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HomeMy WebLinkAbout06-08-19811592 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL Agenda Item A-1 E-1 CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 2 - June 8, 1981 President Postier called the meeting to order at 2:15 P.M. the follow- ing'members being present: President Postier, Aldermen Allen, Bluhm, Powers, Strain. 'Absent: Aldermen Duffy and Solinger. Alderman Solinger was absent because of a death in the family. Allen moved, Bluhm second to adopt Resolution No. 329-81 approving the West Center Street Parking Ramp ( Normandale indicated their approval by letter dated May 14, 1981.) President Postier commented that we should encourage use of the ramp. The Kahler Hotel'Ramp is full at this time. They also charge $50.00 for monthly parking. Our rate as.proposed would be $40.00. Mr. Kuenvold, City Administrator stated that emphasis should be on short term parking and that the rate could be amended by the Council if the need arises. Having no more discussion, vote.was'taken Ayes (5). Nays (0).. Motion carried. The $50.00 monthly rate was included in the Operating Policy as adopted. Bluhm moved, Strain second to adopt Resolution No. 330-81 approving the Pa,rking.and Pedestrian Concourse Agreement with Normandale Propertl Inc. Mr. Terry Hall, Assistant City Attorney,stated that we would havf 50,short term parking spaces available and 40 long term.spaces. Ayes (5), Nays (0). Motion carried. Powers moved, Bluhm second to adopt Resolution No. 331-81 approving and authorizing execution of the Assessment Agreement with Normandale Properties, Inc. The .City Clerk and Mayor are authorized to sign said agreement. Ayes (5), Nays (0). Motion carried. ')train moved, Bluhm second to adopt Resolution No. 332-81 approving of the Assessment Agreement with the Bank ( Northwestern National Bank of Rochester on the new Drive -In. The Mayor and City Clerk are author- ized to sign said documents. Ayes (5), Nays (0). Motion carried. Allen moved, Strain second to adopt Resolution No. 333-81 approving entering into a Phase II Agreement, Land Sale and Development Contract dated February 10, 1981 with Normandale Properties, Inc. and North- western National Bank of Rochester and that Northwestern Naional Bank of Rochester provide the City with satisfactory evidence of its financial abilities to perform its obligations pursuant to the Phase Ii Contract and provide the City such evidence in the forms as re- quired. Ayes (5), Nays (0). Motion carried. Powers moved, Bluhm second to adopt Resolution No. 334-81 approving a Phase II Agreement, Land Sale and Development Contract dated February 10, 1981 with Normandale Properties, Inc'. and Northwestern National Bank of Rochester.The Phase II Agreement required that Normandale Properties Inc. provide the City with satisfactory evidence of 1. Its .financial abilities to perform its obligations pursuant to Phase II Contract and 2. An executed Kahler Agreement and Tunnel Agreement as defined in the Phase II agreement and 3. Executed lease agreement with Northwestern National Bank of Rochester. The es , I P_� RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL VM3 CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 2 - June 8. 1981 Agenda ` Item E-1 Normandale Properties Inc. has provided the City such eveidence in the forms required. Ayes (5), Nays (0). Motion carried. Powers moved, Strain second to adopt Resolution No. 335-81 approving a Phase II Agreement,Land Sale and Development Contract dated Feb. 10, 1981 with Normandale Properties, Inc. and Northwestern National Bank and directing the City Finance Director to return the good faith deposit of said Northwestern National Bank to the aforementioned bank. Ayes (5), Nays (0). Motion carried. iscussion was held on the design of the ramp. Mr. Stevan Kvenvold, ity .Administrator stated that,,he was informed by Mr. Richard Ehrick, ttorney for the Pappas Brothers that they would be amenable to ccepting a reduction of.$20,000.00 in the amount of money or them if the Council should desire to choose the course of action o accept their offer to a compromise in which would result 'a esign of a ramp that would not fortify on the Western portion with evelopment over it. lderman Allen stated that he thinks that we should go back to the ast and West Ramp design. Alderman Strain reminded Alderman Allen that we,would have to go back and redesign the entire ramp, and this ould be costly. Alderman Allen stated that it might be cheaper in long run. Stevan. Kvenvold then went over various de'§igns and the costs for these. We have a summary of five different ramps Design ,B, and C are L shaped ramps with different alternatives. Ramp A e would continue the current agreement with the Pappas Brothers that is to beef up the ramp and they would contribute the air rights t no extra cost. The estimated cost of that ramp is $3,804,537. his included the Land assembly cost. Ramp B is where we accept the revi.ous offer by the Pappas Brothers - and settle it then,purchase he air rights for $195,000. Of that $195,000. $90,000. would be o purchase property and $30,000.00 toward waterproofing -the western art of the ramp. The total cost including land assembly is $3,724,53 amp C is where the City would continue to beef up'the ramp for future evelopment at a cost of $2,700,000. We would settle with the Pappas in an amount of $245,000.00 that is $50,000. higher then the previous ettlement. The reason that it is higher is if we beef up the ramp, e would need additional space.for elevators, utilities, stairwells and additional. property is needed. Ramp D is the Methodist Ramp that as..previously talked about, in which we could completely separate 0 spaces for Pappas for Michaels Rest. Main entrance and exit would e in Center Street. Cost including Land Assembly is $4,636,352. amp E ( Straight Ramp ) Cost is not worked out as clearly but basical' hat this involves is this.is a public ramp except for an entrance on roadway for.Michaels Res-taurant. Remaining part of the ramp is public otal cost is $3,919,352.00. Cost to Michaels would be $500,000. r. Stevan Kvenvold, City Administrator. stated that the staff re- ommends that the Council seriously consider the compromise with the appal. Brothers. The projgct could proceed on schedule; The actual ost to the City would remain about the same; The parking function f the ramp is more desirable without the additional columns needed for einforcement. 1594 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 2 - June 8, 1981 Agenda Item E-1 Mr. Richard Ehrick, Attorney for Pappas: Brothers stated that if the offer by the Pappas Brothers would be accepted it would 1. Eliminate the costs which the City would incur in preparing the ramp for support of the overhead construction site $185,000-$200,000.; 2. Improve the parking situation of the parking shelves on Parcel B which in now miniminally acceptable; 3. Net the City the equivalent of $90,000. for the Operation building site - a price which they feel is in excess of the value. 4. Transfer a substantial portion of the cost of waterproofing the ramp,to the Pappas Investment Company, when, in fact this is and should be a part of the City's cost of constructin( the ramp. 5. Require an out-of-pocket expenditure by the City of only $75,000.00. Alderman Powers stated that.the Council originally co- operated with Pappas and went along with the design acceptable to them. Mr. Ehrick stated that a mistake had been made, but the studies were not complete at that time. After these studies were completed, it indicated that development was unlikely in the beefed up part of the ramp. Ron Manning Director of Downtown Development stated that Water- proofing would be good.to do now as later when cost rise. Dave lbersman of Downtown Development stated that waterproofing could be done later, and use the money from tax increment.. alderman Allen stated that .he would like to see a -free standing.ramp ie stated that he went along with the L shaped.ramp, but this keeps oming back. He backs the (E) option - straight ramp.). Mr. Ehrick tated that a ramp of this nature would be a breech of faith with the 'appas. Alderman Powers stated.he wondered just who this ramp was ,eing built for. Mac Hamilton of Realty Management Service stated .hat he was in favor of the East-West Ramp, but agrees that plan B as known cost. Alderman Bluhm stated that he would hate to see this tart all over again and favored Plan B. President Postier suggested o the Council that they go with Plan B, and give the Rodarte property ,90,000.00 and from there on other expenses involved with that particu tem will thru conversation; negoti.ation,or whatever you want to call t between the developer , the 'Bank,and Pappas Brothers be picked up ,etween those -three. If this is acceptable to the Council. ,fter a brief consultation period by the three involved parties of the ank, Pappas Brothers and the Developer, Dave Albersman of the levelopment District spoke on the results. We have come to an agreemei n $195,000. - The Pappas have agreed to accept the $90,000. Rodarte roperty..Pappas will continue to commit an additional $10,000.00 for he design fees. There will be $65,000.00 left 'of the City. The ity will do the Water proofing at a later date when development appens underneath. The money would come from Tax Increment.; and the emaining $65,000.00 would be divided by Rauenhorst, and the North- 'estern Bank, Rochester. The Council agreed with the above compromise nd no further discussion was held. Strain moved, Bluhm second to dopt Resolution No. 336-81 approving the Phase II Agreement, Land ale and Development Contract dated February 10, 1981 with Normandale roperti.es and Northwestern National Bank of Rochester . The Phase 'I Agreement as amended requires the City to have received a guarantee rom Normandale Properties guaranteeing the maximum construction costs ar a [_� f the Public Parking Ramp Project as defined in.the Phase II Agreemen RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL5� CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 2 - June 8, 1981 Agenda Item E-1 The cost included as stated previously in:the minutes are as follows: $195,000, total land costs. These are divided as follows: The Pappas Brothers accept the Rodarte Property $90,000.00. The Pappas will commit an additional $10,000.00 to the City for design fees. $65,000— will be left for the City. The City will commit to the Waterproofing.of the.ramp upon development in an amount of $30,000. the Rauenhorst and Northwestern National Bank will divide the 'remaining $65,000.00. This is using the Ramp B Design. Ayes (5), Nays (0). Motion carried. Bluhm moved, Allen second to adopt Resolution No. 33.7-81 approving that part of the Phase.II Agreement which requires the City.to furnish the parties .to the,Phase II Agreement copies of an executed conveyance from Pappas Investment Co. to the City for property required for con- struction of a West..Center Street Public Parking Ramp and the City has not been..able to acquire the requisite interest in land from Pappa Investment Co. and the. timely acquisition of this property is necessar for the City to fulfill its obligations, the City Attorney is hereby authorized and directed to take all necessary steps on behalf of the City of Rochester as set out in the attached memorandum of agreement to acquire the interests in the Pappas Investment Co. land required by the West Center Street Parking Ramp. Ayes (5), Nays (0). Motion carried. :Powers moved, Bluhm second to adopt Resolution No. 338-81 approving the projects as stated in the Phase II Agreement, Land Sale and Development Contract dated February 10, 1981 is financially feasible s defined in Section II Paragraph T of The Phase II Agreement and uthorizes.the actual start of the closing transaction pursuant to said Phase II Agreement. Ayes (5), Nays (0). Motion carried. luhm moved, Strain second to adopt Resolution No. 339-81 stating that ormanda,le has.satisf.ied the requirements of IV (A) (1) of the Phase I Agreement Ayes (5), Nays (0). Motion carried. Strain moved, Allen.second to adopt Resolution No. 340-81 authorizing he City Attorney to exercise the option to purchase the said parcel f real estate described in the Exhibit A for the Office Building roject as.defined.in the said Phase -II and for the purchase of: roperty with William W. Dodge , Florence L. Pribyl and the First ational Bank of Rochester as Trustee for the purchase of said roperty. Ayes (5), Nays (0). Motion carried. owers moved, Bluhm second to adopt Resolution No. 341-81 - The ity in fulfillment of its obligations .to Normandale Properties, Inc. and to Northwestern National Bank of Rochester convey the properties s described in.the attached Exhibit "A" to Normandale Properties, nc., and convey the property as described in the attached "Exhibit 'B" to Northwestern National Bank of Rochester. The Mayor and City lerk are authorized to.execute and deliver the following documents n behalf of the City of Rochester subject to the approval of the ity Attorney: 1. Limited.Warranty Deed to Normandale Properties,Inc. or "A" Property. , 1596 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 2 - June 8, 1981 Agenda Item E-1' 2. Quit Claim Deed to Normc-n-dale Properties, Inc. for East half of vacated First Avenue S. W. 3: Quit Claim Deed to Kahler Corporation for,.West half of vacated First Avenue S. W. 4. Assignment of existing Drive -In Bank lease to Normandale Propert.ies, Inc. 5. Agreement that the Phase II Agreement Obligations of all the parties survive the real estate closing. 6. Limited Warranty Deed to Northwestern National ,Bank of Rochester for "B" Property 7. Option Agreement with Northwest National Bank of Rochester for future skyways. 8. Slaes Contract with Northwestern National Bank of Rochester for its existing drive- in leasehold improvements. 9.. Indemnification Agreement in favor of the Title Insurance Company of Minnesota for unrecorded mechanic's liens on "B".properties. and that the City Attorney be directed and authorized to 1. commence a Quiet Title Action on the "B" property conveyed to the Northwestern National Bank of Rochester ; 2. Execute an affidavit to the affect that.no leases or contracts for deeds have been entered into by the City on the "B" Property 3. Legal Opinion as to the power and authority of the City; and 4. a letter of instruct to the escrow agent with the terms of recording and delivery. Ayes (5), Nays (0). Motion carried. E-2 Bluhm moved, Powers second to instruct the Mayor and City Clerk to execute the contracts for the Year VII Community Development Block Grant in the amount of $707,000. - The following is the breakdown of the projects: 1. Site Acquisition - Downtown Redevelopment Purposes $204,000.; 2. Architectural Barrier Removal $129,000.; 3, Housing Re- habilitation $79,000.; 4. Port -Group Home Correction Center $48,000. 5. Thomas House $8,000.6.Golden Hills Improvements $167,000. 7. Admin- istration $25,000. 8. Contingency $47,000. Ayes (5 ), Nays (0). Motioi carried. E-3 Allen moved, Strain second to.approve the following licenses and bonds Judith M. Laskewitz, Austin, Mn requests approval of an auctioneer license. Bond in the amount of $500.00 has been submitted. Application for An auction permit for June 21, 1981 from Leo Majerus of 934 18th Street S. E.This will be a coin auction at the Holiday Inn South. A bond was submitted in the amount of.$1,000.00. Ayes (5), Nays (0). Motion carried. E-4 Powers moved,'Bluhm second to approve the request from Brenda L. Whittaker, Head Children's Librarian for one (1) years leave of absence from 8-15-81 - 8-15-82. Ayes (5), Nays (0). Motion carried. E-5 Bluhm moved, Strain second to adopt Resolution No. 342-81 authorizing the execution of -an agreement with Villa Meadows Subdivision ( Robert Dashow and Thomas C. Dashow and Leon Joyce Construction Company for Basic Construction in Villa Meadows Subdivision lying south of 17th Street S. E. - Phase I. Ayes (5), Nays (0). Motion carried. G-1 Allen moved, Powers second to remove the item - Petition to vacate a portion of First Avenue S. W. for the 'Rauenhorst Downtown Development Project from the table. Ayes (5), Nays (0). Motion carried. Strain ,rn ons moved, Allen second to adopt Resolution No. 343-81 approving the vacatilon. RECORD OF OFFICIAL PROCEEDINGS OF THE. COMMON COUNCIL 1,55' CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 2 - June 8, 1981 Agenda Item G-1 {yes (5), Nays (0). Motion carried.. ving no further business, Allen moved , Bluhm second to adjourn e meeting. Ayes (5), Nays (0). Motion carried. City Clerk I