City Council Agenda Packet 11-22-2004
AGE DA
REGULAR MEETING - MONT CELLO CITY COUNCIL
Monday, Novembe 22,2004 - 7 p.m.
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WORKSHOP MEE'rING: 2005 CORE STREET P ()JECT AND I-94/CSAH 18 INTERCHANGE
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Mayor:
Bruce Thielen
Council Members:
Roger Carlson, Glen Posusta,obbie Smith and Brian Stumpf
Consideration of approving minutes of the No ember 8, 2004 regular Council meeting.
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1.
Call to Order and Pledge of Allegiance.
2.
3.
Consideration of adding items to the agenda.
4.
Citizen comments/petitions, requests and com
5.
Consent agenda.
A.
Consideration of ratifying new hires an departures
Consideration of accepting feasibility r port for 2005 Street Reconstruction Project and
setting a puhlic hearing date for December 13,2004.
C.
Consideration of an appeal of Planning Commission's denial of variance to the 30 foot rear
yard setback for an attached 4-unit tow home complex in an R-2 District.
Consideration of items removed from the cons nt agenda for discussion.
Consideration of analysis of alternative sites w thin the Jefferson Commons plat for water tower
location.
Consideration of preliminary and final plat for tter Creek Crossing, a proposed commercial and
industrial suhdivision. - Applicant: Otter Creek LLC.
Consideration of selection of a letter of intent t purchase property within the JefTerson Commons
plat.
Consideration of reaffirming direction to the Ci y Engineer to continue with engineering work
supporting preparation of engineering data nec ssary to keep interchange project on schedule.
Council is also asked to consider directing the.ityEngineer to prepare a formal feasihility study for
the purpose of compliance with the Chapter 42 improvement process.
Consideration of authorizing staff to investigate viability of Swan River Montessori Charter School
proposal to purchase church building and propety.
Consideration of a request for a conditional use permit f()f a 1 a-unit residential concept stage planned
unit development and a request 1(>r rezoning fro PZM (Performance Zone-Mixed) to R-2 (Single
and Two Family Residential) Applicant: Jen- T r Construction.
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13. Approve payment of bills for November.
14. Adjourn
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MINU ES
REGULAR MEETING - MONTI ,ELLO CITY COUNCIL
Monday, November 8,2004 - 7 p.m.
Members Present:
Roger Carlson, Glen Posusta, obbie Smith, Brian Stumpf and Bruce Thielen.
Members Absent:
None
1. Call to Order and Pledge of Alle2iance.
Mayor Thielen called the meeting to order at p.m. and declared a quorum present. The
Pledge of Allegiance was said.
2. A rove minutes of October 25 2004 re u ar Council meetin
Glen Posusta requested that a statement indic ting the date the public hearing notices on the
assessment projects were sent out he include as part of the minutes.
GLEN POSUS1'A MOVED TO APPROVE HE MINUTES OF THE OCTOBER 25, 2004
REGULAR COUNCIL MEETING WITH 'I' E ADDITION NOTED. ROBBIE SMITH
SECONDED THE MOTION. MOTION CA RIED UNANIMOlJSL Y.
3.
Consideration of addin items to the a en a.
Brian Stumpf asked that an update on the Kr mer house he added to the agenda. Glen Posusta
asked that discussion of the second lift on Ce ar Street also be added.
ROGER CARLSON MOVED TO ADD TO HE CONSENT AGENDA ITEMS #10,
CANVASS OF 2004 ELECTION RESULTS #12 RESOLUTION DECLARING INTENT
TO REIMBURSE FOR PROJECT COSTS, 14 SETTING A WORKSHOP FOR I-94/CSAH
18 INTERCHANGE, #15 AUTHORIZING fEASIBILITY STUDY FOR SE INTERCEPTOR
SEWER AND #16 SUBMITTAL OF EAW OR RYAN COMPANIES TO THE
ENVIRONMENTAL QUALITY BOARD. LEN POSUSTA SECONDED THE MOTION
WITH THE EXCl,USION OF ITEM #15. OTION CARRIED UNANIMOUSLY.
4. Citizen comments etitions re uests and om laints.
Mayor Thielen explained the purpose of the citizens comments portion of the agenda.
John Kautza, 8548 Troy Marquette Drive; Ra dy Kramer, 8580 Troy Marquette Drive and
Brad Kitzman, 8608 Troy Marquette Drive c me hefore the Council to complain about the
runoff from the Carlisle development. "I'hey stated that the cul-de-sac in the Carlisle
development is built up much higher than the elevation of their lots so the water runs off onto
their property. They presented pictures to the Council showing the cul-de-sac and standing
wateri n the area.
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Council Minutes - 11/8/04
City Engineer Bret Weiss responded that tl e City is aware of the problem and he has been in
contact with the developer and his contract r. Bruce Thielen stated that this development has
progressed very slowly and he wondered Wly that was the case. Bret Weiss indicated that the
grading contractor fe)f the project had filed or bankruptcy so a new contractor had to be
obtained but he couldn't say how much tha impacted the progress on the project.
Bret Weiss explained how the drainage for he Carlisle development was laid out. However
he stated that the issue of discharge into Co nty Ditch #33 is still not resolved. The runoff
water will go from the north to the south to wetland area in the vicinity of Garrison Avenue
and County Road 18 and then across Count Road 18 to the ponding area and eventually to
County Ditch #33. John Kautza stated that while the pictures presented to the Council were
taken over a month ago the situation had n t changed in that time. He was concerned about
what would happen in the spring when the heavy rains would come.
Glen Posusta asked what was being done to ddress the surface water. Bret Weiss explained
that runofTwill be going to the existing wed md area and stated that the wetland area along
County Road 18 is a good size area and can andle the anticipated runoff.
Bret Weiss stated that some patience is requi ed during the construction process sinee
construction can take a while to complete. len Posusta asked if there was a letter of credit in
place on this project and Bret Weiss indicate there was.
Mayor Thielen directed the City Engineer to eep on top of this project. Bret Weiss stated
that the project was designed to handle the ru 10ff and when construction was completed it
would work. John Kautza stated the City sh( uld stop the development project until the mess
was cleaned up. Mayor Thielen stated he did 't know if that could be done and John Kautza
stated if it couldn't he would take them to co rt to get it corrected. Bret Weiss wi II contact
the developer and his contractor on Novembe 9th to get a schedule for when the work will be
completed.
5.
Consent agenda.
A. Consideration of ratify new hires and epartures. Recommendation: Ratify the hires
and departures as identified.
B.
Consideration of a request for a Comp ehensive Plan Amendment to allow rezoning
from a residential use to a mixed use, I' zoning from R-l (Single and Two-Family
Residential) to PI.M (Performance ZOl e-Mixed) and a conditional use permit to allow
commercial retail activity in a PZM Di trict. - Applicant Don (-Eckman.
Recommendation: Approve the rezon ng from R-2 to B-1 for Lots I and 2, Block 5,
Lower Monticello based on the finding that uses consistent with this district are
compatible with the area and with the istorical use of the property and to approve the
conditional use permit allowing limited office/commercial sales allowing an of1lce
supplies shop or a laundromat in a B-1 )istrict based on a finding that this use is
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Council Minutes - 11/8/04
compatible with the neighborhood a d the intent of the B-1 District and subject to the
following: 1) Renovation of the ligh ed canopy sign to reduce the amount oflight
emission toward the residential area y painting or other technique; 2) Signage for the
site consistent with the requirements of the applicable zoning district; 3) Parking
layout consistent with standard dime sional requirements for angled parking; and 4)
IIours of operation are trom 8:00 a. . to 6:00 p.m.
C.
Consideration of preliminary and fin I plat for Otter Creek Crossing, a proposed
commercial and industrial subdivisi n. - Applicant: Otter Creek LLC.
Recommendation: Approve the preliminary and final plat fix Otter Creek Crossing
subject to the l{}lIowing conditions: 1) As future uses become more apparent, the
outlots will need to be replatted; 2) vailability l{)r access is maintained through
Outlot F. Potential road access to co nect to future City property; 3) A drainage and
utility easement is provided between 'helsea Road and Interstate 94; 4) A drainage
and utility easement is shown from t e Groveland Addition through the southwest
corner of the plat; and 5) Annexation of the piece of the plat known as the "Rask"
parcel (213- 100-104202).
D.
Consideration to review the job and age level report for compliance of the provisions
of the permanent jobs within the amClded Loan Agreement between the City and Twin
City Die Castings Company. Recom endation: Move to declare the job and wage
level report of the provision of new p rmanentjobs as submitted by TCDC on
September 19, 2004 as satisfactory and in compliance with the requirements of the
Federal government and the amended Loan Agreement between the City and TCDC
and in the spirit of business retention nd expansion; in lieu of the fact that the
business subsidy agreement was inad ertently included in the Loan Agreement; and
the hlct that TCDC project creates jo s and tax base are the reasons for recommending
approval.
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E. Consideration of purchase of replace ent digester transfer and recirculation pumps for
the wastewater treatment plant. Reco mendation: Authorize Professional Services
Group to replace the existing digester ranster and re-circulation pumps at the
Wastewater Treatment Plant with 2 n w moyno's at an estimated cost of $3 I ,058.00
plus appropriate freight and sales tax.
F. Consideration of approval of charitabl. gambling license tor Monticello Youth
llockey Program. Recommendation: Adopt a resolution authorizing the State
Gambling Control Board to renew the 'haritable gambling license to Monticello Youth
Iloekey for gambling activities at Ha ks Sports Bar and Grill.
G.
Consideration to approve the 2005 Sp citications for Operation of the City of
Monticello Heartland Express and the 005 Bid Proposal template for the Operation of
the City of Monticello Heartland Expr ss and authorization to request bids tor 2005 3"d
party transit services. Recommendati n: Move to approve the 2005 Specifications
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for Operations, City of Monticello eartland Express and the Bid Proposal form and
to authorize the public notice and m iled bid requests for 2005 third party transit
serVIces.
H.
Consideration of final plat approval fthe First Addition of the Hunters Crossing
residential subdivision. Recommen ation: Adopt resolution approving the llnal plat
of Hunter's Crossing First Addition ontingent upon completion of minor changes as
required by the City Engineer and u on execution of the development agreement and
the provision of associated securitie" .
I.
Consideration of final plat approval f thc Nathan's Court residential subdivision.
Recommendation: Adopt a resoluti n approving the lInal plat of Nathan's Court
contingent upon completion of mi no changes as required by the City Enginecr and
upon execution of the development a reement and the provision of associated
securities.
.I. Consideration of setting a workshop n November 22,2004 for the 2005 Street
Reconstruction Program. Recomme dation: Set a workshop meeting for the 2005
Core Street Reconstruction Program t 5 p.m. on November 22, 2004.
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Glen Posusta asked that item #5G be remove for discussion. It was noted that item #5C was
requested by the applicant to be tabled until ovember 22, 2004.
GLEN POSUSTA MOVED TO APPROVE" HE CONSENT AGENDA WITH THE
REMOV AL OF #5G, THE TABLING OF #5C AND THE ADDITION OF ITEMS #10, #12,
#14 AND #16. BRIAN STUMPF SECOND D THE MOTION. MOTION CARRIED
UNANIMOUSL Y.
6. Consideration of items removed from the c
5G Heartland lL-rpress: Glen Posusta questi ned the specifications for Operation of the
Heartland Express. Since the City would hav to add employee for this position, he felt the
City should look at the cost of owning the bus and whether that would be an economically
feasible option.
Jeff O'Neill stated that the City has looked at urchasing a bus on prior occasions and have
Hoglund operate it but that has not been done n the past because the contract price was so
reasonable. Jeff O'Neill suggested adjusting he specifications to cover this option. This
would just be a change to the bid document. ecause of the time frame, he didn't know how
much ofa change they could make in the spec'fications. Glen Posusta suggested that this be
looked at for next ycar. Brian Stumpf agreed t at this should be looked into since the City is
looking at the additional cost of adding an em loyee. Jeff O'Neill stated they could modify
the agreement to specify either privately owne bus or city owned bus.
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Council Minutes - 11/8/04
GLEN POSUST A MOVED TO APPROVE THE 2005 SPECIFICATIONS FOR
OPERATIONS CITY OF MONTlCELLO EARTLAND EXPRESS AND THE BID
PROPOSAL FORM AND TO AUTHORIZ:: THE PUBLIC NOTICE AND MAILED BID
REQUEST FOR 2005 THIRD PARTY T . NSIT SERVICES WlTH CHANGES
DISCUSSED. BRIAN STUMPF SECONDED TIlE MOTION. MOTION CARRIED
UNANIMOUSL Y.
7.
Public Hcarin and consideration of ado tin assessment for 2004 Core Street Pro' ect
No. 2004-06C.
Kevin Kawlewski from WSB made the pres ntation on the project and the proposed
assessment. Kevin Kawlewski reviewed th areas covered under this phase of the street
reconstruction program which included the rea around Fairway Drive and the Meadow Oaks
area. As part of the work done in the Meado Oaks area there was some storm sewer work
and drain tile improvements made as well as some trunk utility work done to serve the Sunset
Ponds development. Improvements were sc eduled lcx Sandberg Road but were deleted from
the project. School Boulevard between fall n Avenue and fenning Avenue received some
microsurfacing but it was not proposed to as ess this cost back.
Kevin Kawlewski then reviewed the project osts which came to $1,146,700. To fund this
project cost, $159,330.00 would come lrom t e trunk funds, $487,195.25 would be assessed
and $500,174.00 would come iTom the street reconstruction fund. With the first phase of the
reconstruction program, the City Council est blished a rate of $2500/unit for residential
property. This flat rate is to be adjusted annU' Ily for construction price index. The CPI fe)r
this year was 5.7% making the flat rate for th residential units $2,642.50. The storm sewer
work that was done was assessed at $30!tt. It was noted that driveway improvements were
done for two properties and there were assess ent agreements covering these two parccls.
Brian Stumpf asked about the letter received rom Gerard Zierdon that referenced utility
repair. Kevin Kawlewski stated that the prop rty was proposed to be assessed for street
reconstruction only and was not receiving an additional assessment. Glen Posusta asked if
the City was picking up any cost for Freeway Field. Bret Weiss said it would typically show
up on assessments based on front footage but ecause this was on a unit basis it was not
shown. Glen Posusta questioned the indirect ost of 19%. Kevin Kawlewski indicated that
the engineering cost was 9.] % and the City c( sts (administration, legal, etc) was] 0.8%.
Robbie Smith asked about the work on Schoo Boulevard and if it was going to be assessed.
Kevin Kawlewski stated it was maintenance ark and was not planned to be assessed.
Mayor Thielen then opened the public hearing. Jack Nelson, 8 Center Circle, questioned what
type of warranty would be on this work. He fi-It since he was paying for it there should be
some kind of guarantee. He stated in other co munities they wait a season before placing the
second lift of blacktop. If the street does not hold up and cracks or is in need of additional
repair is the City or property owner responsibl for the additional maintenance cost. Kevin
Kawlewski explained in this project there was not a lot of utility work. Basically the street
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was taken up and a new surf~lce laid down s he didn't expect that there should be much in the
way of settlement. He noted in the Meado Oaks area some subgrade material was removed.
He stated typically the contractor warrants t e work for a two year period. After the two year
period the City is responsible fix the work. Bret Weiss added that while once it was common
practice to wait on placing the wear course ntil freeze/thaw cycle had passed, because of
improved compaction methods and technol gy, this was practice was changing.
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Kevin Lang, 2862 Oakview Lane, questione the amount of the driveway cost shown on his
assessment. lie stated that what he was quo ed was not what the price came in at. 100% of
the driveway cost was assessed to his prope y and he was under the understanding that the
first ten feet of his driveway needed to be to n out in order to do the storm sewer work. Kevin
Kawlewski indicated that there was an asses ment agreement with the property owner
covering the driveway work. Kevin Lang w nted to know if the $2,600 driveway assessment
included the ten feet that was needed to be r moved for the storm sewer work. Kevin I,ang
questioned the location of the catch basin. e is concerned about paying for a catch basin that
was put in that is not doing anything. Kevin Kawlewski stated there is still some site grading
and restoration work to be done and pointed ut that the assessment proposed is the total
assessment fix the work even though not all he work is completed at this time. Brian Stumpf
questioned whether the City wants to hold 0 'on assessing this particular parcel until the
question is resolved. Robbie Smith noted th t Mr. Lang's assessment was just fc)r street and
driveway improvements and that his pro pert received no assessment for the storm sewer
work. The City will check on the driveway ost and notify Mr. Lang of their findings.
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Gary Kraft, 1100 Meadow Oak Drive, stated hat since the storm sewer work was done, they
have noticed an improvement in the drainage in the area. He did however, question only four
houses receiving an assessment for this impr vement when it drained a much larger area.
Glen Posusta stated he had a problem with th. se residents paying for any of this cost sinee it
was problem that was created by the develop lent to the east (Parkside at Meadow Oaks). He
questioned who the engineer was who okaye a project allowing runoff water to flow onto
other property. Bret Weiss responded that th improvements in the Meadow Oaks
devclopment were engineered by a private de eloper. It was designed with a pipe under the
pathway to drain the area. WSB approved th design and the installation was done by the
developer's engineer. Bret Weiss noted any ther way of taking the water away from the area
would have been very difficult. Bruce Thiele agreed that more people should be paying far
this improvement than just the faur homeown rs and suggested the City pick up more of the
cost. Gary Kraft said the ditch pretty much c anged into wetlands with the addition of the
houses to the south and with the grading of ev rything back towards their houses. At that
point the water problems began. Glen Posust felt the City was culpable on this. Bruce
Thielen stated the City needs to find a solutio and not just find fault. John Simola stated
that what was there originally was an open dr inage ditch. Some of the property owners
abutting the ditch put in a pipe so that they co ld reclaim their back yard. "fhe City has
reduced the proposed assessment for the drain ge work by almost 50%. The only thing the
City was asking was that in the spring the Cit would bring black dirt to the site and the
property owners would agree to seed or sod th site thus completing the restoration.
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Council Minutes - 11/8/04
John Simola also addressed the storm sewe assessment for Steven Hagedon. The assessment
was reduced from $8,000 to $3,000. Bruce Thielen questioned whether the Council felt this
assessment should be reduced further. Bru e Thielen felt the houses behind these properties
should be contributing to the cost oftheim rovement and Glen Posusta concurred.
Brct Weiss stated the drainage ditch in plae was functioning the way it was designed to. He
stated the City has storm drainage easement to allow for the surface movement of runoff
water or for placing of storm drainage pipes Bret Weiss stated the choice of assessing this
was ultimately the Council's. Glen Posust brought up the policy the City used in assessing
the storm sewer pipe for Gillard Avenue. ret Weiss reiterated that the manner in which the
City chose to assess this project was up to t e Council.
Paula Larson, I Fairway Drive, stated that t ey had recently moved to Monticello. She
questioned why the street improvements we e not funded by taxes rather than assessments.
Bret Weiss stated that one of the reasons the City chose to assess a portion of the cost back to
the property owners was to meet bonding re uirements. Since the City needs to issue bonds
to fund these improvements, 20% of the cos must be assessed or the City would need to hold
a reIerendum. When the City set up the stre t reconstruction program they established a
policy where a portion of the cost would be' ssessed back against the property owners and the
balance would come Irom the street reeonstr ction fund.
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Charles Walters, nx Acorn Circle, stated he had talked to Glen Posusta about the ballfield
issue and why that was not assessed. Since he City was already picking up a large portion of
the project cost directly, the ballfield site wa" not assessed separately. Mr. Walters also stated
that the development of Eastwood Knoll an the traflic it generated were responsible in part
for the deterioration of the road and that dev lopment should pay for some of the costs. Bret
Weiss pointed out that the City's policy is th t the property owner would be assessed for
improvements to whatever street his drivewa came out on. Mr. Walters stated he felt the
assessment was too high for cosmetic work. ret Weiss explained that a pavement
management study was done and he explaine the process the City used to determine which
streets were in need of reconstruction. Chari s Walters questioned the value of the work that
was done this year as compared to what was one in Phase I of the street reconstruction
program. Bret Weiss noted that the street b, se was not good in the Meadow Oaks area
where the clay soils were located. Charles W Iters also stated that they replaced the curb in
front of his house and now it is lower that it as before. Keven Kawlewski they would have
the contractor look at this item.
Mayor Thielen then closed the public hearing on the proposed assessment for the 2004 Core
Street Reconstruction Project. Bruce Thielen stated he would like to see the City pay for the
storm sewer assessment for the four propertie on Oakview Drive. Public Works Director,
John Simola, asked if it was the Council's int nt that the residents will still be responsible for
completing the seeding/sodding/restoration w rk. Council indicated that would be the case.
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ROGER CARLSON MOVED TO ADOP'T ' 'HE ASSESSMENT ROLL WITH THE CITY
PICKING UP THE STORM SEWER ASSE SMENT FOR THE FOUR PROPERTY
OWNERS ON OAKVIEW DRIVE FROM lIE SEWER TRUNK FUND. ROBBIE SMITH
SECONDED THE MOTION. MOTION C - RRIED UNANIMOUSLY.
8.
Public Hearin and consideration of ado
Sienal Installation. Proiect No. 2004-I9C.
assessment for TO 25/School Boulevard
Bret Weiss provided background informatio on the project scope and proposed funding of
the project noting that the project included 11 e traffic signal, striping and curb ramps. Some
of the cost of this project was included in th TH 25 Project which amounted to approximately
$31,200. Construction costs came to $168, I 0, indirect costs $41,000 and MnDOT supplied
materials in the amount of$36,000 making total cost 01'$277,000. MnDOT picked up
$171 ,000 of the cost leaving a project cost 0 . $176,000 to be assessed. At their last meeting,
the Council directed that the City pick up ha f of the cost leaving $88,000 to be assessed. Bret
Weiss stated the assessment was based on trips generated and indicated that since some of the
land is currently undeveloped they based the r assessment on proposed land use.
Mayor Thielen then opened the public heari g. JefTRoiger, 3795 Hayward Court South,
talked about the City's street assessment pol' cy and asked if assessments for traffic signals
were normal. Bruce Thielen stated that the omeowners are not being assessed for the traffic
signal. Bret Weiss indicated that most com unities levy some kind of assessment for street
improvements and as far as the assessment l' r signals goes it varies among cities.
Glen Posusta questioned the difference in th cost figure noted in the presentation and the one
in the agenda packet. lie also questioned t le costs that were picked up MnDOT and noted
his concern about what MnDOT would pick p on the I-94/CSAH 18 interchange. The
question was also raised if a council membe who was being assessed on the proposed project
should vote on it. The City Attorney stated t at was up to the council member and whether he
felt it was a cont1ict of interest.
Mayor Thielen then closed the public hearin
Bret Weiss commented on the concerns abo t MnDOT's participation in the interchange
project. He stated they have a letter from M DOT stating what they would pay for but until
the project is bid, there would not be a firm ollar fIgure.
BRIAN S'fUMPF MOVED TO APPROVE RESOLUTION ADOPTING THE
ASSESSMENT ROLL FOR TI IE TH 25/SCHOOL BOULEVARD SIGNAL, PROJECT NO.
2004-19C AS OUTLINED IN THE ASSES MENT ROLL WITH A TOTAL ASSESSMENT
AMOUNT OF $88,000. ROBBIE SMITH SECONDED THE MOTION. MOTION
CARRIED WITH GLEN POSUSTA VOTI G IN OPPOSITION.
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Glen Posusta noted his opposition was beca se he felt the $88,000 total should be reduced
further.
9.
Public hearin on the issuance of notes b
Minnesota Dia nostic Incor orated for t
City Administrator, Rick Wolfsteller explai ed the purpose ofthe public hearing. The City
of Milaca is proposing to issue notes for the purchase of hospital equipment. Since this
equipment will be used in both the Monticello and Princeton hospitals these cities were being
asked to support this issuance. The notes ill be issued by the City of Milaca and will not
count against any obligations issued by the ~ity of Monticello in 2004.
Mayor Thielen opened the public hearing. 0 one was present to speak for or against the
proposal. Mayor Thielen closed the public eanng.
GLEN POSlJSTA MOVED TO ADOPT A ESOLUTION APPROVING THE ISSUANCE
Of BONDS BY THE CITY Of MILACA. OGER CARLSON SECONDED THE
MOTION. MOTION CARRIED UNANIM USL Y.
10.
Canvass of 2004 election results.
Included with consent agenda approval. Ca vass results declare Clint Herbst eleeted as
Mayor and Torn Perrault and Wayne V. Ma or elected to the Council.
11.
Rick Wolfsteller reviewed the bids submitte . Greystone Construction, who was the
contractor on the liquor store expansion sub itted the low bid of $649,725.00. The
architect's construction estimate was $534,0 0 so the low bid was approximately $100,000
higher than the construction estimate. The ouncil could eonsider trying to scale the projeet
back and rebid or accept the bid as submitte. Fred Patch, Building Official, stated that
based on the design it would be a difficult p oject to try to scale back. Brian Stumpf asked
where the extra funds would come from. ick Wolfsteller replied that most of the funds
would come from the capital outlay fund an the rest would come from general fund reserves.
The City does have funds in place to cover t is phase of expansion. Bruce Thielen asked if
the Library Board was comf()rtable with the id amount. Jacqueline Gordon from the
Monticello Library Board was okay with the bid and they rccommcnded proceeding.
BRIAN STUMPF MOVED TO ACCEPT T E BIDS FOR THE MONTICELLO PUBLIC
LIBRARY EXPANSION PROJECT AND WARD TilE CONTRACT TO GREYSTONE
CONSTRUCTION COMPANY IN THE A OUNT OF $649,725. AND AUTHORIZE THE
CITY TO ENTER INTO A CONTRACT W TH GREYSTONE CONSTRUCTION
COMPANY FOR THE CONSTRUCTION f THE MONTICELLO LIBRARY
EXPANSION PROJECT. ROBBIE SM!'rl SECONDED THE MOTION. MOTION
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CARRIED WITH GLEN POSUSTA VOT NG IN OPPOSITION.
Glen Posusta stated his opposition was bec use he has a hard time with the City not being able
to control costs and cited the expansion oft e project from $450,000 to $758,000. He felt the
City should reject all the bids and start over
12. Consideration of resolution declarin int nt to reimburse ro' eet costs throu h future
bond sale.
Approved with the consent agenda with the mount to bc reimbursed through future bond sale
of $3,085,000.
13.
Consideration of an offer to
Kine:bay.
Rick Wolfsteller reported that the City has r ceived two offers for the purchase of2.7 acre
parcel ofland lying south of the proposed A plebee's site in the plat ofJefferson Commons.
The two oHers are similar. However since ne was just received today there has not been an
opportunity to thoroughly review it and com are it with the other offer. Bruce Thielen
suggested that this be tabled so an analysis c uld be done. Brian Stumpf said he didn't want
to get into a bidding war and felt the City Ad ninistrator should analyze the two offers and
make a recommendation to the Council. 01 n Posusta felt the City should get the most
amount of money for the land. Glen Posusta didn't feci there is a rush to sell the land and
questioned whether this couldn't wait until n xt year. Glen Posusta stated he didn't believe
the City was retailing this property like it sho ld be done and that City should be setting the
price they want. Rick Wolfsteller stated that here were issues to be considered in reviewing
the letter of intent and that should be done be ore making a decision.
BRUCE THIELEN MOVED TO TABLE ACTION ON THE LETTERS OF INTENT UN'fIL
THEY COULD fiE ANALYZED BY THE C TY ADMINISTRATOR AND TO BRING
THIS MATTER BACK AT THE NOVEMB R 22, 2004 MEETING. ROGER CARLSON
SECONDED THE MOTION. MOTION CA RIED UNANIMOUSLY.
ment and assessment
Approved with the consent agenda to scheduI a workshop for November 22, 2004.
Authorization to
Sewer Extension
for the SE ]nterce tor Trunk Sanita
Glen Posusta wanted to know if this is a project the City would look for RFP's on like they
did on the water tower project. Rick Wolfstel er stated that when the 1-94/CSAI { 18
interchange was being discussed, the need for t is segment of sanitary sewer interceptor was
10
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.
Council Minutes - 11/8/04
looked at. The feasibility report is needed 0 that how big of an area the pipe needs to serve
can be analyzed. Bret Weiss estimated the.tudy cost at $15,000-$20,000 which would be
funded from trunk funds and development ees.
BRUCE THIELEN MOVED TO AUTHO lZE WSB TO PROCEED WrrH THE
FEASIBILITY STUDY FOR THE SE INT RCEPTOR TRUNK SANLT AR Y SEWER
EXTENSION, CITY PROJECT NO. 2000-12C. BRIAN STUMPF SECONDED THE
MOTION. MOTION CARRIED UNANI OUSL y.
16. Consideration of authorization to submit Environmental Assessment Worksheet to the
Environmental uali Board for the R n Commercial Develo ment.
Approved with consent agenda to submit E vironmentaI Assessment Worksheet to the
Environmental Quality Board.
17. Consideration of an alternate site for the ater tower in the Jefferson Commons Plat.
Public Works Director, John Simola, inforn ed the Council of the discussion that occurred at
an informational meeting held on Novembe 3, 2004 concerning the proposed water tower
site. Property owners within 350 feet ofth site were notified of the meeting. Three
residents of the Groveland development wer at that informational meeting to express their
concerns about the tower location. Some of the comments residents made at that meeting
were: 1) They didn't want to look out of thei windows and see a water tower; 2) The tower
would cast shadows; 3) Not happy with the t 0 construction period; 4) They believed the
tower would lower their property values; 4) hey did not have a choice in where the tower
was proposed and if thcy had known the tow r was to be located adjacent to them, they would
not have selected their lot. John Simola sai when the site was previously discussed, the site
chosen was based on economics as this site ould be the least costly to utilize for a water
tower site. John Simola estimated that the t wer would be approximately 350 feet from any
residence.
John Simola noted that other sites were sugg sted by the residents and he reviewed some of
the concerns with those other sites. He noted that a number of the locations proposed would
still be adjacent to residential properties and e felt if these people didn't want it in their back
yards neithcr would other residents. Another consideration was availability and size of the
water main to the site and whether an aItitud valvc would be needed. John Simola stated
that evaluations would have to be done of the various sites before these questions could be
answered. Brian Stumpf felt that any propos d site abutting residential property would
generatc a "not in my back yard" response fr m the residents. John Simola stated that if
another site was considered that was adjacent to residential development a public
informational meeting would be held and pu lie notice would be given.
Residents from the Groveland development ere given an opportunity to speak on the
proposed water tower location. Barry Voight 3802 Hayward Court South stated he Jelt
11
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Council Minutes - 11/8/04
.
receiving information about the fi)ur sites a ailable in the Jefferson Commons plat was good
information to have. He asked about the si e on Outlot B and the Council indicated that
because of the power lines that site was not suitable for this use and John Simola stated there
is only an 8" line to that area.
.
Luke HoHman, 3845 Hayward Court South stated while they are at fault in part by not
checking into what could all be built in this area, he would not have selected his lot had he
known thcre was a possibility of a watcr to er being constructed nearby. lie emphasized that
in other communities the water tower was t ere before the development was so the property
owner could choose whether he wanted to e next to the tower. Brian Stumpf stated that at
this time the City does not have an idea as t the cost of relocating the tower to any of the
other sites suggested and that is something he City needs to look into before they make a
decision. Cilen Posusta said if the City had eld a public hearing before sclccting this site
some of this could have been avoided. H didn't feel the City took the residents interest to
heart on this matter. Robbie Smith felt it w s in the City's best interest to look at the alternate
sites but noted that the original site was cho'en bccause it was the most cost eHective location.
Robbie Smith also took issuc with a statem nt made that it should be located adjacent to
Kjellberg's because thosc residents don't pyas much in taxes. Robbie Smith said thc bottom
line for him was looking at thc costs involv d and relying on the recommendation of the
Public Works Director and the Sewer and aterSuperintendent. Hc fclt as a compromise sitc
thc site north of the storm water pond and so th of the road should be considercd as that was
more centrally located. Rick Wolfsteller su gested looking at costs for all the alternative
sitcs.
Josh Ilamlin at 3816 Hayward Court South tated he did not want to be adjacent to the tower.
Aaron Cahill, 3786 Hayward Court South felt being adjacent to the watcr tower would lower
his property values. He felt sites #2, #3 or # would be better and statcd he did not like being
adjacent to a commercial site but that wasn' as bad as being next to the tower. .lefT Roiger,
3795 Hayward Court South statcd he would not have selected his lot had he known a water
tower was to be constructed adjacent to it. ~ e felt other sites should be considered. He also
suggested that the City should consider com ensation for those property owners whosc
property valucs dropped because of the wate tower.
Glen Posusta said the only reason that any p operty owner was notified was because he
brought it up. Robbie Smith reiterated his c ncern about not placing the tower adjacent to
Kjellberg's because they would have the sa e concerns as the residcnts in Grovcland. John
Simola stated there is a limitedl period of ti e that could be utilized to study the sites and
come back to the Council with cost inf<.mnat on.
.
BRIAN STUMPF MOVED TO AUTHORI E THE CITY STAFF TO WORK WITH WSI3
AND BONESTROO AND ASSOCIATES "10 DETERMINE WHETHER OR NOT THE
NEW TOWER LOCATION IS SUIT ABLE ,'OR THE PLACEMENT OF THE WATER
TOWER FROM AN OPERATIONAL PO T OF VIEW AND TO IJI:TERMINE
WHETHER OR NUl' AN ALTITUDE VAL E AND ITS COMPLEX OPERATIONAL
12
d
Council Minutes - 11/8/04
.
EQUIPMENT IS NECESSARY AND TO D'TERMINE THE ADDITIONAL COSTS IN
LOCATING THE WATER TOWER AT A OTHER SITE AND TO LOOK
SPECIFICALLY AT SITE #3 AS AN ALTERNA]'IVE LOCATION. THE RESULTS OF
TIns S'rtJDY WILL COME BACK TO TH COUNCIL AT THEIR NOVEMBER 22, 2004
MEETING. GLEN POSUSTA SECONDE THE MOTION. MOTION CARRIED
UNANIMOUSL Y.
Roger Carlson asked if the staff was to study only site #3. Brian Stumpf stated since sites #2
and #4 were adjacent to residential propertie ' they should not be considered.
Other Items:
1) Kramer House - Brian Stumpf updated the Counc'l about a fire at the Kramer house, City owned
property. Arson is suspected and until the investigaion is completed no clean up of the site can be
done. Fred Patch estimated that clean up ofthe site ould be approximately $12,000. fIe will get
quotes for clean up and asked that Council authorize the City Administrator to accept the quotes.
Brian Stumpf said he would like to see the quotes co e back before the City Council.
2) Cedar Street - Glen Posusta questioned the hauling from the Wal-Mart site on Cedar Street and
whether there is a possibility of damage to the road b cause the wear course isn't laid. Bret Weiss
indicated that he didn't think there would be but if th re was any damage it could be corrected before
. the wear course was placed.
18. Approve pavment of bills for November.
BRIAN STUMPF MOVED TO APPROVE A YMENT OF BILLS. GLEN POSUSTA
SECONDED THE MOT'ION. MOTION CA RIED UNANIMOUSLY.
19. Adiourn.
BRIAN STUMPF MOVED TO ADJOURN T 10:20 P.M. ROGER CARLSON
SECONDED THE MOTION. MOTION CA RIED UNANIMOUSLY.
Recording Secretary
.
13
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SA. Consideration of a
new hires a
A. REFERENCE ANn BACKGROUND:
Council Agenda - 11/22/04
artures for MCC and Public Works. (RW )
The Council is asked to ratify the hiring an departures of employees that have occurred
recently at the MCC and Public Works. A you recall. it is recommended that the Council
officially ratify the hiring of all new emplo ecs including part-time and seasonal workers.
B. ALTERNATIVE ACTIONS:
1. Ratify the hiring of the employees a' identified on the attached list.
C. SUPPORTING DATA:
Lists of new employees.
.
.
. NEW EMPLOYE ES
Name Title Depa tment Hire Date Class
Jurrens, Clayton Custodian MCC 11/6/2004 part-time
Moore, Richard Constr Insp Public '^ orks 11/1/2004 full-time
Nordlund, Andrew Life guard MCC 11/11/2004 part-time
TERMINATING EMPL JYEES
Name
Reason
Depan ment
Last Day
Class
.
.
employee councillist.xls: 11/18/2004
5~
.
.
.
SB.
Council Agenda - 11/22/04
A. REFERENCE AND BACKGROUND:
In accordance with the Overall Street Reco struction Program, the City Public Works
Department and WSB & Associates, Inc. h ve completed a feasibility study for the
improvements proposed for 2005 (Area 3). The project is generally referred to as the
Hillcrest Area. The report contained in the ouncil packet presents two alternatives for
the street reconstruction. Option 1 propose widening of the streets with the construction
of B618 concrete curb and gutter, bitumino s pavement, and the installation of a
formalized storm water collection system. his option also allows for the construction of
a bituminous trail or concrete sidewalk con istent with the City's Comprehensive Trail
Plan. Option 2 proposes the widening of st ets but with bituminous pavement
reconstruction with the construction of the c ncrete curb and gutter. The improvements
proposed with this alternative would recons ruct the ditch lines along with driveway
culverts due to the ditch relocation as well a lengthening or upgrading of culverts under
the streets due to the widening. In addition, there is some sanitary sewer and watermain
repair included with the project.
There are several issues that will need to be ddressed by the Council relating to the
proposed project. These issues include:
· The application of current engineeri g standards for street reconstruction in an
established neighborhood. Essential y minimum street widths and the
construction of concrete curb and gu ter.
· The installation of a formalized sto water collection and treatment system.
This process will also request Counc I input on the level of storm water quality
and rate control the City would pro vi e with a ponding or water quality/treatment
program.
· The size and cost ofthe project coul allow this project to be constructed over
two years. Council direction will be ought based on available City funding and
the level of assessment to be collecte on the project.
· Construction of a sidewalk or bitumi ous trail facility through the project limits.
A sidewalk or trail in this area is con istent with the Comprehensive Trail Plan.
However, the possibility of construcfng this improvement is tied in to the option
ultimately selected by the City Counc'I.
· The anticipated level and types of ass ssments and City funding.
· Realignment of some intersections w'thin the project area including River Street
and Otter Creek Road. Both of these cenarios would require the acquisition of
additional public right-of-way.
C:\[)OCUME~/1DA WN-/. GROILlX:AI,S-/ITempvWN ITM-I/22o.t.doc
.
.
.
D.
Council Agenda - 11/22/04
Funding for the proposed improvements w uld include a combination of the City's
annual street improvement fund, sewer and water trunk funds, trunk storm sewer funds,
and assessments. The information that wi] serve as the basis for any Council decision
will be presented at the Council Workshop rior to the City Council meeting.
The report is included for your review. Cit
the Council accept the feasibility report an
2004 for the proposed project area. WSB
informational meeting during the week of
will be presented at the hearing.
B. ALTERNATIVE ACTIONS:
staff and WSB & Associates, me. ask that
order the public hearing for December 13,
Associates, Inc. will be scheduling an
ecember 6, 2004, to gather public input that
I. The City Council accept the feasibil ty report and order the public hearing.
2. A second alternative would be to no accept the feasibility report and provide
further direction for modifications 0 further analysis.
3. A third alternative would be not to a cept the report and not move forward with
the reconstruction program.
c.
STAFF RECOMMENDATION:
It is the recommendation ofthe City Adrnini trator, Public Works Director, Street
Superintendent, and the City Engineer that t e City Council formally accept the report
and order the public hearing as proposed in lternative No. I.
SUPPORTING DATA:
Copy of the Feasibility Report for the 2005 treet Reconstruction Program - Area 3 as
prepared by WSB & Associates, Inc.
C;IDOC(JMR~J\DA WN-J, Gk01LOCALs.-IlTem/IIAGN ITM. / I JJV4.dfJC
.
.
.
Council Agenda - 11/22/04
sc. Consideration of an a ealofPlannin C mmission's denial of Variance to the 30-foot
rear ard setback for an attached 4-unit t wnhome com lex in an R-2 district. (JO)
REFERENCE AND BACKGROUND
At the request of staff and the applicant, it is recommended that the Council continue the public
hearing on this matter.
1
.
.
.
7.
Council Agenda -11/22/2004
Consideration of alternate site for the loc' tion of the new water tower in .Jcfferson
Commons. (.I.S.)
A. REFERENCE AND BACKGROUND:
At the last council meeting held on November 8, 2 )04, after hearing input from neighbors, concerned
citizens, stafl and council, Council Member Stumpf made a motion to study Site 3 for a new location of
the water tower. Site 3 is located about 350' nort westerly of the Mueller Theater. The motion was
seconded by Council Member Posusta and passed u animously.
City staff met to discuss the proposed site at our no mal site review meeting on Wednesday, November
10,2004, and again on Wednesday, November 17,2 04. The location of the water tower on the site was
discussed along with proposed building placement and size of the lot necessary to facilitate a building. The
following two options were looked at:
OPTION 1: A site containing 2.12 acres. While t
public building and parking, although the site will
original site on the north side of School Boulevard.
is is somewhat restricted, it would accommodate a
ork, due to its shape it was not as efficient as the
OPTION 2: This site consists ofa little bit more Ian on the site up to 2.8 acres and actually made the site
work better, it allowed more room for the parking an the building.
The differences between the two options are mainly I nd costs and we do not have to choose one over the
other at this time. The City Administrator had indica ed that we can take a "wait and see" approach with
development that occurs to the north of the theater, hether or not they need additional land bef()fe we
choose which one of the options.
Mark Rolfs from Bonestroo Rosene & Anderlik dev loped two site plans, one for each of the options.
These are concept plans, not the final site plans, as ace ss to the tower, tower fencing and landscaping will
change to be more aesthetically pleasing to the site and to complement construction that may occur around
the site.
Brett Weiss put the site assessment/teasibi I ity study t get her based upon all of the information gathered
from our staff meetings including input from the City dministrator, City Planner, etc. Mark Rolfs from
Bonestroo Rosene & Anderlik worked with Nancy Zi gler to determine any hydraulic differences in the
operation of the tower at the original site versus the 1 ew site. Time constraints did not allow the final
determination as to whether an altitude valve would be needed at the original site or this alternate site, but
it was determined through the modeling done on Th rsday, November 18, 2004 that the tower at both
locations would function hydraulicly the same. Cons quently, if an altitude valve was not needed at the
original site, it would not be needed at the second site a ld visa versa. The actual study of the necessity for
an altitude valve will take place during the design oft e tower and could not be accomplished in such a
short time hame.
The cost difference of the original site and the propo ed new site is extremely small mainly due to the
smaller size of the new site in compared to the original parcel. The smaller size helped to offset some of
the costs of locating the tower to the new site. Shoul we determine that we choose to use Option 2 to
.
.
.
Council Agenda -11/22/2004
provide a little bit more land around the water tower l' r a better building site in the future that would result
in an additional estimated land value cost over and ab ve the original site 01'$216,535. That decision does
not need to be made at this time, A copy of the feasi ility study from WSB & Associates is enclosed for
your review. Please refer to it for more specific data in regard to costs and options.
B. ALTERNATIVE ACTIONS:
I, The first alternative is to approve the new location for the water tower based upon the site
assessment/feasibility study which shows op ion 1 to be equivalent in costs and operation to the
original site and Mr. Mike Muller indicates t at the tower would have no negative impact on his
theater project and this site is set back a r asonable distance from all existing or proposed
residential property,
2. The second alternative would be to look at a ditional alternative sites, such as Site 4 located on
the southern boundary of the Jefferson Com ons Plat. Such sites would require additional study
time, higher costs and additional public infon ational meetings if they visually impact residential
property,
C. STAFF RECOMMENDATION:
Based upon the results of the two staff site review me tings, the additional study by Bonestroo Rosene &
Anderlik and WSB & Associates, comments by Stev' (i-rittman with Northwest Associated Consultants,
the site plans proposed for the new site and the f asibility study, City staff consisting of the City
Administrator, Deputy Administrator, Public Works IYrector, Economic Development Director, and Water
& Sewer Superintendent, recommends that the City ~ouncil approve alternative #1 which includes the
conceptual site plan as shown in supporting data and abeled Figure 181, Option 1 with a determination
at a later date, whether or not Option 2 (which is Fig re 182, Option 2) should be selected. This would
allow us to get back on track and on schedule with ur water tower project. City staff believes that it
represents the site with the least visual impact to all existing and future residential properties and does not
represent the cost increase over the original site seleced. In addition to being the recommendation of the
City staff, it is also the recommendation of the City ':ngineer and our consultant selected to design the
water tower, Mark Rolfes from Bonestroo Rosene & Anderlik.
D. SUPPORTING DATA:
Copy of site plan concept Figure 1 B 1, Option 1 by Bonestroo Rosene & Anderlik; Copy of site plan
concept figure 1 B2, Option 2 by Bonestroo Rosene Anderlik; Water tower site assessment by WS8 &
Associates (Feasibility Study); Copy of letter from M'ke Muller.
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CITY OF MONTICELLO
MONTICELLO 1 MG WATER TOWER
FIGURE 181
J[]j Bonestroo
Rosene
~ Anderlik &
. \J. Associates
Engineers & Architects
1366041 OLFIG1 B.DWG DATE: 10-15-04
COMM: 1 66-04-101
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CITY OF MONTICELLO
MONTICELLO 1 MG WATER TOWER
FIGURE 182
J[]j Bonestroo
Rosene
~ Anderlik &
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Engineers & Architects
136604101_FIG1B.DWG DATE: 10-15-04
COMM: 366-04-101
l
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.
.
A
WSB
& Associates, Inc.
To:
From:
Date:
Reo'
1.
Honorable Mayor and City Counci
John Simola, Public Works Direct r
Rick Wolfsteller, City Administrato
Bret A. Weiss, P.E., City Engineer
November 22, 2004
Water Tower Site Assessment
City 0/ Monticello Project No. 200 -30e
WSB Project No. 1488-98
BACKGROUND:
Memorandum
The City of MonticetIo is planning the const ction of a 1 million gallon elevated storage
tower located in the Jefferson Commons de elopment, west of Trunk Highway 25 in the
area of future School Boulevard. The origi al proposed tower site was located adjacent
to the west end of existing School Boulevar along the north property line and south of
the Groveland 4th residential subdivision. T e City Council, at their November 8th
Council meeting, requested that City staff e aluate a site located towards the middle of
the Jefferson Commons plat, just west ofth proposed Muller Theatre. This feasibility
report intends to evaluate the potential addifonal costs associated with relocating to this
site from the original proposed location. analysis by the City's water tower
consultant (BRAA) and WSB is being comp eted to evaluate the proposed site from a
water distribution standpoint to make sure t at there are no issues related with placing a
tower in that location. This report is intend d to evaluate issues such as additional
watermain, roadway extensions, land costs r the two sites, and other factors that should
be compared between the two sites to dete . e what additional costs are associated with
locating the tower in the alternate location, oth from a standpoint of being a cost that is
expended earlier than anticipated as well as cost that is not recoverable in the future. A
summary of those items is noted as follows:
School Boulevard Construction: Bo h sites are located adjacent to School
Boulevard right-of-way. The street as not yet been constructed, but is likely to
be constructed prior to completion 0 the tower. The front footage and associated
estimated costs are noted as follows:
.
Front
Foo
Original Site 316
........---............-.-----.---.-----.---------...--.---------..---.----"., ""'....-."...."""...""'''................
Proposed Site Option 1 306
"""""..,.""......".........................-.................-.................---.--.-........-- .........................-...- .
Proposed Site Option 2 481
Estimated Project
Cost/FF
$200
$200
$200
Total
$63,200
$61,200
$96,200
----I
.
.
.
Honorable Mayor and City Council
John Simola, Public Works Director
Rick Wolfsteller, City Administrator
November 22, 2004
Page 2
I t is assumed that access to the site fi r construction could be across unpaved areas
and access to the completed site, if S hool Boulevard is not in place, could be
along the shared Muller Theatre driv way.
· Parcel Area: Three alternatives are eing explored for the water tower location
and are noted as follows:
a. Original Site: 2.3 acres (encum red by sanitary sewer easements)
b. Proposed Site Option 1: 2.12 ac es
This is the minimum site require for the water tower and could likely
accommodate a small public buil ing.
c. Proposed Site Option 2: 2.80 ac es
This increased site area is not re uired for the water tower; however, this site
would accommodate a larger bu' ding ifthe City would like to preserve the
area.
Parcel Cost: For the purposes ofthi report, it is assumed that the square foot cost
for both sites is $6.00/SF. The orig' al site is encumbered by utility easements
and the proposed site is located furt er from TH 25. The following is the land
acquisition cost for each site:
.
Parcel
SF
____ ____~??:_1 ~~_..L..... .~.~.:.??___
92,382 I $6.00
m..... ........._...._.___._____________ -------L--- ----------------------------
I
121,803 ! $6.00
Original
......................................,,,.............,
Proposed Option 1
''''''''''''.................-..--..--...----..--.---......-
Proposed Option 2
Total
$601,128
$554,292
"......,.,.,.,...----.-.........-..-
$730,818
Difference
from Original
$0.00
($46,836)
...--.-......-........---.
$129,690
· Trunk Watermain Extension: The ter tower is intended to be served initially
by a 16-inch watermain connected t the School Boulevard system. Other system
improvements will be completed as evelopment occurs in the future. This
analysis assumes that the watermain ould be necessary in the future and
therefore compares the front footag cost (1/2 ofthe cost of a linear foot) in
addition to the cost to prematurely c nstruct a portion of the watermain.
-1
.
Honorable Mayor and City Council
John Simola, Public Works Director
Rick Wolfsteller, City Administrator
November 22, 2004
Page 3
Assuming that the watermain is no extended the full width ofthe proposed lot
until School Boulevard is extended there would be an additional 320 feet of 16-
inch waterrnain. This size wate . is approximately $50ILF, not including
hydrants, services, or valves. Ther fore, if we assume that the waterrnain will be
assessed to the benefited propertie , the ultimate cost for the parcels is noted as
follows:
Front
Footage
Original 316
..'.".....___.............._m...... ....-.....".......__......_.........._ .......,........_-_...."....._.._.."mm;..........."'.....~
Proposed Option I 306;
...-...mm....""m.__mm_"...__mm._.."....m.__m..._ mmmmm.. .....______...__._m..._.'. mmm..f_m_.._mm.
Proposed Option 2 481
Parcel
Total Difference
from Original
$25.00 $7,900 $0.00
$25.00 $7,650 ($250)
$25.00 $12,025 $4,125
The total up front length and cost, h wever, will increase from 158 feet to 638
feet or at $50ILF, $7,900 to $31,90 . This is an initial increase of$24,000, which
. will be mostly recovered upon devel pment of the site.
· Storm Sewer: The original site ass ed that School Boulevard would be in place
and a stub was proposed from the si e to the future street. The proposed site is
adjacent to the regional pond and ca directly connect to the pond. For the
purposes of this study, no economic. pact is considered.
· Shared Drivewav Expense: When t Muller Theatre was developed, the City
and the theatre decided to construct shared driveway along the common
property lines on the east and south ides of the proposed water tower site. The
cost ofa 24-foot-wide driveway, incl ding storm sewer, will be split between the
two owners. This was not a conside ation for the original site. This will be an
estimated cost of$25,720 plus storm sewer. There could be some savings in
driveway construction depending on he design of the water tower site.
· Altitude Valve: Based on the compu er modeling completed for the two sites, the
proposed tower site is hydraulically e uivalent to the previous site. Further
analysis is needed to determine if the Ititude valve needs to be installed at this
time, or whether provisions for a fut e altitude valve will be sufficient.
However, this analysis is necessary fo either of the two sites. Provisions for a
future altitude valve are prudent so t t if development of the future water system
requires that installation, the cost is k pt to a minimum.
.
.
.
.
Honorable Mayor and City Council
John Simola, Public Works Director
Rick Wolfsteller, City Administrator
November 22, 2004
Page 4
2. COST SUMMARY:
Item
( )riginal
Parcel
Parcel Cost $t)01,128
..............,....,,,,,,...... ...............................................-............-..., ",......".... .......................-............-..............-....-.....,.. .......,...........
School Boulevard ~ 63,200
Trunk Watermain S7,900
Additional Up Front Watermain Cost $0.00
Shared Driveway $0.00
.................------.-...-.--.---.........................---.....------.----....-..---........................-...-..-.-- .-..-..-.....- .."-,,.....................
Altitude Valve N/ A
TOTAL
$ 72,228
3.
RECOMMENDA TION:
Proposed I Proposed
, Option 1 ! Option 2
$554,292 ! $730,818
$61,200 I $96,200
! $7,650 $12,025
$24,000 i $24,000
$25,720 .. $25,720
..........._L..._...._......_..._.__..................................L.._..._______........................
i N/ A ' N/ A
$672,862
$888,763
The costs between the original parcel and P oposed Option 1 are negligible. While
Proposed Option I is not as convenient for onstruction, it appears to be an acceptable
location for the tower.
Construction ofthe water tower at site loca ion Proposed Option 1 is feasible, necessary,
and cost-effective and should be initiated at he Council's November 22,2004 meeting
Please contact me at 763-287-7190 if you have any questions prior to the meeting.
Attachments
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701 Xenia Avenue
Suite 300
Mpls, MN 55416
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WSS
Water
Alternate ocation
WSB Project No. 01488-98
City Project No.
November 16. 2004
City of Mont cello, MN
Exhibit No.
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WSB Project No. 0148lM18
City Project No.
November 16, 2004
City of Montie lIo, MN
Exhibit No.
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November 17, 2004
Mr. John Simola
Public Works Director
CITY OF MONTICELLO
Office of Public Works
909 Golf Course Road
Monticello, MN 55362
.
Re:
Proposed Water Tower Location Near the Mu ler Theatre
Dear Mr. Simola:
I have reviewed the drawings you provided me show ng the proposed location of the new water tower
approximately 350' northwesterly of the theater, 100' off the power line easement and 60' off School
Boulevard. Realizing that a water tower is an integral p rt ofthe City's water system and that a tower must
be placed somewhere near the water supply system, I ha e no problems with the proposed location and feel
that it will not have any negative effects on the theater roject.
If you have any further questions or if I may be of any a ditional assistance, please feel free to contact me.
Sincerely,
7u4#tA
Mike Muller
.
-j
.
.
.
City Council Agenda - 11-22-04
8. Consideration of a re uest for Prclimina and Final Plat for Otter Creek Crossin
a ro osed commercial and industrial s bdivision. A licant: Otter Creek LLC.
(NAC)
A. REFERENCE AND BACKGROUND:
Otter Creek L.LC. is requesting preliminary and fin I plat approval of an approximately 184 acre
site to be known as Otter Creek Crossing. The site, located northwest of the Grovcland
residential development, abuts Interstate 94 to the ast and County Road 39 to the north. A
majority of the site is zoned agricultural with the e ception of an approximately 47 acre strip of
B-4 commercial zoned land along Interstate 94. T e subject site has been the topic of much
discussion with regards to its use and layout, inelu ing the City purchasing a portion of the site
for an industrial park.
The Planning Commission recommended approval of this plat with the additional condition that
an access road right-of-way or easement was provi ed across "Outlot F" in the southeast corner
of the plat. This recommendation was based on a s etch plan for the industrial portion of the plat
to be acquired by the City. That sketch plan aIltici ates a future street extension following the
Xccl Energy power line potentially intersecting wit 90th Street. This street would be located
roughly in the same location as the current "haul ro d" which has been used to provide access to
the gravel mining operation in thc southwest corne of the land. There is a possibility, depending
on the industrial development pattern, that this stre t may end in a cul-de-sac resulting in the
release or vacation of the road across Outlot F.
The owncrs have subsequently objected to the cond tion requiring the roadway dedication at this
time. In a typical plat, the City would require that t e applicants provide a complete
development plan for the property at the time of pr liminary plat and the dedication of any
roadways at final plat that would be necessary to fa ilitate development.
Because the City will be acti ng as the developer of 1LIch of the land in this proj ect, staiT agrced
to waive the development plan requirement for thes applicants. The request for the road
dedication across Outlot F was requested since the ity would not control the development of
that portion of thc property and it was possible that iming of the City's industrial project could
precede the appl icant' s development of Outlot F. I such a case access to the interior of the
City's development could be lessened.
However, staff believes that when the applicant see s to develop Outlot F, the City will be able
to require dedication of any neccssary roadways at t at time. If required, an extcnsion of the
City's industrial road to 90th could be made at that time. In the futurc, if the road is determined
to bc critically needed prior to Chadwick's develop ent and dedication, the City could consider
eminent domain to acquire it at that time. It is also ossible dependent upon the development
.
.
.
City Council Agenda - 11-22-04
pattern that the City will decide that the road is no needed. As such, staff is prepared to
recommend approval of the plat as submitted, wit out the dedication across Outlot F at this time.
As noted, the applicant is proposing to plat the cnt re site at this time including nine outlots and
two developable lots with the understanding that a amended preliminary plat with in-depth
topography, grading and drainage plans will need 0 be approved for the remainder of the site as
the phased development of the site occurs, Altho gh the staff report to the Planning Commission
addressed general issues and concerns regarding tl e "Moon Motors" site (Lot 1, Hlock 1), a
more in-depth review will be undertaken at the ti e the future applicant submits a CUP site and
building plan application with more sufficient pIa s.
The second development parcel (Lot 1, Block 2) ill be the first 35 acres to be purchased by the
City, The remainder of the outlots generally repre ent the underlying fee ownership remnants
and/or the expected phases of purchase.
Land Use, As previously stated, a majority of he site is currently zoned agricultural with an
approximately 47 acre H-4 Commercial strip ofla d along the interstate. Moon Motors, a
motorcycle/ A TV dealer currently located on the e st side of Highway 25 across from the Town
Center Retail Center, is expected to be relocated t( Lot 1 Block 1 of Otter Creek Crossing. The
proposed use is reflective of the City's Comprehe sive land use plan and is allowed via a CUP in
the B-4 district. A CUP for this use is not being a plied l'(X at this time, rather a simple concept
site layout has been submitted for staff review.
At this time the scope of industrial uses to be developed on the site are not known. During the
December Planning Commission agenda cycle, a roposcd rezoning of the City's industrial
property is to be considered.
Circulation / Access. Otter Creek Crossing is to e accessed via the extension of Chelsea Road.
The City will need to replat the future Chelsea rig t-of-way on the Denny Hecker site to match
that of Otter Creek Crossing. While a concept pIa has been prepared for the industrial park that
identifies preliminary road and lot design, the circ lation pattern of the future industrial portion
of the site will be more specifically determined as sers of the industrial land are identified.
(7radin.~ Plan. The applicant has submitted a preli inary grading and erosion control plan for
Lot 1 Block 1. The City Council may determine t at this is acceptable f()l' the purpose of platting
the site with the condition that a final grading, dra nage, and erosion control plan be submitted
for review at the time of CUP application on Lot Block 1 and at the time of replatting each of
the outlots. The grading plan is subject to the revi wand approval of the City Engineer.
Utilitv Plan. The applicant has submitted prelim'nary utility plans for Lot 1 Block 1. The City
Council may determine that this is acceptable f()f t e purpose of platting the site with the
condition that a final grading utility plan be submi ted at the time of CUP application on Lot 1
City Council Agenda - 11-22-04
.
Block 1 and at the time of replatting each of the ou lots. The utility plan is subject to the review
and approval of the City Engineer.
There are two additional "housekeeping" items to e considered as conditions to approval of this
plat. The first is an existing temporary casement l' r storm water purposes that was provided in
the area of the "haul road" along Outlot F. The Cit and the applicants have discussed
formalizing this casement since the original expect tion was that Chelsea Road was going to
cross the property in this location. The replacemel t of the temporary easement with more
appropriate storm drainage improvements should b made a condition of plat approval.
Second, an easement for sanitary sewer access acr ss the commercial property (shown as Outlot
D on the plat) was granted previously. This easem nt is expected to move based on the
applicant's need to ensure that it does not interfere with the development of the commercial lots.
Plat approval should be conditioned on the executi m of an appropriate document providing for
sanitary sewer access in place of the current easem nt.
B. ALTERNATIVE ACTIONS:
1.
Motion to approve the Preliminary and Fin I Plats of Otter Creek Crossing, hased on a
finding that the land use pattern is consiste t with the City's Comprehensive Plan and
that the plat provides adequate casements a d rights-of-way to ensure proper public
services suhject to the following conditions;
· 0
S ~u
~ 1.
The applicant enters into an agreement ith the City regarding the relocation of the
sanitary sewer easement across "Outlot "
2. The applicant enters into an agreement ith the City regarding necessary revisions to
the existing temporary storm drainage e sement across "Outlot F".
3. As future uses become more apparent, t e outlots will need to be replatted.
4. Prior to development of Lot 1, Block 1, CUP application must be submitted
according to the City's standard develo ment process.
Du.- I
5. The plat be filed and the closing of the 120 acres take place by N()Vl"lllLer~ 2004.
2. Motion to deny the Preliminary and Final Plats of Otter Creek Crossing based on a
finding that proposed plat is not consistent ith the requirements of the Subdivision
Ordinance or the land use pattern of the Co prehensive plan.
.
.
.
.
City Council Agenda - 11-22-04
C. STAFF RECOMMENDATION:
Staff recommends Alternative I - approval of the Otter Creek Crossing Preliminary and Final
Plats with the conditions listed in the report. App oval of the Preliminary Plat allows f(n the
property owner to sell portions of the overall site. When future uses, including Moon Motors,
are phased in, the developers will need to submit etailed plans. The outlots will need to be
replatted and in the case of the agricultural area, r zoned, before the process can continue. The
City has had numerous discussions on the land us and general layout of this particular area. The
proposed plat reflects the intent of those discussio s and should meet the City's zoning and
subdivision regulations, as well as the Comprehe sive Plan
D. SUPPORTING DATA:
Exhibit A - Site Location
Exhibit B - Preliminary Plat
Exhibit C -- Final Plat
Exhibit [) - Preliminary Plans l(x Lot I Block I
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City Coullcil - November 22, 2004
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9.
Consideration of a Pnrchase Agreem nt for the Sale of a 2.7 Acre Parcel owned by the
City: Outlot C, Jefferson Commons. RW/JS/FP)
BACKGROUND:
Tbc City Council on November 8.2004, gave c nsideration to the possible sale oftbe subject
property. At thc time tbere were two potential b ycrs identified by lettcrs of intent. Sincc that time,
one of the buyers has withdrawn his otTer leavin only Michael Krutzig offering to purchase the
property.
Tbe Conncil directed staff to prepare botb offers or consideration at the November 22,2004 City
Cnuneil meeting, thus staII is now prcsenting the Krutzig ofier. Krutzig has met each of the
!ollowing conditions prescribed by tbe City exec t tbat he is desirin 24 montbs within which to
build a buildinQ ( See viii. Below):
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1. An earnest money check in tbe amount of t least $10,000. (Krutzig lias provided $20,000)
An offer in the fonn of a binding purchase greement, to include the following terms:
Square footage price of the land bei g offered. (Krutzig is offering S9.(}0/sq.ft.)
Square f()otage of proposed buildin including square footage retail/office or
restaurant space. (Krutzig's propo ed buildings would provide eitlter 23,906 or
23,581 sq. ft.)
If excess parking is required from th Commuter parking lot, the purchase agreement
should include an amount proposed' s additional compensation for parking stall
deficiency. (Krutzig would pay an dditional S2,0()0.0(} for eaclt stall deficient if
excess parking is required)
Purchase agreement should indicate t at buyer is responsible for decorative street
lighting to be installed at $28.50 per ront foot, buyer is responsible to install public
sidewalk along Deegan A venue and roperty would be subject to an additional
$.05/sq. f1. if restaurant use is propos d on the site. (Krutzig Itas agreed)
Purchase agreement should indicate a y time frame requested for governmental
approvals with a closing date not to e ceed 180 days. Closing date to coincide with
issuance of building pemlit. (Krutzig Itas agreed)
Purchase agreement should note any 0 her contingencies you want to propose in your
offer. (Krutzig requires tltat City Ita paid all otlter assessments, and tltat tltis
purcltase is contingent upon financin approval)
Purchase agreement should note that siler reserves right to approve architectural
design. (Krutzig Itas agreed)
City to reserve right to purchase the pr< perty back for sale price if structures are not
built within one year (Krutzig Itas ageed to 24 montlts _ tltis varies from
Ilrescribed termsl
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lie bas met or exceeded eacb of the conditions prescri cd by tbe City (See attacbed documents), and
has provided a signed agreement that may be executed by the Council.
The Council is requested to give consideration to the at ached offer by Mr. Krutzig.
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City Council - November 22, 2004
.
ALTERNATIVE ACTIONS:
I. Motion to sell the 2.7 Acre Parcel OWOe by the City, referred to as Outlot C, Jcfferson Commons
to Mr. Micbael Krutzig according to the enos of thc Purchase Agreement presented hy Mr.
Krutzig, subject to review ofthe Purchase Agreement by the City Attorney.
2. Motion to sell the 2.7 Acre Parcel owned by the City, re!crred to as Outlot C, Jefferson Commons
to Mr. Michael Krutzig (according term' to he further determined hy the City Council), subjec'
to agreement by Mr. Krutzig and subject 0 review of the Purchase Agreement by the City
Attorney.
3. Motion to table this item (for reasons to e determined hy the City Council)
4. Motion to not sell the subject parcel at thi time.
RECOMMENDA TION:
Based on Mr. Krutzig meeting and exceeding all c ndi'ions prescribed by the City other than building
date. Based on the Purchase Agreement presented nd recent local development successes of Mr. Krutzig,
the City Administrator recommends that the Counc'! move Alternative #1 above.
A TT ACHMENTS:
1. Preliminary Site Plans for Mr. Mike Krutzig (Concept AI)
2. Preliminary Site Plans for Mr. Mike Krutzig (Concept A2)
3. Purchase Agreement including Vacant Land ddendum (Dated November 17,2004)
4. Addendum to Purchase Agreement (Dated N vember 17,2004)
5. E~mail message from Cory Kingbay withdra ing offer.
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ADDENDUM TO ])DR ASE AGREEMENT
1. Mike Krutzig agrees to purchase for $ 9.00 p r square foot 2.7 acres of Highway 25
:rontage parcel in Jefferson Commons.
2. Square footage of proposed building includin square footage retail/office or restaurant
space.
Concept A1- 23,906 g.s.f., Cm cept A2- 23,581 g.s.f.
3. If excess parking is required fro the commute parking lot, Mike Krutzig will pay an /Vt./c It/I!: I t.:'y
additional $ :laec. de p,p,. S ~.......(l d ef tc; v."'...."J <-
4. Mike Krutzig agrees to be responsible for dec rative street lighting to be installed at
$ 28.50 per front foot to install public sidewalk along Deegan A venue and Mike Krutzig will
be subject to an additional $ .05/sq.ft. ifrestauran use is proposed on the site.
5. Request up to, (but not to exceed 180 days), fi r governmental and financing approvals,
(closing date will not to exceed 180 days.)
6. It is my understanding that assessments other tan those above have been paid by the city.
Purchases contingent upon financing approval.
7. Mike Krutzig acknowledges that the city rese es the right to approve architectural design.
8. Mike Krutzig agrees that the city has the right 0 purchase the property back for sale price
if structures are not built within 6i"te'j"ear: .14 "" G S
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Revised letter of intent
Fred Patch
.
From:
Sent:
To:
Cc:
Cory Kingbay [Cory.Kingbay@wealthspringmortga
Thursday, November 18, 2004 11:49 AM
Rick Wolfsteller
Fred Patch
Subject: Jefferson Commons Property
Rick & Fred,
e.com]
Page 1 of 1
I decided to pass on the Jefferson Commons property. I guess here where some mixed emotions about my Father. I
don't know what he said or did, but I am not my Father and ca not take accountability on his actions. This was going to
run all through myself and felt after what happen, it was going to be a tough deal with two interested parties involved.
Even though the site is a great location, I feel it is my best inte est to take our Tenants to anther property. I hope there
is no hard feelings between us. Please call if you have any que tions or if any of those sites free up (Outot A).
Sincerely,
Cory Kingbay
612-978-1724
.
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11/18/2004
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Council Agenda - 11/22/04
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A. BACKGROUND INFORMATION:
City Council is asked to review the latest infor "tion on the project with the incoming Mayor
and Council and consider reaffirming directiOl to the City Engineer to continue with
engineering work supporting preparation of e gineering data necessary to keep the project on
schedule. Council is also asked to consider di ecting the City Engineer to prepare a formal
feasibility study for the purpose of compliane with the Chapter 429 improvement process.
At the previous meeting regarding the RyanlI terchange project the City Council authorized
preparati on of plans and specifications for de e10pment of the interchange by unan imous vote
contingent on Ryan Companies and Sbawn einand agreeing to pay an amount to be levied as
an assessment against their properties. Subs quent to this action, Ryan Companies and Shawn
Weinand have agreed in writing to pay a po ion ofthe overall project as contemplated,
however it is not possible for Ryan Compani s to provide a waiver of a hearing on the
assessment because the end users (Target, H me Depot, possible Kohls) can not commit to
Ryan that they will purchase property until t e City commits to completing the project at a
certai n date. In summary, as requested by th ' previous action Ryan Companies and Weinand
arc in agreement with the funding program, owever a waiver on the assessment guaranteeing
payment can not bc provided until the City rders the project. Also tbe terms of payment ofthe
assessment for the Weinand portion inel ude deferral of payment until development occurs. In
addition to the $2,800,000 levied as a defer. cd assessment, W ei nand will dedicate at no cost
land for storm sewer, loops and ramps etc ith a value estimated at $1,500,000.
Council is also asked to make a formal rcq cst to complete a feasibility study on the project
whicb is a housekeeping matter relating to he Chapter 429 process. Council has already
anthorized the engineering stndies necessa y to develop a feasibility study, but the formal
request has not been made. This action is ecessary for assessing the project or issuing bonds
for the project.
Following is a summary and associated ex ihits describing the project much of which is
familiar to current members of the City C unci\. It is provided to allow both the old and new
Council to be on the same page in termS n . understanding the project This information will be
useful to the Mayor and Council as the ne Council takes over in January.
.
Project Develooment History
The City's transportation plan has long c ntemplated improvements to freeway access at CSAll
18 and extension 0[7'" street. A transpo ation model was established in 1994 that indicated a
need for belter distribution of traffic in t c City via deve! opment of on/off ramps at County I 8
(half diamond) and the extension 0[7'" s reet. Subsequent to the adoption of the transportation
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Council Agcnda - 11/22/04
plan showing the need for the improvements, MnDO'f indicated that development of a full
interchange at this location was desired. Mn 0'1' is supporting a full access interchange with
money by funding the cost to replace the exising access to and from the east. Following state
support came interest by Ryan Companies to upport funding of a portion of the interchange so
that retail development could prosper. The C'ty in turn modified the comprehensive plan to
allow retail development at this location. Fit ally, the County got on board by committing to
pay for the cost associated with CSAH 18 im rovements. In sum, this project wi II enable the
City to achieve important transportation deve! )pment goals and enhance tax base. It will also
result in achievement of state and county tran portation system development objectives.
Please note that Ryan Companies has submitt d a complete application for preliminary plat and
development stage planned unit development or the project. This plan set will be reviewed by
the Planning Commission at its regular meeti g on December 6th. One sheet of plan set has
been provided for your review.
Proiect Elements and Finance Plan
The major elements of the project inelude the allowing (includes ROW):
. CSAH 18 Upgrades $5,247,7 )9
. CSAH 18 Bridge $2,511,0 0
. Ramps/Loops $6,333,9 6
. Chelsea Road $2,832,5 3
. Seventh Street $1,928,4 2
. Highland Way $ 749,755
. South Frontage Road $ 798,9 8
. Ponds $1,545,8 7
. Trunk Sanitary Sewer $3,000,0 0
Total $ 24,984,3 4
.
The portion of the cost estimate for acquisition of the A VR site is in the the budget at 40% over
appraised value.
Funding Sources are as follows:
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Development Fees (Trunk)
Developer Contributions
Assessments
Mn/Dot
County
City
$4,977,4 9 (20%)
$8,717445 (36%)
$ 991,7 0 (4%)
$3,806,9 6 (15%)
$1,857,4 7 (7%)
$4,597,227 (18%)
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Developer Commitment
Attached you will find a Ictter from Ryan Com any and a letter from Shawn Weinand outlining
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Council Agenda - 11/22/04
developer commitment to the project. Please review these letters for details. It should be noted
that
the Weinand contribution is proposed to be d ferred because a project is not currently proposed
on the Weinand parcel.
Following is a list of benefits of constructing he interchange.
1. The potential for generating assessment reve ue for funding major portion of the project is at its
peak and will go down over time. Currently t ere is a sizable area of undeveloped land that can
be assessed if the project is done today. 1fth project is done at some point in the future, the
amount of land available at that time to asses. will be less due to ongoing development.
2. State of Minnesota's share of funding is relati ely large for this type of project. It includes
funding for plan development, land acquisitio and ramp/loop construction. There is no
assurance that state funding will be available 'n the future.
3.
Wright County will benefIt from the increase n taxes and the contribution of$I,857,000 is a
significant portion of the project. The improv mcnt is also consistent with the County plan to
accept Fenning Avenue as a county road in th future. The County will also likely contribute
to the Highland Way signal and will provide a contribution for the turnback of CSAH 75 east of
Fenning when it becomes a local road.
4. The portion proposed for assessment against t e Ryan and Weinand parcels represents a
sizable share of the funding program as comp red to similar projects in other cities. More
information on this point to be provided at the meeting on Monday.
5. Reduction of congestion at TH 25 by the addit on of a westbound on and off ramp at CSAHI8.
It is anticipated that with no transportation im rovements, the capacity ofTH25 would be
exceeded by as much as 56% in 2025.
6. Traffic volumes on CSAII 18 are projected to ncrease signifIcantly. Reconstruction of CSAH
18 as well as building an interchange accomm dates the projected traffic demand on CSAII 18.
7. Collector roads such as JI" street, Chelsea Roa and School Boulevard will provide adequate
connection/linkage between the State Highway 25 Commercial area and the Interchange Area.
8. A conservative projected tax revenue from the Ryan cite is estimated at $400,000/year,
Weinand site along freeway $300,OOO/year. T e 30 acre site south of Chelsea currently zoned
IlA is a good candidate for rezoning and willi kely develop soon for commercial use thus
providing additional tax base.
9.
The interchange design selected results from a alysis of various options and is the only design
supported by State and Federal. No other option was acceptable to these agencies.
10. The folded diamond layout makes the most effi ient use of available space thus yielding
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optimum development potential for the land.
II.
Council Agenda - 11/22/04
The project includes provision of sanitary se er easements at no cost from the Bondhus
property to Chelsea Road. It also ineludes in tallation of a deep trunk sanitary sewer necessary
to support existing and future development s ch as the Heritage Project. Easements and
associated construction could be diflicult to 0 tain and more expensive if not completed in
conjunction with this project.
12.
Connecting 7th street will reduce traffic on Br adway and allow Broadway to function at an
acceptable level for years to come.
The mix of funding is the result of negotiatio s that have take place over a period of months. If
Council is not satisfied with the funding prog am as designed then staff should be directed
accordingly.
B. ALTERNATIVE ACTIONS:
1.
Motion directing City Engineer to continue w'th engineering work supporting preparation
engineering data necessary to keep project on chedule. Council is also asked to consider
directing the City Engineer to prepared a form I feasibility study for the purpose of compliance
with the chapter 429 improvement process.
Under this alternative, the City Engineer will ontinue to proceed with the work necessary to
support development of plans and specificatio s thus allowing the project to stay on schedule.
A waiver of public hearing on assessments not required prior to initiation of engineering study,
At the meeting in December, Council will be , sked to formally accept the feasibility study and
provide formal authorization of plans for the p rpose of satisfying the Chapter 429 process.
Under this alternative, the short term responsi ility for funding the cost of preparation of plans
and specifications ($] ,000,000,000) and the la d acquisition costs to be funded initially by the
city and then folded into the project cost once he project is ordered. A development agreement
with Ryan Companies and Shawn Weinand wi I be prepared and executed prior to awarding the
project.
2. Motion to request that City staff reneg tiate financial an'angements supporting funding
of the project and authorize payment 0 engineering expenses to date.
If Council is not comfortable with the finance Ian staff could be directed to ask for additional
financial assistance from developers. Here are some areas that could be explored.
· Request developer pay a pro-rata share fplan development cost prior to ordering of the
project.
.
Attempt to renegotiate the share paid b the developers or renegotiation terms.
· Request developers to pay a percent of rojeet costs instead of a fixed amount. Thus if
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Council Agenda - 11/22/04
project costs exceed the budget, all p rties share in the over-run.
This option also recognizes that the City En rineer has continued work on this project in order
to keep time lines requested by Ryan Comp nies and would enable payment accordingly
3. Motion to put the project design acti ity on hold and authorize payment of engineering
expenses to date.
If Council is not convinced that the positive aspects of the project above are oft"'set by cost. Or
if Counci I believes that a larger share could be acquired from developers if the project is done
in the future, then Council could stop the p oject now before additional costs are incurred. This
option also recognizes that the City Engine r has continued work on this project in order to
keep time lines requested by Ryan Compan es and would enable payment accordingly
c.
STAFF RECOMMENDATION:
It is recommended that the "Current and pr spective" Council jointly review the project and
provide further direction with with prospec ive council member thoughts in mind. Speaking for
Rick, I think he supports the project becau e the funding program represents "a bird in the
hand". It involves a partnership (Fed, Sate, County, City and Private) with each member
paying a share and obtaining a benefit. 1'h funding formula appears reasonable when
compared to interchange funding in other ities. The net cost or city share of the total is likely
to increase in the future. Although there s some risk to the City for moving ahead on project
design and land acquisition without absolu e funding guarantees, it is a calculated risk worth
taking given the benefit to the city resultin r from this collaborative effort. Council is free to
direct staff to extend negotiations in an en rt to obtain a greater share from developers or
improve terms.
D.
SUPPORTING DATA:
Graphs/charts identifying funding
Funding source and use statement to be pr vided at meeting
Tax impact information on debt to be pro ided at meeting
Supporting data from traffic engineer
Update on land aquisition status
Letter from Ryan Companies
Letter frm Shawn Weinand
Ryan Companies Development Stage Ap lication (Target, Home Depot, Other)
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SUPPLEMENT INFORMATION ELATING TO INTERCHANGE
PROJECT DESIGN AND UNDING PROGRAM
PREPARED BY WS & ASSOCIATES
What's included in the I-94/CSAH 18 Interchange and Other Projects?
1. Upgrade CSAH 18 to 4-Lane Divided Roa way from School Boulevard to Hart
Boulevard.
2. Build a new 4-lane bridge over 1-94 at CS II 18.
3. Add Ramps and Loops to CSAH 18 to cre tc a full movement interchange
4. Rcconstruct Chelsea Road from Fallon Av nue to CSAH 18 (2006 or 2007)
5. Extend ih Street to CSAH 18.
6. Build a new N/S Road (Highland Way) fr m 7th Street to CSAH 75.
7. Build a new E/W road from CSAH 18 to eadow Oak Avenuc.
8. Construct 4 new regional/local storm wat r ponds.
9. Construct new Trunk Sanitary Sewer to s rve the south side of Monticello.
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Why upgrade CSAH 18 to a four Ian divided roadway?
1. Evcn without a new interchange, new dev lopment in the City will generate trips on
CSAH 18 that will increase the traffic vol mes on CSAH 18 to 20,100 vehicles per
day by 2025. This is an increase ofalmo"t 400% from 2002 traffic volume of5,100
vehicles per day. This is mostly generate hy developments within the City of
Monticcllo. These include:
. 4970 trips or 33% of new trips or 250 of overall trips are from proposcd
development along ih Street.
. 6160 trips or 41 % of ncw trips or 310 of overall trips are from Weinand
propcrties along Chelsea Road and pr posed South Frontage Road.
. 1570 trips or 10% of trips are from e isting and proposed developments along
Fenning Avenue south ofCSAH 18.
2. The 1996 Wright County transportation Ian identifies CSAH 18 as a minor collector
on the regional system and recommende that CSAH 18 be upgraded to a 4-lane
divided highway.
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Why upgrade CSAH 18 and build t e interchange now?
1. Agencies and private developers have co e together to agrce on an intcrchange
configuration and a financial plan to deli er an interchange. These agencies include
. Federal Hi hwa Administration FI W A: This agency has jurisdiction over the
interstate and its access points. CUff ntly, this agency has as many as 9 rcquests
F:I^ngclaSIPlanning FibI200411I1tcrchang~I041116intnccd.doc
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for additional access on the interstate fr m the Twin Cities to 8t. Cloud. They
have made it clear that in order to protect the integrity of the interstate they would
not grant all of these requests. However they are currently on board to authorize
a new interchange at CSAH 18 in Monti 'ello.
Minnesota De artment of Trans ortatio : Mn/DOT, in agreement with the
FIIW A, provides the oversight and mai tenance of the interstate system. Without
thei r cooperation a new interchange req est has little chance for approvals with
FHW A. Not only is Mn/DOT on board 'or this interchange, they are committed
to contributing to the cost of the new int rchange.
Wright County: Wright County has ide titled in their transportation plan the
upgrade of CSAH 18 to a 4-lanc divided roadway as well as an interchange at
CSAH 18. The county has many projec s that are more costly and have greater
regional need than CSAH 18, yet they feci the project is important and have
committed funds tar contributing to upg ading CSAH 18.
. Private Developers: In addition to Mn/ OT and Wright County, private
developers are contributing almost 33% 0 overall project costs.
2. The 1996 Monticello Transportation Plan a d the 1996 Wright County Transportation
Plan indicate that the new interchange shoul be constructed at this location in the
next 10-15 years (2006-2011).
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3. All partics havc agreed to contribute flnanci lly to the construction of the interchange
at this time. The transportation funds for all agencies arc being restricted. If the
project does not move forward at this time t ere is not guarantee on future approvals
or cost participation.
Why does Mn/DOT want this intercha ge?
1. One FHW A position on interstate access is tlat an interchange must provide all
movements. The existing interchange at CS H 75 does not. Mn/DOT would like to
see a full access to the interstate at this locat on. Ilowever, due to budget constraints
and other greater regional needs in the distri t they don't have the resources to pay for
a new interchange now.
2. The existing ramps from CSAH 75 are disco mected and arc difficult to see from the
interstate. Mn/DOT realizes the need to relocate these ramps t<.H safety purposes.
This is why they have committed funds for r locating these ramps to CSAH 18.
Why doesn't Mn/DOT pay for the inte change?
1. As mentioned previously budget constraints equire that Mn/DOT prioritize their
project delivery based on need. Other proje ts in the district have other safety and
operational problems that place them higher n Mn/DOT priority list than completing
the partial access to 1-94 at CSAH 75. Mn/ 0'1' District 3 has over $1 billion in
project needs over the next 20 years with current funding that is not sufficient.
2. There are as many as 9 interchanges sought fter on 1-94 ffom local governments in
this area. While some of these wi II not be a thorized by FHW A, the others wi II
request Mn/DOT contribute to the costs for t e interchange. If the need for access
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F:\AngclaS\Planning Filcs\2004\lntcrchangc\04111 oimnccd.doc
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has little overall regional contribution, M IDOT cannot contribute to the local agency
requests or they would set precedence fi)[ very project.
Why not revert to previous geometr and not impact the concrete
plant'?
1. An old concept was to add a ramp to t e northwest quadrant of CSAH 18 and 1-94
and add a loop to the in the southeast uadrant of CSAH 18 and 1-94 and connect
into Chelsea Road. The ramps at CS H 75 would remain in place. Then, when
Mn/DOT came through to the interstat they would replace the CSAH 75 ramps
with new ramps at CSAH 18. The firs part of this solution was considered a
good interim solution because it was u clear weather Mn/DOT would depress 1-
94 under the railroad. This solution is no longer the best solution because:
· fHW A and Mn/DOT required that an operational analysis detail various
interchange configurations to provide direction as to which interchange
configuration to carry forward to t e Interstate Access Request and
Environmental Assessment. A rep rt was completed and approved in April
2004 which detailed various options. The report included an interchange
configuration that had a standard diamond for the westbound ramps and a
folded diamond lor the eastbound r mps. This configuration proved to
perform the worst operationally of II the configurations considered.
However, the current configurati n that has been carried forward thus
far performed the best. Mn/DO and FHW A will have little confidence
in approving a configuration oth r than the one that is currently being
studied.
· Mn/DOT's previous preliminary w rk had indicated that the benefit of
depressing the highway under the NSF railroad did not outweigh its cost.
One of the main benefits would be 'or noise reduction, however their study
indicated that depressing the interst te would not reduce the noise
significantly from interstates curre configuration. MoIDOT also concluded
that the costs of maintaining traHic uring construction of depressing the
highway were too expensive for the perceived benefit. Instead Mn/DOT
indicated that flattening the existin horizontal curves on 1-94 would be a
more feasible solution.
· Since Mn/DOT does not believe t ey will be depressing 1-94 in the future
and the City proposes to add the issing access movements at CSAH 18,
Mn/DOT would likely require mo iog the CSAH 75 ramps too. Mn/DOT
and fHW A policy is that design on he interstate should meet driver
expectations. If the interchange is iseonnected; it creates driver confusion
and results in operational and safety problems. Mn/DOT strongly opposes
exit loops due to their past historic rash rates. The only reason one has been
approved for the current proposed i terchange is because an existing street,
Chelsea Road, would prevent a trad tional exit for eastbound traffic. Mn/DOT
understands that relocating Chelsea oad through school property is not
feasible for the City. However, it is unlikely that Mn/DOT would approve an
exit loop for westbound traffic sinc moving the existing concrete plant has
F:IAngclaSIPlanning Fiksl2004lIntcrchangcl041116inlneed.doc
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always been in the plan and was; ever considered a significant social and
economic impact.
2. The Staif Approved Layout, Environ nental Assessment, and CORSIM Traffic
Modeling (major component of Inter tate Access Request) is currently being
reviewed or has been approved by F W A and Mn/DOT. These important
documents detail the purpose, need, esign, and environmental consequences for
the current interchange configuration Changing the interchange contiguration
now would require a complete overly ul on the work that has been accomplished
thus tar. It would also require a new tart on building concensus by the various
agencies for this important project.
3. The folded diamond configuration all ws fix largest developable parcel west of
CSAH 18.
4. FHW A prefers interchanges to access the interstate at one location.
F:IAngdaSll'lanning Filcsl20041/nterchangel041 I 16illlllccd,doc
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To:
From:
Re:
Date:
Mayor and City Council
Jeff O'Neill, Deputy Administrator Community Development Director
Update: Status of Land Acquisitio Relating to Interchange Development
11/18/04
Following is a summary of information provided t me by City Attorney Tom Scott regarding the
acquisition of the A VR propcrty. This informatio should be kept in mind as you considcr further
action on the the project.
The appraisal on the property will be completed s on. City staff have been informed on a preliminary
basis that the appraised value will be very close to the value on which the interchange budget was
based. Dan Wilson is also working to obtain the ecessary appraisals on the handful of small strip
easements needed for the project.
Council should be aware that in order to meet the 'unent August 2006 deadline for completion of the
interchange project, the City needs to have title to the A VR site (and other properties) by April 15t\
. 2005, based on Mn/DOT's requirements. Please ote that Shawn Weinand has agreed to give the City
land as a credit against improvement expenses. However, the Weinand parcel needs to bc included in
the process to ensure the City that the land is avai able when needed. This requires that the City make
its ofTer in December. In turn, the City must initi te a condemnation action and 90-day quick-take
notice by January 15th, 2005 in order to have title nd possession by April 15th. On April 15th, the
City would need to deposit with the court the app aisal amount for A VR and the other parcels. It is
important that development agreements be in place at that time because at that point the City owns the
property and cannot unduc the process. Our liability for relocation is also fixed at that time, if not
sooner.
Council should note that the acquisition process ccds to go on concurrently with the preparation of
plans and spccifications for the project. A VR wi 1 not need to move or shut down by April 15th; the
City simply needs to own the property by that dat . The Council must be ready to initiate
condemnation at its first meeting in January if it i going to proceed under the current project schedule.
The Council needs to know this now when makin a decision regarding the timing of preparation of
plans and specs.
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WWW.RYANCOMPANIES.COM
November 16,2004
Mr. Rick Wolfsteller, City Administrator
aTY OF MONTICELLO
505 Walnut Street, Suite 1
Monticello, MN 55362
RE: ParENTlAL RYAN COMPANIES CONTRIBUfIO
7TH STREET, HIGHLAND WAY, AND CSAH 18 I
Dear Mr. Wolfsteller:
RYAN COMPANIES US,INC
50 South Tenth Street, Suite 300
Minneapolis, MN 55403.2012
...
IYAII.
612.492.4000 tIi!.
612-492.3000 fax
IUILDO..... L..sTlNe ....,'nOMS","
Ryan Companies US, Inc. ("Ryan") has entered into hase Agreements to pw-chase approximately 47.7
acres located in the northwest quadrant of CSAH 18 and -94 with the intent of constructing a retail ceoter.
At this time, the retail center is intended to include T et and Home Depot which are both currently
expressing strong interest. There are several other small 0 ots that would be developed into other uses such
as fast food and sit down restaurants in addition to other s retail. It is our understanding that the Gty of
Monticello ("Gty") has a schedule to complete the prapo ed CSAH 18 interchange, including the ramps to
and from Interstate Highway 94, by August 31, 2006. If . date is achievable, Ryan will proceed with its
schedule to move forward with the closing of the subject roperty along with securing agreements with the
various retailers. The agreements with the retailers and the construction of their facilities would coincide with
the Otis August 31, 2006 schedule and Ryan would look f ran Cktober 2006 store opening for one or both
of its big box users.
It should be understood that Ryan cannot conunit to cos s for the interchange until certain activities have
occurred by the Gty. In particular, we must know with enainty what date the interchange improvements
will be completed. It is our understanding that it will be . ficult to confirm that date until the project is bid
sometime in July 2005. '
It is our further understanding that the Monticello Gty Co cil has requested Waiver Agreements from Ryan
with regard to their share of the proposed improvements. e Waiver Agreement would provide for Ryan's
waiving of its rights to contest special assessments levied ainst the Property for the improvements based
upon an agreed cost for all the improvements to be d fined in a Development Agreement. We have
negotiated hard with Gty staff to amve at an acceptable fi that our retailers and Ryan can absorb for this
project and have informally agreed to those lwnp sum co ts of $4,861,464. This amount includes the full
project cost of 7m Street and Highland Way, a contributio of over $2,000,000 towards the interchange, and
all trunk fees associated with the proposed development. I addition, Ryan would donate: (~ all of the right-
of-way necessary within the plat for public' streets; (ii) righ -of-way needed for the pathway along CSAH 18;
and (iii) a small plot of land in the southeast quadrant f its property that can be used by the Gty for
landscaping or Gty beautification. Of course, all of the ab ve-referenced provisions and obligations of both
the Gty -and Ryan would need to be included in the Dev lopment Agreement which needs to be finalized
prior to Ryan's closing on the Property. Ryan would als commit to completing the grading of the street
.
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-\drni nl :-,tralor
s\slems witllin pLll, ;IS wdJ ,'s n.-gnding the ponding :1re. on the ,'hurch propenytn Icw rc"ligrullul1
~U'Ccl. Iu ,1\I,lil1r'n, tile Cily has jodie.Hedit is iu nTd ",miurv sewcr Ch\'Il!Cnts h )lh in'lll/vIr.
Bc'ndhus {Ill dl" cl()nli "idc' cd l he ;',lilro;jd lL1Cks and Jrorn Ill' lkvcklpnK';n e)Jl the S()UI h side oJ lll:' Luln ),\d
ll-.I,l;:s \el ,lcceHllllH ,(Llle .1 deep Irullk s,miLllY s,-:wcr, Rpnclnd, it is cm!' llnder"l.ll1\lingI\lr. BCilldhlh, ll.ivC
<lgn'c'd tCl prolvide t hc,sc C.he'lllC!llS .\1 UO cOSl to the e:ity to L ci1ir.l!C tILl! constructiOll,
If tile (:ilY <l~;rces t () comll!ete rIle intclTIl.lllge prujed ()n or l cfcII\' Augus t J 1, 20e6, I\}:Hl \\'iJ] (jiligcl1tly \\'1 Jrk
tl. )\\arc! ("Hcring iU10 ;j IJcvelnper's ;\greclllcllt \vhich wtll dct'irw bOlhRyan ,wd the C:ity's \,I>ligati( >llS ill
,'CHinen ion widl the project .md IJlclllde J.n .1g,rccnlC'lll/ \l,P"iv'J' of its sh;m' of costs ff)!' ,tit thc illl!)l'()VCI\lCIJh
idcmiJi"d abuve.
.
\,\'e lUlpc tlul this lell"r eM) sern,' as .111 evide'llce R):Ul'S onHllitmellt te> thh prOJCU, \,\'e lLl\'< expCll,lcd
signlJie,IJll ,luILl!\ IowaI'd, I pLmnilJg process, h,lVC paid fo' Jnd inItialcd thcEA \Xi for lhe ~ite ,llld I lJut
w'e ,11'(' lll.lkill~ a strullg c(,mll1itrnent to thl' Chr, \X'l' hUDC]Llt this S,ltisfics \our C(>1IUTIh ,Hill ill,!i,-,l1,'s \I)
tile (:it; ( lJ1H;I'il tiLl! IZ:\',lll 1S lll.lking .1 vcry st nlllg c(Jnunitn,'nt to the' C.:;t}' IC; unden,du' .llle! C()lllpk:1C ,ill
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Monticello Industrial Park, Inc.
November 18, 2004
40 5 Chelsea Road West 763-271-8600
Mo ticello, MN 55362
Mr. Rick Wolfsteller, City Administrator
City of Monticello
505 Walnut Street, Suite 1
Monticello, MN 55362
RE: Monticello Industrial Park, Inc.
All-Inclusive Agreement with the City of Monticello, Minnesota
For Proposed Improvements Known As:
-C.S.A.H. 18/1-94 Interchange and Relate Improvements
-C.S.A.H. 18
-South Frontage Road
-Chelsea Road
Dear Mr. Wolfsteller:
This letter is in regard to the proposed cost sharing agre ment between the City of Monticello (City) and
Monticello Industrial Park, Inc. (Park) with regard to the a ove-referenced projects. Our property is located
on the north and south sides of Chelsea Road, south of I 94 and also on the east side of C.S.A.H. 18, north
. of the Resurrection Lutheran Church and south of 1-94. ur property is impacted by the development of the
Interchange, the south frontage road, the storm water po ding and the reconstruction of Chelsea Road, as
well as the additional other proposed system-wide impro ements pending in the southwest quadrant of the
interchange area.
As we have indicated in our discussions to date, we prop se to enter into an all-inclusive agreement with
the City that includes all the improvements required to complete the projects referred to above. The all-
inclusive agreement will apply to those properties owned by Park as of this date.
The terms of the proposed Agreement will be as follows:
.
. Park will accept assessments in the amount of $ .8 million that will be deferred for up to 10 years,
with no interest, beginning January 1, 2005. Tho e remaining assessments, at the end of the 10
year period, that have not been levied, will contin e to be deferred and will accumulate simple
interest at the rate of the bond for up to an additi nal 10 years. Park will spread the assessment
cost and the relative load to their property based n proposed future use and the estimated
sequence of absorption. As properties are sold f r development, the appropriate assessments will
be levied against each property for payment for a period of no less than 10 years, with the right of
penalty-free pre-payment.
. In the event that any of Park's property fronting 0 the south right-of-way of Chelsea Road would be
re-zoned for retail use rather than its current zoni g designation of 1-1 A, at the time of development
Park agrees that an additional assessment of $0. 0 per square foot may be levied by for City subject
improvements.
. Park will dedicate the required right~of-way from i s property for the interchange (loops and ramps),
C.S.A.H 18, storm water ponding, south frontage road (that share of the ROW on Park property as
long as the Church dedicates their design share) Chelsea Road and pathway - approximately 18
acres - at no cost to the City. In addition, Park ill provide the permanent easement for a trunk
sanitary sewer line in a mutually acceptable loca ion on the property at no cost to the City.
1
.
.
· The temporary storm water pond located on th north side of Chelsea Road will be relocated to the
City drainage easements located west of this si e. The City will release the easement for the
temporary storm water pond.
· The storm water ponding credits for what is kno n as the "School Pond" will be released by Park,
and we will waive the requirement that the School District complete the grading of the School Pond
to the agreed-upon capacity.
· Park, in what is known as the RPUD area, will d the grading in accordance with a mutually-
acceptable plan necessary to construct the stor water ponds designated for that area, and the
right-of-way for the south frontage road at no co t to City. City will vacate the existing street and
utility easement at no cost to Park, and relocate the water main to the south frontage road right-of-
way. That City, as the LGU, will designate that t e wetland, that will become part of the storm water
ponding area, be a deminimus exception for the RPUD area based on development plans for the
property.
· City agrees to re-zone to 8-4 Park's property lac ted between Chelsea Road and 1-94 as well as the
property between the south frontage road and 1- 4 (excluding the storm water ponding area). The
southeast corner of the RPUD area, that is, the rea between the south frontage road and the east
and south property line, will be re-zoned to multi- amily.
· City will cooperate with Park on the design issue of Chelsea Road and the south frontage road to
assure Park that service stubs and curb cuts are as needed and located properly to accommodate
future development. City agrees that the final de ign of the proposed improvements to Chelsea
Road and the south frontage road, as well as the related improvements to these projects, will be
provided to Park no later than 30 days prior to th proposed bid date for review by Park.
· Any decorative street lighting requested by Park or installation as a part of the Chelsea Road and
south frontage road projects will be done as an a ditional assessable cost to Park.
· None of Park's property will be assessed for the roposed future improvements to Fallon Avenue or
the Fallon Avenue overpass.
· The C.S.A.H. 18/1-94 interchange project by City ill begin with the start of the 2005 construction
season.
· The south frontage road improvements and storm water pond construction will begin with the start of
the 2005 construction season. Park will do the gr ding; City will do the balance of the
improvements.
· The Chelsea Road reconstruction and related improvements by City will begin with the start of the
2006 construction season.
We believe that this all-inclusive agreement addresses a d is beneficial to both City and Park. We look
forward to the construction of the proposed improvement and are pleased to participate with our significant
contributions as proposed in the agreement.
Sincerely, --
~/;c<v~ric)~
Shawn P. Weinand
.
cc:
Bret Weiss
Charles C. Pfeffer, Jr.
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Council Agenda - 11/22/04
11.
A. REFERENCE AND BACKGROUND:
City staff and Swan River representatives ha e been meeting recently in an effort to develop a
finance plan that will enable re-use of the Ch reh Building. As you know, some months ago
the project was authorized with the suppositi n that the school would be able to obtain bank
financing to finish the renovation and build el. ssrooms. Under the original plan, the City was
intending to give land and properiy in excha ge for free use of rest rooms and the church
portion of the building on weekends. UnI()ftl nately, it has been more difficult for Swan River
to obtain bank financing than originally antici ated and therefore the original concept does not
appear possible. Even though the finance pi, n and cash now projections are excellent, banks
arc reluctant to finance the project because th equity (building and land) represents a relatively
small portion of the debt. In order for the pro ect to be financed, an additional level of equity is
required. The proposal calls for providing eq ity through City funding of pre-paid rent in the
net sum of about $350,000.
After reviewing this issue Swan River has pro ided a proposal to the City to review that would
enable the school to get bank financing. See ttached l()r detail.
Staff received the proposal late on Thursday s we are not able to provide a detailed response to
the proposal. Due to the need to keep the proj ct moving, staff accepted the proposal for
Council review on Monday. Here are a few c mments that could be made that the proposal
may have inadvertently left out.
Under Number 1, the City is in second positio 1 so in the event of default, the building would go
to the bank. The deal could be structured so t at in the event of delault the City would have the
option of taking over the loan and thereby reta'n ownership. Similarly, a deed restriction could
be put in place that would not allow the buildi g to be sold to another party without City
approval.
Under Number 2 of the proposal, remaining S nny fresh funds are likely to amount in the
neighborhood of $50,000.
Under number 3, Prepayment of rent in the est mated amount of $350,000 enables the school to
establish a level of equity necessary to obtain ank financing. The $150,000 dilTerence between
the sale price ($200,000) and the prepayment f rent value ($ 350,000) rellects the cost to
install bathrooms that the City would otherwis have to spend in order to make the building
usable. It should be pointed out that the prepa ment concept while in second position involves
some risk. If the project dies and the parcel is 'old to someone else, the City loses the pre-paid
rent. City Attorney Tom Scott will be providi g additional information as to the viability of
this idea from a legal standpoint.
Revenue from City use of the facility would 11 w to the City. The City would have made a pre-
paid rent payment but will be getting back rev nue for use of the building. In addition
.
remember that the school is also making pay' ent on the purchase of the hUilding.
Council Agenda - 11/22/04
Under nUm ber 4, details relating to use of the :omm unity Center and assoc iated revenUe
expectations need to be discussed with the Co lmunity Center Director and the MCC Board. It
appears that there is a great opportunity for the Community Center to supplement income with
Users tram Swan River.
B. ALTERNATIVE ACTIONS~
I. Motion to grant preliminary concept ap roval and authorize stalfto work out details
relating to the proposal. Documentatio relating to the proposal to be placed on a
subsequent Council Agenda as Soon as p ssible.
2. Motion to table preliminary concept ap roval pending additional research by stair
3. Motion to deny this option but direct sta fto continue to work with Swan River on
alternati ves.
c. STAFF RECOMMENDATION:
If Council would like to see the bUilding re-used a hoped then alternative I should he selected.
D. fiUPPORTING DA T A:
Swan River Proposal
Swan River School Graphic
VA
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lb)Ollfessori <<harfer $cheel
November J 8. 2004
Jeff O'Neill
Deputy City Administrator
City of Monticello
505 Walnut Street, Suite J
Monticello Minnesota 55362
Re. Swan River Montessori Charter School
Dear Mr. O'Neill,
.
This letter is to summarize our proposal to t e City regarding use of the Church
building ("little White Church") donated b Sunny Fresh Foods, which is now
located on the City lot adjacent to the Comm nity Center.
J} Sale of the site to our building co pany for $200,000 (or the actual,?
appraisal price, but no more than $200 OOO) by (::ontract For De~ payable
on a 20-year amortization schedule with a 6% interest rate payable
monthly which are amounts we hav determined to be affordable. The
contract-for-deed would be subordinat to a bank first mortgage lien.
We believe that, with the City approval of t e points below, we will be able to
complete renovation of the Church (for Ci and School use) and finance the
construction of about J 0,000 sq.ft.
We respectfully request that the City Council pprove the following points:
2} City funding of renovations by use of the remaining Sunny Fresh funds
which we estimate to be about $ J 00, 00. Any further renovations to be
overseen by a contractor hired by the S hool.
3} City pre-payment of rent or usage fe s to the Building Company in an
amount of $400,000 less the remaining Sunny Fresh funds.
7ctt~o( 4J"\oI/J
F I~('S\... ~l\. ~ ~~ PI- ~ J rv.,,..Jw~ F '" (L c ~ v.1-c. L.
00 I.~ablll1ll ~. Ol&;on
Phonll 763.878.0163
9767 TJlZtna TJvlZnulZ N
fax 763.878.2063
Monticllllo Minnll~ota 55362
email grlZif~wald@m$n.com
[I
.
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4} lease/use agreement of space to be etermined in the Community Center
for the School's physical education nd related programs. We believe the
rent and membership fees for our st dents will be about $50,000 for nine
months for Year 1 (based on the cu rent per child membership cost and
other usage fees). These payments ill increase as the school population
grows.
Once approved by the City Council, we ill begin immediately to work on
documents with the Bank and City. Our g aI, of course, is to start foundation
work yet this year. Our contractor estimates hat the latest this could be would be
December 1.
Thank you for your consideration.
Sincerely,
1oV-~ '1 7~
Isabelle S. Olson, J.D.
Swan River Montessori Charter School
Board Chair
cc. John Cairns, Esq.
Tom Scott, Esq.
C/o Il>eb!Zlk ~. Oll>on
Phon!Z 763.878.0163
9767 1ktne Tlv!Znu!Z N
fex 763.878.2063
Montic!Zllo Minn!Zl>ote 55362
emeil gr!Zifl>weld@ml>n.com
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City Council Agenda - 11-22-04
. 12.
A. Reference and BackQround.
Land Use.
The applicant is seeking concept stage PUD pproval of a 1 O-unit townhouse project on
property in the original plat area along 4th Str et and Palm Street. The project straddles the
unbuilt Palm Street. A part of the project relie on the vacation of the Palm Street right-of-
way. To accommodate the project, a rezonin from PZM to R-2 would ensure that only
residential uses are located in the units. At this time, only the concept PUD is before the
Council. The rezoning would be formally con idered with the Development Stage PUD
application.
The Planning Commission considered this ite in October. Their recommendation was to
require an extensive and attractive landscapi g plan, and revised the building designs to a
more traditional two-story design, rather than the split-entry design shown on the concept
drawings. Public Works staff has also noted hat the final design will need to ensure access
to the utility installations in the rear of the pro ect along the railroad. It is not clear from the
concept plans where the buildings sit with re ard to existing utility lines along the rear
property line.
.
At ten units, the gross density of the project i approximately six units per acre. The
neighborhood includes commercial and high r density residential property to the east, and
predominantly single family uses to the west
It should be noted that the City will require c mpensation for the vacation of the Palm Street
right-of-way, consistent with the standard po icy for such vacations in the original plat.
Site Plan Layout
The site plan provides for a single private dr veway that splits the property, providing access
to three unit clusters on the east and west, nd a terminal four unit cluster at the south end
of the parcel. The plan reflects a number of the recommendations provided by planning
staff to the applicant's sketch plan, which in luded several additional units.
Building setbacks would be at least thirty fe t (or more) from the street and thirty feet to the
rear of each unit. The southern building c1u ter provides side setbacks of 10 feet to
adjoining property, and a thirty foot setback to the rear. Each unit includes a two-car garage
and driveway adequate to accommodate th parking of two additional vehicles, and more
visitor parking is available.
Landscaping/Buffering
.
The concept plan is not specific as to prop sed landscaping. Clusters of vegetation are
shown on the plan, but appear to be primar Iy for illustration purposes. If the project
proceeds to Development Stage PUD, a m re detailed and intensive landscaping plan will
City Council Agenda - 11-22-04
.
be required. Planning staff would suggest tha landscaping is utilized to provide for privacy
and screenin\/. around rear patio and/or deck reas, in addition to creating a positive public
entry along 4\ Street.
Building Design
The plans provide an illustration of the propo ed buildings in the project. Each unit is
approximately 1,000 square feet per floor, wit a split-entry design. While planning staff
believes that the site plan has provided for a and use and layout that is reasonably
compatible with the neighborhood, split-entry housing is inconsistent with the pattern in the
neighborhood. Planning staff would recomm nd full two-story units with more traditional
detailing. Such a change would reflect the d velopment pattern in the area, and help to
ensure that the project meets the intent of th PUD ordinance - a design that includes a
higher level of design and amenities so as to justify the use of PUD flexibility. Without PUD,
the development capacity of this site would e just 6 units and require construction of a full
public street.
B. Alternative Actions.
Decision 1: Concept Stage Planned Unit D velopment for Jen-Tor Construction
.
1. Motion to recommend approval of th 1 O-unit townhouse concept plan, based on a
finding that the land use and site pia appear to meet the intent of the City's PUD
ordinance, with the condition that De elopment Stage PUD plans provide additional
landscaping consistent with the com ents in this report, and with the condition that
the housing style is re-designed to p vide for a more traditional housing style, rather
than the split-entry concept shown in this application. In addition, the applicant
should be required to verify access t utility lines that exist to the south (rear) of the
property.
2. Motion to recommend denial of the oncept stage PUD, based on a finding that the
vacation of the Palm Street right of ay and the proposed land use are not
consistent with the land use goals 0 the City.
Decision 2: Rezoning of the subject prop rty from PZM to R-2
No decision is necessary at this time. This action will be taken concurrent with the
Development Stage PUD application.
C. Staff Recommendation.
.
Staff recommends approval of the Concep Stage PUD, only with the conditions on utility
access, landscaping and building design noted in this report. As discussed, the split-entry
housing style is not consistent with the tra itional housing more common in this area of
Monticello. In addition, the City has been rovided with information from developers that
two-story homes have a higher value than ramblers or split-entry housing. The PUD
ordinance requires a finding that where fl xibility is granted, development design and
amenities must exceed the standard zoni g regulations. In this case, the PUD (and the
vacation) could permit an increase in den ity by about two thirds over a standard
.
.
.
City Council Agenda - 11-22~04
subdivision with public streets. One way or the City to leverage this benefit is in the
building design and site improvements.
D. Supportin~ Data
1. Site Location map
2. Site Plan/Building Plan
. .
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