Pastor Curtis Zieske, Trinity Lutheran Church, offered a prayer.

The regular meeting of the Albert Lea City Council was called to order at 7:00 P.M. in the City Center Council Chambers by Mayor Jean Eaton.

ROLL CALL

Present were Councilors Vern Rasmussen, Randy Erdman, Jeff Fjelstad, John Severtson, Al Brooks and Mayor Jean Eaton.  Absent was Councilor George Marin.  Also present were City Manager Victoria Simonsen, City Attorney Steve Schwab, Public Works Director Steve Jahnke, Council Secretary Sandi Behrens and representatives from the Albert Lea Tribune, KATE Radio and KAAL-TV.

The Pledge of Allegiance was recited.

CONSENT AGENDA

(a)   APPROVAL OF THE MINUTES FROM THE REGULAR COUNCIL MEETING OF FEBRUARY 28, 2005. 

(b)   RESOLUTION 05-48 ADOPTED – APPROVING LAWFUL GAMBLING APPLICATION:   Resolution 05-48 approves the lawful gambling application for the Freeborn County Fantails to conduct a raffle at the Elks Club, 1811 South Broadway, on March 12, 2005.

(See Secretary’s Original Resolution 05-48 included with these minutes.)

(c)   RESOLUTION 05-49 ADOPTED – APPROVING LAWFUL GAMBLING APPLICATION:  Resolution 05-49 approves the lawful gambling application for the Freeborn County 4-H Clubs to conduct a raffle at the Freeborn County Fairgrounds, 1031 North Bridge Avenue, on August 6, 2005.

(See Secretary's Original Resolution 05-49 included with these minutes.)

(d)   LICENSES APPROVED: 

     OFF-PREMISES LIQUOR SALES

     Aragon Bar, 130 West College, at the National Guard Armory on March 18, 2005

     Aragon Bar, 130 West College, at the City Arena on April 23, 2005

     Mexico Lindo Restaurant, 804 East Main, at the Freeborn County Fairgrounds  

          on March 19, 2005

(e)   RESOLUTION 05-50 ADOPTED – CLAIMS:  Resolution 05-50 presents the financial claims of the City.  

(See Secretary's Original Resolution 05-50 included with these minutes.)

Councilor Brooks moved, Councilor Erdman seconded, that the consent agenda items be adopted.  On roll call vote, all councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the consent agenda items adopted.

FOLLOW-UP TO PUBLIC CONCERNS

City Manager Simonsen addressed questions and concerns expressed at the previous meeting as follows:

-          Councilors Rasmussen and Severtson along with the City Manager and City Engineer met with Mr. Bok regarding the sludge removal, scrap iron removal and Stevens Road annexation issues.  The City is pursuing his allegations regarding inappropriate handling of scrap iron through an internal investigation.  The City is providing more in-depth documentation regarding sludge removal and the City has found that only portions of Stevens Road have been annexed.

-          In regard to the crosswalks at the new Government Center, the engineering departments of the City and County are working on the details of getting these installed in early May.

-          In regard to planting trees on Front Street under the high lines, the City stopped planting large trees under power lines and other obstructions in 1996.  We do plant smaller varieties of trees under power lines or in some cases slow growing medium sized trees are planted.  She isn’t sure what trees or the address on Front Street Mr. Bok is referring to.  If Mr. Bok offered a specific location, it would be easier to address the problem.

-          Other items dealt with the ordinance regarding the Automated Pawn System and petitions to repeal the ordinances for storm water and public lighting utilities, which are scheduled for discussion later in the agenda.

REQUEST TO LIFT RESTRICTION FOR LIQUOR STORE OWNERSHIP – PUBLIC HEARING

City Manager Simonsen reported that Kevin Beseman, owner of Southtown Liquor, is requesting the City delete a provision in the City Code which restricts the number of liquor licenses that can be held by one individual.  The necessary notice for this hearing was published on March 3, 2005.

No one appeared to be heard.  No action was taken on this request.

RESOLUTION 05-51 ADOPTED – ORDERING IMPROVEMENT AND PREPARATION OF PLANS FOR JOB 0113 – PUBLIC HEARING

City Manager Simonsen explained that this is a public hearing to receive input on the proposed installation of sanitary sewer and watermain extension to Pro Trucking and Manufacturing and Freeborn-Mower Cooperative Services (with no watermain loop), installation of sewer and water in Government Acres and repairs to the sanitary sewer line at the entrance of Trail’s Travel Center.  The necessary notice for this hearing was published on March 3, 2005.

Roger Bok, 1012 Cato Drive, asked how much sewer is being replaced.  City Engineer Jahnke responded approximately 200 feet is being replaced at the entrance to Trail’s Travel Center.  Mr. Bok then asked why it wasn’t done properly the first time.

Annette Besco, 2305 Gene Avenue, appeared on behalf of her mother, Edna Herfindahl.  Ms. Besco stated that her mother received a statement last year that her assessment would be $40,000 and then a week ago she received a letter that her assessment would be $80,000.  On Saturday, her mother received a letter with a corrected billing for $20,000.  She asked which billing is correct.  Ms. Simonsen replied that the project had changed since last year accounting for the smaller assessment.  She noted that an error in calculation had occurred which resulted in the assessment bill her mother received on Saturday.

Ms. Besco also asked whether her mother would have to pay if she never taps into the system and questioned whether interest would accrue from the date the assessments are adopted by the City Council.  Ms. Simonsen told Ms. Besco that if her mother never annexes her property that she will not have to pay the assessment but that interest will accrue at six percent per year from the date the Council adopts the assessments.

Don Johnson appeared on behalf of Kent and Sue Erlandson, owners of property adjacent to the proposed project.  Mr. Johnson explained that the Erlandson’s object to the assessment citing the fact that they do not feel their property value will increase by the amount of the assessment.  He noted that the Erlandson assessment increased from $17,000 last year to $27,000 this year.

Councilor Brooks moved, Councilor Rasmussen seconded, that Resolution 05-51, ordering Job 0113, be approved.  Councilor Brooks stated that this project has required a lot of time but he feels it will be an asset when it is completed.

On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried, the resolution adopted and the project ordered.

(See Secretary's Original Resolutionm 05-51 included with these minutes.)

SERVICE PLAQUES AWARDED TO OUTGOING COUNCILORS

Mayor Eaton stated that traditionally outgoing Councilors are recognized for their service on the City Council.  She asked former Fifth Ward Councilor Mary Kron and former First Ward Councilor Warren Amundson to come forward.  Mayor Eaton presented a plaque to Mary Kron for her 16 years of service and to Warren Amundson for his eight years of service.

PUBLIC ITEMS

Mayor Eaton read rules for addressing the City Council.

Roger Bok, 1012 Cato Drive, commented that he has attended Council meetings for almost 16 years and has only missed 14 meetings.  He also stated that the former City Manager has sworn at him after a meeting and that he shouldn’t have been allowed to speak to him in that manner.  Mayor Eaton asked Mr. Bok to stop slandering people.  Mr. Bok then commented on the annexation of Stevens Road.  He noted that if it isn’t in the City why did bills go out to everyone on the road.  He stated that the meeting he attended regarding the sludge hauling was the worst meeting he ever attended.  He said that there is $400,000 missing and no one can account for the money.  Mayor Eaton asked Mr. Bok to have a seat stating he is not permitted to slander staff.

RESPONSE TO PETITIONS FOR REFERENDUMS

City Manager Simonsen reminded the Council that it received two petitions proposing repeal of Ordinance 78, 3d relating to the establishment of the Stormwater Utility and Ordinance 79, 3d relating to the establishment of the Street Lighting Utility.  She noted that the staff consulted with Attorney David Kennedy of Kennedy and Graven in Minneapolis to obtain an opinion on whether these two ordinances are subject to the City Charter’s referendum provisions.  Mr. Kennedy’s written opinion explains that the ordinances are not subject to referendum.  Minnesota Courts have long held that referendum is further limited to those matters that are legislative in nature and do not apply to administrative actions of the governing body.  Mr. Kennedy further states that the ordinances are clearly administrative in nature.  She explained that it is necessary for the City Council to change the reference to the Statute listed from Statute Section 444.075 to 429.101 relating to collection of unpaid street lighting charges.  She noted that it is necessary to pass a motion stating that the utilities are not subject to referendum.

Councilor Erdman moved, Councilor Severtson seconded, to change the reference relating to collection of unpaid street lighting charges from Statute Section 444.075 to 429.101.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the citation noted.

Councilor Erdman moved, Councilor Fjelstad seconded, that the City Council take no further action on the petitions.

City Attorney Schwab was asked his opinion of Mr. Kennedy’s finding.  Schwab noted that when you are talking about the difference between administrative and legislative, the question becomes whether you are making new law or enacting law already in existence.  In looking at Mr. Kennedy’s letter, it refers to Chapter 444 and Chapter 429.  Those are the two State Statutes that authorize storm water and lighting utility fees.  All the City is doing is taking advantage of those statutes and enacting legislation already put forward by the State of Minnesota.  That is why it is administrative rather than legislative.  We are not reinventing the wheel, we are taking advantage of two Minnesota Statutes.  That is why it is administrative rather than legislative.

On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried.

REQUEST FOR FRIENDS OF HOSPICE WALK/RUN APPROVED

Crossroads Community Hospice is requesting Council approval of its fifth annual Friends of Hospice Walk/Run on Saturday, June 11, 2005 from 7 a.m. to 9:30 a.m. in conjunction with Eddie Cochran Weekend.  Due to the bridge replacement on Lakeview Boulevard, the walk/run will begin at the Freeborn County Fairgrounds, continue to the Hatch Bridge and then the group will return to the fairgrounds.

Councilor Rasmussen moved, Councilor Brooks seconded, that the request for the Crossroads Community Hospice walk/run be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the request approved.

REQUEST TO INSTALL RAIN GARDEN APPROVED

The Shellrock Watershed District Board is requesting approval to install a rain garden in Lakeview Park.  The Lakes Restoration Committee is requesting grant funds from the Albert Lea Medical Center to fund the project and Southwest Middle School students will assist with the plantings.  The Park and Recreation Advisory Board has approved the proposal and Staff is recommending support of the project as well.

After Council discussion, Councilor Severtson moved, Councilor Rasmussen seconded, that the request be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried.

REQUEST TO PURCHASE PROPERTY DISCUSSED

City Manager Simonsen explained that Rick Harmon of Interra-Vision Development, LLC is proposing to purchase five acres at the southwest corner of East Main Street and Garfield Avenue at a purchase price of $1.5 million.

Councilor Brooks moved, Councilor Fjelstad seconded, that the request to purchase five acres at the southwest corner of East Main Street and Garfield Avenue be denied at this time citing a desire for more information.

Council discussion centered around a desire to clean up and market the entire site.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the request denied.

ORDINANCE 85, 3D ENACTED – AUTHORIZING IMPLEMENTATION OF AUTOMATED PAWN SYSTEM - PUBLIC HEARING

Mayor Eaton opened a public hearing on Ordinance 85, 3d, authorizing implementation of an automated pawn system.  The necessary notice for this hearing was published on March 3, 2005. 

Mr. Phil Hafvenstein of the Minneapolis Police Department appeared to explain the system and respond to Council questions.  He is currently the manager of intellectual property initiatives.  He provided a history of the automated pawn system since its inception in 1994.  He explained that this system is beneficial to everyone involved, the Police Department, the pawn shop, the City and its constituents.   The pawn shops are permitted to use any software that meets the state requirements.  At the close of business, the software encrypts the days report and passes it along through e-mail.  The system is secure because it is not web-based.  Mr. Hafvenstein noted that the City of Minneapolis invested a half million dollars to establish the system.  The City has continued to lose money over the past decade but will eventually begin to make money with the system.   He reported that the system has never put a pawn shop out of business.  Pawn shops are regional businesses with some customers driving 100 miles to visit a store.  He provided a graph indicating the pawn customer demographics for four cities which shows that during the past three months regional transactions accounted for 34 to 70 percent of business for shops in Rochester, Mankato, Red Wing and Monticello.  In measuring effectiveness, Mr. Hafvenstein report ed that investigators in Minnesota and western Wisconsin identified 503 stolen items among those reported by Minneapolis shops, that Minneapolis investigators identified 692 stolen items using APS and that the estimated new retail cost to replace the stolen items recovered by the Police Departments in 2004 using APS is $787,058.  There are two City costs involved to implement the Automated Pawn System; those are an initial $1,050 fee paid to the Minneapolis Police Department and a one dollar fee charged by the stores and passed on to the customer.  He noted that this is a user fee similar to a building permit fee.

City Council discussion included the cost of equipment needed by a pawn shop, estimated by Mr. Hafvenstein as between $2400 and $3500, and training provided to the pawn brokers.  Mr. Hafvenstein told the Council that they try hard to work with the pawn brokers to educate them in use of the system.

City Manager Simonsen asked about the 60-day holding period.  Mr. Hafvenstein said that this provision is set in statutes.  The owner of the property may take the property earlier but the state requires the property be held for 60 days before it is sold to a third party.  He explained that this requirement protects the citizens.  He noted that during this 60-day period all serial-numbered items are automatically checked five times against the NCIC database and the results are made available to the appropriate agency through the APS client interface.

Pete Reinert, owner of KC Pawn, told the Council that the local pawn shops would probably go out of business if this ordinance is passed.  In addition to the initial outlay, the shops will need to pay manpower costs to enter the data into the system.  He stated that the pawn shop is the most regulated business in Albert Lea and that he earns around $10,000 per year.  He explained that they attempted to negotiate the terms in the ordinance with the Police Department but didn’t get very far.  He also commented that the majority of the agencies in the system are in the metropolitan area.  Mr. Reinert responded to a question of where he is coming up with the $5000 cost with the fact that the cost of the software and the cost of labor combined with the initial cost would bring him up to the $5000 figure.  He noted that he is constantly working with customers and would have no change to enter data in the system.

Ms. Simonsen asked for clarification on the issue of data entry as opposed to hand tickets.  Mr. Hafvenstein explained that the pawn shop would enter the data at the time of the transaction.  Once the individual has been entered into the system, it is immediately available when the customer comes back to the shop.  This will decrease the amount of labor in recording pawned items. He noted that the cost to the pawn shop owner could be as low as $500 to $600 per year.

Kim Foster, CEO of KC Pawn, stated that they are not opposed to the ordinance or the pawn system; they are opposed to the cost.  He asked that they be given some time to negotiate with the Police Department to work on the fine points of the ordinance.  They are asking for a deferment of cost, perhaps half.

Mark Rayman, Austin, told the Council that the owners purchased the building and fixed it up.  He suggested the Council work with these people and modify a few points in the ordinance.  He noted that the gentlemen have invested $100,000 in the building.

Mayor Eaton asked if the Police Department had met with the pawn brokers.  Assistant Chief Dwaine Winkels told the Council that they had met with the shop owners but that they couldn’t change the items they were suggesting and the owners disagreed with the fees.  Winkels also noted that the pawn broker is required to sign an oath that they will not conduct illegal pawn activities.

When asked about storage of photos, Mr. Hafvenstein commented that the storage of photos is generally consistent with the holding period, 60 or 90 days.

Paul Citurs, co-owner of DJ’s Pawn, asked whether they would need to have a written transaction with a photo.  He noted that going from 30 days to 60 days will cut his profit in half.  Mr. Hafvenstein told Mr. Citurs that he is probably in violation of the statute which set the 60-day minimum in 1996.  He also told Mr. Citurs that he will not be sending paper to the Police Department.

When questioned about the statement that the majority of he communities using the APS system are in the metropolitan area, Mr. Hafvenstein replied that the system was first used in the metro area because that is where the population base is but he also noted that several rural communities are now embracing the system.  He noted that there are currently 115 agencies using the system.

Councilor Fjelstad asked Mr. Citurs if he felt the Police Department did an adequate job of informing him about this system and Mr. Citurs felt they did not.  Councilor Fjelstad then asked if the ordinance would put Mr. Citurs out of business and he replied it would.

Councilor Erdman asked about the cost of a pawn brokers license and the City Clerk replied the license costs $50 per year.  Councilor Erdman then asked the City Attorney his opinion.  Mr. Schwab told the council that he had participated in a telephone conference regarding this issue and that without the ordinance he isn’t sure we want to get the business that will come into Albert Lea.  He endorses approval of the ordinance.

After additional Council discussion and on roll call vote, Councilors Rasmussen and Erdman and Mayor Eaton voted in favor of the ordinance with Councilors Fjelstad, Severtson and Brooks voting nay.  Mayor Eaton declared the vote tied and the ordinance defeated.

Councilor Brooks advised the Police Department work with the pawn shop owners to clarify requirements of the ordinance suggesting that the issue would probably come before the City Council again in the future.

(See Secretary’s Original Ordinance 85, 3d included with these minutes.)

ORDINANCE 90, 3D ENACTED – REGULATING THE SALE OF METHAMPHETAMINE PRECURSOR DRUGS – PUBLIC HEARING

Mayor Eaton opened a public hearing on Ordinance 90, 3d, regulating the sale of methamphetamine precursor drugs.  The necessary notice for this hearing was published on March 3, 2005.  No one appeared to be heard.

On roll call vote, all Councilors voted in favor of the ordinance.  Mayor Eaton declared the motion carried, the ordinance enacted and the public hearing closed.    

(See Secretary’s Original Ordinance 90, 3d included with these minutes.)

APPOINTMENT TO SELCO BOARD CONFIRMED

Mayor Eaton announced that with the resignation of Jim Munyer, the Library Advisory Board is recommending appointment of Kristin McGivern to the Southeast Libraries Cooperative (SELCO) Board of Directors.   

Councilor Rasmussen moved, Councilor Erdman seconded, that the appointment of Kristin McGivern to the SELCO Board be confirmed.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the appointment confirmed.

APPOINTMENT TO THE AIRPORT ADVISORY BOARD CONFIRMED

Mayor Eaton announced that she has received the resignation of Bud Sorenson from the Airport Advisory Board and that the Board recommends either Rich Finke or Mike Nevins to fill this vacancy.

Councilor Severtson moved, Councilor Erdman seconded, that Mike Nevins be appointed to replace Mr. Sorenson on the Airport Advisory Board.   On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the appointment approved.  

RESOLUTION 05-52 APPROVED – ADOPTING ASSESSMENT FOR 1520 HAWTHORNE STREET

City Manager Simonsen reported that she had met with the owners of property at 1520 Hawthorne Street relating to a reduction of the assessment in the amount of $11,424.06.  It was discovered that the charge for landfill fees was included in the proposal from Larson Contracting for demolition.  She is recommending the assessment for the landfill fees in the amount of $2484.00 be cancelled and that the assessment for the demolition and disconnection of water service in the amount of $8940.06 be adopted.

After Council discussion, Councilor Fjelstad moved, Councilor Severtson seconded, that Resolution 05-52, adopting the assessment for 1520 Hawthorne in the amount of $8940.06, be adopted.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the assessment adopted.

(See Secretary’s Original Resolution 05-52 included with these minutes.)

RESOLUTION 05-53 ADOPTED – APPROVING CONDITIONAL USE PERMIT FOR LOVE’S COUNTRY STORE AND TRAVEL CENTER

City Manager Simonsen reported that the Planning Commission did not have a quorum for its February 24 meeting.  The public was invited to provide input at the meeting despite the lack of quorum.  Since the Commission was unable to make recommendation, the proposal comes to the City Council without recommendation in order to comply with the 60-day rule.  The conditions for approval are included in the resolution as recommended by the City Planner.    She further noted that the signed plan has been received and reviewed and is consistent with the intent of the conditional use permit and guidelines for a B-4 District.  A revised landscaping plan was submitted and has been reviewed and approved.

After Council discussion, Councilor Marin moved, Councilor Rasmussen seconded, that Resolution 05-53, approving the Love’s Country Store and Travel Center Conditional Use Permit as recommended by the City Planner, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 05-53 included with these minutes.)

ORDINANCE 91, 3D INTRODUCED – VACATING FRANK AVENUE

City Manager Simonsen reported that this ordinance authorizes the vacation of the east 40 feet of the vacated Frank Avenue adjacent to Lots 1-13 inclusive, Block 17, Edina Manor.

Councilor Brooks introduced Ordinance 91, 3d.  Ordinance 91, 3d will lay over for a second reading and public hearing pursuant to Charter requirements.

(See Secretary’s Original Ordinance 91, 3d included with these minutes.)                                                                           

RESOLUTION 05-54 ADOPTED – CALLING A PUBLIC HEARING FOR ELKS VARIANCE APPLICATION

City Manager Simonsen noted that the Elks Club submitted an application for a 15-foot variance of the required rear yard setback on the property located at 1811 Southeast Broadway to permit an addition for a kitchen expansion and dumpster enclosure.  The Board of Appeals was scheduled to hear the request at its March 1 meeting; however, there was no quorum to vote on the request.  Staff is therefore requesting a public hearing be called for the next regular Council meeting on March 28, 2005 to hear the request for the variance.

Councilor Brooks moved, Councilor Fjelstad seconded, that Resolution 05-54, calling a public hearing for the Elks Club variance application on March 28, 2005, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution 05-54 included with these minutes.)                                                                      

RESOLUTION 05-55 ADOPTED – DESIGNATED MUNICIPAL STATE AID STREETS

City Manager Simonsen explained that this resolution establishes 1.72 miles of municipal state aid streets within the City including Margaretha Avenue from 19^th Street to 14^th Street, Hammer Road from Greenwood Drive to Bridge Street and Greenwood Drive from Richway Drive to Hammer Road. 

Councilor Brooks moved, Councilor Severtson seconded, that the streets identified by the City Manager be designated Municipal State Aid Streets.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the resolution adopted.  

(See Secretary’s Original Resolution 05-55 included with these minutes.)

RESOLUTION 05-56 ADOPTED – ACCEPT BID FOR JOB 0436

City Manager Simonsen reported that bids were opened on March 9 for the 2005 Shoreline Restabilization Project (Job 0436).  The project consists of the restabilization of 21 various sections of shoreline along Fountain and Albert Lea Lakes that were damaged by the flood in September, 2004.  The City will pay the cost of the project but will be reimbursed for 85 percent of the cost.  Bids were received from Ulland Bros., Inc. and Freeborn Construction, Inc.  Staff is recommending award to the low bidder, Ulland Bros. at $102,037.

Councilor Severtson moved, Councilor Brooks seconded, that Resolution 05-56, accepting the bid of Ulland Bros., Inc., Albert Lea, for Job 0436, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 05-56 included with these minutes.)

FREEBORN BANK BUILDING PROPOSALS DISCUSSED

City Manager Simonsen explained that the City Council heard two presentations from Mr. Greg Jensen and Mr. Scott Knutson and from Mr. Brad Arends of ABG.  Mr. Steve Ladwig was unable to present at that time and was unable to be at the Council meeting.  In his absence, City Planner Bob Graham will present his proposal.

Mr. Graham told the Council that Mr. Ladwig, Ladwig Companies, is proposing to develop the Freeborn Bank Building and the Jacobsen Apartments through a collaborative effort working with various groups within the community to determine the highest and best use for the buildings and they will maintain the historical integrity of the building as a historical landmark.  They plan to restore the buildings as “green” buildings, meaning the development will be environmentally friendly.  This is a LEED (Leadership in Energy and Environmental Design) program of the US Green Building Council.  They plan to restore the building at a platinum level of the LEED program which will showcase the building and bring other environmental developers into the area to review the development.  It will be a mixed use building and the final use will be determined by the collaborative effort, i.e. first floor – fine dining, second floor – commercial, third and fourth floors – residential or combination with loft development.  Rooftop development may also occur.  They have a set of plans from 1998 at which time they proposed to develop the building but a number of issues came up which made it impossible for anyone to actually develop it.   They know that the use combinations will work within the structural capacity of the building.  They may choose to raise a portion of the rear of the Jacobsen Building to enhance the views and light but would retain the historical front.    Financing will include historical tax credits (20 percent of construction), tax increment financing, Ladwig Company money and City gap financing, if needed.  Assumptions include the City participating as designated in the RFP with asbestos abatement and interior demolition.  The City will certify historical status and will participate in tax increment financing, seek LEED grants and include the Hanson parking lot in the dedication to the building.  They intend to complete the project in two years with a one year buffer.  The next steps would be to determine City and collaborative partners interest in the plan, validate renovation costs with plan options, determine the financial viability and request 30 to 60 days additional time to present a development package and prepare a development agreement.

Councilor Fjelstad expressed his opinion that it was inappropriate for the City Planner to represent Mr. Ladwig.  If they were interested in developing the property, they should be present to make the proposal.  Ms. Simonsen explained that both Mr. Ladwig and his son are out of town and that the City would have been willing to do the same for any of the parties.  Mr. Graham stated that he is presenting to the Council the same way that he presents to the Planning Commission.

Patrick Corrigan, 814 Frank Hall Drive, agreed with Fjelstad.  He stated that if someone is interested in development the building, they should be here to do so.

Quincy Borland, 123 Lincoln Lane, asked how much the groups are offering for the purchase of the property.  Ms. Simonsen responded that they groups are requesting assistance from the City but that the City would not give them the property without a development agreement.    Mr. Borland then questioned costs incurred by the City to purchase the properties and demolish the Hanson Building.

Council discussion included a desire to work with the individuals proposing to develop the property, no interest in exchanging buildings, a desire for more information, a time frame for finishing the outside of the building, the amount of City money requested and the usage of the property.

Ms. Simonsen asked if it is the Council’s wish for her to contact the developers asking them to prepare more detail for a Council workshop.  The Council consensus was to hold a workshop meeting at the next pre-agenda meeting at which time interested parties could present the additional detail requested.

SETTING WORKSHOP MEETING

Councilor Erdman moved, Councilor Rasmussen seconded, that the City Council conduct a workshop meeting on March 24, 2005 at 5:30 p.m. in the City Council Chambers to discuss the proposals for the Freeborn Bank Building.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the workshop scheduled.

RESOLUTION 05-57 ADOPTED – AUTHORIZING SUBMISSION OF GRANT APPLICATION FOR PIONEER PARK

City Manager Simonsen reported that the Park Department is requesting authorization to submit a grant application to the Minnesota Department of Natural Resources for an outdoor recreation grant to be used for Pioneer Park improvements including playground equipment, fall material, landscape timbers, pathways, sidewalks, parking areas and a pavilion with finished restrooms.  The application includes a 50 percent match to the grant with a total project cost estimated to be $110,000.

Councilor Brooks moved, Councilor Severtson seconded, that Resolution 05-57, authorizing submission of a grant application for Pioneer Park, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 05-57 included with these minutes.)

UNLISTED ITEMS

MAYOR’S ITEMS

(1)   Congratulated the Boys Basketball Team on going to the state tournament.

(2)   Thanked the Council and staff for participation in the retreat this past weekend.

WARD ITEMS

First Ward, Councilor Rasmussen:

(1)   Congratulated the high school winter sports teams for doing a good job this year.

Second  Ward, Councilor Erdman:

(1)   Asked City Engineer Jahnke to explain what is being closed on Lakeview Boulevard and the timelines.

Jahnke explained that the detours went up today and that Sorensen began work today.  If traveling north on Lakeview Boulevard, the detour will be on Sunset Street to Highway 13.   If traveling south on Lakeview Boulevard, the detour will be on Martin Road to Richway or to Highway 13.   The first three weeks, Sorensen will be taking off the existing roadway, start working on the wet well, making it deeper and getting it ready for a sewer line.  They will be installing the boring underneath where the new bridge will go.  They will begin putting in the watering points for the installation of the sewer line.  If the weather cooperates, they will start working on the bridge.  People and boats will be unable to walk over or pass under the bridge for a three month period from April through June.  They are hoping to finish sooner than October 31 but that is the deadline for completion of the project.

(2)   Thanked the Council and staff for giving up their Saturday for the retreat.

(3)   Announced that the Tigers basketball team hasn’t been to state since 1936.

(4)   Noted that last year the City Council changed the time of the meetings from 7:30 p.m. to 7 p.m.  The meetings have been held at 7:30 p.m. since 1909.

Fifth Ward, Councilor Severtson:

(1)   Congratulated the Tigers.

(2)   Read a resolution passed in 1989 ordering two clean-up days per year.

ADJOURNMENT – 9:30 P.M.

Councilor Brooks moved, Councilor Severtson seconded, that there being no further business, the council meeting be adjourned until the next regular meeting of the Albert Lea City Council on Monday, March 28, 2005.  On roll call vote, all councilors voted in favor of said motion.  Mayor Eaton declared the motion carried and the meeting adjourned.

Filed and attested March 15, 2005.

________________________________              ________________________________

Secretary of the Council                                       Mayor