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City Council Minutes 11-10-1986MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, November 10, 1986 - 7:30 p.m. Members Present: Arve A. Grimsmo, Fran Fair, Bill Fair, Jack Maxwell, Dan Blonigen. Members Absent: None. 2. Approval of Minutes. Motion was made by Bill Fair, seconded by Maxwell, and unanimously carried to approve the minutes of the special meeting held October 27, and the regular meeting held October 27, and the special meeting held November 5, 1986. 4. Consideration of an Offer to Purchase Land in Oakwood Industrial Park. The partners of the Oakwood Industrial Park approached the City with a proposal to sell to the City the entire remaining 79 acres of the industrial park for $400,000.00 plus assumption of delinquent and future special assessments of $268,000.00 for a total price of $668,000.00. The primary reasons for the partnership offering the property to the City at this time has to do with changes in the tax laws which make it preferable to sell the property this year; and also, after 18 years of ownership, the partners would like to move on to other interests. The partnership presented an appraisal from St. Cloud Appraisal indicating its value today, assuming a 6 -year time period to sell of the remaining lots, would be $675,000.00, which is how they arrived at their asking price. Councilmembers Bill Fair, Fran Fair, and Dan Blonigen all felt there were too many negatives in the City owning the property at this time and felt the City should not be in direct competition with other developers of commercial and industrial property. In addition, methods of financing the acquisition at the present time did not seem feasible. Mayor Grimsmo basically agreed that purchasing the entire remaining industrial park may not be favorable but questioned whether it would be to the City's advantage to own a few of the lots in the industrial park to entice developers that may make proposals to the City in the future. Mr. Gene Fair, one of the partners in the industrial park, noted that one of the main reasons the partnership decided to offer the property to the City is that previously the City seemed negative to the industrial park being used for the middle school site when their property was being considered and, therefore, thought the City may be interested in obtaining control of the property to insure that only industrial and commercial uses develop in the park. Council de Council Minutes - 11/10/86 members noted that when the school was considering property in the industrial park for a school site, the chairman of the Industrial Development Committee did oppose the idea of a school being located in an industrial park because of the conflict it may cause with future growth for industries, but the City did not feel it would be in its best interest to actually have ownership of the entire industrial park. After further discussion, it was the consensus of the Council not to pursue the offer at this time. 5. Consideration of a Proposal by NSP to Convert Street Lighting. Public Works Director, John Simola, noted that several years ago Northern States Power ceased to install mercury vapor street lights for new installations and currently has plans to replace the existing mercury vapor lights in Monticello to high pressure sodium because of their lower cost of operation and higher light output. The lights, which are owned by NSP, would have the same monthly billing per light and the change -over cost would be absorbed by NSP. Motion was made by Bill Fair, seconded by Blonigen, and unanimously carried to authorize Northern States Power Company to convert the existing mercury vapor street lights to high pressure sodium. 6. Consideration of Setting a Special Meeting for the Purpose of Establishing 1987 Salary/Wage Policies. A special meeting was set for 6:00 p.m., November 24, 1986, before the next regular Council meeting for the purpose of reviewing the comparable worth study and setting the 1987 salary/wage policy for all non-union personnel. Rick Wolfste ler Assistant Administrator -2-