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HomeMy WebLinkAbout12-08-1980RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 25 - December 8, 1980 Agenda Item A-1 President Pro=Tem Larson called the meeting to order at 7:30 P.M., the following members being present: President Pro-Tem Larson, Aldermen Allen, Duffy, Powers, Solinger and Strain. Absent: President Postier. President Postier was absent due to.illness. E-1 President Pro-Tem Larson stated that although thi.sA tem­on the agenda known as-1-1 Phase IT Agreement for Development Control Projec as not a hearing, he had received a petition with 15 - 20 names on it, and thus he will conduct this in the same .manner of a public hearing. He stated that the Council has had input from the City staff and the Downtown Development District Advisory Board not to enter into the Phase II agreement which requires the closing of First Avenue West In absence of President Postier, President Pro-Tem Larson read the following letter from President Postier. To The Council Members: dated December 5, 1980. First of all, I apologize for not being able to attend Monday nights very important meeting, but will be confined ti t. Mary's Hospital that evening. I know that this letter is not in any way to be taken as a vote on the actions involving the Development Control Project, but I think that it is only fair to the Council, Staff, and the Citizens of Rochester to let them know where I stand on any and all issues as their Council President. As you all know, some onths ago,I in essence kept this project alive to give it its last chance to show its financial feasibility for the City. I abstained on 3 to 3 tie vote of the Council, where my vote could have completely killed the project. This was a vote on "intent" to. close First Avenue West, requiring only a majority vote "4 to 3 count". We are now down o the main issue of being asked to sign a Phase II contract. This is he agreement that states this Council will close First Avenue West at some time in the future. This -.I think is actually illegal, but beside! that, to close First Avenue West requires 5-7 vote of the Council and don't believe the votes are there to close it, including mine. Why o through all the money for more studies, complete use of staff time, erhaps leaving other developers, and surely the property owners hangir n suspense, when the issue will be decided in the closing of First venue. I believe that at least three councilmen will stand by their 'no close" votes--of-,the past which will be sufficient to stop the projE hen this vote is brought up. If the vote tonight is to sign the PhasE I agreement only and not on First'Avenue closure, it could possibly nd in a tie vote. If this were to happen, I , in the future would Vol against the signing of the Phase II agreement. I am long past the timE waiting the good financial figures for the City. Anyhow good luck to ou on your final decision. R.J. Postier, Council President. ishing to be heard was Jack Piper..:of the Development Control Project. e stated they are serious about the project . Roc.hester has a need nd the question this evening is whether this will proceed or not. e urged the Council to approve the Phase II and then introduced Harold ngus, President of Development Control. Mr. Angus stated that a ommunity such as Rochester is worthy of"a project the size they are roposing. He stated that many other cities closed a street to keep t, owntown going. He stated that the Project they developed in Green Bay RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL 147 Y CITY OF ROCHESTER, MINNESOTA Agenda Item E-1 Adjourned Meeting No. 25 - December 8, 1980 did not become a success with the street open. Eventually Green Bay allowed -the street to be closed. He urged the Council .to approve this project. Alderman Solinger asked Mr. Angus what the occupancy rate of the Green Bay Project. He stated that in 1978 they had 90% occupancy and had 93% occupancy with the street open. Wishing to be heard was Carl Laumann of 1728 8th St. S. W. and urged the Council to support the project. He stated: hat this would be a benefit for down- town. Closing ;:he avenue would not inconvenience anyone, and the Minnesota Pollution Control Agency may -relax the standards on air pollution downtown by the time this is built anyway. He stated that downtown does not provide anything for people -to do while in our community. We would be losing millions of dollars of trade if some project is not constructed. He stated that no development project is going to be easy, and ended with the theme " Lets move forward". Wishing to be heard was Dennis Peterson of Rochester, Minnesota. He stated that in the days of Urban Renewal of Rochester he heard the comments " Let Private Enterprise Do It " and they have not done much yet. He also reminded the Council of the numerous studies stating that ae had a traffic problem, and numerous studies about street patterns. He cannot understand why anyone would not vote for this project. He also presented a petition with approximately 2,000. names on it in favor of the project. He stated that labor and management, everyone is all together in this project. He asked if anyone in the audience Mould stand if they were in favor of the project. Approx. 300 citizens Stood. He again urged the Council to approve the project. Wishing to )e heard was Evelyn Engquest of 2228 Viking Drive and urged the Counci to approve the project. She stated that she wanted to be proud of Rochester. Wishing -to be heard was Michael Klampe of 1318 19th St. N. 1. He is opposed to closing the avenue and the development project. ie stated that he was active in Urban Renewal, but since the traffic studies have come out and the general pollution problem in downtown, ie cannot be in favor of this project. He stated that other projects ire waiting for this vote tonight and urges full development in tochester, and not just centered in one spot....He stated that the ;itizens i'n the audience probably never attended one meeting of the )owntown Advisory Board or traffic committees. He stated that committ ?es. have worked long hours to come up with a recommendation and voted )-2 voting this down. Wishing to -be heard was Chris Batchelder of 415 16th Avenue S. W. and urged the Council to approve this project. He >tated many of the business opposing Urban Renewal have since moved From downtown: He says by letting downtown deteriorate and dirty )ook..stores.,and smutty stores as well.as allowing vacant stores, the tax base is being shifted to the homeowners. Wishing to be heard was loan Sass of the Downtown Advisory Board and echoed Mr. Batchelder's ,equest. She urged the City to go forward. Maggie Brimijoin of 1214 ith Street S. W., President of the League of Women Noters urged the traffic problem to be solved first. She stated lets not put the cart ►efore the horse. Paul Hanson'of 2402 9th Avenue N. W. and is a member ►f the Development District Advisory Board made a motion not to grant t Phase II agreement. He stated that the.City Attorney made the state - lent that closing the street might be illegal, but thinks that if. this I RECORD OF OFFICIAL PROCEEDINGS OF THE. COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 25 - December 8, 1980 Agenda Item E-1 was resolved:then he would be for the project. He stated that a lot of people contacted him regarding hi.s motion in opposition and were in favor of the street closing. He stated that if this was resolved he would change his position. Wishing to be heard was Richard Ehrick of 1504 13th Avenue N. E. and is a.member of the Downtown Development District Advisory Board. He stated that the Board and the City staff has taken a lot of citicism on this subject. He stated that our present traffic system is sufficient, in fact has gone down. He stated thata new traffic system would cost from 5 to 10 million dollars. He is in favor. of the project, but now to close the Avenue as it does not justify the millions -of dollars that would have to be spent rerouting traffic. By closing this avenue, the developer would gain 12;500 square feet of first floor, and he just don-'t think that this amount of space is so critical that the city would.spend millions on a traffic pattern. Wishing to be heard was Bea Sehl of 2580 Heather Valley Road in Rochester, Minnesota and supports Mr. Ehrick's comments. Marvis Hinkle of 2228 Viking Drive supports the theory of positive thinking. She thinks other one-way. pairs could be considered then the present plan, and the use of public transportation by the people, she is sure something could be worked out to solve the traffic problems. Dennis Peterson, Rochester Minnesota wished to be heard again., and stated to the Council that no matter what happens, please no more studies. It was at this time that President Pro-Tem Larson read the letter as written by President Postier ( stated is full content at the beginning of these minutes ). President Pro=Tem Larson at this time asked for Council Aiscussion and Alderman Duffy shared a letter that was written in' the Rochester Post Bulletin -about the shabby downtown in this world famous city. He stated that the vote of the Downtown Development District was a disappointment and the project was neither illegal' or immoral ,He stated that it is time to overcome the obsticles. We are behind other cities bf.our size that -:have spectaculardowntowns. He stated that streets have been closed before. He stated that if -downtown is flourshing,then we should have a traffic problem. He stated that he thinks that this is the best projec in years and thinks the Council should go forward instead of back. Mayor Hazama stated that If all the Boards and Commissions, and the citizens work together we can pull this together,. This project gives downtown excitement. He stated that three goals of his are not accomp- lished at this time. 1. Flood Control, 2. Downtown Development and 3. the Traffic problems. He urged the Council-, to approve this. Alderman Strain stated that "Should we buy anything at any price?". He resents a no vote tonight as`a negative vote for downtown. He is basically for this project, but:not closing the avenue. It does not generate sufficient tax increment dollars to cover the bonds. He stated that if the developer were to take more of a risk and put down money and get profit, this -would be a different matter.'Alderman Strain does not think we can tie up our traffic flow by closing the avenue. Pollution is also a problem in 1982 if our air is not good we can lose federal money which is.64% of our annual budget. He recommends against proceeding with the project in its present form. Alderman Solinger stated that in April of 1980 he made his decision RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCILp CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 25 - December 8, 1980 . Agenda Item E-1 on which way to go with the mall. He stated that he wished the avenue could be bridged. He stated that the statistics from Green Bay on the.93% occupancy for the bridged street was not that bad. In fact it increased in the last couple of years in Green Bay. He would like to see small business to make it and thinks with the street closed, this would harm them. Also supports Alderman Strain's comments. Alderman Powers is in favor of the project. He thinks Air quality is a problem, but.we fought the PCA and EPA before on things like the Landfill and.won, and thinks we can win again with them. He stressed the point of the Council -.sticking together and if so we can win. Alderman Allen stated that he has taken a good hi look at this and was going to vote against the project because of -the air quality problem, but at this time is voting for the project. Alderman (President Pro-Tem) Larson stated that,he was one of the organizers for the trip to.Green Bay and thinks that this project as::proposed for Rochester cannot make it. He stated that the staff did not report this project financially -'in one area and that was property acquisition..His analysis was $3,900,000.00.would be spend in property acquisition alone and before'the project was off the ground this cost would rise. He feels this can succeed with skyways and we must keep the traffic. moving. He doesn't think it is,approp- riate to close the -street. He stated that he is not a negative person. Having no further comments, Duffy moved, Powers second to accept the Phase II Ageeement. Upon Roll call vote, Aldermen Allen, Duffy, Powers vote aye. Ayes (3), Aldermen Solinger, Strain and President Pro-Tem Larson voted nay. Nays (3). Tie vote, motion fails, Duffy moved, Powers second to entend Phase I Agreement for the next 60 days with any alternatives that may be feasible. Upon Roll Call vote, Aldermen Allen, Duffy and Powers vote aye. Ayes- (3), Aldermen Solinger, Strain and President Pro-Tem Larson vote nay. Nays (3). Tie vote fails. Alderman Solinger moved to accept a Phase II Agreement if the developer bridges the avenue. Due to lack of a second the motion died. This project hereby ends with the Phase I which is December 31, 1980. Phase II was not approved. E-2 Dave Albersman of the Downtown Development District stated.that the request to Piave the Council initiate Eminent Domain Proceedings to acquire the Dodge Property which is currently the site of the Northwestern Bank drive-in at the intersection of First Avenue and First Street S. W. was due to the timing of the project. NW Bank ( Rauenhorst Project ) would like -to get started in early April, 1981. There is a 5 week process in street vacation. If the condemnat- is given before the Phase I.I contract is awarded and if the Phase II agreement is not adopted, the condemnation would negate. Wishing to be heard was Bill Dodge of 1616 9th Avenue N. E. of Rochester, Minnesota and questioned whether the property could be used for public use and if this public use would be included in the Rauenhorst Project. He did not think this was legal. He stated that he needs the monthly income from the property as it is and is unable to negotiate any offers from the bank. He is not in favor of the Council initiatir Eminent Domain on his property. Bob Worthington of Rauenhorst i AI Art RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Agenda Item E-2 I 1-• y- VINIVEL, - -u•- • •• Project urged the Council. to approve the Eminent Domain Proceedings on the Dodge Project. He stated they attempted to negotiate this on an open market but they were not successful and thinks this process is the answer. They will indemnify to the City costs for suc expenses so that taxpayers do not have'to pay any of said costs. Wishing to be heard was John Cochran 1%`President of NW Bank, Rochester, Minnesota and agrees with Mr. Worthington, Alderman Powers stated,that he would not like to see this take place before Phase II was signed. Alderman Strain agreed with Powers. Fred Suhler, Jr. City Attorney stated that he does have concerns about initiating eminent domain before Phase II is signed, but sees no..: particular reason why this could not go ahead. He advised tho, that this should -wait. Having no further comments, Allen moved, Strain second to table this until the Phase II Agreement is signed. Ayes (6), Nays (0). Motion carried. Having no further business, Powers moved, Duffy second to adjourn the meeting.Ayes (6), Nays.(0). Motion carried. City Clerk 11