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HRA Resolution 2003-03II RA RESOLUTION NO. 03 -03 A RESOLUTION BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA, AUTHORIZING THE DISPOSETffON OF RAW LAND. WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello adopted the Redevelopment Plan for Central Monticello Redevelopment Project No. 1 in November, 1982; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello modified the Redevelopment Plan for Central Monticello Redevelopment Project No. 1 on May 26, 1998; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello declares the said raw land for disposition lie within the Modified Redevelopment Plan for Central Monticello Redevelopment Project No. 1; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello was deeded the said raw land for disposition via a Conveyance of Forfeited Lands from the State of Minnesota, Department of Revenue, dated January 22, 199' ), and recorded January 27, 1993, County of Wright, Document No. 520463; and WHEREAS, the City Council of the City of Monticello approved giving the said raw land for disposition to the Monticello Youth Hockey and Soccer Associations subject to the terms and conditions of the attached City Council Minutes of February 24, 200' ); and WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello declares proper notice appeared in the Monticello Times relating to the public hearing held on April 2, 200' ), for disposition of said raw land described as: Outlot A, Country Club Manor, City of Monticello NOW, THEREFORE, BE IT RESOLVED by the governing body of the Housing and Redevelopment Authority in and for the City of Monticello authorizes the disposition of said raw land to the Monticello Youth Hockey and Soccer Associations subject to execution of a Contract for Private Development outlining the public purpose of the taxable property (approximately 7 acres) and including the provisions approved by the City Council of the City of Monticello. HRA Resolution No. 03 -03 Page 2 Adopted by the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, this 2nd day of April, 2003. B �ya HRA Chair ATTEST: Q) HRA Executive Director (1" �_. v, Co1111C1I MinLItCS - 2/24/03 OPPOSITION BECAUSE OF CONCERNS ABOUT DI�NSITY AND ACCESS. BRIAN STUMPI' MOVED TO APPROVE "I HE CONCEI)'I' DI:VI:LOI'M -N 'I' S'I'AGI PUD FOR SPIRIT HILLS BASED ON A ['INDING "I HAT THE PUD PROPOSAL MEETS TI -IE INTENT O1"I'IIE; C'OMPRI 1--IENSIVE:I'*LAN AND TIIE REQUIREMENTS FOR PUD APPROVAL OF TI II= CITY "S ZONING ORDINANCE AND "I HAT THE DESIGN OF TI IE PUD RL;SUL TS ,IN A PROJECT THAT IS SUPERIOR TO TI IAT WHICH WOULD HAVE O" HE`RWISE BE"-EN DEVELOPED VIA THE STANDARD PROCESS AND SUBJECT TO THE CONDITIONS LISTED IN EX1 IIBIT Z IN THE: FEBRUARY 4. 2003 PLANNING COMMISSION AGENDA. ROGER CARLSON SEC'ONDED THE MOTION. In further diSCLISSioll staff was asked if there was dialogue with the developer concerning the design issues. Steve Grittman that a IlUmber of different plans had been discussed. The staffs concern with the units were the view fol- the residents of the units and the proximity of the units to each other. The developer felt that the landscaping and architecture of the units overcame these concerns. "Jeff' O'Neill stated that the difference 1S 8 U111t Stl'L1CtLII "eS VC'.I -SLIs 4 U111t Stl'uCtUreS. UPON VOTE BEING TAKEN BRIAN STUMPF AND ROGER CARLSON VOTED IN FAVOR TI IEREOF AND BRUCE THIELEN AND ROBBIE SMITH VOTED AGAINST. MOTION F AILED. Steve Grittman stated ifthe Council was going to deny the PUD they should deny it with a finding of facts. Since there Nvas not a full Council present. Steve Grittman ffelt that this item should be held over. ROGER CARLSON MOVED TO BRING TI- -IIS ITEM BACK FOR CONSIDERATION WHEN THE FULL COUNCIL WAS PRESENT. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Mario Coccherella asked for verification that the COLInCII 'S aCtlon approved the preliminary plat bLlt tahled the PLID. Bruce Thle'len noted his Concerns were with Cleslgn and density. Robbie Smith Indicated he was okay x\ lth the density belt had concerns Nvlth the desi011. 10. Consideration ot, prohosal by Monticello Youth i-Iockey and Soccer- Associations to acquire the Cite property 1,or- facility construction. Mayor Thielen stated that this items goes back a long.) time and the group had a number of' dISCLISSIOIlS WIth the Cite regarding the use of Outlot A 01' Collntl'\' Club Manor for an ice arena. The LlueStion to be resolved was the land exchange. The Pointe Group representing the hockey and Soccer associations had SLlblllitted a proposal which \VOLlld provide that the City: 1) give the 17 acre pal-cel 01' land (OLitlot ;\. Collntl -V C ILlh Manor) to the associations at a cost off $250.000 N ith 9.22 9 Council klinutcs - 21241'03 acres of the parcel to be used by a non - profit, tax exempt ()roup for the purpose of�constructin� an athletic complex 1Or use as a soccer donne and ice arena and the remaining land to become taxable when no loner owned by the associations. The $250,000 payment is continent on the sale of the residual land and the land Neill be turned over to the associations upon completion of their fillancill" Brian Stumpf stated that in previous CUnlmLllllcations the $250.00 payment was never contingent upon the sale of the residual land. Rob LaRue from the Pointe Group reviewed the proposal submitted. He confirmed the points of the proposal as noted above. Their intent is to market and sell the residual land to help in the financing of the arena. The residual land when sold will be taxable. The associations are asking for I'1`�lit of ownership of the full parcel so that they can market and sell the land not heeded for the ice facility. They are reduestinO that the payment of the $250,000 be made at such time as the residual land is sold. It was felt that there should be a time limit oil how long the residual property Could be held by the associations. 7-Ile consensus was one year. Initially when this Carle to the Council the association was looking at 3 -5 acres which the Council indicated they would provide as their contribution to the project. Later they came back: to the Council with a proposal for a private developer to finance the project. If it was to be a private contractor and a tax paying entity then the entire parcel would be needed to make the facility possible. -The Council indicated they would consider providing the entire parcel because the `.:roue would be payin2y taxes plus all building permit and hookup fees. The problem for the association was that they couldn't afford being a tax paying operation. To make it feasible for the associations it Would have to be tax exempt. If it was tax exempt. would the City still be willing donate the entire parcel. The associations ,were seeking determination of what the Council Nwould provide. The Council could consider a IlUmber of options: 1) Provide )test enough lard for the ice arena /soccer facility: 2) donate the entire parcel of land or 3) provide the land Nwith some kind of payment to the City for the property. Brian Stumpf stated he did not want to see the project fall throu`h but Ile did feel if the City cave the up the entire parcel. the $250.000 should be paid up front and there should be time limit imposed for selllnu of -the residual property and that upon sale of the residual lard it would become tax Paying property. Brian StLlmpf' stated Ire did not \valet a venture whCrC the City was a partner in the development and he wanted somethin-) that was risk: free for the Citv. Bruce Tllielen stated that the proposal has chan`ed significantly from what was initially proposed and the gLlestioil waS What was the C'ouncil's coilll61 -t level on what they \were t0 Contribute to the project. Roger Carlson agreed that wanted to see the development take place but at what cost. lie stated that it \vas urilortUnate that this issue comes Up no\1- \,vith state budget deficits and the loss of'local government aid for the City which makes the decision much 11101'e dilficult to make. Bruce Thieler suo`oested the Cite keep the excess property and sell the needed land to the association for $100,000 \\ ith tine first payment deferred f )r fir e scars. 'finis Would allo\\ the City to retain part of the property which could be sold and those f LlndS used -ft )r 7"' Street extenslon. Brian Stunlpfasked if t}lc association was given the land needed I61- the complex would they still need the excess land in order to make the project work. 1Zohble Smith gUCSt1Ol1ed whet11Cr the C'itw could C01-111CiI Minutes - 2/24/03 legally donate the land. Bruce Thiclen stated any action the City would take would be contingent 1111011 recommendation ofthe City Attorney. The Council discussed the $250,000 figure which was approximately what the City had invested in the land some 24 years ago. Bruce Thlelcn felt deferring the payment on the land would allow the facility to get established. "Todd Banek spore for Monticello Youth Hockey. He stated that they have been working on this project for some time and with the expansion of the project to include the soccer dome, they would need the entire parcel of land. The problem has been getting the financing for the project and they have been looking at every possible angle. Todd Banek stated that because there is a small percentage of kids and parents involved in the sport of hockey they didn't want to place the burden for this project on others. He stated that they have been working on selling ice time and are hoping that everything will be in place so that they can break ground in April. He stated that they want to acquire the entire parcel so that they can market the residual land without approval of the City. The revenue generated from the sale of the residual is figured into the pay down of the debt load. It was the Intent of the associations that the residual land would be sold before April as they do have some prospective buyers. Todd Banck stated approximately $420.000 has been accumulated in fund raising and there is several hundred thousand in additional financial commitments from donors which will not be received until the associations have possession of the land. Todd Banek estimated they would receive $4.5045.00 sq. ft. for the residual land. Although they are exploring other financial Options. they are deadlocked without having the land. It was noted that based on $5 /sq. ft. the 7 acre residual parcel would generate $1.500.000. It was also pointed out that the City had never actively marketed the property for development. ']'here was dISCLISSIOII Oil the e\tellSlon Of 7i1' Street and N�,hen that Would take place. Although the C It\" \V0LIld pay the Street cost up ti-ollt they would be collecting assessments to recoup their funds. Greo Engle. President of the Monticello Youth Hockey Association asked if the Council NvOLlld unve thelll a propOSal that tile\" Could consider and tile\" Would reconvene with the COLIIICII after the last a_'ellda Item. r BRIAN STUMPF N,I(.)V17D Tl-IAT Tl IE CITY GIVE 1-1 ­1E ENTIRE 17 ACRE PARCEL "T0 "I* 1117 ASSOCIATION 1`0 R AN UP FRONT 11AYN4ENT OF $250.000: TI -IE RESIDUAI. LAND WII.I, B17 TAXABI.E WIZEN NO LONGER OWNED I3Y THE ASSOCIATIONS WTH I A 'TIML I,IN /11 '1' Ol" ONE YEAR FOR I- ]OLDING OF THE RLSIDUAI. PROPFRTY AND TI IE LAND WOULD 13E "TURNED OVER TO TI -IF ASSOCIATIONS UPON CO>\IP1.17 "T10N OF "1 l I IR FINANCING. Motion died Ior a luck of a second. [Zobbic Smith stated the issue he has is glving, prime land awav for $250.000 when it Could he North $1.500.000. Bruce Thielen stated he has gone bath ways on tills notim, tilt property has not bl- OLI`(llt in any taxes so if It call become a tax `clleratill`u) parcel It Nvould.be a positive. Robbie Smith asked if the property is said \V0Llld the City still IMVC S0j11C Say as iar as \V llat WoUld `(o in. Roger Carlson asked about the cost of the 7`) Street extension. Brett Council lMII1LItCS - 2/24/03 Weiss stated a very preliminary estimate woLUlcl he about `500.000 depcn11110 on the amount of LitIIIt) vvoi'1:. ROBBII SMITI I MOVED TO REINTRODUCED I3RIAN STUM1)F'S MOTION ON TI I ICI: FACILITY WHEREIN THE CITY GIVES "I I IE ENTIRL 17 ACRE PARCEL TO "ITIE ASSOCIATIONS FOR AN UP FRONT PAYMENT OF $250,000, `I'I IE RESIDUAL LAND WILL BE TAXABLE WHEN NO LONGER OWNED BY TI 1E ASSOCIATIONS WITH A TIME LIMIT OF ONE YEAR FOR HOLDING OF TI --IE RESIDUAL PROPERTY AND TI IE LAND WOULD BE TURNED OVER TO THE ASSOCIATIONS UPON COMPLETION OF THEIR FINANCING. BRIAN STUMPF SECONDED THE MOTION. Ro (yer Carlson asked what the scenario would be if the association Could not sell it by tile'ir Iinancino time. Brian StLl111pf stated that was why he had Put a one year time limit as part of his motion so that if the property was not sold within that one year period it would revert back to the City. City Administrator, Rick Wolfsteller pointed out that there is a lease agreement for the billboard suns that are on the property and that would be an issue that would need to be resolved. Bruce Thielen stated that the billboard suns would remain at least tllrough the end of the year. Rick Wollsteller also noted that there should a provision in the agreement that ensures that the project will actually be built on the land that is not being sold and. as noted earlier. all provisions and procedures in the land acgLlisition would be approved the city attorney. Rick Wolfstellei informed the Council that the property was in the name of the HRA and that there may be some statutory requirement to conduct a IlLIblic hearing pIior to disposing of the land. The COLIIICII also discussed some kind of clause in the agreement that would require that it is operated as a recreational facility for at least 15 years. ROBIE SMITH AMENDED HIS MOTION TO INCLUDE THE FOLLON\'ING PROVISIONS: 1) RESOLUTION OF "1 HE LEASES FOR THE BILLBOARD SIGNS: 2) WRITTEN ASSURANCES THAT THE PROPOSED FACILITY WILL BE C ONSTRLJCTED ON THE SITE: 3) THAT THE FACILITY 1S RI:- :QUIRI:D TO BE OPERATED AS A RECREA'1'IONAL FACILITY FOR 15 YEARS. 4) "I'I -IA "I- "hI -IE CITY ATTORNEY REVIEW AND APPROVE ALI, PROVISIONS AND PROCEDURE: FOR TI -IE LAND TRANSFER INCLUDING ANY STATUTORY REQUIREMI_:NTS ]"OR PUBLIC HEARINGS. BRIAN S'IJJ l-)l SECONDED THE AMI Nl)I;D MOTION. UPON VOTE BEING TAK1 N ALL VOTI D IN FAVOR THEREOF. l 1. Authorize the pi- eharation of plans and specifications for the cxtcntiion of C'helse-,j Read NN "est at 90 "' Street, PI-oiect No. 2002-01C. 111CiLlded with consent a�encla. 1?