City Council Minutes 11-26-2007 Special
Special Council Minutes 11/26/07
MINUTES
SPECIAL MEETL'iG - MONTICELLO CITY COLl'IiClL
Monday November 26, 2007 - 5:30 p.m.
Member, Present:
Clint Herbst, Wayne Mayer, Tom Perrault, Brian ShImpf and Susie
Wojchouski
Members Absent:
None
1. CaUtoOrder:
The special meeting was called to order at 5:30 p.m. with a quorum ofthc COilllcil present.
2. Cedar Street ril!:ht.of.wav al!:reement.
JcffO'Neill provided backgroillld infonnation on the land exchange that was done in order
to acquire right-of-way for the new Cedar Street alignment. The City as part of the tight-
of-way agreement provided a quit claim to John Lundsten for certain parcels ofland that
the Minnesota Department of Transportation had turned back to Wright COWlty who
turned it back to the City of Monticello. If the Minnesota Department ofTram..portation
only had an easement for that parcel and did not own it outright, when the parcel was
turned back to the City the land should have reverted back to the abutting pro pertyowners
which means a portion of the property would belong to Glen Posusta, an abutting property
owner.
The City's provided a quit claim deed to John Lundsten by which the CIty gave up any
interest the City may have had in the parcel turned back by the state_ Tfthestatchad
acquired this property as an easement and the pareel should have reverted back to the
abuttingpropertiesuponvacationoftheproperty,thequitelaimdeedgivenbythe City
would not change who owns the property. Legal counsel indicated that a quiet title action
could involve the City in litigation. The City was looking at some options for resolving
the issue and avoiding litigation.
Glen Posusta was present at the meeting and Slated that the City knew they did not own all
the land that was deeded to John Lundsten. He stated that City Administrator, Riek
Wolfsteller, by knowingly deeding the land to Lundsten was guilty of misrepresentation
and fraud. Glen Posusta slated for development of his property or the Lundsten property
to occur this issue would need tobe elearedup. In initial diseussions with John Lundsten,
/I.1r. Lundsten was asking tor payment equivalent to $lllsffor that portion of the property
that should have reverted to Glen Posusta. Mr. Lundsten ha, since reduced his request to
$IOIsf.
There was lengthy discussion and from this discu,sion it appeared that the COilllcil was
split over what should be done. It was felt by some that since the City did not claim to
have fee title to the land there was no legal obligation to make payment to John Lundsten
as Mr. Lundsten knew the City by the quit claim deed was only giving up any interest the
City had in the land. If Mr. Lundsten wanted to take the City to court, then the court
would decide how the issue would be resolved. Others felt that if this matter would 6'0 to
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Sp.cialCouncilMinUlesl1,..26i07
court the City may end up paying Mr. Lundsten for lhe land anyway plus the cost of the
1egal fees incurred. It was also felt ifthe City was not certain of their right to deed the land
in its entirety to John Lundsten it could be looked at as a failure of the City to meet the
tenns of the agreement.
The Council discussed the various options which included: I) Do not offer payment at this
time and wait to see if legal action results; 2) Offer payment to Lnndsten for that portion of
the property that should have reverted to GlenPosusta; 3) Offer to reduce the amount of
the deferred assessments against the Lundsten property in an amount equivalent to $IOisf;
and 4) Offer the payment or reduction in deferred assessment to Glen Posusta to give up
his interest in the property that should have reverted to him but wa~ deeded to Lundsten.
SUSIE WOJCHOUSKI MOVED TO OFFER JOHN LL'NDSTEN A REDUCTION OF
$40,000 IN ["HEREST ON THE DEFERRED ASSESSMENTS AGAINST HIS
PROPERTY, PROVIDED JOHN LUNDSTEN SUBMITS TO THE COUNTY ALL THE
DOCUMENTS TO DEED TIlE PROPERTY IN QUESTION BACK TO THE CITY. IN
THE EVE.'JT JOHN LUNDSTEN DOES NOT ACT ON TIllS OFFER BY 1/30/08, THE
CITY WILL OFFER THE $40,000 REDUCTION ON THE DEFERRED
ASSESSME~TS TO GLEN POSUSTA IN EXCHANGE FOR HIS RELINQUISHING
BIS 1.l\TEREST IN THE SUBJECT PROPERTY.
MOTION DIED FOR A LACK OF SECOND.
After additional discussion of the options it was evident that the Co"ncil was not able to
agree on a course of action. Legal counsel, Jocl Jarnnik recommended the Council not take
adionatthismeeting.
WAYNE MAYER MOVED TO TABLE TAKING ANY ACTION ON THE CEDAR
STREET RIGHT-OF-WAY AGREEMENT BRIAN STUMPF SECONDED THE
MOTION. MOTION CARRIED U!\ANlMOUSLY.
Thespecialmeetingwasadjoumed.
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