City Council Minutes 12-26-1986
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SPECIAL MEETING - M NTICELLO CITY COUNCIL
Friday, December 6, 1986 - 7:00 a.m.
A special meeting of the Monticello
the Mayor, was held at 7:00 a.m., D
Council Chambers. Members present
Maxwell, Dan Blonigen. Members Abs
were Councilmember Elect Warren Smi
Assistant City Administrator Wolfst
Development Koropchak.
City Council, duly called by
cember 26, 1986, in the City
ere: Fran Fair, Bill Fair, Jack
nt: Mayor Grimsmo. Also present
h, City Administrator Eidem,
ller, and Director of Economic
Acting Mayor Fran Fair called the m
that the special meeting was called
two issues, to wit, an offer to dee
Industrial Park and a question rega
of Zoning Administrator/Planner.
eting to order and explained
for the express purpose of discussing
to the City three lots in Oakwood
ding the creation of a new position
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City Administrator Eidem explained n summary form the offer made
to the City by the members of the 0 kwood Industrial Park Partnership.
Eidem noted that the partnership wi hed to deed to the City, Lots
9 and 10 in Block 2, and Lot 4 in Bock 3, of Oakwood Industrial
Park for no charge. However, the d linquent assessments, taxes,
and associated charges, as well as he balance of assessments still
levied against the property would h ve to be forgiven and/or paid
by the City. Eidem explained that he net effective cost of this
transaction to the City would be $1 8,275.39, of which approximately
$10,000 to $12,000 would be taxes t at would need to be payable to
the County. The balance of the sum, Eidem noted, amounted to special
assessments for public improvements made in the area and would need
to be recaptured through the eventu 1 sale of the lots to other parties.
Eidem went on to say that, accordin to his discussion with members
of the Partnership, the Partnership's plan was to refinance the remaining
lots so that all delinquencies coul be paid to the County, thereby
bringing all lots current.
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Acting Mayor Fair raised a question about the City entering real
estate competition with private developers. Mr. Gene Walters and
Mr. George Phillips, representing the Oakwood Partnership, indicated
that they were unconcerned about bei g in competition with the City
in the same industrial park. They n ted that they understood that
the City could convey its land at a esser price than they could
convey their land, but felt any sale activity by either party would
be beneficial to the other party. . Walters indicated that there
was a time limitation involved with he offer since a significant
tax benefit could be realized by the Partnership if the transaction
would occur before the end of the ye r.
Councilmember Bill Fair raised a
easement that bisects Lots. and 4.
tD
ern about the natural gas line
Mr. Phillips informed the Council
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that the easement was 50 feet wide
in place. He indicated that he kne
to this easement that would limit t
than any other easement.
Ms. Koropchak, responding to Counci
Cityls economic development efforts
of some available land. She noted
buildings had occurred over the yea
Development Committee and the Housi
She noted that she was aware of uno
facilitate a relocation of bulk pet
industry related business into the
Business District. She noted that
and inquiries about industries look
than buy land and construct their 0
it could be profitable for the City
then be leased to private industry.
Special Council Minutes - 12/26/86
nd that the gas line was already
of no special restrictions unique
e use of the property any more
inquiry, indicated that the
could benefit from taking ownership
hat discussions of speculative
s among members of the Industrial
g and Redevelopment Authority.
ficial, general type plans to
oleum products and/or trucking
ndustrial park from the Central
he occasionally receives requests
ng to rent or lease space rather
n buildings. She noted that
to develop a site which could
Administrator Eidem asked Mr. Phill ps and Mr. Walters if the City
would bear any associated cost with this transaction such as taxes,
legal fees, and title search expens. Walters and Phillips indicated
that the Partnership would take car of all associated expense.
Discussion then was held primarily mong the Council members with
the prevailing sentiment being that the acceptance of this land would
not be inconsistent with earlier in ustrial development efforts.
Blonigen agreed that this proposal as substantially different than
the proposal submitted to the Counc 1 in the earlier part of the
fall to accept all 80 acres in the ndustrial park. Jack Maxwell
felt that the net effective cost of $6,435 per acre was reasonable
in comparison to the official appra salls $8,533 per acre. He felt
the $2,100 difference adequately re lected the presence of the easement.
A general concern was expressed abo t the propriety of the City getting
into the real estate business, and ould this create a negative image
of city government. Eidem commente that two significant factors
should be evaluated in this decisio,. First, the City has the potential
to realize significant investment p of it by accepting the land and
getting it resold within five years He stressed that anything that
can make the City a good profit, th reby lessening the reliance on
tax levy, was beneficial for the geeral public. Second, Eidem indicated
that the ability for the City to pa kage an industrial siting proposal
was significantly increased and cou d have direct benefit to the
overall tax base and to the employm nt conditions in the city.
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Motion by Jack Maxwell, second by D
to accept the transfer of Lots 9 an
in Oakwood Industrial Park, for no
shall be responsible for the delinq
the balance of assessments due, con
n Blonigen, and carried unanimously
10, Block 2, and Lot 4, Block 3,
ee, understanding that the City
ent taxes and assessments and
ingent upon the oakwood Industrial
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Park Partnership full and complete
delinquent amounts on all other lot
ownership.
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Acting Mayor Fair turned the discus
job description for Zoning Administ
that Mayor Grimsmo had requested th
greater length before approving the
a placement of an advertisement. G
information should be gathered befo
position. Councilmember Bill Fair
an estimate of the savings the City
services less. Councilmember Bloni
the overall cost of administration
responded that the growth and expan
the rising personnel costs and felt
whether or not the job was getting
felt that planning was not all that
of having a staff planner. Bill Fa
Smith asked Eidem to prepare a comp
of staff versus the expansion of th
her opinion of the process must tak
the need not the evaluation of the
said he had concern that the City's
long that no one in the City would
Blonigen's opinion that currently t
where no one would accept responsib
Administrator Eidem commented that
was referring, but felt that he had
to be accountable, as the City Admi
in the city. Eidem indicated that
where City staff had been in error,
accept responsibility for those err
Special Council Minutes - 12/26/86
ayment to Wright County for the
that will remain in the Partnership's
ion to the topic of the proposed
ator/Planner. Eidem indicated
t this topic be discussed at
job description and authorizing
neral consensus was that more
e the formal adoption of the
sked if the Council could receive
would feel by using consultant
en expressed his concern that
as rising. Acting Mayor Fair
ion of the city necessitated
the significant question was
one to the degree desired. Blonigen
reliable and questioned the merit
rand Councilmember elect Warren
rison study of the expansion
City. Fran Fair indicated that
into account an evaluation of
umber of current staff. Blonigen
chain of command could get so
ccept responsibility. It was
ere were too many occurrences
lity and were dOdging issues.
e was unsure to whom Blonigen
adequately demonstrated his willingness
istrator, for all activities
e knew of very few, if any, instances
and refused to acknowledge and
Acting Mayor Fair said the question that needed to be answered was
whether or not the City should purs e the investigation on creating
the new position. She indicated th t she was in favor of pursuing
the position in order to fill the panning gap. Council members
Bill Fair, Dan Blonigen, and Jack M xwell said they found merit in
pursuing the investigation to assem Ie more information from which
a decision could be based. Council ember elect Smith concurred that
the City should investigate the pos"tion further, and requested from
Eidem that he receive summaries of urrent job descriptions and salaries.
Eidem was also directed to prepare n organizational chart in order
to address the issue of accountability.
Prior to adjournment, CouncilmemberBlonigen requested to comment
on the last special meeting that was held in joint session with the
Planning Commission. Blonigen state he felt that the City Council
did not provide the direction needed and as was requested by the
Planning Commission. Acting Mayor F ir countered saying that she
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felt the Council did respond by pr
allow the Planning Commission the
making. The discussion ended with
with a general agreement that the
in an independent way to the gener
Special Council Minutes - 12/26/86
viding training options that would
reedom of independent decision
ut resolution of the issue, but
lanning Commission needs to respond
1 trends of the city and the Council.
There being no further business, A ting Mayor Fair adjourned the
meeting.
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