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Zumbrota, MN
Bridging the Past and the Future

May 15, 2003 Council Minutes

                         CITY OF ZUMBROTA CITY COUNCIL MINUTES

REGULAR MEETING           MAY 15, 2003   6:00 P.M.           TOWN HALL

 

Pursuant to due call and notice thereof, Mayor Rich Bauer called the Zumbrota City Council to order at 6:00 p.m.  PRESENT:  Mayor Bauer;  Councilmembers David Benson, Doug Borgschatz, Betty Jo Grothe, Deb Wilkinson.  Others present:  City Administrator Ron Johnson, City Accountant Mary Rohe, Community Development Director Tricia Hinckley, Public Works Director Rick Lohmann, City Attorney Matt Rockne, Reporter Sandy Hadler, David Drown (David Drown Associates), and others as per the attached list. 

 

The meeting opened with the Pledge of Allegiance.

 

AMENDMENTS/ADOPTION OF AGENDA

 

It was suggested to add item 7e- Zumbrota Health Care to the agenda.

            Motion Wilkinson, second Grothe to adopt the agenda as amended.  Carried 5‑0‑0.

          

MINUTES

 

Motion Benson, second Grothe to approve the May 1, 2003 regular meeting minutes.  Carried 3‑0‑2 (Borgschatz, Wilkinson abstained).

 

Motion Borgschatz, second Wilkinson to approve the May 8, 2003 special meeting minutes.  Carried 5-0-0.

 

ACCOUNTS PAYABLE

 

Motion Borgschatz, second Benson to approve the accounts payable of $42,762.44.  Carried 5‑0‑0.

 

UNFINISHED BUSINESS

 

1.   The committee reviewing the Sonia Gunhus request, suggests that Ms. Gunhus apply for a variance, through the Planning Commission, for approval to construct a residence on her parcel.  Council concurred.

 

2.  There was nothing to report regarding the St. Paul Road Public Improvements Feasibility Study. 

 

NEW BUSINESS

 

1.  On-sale and off-sale liquor license renewal applications were received.

Motion Borgschatz, second Grothe to approve the following license applications: Marlow and Deborah Larson/Zumbrota Liquor Store- On-Sale & Off-sale, Covered Bridge Supper Inc.- On-sale & Off-sale, and Sunday Liquor; KP's- On-sale wine and Sunday liquor; Stary-Yerka Post/VFW 5727- Club license and Sunday liquor.  Carried 5-0-0.

 

 

 

 

 

PUBLIC HEARINGS/MEETINGS

 

1.  6:10-  Mayor Bauer opened the public hearing to consider the adoption of a resolution exercising tax increment special deficit authority as authorized by MN Statutes 469.1792.  David Drown, David Drown Associates, explained that, due to the tax rate decreases over the past few years caused by a substantial drop in commercial/industrial rates, increments in District 10, Distrtict 10 Expanded and District 12 are substantially lower than anticipated.  Recent legislation granted cities the option to exercise tax increment special deficit authority to help address these shortfalls.  An additional 20% (approximately) in revenues would be captured by exercising this authority to help all parties meet their obligations related to said Districts.  No questions or comments were received from the public.  Mayor Bauer closed the hearing at 6:16 p.m.

Motion Grothe, second Benson to adopt Resolution 2003-11, a resolution exercising tax increment special deficit authority as authorized by MN Statutes 469.1792.  Carried

5-0-0.

 

UNFINISHED BUSINESS (Continued)

 

3.  Jeannie Johnson, Head Librarian, and Allan Nilson, Library Board Member, were present to inform Council of the Board's plans related to the 2003 cuts in Local Government Aid.  The Board's in-house survey revealed that library users preferred to have hours, rather than materials, cut in reponse to budget cuts.  Ms. Johnson and Flora Burfeind, Assistant Librarian volunteered to take a cut in hours.  The Board will close the library at noon on Saturdays instead of 3:00.  They stated that the Board is considering these cuts temporary, not to last more than 2 years, or through budget year 2006.  If the hours of Ms. Johnson and Ms. Burfeind are cut to less than 30 hours per week, they also agree to the following:  1) health benefits to these two employees be kept at their current 75% (of full-time) level for the next two years, 2) sick leave be kept at its current level, 3) vacation leave continues at its current rate, the hours per week adjusted to hours worked. 

 

NEW BUSINESS (Continued)

 

2.  Tricia Hinckley, Community Development Director, informed Council of the EDA's recommendation for Council to set a public hearing to consider property tax abatement for the Grover Auto relocation project.  She stated that the Grover Auto relocation is contingent upon the sale of their current facility in downtown Zumbrota.  The current Grover Auto site, she stated, contributes to traffic congestion, potential environmental hazards, and what some would call “blight”.  The Zumbrota EDA is pursuing a redevelopment plan that would include a mixed use structure with commercial office space, retail space, and/or food service on the main level and two or three levels of market-rate housing.  A Contamination Investigation Grant from the State of MN is being used to begin the redevelopment process.  In order to continue this process, the Zumbrota EDA needs to compensate Grover Auto for the equity in their property so that they can move forward with their relocation near TH 52.  The relocation project will be a private investment of $2.2 million, and the redevelopment project could result in an additional $3.5 million of investment, with total tax revenues for both projects reaching $150,000 ($53,800

 

being the city portion).  The abatement dollars would come from the new tax revenues generated at the new Grover Auto site.  Grovers would then donate their existing bldg & lot, new truck lot (without the Scharf building),  and new car lot to the EDA, which would in turn provide $400,000 up-front money to Grover Auto to compensate them for the lost equity in releasing those assets (based on a Commercial Appraisal completed in 2002).  The up-front contribution would be financed by a General Obligation Bond of $400,000.  The Zumbrota EDA is requesting that the Zumbrota City Council agree to abate the taxes on the new Grover Auto site and building(s) for a period of ten years, beginning January 1, 2004 and ending December 31, 2013.  Ms. Hinckley recommended 1) that the EDA provide all of any future profits from the sale of the downtown property, at a minimum of $100,000 (less costs associated with holding and maintaining the building; 2) that Grover Auto be responsible for any clean-up costs at the downtown location that are not covered by grants or federal program reimbursements; and 3) that the costs of extending water and sewer mains from the current service location to the southeasterly edge of the new Grover Auto parcel be covered by the City of Zumbrota.  She then summarized by reviewing the financials, with these recommendations included.

Motion Wilkinson, second Grothe to set a public hearing for 6:30 p.m., June 19 at city hall to consider property tax abatement for the Grover Auto Relocation Project.  Carried 5-0-0.

 

PUBLIC HEARINGS/MEETINGS (Continued)

 

2.  6:30 p.m.-  Mayor Bauer opened the public hearing to consider the Don Wendt annexation application.  Tricia Hinckley reviewed the request, showing the location(s) of the two areas of potential annexation (approximately 17 acres adjacent to corporate limits, and approximately 95 acres just south of Wedgewood Subdivision.  The joint resolution related to the annexation calls for immediate annexation of the 17 acre parcel, but the 95 acres would remain in Roscoe Township until development occurs.  The city would be responsible for zoning administration, as Goodhue County and Roscoe Township would relinquish their zoning authority as per the resolution.  The Wedgewood Subdivision is not included in the annexation resolution.  Mayor Bauer closed the public hearing at 6:45 p.m.

Motion Wilkinson, second Grothe to adopt Resolution 2003-12, a joint resolution between the City of Zumbrota and Roscoe Township designating certain lands as in need of orderly annexation.  Carried 5-0-0.

 

NEW BUSINESS (Continued)

 

3.  Kerry Frederixon requested approval of a Minor Subdivision for property located just off of Warren Ave in the St. Paul Rd/Warren Ave industrial area.  The subdivision would take one odd-shaped lot and split off approximately 15,000 square feet for a future building site.  The newly created lot would not have street frontage.  There has not been a survey completed of the property, but Mr. Frederixon would have one completed prior to submitting the subdivision to the county and/or selling the property.   The Planning Commission recommended approval of the request contingent upon the I2 zoning requirements being met, the receipt of a certificate of survey of the property, and the inclusion of the proper language addressing the access easement through the current lot to Warren Avenue in the deed(s) prior to recording. 

 

 

Motion Grothe, second Borgschatz to accept the recommendation of the Planning Commission and approve the Minor Subdivision request of Kerry Frederixon for property located just off of Warren Avenue in the St. Paul Roadd/Warren Avenue industrial area to split off approximately 15,000 square feet, contingent upon the I2 zoning requirements

being met, the receipt of a certificate of survey of the property, and the inclusion of the proper language addressing the access easement through the current lot to Warren Avenue in the deed(s) prior to recording.  Carried 5-0-0. 

 

4.  As requested, Rick Lohmann, Public Works Director, presented additional information related to the repair or purchase of the skid loader.  He stated that the existing skid loader was scheduled for replacement in 2001, but major repairs made it more feasible to keep than replace.   The pump that controls the main lifting hydraulics, is broken, and would cost $1500-$2000 to repair.

A new Cat skid-loader, with a power reversing broom and snow blower, can be purchased from Ziegler, Inc. through the State Contract for $32,474.16, with a price, after trade-in, of $24,974.16 plus tax.

Motion Borgschatz, second Grothe to purchase a new Cat skid-loader, with a power reversing broom and snow blower, from Ziegler, Inc. through the State Contract for $32,474.16, with a price, after trade-in, of $24,974.16 plus tax.  Carried 5-0-0.   

 

5.  It was noted that the Mayor Bauer, Councilmember Borgschatz and Administrator Johnson continue to meet with representatives of Zumbrota Health Care/Zumbrota Community Foundation, as the effort continues to keep the Zumbrota Nursing Home and Bridges Apartments open.  It is hoped that a purchaser can be found and the Home and Apartments will continue to serve the community. 

 

REPORTS

 

-City Administrator-

-Thanked Council for the opportunity to attend the MCMA Annual Conference.

 

-City Accountant Mary Rohe-

-Requested approval to transfer funds.

Motion Grothe, second Borgschatz to transfer $30,000 from Municipal Reserve to Capital Projects Fund (St. Paul Road Public Improvements Project).  Carried 5-0-0.

 

-Public Works Director Rick Lohmann-

-Informed Council that his crew would be taking down the flags on Main Street after Memorial Day unless Council objected.  No objection was given. 

 

-Councilmember Doug Borgschatz-

-Expressed his appreciation to Representative Steve Sviggum for attending the recent healthcare committee meeting.

 

-Councilmember Deb Wilkinson-

-Informed Council that the bonding bill for the Goodhue Pioneer Trail made it through the Senate, and stated that she was hopeful it would also be approved by the House of Representatives, and signed by the Governor.

-Stated that residents have expressed concern over the potential shortage of primary care providers, and lack of off-hours medical care.  She volunteered to set up a short-term task force to put together Requests for Proposals to solicit interest from primary care and, perhaps, off-hours care, providers. 

 

Mayor Bauer adjourned the meeting at 7:23 p.m.

 

 

                                                                                    ______________________________

                                                                                    Ronald S. Johnson, City Administrator

 




City of Zumbrota; 175 West Avenue; Zumbrota, MN 55992