HomeMy WebLinkAbout2002 [06] Jun 27
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June 27,12002
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Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular
session on Thursday, June 27, 2002 at 7:00 p.m. in the St. Joseph City Hall.
Members Present: Mayor Larry Hosch, Councilors Bob Loso, Cory Ehlert, AI Rassier, and Kyle
Schneider. Administrator I Clerk Judy Weyrens,
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City Representatives Present: City Engineer Joe Bettendorf, Public Work~ Director Dick Taufen"
Bond Counsel Monte Eastvold, ! I
Others Present: Michael Gohman, Scott Hamock, Bryan Nelson, Scott Miller, Jerry Hettwer, Ted
Schmid, Heidi Pepper, Tom Nahan, Jennifer Thienes, Cynthia Smith-Smith-Strack, '
Approve Aaenda: Rassier made a motion to approve the agenda with the following additions:
11 (a) Jodi Teich, Stearns County Engineer; 14 (a) Street marking; 11 (d) Hook up fees; 17 (c)
Safe & Sober Resolution. The motion also included the deletion of 3 (b) Minutes, The motion
was seconded by Loso and passed unanimously, . i
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Consent Aaenda: Loso made a motion to approve the consent agenda as follows:
a,
b.
c.
d,
e.
I f,
Bills Payable· Approve check numbers 31333 - 31439
Deleted
Web Page Development - Accept the proposal of Gov Web for one time license fee
of $ 500.00 and monthly host fee of $ 35.00 I
Change Order NO.2 - Northland Five - Authorize the Mayor to execute Change I
order No, 2 for Northland Five extending the date for the final wear course to Sept 1,
200~ ! 1
2002 - 2003 Liquor License - Requested Action: Approve the liquor licenses as:
submitted (See attachment "Pt).
Application for payment #1 - Business Park. Authorize Mayor to execute pay
application #1 to Larson Excavating and authorize payment in the amount of
$ 53,628,60
The motion was seconded by Rassier and passed unanimously.
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Discussion: Ehlert request that item (d) be tabled for discussion during the Engineer's
Report, Loso agreed to amend the motion to remove said item, I
Public Comments to the Aaenda: No one present wished to speak.
Loso made a motion to recess the Council meeting at 7:10 PM to allow the St. Joseph
Economic Development Authority to convene and discuss the Vic West relocation project.
The motion was seconded by Rassier and passed unanimously. I
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St. Joseph Economic Authority !
Vie West Relocation Proiect: Vice Chair Hosch called the meeting of the St. Joseph Economic ,
Development Authority to order at 7:10 PM. Hosch stated that EDA Chair Bruce Gohman is not
present at this meeting due to conflict of interest regarding the Vie West relocation project. EDA
Consultant Cynthia Smith-Smith-Strack of Municipal Development Group (MDG) presented the EDA
Board with the final Tax Increment Financing documents which would provide Vie West Steel with
$ 380,000,00 in recaptured tax, ! I
Smith-Strack stated that Vie West has formed a LLP with Gohman Construction whereby Vie West
will lease a 67,000 square foot building from Gohman. If the project is to be funded using TIF, th~
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June 27, 2002
Page 2 of 1~
EDA and City Council must approve the Development Agreement between the City of St. Joseph
and St. Joe Development LLC.
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The Development Agreement contains specific requirements relative to the implementation of the
project. The agreement requires the developer to complete the project in a=rdance with all terms
and specifications contained within the plan. Standards include, but are not limited to,
start/completion dates for construction, job and wage goads and reporting business subsidy
information,
Rieke made a motion to recommend the City Council accept the De~'elopment Agreement
between the City of St. Joseph and St. Joseph Development LLC authorizing and establishing
TIF District 1-4. The motion was seconded by Loso and passed unanimously by those
present.
Adiourn: Loso made a motion to adjourn the special meeting of the St. Joseph Economic
Development Authority; seconded by Rieke and passed unanimousl!y by those present.
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Mayor Hosch reconvened the meeting of the City Council at 7:15 PM.
Public Hearina - TIF District 1-4, Vie West Steel: Mayor Hosch opened the public hearing at 7:15
PM and stated the purpose of the hearing is consider the establishment of TIF District 1-4,
authorizing the use of TIF for the construction of a 67,000 square foot manufacturing facility. As
stated earlier, the proposed project involves the relocation of Vie West Steel. Without the assistance
of TIF the project cannot move forward, Smith-Strack stated the Plannin9 Commission reviewed the
proposed project in relation to the Comprehensive Plan and recommended the Council approve TIF
District 1-4. Hosch further stated that the St. Joseph Economic Development Authority recommends I
the City Council authorize the execution of the Developers Agreement between the City of St.
Joseph and St. Joe Development LLC establishing TIF District 1-4.
Hosch opened the public hearing for public comment. There being no one present requesting to
testify, the public hearing was closed at 7:17 PM.
Ehlert made a motion authorizing the Mayor and Administrator I Clerk to execute the
Developers Agreement between the City of St. Joseph and St. Joe Development LLC which
established TIF District 1-4 for the relocation of Vic West Steel. The' motion was seconded by
Loso and passed unanimously.
Public Hearina - Minnesota Investment Fund (MIF1. Vie West Steel; Mayor Hosch called the public
hearing to order at 7:17 PM and stated the purpose of the hearing is to consider an application to the
Department of Trade and Economic Development's (DTED'S) Minnesota Investment Fund for a low
interest loan to assist with equipment purchases,
Smith-Strack clarified the amount of funding available through MIF is dependent upon the number of
jobs created by the company requesting assistance. In the case of the application before the City
Council, Vie West is proposing to create 7 new positions at $10,00 per hour which translates into
$ 42,000 of assistance ($ 6,000 per job).
If the City is successful in securing MIF, the Department of Trade & Economic Development grants
the money to the City and the City in turns loans it to the developer at a low interest rate. The term
of the loan will be between 7 and 10 years at an interest rate of 3 to 4 percent as determined by the
City. The City retains the first $ 100,000 of MIF awards including principal and interest. These funds
then become a revolving loan fund for the City of St. Joseph. The revolving loan fund will be
managed by the St. Joseph Economic Development Authority and will be loaned to business for the
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purpose of retention and expansion.
is eligible for is $42,000,
June 27, 2002
Page ì of 15
The total Minnesota Investment Fund amount that this project
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Mayor Hosch opened the public hearing for comment from the public, There being no one present
wishing to testify the public hearing was closed at 7:20 PM. ¡
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Ehlert state it was his understanding that the Vie West project could generate up to $ 10,000 pe~job
through MIF, Smith-Strack stated that in the initial application stage, there was a misunderstanding
that the hourly rate included benefits, Under that scenario the Vie West project would have I
generated $ 10,000 per job, Unfortunately, the value per job is based on the salary without benefits.
Ehlert stated it is his understanding that Vie West Steel combined the workforce from a plant in I
another state. If that is the case, can the merged workforce be included in the MIF application. !
Smith-Strack stated that relocated workforce does not qualify for MIF assistance. '
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Rassier made a motion to accept Resolution 2002-_, authorizing submittal of an appliation
for business and community development funding for the St. Joe Development LLCIJenisys
Engineered Products, Inc, DIBIA Vic West Steel. The motion was seconded by Ehlert and
passed unanimously. i
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Resolution 2002 - _
Authorizing Submittal of Application for Business and Community Development
Funding for the St. Joe Development LLC/Jenisys Engineered Products
dlbla Vic West Project
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BE IT RESOLVED that the City of St. Joseph shall act as the legal sponsor for the project contained
in the Business and Community Development Application to be submitted on June 28, 2002 and'that
the City Administrator is hereby authorized to apply to the Department of Trade and Economic
Development for funding of this project on behalf of the City of St. Joseph,
BE IT FURTHER RESOLVED that the City of St. Joseph has the legal authority to apply for finaricial
assistance and the institutional, managerial, and financial capability to ensure adequate construction,
operation, maintenance and replacement of the proposed project for its design life,
BE IT FURTHER RESOLVED that the City of St. Joseph has not incurred any costs and has notl
entered into any written agreement to purchase property, I I
BE IT FURTHER RESOLVED that the City of St. Joseph has not violated any Federal, State, or local
laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful ör
corrupt practice. 1
BE IT FURTHER RESOLVED that upon approval of its application by the State, the City of St. I
Joseph may enter into an agreement with the State of Minnesota for the above-referenced project(s)
and that the City of St. Joseph certifies that it will comply with all applicable laws and regulations ¡as
stated in all contract agreements and described on the Compliances Section (5-7) of the Business
and Community DevelopmentApplication. i
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BE IT FUTHER RESOLVED that the City of St. Joseph has obtained credit reports and credit
information from Jenisys Engineered Products, Inc. dlbla Vie West. Upon review by the City of St.
Joseph's legal counsel, no adverse findings or concerns regarding, but not limited to , tax liens, I
judgments, court actions, and filings with state, federal and other regulatory agencies were identified.
Failure to disclose such adverse information could result in revocation or other legal action. 1
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NOW THEREFORE BE IT RESOLVED THAT the City Administrator is hereby authorized to execute
such agreements as are necessary to implement the project on behalf of the County,
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June 27, 2002
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Public Hearina _ Industrial Revenue Bonds, Vie West Steel Relocation: Mayor Hosch opened the
public hearing and stated the purpose of the hearing is to consider the proposal of St. Joe
Development LLC requesting the City of St. Joseph assist in financing the acquisition, construction
and equipping of a 67,000 square foot building to be used to process steel for construction. The
proposed facility is to be located on the northeast comer of Elm Street ancl15'" Avenue NE. The
assistance being requested is the issuance of Industrial Revenue Bonds.
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The maximum aggregate estimated principal amount of the bonds or other obligations to be issed to
finance this project is $ 4,200,000, The project will be owned by St. Joe Development LLC and will
be operated by Jenisys Engineered Products Inc, a Delaware Corporation, dlb/a Vie West Steel.
The bonds or other obligations will not constitute a charge, lien or encumbrance upon any property of
the City.
Bryan Nelson of Juran & Moody clarified the City's involvement in issuing the Industrial Revenue
Bonds is for tax exempt status, Hosch clarified that Industrial Revenue bonds are not included in the
City's debt limit and the City is not obligated for the repayment of such.
Mayor Hosch opened the public hearing for comment from the public. Th,ere being no one present
wishing to testify the public hearing was closed at 7:25 PM.
Weyrens requested the Council table action on this matter to July 18, 2002 at which time the
required documents will be ready for execution by the Mayor and Administrator I Clerk.
2001 Audit Report, Jennifer Thienes - Kern DeWenter Viere: Jennifer Thienes of Kern DeWenter
Viere (KDV) appeared before the Council to present the 2001 Audited Financial Statement. Thienes
stated that the fieldwork of the audit consist's of testing of financial functions and internal controls.
Theines stated that the City received the highest opinion available and fairly represents fairly, in all
material respects, the financial position of the City of St. Joseph.
Thienes presented the following information:
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~ As of December 31,2001 the City carried an undesignated General Fund balance equal to 5
months of expenditures, KDV considers a healthy balance to equal between 4 and 6 months
of expenditures.
~ Presented the Council with a graphic illustrating a fIVe year history of expenditures and
revenues, Generally the revenues and expenditures are consistent with prior years.
~ 24% of the revenue received by the City is through Tax Revenue,
~ Review of the Enterprise funds illustrates that the refuse fund carries a healthy fund balance
and operating transfers support the water revenue bonds. The Vi'<3ter fund is self supporting
covering all operating costs including depreciation. However, the sewer fund shows an
operating loss for 2001. The City should review the user fees and then raise a=rdingly to
cover all operating costs including deprecation.
~ The City will be required to comply with GASB 34 reporting beginning in the year 2004.
Over the next year the City should determine what method will be used for evaluating
infrastructure.
Heidi Pepper. SEH - Community Block Grant Administration: Heidi Pepper of SEH appeared before
the Council to discuss administration of the Community Block Grant awarded to the City of 51.
Joseph, Pepper stated the Community Block Grant is considered a federal grant that is administered
through the Department of Trade and Economic Development. Before funds can be expended, there
are a series of policies that must be reviewed and adopted by the City of St. Joseph. They are as
follows:
Excessive Force: The City must adopt and enforce a policy to prohibit tbe use of excessive force by I
law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil
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June 27, 2002
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rights demonstrations. Loso made a motion to adopt resolution 2002 _ prohibiting the lse
of excessive force; the motion was seconded by Schneider and passed unanimously,
Resolution 2002 - _
Prohibiting the Use of Excessive Force
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BE IT RESOLVED that the City Council of St. Joseph does hereby adopt a Civil Rights Policy
prohibiting the use of excessive force by law enforcement agencies within its jurisdictiori and
individuals engaged in non-violent civil rights demonstrations.: I
Drua free WorkDlace: The City must provide a drug free workplace, The City must also provide, drug
free awareness programs/information to employees, Ehlert made a motion to adopt a policy
declaring the City of St. Joseph to be a drug free environment and to provide
information/training to all employees regarding said policy including enforcement. ! The
motion was seconded by Rassier and passed unanimously. ¡
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HUD Disclosure ReDort: Pepper stated that the City must authorize execution of HUD Form 2880-
reporting Applicant/Receipt and Disclosure/Update Report, Form 2880 verifies that the City of St.
Joseph is receiving assistance from HUD in excess of $ 200,000, Said form also identifies all I
persons with a reportable financial interest in the project. Loso made a motion authorizing the
Mayor and Administrator/Clerk to execute Hue Form 2880 reporting receipt of funds and 1
disclosure of financial interest. The motion was seconded by Schneider and passed I
unanimously, ;
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Fair Housina Plan: The purpose of the plan is to formally declare the conviction and intention orthe
City of St. Joseph to achieve the aims of the Fair Housing Act and to assist the Secretary of Hou!;/ng
and Urban Development for the promotion and assurance of equal opportunity in housing with regard
to race, color, religion, sex, handicap, famílíal status, national origin, or public assistance status. 1
Ehlert made a motion to support equal opportunity for all residents or persons who wish to
become residents of the City of St. Joseph, and to ensure their rights to obtain decent, safe
and sanitary housing, The City of St. Joseph will not tolerate discriminatory practices, The
motion was seconded by Loso and passed unanimously. .
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Assessment Abatement Policv: Pepper stated the Assessment Abatement Policy is designed to 'pay
special assessments levied against residential properties owned and operated by low and moderate
income persons. Grant funds will be used for a public improvement project consisting of the !
extension of sanitary sewer and water systems and street improvements. 'Assessment abatements
will be made available to all eligible residents within the recently annexed area along County Road
121/College Avenue South. I
Pepper further stated that the eligibility of applicants will be determined by third party verification and
must meet the income requirements established by the US Department of Housing and Urban I
Development for Stearns County. I
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Bettendorf stated that the largest recipient of assistance is the Willshire Apartment complex, As part
of the grant agreement, the owners of the apartment must agree to keep the rental units affordable,
and 51 % of the occupants must be within the low to moderate income using the HUD guidelines.!
Pepper stated the owner of Willshire must agree to keep the rent affordable for a term to be I
determined by the Council. Ehlert recommended that the term of affordable rent be equal to the
length of the bond issue for the County Road 121 project. ¡
Pepper stated that once the City adopts the Assessment Abatement Policy, the process to qualifty
property owners will commence. Property owners of single family homes will be mailed a notice 1
informing them of the abatement program and policy. All the applications will be processed throught
SEH and are considered confidential.
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June 27, 2002
Page 6 of 15
Ehlert questioned what type of check and balance measure has to implemented by the City to
ensure that the property owner of Willshire agrees to the terms of the abatement policy. Pepper
stated that any apartment owner receiving abatement of assessments will be required to sign an
agreement between themselves and the City of St. Joseph. This agreement will contain a provision
requiring rents to remain affordable as determined by HUD, Pepper stated that for 15 years SEH will
verify the terms of the agreement annually, The rental abatement agreements will be ready for
Council action on July 18, 2002,
Bettendorf reminded the Council that the City is obligated to abate all assessments of any property
owner meeting the HUD income qualifications, If additional property owners qualify since the grant
has been submitted, the City must cover those costs, Bettendorf stated that the City is allowed to
assess the Willshire Apartments at the full assessment rate, not using the multiple family formula.
Therefore, if additional property owners qualify for abatement, the funds will be available through the
full assessment ability of Willshire.
Rassier made a motion to adopt the assessment abatement policy a,s presented by Pepper.
Further, any rental property owner receiving abatement will be required to maintain affordable
rent for a period of 15 years. The motion was seconded by Ehlert and passed unanimously.
Monte Eastvold, Financina 2002 Street Proiects: Monte Eastvold of Juran & Mooty appeared before
the City Council to present the proposed bond issue to finance the 2002 I'mprovement Projects.
Eastvold stated that due to the size of the bond issue he would recommend the City request the
issue be rated and insured, With the rating and insurance the issue has the potential of receMng a
AAA rating, resulting in a low interest rate, Eastvold stated it is his understanding the Council is
requesting the bond issue to be that of a public sale, Therefore, Eastvold requested the Council
establish a special meeting date for July 25, 2002 at 3:00 PM for the publlic sale of 4.7 million in
General Obligation bonds.
Ehlert made a motion to authorize the sale of 4.7 million in General Obligation Bonds through
a public sale to be held on July 25, 2002 and establish a special meeting of the Council for
3:00 PM the same day. The motion was seconded by Rassier and passed unanimously.
Northland Plat Six, Environmental Impact Statement: Ted Schmid of Lumber One Avon appeared
before the Council regarding the development of Northland Plat Six. Schmid stated that the
comment period for the EAW for Northland Six has expired. Weyrens reported that the City received
one notice from the Department of Natural Resources regarding a potentjal wetland impact on Iris
Lane, The notice did not require any action by the Council. Bettendorf recommended the letter be
filed with the preliminary plat as a possible impact.
Loso made a motion adopting Resolution 2002 - _ Finding of No impact for Northland Plat
Six,
Resolution 2002 -
Finding a Negative Declaration on the Need for an Environmental Impact Statement
for the Northland Plat Six Residential Development
WHEREAS, as the Responsible Government Unit ("RGU"), the City of SI. Joseph ("City")
completed an Environmental Assessment Worksheet ("EAW") for the proposed Northland
Plat Six residential development ("Project").
WHEREAS, during the EAW process the City gathered information about the Project regarding
whether there exists the potential for significant environmental effects fmm the Project;
WHEREAS, the City Engineer and City Council have carefully reviewed the information gathered
during the EAW process;
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June 27, 2002
Page ~ of 15
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WHEREAS, the City received no written comments to the EAW regarding the potential for signifcant
environmental effects relating to the Project.
NOW, THEREFORE BE IT RESOLVED BY THE ST JOSEPH CITY COUNCIL:
1. The City makes the following findings of fact:
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A.
The type, extent, and reversibility of environmental effects from the Project are ~ot
significant and not unlike those associated with other similar developments in the
City, surrounding areas, and the State of Minnesota, I
The City does not contemplate any related or anticipated future projects, activities,
or circumstances that would cumulatively create any significant environmental !
effects to the Project or outside of the Project Area. The cumulative potential effects
of related and future development within the Project Area would not be so significant
as to warrant an EIS,
B.
C.
The environmental effects associated with the Project are mitigated by the ongoing
regulatory authority of the City and other applicable state and local regulatory
authorities,
D,
Because of the information gathered and written comments received during the
EAW process, the City can anticipate and will be able to adequately control any 1
environmental effects which the Project may have by working with its City Engineer
and staff to implement proper and appropriate design and construction methods for
the Project. I
E.
Further study and review would not assist the City in identifying any potential for
significant environmental issues regarding the Project.
2. Based upon the information gathered, the public comments received, and the findings of fact
outlined above, the City as the RJU, finds that the Project does not have the potential for
significant environmental effects and the City makes a negative declaration on the need .for
an EIS for the Project: .
3. The City directs the City Engineer and City staff to take into consideration the informatioh
gathered by the City in this process when they deem is applicable and advisable in reviewing
the Projects's site plan and plat. I
The motion was seconded by Rassier.
Ayes: Hosch, Loso, Rassier, Schneider
Nays: None, Abstain: Ehlert
Motion Carried 4:0:1
Northland Plat Six, Final Plat: Schmid presented the Council with the final plat for Northland Plat Six.
Schmid previously requested the City amend the policy regarding the method in which the park !
dedication fee is calculated. Currently the City does not credit the developer with regard to parkl
land dedication fees for outlot or drainage areas. Schneider stated the Park Board reviewed this
matter and recommended the City Council abide by past practice of not crediting the developers!for
outlot or drainage areas, I
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Schmid objected to the recommendation of the Park Board and stated that the outlot area has a;
value and the developer should be compensated. In Northland Five the outlot/drainage areas were
attached to specific lots, Because of the size of the lot, a higher selling price was established. 1
Schmid further stated that had the Park Board surveyed the surrounding municipalities, they would
have discovered that most cities do assign a value to outlot/drainage areas and credit the parkland
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June 27, 2002
Page 8 of 15
contribution either by percentage of the value or the full value. The Coundl agreed to accept the
recommendation of the Park Board at this time, but will research this matter for future development.
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Bettendorf stated he has had an opportunity to review the plat and only t.vo issues remain
outstanding. One is the securing of an easement document, and the other is a wetland delineation
issue,
Rassier made a motion to approve the final plat for Northland Plat Slix contingent upon the
final approval of the City Engineer. The motion was seconded by Hosch.
Ayes: Hosch, Loso, Rassier, Schneider
Nays: None Abstain: Ehlert Motion Carried 4:0:1
Northland Plat Six. Developers Aareement: Weyrens presented the Council with the Developer's
Agreement for Northland Plat Six, The Developer's Agreement is compleite with the exception of the
amount for parkland dedication and Engineering escrow.
Loso made a motion authorizing the mayor and Clerk to execute the Developers Agreement
for Northland Plat Six with the following contingencies:
1. The final plat engineering issues are satisfied.
2, The parkland fee and engineering· amounts are added to the final agreement.
Discussion: Ehlert reiterated that before the Park Board forwarded a recommendation to the
City Council regarding the Park Land contribution, surrounding communities should have
been contacted as support for their decision.
The motion was seconded by Hosch and passed unanimously.
Northland Plat Six, EnaineerinQ: Schimd stated that he is requesting authorization to hire SEH as I
the Engineer for Northland Plat Six, Previously the City engineered the project and assessed the
cost to each parcel. Bettendorf stated that if SEH is hired, the developer will be required to forward a
letter of credit or escrow to the City an amount equal to the anticipated engineering costs, Loso
made a motion authorizing Avon Lumber One to hire SEH as the Engineer for Northland Five,
reimbursing the City for all associated costs. The motion was seconded by Rassier and
passed unanimously.
Stearns County Enaineer, County Road 121: Steams County Engineer Mitch Anderson appeared
before the Council to discuss the progress of the improvements to County Road 121. Anderson
stated that several complaints have been received regarding the condition of CR 121 during
construction. Anderson stated that when a road is under construction residents must expect delays
and uneven road beds. County Road 121 is posted as closed, local traffic only. In an effort to make
the road passable, the contract blades the road each morning and evening,
Assistant Engineer Jodi Teich stated that the contractor will not be between noon on July 3,2002
and July 8 as per the contract. Teich stated that residents should expect the road to be in poor
condition, as the more the road is traveled the more uneven the road bed becomes. Ehlert
questioned if a provision could be made for the road to be bladed on July 5. The 4th of July
celebration brings thousands of visitors to St. Joseph each year and if we are aware of the situation
ahead of time a provision should be made to remedy a potential hazard. Teich stated that she would
contact the contractor to see if the road could be bladed on July 5, 2002,
CITY ENGINEER REPORTS
Northland Plat Six, Feasibilitv Report: Bettendorf stated that since Northland Plat Six will be
completed as a private project the Council does not need to accept the feo.asibility report.
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June 27; 2002
Page 9'of 15
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Southeast Utilitv Extension: Bettendorf requested the Council consider the improvements for the
Southeast Utility Extension, If the project is to be constructed in 2002 the Council must order th~
improvements at this time, Ehlert questioned if the property owners have agreed to the terms ofithe
assessment deferral, and if a compromise has been reached with the owner of the Super 8 Motel.
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Weyrens stated the agreement has been forwarded to the affected property owners with some 1
revisions, As far as the Super 8 Motel a compromise has not been reached, Loso made a motion
to adopt Resolution 2002 . _ Ordering the SE Utility Improvements. The motion was
seconded by Hosch and passed unanimously.
Resolution 2002 -
Resolution Ordering Improvement and Preparation 'of Plans
SE Utility Extension
WHEREAS, a resolution of the City Council adopted the 24th day of April 2002, fixed a date for a
council hearing on the proposed improvement of the annexation petition of property north of Lyml
Road and south of Minnesota Street (County Road 134) between County Road 88 and 17th Aven'ue
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AND WHEREAS, ten days mailed notice and two weeks published notice of the hearing was given,
and the hearing was held thereon the 22,d day of May, 2002, at which all persons desiring to be
heard were given an opportunity to be heard thereon,
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ST, JOSEPH,
MINNESOTA:
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Such improvement is necessary, cost effective, and feasible as detailed in the feasibility
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Such improvement is hereby ordered as proposed in the Council resolution adopteä
June 27, 2002,
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3, SEH is hereby designated as the engineer for this improvement. The engineer sha
prepare plans and specifications for the making of such improvement.
4. The City Council declares its official intent to reimburse itself for the costs of the
improvement from the proceeds of the tax exempt bond,
2002 Street Improvements - Bid Results: Bettendorf stated that bids were opened for the 2002
Street Improvement Project and are as follows:
-+ Redstone Construction Co. Inc
-+ S. R. Weidema, Inc.
-+ R. L. Larson Excavating
-+ Engineers Estimate
$
$
$
$
1,227,559.94
1,197,064.81
1,091,540.64
1,258,000.00
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Bettendorf recommended the Council award the Street 2002 Improvement to the low bidder of R.L.
Larson of St. Cloud, The Council questioned when a final decision must be made regarding thel
installation of sidewalk on 2,d Avenue NW, Bettendorf stated the Council should render a decision
no later than August 1, 2002. ,I
Hosch made a motion to award the 2002 Street Improvement bid to the low bidder, R. L. 1
Larson Excavating in the amount of $ 1,091,540,64. The motion was seconded by Loso and
passed unanimously.
June 27, 2002
Page 10 of 15
Water and Sewer Access fees: Bettendorf and Weyrens presented the City Council with a proposal
to increase the water and sewer access fees ( WAC & SAC) fees from the current $ 1,800 to
$ 4,000, Weyrens stated that the WAC and SAC fees need to be adjusted to cover expenses that
the existing residents have paid through user fees or assessments,
Hosch stated that the City has acknowledged the need to review and adjust the WAC and SAC fees.
Annually the City should be reviewing the fees and adjusting them as needed. Bettendorf stated the
surrounding cities are reviewing their fees, and St. Joseph is not the high,est fee in the area.
Ehlert stated the proposal increases the current fee by 230% and requeslted the Council consider
phasing the increase fee. The Council has not previously discussed this matter and it is his opinion
that the builders should be invited to a meeting to further discuss the proposed charges. Loso stated
that the Council has been discussing the need to increase the fee and feels the proposed fees are
justified. Rassier concurred with Loso and stated that the City needs to make sure that the utility
expenses are paid fairly by all users. Ehlert recommended the Council cúnsider phasing the
increase over a six to twelve month period.
Loso made a motion to increase the water and sewer access CNAC I!!. SAC) fees as
recommended to $ 2,000 per utility per unit. The motion was seconded by Schneider and
passed unanimously.
Weyrens stated that she will prepare a letter to the developers including the justification for the
increase and a summary of surrounding municipality access fees.
Northland Plat Five Chanae Order NO.2. Bettendorf presented the Council change order number
2 for Northland Plat Five, The change order requests authorization to e~1end the date for the final
wear course to September 1, 2002, Bettendorf stated that typically the final wear course is installed
the year after construction to allow the road to settle and make sure any soft spots are repaired. The
final wear course was scheduled to be laid in April or May of 2002.
Loso made a motion to authorize the Mayor to execute change order #2, extending the date
for the final wear course to September 1, 2002 as recommended by the City Engineer. The
motion was seconded by Schneider and passed unanimously.
st. Joseph Business Park Chanae Order NO.1: Bettendorf presented the Council with Change
Order NO.1 for the St. Joseph Business Park. The change order increases the pipe size from a six
inch water main to an eight inch water main and adds an erosion control blanket. Ehlert made a
motion authorizing the Mayor to execute Change Order No.1 as described above based on
the recommendation of the City Engineer. The motion was seconde,d by Hosch and passed
unanimously.
Diamond Enerav Special Use and Variance Reauest: Realtor Jerry Hettwerappeared before the
Council on behalf of Diamond Energy, Hettwer stated Diamond Engery is currently located at 819-
19th Avenue NE and is in the process of relocating the business to 601 West County Road 75.
Diamond Energy is a sheet rock company that is looking for a larger faciliity to store supplies and
provide office space.
The property is currently zoned B-2 Highway 75. Hettwer clarified that when the existing building at
601 West County Road 75 was constructed the property was zoned Industrial. When the building
constructed in 1995 it met all the requirements of the zoning district including securing a special use
permit. The property was zoned General Business in 1997 and again rezoned in 1999 as Highway
Business. Hettwer stated that the proposed use for Diamond Energy is similar in nature to the
existing use, It is his understanding that a special use permit is needed as minor remodeling,
including the construction of a bathroom and office space, will require the issuance of a building
permit. Therefore, the building must conform to the Ordinance requirements.
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June 27 i 2002
Page 110f 15
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Hettwer presented the following site plan details:
Site Size
2.47 Acres
Building
Construction
Building Size
Steel Frame
80' x 120'; 21,600 square feet !
Comprised of an office space of 2,400 square feet and 19,200
square feet of warehouse area.
Loading Facilities
2 docks
Parking
Area: 11,200 square feet - 22 parking spaces
Signage
Details are not available at this time but all signage will con orm
to the regulations as stated in the St. Joseph Code of
Ordinances
Loso made a motion to accept the following findings of the Planning Commission. The
motion was seconded by Ehlert and passed unanimously.
Resolution of finding
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The request of Diamond Energy for a Special Use Permit came before the Planning Commission at a
public hearing held on June 3, 2002, The purpose of the hearing was to consider issuance of a !
Special Use Permit to allow industrial warehousing in a Highway 75 Business Zoning District.
St. JoseDh Code of 52,22 subdivision 4 (c) allows for industrial and office warehousing.
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The property is legally described as:
That part of Lot 9, AUDITOR'S SUBDIVISION NUMBER 4, a duly recorded plat in Steams County,
Minnesota, which lies east of the west 186.50 feet thereof, north of the northerly right of way line lof
County Road Number 75 (formerly U.S. Trunk Highway Number 52) and west of a line drawn due
south from a point which is 800.00 feet due west of a point on the west line of SCHNEIDER'S !
ADDITION, a duly recorded plat in said county and state, distant 800,00 feet northerly of the II
intersection of said west line with said northerly right of way line of County Road Number 75.
Together with an easement for ingress and egress over that part of the south half of the northea$t
quarter of Section 9, Township 124, Range 29, Stearns County, Minnesota, which lies within 33 feet
on each side of the following described line: I
Commencing at a point on the west line of SCHNEIDER'S ADDITION, a duly recorded plat in I
Stearns County, Minnesota, distant 800,00 feet northerly of the intersection of said west line with,the
northerly right of way line of County Road Number 75 (formerly U.S. Trunk highway Number 52);1
thence due west for 800.00 feet; thence due south to a line drawn parallel with and 33.00 feet I
northerly of the north line of Lot 9, AUDITOR'S SUBDIVISION NUMBER 4, a duly recorded plat in
said county and state, this being the point of beginning of the line to be described; thence westeriy
along said parallel line to its intersection with the west line of the east half of said Section 9; thence
deflect to the left along a tangential curve, having a radius of 80.00 feet and a central angle of 53'
00" for 74.00 feet; thence southwesterly on tangent to said curve in the northerly right of way line:of
said County Road Number 75 and there terminating, I
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Notice of this matter was duly served and published.
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June 27, 2002
Page 12 of 15
In consideration of the information presented to the Planning Commission and its application to the
Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission makes the
following findings:
The proposed use is consistent with the standards for granting a Special Use Permit, as
stated in St. Joseph Code of Ordinances No. 52.9
Therefore, based on the above findings, the Planning Commission makes the following
recommendation:
Approval of the Special Use Permit to allow Industrial warehousing ,a Highway Business
Zoning District.
RESOLUTION OF FINDING
The request of Diamond Energy for a Variance on the exterior requirements came before the
Planning Commission at a public hearing held on June 3, 2002. The purpose of the hearing was to
consider issuance of a Variance to relieve the 50% exterior requirements as stated in St. Joseph
Code of Ordinance 53,22 ,
St. Joseph Ordinance 53.22. Subdivision 7 (c) states that acceptablE' exterior building
materials shall include brick, stone, tip-up concrete panel, decorathl'e concrete block or glass.
Wood siding, plastic, and other combustible material not listed as a'cceptable shall not be
used for building exteriors. Architecturally approved steel is acceptable provided that at
least 50% of the building (excluding windows and doors) consist of brick, stone, tip-up
concrete panel and I or decorative concrete block. Any building undergoing renovation,
repair, or an addition, so as to require the issuance of a building permit, shall be brought into
conformance with this subsection at the time of repairs, renovation" or addition are
completed.
The property is legally described as follows:
That part of Lot g, AUDITOR'S SUBDIVISION NUMBER 4, a duly recordlad plat in Steams County,
Minnesota, which lies east of the west 186,50 feet thereof, north of the northerly right of way line of
County Road Number 75 (formerly U.S, Trunk Highway Number 52) and west of a line drawn due
south from a point which is 800.00 feet due west of a point on the west line of SCHNEIDER'S
ADDITION, a duly recorded plat in said county and state, distant 800.00 feet northerly of the
intersection of said west line with said northerly right of way line of Coun~f Road Number 75.
Together with an easement for ingress and egress over that part of the south half of the northeast
quarter of Section 9, Township 124, Range 29, Steams County, Minnesota, which lies within 33 feet
on each side of the following described line:
Commencing at a point on the west line of SCHNEIDER'S ADDITION, a duly recorded plat in
Stearns County, Minnesota, distant 800.00 feet northerly of the intersection of said west line with the
northerly right of way line of County Road Number 75 (formerly U.S. Trunk highway Number 52);
thence due west for 800,00 feet; thence due south to a line drawn parallell with and 33.00 feet
northerly of the north line of Lot 9, AUDITOR'S SUBDIVISION NUMBER 4, a duly recorded plat in
said county and state, this being the point of beginning of the line to be dl9Scribed; thence westerty
along said parallel line to its intersection with the west line of the east half of said Section 9; thence
deflect to the left along a tangential curve, having a radius of 80.00 feet and a central angle of 53'
00" for 74,00 feet; thence southwesterly on tangent to said curve in the northerty right of way line of
said County Road Number 75 and there terminating.
The request has been submitted by Diamond Properties Partnership, 819 19th Avenue NE, St.
Joseph MN 56374,
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June 27j 2002
Page 13 of 15
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Notice of this matter was duly served and published,
In consideration of the information presented to the Planning Commission and its application to t, e
Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission make$ the
following findings: " I
St. Joseph Code of Ordinances 52.8 subd (a) states: ''That there are exceptional or extraordinary
circumstances or conditions applying to the property in question as to the intended use of the 1
property that do not apply generally to other properties in the same zoning district. The exceptional
or extraordinary circumstances must not be the result of actions taken by the petitioner. !
FINDING: This building was constructed under a different zoning classification and requiring
the property owner at this time to modify the exterior would create a financial hardship, !
Additionally, the remodeling to the building is minimal and all interior construction. 1
St. Joseph Code of Ordinances 52.8 subd. (b): "states that the literal interpretation of the provisions
of this Ordinance would deprive the petitioner of rights commonly enjoyed by other properties in the
same district under the terms of this Ordinance", ' I
FINDING: The proposed use is consistent with the standard. ,
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St. Joseph Code of Ordinances 52.8 subd.(c): .. states that granting the variance requested will not
confer on the applicant any special privilege that is denied by this Ordinance to other lands in the
same districf'. ¡
FINDING: The proposed use is consistent with the standard.
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st. Joseph Code of Ordinances 52,8 subd, (d) "states that the proposed variance will not impair,an
adequate supply of light and air to adjacent property, or diminish or impair established property !
values within the surrounding area, or in any other respect impair the public health, safety or welfare
of the residents of the City", I
FINDING: The proposed use is consistent with the standard.
St. Joseph Code of Ordinances 52.8 subd. (e) "states that the condition or situation of a specific!
piece of property, or the intended use of said property, for which the variance was sought, is no~ of
so general or recurrent a nature as to make reasonably practicable the formulation of a general
regulation for such conditions or a situation",
FINDING: The proposed use ;s consistent with the standard.
Therefore, based on the above findings the Planning Commission makes the following
recommendation:
Approval of the Variance request relieving the exterior requirements. Approval is
recommended with the following contingency:
The property owner will plant trees on the west side of the building.
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Cable Commission, Eauiment and Compensation Reauest: Weyrens stated the Cable Commission
is requesting the Council establish a monthly salary for the Cable Commissioners. The Cable !
Commission understands the limited funding ability of the City, Therefore, the Commission is !
requesting the Council consider increasing the franchise fees from three percent to four or five !
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percent. In addition, the Cable Commission is requesting the Council implement the taxing authority
of the City and charge a monthly equipment fee. The Council stated the matters presented at this
meeting are budgetary in nature and should be considered during the bUd,get. 1
Before making a decision regarding the implementation of the equipment fee, the Council requested
additional information as to the equipment needed, including a prioritized list and anticipated I
revenue.
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June 27, 2002
Page 14 of 15
Residential Road Restrictions: Public Works Director Dick Taufen presented the Council with a
proposal to mark the residential streets between 1st Avenue SE and 11th Avenue SE with fIVe ton I
axle weight restrictions. The marking is necessary to keep the construction traffic from flowing
through residential neighborhoods. Construction traffic will be required to use 12th Avenue and
Baker Street East. Loso made a motion to mark the residential streets between 1st Avenue SE
and 11th Avenue SE with five ton axle weight restrictions. The motion was seconded by
Ehlert and passed unanimously.
Sewer Connection in Accessorv Buildinas: Taufen reported that he has been questioned if the City
would allow a sanitary sewer connection in an accessory building. Taufen stated that he has some
reservations allowing sewer connections in accessory buildings as pollutants could flow into the
sanitary sewer system, In checking with other municipalities, sewer connections are allowed in
accessory buildings provided they meet the requirements of the State Plumbing and Mechanical
Code,
Hosch made a motion to allow sanitary sewer connections in accessory buildings provided
the property owners abide by the requirements as stated in the State Plumbing Code. The
motion was seconded by Ehlert and passed unanimously.
MAYOR REPORTS
Attended Meetinas: Hosch reported that he attended the area City and School district meeting as
well as the League of Minnesota Cities annual conference,
COUNCIL REPORTS
SCHNEIDER - No Report
RASSIER - No Report
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EHLERT
Wobeaon Trail: Ehlert reported that the Wobegon Committee has received verification from MNDOT
that the City of St. Joseph will be allowed to purchase the excess ROW for the Wobegon Welcoming
Center for approximately $ 7,000.00. The Wobegon Committee will be meeting on Monday, July 22,
2002 to review the proposed layout of the Welcoming Center.
LOSO - No report
ADMINISTRATOR REPORTS
Bob Velline, Reauest to Extend Special Use Permit: Weyrens reported that Bob Velline has
requested a 120 day extension to complete the remodeling and occupancy of the building he
purchased at 21 - 1 st Avenue NW, The special use permit required that the upper level could not be
rented past June 1, 2002 unless the main level was occupied by a business. Velline stated that the
remodeling wc¡s more extensive than he anticipated and requested an additional 120 days.
Schneider made a motion to extend the finish requirements of the Special Use Permit issued
to Bob Velline for the property located at 21 - 1st Avenue NW for a period of 120 days as
requested, The motion was seconded by Loso and passed unanimousfy.
SE Utility Extension Deferred Assessment Aareements: Weyrens pres'ented the Council with the
proposed assessment deferral agreement for K & L Property and Anthony Lahr for the proposed SE
Utility Extension. The agreement allows the assessment to be deferred for a period of up to three
years or transfer of property. Ehlert made a motion to authorize the Mayor and Administrator I
Clerk to execute the above mentioned agreements as presented; selconded by Hosch and
passed unanimously.
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June 27: 2002
Page 15 of 15
National Finance Conference: Weyrens requested authorization to attend a two day seminar on:
Infrastructure Planning as part of the National Finance Officers Conference. The conference will be
held in Minneapolis August 27 and August 28, 2002, The cost of the conference is $ 495.00, Loso
made a motion authorizing the expenditure of $ 495 allowing Weyrens to attend a two day
conference on Infrastructure Planning. The motion was seconded by Loso and passed 1
unanimously.
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Adiourn: Schneider made a motion to adjourn at 10:20 PM; seconded by Loso and passed
unanimously.
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