04-21-1980 CC MIN
REGULAR SEMI-MONTHLY MEETING OF THE
CITY COUNCIL OF ELK RIVER
HELD IN THE ELK RIVER PUBLIC LIBRARY
April 21, 1980
1
Members Present: Mayor Mads~n, Councilmembers Otto, Toth, Engstrom, Duitsman.
Members Absent: None.
1. The meeting was called to order at 7:30 p.m. by Mayor Madsen.
2. Agenda
Item 10 D. Star Market Industrial Revenue Bonds, was added to the agenda.
COUNCILMAN OTTO MOVED APPROVAL OF THE APRIL 21, 1980, CITY COUNCIL AGENDA.
COUNCILMAN TOTH SECONDED THE MOTION. MOTION PASSED 4-0.
3. Minutes
COUNCILMAN DUITSMAN MOVED APPROVAL OF ~HE MINUTES OF THE APRIL 7, 1980, CITY
COUNCIL MEETING. COUNCILMAN OTTO SECONDED THE MOTION. MOTION PASSED 4-0.
4. Open Mike
Mr. Jim Hummel appeared before the City Council regarding the Las Vegas nights
at Will's Place. Mr. Hummel explained the events prior to the receiving of
the letter from the City of Elk River ordering the immediate discontinuation
of the Las Vegas nights at Will's Place. Mr. Hummel indicated that he had
made the downstairs of Will's Place available to various organizations for
fund raising events. Mr. Hummel further indicated that it began with the
Lion's Club and at that time he checked with the Police Department regarding
the legality of the casino nights held by the non-profit organizations. Mr.
Hummel indicated that the Police Department said the project was o.k. if Mr.
Hummel and Will's Place were not involved. Mr. Hummel explained that the
State Liquor Control Commission had notified him on Monday, April 7, 1980,
that they had received a complaint regarding the Las Vegas nights held at
wi-lIs Place. 'Mr.. Hummel returned the call to the Commission and they indi-
cated there would be no immediate action but that the Bureau of Criminal
Apprehension had been notified. Mr. Hummel then contacted the Bureau of
Criminal Apprehension and was unable to speak with someone regarding the
incident. Mr. Hummel indicated that on Thursday, April 10, the City Adminis-
trator personally delivered a letter to him ordering the immediate stopping
of the illegal gambling activities. The City Administrator indicated he
had delivered a letter to Mr. Hummel at Will's Place advising him that the
Minnesota Bureau of Criminal Apprehension, and the State Liquor Commission
had advised the City of Elk River to put an immediate stop to the illegal
gambling activities held at will's Place. The City Administrator further
indicated that the only type of gambling permissible in the City of Elk River
and in the State of Minnesota is authorized by State statute and subsequently
by the City of Elk River ordinance which states "the only gambling allowed
and licensed for are raffles and gambling devices known as paddle wheels and
tip boards." The City Administrator further. indicated that the Bureau of
Criminal Apprehension report was a confidential report and only available to
law enforcement agencies. The City Administrator indicated the Public Safety
Committee had a meeting on Wednesday, April 9, and advised the City Adminis-
trator to send the letter to Mr. Hummel and to all other liquor license
holders regarding the illegal gambling events held in the City of Elk River.
The City Administrator indicated that the gambling held at Will's Place is
April 21, 1980
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illegal by State statute and City ordinance. Mayor Madsen indicated that
according to State statu es the gambling is illegal and there was no choice
but to put a stop to it. Councilman Duitsman indicated that with one or two
events held in the City uring the year, there were no complaints, but too
many were scheduled and, therefore, a complaint was issued and the Public
Safety Committee had no choice but to recommend the immediate stopping of the
gambling events. Mayor Madsen indicated that an unidentified citizen had
called the State Liquor Control Commission regarding the gambling events.
Councilman Toth indicated that if the City had not stopped the gambling events.
the State Liquor Control Commission would, and he further indicated he felt
it was"best the City handled the situation. Mr. Hummel indicated he felt
the matter should have been discussed with him. Mayor Madsen indicated that
the gambling events taking place at Will's Place were illegal, against State
statute and City ordinance, and, therefore, could not be allowed.
5. Downtown Development Task Force Recommendations
Mr. Bud Houlton appeared before the Citv Council representing the Downtown
Development Task Force and the Elk River Chamber of Commerce regarding the
Downtown Development ~ask Force's recommendations. Mr. Hou~ton indicated
that the Task Force had contracted Ffsher, Caughlin & Associates and Rieke,
Carrol & Mu~ler as consultants for the downtown development, and further
indicated after many meetings and a full one-day workshop the recommendations
of the consultants and the Task Force were to the City Council that the City
Council authorize a Housing and Redevelopment Authority and set up a tax
increment district. Mayor Madsen indicated he had attended the meetings and
the workshop and agreed with the Task Force recommendations to form an HRA
and more forward with development" of the downtown area. Mayor Madsen further
indicated the City Council should give whatever help necessary to the down-
town development. Councilman Duitsman asked if plans were formulated as to
what the Task Force wanted to do with the downtown area. Mr. Bud Houlton
indicated that space was needed for a major anchor shopping center and an
expansion of parking. Mr. Houlton further indicated that it was recom-
mended by the Task Force that the City Council appoint two persons from the
business cemmunity to serve on the board of the HRA. COUNCILMAN lJUI'l'SMAN
MOVED TO AUTHORIZE THE CITY ADlVllNISTHATOR Tu BEGIN PREPARATION OF THE HOUSIl~G
AND REDEVELOPMENT AUTHORITY DOCUMENTS AND TO INVESTIGATE FURTHER STEPS
COMPLETION OF THE DOWNTOWN REDEVELOPMENT PROJECT AND REPORT BACK TO THE
CITY COUNCIL. COUNCILMAN ENGSTROM SECONDED THE MOTION. MOTION PASSED 4-0.
6. Orono Dam Resolution 80-3
The City Administrator indicated that Resolution 80-3 is the official resolution
receiving the preliminary report of the rehabilitation of the Lake Orono dam,
calling for a public hearing on the improvements to be held at the
regular City Council meeting, May 5, 1980, 8:00 p.m. at the Elk River Public
Library and ordering preparation of plans specifications. The City Administrator
further indicated that the bids for the project would be opened April 25, 1980,
and awarding of the contract could be made at the City Council meeting May 5, 1980.
COUNCILMAN TOTHMOVED 'ADOPTION OF RESOLUTION 80.3 COUNCILMAN DUITSMAN SECONDED
THE MOTION. THE MOTION PASSED 4-0.
7. Tamarack Final Plat
Mr. Dick Carson and Mr. Larry Koshak appeared before the Council regarding
the Tamarack final plat. Mayor Madsen asked if any changes had been made
after approval by the Planning Commission of the final plat. The City Adminis-
trator indicated no changes: had been made since approval by the Planning
April 21, 1980
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Commission. Councilman Toth expressed his concern of the one main street
that would be serving the residential area and voiced his opposition to the
plat because of no emergency exit. Mr. Dick Carson indicated that with the
terrain of the land as such there was no other feasible way to work with the
property and have available land for park. Mr. Carson further indicated
that there was the possibility of an emergency route out through the park
area. Councilman Otto indicated that the Council had already set a precedent
approving plats with one access and felt the Tamarack plat should be approved
as well. The City Administrator indicated that the park improvements to be
done would be included in the Developer's Agreement and asked Mr. Carson to
explain to the City Council what would be done with the park. Mr. Carson
indicated that two ball fields with backstops, one football field with goal
posts, picnic tables and swings would be included in the construction of
the park. Mr. Carson further indicated they would top soil the ball fields
and seed them. The City Administrator. asked how the area would be served with
water for drinking and watering, and also if there were to be a.ny paved sur-
faces in the walking or parking areas of the park. Mr. Carson indicated that
the walking and parking areas in the park would be surfaced with class 5
material, and further indicated they would put a well in the park. Mr. Car-
son indicated that it was their intention to complete the whole park before
any of the lots in the Tamarack plat were sold. COUNCILMAN DUITSMAN MOVED
APPROVAL OF THE TAMARACK FINAL PLAT SUBJECT TO THE DEVELOPER'S AGREEMENT.
COUNCILMAN OTTO SECONDED THE MOTION. MOTION PASSED 3-1. COUNCILMAN TOTH
OPPOSED.
8. Recreation Board Recommendations
Mr. Jim Dingle appeared before the City Council in behalf of the City's
Recreation Board, with a number of recommendations for the City Council.
Mr. Dingle indicated the Recreation Board recommended the appointment of
Marlon Glives to the Recreation Board and further indicated there was room
for four more members. Councilman Otto asked that a young person be considered
for an appointment to the board. Mr. Dingle indicated a sophomore would be
desireable because of the three years that person could serve on the board.
Mayor Madsen suggested that an article be placed in the local newspaper
explaining what the Recreation Board does and asking for volunteers to serve
on the board.
Mr. Dingle asked that the City Council consider allocation of funds to be used
for the maintaining of the skating rink at the pit and also funds to be used
in conjunction with the Community Education Program for swimming. Mr. Dingle
further indicated that the Recreation Board had donated $800 to Community
Education for swimming and that if there was not increased participation,
the need would be up to $1,900. Mayor Madsen asked who participated in the
Community Education swim program. Mr. Dingle indicated that the Community
Education Department estimated 4/5 of the people participating in the program
were from the City of Elk River. The City Administrator indicated that the
allocation of funds be considered at the time of the 1981 budget.
Mr. Dingle indicated that the Recreation Board had received a request to reserve
Orono Park for individual groups. The City Administrator indicated that the
Community Education had approached the City to use the park and that it could
be made available through the Street Department, if necessary. Mayor Madsen
indicated thattbe\ park was a public park and there for everyone, and that
it would be possible to ~erve the shelter, but the park could not be closed
to the public. The City Administrator indicated that the requests for use
of the park should come through City Hall and they would inform the Recreation
Board.
April 21, 1980 I
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Mr. Dingle aSk~d what the liability was to the Recreation Board if an
held at the pa k was sponsored by another organization. Mayor Madsen
cated that the City has general liability insurance.
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event
indi-
Mr. Dingle indicated that the softball field scheduling was being handled by
the Softball Association and at this time there were two nights open, Monday
night one field is available, and Friday night both fields are available for
public use. Mr. Dingle indicated that the Recreation Board recommended that
the Duerr-Gruepner field be reverted back to a full-fledged baseball field
to be used by the Elk River Red Devils, and at this time, they had no cost
figures to the revision of the field to a baseball field. Mayor Madsen indi-
cated that the Street Superintendent should be involved in the consideration
of changing the softball field to a baseball facility and that this should
be one of the goals of the City of Elk River. COUNCILMAN OTTO MOVED APPROVAL
OF THE APPOINTMENT OF MARLON GLIVES TO THE RECREATION BOARD. COUNCILMAN
TOTH SECONDED THE MOTION. MOTION PASSED 4-0.
9. Public Safety Recommendation Regarding Purchase of Property
The City Administrator indicated that the Public Safety Committee had made a
recommendation to the City Council to purchase the two lots adjoining the
existing fire station from George and Loretta Moos. Mayor Madsen asked what
the legal procedure would be in the purchase of the lots. The City Adminis-
trator indicated that he would discuss the process of preparing the legal
documents with the City attorney, Dave Sellergren, and also suggested the
City of Elk River secure an appraisal of the land. Mayor Madsen indi-
cated that the cost of the land could only be spread over a five year period.
Councilman Otto suggested an appraisal of the land be secured before legal
documents are drawn. The City Administrator indicated that Ty Bishoff would
be capable of providing that appraisal. COUNCILMAN ENGSTROM MOVED APPROVAL
OF THE PURCHASE OF THE TWO LOTS ADJACENT TO THE CITY'S EXISTING FIRE STATION,
SUBJECT TO AN APPRAISAL AND A FIVE YEAR PAY PERIOD. COUNCILMAN DUITSMAN
SECONDED THE MOTION. MOTION PASSED 4-0.
10. Consider Administrator's Update
A. Old Highway #101 Bridge Project
The City Administrator indicated he had communicated with the Wright County
engineer regarding the j~nt-powers agreement. Larry Koenig, Wright County
engineer, indicated that Joint-powers agreement was with their attorney
and would be completed and forwarded to the City of Elk River's attorney.
B. Orono Dam
The City Administrator indicated the City had been approached by persons
interested in refurbishing the plant. It was their suggestion that the
City repair the building and they would refurbish the hydro generation
equipment. The City engineer, CHZM Hill, and City Administrator suggested
this option not be exercised as if may jeopardize the funding of the dam
rehabilitation project, delay construction, and would result in a marginal
power operation at best. The City Administrator indicated that persons
have been interested in buying the hydro units and turbines at the price
of $2,500. He further indicated that he had requested the individuals
interested to submit proposals for the purchase of the hydro units and
turbines, which would in turn be submitted to the Council.
April 21,. 1980
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c. Public Works Department Project
The City Administrator indicated that due to the changing of the shafts
at the Wastewater Treatment Plant, the Street Department people were
behind in their sweeping of streets and replacing of street signs. The
City Administrator further indicated that WEP people and CETA people had
been hired to work at the Wastewater Treatment Plant and with the Street
Department in order to get the project up to date. Councilman Duitsman
asked at what point the sea1coatingproject was, and requested that it be
a high priority for the Street Department.
D. Star Market Industrial Revenue Bonds
The City Administrator indicated] that the Thorpe Company was having diffi-
culty placing the financing for the project and would probably be placing
it with a private investor rather than an institution. The City Administrator
further indicated that if the financing was placed with a private investor, .
they would have to come back to the City Council for approval of the project.
11. Check Register
COUNCILMAN OTTO MOVED APPROVAL OF THE CHECK REGISTER. COUNCILMAN ENGSTROM
SECONDED.THE MOTION. MOTION PASSED 4...0.
12. Tentative Agenda
The bid award for the Orono dam project and a public hearing on the project
are items tentatively scheduled for the May 5, 1980, City Council meeting.
There being no further business, COUNCILMAN OTTO MOVED THE MEETING BE ADJOURNED.
COUNCILMAN TOTH SECONDED THE MOTION. MOTION PASSED 4-0.
Respectfully Submitted,
9~Ko {J~~
Phyllis Boedigheimer,
Deputy City Clerk/Treasurer
PB/ab