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HomeMy WebLinkAbout1980-03-11 CC MINt • r w COUNCIL CHAMBER Stillwater, Minnesota March 11, 1980 7:30 P. M. REGULAR MEETING The meeting was called to order by President Junker. The Invocation was given by the City Clerk. Present: Councilwoman Bodlovick, Councilmen H. Peterson, R. Peterson, Posell and Mayor Junker Absent: None Press: Stillwater Evening Gazette - Bob Liberty WAVN - Ms. Vlasvik St. Paul Dispatch - Jim Broede Also Present: Finance Director- Coordinator, Kriesel; City Clerk, Schnell; City Attorney, Magnuson; Superintendent of Public Works, Shelton; Director of Parks & Recreation, Blekum; Consulting Engineer, Elliott; Building Official, Zepper Citzens: Bob Hag•trom, John Larson, Jeff Zoller, Joseph Gotid, Mr. & Mrs King Hall; Mr. & Mrs. Richard Emanuelson, Mary Oswald, Mark Carroll, Ed Cass, Shirley Tibbetts, Jeanne Stenerson, Charles Pozzini, Jerry Mahoney INDIVIDUALS & DELEGATIONS None at this point in the meeting PETITIONS For the enlarging of the Annexation Area - David S. Johnson MR. MAGNUSON advised that the Council take this under advisement until the next regular meeting. On motion of Councilman Powell, seconded by Councilman Roger Peterson, the Council followed the recommendation of the City Attorney and post- poned any decision until the next regular meeting. (all in favor) PUBLIC HEARING -- -This was the day and time for the public hearing on the Penthouse Acres Plat - Leitte. Notice of the hearing was mailed to all property owners involved. MR. MAGNUSON informed the Council that Mr. Leitte and Mr. Mills are out of the country and that the hearing will have to be delayed until the next regular meeting. On motion of Councilman Roger Peterson, seconded by Councilman Powell, the Council agreed to continue the hearing on the Penthouse Acres Plat until the next regular meeting. (all in favor) UNFINISHED BUSINESS None NEW BUSINESS 1. On motion of Councilman Roger Peterson, seconded by Councilwoman Bodlovick, the Council set the date of March 25, 1980 at 7:30 P. M. for the Public Hearing on Case No. 376 for Kinder Care - Special Use Permit for a Day Care Center. (all in favor) 2. On motion of Councilman Roger Peterson, seconded by Councilwoman Bodlovick, the Council set the date of April 15, 1980 at 7:36 P. M. for the Public Hearing on Case No. 378 for Val Finnemann, 715 South Sixth Street for a Special Use Permit for a pole garage. (all in favor) 3. On motion of Councilman Roger Peterson, seconded by Councilwoman Bodlovick, a resolution was introduced "DIRECTING THE PAYMENT OF THE BILLS ". AYES -- Councilwoman Bodlovick, Councilmen Harry Peterson, Roger Peterson, Powell and Mayor Junker NAYS -- None (see resolutions) 63" • • • 4 1 al p • • 64 March 11, 1980 INDIVIDUALS 5 DELEGATIONS ( continued) BOB HAGSTROM, representing Nelson School Partners, appeared before the Council to update them as to where they are in their project and answer any questions that they might have and he read his letter of the Mayor dated March 11, 1980. He was unable to get the letter from the First National Bank since Mr. Heimerman was out of town and he was unable to include same with this letter as stated therein. The First National Bank would be interested in financing qualified people that would be buying into the condominium units - he also has a committment of some needed construction financing to rehabilitate the exterior or in the common space which they would proceed to do if they were to get the building. JOSEPH GOULD appeared before the Council with his proposal with drawings for his condominiums and he has also purchased property for parking which is a duplex across the street and he does have the money to start the project at any time They are proposing 11 condominiums. He did not have enough time to prepare any exterior drawings of the building, but did present the interior layout - he was requesting a chance to bid on this property. There would be no change in the exterior - they will just clean the building, etc. MARY EMANUELSON, 1017 South Second Street, asekd why this was opened up to Mr. Gould when the City has a court case going on here with the other group - the City had 90 day limit on that - they are asking for four and they don't even want four - they are not going to put up with eleven. MR. MAGNUSON stated that Judge's order on the Nelson School Case reminds the City Council that the paramount concern is the preservation of the Nelson School as a historic resource. He was sure that if the City went back to the judge and asked him to clarify the order that he would tell the Council again that the paramount concern - the overall concern is the preservation of this as a historic resource - and just how the City goes about it is entirely within their discretion. The lawsuit was not brought by the Zoller - Hagstrom Group, it was brought by Rivertown Restoration - and they are separate people. It is the Council's discretion to chose between the various alternatives - as long as it is not destroyed, he felt that they had wide latitude to find a good use for it that would fit in with the preservation. MRS. EMANUELSON asked what about the fact that the City opened this up for bids at one time - there was a closing on twat and the City did not open it up for bids again. She did not feel that he should be heard until this case has been resolved. COUNCILMAN POWELL felt that the Council should be willing to make some kind of a statement - the Hagstrom bid was the most acceptable plan the last time around before now and the Council decided at that time that none were acceptable and then the RTR started the suit just to preserve same. He felt that it was fair to allow the Hagstrom group to proceed as soon as they have the letter from the bank that they do have the financing available. They are proposing six now rather than four. He felt that we should offer them the opportunity to get the money or complete it and then it would be in order to take the next in line RICHARD EMANUELSON, 1017 South Second Street, stated that they are now up to six units and possibly eleven with the other proposal and that the people in the neighborhood don't seem to have anything to say about multiple dwellings. There are questions about financing - nobody in the neighborhood wants this type of development being pushed upon them. MAYOR JUNKER asked if the Council is going to do something with the Nelson School or not - he felt that we are no further ahead now than we were a year ago. COUNCILWOMAN BODLOVICK asked Mr. Hagstrom about their original proposal that had four apartments or living areas and light offices and MR. HAGSTROM replied that was correct and they would still be willing to go to that - they would prefer two small apartments to two offices -- -they would be willing to go either way - as far as being ready, they would be ready right now to exercise the purchase agreement and proceed to take the building off the City's hands and move with it - they were before and they had difficulty with financing and the financing picture is difficult - they want to be cautious and they want to know what they are doing and they want to be able to sell units to people that can have a completed plan and know what they are buying - they find it just as difficult from their point of view totalling with something that they do not if they have it or not - trying to sell something that you do not know if you have it or not. MAYOR JUNKER asked if the City deeded the building now and they fixed it up and did not sell the units what would they do and MR. HAGSTROM stated they would keep the building looking nice and plant grass and there would be no cars to be parked - they want to clean up the exterior - make it presentable to the neighbors - turn on some lights and secure it - that would their first priority and along with that would be the program that they have in process to sell the units and if they sell the units they would develop them - they are not just ordinary units - they want them to be designed and to sold to individuals - not all done and just hang up a sign asking people to buy them. It is a working agreement with the people that they would sell to. • • • • 1 1 Py • • A March 11, 1980 0 L. • MR. KRIESEL stated that they had had meetings with Mr. Hagstrom, Mr. Zoller and Mr. Larson but not that specific type of communication was involved. MR. HAGSTROM stated that they would like to enter into the earnest money agree- ment and get a deed for clear title and they can provide assurance of financing to complete the outside and proceed on that and they can provide a letter that will say to qualified buyers the First National Bank is interested in financing. MR. MAGNUSON suggested that within the next two weeks he and Mr. Kriesel could put together a comparison of the two proposals - the purchase price they are offering to pay the City, the schedule for construction, the type of financing, the source of security that they would like to give to the City - etc. MAYOR JUNKER felt that if they are going to take the plywood off the windows and if there is nobody living there, they are going to have vandalism and MR. HAGSTROM disagreed with that, if it is approved for one of the smaller units, they can develop that and somebody could move in there. CHARLES POZZINI, West Olive Street asked both parties what those units would sell for? MR. HAGSTROM stated the four omits that involve two stores - one each corner of the building with a stair system within the unit - it is basically a two floor unit - finished living space - downstairs with related utilities and then the common space - (common to all units), exterior and parking - they would be in the neighborhood of $70,000 to $75,000 completely redone with new heating system, electrical service, insulation with the common stairs, etc. MR. GOULD stated that they figured nine condominiums with two different styles - one is around 1,100 square feet and the other one around a thousand - $75.000 for the one and $85,000 for the other MARK CARROLL, 1104 South First Street, asked where the yard space was going to be for these people - there will be inside space, but none on the outside. COUNCILWOMAN BODLOVICK asked Mr. Hagstrom if he would be willing to put up a performance bond to make sure that it is completed and MR. HAGSTROM stated that he talked to the City Attorney and the Coordinator about that and they are open to negotiation on that to put up some kind of bond, some kind of assurance and reassurance in the purchase agreement. COUNCILWOMAN BODLOVICK also asked Mr. Gould if he is prepared to put up the per- formance bond and he replied that they do have the money. MAYOR JUNKER asked Mr. Hagstrom the length of time that it would require them to have it completed and MR. HAGSTROM stated that is difficult but it would be about a year from start to finish - the work on the exterior would proceed this spring and would be done in matter of months - at least you could see that progress is being made, painting, cleaning up the windows relating to the exterior. COUNCILMAN ROGER PETERSON felt that the City Attorney had a good idea to take two weeks to compare the two proposals and make a final judgment within the ninety days limit which the judge originally set dawn. MAJOR JUNKER asked Mr. Gould what his time -table was and MR. GOULD responded that it would take six months for the completion of the eleven units and would pay $10,000 for the purchase of the property. MR. GOULD was asked to submit a written proposal for this project and then the statement from the bank on the Hagstrom proposal. COUNCILMAN HARRY PETERSON stated that he would like to see to the best extent possible an artist sketch of the completed exterior - he still has great concerns as to whether or not they will substantially change the appearance of this building - he would like to be assured of that by having artist's sketches as part of the proposals. JIM HUNT stated that basically the south chimney has been cut down from the original photo and there was a very small balcony railing on the east and west sides of the building - he has photos which were taken just after the school district vacated the building which were used on the calendars last year. Onerally that is going to have to be the acceptable exterior - his concern basically is that the building is preserved. COUNCILMAN HARRY PETERSON asked what if the purchaser of the building and the one renovating it should substantially change the exterior appearance (windows, balconies) what recourse does the City have to recover the building because of non - performance - is this covered in the performance bond? 6M • • • • 1 • r • March 11, 1980 MR. MAGNUSON stated that the in the past the Council has talked about restrictive covenants where the owner would agree not to alter the exterior at all or he proposed any alternations that would have to be okayed by the City Council or the City Council in conjunction with the Historical Preservation Commission. The remedy for the breach of what would be an injunction against the person - have the court order them to do a certain thing or does not do it - he did not feel that the City would be entitled to get the building back after the person has spent a lot of money on it and changed it - he did think that the City could have pretty strict control over it in any alterations from that exterior that weren't in conformance with either what the Council wanted or specifically with the Historical Act. APPLICATIONS None COMMUNICATIONS From the League of Minnesota Cities regarding the annual conference to be held in Duluth, June 11 -13, 1980. (Information - no action necessary) From the League of Minnesota Cities "Action Alert" on Municipal Bond Interest Rate Bills and Mr. Kriesel stated that there are a number of bills in the legislature on this matter at the present time which should improve this situation. Notice of the hearing before the Municipal Board on the continued hearing on the Johnson Annexation which will be held at 9:00 A. M., March 21, 1980 at the Washington County Courthouse. CITY CLERK'S REPORT None CITY COORDINATOR'S REPORT 1. Mr. Kriegel asked the Council to set the hours for the Board of Review which will be held on May 1, 1980 and they agreed on the 10:00 A. M. to 4:00 P. M. and 6:00 to 9:00 P. M. 2. On motion of Councilman Roger Peterson, seconded by Councilman Powell, the Clerk was directed to advertise for bids for the Removal of Diseased Elm Trees for 1980 and with said bids to be returnable at 4:00 P. M. on Monday, March 31, 1980. (all in favor) 3. On motion of Councilman Harry Peterson, seconded by Councilwoman Bodlovick, the Finance Director /Coordinator was authorized to set up a Petty Cash Account for the City Clerk's Office in the amount of $100.00. (all in favor) 4. On motion of Councilman Roger Peterson, seconded by Councilman Powell, the Mayor and the City Clerk were authorized to sign the Union Contract Agreement with Local No. 49 for the Street and Parks Departments. 5. Mr. Kriesel informed the City Council regarding the letter that he had received from the Metro Waste Control Commission regarding the overage in the sewage treated for the City of Stillwater for 1979 which amounts to a deficit of $19,026.24 and there was a previous deficit of $53,000 and now it is over $70,000. The rates that he was previously proposing would have to be increased and that it would be inadequate. In order to eliminate this deficit the rates would have to go to $18.00 per quarter minimum charge plus an overage charge of 60c per thousand. Last year it was $15.75 minimum charge plus an overage charge of 50c. There was further discussion about charging the people with roof drains and the flowing water through their basements and it was felt that $20,000 could be made up rather than making everyone pay for it - charge the people who use it and they should pay for it. MR. ELLIOTT stated that he would like to have each one of the Council members to get into one of these basements when they are taking these readings - they are old buildings and there are many unusual things and this is a detective job to see what is happening with flows. The key thing is the spring flows are the ones that are causing a major contribution in the flow. He does not know the rate of flow and they will be starting this work on Thursday of this week to identify those spring flows and by the next Council meeting he should have some meaningful information - the flows in the City of Stillwater roughly double what they should be for a community of this size - there is about 300 million gallons overage and it is hopeful that a major portion of that could be taken out. • I I I M • • • • • 1 • • March 11, 1980 • r MR. KRIESEL informed the Council that regardless of the Infiltration that the Metropolitan Waste Control is still raising its rates. It was felt that if the study was done and we were able to pick up the deficit, then we could possibly wait until next year to increase the rates to the homeowners. MR. ELLIOTT stated that some of the sewers in the downtown area were built in 1880 and they are one hundred years old this year and they have served a useful life and there was nothing done with them during the deparation - the old pipe currently carries only sanitary sewerage. 6. Mr. Kriesel asked the Council to authorize him to set up a meeting with the HMO representatives to meet with the employees on these programs. It was agreed that this meeting would be held on Monday, March 17, 1980 at 3:30 P. M. There were mention made that by Federal law that the City has to offer them a HMO program and Mr. Magnuson will check this out in the law. 7. Mr. Kriesel submitted to the Council members the applications for the Citizens Advisory Board for Cable Television, but they were not ready at this time to make a decision on this matter and action was delayed until the next regular meeting to pick a person to serve from the City of Stillwater on this Board, and there were questions about the membership from the other communities whether it is one or two from each community. 8. On motion of Councilman Powell, seconded by Councilman Roger Peterson, the Finance Director /Coordinator was authorized to prepare the specs for the paint- ing and the dehumidification of the Arena. (all in favor) 9. There was discussion on what the charges should be for the use of the Council Chambers and this matter was referred to the Administrative Committee for their recommendation. THE MAYOR DECLARED A RECESS FROM 8:30 to 8:40 P. M. CONSULTING ENGINEER'S REPORT 1. MR. ELLIOTT had the three contracts between his firm and the City to do the I/I STUDY ANALYSIS in accordance with the Metropolitan Waste Commission and the Federal EPA guidelines. The cost is about $60,000 with the Federal's Share is 75 %, the State is 15% and the City's Share is 10% of that total. The contract does not authorize them to proceed except on one thing and that is to make the application for the City and that is all until the City is notified that they have a grant. The Council had previously authorized tha= this be signed. COMMITTEE REPORTS PUBLIC SAFETY MAYOR JUNKER requested that Mr. Shelton erect a "POIICE AND FIRE DEPARTMENT ONLY PARKING" signs on each corner of their parking lot to keep outsiders out of there. PUBLIC WORKS 1. On motion of Councilman Powell, seconded by Councilman Harry Peterson, the Council authorized Jack Shelton and George Diethert to attend the Tree Inspector's Workshop on April 1, 1980 at a cost of $4.00 for the registration. (all in favor) 2. On motion of Councilmah Roger Peterson, seconded by Councilman Powell, the Council authorized Mr. Shelton to obtain quotes to winterize the vector pump, purchase some root cutters for this machine and also for the repair of the drum on the brush chipper. (all in favor - all of these items are in the budget). 3. On motion of Councilman Roger Peterson, seconded by Councilman Harry Peterson, the Council authorized the installation of a stairway by Custom Concepts on Chestnut Street on the south side of the building (they will remove the grills by the window wells and remove three feet of the sidewalk) and make an outside stairway and open up the basement to this building with a railing and in accord- ance with the codes and safety controls. (all in favor) PARKS AND RECREATION 1. Mr. Blekum reported that Dick Moore is working on the parking lot on South Main Street and there is a certain amount of landscaping involved and Mr. Moore asked Mr. Blekum for ideas along this line and how much time his department can give them in the project. (continued on the next page) 67 • • J • • AN • 1 •�8 .( March 11, 1980 0 He presented the map to the City Council and detailed the landscaping to them for this recommendation and approval. He will use spruce trees to screen the parking area and the entrance sign will be moved. In two areas rather than sod he will plant it with "crown - witch" which will bloom ali summer long -which has low maintenance. On motion of Councilman Powell, seconded by Councilwoman Bodlovick, Mr. Blekum was given apparel of the landscape project for the parking lot and authorized to get the quotes foi this project which will become a part of the project costs. (all in favor) PUBLIC WORKS (continued) 4. Mr. Shelton stated that Dick Moore called him regarding the type of meters that will be going into this parking lot and the Council had some discussion on this matter. On motion of Councilman Harry Peterson, seconded by Councilman Roger Peterson, the Council directed that there be two hour parking meters in the Main Street Parking Lot (25C for two hours). (all in favor) ADMINISTRATIVE None CITY ATTORNEY'S REPORT No Report COUNCIL REQUEST ITEMS None OUESTIONS FROM THE PRESS REPRESENTATIVES None ORDINANCES None RESOLUTIONS The following resolution was read and on roll was unanimously adopted: 1. Directing the Payment of the Bills. ADJOURNMENT On motion o. Councilman Roger Peterson, seconded by Councilwoman Budiovick, the meeting adjourned at 9:00 P. M. Attest: dl .e ) 4 .r!t - Ci Clerk Mayor 1 e • • • •