City Council Minutes 01-29-1990 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday, January 29, 1990 - 7:00 p.m.
Members Present: Ken Maus, Fran Fair, Warren Smith, Shirley
Anderson, Dan Blonigen
Members Absent: None
2a. Consideration of acceptirafa:,,1,j_i._ v-�s�. y�:°N and estimate of
costs for street and utilis:.-,r improvements. t -o 7th Street and
Minnesota Street.
2b. Consideration of accepting hydrologic study and feasibility
report for improvements to the 7th Street watershed.
Council reviewed the feasibility report and hydrologic study
completed in conjunction with development of the K -Mart
addition. The information contained in both reports provided
cost information that assists the City in developing a finance
plan for the public improvements associated with the K -Mart
project. In addition, the hydrologic study provides
information that allows the City to complete short-term
planning for the management of storm water created by the
K -Mart addition and also provides information that assists the
City in its planning for future storm water improvements in
the area.
After discussion, motion was made by Shirley Anderson,
seconded by Fran Fair, to accept the feasibility report and
estimate of costs for street and utility improvements to 7th
Street and Minnesota Street and accept hydrologic study and
feasibility report for improvements to the 7th Street
watershed. Motion carried unanimously.
3. Consideration of project finance plan and consideration of
revised plan for use of tax increment financing.
Assistant Administrator O'Neill outlined two plans for
construction and financing of the improvements associated with
the 7th Street improvement project/K-Mart development. He
noted that on September 25, 1989, Council adopted the basic
package for use of tax increment financing, which called for
use of TIF primarily for costs associated with realignment and
construction of 7th Street. After adding soft costs,
including bonding, capitalized interest, and contingency, the
original level of TIF contribution amounted to $470,000.
Subsequent to September 25, 1989, TIF approval, Council acted
Page 1
Special Council Minutes - 1/29/90
to remove the Kramer property from the list of property to be
acquired, which resulted in a net reduction of $129,000.
O'Neill reported that changes to the plan for public
improvements, along with the development of more detailed
engineering data, necessitates another look at the project
finance plan. The original finance plan called for
development of the 7th Street right-of-way along a grade that
would have allowed the Hornig property to have access to 7th
Street right-of-way on the south side of the Hornig property.
Due to the need to elevate 7th Street, project costs increased
and caused the elimination of Hornig property access to 7th
Street right-of-way. O'Neill then went on to review two basic
proposals for public improvements and financing of
improvements for Council review. The first proposal called
for development of total private and public improvement costs
in the amount of $822,000. The second plan calls for a total
public and private improvement cost of $752,000. O'Neill went
on to break down the proposed sources of funding for both
plans. O'Neill noted that the added expense associated with
the first plan involves added sanitary sewer and water cost
associated with extending sewer and water from its present
position at the intersection of Minnesota and 7th Street all
the way to the freeway. Under the second alternative, sewer
and water would not be extended to the freeway and would be
terminated at the intersection of 7th Street and Minnesota
Street. The added cost of this alternative is approximately
$38,000. The first alternative also calls for development of
additional storm water section which would service drainage
coming from the Brennan property. The added cost of this
improvement amounts to approximately $32,000.
O'Neill also reviewed the finance plan which proposed deferral
of assessments against the Brennan property for the storm
sewer and sanitary sewer until such time that those utilities
would actually be utilized. In addition, the plan called for
deferring The Lincoln Companies' sewer and water assessment
until such time that the parcel immediately west of the K -Mart
site is developed. O'Neill noted that the tax increment
financing district proceeds can be used to pay for the cost of
the improvements. At the same time, the City, on a deferred
basis, may assess the benefiting property owners for the
improvements that have been received.
Dan Blonigen supported the concept of designing the plans as
outlined in plan #1 with an option of scaling back the plans
in the event the project costs are excessive. He also noted
that Mr. Brennan should agree to pay an assessment in the
future equal to the benefit his property
Page 2
Special Council Minutes - 1/29/90
receives with the installation of the utilities as proposed.
Blonigen also noted that the potential assessment against the
Brennan property should be recorded against the property.
Warren Smith noted that the public improvements as proposed in
plan #1 are acceptable and that they look toward the future
while staying within financial means.
Shirley Anderson was concerned about the precedent that might
be set by deferring some of the assessments associated with
the improvement project.
Fran Fair noted that in her view, the citizens would not
object to extending the sanitary sewer and water lines from
Minnesota Street to a position where they can be more easily
placed under the freeway, thereby encouraging development on
the south side of the freeway.
Ken Maus, in reviewing the finance plan, noted that the plan
is consistent with Council's original concept adopted in
September of 1989.
Chuck DuFresne of The Lincoln Companies noted to Council that
his company prefers option #1.
Pat Pelstring noted that the City could develop a TIF plan and
distribute it based on finance plan #1. Council at a later
date can always make reductions but not additions.
After discussion, motion was made by Fran Fair, seconded by
Shirley Anderson, to approve construction and finance plan #1
and include both option #1 and option #2 in the development of
plans and specifications for the 7th Street improvement
project. Plan #1 should include development of 7th Street
storm sewer. Final design is to be addressed at the public
hearings on the improvements and at the TIF public hearing
scheduled for March 12, 1990. Motion carried unanimously.
4. Consideration of calling a public hearing on street and
utility improvements to 7th Street and Minnesota Street.
Public hearing tentatively scheduled for February 12, 1990.
Motion was made by Fran Fair, seconded by Warren Smith, to
call a public hearing on the 7th Street/Minnesota Street
improvement project, public hearing to be conducted
February 12, 1990. Motion carried unanimously.
SEE RESOLUTION 90-3.
Page 3
FJ
Special Council Minutes - 1/29/90
There being no further discussion, the meeting was adjourned.
Jeff O'Neill
Assistant Administrator
Page 4