250 sq. ft. The drawing also indicates the portion of the property that contains the utility a d drainage casement and shows the remaining portion of 7,517 sq. ft. that could be usable buildin area. You had prcviously expressed an interest in acquiri 19 this property and it has been the past policy of the City to make remnant parcels available to the a(joining property owners 'vvhen they are sold. It has also been the past policy of the City to offcr the excess property for sale at the same cost the City incurred in acquiring it, which in this case \vas app oximately $2.36/sq. ft. If this was the case, the price of the property would ,be $31,270. Recognizing that the purchase price paid by the Cit was for a lot of record that was a buildable parcel, there may be some room for negotiation on the sale price because the parcel by itself does not appear to be a buildable site and in addition, a portion of the roperty is covered by a utility and drainage easement. While it certainly can be argued that th re is some value to the parcel to the adjoining property because of the approximate 7,5 0 sq. ft. of usable, buildable area, the City would be willing to consider an offer for the property if you re interested. If the City Council does not feel the offer is reasonable and fair. the Council may want t retain ownership for some other public use. As you may be aware, the City has transferred own rship of other similar remnant parcels along Chelsea Road, one being to Monticello Eord and th > other to Ultra-Lube. As a reference, the City received $3/sq. ft. for the remnant parcel sold to tvl nticel10 Ford and over $4/sq. ft. for the parcel sold to Ultra-Lube. /0 Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, MN 55362-!l!l31 · (763) 295-2711 . Fax: (763) 295-4404 Office of Public Works, 909 Golf Course Rd., Monticell ,MN 55362 . (763) 295-3170 . Fax: (763) 271-3272 . Dr. John Erlandson February 28, 2001 Page Two If YOLl are interested in making an offer for the parcel r have any questions concerning the property or future Llses, feel free to give me a call at your conveni nce. Sincerely, ?Z MONTICELLO C./~~ uJ/ja:UL Rick Wolfstelle/- . City Administrator RW/dg Enclosures: Sketch cc: Project 98-25C File . ..... . /'0 SMITH, PAULSON, O'DONNELL 8: ASSOCIATES, P.L.C. ATTORNEY AT LAW . PLEASE REPLY TO: MONTICELLO OFFICE 207 SOUTH WALNUT STREET P. O. BOX 668 MONTICELLO. MN 55362-0668 GREGORY . SMITH' GARY L. PRINGE (1940-1987) GERALD S.AULSON" PATRICK M. 0' ONNELL". MELANIE FLORES ELK RIVER OFFICE JACKSON SQUARE BLDG. 400 JACKSON AVE. N.W. SUITE 103 ELK RIVER, MN 55330 PHONE (763) 295-2107 FAX (763) 295-5165 PHONE (763) 441.3990 BARBARA J. CHERBING SHEILA K. OULAND LEGAL AS ISTANTS July 13, 2001 Mr. Rick Wolfsteller City Administrator City of Monticello 505 Walnut Street Monticello, MN 55362 Re: Chelsea Road Remnant . Dear Rick: I have been authorized by my clie offer the City of Monticello $9,0 remnant south of his dental clini Please convey this proposal to th me at your earliest convenience. Thank you for your cooperation. ~ Gr~gory V. Smith GVS/bas File No. 24068 Ene. cc: Dr. John C. Erlandson . t, Dr. John C. Erlandson, to o cash for the Chelsea Road city council and respond to " Qualit!/ ..cegal Strvi '&$ Since 1968 }o 'CERTIFIED REAL PROPERTY LAW SPECIALIST "ALSO ADM TTED IN NORTH DAKOTA '''ALSO ADMITTED IN TEXAS "QUALIFIED NEUTRAL UNDER RULE 114 OF THE INNESOTA GENERAL RULES OF PRACTICE FEB-19-2001 10: 08 WSB & RSSOCIRTES I C. 76354:17(10 \i : ! : 1\ " I' ' " ~ [\ I ! : \1 \ 1 \ / I \ \ i I \ \ \ ------ " "">". / Ii, \vtJi f" -------.~=-:: \ I _ _ '_.. _ ----'-_:-- 'I '..-- _._~~. ..-. _.... '. ,I.... 1\. \. /'~::::--"-::--- ---...,.: "\ "" \/, ./. ~ -" ./ .--------.--~ ",.., 1 r ;. , ./ . / "--:'-'-'--'''-''~-''- ", \ " : ';: I ( ~~. ~'-'l I \ '. j \. f' \, ~ ! i ( .:.-.....'.1 . ..... ! i il : : I \ \ \ ~ : j: //"-~' '. ; : . : \ I \::0 \ \ ( : j ..../ . J V jY'.O' I'\I( J- _ _ _/\' \ ~ ! \ \ \ \ I ' \ \', / \ ,: \ IY\- \ \\\ \ ; , \ \ {Ii. \ \i\\\ '''~~ \'\~ ~~ ' ",~ ""~\ ..... -.t:=:-:. \ --. "- . .---- ~.:{ .............. "-, --~ l ...... , ... i . _.__.~-_...........-.~_.---_. ~ o 938.0/ c. ERLANDSON ..... .....~ () i'/ ............ .~._ I :1 I r, -.... \ ., \ / , \ , " \ \ I I --\ .... .'50 0.-. ~...~ .... IlllIIDl WS8 .......-~ :=. ~ .-- -- .I.~ ".. ,._... ...z2 ..l&OL'IWI.. _1____ "_=="I"'I~~ CITY P AReEL FOR Monticello, -~t1'.'CI.I:_ V /./: AAU"m1~lZ rx')(J ""^ .. mJ .qlt TOTAL AREA '32!O sq 1~ esota P.02/02 / ,t/ " ..~.. i .. I I . ! r J4 / , , I , &C j i I Q <:: o cr '" a: L.u co a z <r l.I'l ! I I I ---. 1lI1f: fl'MlUlf I" ;sa TQTRL P.02 J 0 f v ~, ( I)rv AI..- . r ,f' ~^J"( V ALUA TION SUMMARY AND C( NCLUSIONS ADDRESS: PID#: PROPERTY TYPE: PROPERTY OWNER: INTEREST APPRAISED: APPRAISAL PURPOSE: APPRAISAL USE: mGHEST AND BEST USE BEFORE ACQUISITION: mGHEST AND BEST USE AFTER ACQUISITION: FIVE YEAR SALES IDSTORY: SITE DATA: ASSESSOR'S MARKET VALUE: ESTIMA TED VALUE OF FEE TAKING: ;ESTlMA TED VALUE OF TEMPORARY EASEMENT: ALLOCATION OF DAMAGES: DATE OF APPRAISAL: APPRAISER: . " f(/:::O S(~ ' f P 1}J (, 1 West side of Highway 25, south ofl-S and just west of Sandberg Road, Monticello, MN 55362 (no address, subject is vac II11t land) Legal description also to conform wit Pill #155-027-002020 (Lot 2, Block 2, Sandberg South Addition) Vacant land, zoned B-3 (Highway Bl siness) Central Minnesota Project, mailing aidress of: P.O. Box 668, Monticello, MN 55362 Fee Simple Estimate fair market value of fee tW ing of entire parcel Determine damages due to total acq isition Conunercial pad site After the acquisition, the subject wi I have a new roadway and retention pond, therefore there is not highest and hi st use after, other than public good No recorded transfers within the la t five years Topography: generally level and at current Sandberg Road grade Size before acquisition: 36,933 s.f. T A lo..rr . Of W! 155027002020 $38,' 00.00 $ ISF $2.25 $/SF $0.00 S.F. Acquired 36,933 SF Acquired NoTE Fee Taking Acquired: Tqnporary Easement Area Acqu red: -7 Landscaping Acquired: Severance Damage: Cost-to-Cure: TOTAL DAMAGE: TOTAL DAMAGE ROUNDED Vegetation: assorted field grasses and some volunteer small and semi-mature trees bnprovements: none BlJILDlNG $ $0.00 February 19, 1998, the most re entdateofinspection Julie Jeffrey-Schwartz, certifie General Appraiser, Minn. #4002423 Paul G. Schwartz, Certified Ge eral Appraiser, Minn. #2002323 TOT AI.. S. $38,200.00 TOTAL $83,099.25 TOTAL $0.00 $83,099.25 $0.00 $0.00 $0.00 $0.00 $83,099.25 $83,100.00 }o . . . ]1. Council Agenda - 7/23/01 Considcration of rcviewin J Ii uor store, chematic desi n llans and authorization to Jlrcparc final construction documents. (R W) A. REFERENCE AND BACKGROIJND: Mr. Gracme Mahler of Mahler and Associa es, has recently completed schematic plans for the expansion project at the liquor store. Mr. ahler has met with the building official, liquor store manager and myself a few times to re iew our concerns regarding layout of the structure and we are now at the point where we can begin preparation of final construction documents for bidding, if approved by the Council. The project is intended to expand the liquor store by 3,500 sq. ft. and bring the total square footage to almost 10,000 sq. ft. As you ca 1 see from the drawings, a substantial amount of exterior remodeling is included in the proje t in an attempt to update the structure and tic it into the surrounding Towne Centre developmen. As proposed, the building will change dramatically from its present condition. In rder to see if we are still on line with our budget, Mr. Mahler has prepared some preliminary ost inlormation estimating that the construction costs, including some remodeling of the exi ting facility will be in the range of $450,000 to $520,000. The only items that are not incl ded in this budget at this time relate to any exterior shelving, cash registers and other equipment we may want to purchase along with the cost of the walk in cooler expansion. These items c )Llld easily be in the $100,000 to $125,000 range, bringing the total estimated project cost to $ 75,000 to $650,000. If the Council is comfortable with this price range. you could authorize th architect to complete construction documents so that the City can go out for bids in the near Iture. Initial project cost estimates for an expansion of this size have always been disc Issed at $500,000 to $600,000, so it appears we are in line with that cost estimate. Although I don't have the information available at this time, I wi11 be meeting Monday morning with Greg Mooney of Spectra Building Group, the builder of the Towne Centre project. Hopefully Mr. Mooney will be able to also g've me his opinion of what the construction cost might be for this expansion. I will present t is information. if available, Monday night. B. ALTERNATIVE ACTIONS: I. Council could approve the preliminar expansion plans for the liquor store and authorize the architect to comp'lcte th plans and specifications lor construction bidding purposes. The estimated cost of completing arcl itectural and structural drawings is $4.300, bringing our total estimated cost to dae to $8.800. 2. Council could make modifications to he expansion plans and authorize preparation of final construction documents. Revisions to the plans could possibly e made to lower construction cost if the Council feels the project has exceeded budget xpectations. . . . Council Agcnda - 7/23/01 3. Do not continue with plans and speci ications at this time. C. STAFF RECOMMENDATION: It is the recommendation or the liquor store I anager and city administrator that the preliminary plans be approved as presented and that the a .chitcct be authorized to complete iinal construction dOCUll1ents fix bidding purposes. 'The architect has met a number or times with liquor store staff and myself and we feel that the layout of the facility will be very workable in the future and that the exterior modification hould certainly update the facility and definitely tie in well with the Towne Centre developme 11. Assuming we can keep the construction cost and equipment within budget, we recommen continuing with the project. D, SUPPORTING DATA: ^ copy of preliminary plans (including befor and after layouts) . .--.. t""tAHLER $ ASSOCIATES RRCHITECTURE 14 N. 7th Ave. Suite 131 St. Cloud. MN 56303 TEL: (320) 259-4072 FAX: (320) 259-4074 Graeme H.D. Mahler. AlA Principal . . Monticello Li uor Store Preliminary Cost Information SF $/SF or Lump Sum Subtotal Includes Cntrctr. OH&P Addition Brick over CMU 3,500 96.60 338,100.00 Includes all Systems/Finishes Subtotal 338,100.00 Renovation Restrooms 2 10,000.00 20,000.00 Lounge 120 69.00 8,280.00 New Entry 280 9.20 2,576.00 Exst. Rstrm. 1 1,000.00 1,006.00 Sewer 1 10,000.00 10,000.00 Mech. Ducts (rotate) 3,600 3.85 13,869.00 Lighting 3,600 9.28 33,409.80 Carpet 3,600 4.00 14,400.00 Canopy 1 10,000.00 10,000.00 Subtotal 113,534.80 Preliminary Total 451,634.80 International Council Of Building Officials (Based on issued April 2001 Permits) Public Building SF co t Renovation 98/2 Preliminary Total 3,500 3,600 98.00 343,000.00 49.00 176,400.00 519,400.00 I t . . . Council Agenda - 7/23/200 I 12. Consideration of ado 16C. (J.S.) ro . ect #2000- A. REFERENCE AND BACKGROUND: After many task force meetings, workshops, co ncil meetings, county transportation and board meetings, a state-aid variance committee meetin , and two public informational meetings, it has finally come down to decision time. With the app oval of the layout, the county can begin its design work and the city can begin design work for its s itary sewer, water, storm sewer, and street light replacement and/or refurbishment. The goal is to ave the project bid over the winter with an early spring start to assure com letion of the ro' ect n one construction season. The estimated cost of the project as presented in t e informational meeting, is $3,000,000, of which the city's share is $2,000,000. The majority of 0 I' costs are utility and street light improvements. The primary corridor goals for the project are as ollows: ... To Reduce the Number of Crashes and S verity Rate Through the Implementation of Left Turn Channelization to Minimize Contlic Points Maintain Parking on Both Sides Maintain Existing Curb Line Minimize Median Maintenance Improve Roadway Character Improve Pavement Surface and Infrastructure (i.e., Sanitary Sewer, Storm Sewer, and Water System) Replace Street Lights ... ... ... ... ... ... The following goals and issues are also a key to he success of the project: SAFETY: ... Reduce Number of Crashes/Severity Rat ... Provide Emergency Access ... Provide Ped Safety/ Accomm. (Proximity of Curb to Moving Traffic) ... Provide Protection for Left Turning Vehi les (Median) ... Parkway System (Boulevards vs. Concre e Walks). ... Corridor Street Lighting (Ornamental if ower Line Buried) AESTHETICS/AMENITIES: ... Retain/Enhance Residential Character of O<ldway ... Preservation of Existing Trees ... Bury Utilities? ... Corridor Street Lighting (Ornamental if ower L.ine Buried) ... Parkway System (Boulevard as Opposed to Concrete Median) ... Council Agenda - 7/23/200 I TRANSPORTA TION/TRAFFIC: " Itnprove Pavement Surface " Maintain Regional Transportation Netwok: CSAH 75/TH 25 " Provide for Existing/Future Capacity " Identify Staging and Costs for Transporta ion Roadway Relievers " Provide Traffic Calming Methods " Enforcement of Speed Limit RESIDENTIAL CONCERNS: " Residential Access (Shoulder) - '('raffle b fTer/Back Out of Driveway " Pedestrian Safety/Accomm. (Proximity 0 Curbs to Moving Traffic) " Maintain Parking " Delivery Vehicles - Mail/Garbage/School Buses " Minimize Limited Access of Cross Street I " Reduce Assessment Costs i " Median (Grass/lrees/Plantings) Maintena ce " Minimize Truck Traffic MAINTENANCE: " Pavement & Utilities " Provide Snow Storage/Removal " Minimize Median (Grass/lrees/Plantings Maintenance COSTS: " Minimize Assessments " Keep Costs to a Minimum " Maintain Property Values At this time in the project development it is key tl' t the City Council approve a layout and turn the project over to the county so that it can move forw rd. The layout chosen must provide for increased safety for vehicular traHic within our community nd those passing through our community, as well as pedestrian safety. It should be of benefit for the overall community and its transportation system, and it should have a projected design life of 15 to, 0 years. In addition, it should be an amenity for the City. ! B. ALTERNATIVE ACTIONS: I. The first alternative would be to approve t e layout as presented in the public informational meeting, including low maintenance med'ans, and turn the project over to the county. 2. The second alternative would be to a prove the layout as presented in the public informational meeting, but to make minor 'hanges to the project which can be supported by the City Engineer and the Wright County Highway Department and move forward. " -, . 'l'he third alternative would be not to a: prove the layout as presented but to ask for ~_\ 'b~ ~ ( ~ 13. Review of second uarter 2001 financial re rt for the Monticello Communi Center. KB eA. REFERENCE AND BACKGROUND: Attached is the financial information, facility user cou s and number of passes sold through the second quarter of 200 1 for the Community Center. Included i a comparison of revenue and expenses for the second quarter of2000 and 2001. As you can see we'r on budget so far for 2001. While our first quarter will always be our busiest time fthe year, I think we really did well in the second quarter. June was significantly busier in 2001 than it as in 2000 due in large part to our additions to our class and activities offerings and of course the skate p k. The weather played an important role in our success in June as well, the rainy weather drove people inside. e Some highlights of the financial report are: 1. Expense increases from the first quarter to the econd quarter: a. Payroll expenses up due to additional L'feguards on duty, Skate Park attendant hours and additional Slide attendant hours during he daytime. b. Administrative General increased due t the payment of our $20,895 for General Liability and Property Insurance. c. Maintenance Expenses are up because s the users load goes down, we're able to perform necessary maintenance to the building d equipment. 2. Included in Recreation - General is advertising hich includes the cost to produce and distribute our quarterly class and activity brochure. We ad two brochures distributed in this quarter. We offered a lot more classes and activities. Most ere very well received. 3. Concession revenue and expense is higher than projected. We've added items to our concession sales from suggestions received from our pass olders and guests that have proven to be popular. 4. In the 2000/2001 financial comparison, we fine tuned the general ledger in 2001 to give us more detail in the recreation area of the facility. So hile we did have Program Supplies and General Recreation expenses in 2000, they were absorb d in Administrative General. 5. We're very excited to see that we've had over 9,000 visitors to the Community Center through June. That is a daily average of 278 visitors pe day! This number does not include guests coming for the rental facilities only which would drive hat number up. B. ALTERNATIVE ACTIONS: 1. The first alternative would be to approve the fi ancial, facility use and pass information for the Monticello Community Center. C. STAFF RECOMMENDATIONS: The City Administrator recommends alternative numb r one. D. SUPPORTING DATA: e Summary of information through June 30, 2001. 0 I'- '<t a:> 0 a:> I'- 0 '<t a:> (0 ~ 'iF-'iF-'iF- N a:> a:> ~ (0 a:> a:> I'- ~ ..- a:> 0 m a:i ui ui ui a:> m..-..- 0 I'- N ('I) I'- ..- ui (0('1) Ii) (0 N I'- ('I) '<t Ii) a:> ID Ii) ('I) a:> ..- ..- m ..- 0 0_ '<t_ ('I) ..- (0- a:> (0 I'- M mo)NN '<t ..fcOocO c.6 NNN('I) (oNa:>..- ..- . 'iF-'iF-'iF-'iF-'iF- N..-Na:>..- li)l'-m('l)..- OOOOIDO oooomo OOOO(ON o a:>- N ..f '<t- N OIi)'<tNa:>'<t ('I) 'iF-'iF-'iF-'iF-'iF- Mm'<t(O..- O('l)a:>I'-N ..- ..- ..- .... Cl o " <C ::::) " C Z N ::I: C) ::::) o 0::: J: I- 0::: w I- Z W (J >- !:: z ::::) ::i :E o (J ~ w ~ 0::: W UJ . 'iF-'iF-'iF-'iF-'iF-'iF- a:>o(O'<t('l)m '<tIi)Ii)I'-M(O ('I)'<tO'<tNV '<tONIi)I'-O CO mm O(() ('I) ri ..-- ri N (0- ..-- N ..- 11 'in lIl:> III .~..:::.::: :!:::: o ,!!1 ~> I-~ L.. ::J ell ..c~.go.. lIlQ):;;:Q) ellL..-Cil c..~~~ CI)>>CI) cY) I"" -i .1 ill Ii) a:> ID Ii) '<t 0 ..- N'<t a:> m Ii) a:> ID Ii) '<to ..- N V ~ 0 N '<t ID ('I) I'- a:>'<t (0('1) ~ 0 N '<t ID ('I) I'- ~ ~ ..- ..t m m cri I'- a:> "-:m ..t-.::i ..- ..t m m crir--: cri ..- (0 Ii) N I'- Ii) '<t I'- a:> I'-m (0..- Ii) N I'- ID VI'- a:> I'- 0> ('I) ID 0> I'- ..- Ii) a:> 0 a:> ('I) ID 0>_ I'- ..-ID a:> o a:> cO N N ricO'<t m-'<t-u-i a:> N N M cO '<t- o) '<t- u-i '<t..-V ..- '<t.....'<t N a:> m 0 Ii) ('I) ('I) 0 ('I) (0 N a:> ('I) m 0 0 N 0 (0 (0 Ii)'<t ..... ~ ('I) '<t M ~ a:> ('I) ~ ~ 0 ('I) '""": m ..- ID '<t ~ mm m a:> ('I) r--: I'- 0 N M m (0 cO m ..- ..t ui c:i m a:> ('1)0 N 0 I'- m ('I) a:> (0 (0 a:> ('I) a:> m (() a:> I'- I'- m ..- a:> Ii) I'- Ii) '<t Ii) 0 0 mli)a:> a:> NOID..... ..- N. a:> Ii) Mc.6('1)m ..- ooc.6 cO N- u-i 0) ('1)- 0) ...: cO..-cO cO ~ ~ "\""' "\""' N..-('I) IDVIi) III III Q) C Q) lIlOU. al 'in E u.lGltl L.. 0 L.. ~ :5 e ::>00.. ...J <C (3 Z <C Z LL Q) E 8 III C ro L.. c~ Q)..... 0:::0 0001i)000 .....(()(()I'-OOO '<t..-..-ID(()OO c.6 u-i c.6 '<t- u-i ci r--: 1i)('I)ID'<tNN..... -:1""- ..- 'iF-'iF-'iF-'iF- NI'-(Om ..-'<t(OM ..-..- ..- li)00a:>000 oa:>a:>a:>ooo NIi)ONCOOIi) cO r--: cO N- N ci cO N(oNI'-..-..- N ~ III Q) ~ a3 0.(9 ~ ~g., C oCl):5 ~ 'in E:;;; 2lGlG~m :e U L.. e :rl 0..0::: 'm o III Q) ~ ~al E ..clllOU. 8 l!! Q) 'in E Q) Q) III ell III C .oE~~L..2L.. Q)Q)coc~ III 0 L.. Q) ..... ::2::>00..0:::0 Q) .~ ~ ~ c ..... ell ,!!1 C III ,50 ~ ,~ 0 E ,- = C 0 -ultl:;;;OL.. <(::2::>00.. III . . . ~ c: ity COline i I Agcnda - 07/23/0 I etition fl.)r a 1nexation in accordance with State law. (J()) REFERENCE AND BACKGROUND Gold Nugget has submitted a request for mexation of the entire area encompassed by the Pine Meadows development area. G Id Nugget has made the request under Minnesota Statue 414.033 which provides that, if a City has approved a preliminary plat for a subdivision to provide residential lot averaging 21.780 square feet or less in area, the City may annex the property by ordin nee. After reviewing the file, staff could not find action to approve the preliminary pIa by the City Council. The preliminary plat was recommended for approval by the Plannin -,- Commission in March of 1999, but was later tabled by the City Counci I. The 120 day ule which says a plat is approved if no action is taken within 120 days does not apply bee use the land was in the township during platting review. The letter requesting annexation indicates a willingness hy Gold Nugget to participate in land use discussions, however they request that the discussions be done concurrently with the annexation process. Based on recent discussions by the City C )Uncil regarding land use issues, it is City staffs understanding that the City Counci desires to study the area and examine the possibility of amending the comprehensiv plan atl'eeting this area. Currently the area is guided for residential uses only. The com rehensivc plan amendment might result in a mix of uses in the area. It would not appe r sensible or consistent to annex the entire parcel under the statute cited and then cha ge the land use from residential to a mix of uses. From a staff standpoint it would ma 'e more sense to review and amend the comprehensive plan, then look at the pote tial for annexation. If on the other hand the City Council wou d like to follow the residential development plan as approved in concept stage and late tabled at preliminary plat stage, then Council could accept the petition and call for the p blic hearing leading to potential annexation by ordinance. ALTERNATIVE ACrlON I. (Petitioner's request) Motion to ac ept annexation request and follow annexation by ordinance process as prescribe by Minnesota Statue 414.033 and call for a public hearing regarding said annexation. Council should select this option i 'they would rather follow the original residential development plan and void further litigation with Gold Nugget on this matter. It is the view of the City A torney that Gold Nugget would not likely be successful in forcing the City to at nex the property and allow development as identified in the Pine Meadows pI n. . City Council Agenda - 07/23/01 2. Motion to table or deny request an I call for a public bearing on a potential amendment to the Comprehensive Plan fiJr the City Annexation requests relating to this parcel to be considered aite the comprehensive plan review is complete. Under this alternative the Plannin Commission would work with the interested parties in developing a land use sc erne for the area. Perhaps representatives from the City Council could help lead 0 participate in the review process. It is expected that the earliest that com rehensive plan review and amendment would occur would be in September. STAFF RECOMMENDATION I f Council is interested in reexamining th land use at the Gold Nugget site it is recommended that the land use be detcrm'ned before annexation is considered as noted under alternative 2. SUPPOR"TlNG DATA . Copy of letter and petition lrom Gold Nu get. . 2 ~, .__.~- ,~- .-. - . . . KAREN E. ARTY Attorney t Law 3601 Minnesota Drive Suite 880 Bloomington, MN 55435 Mr. Jeff O'Neill Assistant City Administrator City of Monticello 250 East Broadway Monticello, MN 55362 Re: Annexation of Pine Meadows Dear Mr. O'Neill: July 2, 2001 e- Gold Nugget Development, Inc. is hereby ormally requesting annexation in accordance with state law. As you know, on June 19,2001, t e Minnesota Court of Appeals ruled that the Joint Planning Board's adoption of its comprehen ive plan was "invalid and a nullity." As a result, there is no comprehensive plan covering th annexation area, and the Orderly Annexation Resolution, Resolution No. 98-7, sunsetted due to the failure of the Planning Board to properly adopt a land use plan by July 8, 1999. This leave the City free to annex under state law. Minnesota Stat. 9414.033 provides that, i a City has approved a preliminary plat for a subdivision to provide residential lots averaging 1,780 square feet or less in area, the City may annex the property by ordinance. Gold Nugget is requesting that you do this. The lots in their proposed development, Pine Meadows, are under this size limitation. By operation oflaw, under Minn. Stat. Se .462.358, Subd. 3b, Gold Nugget's prelimina.."'"'j plat for Pine Meadows was approved sometime in early 1999. If you do not agree, then rather than litigating the issue, and in the int rest of working cooperatively with the City, Gold Nugget is requesting that you bring the pre! minary plat before the City Council for approval as soon as possible. Although it is Gold Nugget's desire to de elop this property in accordance with the City's comprehensive plan, Gold Nugget also is ware that the City may want to review the land use. Gold Nugget is willing to participate in the e land use discussions. We do ask, however, that this be done concurrently with the annexatio process. The land cannot be zoned or developed until it has been annexed, which gives the City plenty oftime to review and, if desired, revise the comprehensive plan. . . . Thank you for your consideration. If you ha e any questions or if there is any further information you would like, please feel free to cont ct me or Horst Graser. cc: Horst Graser, Gold Nugget 812-1,' ncerely;, ~hj~ / ' Karen E. Marty'.,:' Attorney at Law i ' V - ,.- --'~'-"._~ . PETITION FOR ANNEXA T ON BY ORDINANCE IN THE MATTER OF T E PETITION OF GOLD NUGGET DEVELOPMEN , INe. AND OCELLO, INC. FOR ANNEXATION URSUANT TO MINNESOTA STATUTES SE nON 414.033, SUBD. 5 To: City Council of the City of Monticello, Mi It is hereby requested, by all of the' land own rs of the area proposed for annexation, that certain property, lying in the Town of Monticello, b annexed to the City of Monticello, County of Wright, Minnesota. This property is described a follows: The South one-half of the West one-half of . he Northwest one-quarter of Section 23, I Township 121, Range 25, Wright County innesota, and . The North one-half of the West one-half of e Northwest Quarter of Section 23, Township 121, Range 23, Wright County, d i The East one-half of the Northwest QuarteriofSection 23, Township 121, Range 23, Wright County, Minnesota, excepting there' om the South 933 feet of the East 933 feet, both measured at right angles. I 1. This area has been approved after AJ gust 1, 1995, by a preliminary plat for subdivision as Pine Meadows to pr vide residential lots that average 21,780 square feet or less in area, and is 10 ated within two miles of the municipal limits. That part of the Northeast Quarter ofSectio 22, Township 121, Range 25, Wright County, lying East of the easterly right-of- ay of State Trunk Highway No. 25, and 2. All of the landowners of the parcel 0 be annexed are requesting this annexation. 3. The property proposed for the anne ation is now or is about to become urban or suburban in character. 4. The City of Monticello is capable 0 providing the services required by this parcel within a reasonable time. The exis ing township form of government is not adequate to protect the public heal , safety, and welfare Petitioners' request: That the property desc 'bed herein be annexed to and included within the City 0 Montie Date' - U# I . Au Dail~s- - 2## / j/ ----- . . . lie City Council Agenda - 07/23/0 I A. REFERENCE AND BACKGRO D The Parks Commission reviewed this is ue with two concerned property owners and was somewhat sympathetic to thc petiti ners concerns but voted unanimously to recommend that the trail alignment re ain as identified in the pathway plan. The City has received a petition from pro erty owners along Mill Trail Lane who have expressed a concern that construction of a trail behind their property will reduce their privacy and will result in an increase in fr eway noise due to removal of trees. A copy of the petition is attached for your review. ith regard to issues of privacy, the trai I system as proposed will be far removed from the ndividual residences as compared to other trails that are currently constructed throug out the community. Please review the attached graphic showing the approximat location of the trail in relationship to the homes located to the north of the trail. A you can see there is a considerable distance between the backs of the lot lines and the ocation of the trail, with the exception of one of the lots where the trail will skirt one co ner of the property. Due ot the density of the undergrowth in the area, it is very likely t at in the summer time it will he nearly impossihle to even see people using the tr il in viewing the trail from the residences adjacent to the trail. In reviewing the alig ment of the trail it is clear that the trail can be set to meander through the forest in a ma ner avoiding major trees and will he cut to a width of approximately 12 feet which is a very sma]] percentage of the total vegetated area. One of the petitioners later called to requ st that her name he taken off the petition as she supports development of the trail. There are a numher of pathways located ehind and adjacent to residential lots throughout the City. The city receives ve y few negative comments regarding pathways located adjacent to properties, in fact fro time to time we also hear positive comments regarding pathways located adjacent to in ividual properties. In summary. the City has not experience problems with regard to reduction in property values or negative comments regarding p thways adjacent to residential properties. In addition, the pathway as it is proposed, w'th the exception of one lot, will not be located very close to the neighboring residential roperties, therefore the residential properties will retain a sense of pri vacy anyway. City COllllcil Agenda - 07/23/01 . With regard to removal of trees and potent'al increase in freeway noise, the trail system can be designed to miss the major trees an the underbrush that will be removed with this pathway is incidental as compared to the tl tal amount or vegetation on this parcel. Therefore, it would not appear that the inst illation of this pathway will have a measurable effect on the freeway noise. Following are some reasons why this path ay was identified at this location: 1 . Ease of access to City Park and poi 1ts west. The proposed trail segment runs along a ridge at an elevation level ith the top of the sliding hill. This enables residents from the area to travel to he east along the ridge line without having to go down into the park and back up again to get to points east. Therefore, simply from a point A to point B stanupoi t this is the most direct and easiest route to get people from the Gillard/River Forest area to the top of the sliding hill ,md then on to Hat1 Blvd. which leads directly 0 the City's pathway spine along County State Highway 75. Removal orthis trail segment would force pedestrians and bikers down either to the park or to a lac tion where the pathway could be extended up through River Mill 6th, back to a s stem intersection with the trail at the top of the sliding hill. Such an alternative w uld not be nearly as convenient as simply allowing people to walk or ride all ng the ridge line. . 2. Park Development. Development f this pathway is more than creating a segment of our transportation network, it is also an extension of the nearby park. The woods through which this path wo lid meander are very think and lush and represent a kind of pocket wildern ss through which people can walk. It definitely has some wonderful aUr butes as a park area. It is wonderful when you can combine the benefits of a path ay that is practical with a park area that is beauti ful. 3. This parkland is being provided to the City at no cost by the Developer ofthe River Mill plat. This is being grat ted as a donation to the public for public use. Without a pathway through this ar a the land will be somewhat useless and inaccessible, and perhaps then betel' sold off to the adjoining property owners. Given the hlct that there was no p'rk dedication with Sandberg East due to its development in the early 1980's, < nd due to the fact ~hat there was no additional park land acquired with River For 'st development it would only make sense to preserve this area for park use. T e only way to make good park use out of it is to extend a pathway through it. . City Council Agenda - 07/23/01 . B. Al,TERNATIVE ACTIONS Decision I: 1. Motion to maintain Outlot A as a p ssive park area and allow trail through outlot to remain in plan. Motion based m the finding that the trail segment is an important part orthe City's compr 'hensive park and pathway plan. It provides access to a park setting and a direc~ route to and from important locations. The Parks Commission did not bel eve that privacy is an issue, however they did direct the City Engineer to conside adding Pine plantings or other screening vegetation in the small area adjace t to one of the homes on Mill Trail Lane. 2. Motion to remove the trail segmen from the City's pathway plan based on findings made by the Parks Comm ssion. If the City Council feels that priva y is an issue, then we will need to completely re-Iook at the way we develop pat way systems in the community as a whole and no longer allow pathways near res~ ential properties. Decision 2: ----. I. Motion to authorize preparation ot! a feasibility study. I If Council would like to get this p loject moving then it should consider ordering the study. The Parks Commissioj recommended that the City Council start the process by ordering the stud . The sooner the path is done, the sooner we will be able to direct pedestd ns/bikes to CSAH 75/39 via a neighborhood route. 2. Motion to delay or table authoriza' ion to prepare a feasibility study. C. RECOMMENDATION Although the residents have some very v, lid concerns that many residents have when they are introduced to the concept of a pa, hway near their property, I think that it is clear that pathways adjacent to residential prop rties have not been a problem in the community. have not resulted in deprecia ed land value or other problems. This particular patbway is not adjacent to the ,omes, but is rather tucked back in a wooded area therefore privacy should not be an is' ue. Tree removal will be minimal with this --- . City Council ^gcnda - 07/23/01 project therefore the impact on freeway no se will not be measurable. StaiTbelieves that this trail will be one of the most scenic trail in the community and will be a much valued amenity to the neighborhood upon complet on. Alternative routing of pedestrian/bike riders on the parallel street and then betweel properties to the top of the sliding hill, though feasible, would not be nearly as des rable as the pathway alignment as proposed through the wooded area and along the ridg line. D. SUPPORTING DATA Pathway plan. Copy of the River Mill 6th plat. . . 4 ~....", . . . --<"'r~.o We, residents living in River Mill Hous g Development, who are opposed to the construction of a new walk path at is going to be put behind the houses on Mill Trail Lane have signedelow. We strongly stress concern in having a walkway put behind houses ady built for the purpose of privacy with all the trees. To have more trees ri ed out will add to the freeway noise, and cause more traffic to a beautiful wo ded area. We would appreciate if a walk path started after the last house on Mill Trail Lane and continued on to the park, we do not see the need to mal<J a trail that we as residents would not use. Those who oppose to walk path: JQ'SOr1 (Lvl d Ltdeh'c (tritZ 95q3 ml"'1 Ivo..il t...D.ne- *c\~--r ? 13A~O;-tdJ\-lJ D ctS"1 ( (\\l\ ~~r6d LA~L ~:;~J\ ~ 9fm. \\\~U ~ I ',\ . () (; ,J ! () ,) ,. i'\ ... ,..1) " <', "? /) ('! / ;1/1.AJ- : J)~- €I V~I I'J,/~f~/~ 1 0/( /~i; ,r:;1"/ _ ,:'. C ,/ .,c,~ i""' / " ~.~ ~: ~i q5~ lo I ".II T; , Thank You. ~\W"\.. ~ Sl.:~, ~'-' l'i \i S; (tel' "",,' I wT('(k~ l \Sl\r'Q .I '.,' \, -' , ( ,....Q""'J...-,' III - 0 (;:J C,(' j ,/ /t.~., ( '-- Ie, \ / ' ')-f' ( , I/" "- ?' /lR- ; , Lv" - jLJ~ fYlil'[r4/ Lil // ' A-- v '(; , ~"") p~ q5<69 #\ iLL TRA J L J..AA/t- . . . . ~L 6TH .ADDITION '" ~ {I(~~ 'PJ Jl-- " lJlCt rr\ ->cc:.-r- ,- v r\ 1..-'-' I EAST UNE ~1tOT A RIVER MILL 411-1 ADDlllON~.... ^ t""\ t""\ IT' r\" I... '\, ,.-..uul' IVI'I, \ 50103l,'21.E 4.60 \ -) \I 11--) KI V c.K 1\ I t""\ I'lL) -- I I f I I () LUOO~5 , , I '" O~ 1':'8 510 i --- .IlIW1i;ola&' mD f1I7Llf'T ~ ~ SllOrN f'Bf18: I I L\I I Ie I I I __J:.____J L___.:_l__ 8 ~ ., , I" '"01.. 0; SlING , ~ Dl IflDrB mD /JWOI1IDIt} UJf' UNft. UNUSB OfU1lrrsl 1N1Jl(JJ.ffiJ. mD 111 nn Di IflD2!l JJI1J ADJOllflNC Rrollf' Id r...r LDaB , UNUBB ~rIU 1N1Jl(JJ.ttD, J.B SllOrN ON 'I7U pur. ... 0'. ,<-, c'j" .~J f i WOcJs , '" /-'.... 't...... fo-; I L J,C^' oLD- r- ...../ ... . ~~ ~... PO?711~ C,DC-<.>--ftM tOl - breJ!.-V'o. po" {> PI <>^ l<-C? ~'U6 't "50et' '-'\ Q:- ~v ~~ / \ " ",," \~\\'"' ........~ ..(\ '..J \ ('" " t-Vv' t~ (' in~ i- ~t ~ ~!- I' , I If I:, -- -- \<.:.~ ,'>IV ~\ '"-<P -' "~J 30 60 If' SCAU: 1M FW . DnfOf76 lRDN JtONI1IIZ1" roUND . ".-/ o ~ 1~ lJICl1 ST 14 lNClllllON PIn or Di 'I7U flIIOOJID JJIl) IWIDD ST UC8ND No. UH4. rll1CIl I'JU U sn fIIf'Il1N 0Ia RM ...". 'I7U JVCQ/Ul/NGl lW'Jr 01' nIlI' PUr'. ".-/ / " - ~~.I ~ .Ii v I~ ~ ~ ~ a ~ l j ~ ~ ,i ?-- :3= 'i .~ h: :l:!'S 0 U v; on ::s ---:!G:- <:> <:> I- ~ UJ UJ .... <> 8 '" ~ <:> <:> e ~ ~ u <:> '" ::J ~ ~~ ... - . ,; --,. .. ~ -= (]) e (]) ~ ~ "'C o ~ (]) ~ .l"""'4 ~ ..lo . , ~ ~ · 'I'"""l = ~ o d .[jj ~ d ~ ~ OJ .~-(])5 "'C ~ ~ ~ .~ ~ ~ ~CZ2 ~ ~ .,.c .~ ~ ,....... o ] u r:/'J (]) ~ "'0- -- "'0 ~ ~ : \ \ \ f1\ ~ \('. ~ ?~'.:J ~'~ ~ \()r~~ ~.~ 't ~~ J ~~y..~ ~~ f t-~ fr~ I'> L ~ ~. ~ ~ "'-' F "@ ~~ ~ r~~ W i'& ~ J-~ ------ --~~---........- -------~~--~- -------._----~ Gillard Avenue ....-~,- ~ ~ SL ~ In n- " , $:) Z \]\J " (Y 0:> (j) cs: ([) n- (\:) ~ z C) rl- S- ~ $:) (j) n- J> , ~ $:) . 16. . . City Council Agenda ~ 07/23/01 A. REfERENCE AND BACKGROU The Parks Commission reviewed this re uest in terms of the trail plan and recommends that the plan be amended 0 include this segment. The Commission also recommended that the City Counci authorize preparation of a feasibility study examining design and costs associated ith installation of pathway along Gillard Avenue hetween East 39 and 95th Street As you know, a number of property owne s that live along Gillard Avenue have submitted a petition requesting installatio of a pathway along Gillard Ave. The residents feel that Gillard Ave. is not wid enough to handle both vehicle and pedestrian traffic. It is their view that the current de ign ofthe roadway does not create a safe situation for pedestrians and bike riders. few weeks ago there was a near tragedy when a young boys was hit by a vehicle on Gill rd. fortunately, the boy was not severely injured. As you know there was an accid nt earlier this year at the intersection of East 39 and Gillard. The design of Gillard proba ly did not add to the circumstances leading to this accident, however it illustrates the ne d for development of a pathway system leading from this area of community to the spine )fthe City's pathway system without the need to use East Co Rd 39. The City Council is asked to review the r sident's request for development of a pathway at this location and determine whether or not this segment should be included in the City's system. If this segment is identifi d as being a necessary part of the City's pathway system, then the project cost co Id be funded under the City's funding policy which has the residents pay 25% and the City 75%. If however, the City Council determincs that the pathway system sho ld not be part of the City's plan, then the property owners could petition for the i provement, however they would be responsible for paying a larger share of the cost of t e pathway. From a design standpoint it should be n ted that the current City standards would require development of a sidewalk or pathway' this location.as the traffic on Gillard exceeds 200 vehicles per day. If this road were eing constructed today it would be at least 32 feet wide and would include constructio of an ofr-road pathway or sidewalk. Also if constructed today the developer creatin the subdivision and road system would be responsible for paying for the full cost l' installation of the sidewalk or pathway. The City pathway system serving Gilla d Ave. intersects with Gillard at two locations. ._ - 1- City Council Agcnda - 07/23/01 . On the northern end it connects to an on- oad pathway along E. Co Rd 39. Development of an ()\1-road pathway along E. 39 is con istent with the County's policy to allow to develop widened shoulders for pedestria and bike use. The City did not include off--road pathway along 39 in its plan because of t e wide shoulders. The current plan also shows a southern route through the residential a ea for moving pedestrians/bikes from Gillard to 39/CSAH 75. This route hrings pedestri ns through the River Forest and River Mill developments, through the City Park and up to llart Boulevard where sidewalk takes pedestrians through the Riverview Squar development to a future sidewalk or pathway to he built hetween Riverview Square an the controlled intersection at East 39/CSAH75. Residents living along Gillard have acce s to this trail system at the southern end of Gillard Ave. near the intersection of95lh. In order for residents along Gillard to get to the trail access, they must walk or ride on Gi lard Ave. The question is, "should an additional trial segment be identified on Gillard A v . to get pedestrians and bicyclists safely from their homes to the trial segment at the so th end of Gillard Ave.?". If so, this trail segment should be added to the City's co lprehensive trail plan program. H. ALTERNA TlVE ACTIONS: Decision 1: . 1. Motion to add a trial segment alo g Gillard Ave. to the City's trail and pathway plan. Motion based on the findin J that the current traflic count. traffic speed and visibility along with housing den 'ity make it necessary to develop an off-road pathway system to assure safe m vement of pedestrians and bicyclists from residences to existing pathway systems. The current road is not wide enough nor designed to safely handle both pedestrian and vehicular traffic. Under this alternative, the trail segment would be identified in the City's pathway plan and the residents, at Counci discretion, could he eligihle to have 75% of the pathway cost paid by the City wi h 25% paid hy the property owners. 2. Motion to deny amending the tra I and pathway plan by adding this trail segment to the plan. The City Counci I should select t is alternative if it believes that the trail and pathway is not necessary to maintain safe pedestrian movement from current residences along Gillard Ave. to he existing pathway system. . 2 . . . ~ Decision 2: City Coullcil Agenda ~ 07/23/01 I. Motion to authorize preparation f feasibility study. Under this alternative, design an costs associated with construction of a pathway along Gillard A venue or along th rear lot line of the benefitting lots. Please note that the residents in attendance at the Parks Commission did not seem eager to support the route in the rear ofth ir lots because their lots are so deep and due to trees, some would have poor ace ss to the trail. 'rhey also did not believe that they would get all property owne. s to grant the necessary easements. c~ 2. Motion to deny preparation offe sibility study. C. RECOMMENDATION It is the view of the Parks Commission a d City StafT that this segment should be included in the pathway system. The cu ent situation could be improved with installation ofa pathway either along Gil ard Ave. or along the rear lot lines of the homes along Gillard Ave. The feasibility study ill help determine which alignment makes the most sense. The current road design wo ld not be approved ifbeing constructed today and thereliJre steps should be taken to en ance the safety and livability of this area through installation of an otT-road path 0 sidewalk. D. SUPPORTING DATA Copy of pathway plan and northeast area pedestrian bike system. Copy of petition from property owners. 3 . PET TION DATE: Monday July 9, 2001 RE: Petitioning for Bike Path This is to petition a bike path on Gillard Avenue NE and also better access to the Monticello Bike Path System without the use of Highway 39. i. ~arl & Kim ~ () 96 Gillard Ave NE 13 Leon & Lori Freese 9621 Gillard Ave NE 295-5127 12 . John & Gina Young 9631 Gillard Ave NE 295-3836 11 Richard Busch 9651 Gillard Ave NE 2953441 10 Bob & Jenna 9 Kevin & Pat Fair 9681 Gillard Ave NE 295 6639 8 John & Marjom Gurney 9691 Gillard Ave NE 295 8254 7 6 FOR SALE 5 4 Clint Herbst 9801 Gillard Ave NE 295 4883 3 2 . . . . Council Agenda - 7/23/0 1 17. lJ date on action taken with re analvsis. (R W) A. REFERENCE AND BACKGROUND: WSB & Associates has been sctting up traf IC counting equipment that also can identify specd ofvehides along Oakwood Drive and Gilla d Avenue. They will be preparing a report on their findings and will be presenting this in ormation to the Council Monday night. Trat11e engineer, Chuck Riekart of WSB is Iso analyzing whether any locations along Oakwood Drivc and/or G-illard A venue can support additional stop signs, and will also have this inkmnation available Monday evening. In the meantime, the Public Works Department has contacted the Sheriffs Department to g ther information on traHic incidences and the number of calls that have occurred from th se areas and will be providing an update to the Council at the meeting. . . . 18. Consideration of a rovin T bids - Walnut Street proiect. A. REfERENCE AND BACKGROUND City Council Agenda - 07/23/01 cifications and authorizin ' advertisement for City Council is asked to consider approving plans and specifications and authorizing advertisement for bids for the Walnut St eet sidewalk project. Subsequent to the previous review by City Council, staff has taken t e liberty to add certain elements for Council consideration. Some of the elements res lit from petitions by benefitting property owners and others are at the initiation of City St ff. Please review the potential additions to the project and determine which items shoul remain and which should be removed from the plans. Items Petitioned by Benefitting roperty Owners - Funded by Petitioner. Additional landscaping and rock alon the tracks between the Towne Centre site and the Library/First National Bank. The total cost is estimated at $17,000. Towne Centre agrees to pay 63% ($11,025) oft e projected cost with the City paying 34% ($5,959). In earlier action the City Cou cil rejected installation of landscaping along the entire corridor between Hwy 25 and Ma Ie Street. The proposal here scales back the landscaping to a one block area. Development of a crosswalk at the sa e elevation as the curb. The developer has agreed to pay for the entire cost ($13,20 ) to develop a Walnut Street crosswalk set at the same elevation as the curb which would connect the Towne Centre site with the Community Center. The developer paid for the design as prepared by the City Engineer. The slightly elevated crosswalk enhance pedestrian safety and will help to slow traffic on Walnut Street. 'fhis min-project wil require relocation of storm sewer facilities. The slope on Walnut leading to the cross wa k is set at 10-1. According to the City Engineer the slope should not interfere with snow plowing operations. The proposed crosswalk is not supported by the Public Works depatment because it is believed by the department that plowing snow will be affected, poss bly requiring additional equipment and manpower. Following are items that have not been requested by property owners and if ordered would e funded by the City: Walnut Street Parking Stalls. As you know the Towne Centre development has been given approval for a 2,500 square foot r staurant subject to an acceptable arrangement . B. 1. . . . . . City COllncil Agenda ~ 07/23/01 regarding cost sharing on the parking i provcments... with the developer funding the full cost to provide additional parking on alnut Street (overflow parking), this includes parking on both the Library side and th Sunny Fresh side. The cost to complete this is $21,600 or about $1,350 per stall. The eveloper has agreed to pay for half of the Library parking lot expansion and has agreed to pay f()r half the Library side of the Walnut Street parking or ($10,800), Council may wan to withdraw this portion of the project if it wants full funding from Towne Centre of the alnut Street Parking. Please note that statThas asked Sunny Fresh if they are interested in funding the Sunny Fresh side. We are waiting for a response. Additional Trees. City staff reviewed he boulevard areas where sidewalk will be installed and found a number of locatio s where simple tree plantings would enhance the area. The revised plans call for 35 addit onal trees at a cost of $8,750. It is proposed that funds for the additional trees come from the tree fund which currently has a balance of $70,000. ALTERNA TlVE ACTIONS Motion to approve plans and spe ificatiol1s for Walnut Street sidewalk project and add a combination of the followi g elements to the project. (Council please select). Landscaping along track shared f nding by developer and City. Development of crosswalk at sid walk elevation paid by developer. Development of 16 head-in parki g stalls along Walnut Street. 50% paid by Towne Centre, 50lYo City or Sunn Fresh, to be determined. Additional tree planting paid fro City tree fund. None of the above '2. Motion to deny approval of plans and specifications for said project. C. STAFF RECOMMENDATION Staff recommends that Council select aIt rnative one with additionaJ clements as selected by Council. D. SUPPORTING DATA Various plan information . 2 . . . 'fhe following arc rcasons why the Public Work' Department does not support thc at-sidcwalk grade crosswalk: Thc proposed layout and profile for the crossing would have four different grade changes. The most severc of which would be to the south oft e proposed crosswalk in thc arc a ofthc 5th Street intersection. This dip coupled with the abrupt ri e for the crosswalk could cause some vehicles to become airhorne at spccds bctween 20 - 30 m h. The effcct ofvchicle hreaking at this point could also create some problems for lower vehicles such as those driven by the MN Street Rod Association. To change this configuration woul rcquire changing the entire intersection grade. During snowplow operations, the change in gra e going over the crossing may cause our heavy shoe less snow plows to catch the pavers. This c uld be improved by the installation of patterned concrete rather than pavers. It may be necessary to post yellow and black ad isory speed signs approaching the crosswalk and these would certainly detract from thc area. The changes in grade with the crosswalk now be oming a damn for the water from the north complicates the drainage patterns. The freeze/th w cycles in early wintcr and spring will cause the catch basins to freeze over and we could hav some interesting icing conditions in this area. This crosswalk would be a one of a kind situatio in the city of Monticello, which are normally used only in non freezing climates in areas such s the west coast. It is possible that it could become more of a long term liability to LIS rather than a benefit to pedestrian safety. Would the City pay all the costs f()r maintenance or removi g the raised crosswalk in the future? Ju 1 17 01 12: 11 p ~SB L Associates Inc. p.2 . r"- I \ ''--'''' .. I \\ I "'-..--,' . /,,/ I \~ \ ' \ ) ----' . ",V'\ ....... 320-252-3100 ~ '1 ' ,~ tI..: ,~ , r-.------.---..---.--.-.---~ - : ~ 10.. ~ !~ ~ ~ !I.u ~ ~ .. ^ .....' .I"; '.... .... "'"" .... I . " ~~ ~~~ ~ -~ ~'7'~ ~ ~"'-+ ~~ tJ I..... ~ ~ N "^ , --, f" I "''';.. \ \ \ '\ ')- \ N \ \........__/; \ ' '1 \" l:"'" "" ... ~ , '- \.l "'+-- 1),' ~ '\.i .~ I : , ..... \. \ \ \ \. -........................ -. "- ..........--...- --A o o ---...--._--------~~.--~- Jun 28 01 09:28a , . A WSB /: , I / i i , / ! ! I I i ~ i -TT------rj I t Ii I! i i I j i I II i I --L~i , ~ j ; \ \ \ \ \ i \ \ I \1 \ ' ., I ~SB & Associates. Inc. 320-252-3100 p.3 /1 .f : )f t I I i / l/ '--_U_'-'---'-i J I J , ' 1r---1\ ,/! i \ ......~ ,~ // // r-"'" ! r ~ .......-- ' ", ,,~.... ...~ / .;.' / /' if" !'~ /' 1.- I o 20 .0 Ton entre Sidewalk rossillg Project COD pt Plan Monticello, esota WSB PnrjIct No. 1316-002 DIll: J~ 7, 2001 Cir PIqat: No. UO~.... 0llIllI0 8441 ~ Iclule\/8ld MImIIpoII. UN 55421 nM4l.... .~ IJc FAllll4M7llO INFRASTRUCTURE . ENGINEfJUl . PlANNERS Figure 2 Ju':'l 28 01 05:28a ~SB & As~ociates, Inc. 320-252-3100 '.w' , , , , , I !! I ! I I II' I I , 'I ! i ' 1 ! I I i ,~ I i I " fl. "'" I I I '\! ~AV~AGE CATCH 8ASIN ~EMO~E 18'~ 12- RCP 'I , /SAVL~GE CA1.CH 8ASIN I I I ! I I ! I I ~ I' If I! I! II Ii ~ I. ' _lL__ t. --, I i . I SAYLAC' CArCHi8ASIN i i I : REMOVE ~8'- 121 RCP I I I I .-' i REMOYE CATfH BASIN .~~VE 38'1 12" RCP RE~VE 17'~ '2- RCP I I .r---" :1 1" i I I \ ,/ I I '. ,,' -,"." / ,/ /' ./ \ t \ i \ I \ , i \ i .. t \ \ . \1 La end \ ! REWOYE BITUMINOUS PAVEMENT reBI MILL BITUlollNllJS PAVEMENT ~ REMOYE CONCRETE PAVEMENT REWOVE CONCRETE CUR8 AND GUTTER //-:.:.:-:~ . '7 j/,f/" / '1 ~ o 20 . WS8 'I&B PnljlId No. 1315-0112 DaIB: JIJy 7, 2llO1 ClIy Pn:ij<<t No. >>0 """'*""-' ...... omo. 1M4' WIyaIllIkll*wnl Mlmelpllle, NN ll5Gll Ton Sidewalk Project Co ept PIaD Monticello, Minnesota Figure 1 .,2-44,...... .__ FUS"-11OO INFRASlRUCTlJRE - ENGINEERS . Pl.ANNERS p."1- ~ ~o Jun 28 01 OS:27a WSB & Associates, Inc. 320-252-3100 p.2 . Engineer's Opinion of Pro able Cost City of Monticell Walnut Street Sidewalk Impro ements Towne Centre Crosswalk Re Isions WSB Project No. 1315-0 2 ~~. ~ ~. ~rl ,... 'Tt~. fT':~~~=>'ff:m:u-'I~~..-!~""~~~! ""'~ \1..t:;::T.:W-~"'f",!,"""""p.t"1TJ1 ':V"''''''-':::''':'';'I'''T'";P'-j~ffl_r1 f',~."'T~'~-' ,,:'"'""";o:r 1\ "1j't'f11~"'lI"~ t! I" t'I"f.T.":f~'" r,~'W;:TI:J7ff.17r~Ul.rr'r.'i"~~~~...~s "'cJ.'--r;[1 ~,,'d<l.!. ~'I' ;';;;;5 ;,, -" ",- -'-,:.[...1""' I' J. .;, . 'rl';'I'.'J ,'r,,".:"~;:.-,: " ,\'.': "1. '.:':',., .1.1 f', '.,; '-"'"f., ,.' .,1 _ ".,t, '(''''::=,.", (,~ ,~;0-~.~-,---:,.*_.,:;....::::;....;;",~.~."~ci~.:...:.g;,;~~~,..d~~~ ITEM SPEC. UNIT TOTAL I NO. NO. DESCRIPTION QUANTITY UNIT COST COST I 1 2104,501 REMOVE CONCRETE VALLEY GUTTER 78 L.F. $3.00 $230 2 2104.501 REMOVE CONCRETE CURB & GUTTER 124 L.F. $3.00 $370 3 2104.501 REMOVE STORM SEWER PIPE 90 L.F. $8.75 $790 ~ 4 2104.503 REMOVE CONCRETE SIDEWAL.K 17 S.Y. $4.50 $80 5 2104.505 REMOVE BITUMINOUS PAVING 240 S.Y. $2.50 $600 6 2104.509 REMOVE CATCH BASINS 1 EACH $350.00 $350 i 7 SALVAGE AND REINSTALL CATCH BASINS 3 EACH $800.00 $2,400 8 2104.613 SAWING BITIMINOUS PAVEMENT 154 L.F. $2.50 $390 9 MILL BITUMINOUS PAVEMENT 45 S.Y. $5.00 $230 10 2331.508 BITUMINOUS WEAR COURSE lTVPE 41) 2.0" THIC 28 TON $45.00 $1,240 11 2331.514 BITUMINOUS BASE COURSE(TYPE 31) 2.0" THIC~ 26 TON $45.00 $1,240 :~ 2331.518 BITUMINOUS MIXTURE FOR TACK COAT 13 GAL $1.26 $20 252 Hi01 CONCRETE WALK 4" THICK 116 SF $2.25 $260 2531.501 CONCRETE CURB & GUTTER DESIGN,VALLEY GU "fER 84 L.F. $8.25 $690 15 2531.501 CONCRETE CURB & GUTTER.DESIGN B618 127 L.F. $6.25 $1,050 Total Schedule A = $9.940 w..) l I ~ -' ~-- 'r '. ~I 1'-"""'1> '-:F4""I" f,"n ."11 ;.'Yrrt~~ ". '~~rl'l''''~~,,1 , :1'/VT;>; "f":'=1-,.,..... ,....q....,.....,,-"'~. .~.I'l .....rr9m.:;-~ 11.1:"~ - r tJ"1 T;T""l.U l'l~ r.1!:.' """n'l.. "rT""""- r~":r~t. =..: 1[::;r.f.,>T....-r:->;::~lm"'"'".y~'~I~'~"..~~ ... T T'I '(' ,..' ~iil)i~I1B;1~lW,'jjL' '. , .. 'I' t ,I " ,I > .-" . "',4I"~ ,_,'d., ,- r"'"'"", ,,, .,. '~ ',^_." "rr_"lIl~;~-I. _" ".' ~_",,_..,,~;_ ..' ~,{:::..,,_",.,-.~~ t }___i~...~~ ~~~>tt..:'~,~~C!bcll.J.~.-...o......!I""'~.,;~c:...:D~ !iJ;!;;:l'"~7..w....J>...:I~~ ITEM UNIT TOTAL NO. DESCRIPTION QUANTITY UNIT COST COST 16 2503.5'11 12" RC PIPE SEWER. CL V 27 L.F. $25.00 $660 17 INSTALL SALVAGED STORM SewER 90 L.F. $15.00 $1,350 18 2506.522 ADJUST FRAME & CASTING 1 EACH $205.00 $210 19 2506.602 CONNECT INTO EX. DRAINAGE STRUCTURE 2 EACH $500.00 $1,000 Total Schedule B "" $3.240 TOTAL CONSTRUCTION COST '" $13,180 10% CONTINGENCY'" $1,318 TOTAL COST"" 14,498 . ----..- Design by: MWM Date: MJN .. . . ProgresSive Dev & Const PHONE NO. 28 7759 Jul. 23 2001 12:22PM P2 p pZ,/2. ~ 2S "38 04: a6PM ctTY OF l'O"/TICD..L.O crrrOJ'M CEJ'.T1'l .PE~T.(ION FOB. .ANNEXATION Owner-s Nam~~ AddreSS: OC!LLO. LLC 1875 Co ercial Blvd., NW.. Andover, ~ 55304 phone: 763-755-6554 To the CoQ11Ci1 of the City of Monticello, 1, the ~ the owner-of the terri: daacnDec! below, hereby ~ the . City Council ofMonticeno, )6i,"""AlU\ta, to !a......#r this territory to the city and to utAmd the ci~ boundaries to include the same, and for that purpose ftspedfWlY ~ 1.. The tarrltoxY to be 2"n,"6"~ S of..:1~ f....2-aeres. All,of'this 1and.lies entirely witbin the county ofWri :t, M;ft."~sota,, aJ;Jd. the desttiption of such land is as fbUows: See Exhibi~ A This Anuexaeiou petieion is t e 5eh and adjoins the 4th Annexation (Groveland 2nd Addition). 2. 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UJ "" Z :0 '" ..:I ..:I .0: ,., g E-< '" .0: U '" '" '"' ~ [fj ~ '" :.: '" [fj !3 '" [fj H "" '" ~ '"' ~ Ol M " '" o '" '" ro .,. " Z H '"' U '" '" U ..:I .0: '" '" Z '" " ..l " 0:> " M " '" o '" en co .,. [fj '"' Z .0: '" ..:I ..:I .0: ..:i ~ o E-< . E-< Z '" :>: ,., .0: "" '" o '" "" '" :> o '" "" '" .0: o ~ . o '" '" '" H :> "' '" [fj .0: '" '" ..:I ~ ;:e '" [fj ..l ..:i H '" '" o E-< ClJ H ,., " Z H "" '" U '" '" "" '" '" E-< ,., '" o '" :> o '" "" "" .0: '" [. .0: o . . . . Attention: Mr. Jeff O'Neil Monticello Planning Commis ion Monticello City Council Subject: The "approval" of River Mill 6 20 July, 2001 I have been a resident on Mill Trail L e in Monticello since May 1999. In February of 1999 when my husband and I wer seeking a lot to build on, we came across a nicely treed lot and factored in many variabl s before deciding to purchase. One of those variables was that on Mill Trail Lane, th home at 9599 would be the last house and the wooded area adjacent to the right of9599 would stay intact. This wooded area currently buffers our view and some noise co . g from interstate 94 and the Cty. Rd. 75 exit ramp. This wooded area adds to the visu enjoyment of the houses on our street. Much to our dismay, we have learned hat a developer named RDI has received at least some level of approval from your offices to build two more houses in the wooded section adjacent to 9599 Mill Trail Lane and 1 ading to the Cty. Rd 75 off-ramp. As a current homeowner, I am extremely displease by this action. Building two more houses in this section will have a negative impact on current residents for many reasons: . Visual and Noise impact will HIGH. Our current and potential horn value will be lower as potential buyers will walk away due to the vis and noise impact. These are not large lots becau the area is not that big. Therefore, smaller houses that do not fit the curre t homes will again bring our home values down. We have already seen . impact as a result of the smaller homes built adjacent to River Mill in e River Forest Development. We were mislead in 1999 by th the City of Monticello and Christian builders as we were lead to be eve by both that this parcel of land would not be developed. . . . I am extremely concerned about this p oject going forward. A simple walk on our street would tell most reasonable people that ding houses in this section would not be value added for the neighborhood. Is the city of Monticello that desperate for tax revenue that we are approving projects with such an 0 erall negative impact to current residents? In 1999, I took the word of the voice on the ther end of the phone when I called city hall to inquire about this section of land. I though the word of city hall in a small town meant something. . . . I am requesting all parties involved to consider this approval to add homes on Mill Trail Lane. I am requesting that this prop sal and all future proposals be denied even at the loss of some tax revenue and ask e developer RDI to seek other lots in the Monticello area. I will appreciate any feedbac and a schedule of any public meetings related to this section of Mill Trail Lane. Sincerely, Paula and Brian Gaeth 9596 Mill Trail Lane 763-295-3790 rivermiIl6-letter I Economic Develop ent Report by Ollie Koro chak July 18, 20 1 Front Street - As you know the Fire Department prefi rmed a "test bum" on the Bostic and Schliefhouses on Sunday, July 15. Thanks to the Fir Department and Public Works Department for their assistance and cooperation with he HRA. 218 Front Street - On July 11, the HRA rejected the c unter-offer of$163,000 from O'Connor. The HRA final offer stands at $145,383. The eminen domain petition was filed at the County on July 2, 2001. Again, the HRA acquired the followin parcels: Bostic, $109,400; Reed (raw land), $30,000; Schlief, $83,000; and Hawkins, $56,0 O. The 5-lot parcel along the Mississippi River, Carlson's, $275,000. Hans Hagen - A meeting is scheduled Monday, July 3,3:00 p.m. among Mark Ruff, Hagen, Wolfsteller, O'Neill, Simola, and Koropchak relative 0 construction commencing due to eminent domain proceedings, water/sewer replaceme t timing, PUD process and timing, cost incurred by HRNCity, and negotiation of land sale. Quik TIF 2000 Reports due at State August 1,2001. Semi-annual pay-as-you-go TIF payments due Augus 1, 2001. HRA researching other communities on wage level fo public subsidies. May increase. Our's currently at least $9.00 per hour without benefits. Marketing meeting - July 26, 7:30 a.m. Redevelopment of Amoco site and Smith Associates ites. Mike Cyr has presented a joint parking concept for the northerly one-half of Block 3 . Need to meet City parking requirements with proposed redevelopment projects. Had good company name lead for consideration to ac uire the H-Window facility. Excellent lead from a general contractor for 60,000 sq ft industrial building. Other three industrial projects on hold due to econom On vacation August 7 through August 14. Council Update - 07/23/200 I COU CIL UPDATE on East Broadwa medians. (R.M.) The following trees have been selected for panting on East Broadway in the medians: (6) (6) 2 Yz" Hackberry 2 Yz" Green Ash $150/e ch $150/e ch Total $900 Total $900 The trees will be planted by City crews. It ill take a three-man crew approximately four hours to plant and mulch the trees. The trees will be placed in two-tree groupin s on the center line of the median to enable us to plant more trees without blocking street ligh s and median signs. The smaller medians do not lend themselves to plants as any trees would cause visual obstructions to signs and/or lights. 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