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City Council Minutes 06-11-1984MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL June 11, 1984 - 7:30 P.M. Members Present: Arve A. Grimsmo, Jack Maxwell, Fran Fair, Dan Blonigen. Members Absent: Ken Maus. 1. Call to Order. 2. Approval of Minutes. Motion was made by Blonigen, seconded by Maxwell, and unanimously carried to approve the minutes of the regular meeting held May 29, 1984. 4. Public Hearing - Consideration of Issuance of Industrial Revenue Bonds, Applicant - Stuart Hoglund. A public hearing was held by the City Council to consider Stuart Hoglund's request for issuance of Industrial Revenue Bonds in the amount of $550,000.00 for the construction of a 32 -unit motel. Mr. John Gries, attorney representing Mr. Hoglund, noted that the original application for Industrial Revenue Bonds was for $650,000.00 but has been reduced to $550,000.00. He also noted that the development should provide 20 full-time employees, not 12 as initially stated. Mr. Gries noted that even if the City Council approves this preliminary application for Industrial Revenue Bonds, the developer is fully aware that the State Department of Energy and Economic Development has final authority for authorizing Industrial Revenue Bonds to be approved. Mayor Grimsmo introduced for the record a letter received from the present owners of the Silver Fox Motel expressing their opposition to the City involvement in issuance of Industrial Revenue Bonds for additional motel rooms within the City. Silver Fox management noted that although Industrial Revenue Bonds are an incentive for developers, the current motel rooms within the City are not yet operating near capacity on a year-round basis and felt that the City should not help promote additional motel development until a need is established. Mayor Grimsmo noted that the City's first approval of Industrial Revenue Bonds was for the Silver Fox Motel, but at that time, the City of Monticello did not have any motel rooms within the City limits. Applicant Stuart Hoglund felt the need is still a reality in the City and noted that he has large assessments for improvements against his property and felt that something has to be built and requested that IRS's be considered to help finance the project. - 1 - Council Minutes - 6/11/84 Concerns were raised by Council members as to what direction the City should be taking in the future when supporting Industrial Revenue Bond applicants. Specifically, Council concerns centered on whether the City should be involved in commercial or industrial development as IRB's were initially intended for. Although no general consensus was or has been yet established as guidelines by the City, it was noted that generally the City is trying to provide incentives for new businesses to locate within the City to provide not only tax base increases but also employment, and specially in areas the City currently does not have businesses. Hearing no comments from the public, the public hearing was officially closed. 5. Consideration of a Resolution Granting Preliminary Approval for the Issuance of Industrial Revenue Bonds. After further discussion on Mr. Hoglund's IRB request, a motion was introduced by Maxwell to adopt a resolution giving preliminary approval to Mr. Hoglund's IRB project. The motion died for a lack of a second. As a result, no other motion was entered and pre- liminary approval was not granted for this project. 6. Consideration of Sewer Extension for Bondhus Property. At the previous Council meeting, the City Council passed a resolution to add a portion of water main to the Hart Boulevard project to allow for future crossing on County Road 75 for hook-up to the Bondhus Tool property. The sewer connection was tabled for lack of adequate bids. Public Works Director ,john Simola noted that so far only one firm quote has been received for providing sewer service to the Bondhus property estimated at $19,666.00 for connection to the interceptor sewer line. Mr. Simola, along with John Bondhus, felt that this cost was excessively high,and Mr. Simola was still optimistic that a cost estimate can be obtained in the $10,000 to $12,000 range. As a result, motion was made by Fair, seconded by Blonigen, and unanimously carried to allow the Bondhus Tool Company to connect to the interceptor sewer line providing 100% of the cost is charged to the Bondhus property. 7. Consideration of the Renewal of Annual Licenses. Motion was made by Blonigen, seconded by Fair, and unanimously carried to approve the issuance and renewal of the following annual licenses: - 2 - Council Minutes - 6/11/84 Intoxicating Liquor, On -sale (Fee $3,300) Renewals 1. Monticello Liquor, Inc. 2. Silver Fox 3. Charlie's West 4. Joyner's Lanes Intoxicating Liquor, On -sale, Sunday (Fee $100) Renewals 1. Monticello Liquor, Inc. 2. Silver Fox 3. Charlie's West 4. Joyner's Lanes Non -intoxicating Malt, On -sale (Fee $245) Renewals 1. Rod & Gun 2. Pizza Factory 3. Country Club Non -intoxicating Malt, On -sale, Temporary (Fee $10/day) 1. St. Henry's Fall Festival, 2 days - $20.00 Non -intoxicating Malt, Off -sale (Fee $50.00) 1. Monticello Liquor 2. Ernies Sport & Bait Shop 3. Wayne's Red Owl 4. Maus Foods 5. River Terrace 6. Tom Thumb 7. Charlie's West 8. Holiday Wine/3.2 Beer Combination, On -sale (Fee $400) Renewal 1. Dino's Deli - 3 - Council Minutes - 6/11/84 Set-up License (Fee $250) 1. Country Club 2. Rod & Gun Club Licenses (Fee - set by Statute) 1. V.F.W. - $500 (membership 268) 2. Am. Legion - $650 (membership 580) Bingo, Temporary (Fee $20) 1. St. Henry's Fall Festival Gambling, Temporary ($20 per device) 1. St. Henry's Fall Festival - $60 Rick Wolf steller Assistant Administrator - 4 -