City Council Minutes 12-26-1986 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Friday, December 26, 1986 - 7:00 a.m.
A special meeting of the Monticello City Council, duly called by
the Mayor, was held at 7:00 a.m., December 26, 1986, in the City
Council Chambers. Members present were: Fran Fair, Bill Fair, Jack
Maxwell, Dan Blonigen. Members Absent: Mayor Grimsmo. Also present
were Councilmember Elect Warren Smith, City Administrator Eidem,
Assistant City Administrator Wolfsteller, and Director of Economic
Development Koropchak.
Acting Mayor Fran Fair called the meeting to order and explained
that the special meeting was called for the express purpose of discussing
two issues, to wit, an offer to deed to the City three lots in Oakwood
Industrial Park and a question regarding the creation of a new position
of zoning Administrator/Planner.
City Administrator Eidem explained in summary form the offer made
to the City by the members of the Oakwood Industrial Park Partnership.
Eidem noted that the Partnership wished to deed to the City;Lots
9 and 10 in Block 2, and Lot 4 in Block 3, of Oakwood Industrial
Park for no charge. However, the delinquent assessments, taxes,
and associated charges, as well as the balance of assessments still
levied against the property would have to be forgiven and/or paid
by the City. Eidem explained that the net effective cost of this
transaction to the City would be $108,275.39, of which approximately
$10,000 to $12,000 would be taxes that 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 eventual sale of the lots to other parties.
Eidem went on to say that, according to his discussion with members
of the Partnership, the Partnership's plan was to refinance the remaining
lots so that all delinquencies could be paid to the County, thereby
bringing all lots current.
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 being in competition with the City
in the same industrial park. They noted that they understood that
the City could convey its land at a lesser price than they could
convey their land, but felt any sale activity by either party would
be beneficial to the other party. Mr. Walters indicated that there
was a time limitation involved with the offer since a significant
tax benefit could be realized by the Partnership if the transaction
would occur before the end of the year.
Councilmember Bill Fair raised a concern about the natural gas line
easement that bisects Lots # and 4. Mr. Phillips informed the Council
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that the easement was 50 feet wide and that the gas line was already
in place. He indicated that he knew of no special restrictions unique
to this easement that would limit the use of the property any more
than any other easement.
Ms. Koropchak, responding to Council inquiry, indicated that the
City's economic development efforts could benefit from taking ownership
of some available land. She noted that discussions of speculative
buildings had occurred over the years among members of the Industrial
Development Committee and the Housing and Redevelopment Authority.
She noted that she was aware of unofficial, general type plans to
facilitate a relocation of bulk petroleum products and/or trucking
industry related business into the industrial park from the Central
Business District. She noted that she occasionally receives requests
and inquiries about industries looking to rent or lease space rather
than buy land and construct their own buildings. She noted that
it could be profitable for the City to develop a site which could
then be leased to private industry.
Administrator Eidem asked Mr. Phillips and Mr. Walters if the City
would bear any associated cost with this transaction such as taxes,
legal fees, and title search expense. Walters and Phillips indicated
that the Partnership would take care of all associated expense.
Discussion then was held primarily among the Council members with
the prevailing sentiment being that the acceptance of this land would
not be inconsistent with earlier industrial development efforts.
Blonigen agreed that this proposal was substantially different than
the proposal submitted to the Council in the earlier part of the
fall to accept all 80 acres in the industrial park. Jack Maxwell
felt that the net effective cost of $6,435 per acre was reasonable
in comparison to the official appraisal's $8,533 per acre. He felt
the $2,100 difference adequately reflected the presence of the easement.
A general concern was expressed about the propriety of the City getting
into the real estate business, and would this create a negative image
of city government. Eidem commented that two significant factors
should be evaluated in this decision. First, the City has the potential
to realize significant investment profit by accepting the land and
getting it resold within five years. He stressed that anything that
can make the City a good profit, thereby lessening the reliance on
tax levy, was beneficial for the general public. Second, Eidem indicated
that the ability for the City to package an industrial siting proposal
was significantly increased and could have direct benefit to the
overall tax base and to the employment conditions in the city.
Motion by Jack Maxwell, second by Dan Blonigen, and carried unanimously
to accept the transfer of Lots 9 and 10, Block 2, and Lot 4, Block 3,
in Oakwood Industrial Park, for no fee, understanding that the City
shall be responsible for the delinquent taxes and assessments and
the balance of assessments due, contingent upon the Oakwood Industrial
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Park Partnership full and complete payment to Wright County for the
delinquent amounts on all other lots that will remain in the Partnership's
ownership.
Acting Mayor Fair turned the discussion to the topic of the proposed
job description for Zoning Administrator/Planner. Eidem indicated
that Mayor Grimsmo had requested that this topic be discussed at
greater length before approving the job description and authorizing
a placement of an advertisement. General consensus was that more
information should be gathered before the formal adoption of the
position. Councilmember Bill Fair asked if the Council could receive
an estimate of the savings the City would feel by using consultant
services less. Councilmember Blonigen expressed his concern that
the overall cost of administration was rising. Acting Mayor Fair
responded that the growth and expansion of the city necessitated
the rising personnel costs and felt the significant question was
whether or not the job was getting done to the degree desired. Blonigen
felt that planning was not all that reliable and questioned the merit
of having a staff planner. Bill Fair and Councilmember elect Warren
Smith asked Eidem to prepare a comparison study of the expansion
of staff versus the expansion of the City. Fran Fair indicated that
her opinion of the process must take into account an evaluation of
the need not the evaluation of the number of current staff. Blonigen
said he had concern that the City's chain of command could get so
long that no one in the City would accept responsibility. It was
Blonigen's opinion that currently there were too many occurrences
where no one would accept responsibility and were dodging issues.
Administrator Eidem commented that he was unsure to whom Blonigen
was referring, but felt that he had adequately demonstrated his willingness
to be accountable, as the City Administrator, for all activities
in the city. Eidem indicated that he knew of very few, if any, instances
where City staff had been in error, and refused to acknowledge and
accept responsibility for those errors.
Acting Mayor Fair said the question that needed to be answered was
whether or not the City should pursue the investigation on creating
the new position. She indicated that she was in favor of pursuing
the position in order to fill the planning gap. Council members
Bill Fair, Dan Blonigen, and Jack Maxwell said they found merit in
pursuing the investigation to assemble more information from which
a decision could be based. Councilmember elect Smith concurred that
the City should investigate the position further, and requested from
Eidem that he receive summaries of current job descriptions and salaries.
Eidem was also directed to prepare an organizational chart in order
to address the issue of accountability.
Prior to adjournment, Councilmember Blonigen requested to comment
on the last special meeting that was held in joint session with the
Planning Commission. Blonigen stated he felt that the City Council
did not provide the direction needed and as was requested by the
Planning Commission. Acting Mayor Fair countered saying that she
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felt the Council did respond by providing training options that would
allow the Planning Commission the freedom of independent decision
making. The discussion ended without resolution of the issue, but
with a general agreement that the Planning Commission needs to respond
in an independent way to the general trends of the city and the Council.
There being no further business, Acting Mayor Fair adjourned the
meeting.
i
r
Thom -Ys A. Eidem
City Administrator
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