07-07-1983 CC MIN - SPECIAL
SPECIALLY SCHEDULED MEETING OF THE
ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER PUBLIC LIBRARY
JULY 7, 1983
Members Present: Mayor Hinkle, Counci members Duitsman, Schuldt, and Gunkel.
Members Absent: Councilmember Engstr m.
1. The meeting was called to order at 7:30 p.m. by Mayor Hinkle.
2. Continuance of the Consideration 0 Bid Award for Gates Avenue 1m rovement Pro'ect
Mayor Hinkle indicated that Counci member Gunkel would like to address the City
Council first, regarding the Gates Avenue Improvement Project.
Councilmember Gunkel indicated tha she had spoken with Mr. Aswegan, from the
State of Minnesota, Department of ransportation, regarding the State policy for
MSA funds. Councilmember Gunkel i dicated that Mr. Aswegan has reviewed the
project and indicated to her that 11 the MSA funds could be obtained for the
construction of the storm sewer pr ject from School Street to the river, even
if the road through the PUD was no constructed. Councilmember Gunkel indicated
that Mr. Aswegan indicated another option was also possible. Basically, the Storm
Sewer Project could be staged with the Lower Gates portion being Stage 1. When
the road was eventually built thru the PUD area, that portion of the Storm Sewer
would be installed. Councilmember Gunkel further indicated that Barthel's option
to the property in the PUD has exp'red. Councilmember Gunkel indicated that in her
conversation with Mr. George Dietz, she got the distinct impression that Mr. Dietz
did not want the assessments on th property.
The City Administrator indicatedt
the project, and further indicated
office does give final approval to
indicated that it would be possibl
street, but that it was his recomm
the bid to Barbarossa Construction
of the project through the PUD.
conditions would be (1) to hold th
changes by July 25th; (2) to obtai
petition and waiver of objection t
City Administrator indicated that
that would be placed on the last t
Discussion was carried on regardin
the Storm Sewer Project. The City
Sewer Project could not be constru
receive benefit. The City Adminis
would share in the cost of the pip
date for those costs.
at Mr. Aswegan does not have the final say on
that Mr. Dave Reed from the Brainerd MnlDOT
a project. The City Administrator further
to build half of the street versus the whole
ndation to award all construction elements of
with three conditions on the three elements
e City Administrator indicated that the three
public hearing dealing with the proposed
easements in the PUD; and (3) to receive a
the assessments from the land owner. The
he contractor is agreeable to the conditions
ree elements of the project.
the proposed areas that would be served by
Administrator indicated that if the Storm
ted in the PUD, areas E and E-l would not
rator further indicated that area E and E-l
s downstream and would be assessed at a future
Councilmember Schuldt questioned w 0 would pay for the amount reserved for future
assessments if the PUD would not d velop. The City Administrator indicated that
City Council Minutes
July 7, 1983
Page Two
if there were a short-fall, genera
that short-fall. The City Adminis
would possibly be structured to al
to be low in the beginning years a
Discussion was carried on regardin
Administrator indicated that if th
proximately $67,700 would be reser
assessed at the time of the improv
indicated that the $67,000 was for
stream. The City Administrator fu
through area E and E-l be construc
imately $1,537 per acre. The City
ments to the PUD could not be cons
sidered. First, the temporary pon
permanent with an added cost of ap
would have to be made regarding th
E and area E-l.
Mr. Terry Maurer, of Consulting En
of using the existing sanitary sew
indicated that the City would need
foot depth needed for the sewer li
the depth would eliminate the row
indicated that the School Street S
and surveys would have to be done
that the storm sewer line would ha
line in School Street.
The City Administrator indicated t
to the State of Minnesota that the
for,~he City to receive at1 the MS
Councilmember Gunkel indicated tha
is not on any of the agreements, a
member Gunkel questioned the valid
Barthel Developers.
Mr. Gary Santwire indicated that 0
Conditional Use Permit to the deve
a number ot conditions; one being
Agreement, and another being that
facility is built. Mr. Santwire i
the City will not lose the MSA fun
PUD, therefore why would the City
mente
Discussion was carried on between
the water tower and the requiremen
Duitsman indicated that the develo
Discussion was also carried on reg
to obtain funds to build a water t
-,
property tax would have to take care of
rator further indicated that the pay back
ow for bond principle and interest payments
d higher in the later years.
the cost to area E and area E-l. The City
improvements went in at a later date, ap-
ed for the area E and the area E-l to be
ments to the PUD. The City Administrator
their share of the storm sewer pipe down-
ther indicated that should the storm sewer
ed, the cost to be assessed would be approx-
Administrator indicated that if the improve-
ructed at this time, two things must be con-
in the PUD would have to be made more
roximately $30,500, and second, a decision
cost per acre that would be assessed to area
ineers Diversified, addressed the possibility
r easements through thePUD. Mr. Maurer
additional easements because of the 20 to 30
The additional easement necessary for
f trees behind the houses. Mr. Maurer further
stems would have to be revised and new plans
t additional costs. Mr. Terry Maurer indicated
e to be that deep because of the storm sewer
at the City would have to give a committment
road in the PUD would be constructed within 2 years
Funds.
Mr. Dietz expressed concern that his signature
d that the Barthel option has expired. Council-
ty of the Conditional Use Permit issued to the
November 22, 1982, the City Council issued a
oper, Ken Barthel, for the PUD contingent upon
hat the developer enter into a Developer's
here be adequate water supply before the
dicated that according to Councilmember Gunkel,
s if the street is not constructed through the
onsider putting the street through the develop-
he City Council and Mr. Gary Santwire regarding
of the conditional use permit. Councilmember
ers would agree to pay for the water tower.
rding the intent of tax increment financing
City Council Minutes
July 7, 1983
Page Three
Mr. Santwire questioned the indication of the Council that if the developers would
sign waivers of objection to the assessment, the developers would get the density
changes requested. Councilmember.D itsmanindicated that the request for a change
in the plan is actually the right t come back to the Council with a higher density
plan if necessary. The City Admini trator indicated that the change requested from
67 units to the 120 units is consistant with the zoning. Councilmember Duitsman
indicated that there is no guarante that there would be 120 units, and that the
developers are asking for the right to consider 120 units.
Councilmember Gunkel questioned the
be developed for a number of years.
would lose $78,000 in MSA funds, an
Department of Transportation would
years for the road to be constructe
funds as proposed. Discussion was
new bids should the contract not be
Mayor Hinkle indicated that the sto
make sense to use the current sanit
indicated that he felt it was a was
pond in the PUD. Mayor Hinkle furt
around, as predicted, the City woul
again, and further indicated that a
if the project to the PUD was not c
need of a road through a field which might not
The City Administrator indicated that the City
further indicated that the State of Minnesota
ant a formal commitment of approximately two
through the PUD in order to obtain the MSA
arried on regarding the timing of obtaining
awarded at the present time.
m sewer is in School Street, that it does not
ry sewer easements through the PUD, and further
e of money to construct a temporary holding
er indicated that he felt if the economy turns
not receive as favorable bids as they have
proximately $78,000 in MSA funds would be lost
nstructed.
Mr. Gary Santwire indicated that th City does not have a Developer's Agreement with
the developers of the PUD, and furt er questioned the City's requirement regarding
water supply.
COUNCILMEMBER DUITSMAN MOVED TO ADO T RESOLUTION 83-13 ORDERING THE CONSTRUCTION OF
WATER MAIN IMPROVEMENTS RELATED TO E GATES AVENUE IMPROVEMENT PROJECT AND TO AWARD
THE CONTRACT TO BARBAROSSA AND SONS CONTINGENT UPON THE CITY OF ELK RIVER HOLDING A
PUBLIC HEARING REGARDING THE PHASIN PLAN OF THE PUD, OBTAINING EASEMENTS FROM THE
LANDOWNER AND DEVELOPER, AND OBTAIN NG WAIVER'S OF OBJECTION TO THE ASSESSMENTS
FROM THE LANDOWNER AND DEVELOPERS F R THE PORTIONS OF THE CONTRACT INVOLVING THE
PUD. COUNCILMEMBER SCHULDT SECONDE THE MOTION. THE MOTION PASSED 3-1. COUNCIL-
MEMBER GUNKEL OPPOSED.
COUNCILMEMBER DUITSMAN MOVED T RESOLUTION 83-14 ORDERING THE CONSTRUCTION
OF THE GATES AVENUE IMPROVEMENT PRO ECT, AND TO AWARD THE CONTRACT TO BARBAROSSA
AND SONS IN THE AMOUNT OF $1,059,88 .40 CONTINGENT UPON THE CITY OF ELK RIVER HOLDING
A PUBLIC HEARING REGARDING THE PHAS NG PLAN OF THE PUD, OBTAINING EASEMENTS FROM THE
LANDOWNER AND DEVELOPER, AND OBTAIN NG WAIVER'S OF OBJECTION TO THE ASSESSMENTS FROM
THE LANDOWNER AND DEVELOPERS FOR TH PORTIONS OF THE CONTRACT INVOLVING THE PUD.
COUNCILMEMBER SCHULDT SECONDED THE OTION.
Councilmember Gunkel indicated that
PUD, but was in favor of the other
the improvement of Gates Avenue, th
but because of the way the motion w
THE MOTION PASSED 3-1.
not in favor of the improvements for the
egments of the improvement project involving
storm sewer and the water for the lower portion,
s worded, would have to vote against the motion.
R GUNKEL OPPOSED.
Councilmember Gunkel requested that individual notices be mailed to all parties
that were previously notified in th original public hearing of the PUD.
The City Administrator indicated
t he had met with the Lion's Club regarding
City Council Minutes
July 7, 1983
Page Four
the purchasing of the land for a p rk to be constructed in the location of the
Peat Bog. The City Administrator 'ndicated that the members of the Lion's Club
are very enthusiastic about the pu chase of the land and in the development of a
park for the City of Elk River. T e City Administrator indicated that the Lion's
would sign a Gift Agreement with t e City of Elk River for the funds that would
be obtained from the sale of their property. Mayor Hinkle indicated that he felt
a counter offer of approximately $ 40,000 to Bud Houlten for the purchase of the
land in the bog would be a reasona le offer.
Councilmember Duitsman indicated t
dollars involved in the purchase 0
which would include the assessment
amount the Lion's would contribute
The City Administrator indicated t
property in assessments, and that
cash committed to the development
seven acres of land owned by the L
further indicated that the LAWCON
Further discussion was carried on
cost of development of a park in
It was the consensus of the City C
a counter offer to Mr. Clem Darken
for the 33 acres of property in th
3. Heavenly Hills Road Improvement
General discussion was carried on
Heavenly Hills Addition. It was t
less than a 30 foot roadbed shoul
mente
Councilmember Gunkel indicated tha
Hills Committee to find a solution
mente Councilmember Gunkel indica
of the homeowners is an impossibil
Committee proposed that the City p
the road improvement in the Heaven
at he was interested in knowing the total
the property for park land development
that are now on the property as well as the
at approximately $45,000 is assessed to the
he Lion's Club have approximately $22,000 in
f park land, and an estimated $78,000 for the
on's that is for sale. The City Administrator
rant accounts for approximately $37,000.
egarding the cost of the property and the
e area.
uncil to authorize the City Administrator to make
ala, Real Estate Representative of Bud Houlten
area known as the Peat Bog.
egarding the size of the road bed in the
e consensus of the City Council that nothing
be constructed in the Heavenly Hills Develop-
she has met with various members of the Heavenly
to the problem of the roads in their develop-
ed that it is apparent that 100% participation
ty. Counc1lmember Gunkel indicated that the
ck up some of the cost of the construction of
y Hills Addition.
Discussion was carried on regardin the existing roads that need repair and the
roads in the Heavenly Hills Additi n. The City Administrator indicated that the
roads in the Heavenly Hills Additi n are private roads and not owned by the City,
whereby other roads that need impr vement are City roads. The City Administrator
further indicated that if the City Council would agree to something less than
their standards for the Heavenly HOlls Addition, it would be setting a precedent
of which other developments could xpect the same consideration. The City Admin-
istrator indicated that the City C uncil should review the appraisal of the property
in the Heavenly Hills Addition pri r to any decisions to be made regarding the
improvement of the roads.
Discussion was carried on regardin
owner for the assessments of the i
carried on regarding the length of
that he felt 20 years was too long
the dollars per month required of a home-
proVement project, and further discussion was
term of the assessment. Mayor Hinkle indicated
for the assessment of a road improvement.
City Council Minutes
July 7, 1983
Page Five
The City Administrator indicated t at if the Heavenly Hills homeowners could not
afford assessments for a blacktop oad, the City could help them contract for
improvement of their private roads obtain a private road agreement, and have
the homeowners sign a Maintenance greement. Counci1member Gunkel indicated
that she did not feel the homeowners would be in 100% support of a Maintenance
Agreement.
Further discussion was carried on regarding total cost of the improvement pro-
ject and the allocation of the cost. Counci1member Schuldt indicated that he
felt the homeowner should pay the total cost of the project, and it was their
option as to how long they would like tohave those assessments spread in order
to pay those costs. Further discussion was carried on regarding assessment
procedures, the obtaining of easements, and the cost of the improvement this
year versus next year.
It was the consensus of the City Council to wait until the appraisal has been
received and reviewed by the City Council before a decision is to be made.
Mr. Terry Maurer of Consulting Engineers Diversified, indicated that the survey
crew could spend approximately an hour in the development to get an idea of
what easements would be required for the improvement project.
THERE BEING NO FURTHER BUSINESS, COUNCILMEMBER GUNKEL MOVED THAT THE MEETING BE
ADJOURNED. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0.
Respectfully Submitted,
(J'! /I' /)", ,/ -
i ti/ \ ,.L. di" "
, - ' 'I """ I' /
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F / /
Phyllis Boedigheimer
Deputy City Clerk/Treasurer
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