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City Council Minutes 10-04-2007 Special Special Council Minutes: 10/4/07 MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Thursday, October 4, 2007 - 6 p.m. Members Present: Wayne Mayer, Tom Perrault, Brian Stumpf, Susie Wojchouski and Clint Herbst. Members Absent: None 1. Call to Order: Acting Mayor Brian Stumpf called the meeting to order at 6 p.m. 2. Land site for Public Works Facilities: Public Works Director, John Simola outlined the purpose of the meeting stating that since the last meeting Kodet Architectural and staff had looked at the sites that were discussed. The focus of the sites was the Gold NuggetlBechtoldlFeatherstone property. The Bechtold property was recently put up for sale by auction. Bruce Westby and John Simola had met with Horst Graser, owner of the Gold Nugget site to discuss his interest in selling the land and his asking price. Horst Graser was supposed to respond back to John Simola before this meeting with a more definitive price but as of meeting time, there had been no response. In their meeting Horst Graser indicated if the City made an offer on the 20 acre Bechtold site, he would be willing to consider selling 7-8 acres of his property adjacent to the Bechtold site. They also discussed the possible sale of a 30 acre site that Gold Nugget owns lying east ofTH 25 and west of the Bechtold site. Heidi Neumueller and Ed Kodet reviewed the sites that had been looked at and discussed which sites were the most feasible for a Public Works facility. The two most feasible sites based on cost and location were the Bechtold site with the additional 7-8 acres from Gold Nugget or the 30 acre parcel owned by Gold Nugget east ofTH 25. The City did discuss a possible land swap with Gold Nugget. John Simola talked about the land costs. Although the appraised value of the 20 acre site was thought to be about $840,000 he felt the property could be obtained for $500,000-$540,000. Clint Herbst asked what the land went for at the auction as he felt that was something the City should know before they start negotiating for the land. Jeff O'Neill who had been in telephone contact with Horst Graser during the course of the meeting, reported that Horst Graser and his people were not interested in a land swap and would prefer to sell outright any land that was needed. The Council talked about the access to the site which would be from 85th Street and Edmonson Avenue. John Simola stated that ifthe Public Works facility was built at this location it would require improvements to both 85th Street and Edmonson Avenue. John Simola said in the spring when road restrictions are in place the Public Works traffic would need to access onto Edmonson Avenue. Jeff O'Neill noted that Horst Graser liked the land use layout because it would create a buffer between the Public Works facility and the residential area. Jeff O'Neill added that at a meeting, staff discussed how having the Public Works facility adjacent to a residential area could create problems in the long term. 1 Special Council Minutes: 10/4/07 Clint Herbst expressed some concern about the possibility ifthe City purchased the Bechtold site and needed the additional 7-8 acres from Gold Nugget, Horst Graser could hold out for a higher price or not sell at all. Susie W ojchouski asked about a deadline for submitting a proposal on the Bechtold site which was the auction site. The Bechtold site has sewer, water and gas service available. Ed Kodet noted that there were stormwater basins in the area. They are improved stormwater basins but the City does not know the calculations the basins were designed for. John Simola stated the ponds would have to be lined. If cost was not a factor in considering a site, the prime site would the be the land identified as Spike #2 which would be adjacent to the A VR site. Spike #2 is a 40 acre site. Clint Herbst thought this site would cost about $80,000 an acre. Clint Herbst felt the choice of sites would be made based on cost. John Simola believes the most cost effective site would be the Bechtold site and Clint Herbst agreed it was a feasible site. There was discussion on what steps the City needed to take to acquire the site. To proceed on an informed basis, the City has to find out the bid that was submitted at the auction. Ed Kodet indicated that realtor said that $500,000 would buy the land which would work out to be about $25,000 an acre. If the additional 7-8 acres could be purchased at the same price the total land cost for a 28 acre site would be $700,000. John Simola stated that if the City prepares a purchase agreement they would want to include items relating to Phase I environmental assessment work, soil borings, etc. Clint Herbst noted that the Bechtold site had been a field for a long time so he didn't think there would be environmental problems. Tom Perrault asked about the Ruff Auto site. It was noted that Elm Street bisects the property and a buffer zone would be required from the residential area. In all the Ruff Auto site totals about 20 acres. Brian Stumpf felt it was a piecemeal site and would create problems when it comes to expansion just as the City's present Public Works site does. Jeff O'Neill also talked to Shawn Weinand about the Bechtold site. Although Weinand did not attend the auction, he didn't think the site was worth more than $25,000Iacre maximum. It was suggested looking at taking the entire 30 acre parcel from Horst Graser at $25,000/acre. Wayne Mayer asked what the plans are for the current Public Works building. The Fire Department is looking at it as a possible fire hall site and eventually expanding to another site. Steve Joerg, Fire Chief also looked at the KMOM site. The Council discussed the fire hall location in relation to response time needed. Ed Kodet said response time makes a big difference in the ISO, especially if the response time is less than four minutes. Clint Herbst said staff has to get the prices for the land. Then possibly at the October 8, 2007 Council meeting, the Council could close the meeting to discuss possible land purchase. John Simola pointed out that the comparables in the appraisal were done in 2005 when land prices were high. $500,000 was felt to be a realistic price. The Council discussed having a purchase agreement prepared. John Simola also brought up the $40,000 for the cost of the auction and whether that would be included in the land costs. Clint Herbst felt the information received at this meeting was insufficient for the Council to take action on because there was no solid price information provided. He said staff should have had this information for the Council before calling the meeting. John Simola asked if Horst Graser's position is that they would not accept anything below $30,000 an acre, should staff make an offer. Brian Stumpf and Clint Herbst wanted to wait with any action until the October 8th meeting. Susie 2 Special Council Minutes: 10/4/07 Wojchouski wanted staff to check to make sure when the cutoff date was for submitting a proposals. In checking with the realtor, John Simola was told the City would have until Tuesday, October 9th to make an offer. 3. Adjourn: The meeting was adjourned at 7 p.m. DOJ...>...>"'" ,A ^-Z'> 5 ~ . . Recording Secretary '" 3