HomeMy WebLinkAbout08-23-196916 1
Record of Official Proceedings of the Common Council
of the City of Rochester, Minn., August 23, 1969
Minutes of a special meeting of the Common Council of the City of Rochester,
Minnesota, held at the Planning & Zoning Office at 717 Third Avenue S. E. on August 23,
1969.
Upon motion by Postier, second by Ludowese, and all present voting in favor,
Alderman Folkert was appointed as President pro tem.
President pro tem Folkert called the meeting to order at 7:30 o'clock P. M., the
following members being present: Folkert, Larson, Ludowese, Postier. DeVries, Cherland
and Strain arrived later.
• The call of the special meeting was read and ordered placed on file, the said
meeting having been called for the purpose of considering a resolution to vacate the
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East-West alley in Block 2, Head & McMahon's Addition and to reconsider the resolution
approving an option agreement for the sale of City property to the Kroger Company and any
other business the said Common Council may deem proper.
Mr. William Leach, representing Kroger Company, was present. He said he had
talked to Mr. Ray Korte just this evening and he said they would not agree to any conditions
on the deed and want to have a minimum of 90 days for the option and would accept
November 30th as the termination date; he said to qualify Kroger's position on the time
limit, they have not had anytung signed yet`, they have no option so they have not been able
to do any work on it such as borings, etc., they just got a legal description now and now
have an idea where the buildings are, under normal conditions the option starts when the
option is
in the hands of the recipient; this is what
Kroger
was talking about when they
asked for
a change of the date to December 31, 1969,
they are
only concerned about a full
90 days; a
Company of any size will not go on someone
else's
property without written
authorization;
he said they needed 90 days, it is the
normal
practice of a company of this
size that
they run everything through a screening committee and
it takes a longer time than
if it were
a smaller organization; as far as the restrictions
are concerned it is pretty
difficult for a company to have them incorporated in the deed they do not always have enough
resources of their own and may have to put a mortgage on it and it is hard to get a
mortgage when there are restrictions on the deed; he said he thought they would go along
with paying the 1971 taxes as long as they are free for the period of one year; he said
they would not pay 10% down, what is normal in a case like this is what people can agree
on, he said he knew of some cases where companies had only paid down $1.00 and he had
never received more than $1,000.00 down on an option.
Alderman Strain inqured if we extended the time could they put down option money
that does not revert back to the buyer, like about 10%. Mr. Swanson said the option money
goes back to the buyer only if there is a defect in the title, it does not go back unless
we can not privide them with a marketable title, if we have a good title and they refuse
to go through with the deal the option money goes to the City.
Mayor Day said (1) we would expect that Kroger would pay the the taxes for 1971 and
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Record of Official Proceedings of the ' Common Council
of the City of Rochester, Minn., August 23, 1969
(2) they may be buying this on a speculation and we are trying to protect ourselves, we want it
to be a Kroger Store'what we intended to sell it for, this is what we are after.
Mr. Leach said he understands that the City wants to make sure Kroger uses the
property not have someone else use it; he said they would use it for themselves for the pictures
,,he showed, it might be that they would have to spin off some, maybe like a small complex that
'would house'a couple of tenants like a dry cleaners, bank charter or something like that; he
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:said he did not know how you could write in a restriction that would be happy to everyone, if
you put restrictions on deeds then everytime you want to do something you have to get permission;
,if you say to Kroger that they pay the 1971 taxes and we will convey a deed without restrictions
-land give 90 days he did not think there was anything to be concerned about; they will commence
,working on it from the time the option is in their possession, they would like to get going as
soon as possible to run their studies.
Mayor Day said the option figure of $500.00 is rather small but this is what was
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;agreed upon and we are not going to go back on that; he said he felt the two points he mentioned
,Iwere important to the deal and he would not like to be Mayor and sell this to Kroger for $500.00
viand during the option period find out that they had sold it to someone else for $500,000.00, we
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!`want to have some protection; he said the Council was not trying to throw a curve, they were just
Iltrying to make it so that everything is right for both of us.
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�_. Mr. Leach said there would be no point in these people buying a piece of property
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land reselling it other than for their own use, they are not in the real estate business, they
are merely trying to build here, they would like to get ten more like it in the southern part of
lithe state.
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Alderman Strain said it was their thinking that they be allowed to make borings
1,on the property and if they did this right away they still had 70 days to October 31st.
Alderman Folkert said they were given verbal permission to go ahead and would have
'!given written permission if they felt it was necessary; he said they had this property up for
sale two times and did not receive any bids and when the offer came to them they felt that even
`though $500.00 was nominal they would recommend that it be accepted it if were given for a short
jperiod, say 90 days; he said now he thought it was an honest opinion that $500.00 is very small
,and it is not reasonable to think of a later date on the small option price here, if we talk
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about more money we could talk about a later option date.
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? Mr. Gerald Swanson, City Attorney, said he had reworded the deed and had called Mr.
�jRay Korte and read it to him but Mr. Korte did not say what he would accept but would not take
lany restrictions on it; he said he thought the Council has the responsibility that when they do
.,sell it that it will be to the best intemst of the City; he said he did not think it was
,speculation if they sold'off to something that we want, however, we are worried about speculation
!of the total property. The only way we can make them pay the 1971 taxes is to have the deed
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:transferred before January 1,'1970 and if we had the termination date as of December 30 we would
1have to change the termination date from a 45 day period to a 30 day period.
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Alderman Postier said the part that bothered him was that at the time it was
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Record of Official Proceedings of the Common Council
of the City of Rochester, Minn., August 23, 1969
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considered the $500.00 was to be put up if we gave them:zpermission to do the test borings
and if the land was not proper we had to return the $500.00; he said he did not feel this was
enough of a down payment for a project this large.
Mr. Swanson suggested that the deed be modified and provide a restriction that
requires a 54,000 sq. ft. building to be used as a buyers mercantile to tie them down to that
use and if they sell off a part it would be done under that restriction, the objective would
be to tie them down to that kind of store, they can not use it for any purpose but Kroger;
the other approach would be to provide that the buyer would in a three year period proceed
to undertake the construction of a 54,000 sq. ft. building.
The City Attorney was instructed to reword the deed to include the following four
items and submit it to the Kroger Company for their consideration: (1) expiration date of the
option to remain as October 31, 1969 (2) transfer of title to occur before January 1, 1970
with the other periods for abstract review and correction provided for in the option adjusted
accordingly (3) the deed to contain a restriction requiring construction within three years
of a 54,000 sq. ft. structure for=use as�:,a Kroger super market and (4) at its request the
Kroger Company will be granted permission to make soil borings at any time.
A resolution vacating the east -west alley in Block 2, Head and McMahones Addition
was read. Upon motion by Larson, second by Ludowese, and all voting in favor, the resolution
was adopted.
Upon motion by Postier, second by Ludowese, and all voting in favor, the meeting.
was adjourned.
City Clerk
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Record of Official Proceedings of the Common Council
of the City of Rochester, Minn., August 23, 1969
Minutes of a regular meeting of the Common Council of the City of Rochester,
Minnesota, held in the Council Chambers in the City Hall, in said City, on September 2, 1969.
President DeVries called the meeting to order at 2:00 o'clock P. M., the following
members being present: President DeVries, Aldermen Cherland, Larson, Ludowese,.Postier, Strain.
Absent: Alderman Folkert.
Upon motion by Ludowese, second by Strain, and all present voting in favor, the
minutes of the meeting of August 18, 1969-were approved.
Mr. Douglas Krueger was present in regard to the change of zoning on the property
at 1321-3rd Avenue N. W. from the R-1 District to the R-3 District; he requested that this
matter be reconsidered, when it was acted on at the last meeting it was considered at the
afternoon meeting, his brother attended the meeting in the evening and so was not heard. A
motion was made by Larson, second by Strain, to reconsider the action taken by the Common
Council on August 4, 1969 which disapproved the recommendation of the Planning & Zoning
Commission and denied the petition for a zone change; all present voted in favor' of the motion
to reconsider. Mr. Krueger showed a plat of the area and said it was an estate and he and
his brother and sister wanted to construct some apartments here. Alderman Ludowese said he
was opposed to this change, he felt for one -.thing there would be more traffic on 3rd Avenue
if more buildings were allowed. The recommendation of the Planning & Zoning Commission
recommending approval of the change of zoning on the properties located west of 3rd Avenue.
N. W. from 14th Street N. W. to the south line of the Crenlo property from the R-1 District
to the R-3 District was again read. A motion was made by Larson, second by Strain, that the
recommendation be accepted and a hearing on the proposed zone change be set for 7:30 o'clock
P. M. on October 6, 1969; all present voted in favor except Alderman Ludowese who voted "nay".
The Mayor's appointment of Vincent A. Huyber of 849 Fourth Ave. S. E. as a member
of the Library Board, term of office shall be for three years and expire the third Saturday
in July, 1972, was read and upon motion by Larson, second by Ludowese, and all present voting
in favor, the appointment was confirmed.
The Mayor's appointment of Dr. Jennings Johnson of 504 15th Street N. W. as a
member of the Library Board, term of office shall be for three years and expire the third
Saturday in July, 1972, was read and upon motion by Postier, second by Strain, and -all present
voting in favor, the appointment was confirmed.
A notice from the League of Minnesota Municipalities of the fall regional meetings
to be held September 8 through October 8 was read. A motion was made by Postier, second by
Ludowese, authorizing the Mayor, members of the Common Council and Department Heads to attend
at city expense; all present voted in favor.
A request from John Marshall Senior High School for permission to set off a rocket
every time the Rockets score at a home football game, beginning September 5, 1969, was read
and upon motion by Postier, second by Larson, their request was approved, the rocket to be
set off under close adult supervision; all present voted in favor.
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Record of Official Proceedings of the Common Council
of the City of Rochester, Minn., August 23, 1969
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The recommendation of the Rochester Airport Commission that the Mayor and City Clerl
be authorized to execute an extension for three years to the Gopher Aviation -City of
Rochester, Aeronautical Advisory Station lease, was read. Upon motion by Strain, second by
Cherland, and all present voting in favor, the recommendation was approved.
The recommendation of the Rochester Airport Commission that the periodic estimate
#2 for FAAP No. 9-21-079-7012 to Arcon Construction Company, Inc. in the amount of
$103,504.50 and to McGhie & Betts, Inc. for engineering services in the amount of $4,581.54
be approved, was read. Upon motion by Postier, second by Cherland, and all present voting
in favor, the recommendation was approved.
The recommendation of the Rochester Airport Commission that periodic estimate #4
for FAAP No. 9-21-079-C911 to Arcon Construction Company, Inc. in the amount of $131,481.68
and to McGhie & Betts; Inc. for engineering services in the amount of $6,439.39 be -approved,
was read. Upon motion by Cherland, second by Postier, and all present voting in favor, the
recommendation was approved.
The recommendation of the Personnel Advisory Committee that the title of the
position of Clerk -Technician at the Sewage Treatment Plant be changed to Office and Laborat
Assistant and that the pay grade be changed to grade 3, was read. Upon motion by Strain,
second by-Postier, and all present voting in favor, the recommendation was approved.
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The recommendation of the Personnel Advisory Committee that Patricia Gustine be
employed as Secretary to the City Attorney at Step G of Grade 3 ($440) effective September 2,
1969, was read. Upon motion by Ludowese, second by Larson, and all present voting in favor, I
the recommendation was approved and the appointment confirmed.
A letter from the State of Minnesota, Department of Highways, submitting copies of
an agreement between the State Highway Department and the City of Rochester covering the
maintenance and operation of four lighting units at the Trunk Highway 52 and State Junior
College entrance in Rochester, was read. Upon motion.by Strain, second by Postier, and all
present voting in favor, the letter.was referred to the Public Works Committee.
A letter from the State of Minnesota, Department of Highways, submitting copies of
an agreement between the State Highway Department and the City of Rochester covering the
maintenance and operation of twenty lightin units at the Trunk Highway 52 and 16th Street I
interchange, was read. Upon motion by Postier, second by Cherland, and all present -voting
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in favor, the same was accepted and the City Attorney was instructed*to prepare a resolution
authorizing execution of the said agreement.
A letter from Agneberg, Sankstone & Assoc. requesting that they be considered to
work on a "Traffic Operational Program for Increasing Capacity and Safety" (TOPICS) on
various streets in the City, was read. Upon motion by Postier, second by Strain, and all j
present voting in favor, the letter was referred to the Public Works Committee.
A resolution adopted by -the Public Utility Board requesting permission to enter
into an agreement with The Kruse Company for lease of land, -was read. Upon motion by
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