City Council Minutes 10-15-1984
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MI UTES
SPECIAL MEETING - M NTICELLO CITY COUNCIL
October 15, 1984 - 7:30 P.M.
Members Present: Arve Grimsmo, en Maus, Jack Maxwell.
Members Absent:
Fran Fair, Dan Blonigen.
1. Call to Order.
2. Public Hearing - Pro osals Under the Municipal Industrial Development
Act. and
3. Consideration of Adopting Resolu ions of preliminary Approval.
A. WASHINGTON BUSINESS
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Mr. Gary LaFromboise of Construc ion 5, Inc., informed the Council
of their plans to build a 25,000 sq. ft. commercial office/storage
warehouse facility just east of auring Hillside Addition.
The proposed commercial complex as estimated to cost $875,000
and Construction 5, Inc., reques ed Council authorization to
apply for Industrial Revenue Bon s in the amount of $800,000
to finance the project.
Mr. Bill Malone, property owner
questioned the types of uses tha
was to occur. It was explained
allows for light industrial manu
with commercial storage.
djacent to the proposed development,
may be allowed if this development
hat primarily the proposal
acturing and/or office space
Mr. Dan Nelson, with the law fir of Holmes & Graven, explained
to the public and the City Counc'l that if a preliminary approval
is granted through adoption of a resolution, the Council is
merely authorizing an applicatio to be submitted to the Minnesota
Energy and Economic Development uthority for their consideration
as to whether the City can proce d with the issuance of bonds
for this project.
After hearing no other comments, motion was made by Maus, seconded
by Maxwell, and unanimously carr ed to adopt a resolution giving
preliminary approval to the proj ct and authorizing the proposal
to be submitted to the Minnesota Energy and Economic Development
Authority for their consideratio. See Resolution 1984 #45.
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B. MONTI STADIA DEVELOPMENT COM ANY PROPOSAL.
Mr. Dick Maw, representing the M nti Stadia Development Company,
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explained to the Council his pro
move the Metropolitan Stadium fr
The first choice as a site is a
to 1-94 just east of the present
owned by Mr. Jim Boyle. Mr. Maw
on the idea of relocating the Me
2 years and narrowed his choices
freeway location and proximity t
area.
Special Council Minutes - 10/15/84
osed plan to disassemble and
m Bloomington to Monticello.
OO-acre site located adjacent
Oakwood Industrial Park presently
noted that he has been working
Stadium for approximately
to Monticello because of its
St. Cloud and the metropolitan
Mr. Maw introduced Lynn Middleto engineer with the L.H. Sowles
Company, a large steel erection irm. Mr. Middleton indicated
that the stadium is like a giant erector set and is bolted together
and could be economically disass mbled and trucked to a new
site. Indications are that as e ch section is removed from
Bloomington, it could be trucked to Monticello and placed on
new footings. Mr. Maw also info med the Council that it was
his opinion there would be no pr blem in getting a Performance
Bond coverage from an insurance company to insure that the project
would be completed satisfactorily once started.
Mr. Maw went on to further descri e the possible uses for a
stadium in Monticello, including pproximately 30 days of soccer
events, possibly 105 dates of AAA or a baseball franchise, an
additional 30-40 outdoor concert ates with miscellaneous local,
high schoOl, and college sporting events. The estimated total
usage dates could be as high as 1 0-200 dates per year, creating
up to 100 full-time jobs and an a ditional 100 part-time jobs.
The estimated cost presented by . Maw to disassemble and erect
the structure in Monticello was 0,400,000.00, which is just
an estimate at this time.
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Future plans for the stadium inc
shell cone that could be moved to
to provide good acoustical sound
possibly a hockey rink. Addition
the hockey rink in a bubble for w
preliminary calculations, the exp
would be $3 million per year with
leaving a $300,000.00 profit. Gr
high as $16 million according to
the public hearing was opened for
the proposed development.
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Mr. Larry Nolan questioned
and whether it would still meet c
it is moved. Mr. Maw responded t
still as good as new, but, of cou
new wiring, toilets, a new stadiu
and an architect would be used to
somewhat to fit its new site in M
ude additions such as a band
the infield for small concerts
long with tennis courts and
I ideas include enclosing
nter use. According to his
cted revenue to the corporation
the debt payment being $2.7 million,
ss ticket sales could be as
r. Maw. After the presentation,
comments from the public regarding
of the present Met Stadium
rrent building codes after
at the structural steel is
se, the stadium would have
club, new seating, etc.,
possibly alter the structure
nticello.
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Mr. Rick Carlson questioned whet
stadium for 30 or 40 concerts pe
problems and congestion problems
would really be set up for large
Mr. Bill Malone questioned the C
of the developer and whether the
the City could get stuck hOlding
Mr. Dick Maw indicated he was ba
would have a number of major inv
It was also noted by the City's
Graven, Bond Attorneys, that Ind
by the City, would not be the re
repayment should such a project
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HRA Chairman and Planning Commis
that the development plans prese
nightmare in that no specifics h
the developer, and no guarantees
concerts have been proven. Mr.
it may seem like a far-sighted d
first priority is to get some ki
City of Monticello as to whether
the stadium proposal before he c
intent and get the major backing
Mr. Ed Doran questioned what the
would be in the worst scenario,
fail. Again, it was noted that
responsible for any repayment to
could become a liability in that
what to do with the property aft
Mr. Bill Fair questioned whether
bond issue for this project coul
limitations on issuing other Ind
of the large dollar amount of th
present statutes would not curta
requesting other projects just b
City Administrator Tom Eidem que
could proceed fast enough to act
qualify for the 1984 pool of Ind
He noted that the deadline for a
was Friday, October 19, and that
$200,000.00 would have to be sub
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It was also noted by the City Ad
have to expend large amounts of
and land use planning, etc., bef
given final approval. In additi
Special Council Minutes - 10/15/84
er the potential use of the
year would create large traffic
and questioned whether Monticello
rock concerts.
ty Council on the background
City has researched whether
the bag on this ambitious proposal.
ically a marketing man but
stors backing such a project.
epresentative from Holmes &
strial Revenue Bonds, if approved
ponsibility of the City for
efault.
ion Member, Don Cochran, noted
ted could become the City's
ve yet been established by
for any soccer, baseball, or
aw indicated that although
eam at the present time, his
d of an indication from the
it would be willing to accept
uld firm up his letters of
he would need for such a project.
City's responsibility or liability
hat being the project would
he City would not be financially
the bond holders, but the project
the City would have to determine
rwards.
the City's approval of a $20 million
subject the City to future
strial Revenue Bonds because
s issue. It was noted that
1 the City from issuing or
cause of this one large issue.
tioned whether the project
ally sell bonds this year to
strial Revenue Bond money.
plying for the 1984 allocation
a 1% application fee totaling
itted.
inistrator that the City would
oney for engineering studies
re such a project could be
n, it appears that an Environmental
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Special Council Minutes - 10/15/84
Impact Statement would be necess ry for this large of a project;
and it was felt that this could ot be done by year end 1984
and still sell the bonds in 1984. Some of the regulations regarding
Environmental Impact Statements ould take as long as 180 days
before final approval could be g"ven, and it appears very unlikely
that the developer could meet al the requirements and still
sell bonds yet this year. This as also the opinion of the
attorney from Holmes & Graven th t it would take the best of
conditions to line up a financin package and be able to sell
the bonds in 1984.
Mr. Maw responded by noting that Industrial Revenue Bonds may
not necessarily be the only source of financing for this type
of project and that possibly he could still apply for Industrial
Revenue Bonds next year if it didn't appear he could meet the
deadline for 1984. He again note that before any further steps
could be taken by his company or a corporation could be established,
preliminary approval from the Cit would be necessary.
The major concerns of the Council centered on traffic problems
and the funneling of cars back onto the freeway both in the
easterly and westerly directions. It was noted that an engineering
and/or planning study would have 0 be completed before any
final commitment could be made.
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After concluding the public heari, g, motion was made by Maxwell,
seconded by Maus, and unanimously carried to apply to the State
for the authority to issue bonds for the $20 million project.
CZ It J,
Rick Wolfsteller
Assistant Administrator
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