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HomeMy WebLinkAbout12-29-1986Agenda Item A-1 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 23 - December 29, 1986 President Postier called the meeting to order, the following members being present: President Postier, Aldermen Allen, Bluhm, Canfield, Hunziker, Solinger and Strain. Absent: None. Canfield moved, Bluhm second to approve the minutes of the December 8, 15 and 22, 1986 meetings. Ayes (7),Nays (0).Motion carried. A Hearing on the Petition to vacate First Street S. W. between First and Second Avenues, a portion of First Avenue and Alleys adjacent to the Zumbro Hotel. Wishing to be heard was Clem Springer, Vice President of the Real Estate Department of the Kahler Hotel - 20 Second Avenue S. W. Mr. Springer presented preliminary plans of the proposed Rochester Plaza Hotel which will be located in the exact location as the presen Zumbro Hotel. The new hotel will contain 197 rooms; 25,000 square feet of retail space; restaurant on the third floor; an entertainment center on the top of the hotel. This will also feature skyways between the Kahler and the Mayo Building and between the hotel and the proposed D-5 development. They will have a cocktail lounge at street level. The proposed hotel will connect with the Mayo Educational building which will be located directly to the west. The Rochester Plaza Hotel will feature an outside elevator and escalators. It will contain a ballroom which can accommodate 250 persons. Alderman Canfield asked Mr. Springer if he knew or had talked with the developers of D-5 project to see how they felt about the concept of escalators coming in off First street taking people to both the first floor and a second floor escalator. Mr. Springer stated that they were in favor of having this access off of First street. Mr. Springer stated that the D-5 developers were present at the meeting where these types of things was discussed. Mr. Springer stated that the Kahler's intent is to provide the medical conference center with a first class building. Mayor Hazama questioned Mr. Springer on the need for additional parking and if they have taken this into consideration when proposini this hotel. Mr. Springer stated that an additional five levels of parking could be built in the Kahler ramp. He also stated that with the skyway system and escalators and a direct elevator going down to the subway, people would have easy traveling to the Center Street Ramp. Mr. Springer explained that the new hotel will only add an additional 30 rooms to the present occupancy. Approximately 50 employees park in the ramp and they could be relocated also if the need for parking spaces became evident. 1 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA °�� Adjourned Meeting No. 23 - December 29, 1986 Agenda Item B-1 Alderman Solinger asked Mr. Springer if the 25,000 sq.ft. of retail space included the subway? Mr. Springer stated that it did but the actual space would depend on how much space the Mayo Educational Building would use if the Mayo Medical Museum was located in the hote' This is a point to be negotiated with at this point. Mr. Springer stated that this project is progressing with rapid speed and will include using all of the Wilder Lot. Mr. Springer stated that since the Mayo Educational Building is being built and the area will be torn up for them, the Hotel project may just as well utilize this time period and get started with their project. He stated that the certification of the vacations for the alleys as needed in this hearing along with the Phase II Agreement need to be done before they can begin. Space will be provided along the street to allow buses and cabs to pick up and deliver people. Mr. Springer stated that they do not have official approval of the Ma] Clinic but they have met with clinic staff and they will continue to work with them on getting the best for everyone. Public Services Department of the City is concerned about the storm sewer located thru the area. Alderman Strain asked if the pipe would have to be lowered and Mr. Roger Plumb, Public Services Dir. stated that it would be in a deeper location. Alderman Strain asked if the developer of the project would have to pay for the project costs. Mr. Springer responded with "Yes". Alderman Solinger asked Mr. Springer if the project known as "West" marked existing subway is a part of this project since it is part of the Kahler Hotel. Mr. Springer stated that it is part of the Kahler Hotel and is not a part.of the new hotel concept. However, since the Mayo Educational Building is being built across the street and will be lower then the present West subway, they would like to include this small part of an improvement at this time. Alderman Strain questioned the use of the skyways by the public. He asked if a time limit would be put on the skyways so that the publ- may not be able to enter or exit after a certain time. Mr. Springer stated that they have not set.an exact time for closing the skyways but that it could be later and if a certain convention or event at the Mayo Civic Center is happening, they could be left open later and they would be policed. Alderman Strain stated that the City would like input as to the hours that the skyways would be open. Alderman Strain was concerned about the City being held liable for any public space. Mr. Springer stated that a hold harmless clause would relieve the City from any liability. Mr. Springer also stated that if the project falls thru the Kahler will dedicate the street back to the City. This statement will be included in the Development Agreement as approved by the City Attorne] 27196 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 23 - December 29, 1986 Agenda Item KIM E-1 Alderman Solinger was still concerned about the utlities being located under the West section and if this is vacated - will there be room for growth? He is concerned not only about the Rochester Public Utilities, but also all other public bodies that may want to locate a line underground. Mr. Springer stated that they will work with Public Services and in the planning stage of this area leave enough space for all potential growth as advised by the Public Services Dept. Having no one else present that wished to be heard, President Postier closed the hearing. Aldermen discussed the content of the motion and on the advice of Fred Suhler, Jr. City Attorney the following motion was made by Strain and second by Bluhm:to approve the vacation as requested with the following conditions: 1. To convey back to the City the public street easement of 1st St. S. W. and the signing of a development agreement between the City and the Kahler Corporation for the construction of a new hotel on the Zumbro Hotel site. 2. To secure an agreement with the Mayo Clinic linking the existing Kahler Hotel with the Mayo Medical Education building being construct- ed by the Mayo Clinic. This would inlcude a full definition of the West tunnel between the Kahler Hotel under lst St. S. W. This would. generate more retail space. It was noted that this West tunnel is not a part of the new hotel project and is not a part of the Development District. 3. Utility easements to be approved only upon the recommendation of the Public Services Department and the funding for all utiliites both new and replacements are to be paid by the developer. ( This includes maintenance and repairs ). 4. A Hold Harmless clause to be included in the development agreement stating that the City of Rochester is in no way liable for any public mishaps. This Hold Harmless Agreement absolves the City from any future damage claims in this area. Vote was taken - Ayes (7), Nays (0).Motion carried. Resolution No. 684-86 was adopted. Strain moved, Hunziker second to approve the purchase of 112 South Broadway in accordance with the following terms: Land and Building $99,000.00 Fixtures - 25,241.50 for a total of $124,241.50. 1 Closing on the real estate must occur prior to January 1, 1987. Closing on the fixtures will occur after the first of the year. The Suskovics will be given first option to repurchase all or a portign of the f1 ture$ from the city at a price to be negotiated. Hyes (7), Nays (U.Motion carried. RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA 2787 Adjourned Meetin4 No. 23 - December 29. 1986 Agenda Item E-2 Strain -moved, Solinger second to adopt Resolution No. 685-86 design- ating the First National Bank of Rocheste,r,, the Norwest Bank of Rochester, The Marquette Bank and Trust Company of Rochester, The Rochester Bank and Trust Company, Midwest Federal Savings and Loan, First Minnesota Federal Savings Bank, Twin City Federal Savings Bank, and Home Federal Savings Bank as depositories of the public funds of the City of Rochester, Minnesota. Resolution No. 686-86 Authorizing the facsimile signature and endorsement of Certificates of Deposits. Resolution No. 687-86 authorizing the check against the General Account at Marquette Bank and Trust Co. of Rochester and the payroll account at First National Bank of Rochester will bear facsimile signatures. The transitions are covered by a forgery bond. Assignment of Securities as follows: Resolution No. 688-86-Additional Securities in the amount of -0- in collateral in lieu of a depository bond and releases in the amount of $1,641,571.97 from the Norwest Bank of Rochester, Mn. Resolution No. 689-86- Additional Securities in the amount of $7,900,000.00 in collateral in lieu of a depository bond and releases in the amount of $5,900,000.00 from the.Marquette Bank and Trust Co., Rochester, Mn. Resolution No. 690-86-Additional Securities in the amount of $1,570,000.00 in collateral in lieu of a depository bond and releases in the amount of $9.036,729.00 from-'the.First Minnesota Savings Bank, Rochester, Minnesota. Resolution No. 691-86 - Additional securities in the amount of $1,000,000.00 in collateral in lieu of a depository bond and releases in the amount of -0- from the Home Federal Savings Bank of Rochester, Minnesota. Resolution No. 692-86-Additional securities in the amount of $2,593,931.93 in collateral in lieu of a depository bond and releases in the amount of -0- from the Twin City Federal Savings Bank , Rochester, Minnesota. Resolution No. 693-86- Additional securities in the amount of $18,276,925.46 in collateral in lieu of a depository bond and. releases in the amount of $14,892,298.10 from the Midwest Federal Savings and Loan , Rochester, Minnesota. Resolution No. 694-86 - Additional securities in the amount of -0- in collateral in lieu of a depository bond and releases in the amount of $50,000.00 from the First Bank of Rochester, Minnesota. Ayes (7),Nays (0).Motion carried. 2789 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 23 - December 29, 1986 Agenda Item E-3 E-4 E-5 E-6 -7 W -10 Solinger moved, Bluhm second to adopt Resolution No. 695-86 closing the completed improvement projects and transferring unexpended balances pursuant to the City Charter, Section 11.10 as follows: The amount transferred is $586,386.78 broken down as hereby stated. Signals $52,745.14 , Construction $351,892.79, General Government $ 169,711.67 , Park and Recreation System $12,037.18. Ayes (7), Nays (0).Motion carried. Strain moved, Allen second to adopt Resolution No. 696-86 closing the tax increment projects and transferring unexpended balances in the amount of $5,728.57. Ayes (7), Nays (0).Motion carried. Bluhm moved, Strain second to adopt Resolution No. 697-86 closing the completed improvement projects and transferring unexpended balances as follows: Misc. $302,775.27; Series Q $65,466.47; Series R $215,275.32. Ayes (7), Nays (0).Motion carried. Allen moved, Hunziker second to adopt Resolution No. 6 0-86 authorizii the City Clerk to advertise for bids on the City Group Dental Insur- ance .Bids to be opened at 11:00 A.M. on January 26, 1987. Ayes (7), Nays (0).Motion carried. Solinger moved, Bluhm second to adopt Resolution No.. 699-86 hiring the firm of Bakke , Kopp , Ballou and McFarlin, Inc. to design the new parking ramp on the Jefferson Depot site. The design fee is $155,708.00 for the ramp. Ayes (7), Nays (0).Motion carried... Canfield moved, Strain second to adopt Resolution No. 700-86 author- izing the contract with Olmsted Co. for local share funding of CY87 ZIPS Dial -A -Ride . Share of Olmsted Co. is $20,504.00 which is 14% of the total. Total fund is $113,060.00. Ayes (7), (0).Rotion carried. Solinger moved, A`•len second to approve the Accounts Payable in the amount of $1,087,866.71. This is a semi-monthly billing. Copy of bills on file in the office of the City Clerk... es -('7);. Nays-(0):: Motion carried. Strain moved, Bluhm second to authorize the City to pay the appraised value of $5,230.00 for Parcel No. 439 - This is for the Right -of - Way for Stage II of 41st St. Interchange, ramps and Frontage Road. This is part of Stage II of Mn/DOT No. 5508 (52-20-36 ). Ayes (7), Nays (0).Motion carried. Having no further business, Allen moved, Canfield second to adjourn the meeting. Ayes (7), Nays (0).Motion carried. City Clerk N I.