12-10-1979 CC MIN - SPECIAL
SPECIAL MEETING OF THE
ELK RIVER CITY COUNCIL
HELD IN THE SCHOOL DISTRICT OFFICE
December 10, 1979
Members Present: Mayor Madsen, Councilmembers Duitsman and Toth.
Members Absent: Councilmembers Otto and Engstrom.
1. Meeting called to order a.t 7:30 p.m. by Mayor Madsen.
2. Industrial Revenue Bond Request for S. D. Smith & Associates (Star Market)
Mr. John Lewman, Mr. S. D. Smith, Mr. Ron Dargis, representatives of the May Co.,
representatives of the proposed contractor on the project and a bonding consultant
for the petitioner were present to.address the City Council regarding the issuance
of industrial revenue bonds to' finance the construction of a commercial store on
Highway 169 north of the Northbound Liquor Store. Mr. Lewman reviewed the proposed
project briefly for the members of the City Co!ncil and indicated construction was
anticipated to begin in the spring of 1980 by March 1st and approximately 25 jobs
would be created by the proposed project. Councilman Duitsman asked the petitioners
and the City Administrator what was going to be done to surrounding streets and
driveways as a result of this constructon. The City Administrator indicated that
as previously agreed a two lane, 9 ton roadway on an easement provided by the City
to the developers of the project would be constructed, that a two inch overlay
from Hwy. 169 to the east side of the Main Street entrance to the proposed project
be installed, that Main Street be widened to provide for turn lanes and that the
appropriate storm seWer be provided for the project and the roadways. Mr. Reirsgord,
of the May Co., indicated that these requirements were acceptable to the developers
and would, in fact, be installed as the project proceeded. Councilman Toth asked
the developers why a, two year delay in the project had been experienced. A.May Co.
representative indicated that severe soil problems on the site had been experienced
and that the original investor in the project had backed out of the agreement and
another investor had to be located. Mr. Lewman indicated to the Council that the
total project cost would be between $970,000 and $1,000,000 and that the tax
exempt mortgage required for the completion of the structure would be in the amount
of $745,000 over 25 years. Mayor Madsen declared the public hearing open and asked
all individuals wishing to speak for or against the project to address the City
Council at this time. There being no persons presents, Mayor Madsen closed the
public hearing and confined comments to the City Council. COUNCILMAN TOTH MOVED
APPROVAL OF RESOLUTIIDN 79-41 GRANTING PRELIMINARY APPROVAL TO AN INDUSTRIAL
REVENUE BOND PROJECT FOR S D. SMITH & ASSOCIATES, APPROXIMATELY IN THE AMOUNT OF
$745,000. COUNCILMAN DUITSMAN SECONDED THE MOTION. MOTION PASSED 3-0.
3. Liquor License for Richard and Marlene Povlitzki
Richard and Marlene Povlitzki and their real estate agent, Mr. TQm Libra, were
present to address the City Council regarding the issuance of a liquor license for
an operation to be located in the facility now known as Dick's Main Tap. The City
Administrator informed the Council that questions regarding the background of the
proposed licensees had been raised in the background investigation and as of this
time had not been resolved. The Povlitzki's indicated that these problems were
addressed by the City of Minneapolis when a liquor license was issued to them and
that they have had several liquor licenses since the time being questioned in the
background investigation. COUNCILMAN DUITSMAN MOVED TO TABLE FURTHER CONSIDERA-
TION OF THE LIQUOR LICENSE UNTIL THE DECEMBER 17, 1979, CITY COUNCIL MEETING. .'
COUNCILMAN TOTH SECONDED THE MOTION. MOTION PASSED 3-0.
COUNCILMAN TOTH MOVED THE MEETING BE ADJOURNED. COUNCILMAN DUITSMAN SECONDED
THE MOTION. MOTION PASSED 3-0.
Respectfully Submitted,
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Robert C. Middaugh
City Administrator
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