HomeMy WebLinkAbout07 09 1979ININUM of Mo MeaediMs of the vuh" Covew of duo Vm"* of Prix lake Ira 1M Cwmgy O Senn " eed>SNh of
Ia, iwdvdi" ell acc*mft andiNd by said Cwadl.
July 9. 1979 }
The Common Council of the City of Prior Lake "met in regular session on
July 9, 1979 at 7 :30 PM. Present were Mayor~ Stock, 'Councilmen,Busse,
B- issonett, Thorkelson, Watkins;, City Manager,McGuire; City Engineer
An derson, Finance Director Teschner,
anus Attorney Sull,;ivan.
Mayor Stock calledr the meeting to orde r. The following correction is
to be: made to the minutes of July 2
k
Page 2, paragraph 5 correction of the word delet to delete.
. MINUTES
'
Motion b �.
y , 8urse to a PProv4. the minutes of July 2, 1979 - -as amended
T
seconded by .horkel'son A upon ar vote taken it was duly passed.
CRIMINAL JUS-
TICE ADVISORY
The Council reviewed the draft for the By -Laws for the Criminal Jus-
tine Advisory Council. d
COUNCIL
r
Mayor Stock requested the Council to think of some0t in the comet ity,
or if a Councilman would like to volunteer,
to servi on the committee.
Action onr this w ll be taken at anothertneeting ,»Y Mayor Stock accepted
the By -Laws of the Scott County Criminal
Justice Advisor+ Council. ,
ENVIRONMENTAL
HEALTH PROD.
The Counci-I reviewed the Pr oposed Emironmentai Health Program.
Mayor Stock' on that committee and briefly explained what the committee ti
does-
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Mag�or Stock accepted this re port as informational material. -
JOHN LEWIN
Mr'. John Lert was present "to ask the Council what he should pay for
the" a►agering ewer
s 'service. The total, cost is $5,881.41.
r
- -Mayor Stock r: commended that the City assume: the cost of "a'lift
for $1,885.77 and credit � p ump
th".s amount against the auger bid of
g $5,88,1.41. Mr. Lewin woold
then the di f
Pay f, erenc of
P $3 ,995.64 , whi ch would be
put on the a ssess rol.;l',
II I
Motion by Watkins for the City to assume the cost of the: lift pump for
88 n
an
S 77 d to credit this amount against the auger bid
of $5,881,41,
seconded by Busse and upon a vote taken it was dui passed.
ij
SIGNALS AT
42 t 1
- y
Y City Engineer Anderson reported that her had a meeting with Mn /Dot acid
rthey hill be accepting bids for the project of installing
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CSAH 42 TH 13. signals at
C
_and
BROWN WATER
Cou,lcn li d _a discussion on, the water sample 'that one reside,nt brought ° }
in.
,t
a.he wa .ter wac brown witch deposits i
po is that had settled at the
bottom of the jar. Councilman Thor�.elson also stated that he has
had
- ' probleMSL like this with his water.
Y ,
The City Eng,i neer is to check this out and report "back to the Counc i l
at a future meeting.
0 PS BAY a
HART INSON IS
The City Engineer reported that the Kopp's Bay and Martinson Island
4 0roject`is near ca'ptetlon: The
contractors are laying the sod.
4TH OF JULY
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Mayor Stock 'read a letter he recei`t�d from Marvkun`d Prior Lake Association,
thanking the City of Prior Lake
and City Staff for making the 4th. of
July teiebrati'on a success.
7450 PM
At this time, Mayor Stock called.i, recess with the Public Hearing to recon --
Vent at 8:00 PH.
s:OO PM
�1I
Mayor Stock called the Public Hearing to order.
_. <a
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IMINUM of the of th* r eeu"" of Vilhe" of trier Lek* in of see"
I
X11+ shN of
ell aeauMs ewNNd h► saHi Cwseil.
I
REVENUE BON Mayor Stock read the public hearing notice that "was printed i'n the Prior Lai:e
GUIDELINES American.
SHAKOPEE ME
CLINIC IN Councilman Bill Bissonett asked to be excuse f
PRIOR LAKE" d from this public hearing an
all participation. 9_ d
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eI
Mayor Stock - Explained the procedure for tonight's hearing and discussed'
Resolution 79 -25, Revenue Bonds `Guidelines_
David Fleming - Partner with Abrams,
Keenan, lynch and Spagnolia anti also
Administrator of the Shakopee Medicai
Center, PA in Shakopee. He introduced
Robert l.vy of Thompson, Neilson Law Firm, counselor for °this matter.
i
Robert Levy - Issuance of a bond according to MSA, Statute 474 is serve
economical development within the City which the project is to be located.
There are specific ways
,in which that can take place. We are looking . at
two primary areas. 11 Direct increase `inempioyment within the City. It is
estimated that there would 'be approximately 18 new jobs created in ' connection
k '
with this project. 2) Increase in the tax base. A nice new medical build -!
ing,would'be a benefit,,to he community through
the result in an increase
ir. the tax base. 3) ;Keeping the People Within the City_for medical
i
er-
vices. If they stay in the City - for medical services, other businesses
in the City can fulfill their needs.
This propose& project anJ issuance of the; revenue bond or
note is to be sold and
purchased only ,to a single institutional -investor.
We are not looking at a public offering or a
_ 9 private , placement
r
_ multiple issue or more than one holder. There would be- sineve purchaser.
It may be that there will
be a construction investor that the bond might
be done on the basis, that would allow for construction loan
to be done
under the bored and ,that upon completion of the improvements it wou d be
sold by the
m" istruction lender to the permanent fender.' It is possible'
that at one tka on�:bank might hold the bond during the period of
construction an,i completion it would be sold ' to an insurance c
We are lookin ai upon a' � ^ y•
} 9, proposed s ale of this bond
through the Towle Company
to an insurance company, which is in line with Resolution 79 - 25..
�.
Abrams, Keenan, lynch and Spagnolia is a partnership which
consists of`uphysicians who make up the Shakopee `along
Medical Center
with Mr. Fleming. The Medical Center would be the primary tenant of the
building providing
1
related medical services. The
into a lease with the partnership would enter
corporation.
poration. We are not dealing with outsiders,
!
1
we are dealing ;I th two related entities and two members,,are residents of
Prior lake.
David Fleming - The Shakopee Medical Clinic has noticed a trend in the
number of years that many patients have come; from the Prior Lake area,
k
%W0
As the area has grown we have found that people have traveled to Shakopee,
Sundance Medical Clinic said that 22 %,,,of their patients have come from the
Prior lake area. St. Francis Hospita'„indiacted that a clinic facility
In Prior Lake is
necessary for the survival of the hospital. Prior lake
is the most logical extension of providing medical
services; 702 of the
patients in the Jordan,,lakevilie and Prior Lake ar ea `
, outs de' the con-
.
munity for care. The clinic in Prior<Lake will be,.relat ed to the Shakopee
Medical C1'inic and be financially entwined, however, be
will a separate
entity with its own staff. One doctor � °iii' rotate, = - f,-am tF = Shakapea
. "Hadical'Ciinic and one new physician
will be hired. Over the,years, there
will, be two physicians, occupying 6.exam rooms and employing about 11 -12
people. The 4,000 sq ft. of clinic that Shako F Medical Clins will be
renting will : include c omplete lab and X -ray facility,
minimizing pat "ents
transportation for further analysis and diagnosis and also a
mall emer-
` gency area which would minimize transportating patients outside the community.
We are proposing to an 8,000 sq. ft. building
with capacity of i2 „000
sq. ft. The 4,000 ft. expansion cannot be predicted when it will take
place, however, one -half of the 8,000 sq. ft. will go to the Shakopee
Medical Clinic and the other half will be devoted for office for
space
specialists• We have received many inquiries from specialists interested;-~
in getting office space from this Q el
a
clinic.
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1 - 2-
I
e
t
co of sm" saw 5011011
of
•w h 0 6dW by s ' Cowaa
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MEDICAL
CLINIC IN
David Fleming - The Shakopee Medical Clinic and the real estate -'',
ship of Abrams, Keenan, lynch and Spagnola
1i
'G
PRIOR LAKE
coming to Prior Lakepirtner
logical extension to our existing practice. It will provide more cost
effective care to our Patients who currently
j 1
reside in Prior Lake and
give us an opportunity to provide
and it w service to Prior Lake as it grows
ill affect °and improve
the utilization - of all health care pro-
viders within the community.
Peter'Patchin - 1 should have been here earlier when you passed Resolu-
tion 79 -25• '1 am a little more than disappointed
in your judgement and
What advice you might have had. I feel
l
very,,strongly that this method'
is a very unsound method of financing. Anytime ; a borrower has zero
dollars equity in a project it is
almost too easy to walk away and the
responsibility and pressure of good management does
not exist. They
are asking $87.50 a sq. ft, or double the -cost of a
Somebod 'i g y good quali office
building.. going way out of line
on this one. What wor-
Has me is that the City of Prior Lake has to endorse this. if the
want to do
this, why don't they do it on, their own. In my recent ex-
Perience in the last ten years, in appraising financing
x
and ,these pro-
jests, 1 would have to compare the sudden surge toward revenue bond
financing to the limited partnership scam,
a,..•
what it turned out to be,
and bankru tc' was s.
P Y pectular• Its bad enough when the City has
endorse financing in order to to
get a tax exempt. The Ci does not'have
any direct obligations on this, however, the
.
City's name Is on it
nevertheless. The people; of Fergus Falls and South St,. Paul only got
$.42 on their dollar
for bonds. They are suing not only - the borrower`
but 1 ask that you go and talk to the City officials
and ask
them about it. It's a risk you are taking and'i don't; know why you
are taking it. 1 should have been here before
.
.up this thing was resolved.
The application might be the most meritorious ever, I don't
pass judge -
ment on that, l just Pass judgement ci what i think is a very risky
method of financing and -very
"
a risky thing for the City of Prior Lake
to be endorsing.
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Dr. Olaf Lukk;- 1 have been a resident in Prior Lake for 19 years."
Everyone says that there is of `1
.lack medical service in Prior Lake.
have been looking or ten
g years for someone to come to Prior lake.
have found someone (a doctor to join my clinic) and he has been in
Prior Lake for
two years now and owns a house in Prior Lake. He was
interested in coming to Prior Lake because he has had
from
n
-some patients
Prior lake. For three months he has been working three after-
nouns
a week and he has had nothing to do. 1 don't know how four
doctors can drum up business all
1
of *Sudden when one doctor cannot in
three half da s.
Y My is alicensed architect
-
and 1 talked with him
today and he.said that to build a medical building for lour doctors,,
the highest price is $40,00 /sq.. ft.
w
'
and this comes to $320,000, What
do you propose to do with the extra $300,000?
Linda Hedlin - 1 will be joining Dr. Lukk in October. There i no
doubt in my mind that. the population Prior
:in Lake cannot have their .
medical needs taken care Of'by myself, Or. Lukk or Dr. Magnuson. The
issue of whether more medical
services could be used in thi's.communi'ty,
I do not believe is the primary issue the issue:is should this.be fin-
arced b thi
;
Y particular revenue bond, and does this corporation need
those aforementioned '14 criteria for this
particular bond Issue,
Norbert Traxler - 1 would like to point out that 1 am i New Prague at
least one -third the
of time and I see the City of New Prague and where
it is today compared with the adjacent
cities, Mont
1, and 'back in the 1940' Mont Mont for instance,
gomery and New Prague were Czech towns cam-
Paling against one another and
somewhere along the line they decided
New Prague would promote and establish the Queen of Peace Hospitai. -
Now
6
i f You
Y . go back and take a at the towns, Montgomery has: -one
doctor and two law firms and New Prague has seven
doctors, three c.i.f °rtes,
five: law firms and a shopping area and commercial activit'les in an
Industrial,
coup ex. I t seems l i k4 when you have the services to de Elmer,
You will group other = services around you. We have been living with
the
save medical fac'ilitiy as our population has changed. New Prague has`
Probably tripled'"it
Population. If we are going to go grow and
rather than have people travel
across the river to the Fairview and Metro
areas for medical service, now is the time to make a decision. I feel
that we should go for it,
x
5 ;
° u *mow»•.,, „� -3
�,
` �- 44�
WIN
. MINYt1Et of 60 "One N of 111! VNq! C"Nail of ** Vill"* of f Hw take favtbe Cwaly of Sew e W SMh of
' Mi#me"N4 7wdudiai an emmeft Mia i; by said CwReil.
MEDICAL OLIN Norm Erickson - 'If we are going to go and grow, as Mr. Trax,ler stated, lL do
IC IN PRIOR 'believe that the medical
faciiities are certainly important. In
LAKE icular trade, it is certainly one of. the'first asked
questions. lhat
the diedicalfacilities, what are the school situations, the thurches, etc, "
It was hard,
years before to get; a general practitioner to came into small
towns, and when we do have someone that wants
to come in, that is something
that is exciting to me,
Jenny Stack - I am very favorably with the proposal, it wili'be
a very assetc'to our community. At this time, the cost does seem high.
however, the additional space
way not be needed now, but certainly will be
needed in the future. I.would much rather have the medical clinic here;,
because 1 do drive to Shakopee for medical, services and sometimes that drive
is to the detriment to, anyone that has
to make it. I'.am very much In favor
of the proposal. ;.
Frank Lyons`'- 1 am speaking for some,of the Seniors of Prior Lake, it^
t,
would be.a good thing to have the clinic in Prior Lake for the convenience
and necessity of the Seniors, because in the winter time it is very hard
to drive to Shakopee when the roads are bad,
Marilyn'Overmire - We are in deed in an energy crisis now and as a potient
who drives
to Shakopee, it is, very important that we took at the ecomony
situation as such and keep it in, mind when
voting for or against. the project.
g
Robert Levy -,,Mr. Levy made a few more comments regarding the` and
also answering_ some'of
the questions the audience had.
Mayor Stock - The Mayor stated that the comments that were heard tonight
will be 'taken under advisement by the City Council. The City's
Consultg
Agent will make additional coniients on l.ution 79 -25 and also on
i
revenue bond financing,
Steve Mattson - Consuiting Agent for the City from Juran and Moody.
Metro Meats caused the industrial revenue bond problem in St. Paui and Fer-
" gus Falls. There were investors that did lose al:ot money; it
-,of was a pro -
blew with a greedy underwriter and greedy investors. Juran and'Moody was",
Invited to se the bonds to the public and we declined it because we ,looked
at the financial
statement and it looked very shaky to us. `Whhen you have.,
a high yield"on a bond issue the higher the higher
yield the the risk.
The problem Is it was a public issuance. if it would have been a private
placement with an insurance company, savings and Goan or. bank, it would have
not had all the publicity an it. =don't
h think that the City was really
hurt on this. If it is a private placement the City cannot get
�NII
.hurt.
The only - people that card are going to know about it
are the ones directly
Involved in it. it'won't hit the papers.
Resolution 79-25: Basically drafted by me and 1 sat down
Wi th City-Staff to put it together. With 100% financing, investors
are run -
wing wild"in real estate and to protect yourself from high taxes Is the
more you can borrow and the less equi you have in it.the. more tax benefits
YOU (to get high leverage) derive-out
can of it. Most investors feel that
this project Is a good one. A object °to financing things over 100 %, any -:
thing other than the project lost shouid'be financed. There are alot of
Investors
that will take a deal on a 100% financing,
If it would help, Juran and Moody can, with Mr. Sullivan,
look through the document on the medical clinic and make sure everyting is
j
Or. Olaf Lukk Q- Dr, Lukk made additional comments.
Mayor Stock - 1'f - there are no further comments then I will close this por-
tion of the public hearing and open it Council
9
up to the
comments, for questions and
Councilman Thorkelson „- One question foe Mr. Mattson. Is there any
additiona'i tax, break. to the person who is buying the bond',
Mr. Mattson - No, the seller,
1
a; .
i
e t
_:.
MNittfEt of IAe h�NdMgs ai the CwweN Me VINr,e of hies take iw Ike CwM of s" 0" S1de of
Miwwee� iedwiMa eN wewNs eudlie�l b eam Cerwell.
�,�._,
-� MEDICAL
CLINIC IN
Mayor Stock - When looking at the resolution, l was looking at ail 14
criteria not just one certain one that
PRIOR LAKE
would apply to revenue ;bonds.
`
Councilman- Thorkelson - why was all the
in the document prepared for the Council' + clinic dated
on
in 1970?
David Fleming - It was the best hard data that we could come up with
:; this time, because the next current
k
un inforwtion will not be done
anti 1' 1980.
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Councilman Cusse - 1 feel the Staff should further review ;this.
t
Counciiman "Watkins - I feel that one mad cal ciinic should c
the other to help the needs of
the City. There-are nunicipal�reve
bonds available in all communities and the resolution the Council
passed will help them
to look at it as a business venture
and no more and approve it or' disapprove it, not to say that
certain businesses may locate and certain businesses
' jam
may not
Mayor Stock Residents going across the river to receive medUca1
services ind�ates� that there is
M
&
a need for more medical facilities
in the area ,, not us for Lake. The purpose of theOpublic hearing
to
x
r
is
generate the ioput`6N01Jh^ public to see if there is a need for an
additi.ot►al medical: cliffit-ain
Prior•__4ke. '
Motion by Busse to take unbr advisement the Information that was pre -
sented here this evening, in
'
this public hearing, for the. ur
the proposal of the n pose of„
partnership of Abrams,
I
Keenan, lynch aid Spagnolie
In reference to a clinic in_,Prior Lake and that the public hearing
be adjourned,
z'
seconded by Thorkelson and 'u
dui p� a vote taken:t was
Y'_passed. i
W
.,. �,
Motion by Watkins -to direct the City Attorney and the.Consultin
as well' as City Staff, to review in depth this>
proposal and repor
back to the Councii with recommendations as to the proposal. They
Y
shall report back on July 2 3,'1979 at 8:00`PM, seconded.by Thorkelson
pon a vote taken it. was duly passed.
t ,'
The following Invoices are scheduled to be paid on tuesday, July 17, 1979;
Mi sc. Oeaart�nents
Metro Alana, 'Inc. Monitoring s.
Coulter, Nelson, Sullivan Frevert Attorney Fees �y 36.00
: °'
�`
Air Cowes. , i nc. 1 .579:.50
Weber Auto Su l Inc, Equipment Repairs 4081.
p Y.
.' .'�
''
_ Vehicle, Repair 53,21
lake Auto Supply Vehicie;Repair
Y
Scott -Rice Telephone Co. Utilities 12,50
it i
_Tom's Mobil Service 509.65
Veh Repair Gas
Water Products Co.' 77;20
Water Meters t l mpvmts. 7.585.50
General Gove k
rnment: '� .
�.
`'I
Bill Cress Retainer Refund S
Becht Construction
Retainer Refunds 4 00.00
gue of M�fnn. Cities . clues
Gross Ind., Services Bidg. Mai'nt. 315.00
The Reynolds and Reynolds Co. 64:80
Su lies
Coast to Coast Store pp 36.60
Equipment.
Prior Lake Aiwerican 20.
Pub lshing `
'Mi'ller /Davi's Co. 76.16
Amer. Linen Su i Co,. Supplies 45.61
E - N. Newstrom p''y Bldg. Maint. 19.75
Bidg. t Pl'mg. Insp.: 1,404.00
Sun Newspapers
PuElishing
Economy Dictation Systems Supplies - 16.64
Robert McAllister 18,75
Dog Catcher 235.00
OSM
Engineering 236..:22
�M1Ni1l: of the hem N of the VIMye CWMM d' the VNB OO Of row take in the GwNy
of iatt end .�
MieeMNe indud� all
ats'rdilid
M Iry'eeid Gw�dl.
Planning:
Franz Eng. Reproductions, Inc. Printing
$ 49,67
'
Engineering
ICO
Vehicle Repair
24.00
Pol tce :
Rob hoe
Prior Lake Motors
mileage
Vehicle: Repair
3.60
75,90
.z;
Uniforms Unlimited
'Equipment Repair
94.75
Hoeppner Electronics
Supplies
191.00
Fire
Fire Chief
Jim 'Weber
Subscription
15.00
Grossman Chevrolet, Co., Inc.
Convention
Vehicle Repair
60 .00
€t 600
E., C. Peterson Co., Inc,
Equipment Repair
19.35
q,
Park
Sears
Solheid Candy ` Tobacco Co.
Supplies
Concessions
S 139
�
°.
.°
Northwestern Be.t 1
Utillties ,.
1,270.30
61.`:96
AndraNS,RexaTlxOruv
Park Program Supplies
14.65
ABJ Enterprises, Inc.
Shakopee Public Utili Comm.
Contract Payment 12
:13.974.00
Taylor tental Center
Utlltties
Rentals
9.oif
31.60,
Hawser's Super Value 11
Satelti,te
Park Program &`Concession
163.10
;.,
R
l!inn...Toro, Inc.
Rentals
Repairs
161,12
153.46
ten Franklin
Park Program Supplies
t '' 14.63
Street:
Savage Tire Service, Inc.
Z, 9 Alrsignal international
Repairs
_ 19.E
Prior Lake Aggregates, lnc.
Rental
Rock
27,00
Electric Service, Inc,
Re pairs
100,00
00.
M1ecQueen Equipment.
q pwent, Inc.
Repairs
165.2b
,
Wx Mueller t Sons, Inc.
Prior Lake Blacktop,.Inc.
4Bitumfsous
72.00
C>
J. L. Shlely Co.
Blade Ren al
Rock
142.50
113,86
Sewer.:
Schrader Block Co.
Pumping 4
uwtpin
35.00
1;.
l;
nley Sawer Service
��
Pumping
4 30,00
' `
General Melding.
Installment
E
10' 846.1.9
y
q u ; pment
1 39-40
Water
°
§., Serco Laboratories
Hater Tests
$ 24.00
KF
°`
01seased Tree :: `-
{
4
x ,
Noreen Crook st. Ent,
Dumping
S 690.00
`Sand Pointe Construction Fund:,
OSM
Moody's Investors Service,; Inc.
Engineering
Bond Rating
v5 326.84`
375.00
}
MMiY1/S of *A fnperiep of $be VINW Co of 60 ViNya Prier
of teioa in lM CwniV
of Sank MW Slele
of
., .
i '
ilAiepesdor to bWhW eN.oepwu Miler by ow=toeeeN.
,•z'
, :•.
Martinson island Sewer and Water Construction Fund:
r >`
°iMkw.
OSM Engineering�t
Chapin Publishing' °Co• Publishin
$
9
86
8600
1 977 Wagon Bridge Sewer and Water Construction Fund _
-
OSM' Engineering
38.27
1977 Spring Lake Sewer and Water Can Fund
St. Regis Paper Co.
OSM Repairs
$ 22b.68
f
Engineering
565.0j
Debt Service Fund:
American National Bank S
Trust Co. Bond Payment.
American National Bank 6 '
$ 360.
Trust Co. Bond Payment
5.507.50
Motion by Watkins to adjourn, seconded by Busse and upon a vote taken
this meeting was adjourned at 9 :22 PM.
Michael A. McGuire
City Manager
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c 1
1
a
+ it
v _
n - _
MINU?Et of The ftefteanp of tM 1/iMsae Cewieil of tla V{Npe of hMr leis M CewMr of Sew sad tee Of,
the
MIOO6081"t iadwdiM ON ecrewls wdNed ►1r said Cwaa.
r ;
Ju 9, 1979
�
The Commom Council of the City of Prior or Lake met in regular session on
July 9, 1979 at 7 :30 PM. Present were Mayor Stack
It
;'
Councilmen
$issonett;. T - • Busse,.
, horkelson, Watkins, City Manager McGuire, City Engineer �
Anderson, Finance Teschner,
Director and Attorney Sullivan.
Mayor Stock called the meeting to order. The following correction is
to be made to the minutes of July 2, 1979:
Y
K
Page 2 paragraph 5; correction of the word deiet to delete.
MINUTES
Motion; by Busse to approve the minutes of Jul 2 1
Y 979 ac amended':,
l
seconded by Thorkelson and upon a vote taken it was duly passed..
CRIMINAL JUS-
TICE ADVISORY
COUNCIL
The-Council, reviewed the draft for the B ,.w
Mice Advisory Council, yl ws for the Criminal Jus-
1' 'Action.
Mayor 'Stock . requested the Council to think of someone in the cowwunity,
or if a Councilman would like to volunteer,
to serve on the, committee.'
on this w i l l be taken at ano titer meetin 9 • , M?jyor Stock accepted
the By -Laws of theScott County Criminal Justice'Advisory Council.
•
ENVIRONMENTAL
HEALTH PROD.
The Council reviewed the r d
p opose Environmental Health Program.
°
?
,
Mayor Stock is on that committee and briefly explained what the committee
does. Mayor "Stock accepted` th s report
as informational loterial.
w '
JOHN LEWIN;
Mr. John Lewin was present to ask the Council what he should pay for
the auger Ing'sewer service.
The total cost is $5,881.
-�
Mayor Stock recommended' that the City assume the cost of a 1'1ft pump
for $ and credit this amount against
the Au ger bid of
Mr. Lewin would' then $5,881.41,
the difference of $3,'99$.64,
�» r,
_pay which would be
Put on the assessment roil.
G;
Notion by Watkins for the City to assume the cost of the lift pump for
$1,885.77 and to credit this amount against the for
auger bid of 55;$81
seconded by Busse and upon a vote taken i t was dui Y Passed.
a� t .
4IGNALS AT
3
City Engineer Anderson reported that he had a meeting' with !h /pot and
they will be
accepting,bids for the project of installing signals at
CSAH 42. and TH 13. -
'f
t ,
BROWN WATER'
Council had A' d i scuss ion on the waterr' sample 'that one resident brought
in. The water was brown
r T
with, deposits that had settled at the
bottom of the jar., Councilman Thorke'lson a so stated that he has
Gi
had
Problems like this with K water.
y
The City Engineer is to check this out and re Port back to the.Counc 1
at-a future meeting.
. "
k �
o KOPPS BAY
MARTINSON_tS
The'City Engineer reported that the Kopp's Bay and Martinson
project`is near completion.
,,The contractors are laying ; the sod.
a
4TH OF JULY'.
•.
Mayor Stock read a letter he received from Mary tund Prior Lake Asiociat.ion,
thanking the City of Prior Lake City `of
and Staff for making the 4th
July celebration a success.
# :50 PM
At this ti "me, Mayor Stock called a recess with the Public Hearing to recon_-
vene At 8 :00 PN.>
8:00 PM
Mayor Stock called the Public Hearing to order.
I
< �
t
MINUM of 1IN Phceadlow of NN VIMpo Cwedl of NN VINW of bier IS" is ' !
tM �!
^'1 of Slog ead $14" of
. MiMNNo. iwdrriwY aN accwwh arrihr bys�id Cwwnl..
REVENUE BON Mayor Stock read the public hearing notice that was printed in the Prior Lake
GUIDELINES ,American.
SHAKOPEE ME
CLINIC IN Councilman Bill 8'issonett asked to be excused from this ' public
-PRIOR LAKE all public hearing and
Participation.
Mayor Stock - Explained the procedure for tonight's hearing and discussed
Resolution 79-25, Revenue. Bonds
Guidelines.
David Fleming - Partner with Abrams, Keenan, Lynch and Spagnolia and also
Administrator of the Shakopee Medical Center,
i
PA in Shako
of T Shakopee. He introduced
Robert Levy Thompson, Neilson Law Firm, counselor for this matter.
Robert Levy - Issuance of a bond according to MSA Statute 47k is to serve
economical development within the City which the is be
project t located.,
There are specific ways in which that can take place. We are looking at
two primary areas. i) Direct increase in employment` within the City. It is
estimated that there would be approximately 18 new jobs
created in connection
with this project. 2) Increase in the tax base. A nice new medical build-
ing would be.a benefit to the community through the
result in an increase -
in the tax base. 3) Keeping the people within the City for medic&]
ser-
vices. If they stay in the City for medical services, other businesses
in the City can fulfill their needs.
This proposed project and issuance of the revenue bond or
note is to be sold and purchased
i
only to :a single institutional 'investor.
We are not looking at a public offering or a private placement with
multiple issue or "more than one holder. There would be a single purchaser. '
It may be that there wi be a construction investor
that the bond,,might
be done on the basis that would allow for construction loan to be done
under the bond and that upon completion of the improvements it would be
sold by the construction lender
to the permanent. lender. It is possible
that at one time one bank might hold the bond during the period of
construction and upon completion it would be sold to an insurance company.
We are looking at a proposed sale of this bond 'Towle
through the 'Company.
to an insurance company, which is in line with Resolution 79 - 25.,`
Abrams, Keenan, Lynch and Spagr_olia is a partnership which
consists of Physicians who make up the Shakopee. Medical Center along
with Mr. Fleming. The Medical Center would be the primary tenant of the
building providing, related
medical services. The partnership would enter
Into a lease with the corporation. We are not dealing with outsiders,
we are dealing with two related entities and two members are residents of
Prior, Lake;.
�
,
David Fleming - The Shakopee Medical Clinic has.noticed a trend In the
number of ears that man
Y y patients have come from the Prior
2i k
Lake area.
As the area has grown we have found that people have traveled to.Shakopee.
Sundance Medical Clinic
;
said that 22% of their patients have come from the
Prior Lake area. St. Francis Hospital indiacte'd that a clinic facility
In Prior Lake is necessary for the survival of the hospital. Prior Lake
Is the cost logical extension of providing medical
i
t
services; 70$ of the
Patients In the Jordan, Lakeville and Prior Lake area go outside the,com-
mity for care. The clinic in Prior Lake will be related to the Shakopee
:Medical Clinit. and be financially entwined,
however, will be a separate
entity with its own staff. One doctor will 'rotate from the Shakopee
rt Medical Clinic and one new Physician will be Hired. Over the.years, there
wilt be two physicians, occupying
6 exam rooms and employing about 11 -12
People. The 4,000 sq. ft.. of clinic that Shakopee Medical Cl'ini;c. will be
renting will include complete lab and X-ray facility, minimizing patients
transportation for further
analysis and diagnosis and also a small timer-
g e are area whic:1 would minimize transportating patients outside the. community.`
i proposing to build an 8,000 sq. ft. building with capacity of 12,000
ft.
sq,. The 4,000 ft. expansion cannot be predicted when it will take
place, however, one -half of the 8,000 sq. ft.
will go to the Shakopee
Medical Clinic and the other half will be devoted for office space "for
i
specialists. We have received many inquiries from specialists interested
in getting Office space from this clinic.
;
u
1
-2-
Norbert Traxler - I would like to point out that l in New Prague at
least one - third of the time and 1 see the City of New Prague ' where
it is today compared with the adjacent cities, Montgomery, for instance,
and back in the 1940's Montgomery and New Prague were Czech towns com
peting against one another and somewhere along the line they decided
New Prague would promote and establish the Queen of Peace Hospital.
Now if You go back and take a look at the towns,, Mont has
4
4 1 1 ,doctor and two law firms and New Prague has seven doctors, three `five law firms and a s ti
l am`
industrial c �PPing area; and commercial activities in an
omplex. It seems like when you have the services to d:iiver,
YOU will group other services around you. We have been living with the
same medical facili't'y as.our population has changed. New Prague has
Probably tripled it population. If we are going to go and grow and
'rather than have people travel across the river to the Fairview and Metro
areas for medic service, now is the time to make a decision. I feel
that we should for it.
J
iIAMy?!S of T 1'reaaiiMs of the VV14W Cwweil of 60 ViN"o of Pries leke i
in the Cwp1y of Sera1t eed Stria of ,
Mirw�h. iwdrriwg eN raarrais rriihr y► said Cwwdh
*�+ M
MEDICAL D
David Fleming - The Shakopee Medical Clinic and the
I
` e
PRIOR LAKE i
Lake is a
who currently reside in Prior Lake and
give us an opportunity to provide service to Prior Lake as it, g
grows
and it will affect and i mprove the utilization of ali health care pro-
viders within the communi
Peter Patchin - I should have been here earlier when
tion 79 -25. 1 am a little more than disc You-passed,Resolu-
what advice d
l d
strongly that
this
is a very unsound method of financing. Anytime a borrower has zero
almost too easy to walk away and the
responsibility and pressure of good management does not exist. They
are asking $$7.50 a s
sq. f
one. What wor-
ries me is that the 'City of Prior Lake�bas to endorse this. If they
want to do this, why don't they do it o
on their own. In my recent ex-
perience in the last ten years, in appraising and financing these pro -
jects, 1 would have t
to compare the sudden surge toward revenue bond
financing to the limited partnership scam, what it t
turned out to be,
and ;bankruptcy was spectular. It's bad enough when.,the City has to-
endorse financing in order to g
get a tax exempt. The City'does' not have
any direct obligations on this, however,, the City's n
e
name i
They are suing_ not only the borrower
but the City. I ask that you go and talk to th
them about it. It's a risk are taking and 1 don''/t O
this thing was resolv
The application might be the most meritorious ever, I don't p
t m
pass j
ment on that, i just pass j udgement cn what , i. think is a very risky
for the City of Prior Lake
to be endorsing,
r I
-Dr. Olaf Lukk,- 1. have been a resident in Prior Lake for i9 years: t
I
service in Prior Lake,
have been looking for ten years for someone to tome to Prior Lake,
have fosnd someone (a doctor °.to join my clinic) a
and he has been in
• P
in Prior Lake. He wa
interested in coming to Prior Lake because he has had-some p
t
patients'
f d
Dons a week and he has had nothing to do, i don't know how fr+u;'`
of a sudden when one doctor can t in
three half days. My son is a. licensed architect a
.•, t
ar,.d'I talked with him
and this comes to
do you Propose to: do with the extr $320,000„ What
a 00<
$3 ,
} L
,000?
,i-n P
of whether more medical seM ces could be used 'i in th i s ycommun i ty,
i do not believe i
is the 'primary issue, the issue is should t�i is be fin-
anced b this
Y particular revenue bond, and does this corporation n
need
,
s
40""" of iho fvwediep of the Vm qp twadl of the VING" of Prier lean in 1M Coumty of $Celt Ued Sh" of
None le. inCludiee,•N eeesuab ewlift by teed Covedl.
MEDICAL CLIN Norm Erickson If we are going to go and grow, as Mr. Traxler stated, I do
IC IN PRIOR believe that the medical facilities are certainly important. In my part -
'LAKE LAKE icular trade, it is certainly one of the first asked questions. What are r
the medical facilities, what are the school situations, the churches, etc.
It; was hard, years before to get a general practitioner to coma into small
towns, and when we do have someone that wants to come in, that is something
` that is exciting tome.
Jenny Stack - I am very favorably impressed with the proposal,, it will be
a very great asset to our community. At this time, the cost does seem high,
however, the additional space may not be needed now, but certainly will be
needed in the future. 1-would much rather have the medical clinic here,
because i' do drive to Shakopee for medical services and sometimes that drive
is to the detriment: to anyone that has to make it. I am very much in favor
of the proposal.
Frank,Lyons - l am speaking for some of the Seniors of Prior Lake.,, it
would be a good thing,to have the clinic in Prior Lake for the °convenience
and necessity of the Seniors, because in the winter tilde it is very hard
' to drive to Shakopee when the roads are bad.
Marilyn`Overmire - We are in deed in an energy crisis now and. as a
who - patient
drives to Shako
pee, it `is very= important that we at the ecamwry
P situation as such and keep it in mind when voting for or against the project. t
Robert Le
v < vy - Mr. Levy made a few more comments regarding the proposal and
also answering some of the questions the audience had,
Mayor Stock - The Mayor stated that, the comments that were heard tonight
will betaken under advisement by ti'ae City Council. The City's Consulting
Agent.will make additional comments on the 'Resolution 79-25 and also on
<u revenue bond financing.
Steve Mattson - Consulting, Agent for the City from_Juran and Moody,
` Metro Meats caused the „industrial revenue bond_oroblem in St. Paul and For-
gus Falls. There were inwestors that did lost ae t of money. It was '& pro-
blem with a greedy underwriter and greedy investors. Juran and'Moody..was .
invited to sell the bonds to the
- public and we declines it because we looked
at the financial statement and i't looked very sbaky to us. When you have
a high yield on a bond issue the higher the yiei`d the higher the risk.
W . The problem is. it was a
Public issuance. if it would have been ,,& private
_ Placement with an insurance ;o+mg: "iny, savings and loan 'or bank, i't would have
il S had all the ;publicity I don't think that the City was really ,
hur
i t
'on this,_ ,,If it is a private_ placement the City cannot get :hurt.
Y
The only ;peopie that cam are going to know about it are the ones diractiy
involved in it. It wont hit the
Papers.
x Resolution 79-25: Basically drafted by me and U sat down
with City Staff to put it together. With 100% financing, are run-
,riing wild in,real„ estate ono ;o protect ° yourself from high taxes is the
more you can borrow and the less equity you have in it thi�more• tax benefits>
you (to get high leverage) can derive out of it. Est investors feel that
this project is a good one, 1 object to financing things over 100%,, any
thing other than: - project cost:should'be financed. There are &lot, of
Investors that will take a deal on a 100; financinc:
if it would help, Juran! and ftiody can, with Mr. Sul] Ivan,
.,1 ill look through the: document oil the medical clinic and make sure everytin is
In order. g
<,x
Dr.; Olaf Lukk - Dr. Lukk made additional commepts.
Mayor Stock 'f there are no further "comments then I will close this por-
Lion of the public heart, sg and ?pen it up to the Council for questions and
coardents.
Counc imam'Thorke)son - One question for Me. Moats Is. there any
additional tax 5rear to the pdz�son whd'is buying the bond,
c Mr. Mattson - No. the,sellerz 4
. ,
t �y
1 1
lIArN�111Tlt of IAe f ""di"s of at Vft" Cut"" of Ms viNMe' of hiM lah In 60 ce" of 3"ai SNM of
�+
miftw6618, Indus" eN earwh s Ch"
MEDICAL '` Mayor Stock When lookin ,
the resol ution, i
CLINIC IN criteria was looking at all i4
not just one certain one that
t aro
PRIOR LAKE would apply to revenue bonds..
.
Councilman Thorkelson - why was all the population etc`.. information
in theodo:ument prepared for the Council
in 1g70 on the medical clinic dated
ate
David Fleming - It was the best -hard data that we could cane up with .,
at this time, because the next current
info
until 1980, rmation: will -nom be done:
Councilman Busse - 1 feel the Staff should further review this,
tv
Councilman Watkins - i feel that'one medical clinic should compli
the other to help the needs
of the City. There are municipal revenue
bonds available in all communities and the resolution the Council`
;7
passed will help them to look at It as a business venture
and no more and approve it or disapprove it. , not to say that
certain businesses may locate and certain businesses
j
r=
way not.;:,;
#
Mayor Stock - Residents going across the river
to receive medical``
services Indicates to me that there is a need for or sore medical facilities
in the area,
not just Prior Lake. The ur
to 9enerate the Input of the p Pose of the public hearing is
public W see if there Is a need for an
additional radical clinic ;h Prior lake;
Motion by Busse to take urder•advisewept the information that was pre
` sentad here this evening, in
this- p4bl,ic hearin g for .the purpose of
the proposal of the 66ms, Keenan,
partnership of A
M
lynch and Spagnolia
In reference to a clinic in Prior lake and that the PUW hearing
be adjourned,
seconded b Thorkelson and u
y pon a vote taker, it was
duly passed.
Motion by Watkins to direct the City Attorney and the COn suItIh
as well as City Staff, 9 Agent,
to review in depth this pr and-,report
Sack to the Council with recommendations ,
as to iheoposal
rt back on'Jul y 23; proposdl . They,
1979 at 8:00 Pm,-seconded by Tlarkel.son
and upon`
vote taken it was duly passed.
T" followln5, invoices. are scheduled to be ;paid on Tuesday, July,, 17, 1979:
=
Mist. Deaartments::
Metro Inc.
,Alarm; Ma�itorin g'�'�' $ 36.00_
Coulter; Nelscn, Sul l swan C Frevert "" httornay Fee's T,575,50
Air Coww., Inc.
�. Equipment Reairs, 408.00
Weber Auto Supply, Inc.
Vehicle Repair
Lake Auto Suppl 53.21
Scott- e,Repalr
phone Co. Utilities 12.50
Telephone ,
Rice' U tili
Tow's Mobil Service 509.65
Water Products Co. Vehicle Raps r: i Gas 77.20,
1
1
- Water Meters a iiazovnatr., 7.5$5.50
--
General Government:
,
i
Bill Cress
4onitt Construction Retainer Refund $ 100.00
Retainer Refunds -
League of Minn Cities 400.00
Dues.
Gross Ind. Services 315.00
Bldg. Maint. 64.80
The Reynolds and Reynolds Co.
3_
Supplies 36.60
Coast to Coast Store Equipment 20.95
Prior Lake
�\
American Publishing
Miller/Davis
Co. 76.16
Amer. linen Supply Co. Supplies 45.61
Bldg.
�j
i
Maint.
E. M. Nawstrom 19.75
Sun Newspapers Bldg. t Pimg. insp. 1,404.00
Economy 0lctation System Supplies Pubiishin g i6.64
Ct.
Robert. McAl;listar cher 18.75
OSM Dog Cat` 235.00
Engineering 236.22
1
:. Prior Lake Biackto inc. Blade Rental F 72.00 ,
p. 142. ,
J. L. Shlaly Co, Rock 113.86
Ser+ar
' Schrader Slack Co.
Pumping, 35.00
McKIntey Sewer Service
*CC
, Pumping
430 .00 r
Installment 10;846.19
General Welding Equipment ,
Water:
z, 139.40
Laboratories Water Tests �$ 24.00
Diseased. Tree:uti k
4Normen Cracks,
Dumping $ 690.00
v
Sand Points \ Canstruction Fund:
OSM Engineering.
S 326.84 �q
Mawdy's Investors Service, Inc. Bond Rating 375.00
l -6-
MItr111l: of 60 h of Mae Von" CGeadl Of the. VINW of F W f
y . M
flea i
of 3celt:ead 4 ft% ei'`
MMe. iadudwe an e
ecpwNs ewlifed
Planning
Franz Eng Inc. Printing $
$ 49-6
Engineering
1CO V
Vehicle Repair $
$ 24.00
Poli ce:
Rob Boo M
Mileage S
S
Uniforms Unlidited 7
Equipment Repair 9
75. 90 t
r
%eppner Electronics
Supplies
191.00
Fire:',
Fire. Chief
. S
Jim Veber C
Subscription
S 15.00
�} G
Grossman Chevrolet Co., Inc. V
Vehicle Repair
27,95
a , E
E. C. Peterson Co. ,.Inc,, E
Equipment Repair 1
19,35
1 P
Park
Sears S
Supplies S
S t ! 139.38
.Northwestern del 1, � U
Utilities 6
61:.96.
AAndrews
Reza l l
Drug �� P
Park Program Supplies 1
14
1Gftuserls 9
Shakopee Publ Utili Comm: u
Contract Payment #2 ;
;'l3,974.00 `
`
Taylor Rental Center R
Rentals
9,'� S
Satel lite S
Park P P
163,10 '
'!
` 5
Minn. Toro., Inc. 1
Rentals
141.12
"Ji r
r.... ;
5 1
Ben Franklip a
ark Program Supplies 1
14.63 „
„
;
t..- r
r
�s : ,
Street' ;
;
Savage, Ti re;Service, Inc. R
Repairs
S. 19.00
Airsignal international R
Rental S
27 00,
Prior Lake, Aggregate, Inc. R
Rock, 1
10 2
Electric Service, Inc. R
Repairs 1
100.00
MacQueen Equl`peaent, 1 nc.. °
° Re ' i rs_' 1
165.20 °
°
•*_ i
ii Mueller: t Sorts, Inc. B
Bituminous
n
AVWJM N tM N' Of *0 VNINo CoeOeN of Mo VW4" of Mer lake' M The CoO1MI► of 3ft* amd
of
edwliwI ON eeewMs WAINed by said Coeedl.
'
Martinson Island Sewer and Water Construction Fund:
OSN Engineering
Chapin Publishing Co. Publishtn
$10.834.73.,
g
86.00'
1977 Wagon Bridge Sewer and Water Construction Fund_
OSN Engineering
$ 38.27,
1977 Spring ,lake Sewer and Mater Construction Fund
;
y
�K �
St. Regis Paper Co. Repairs
OSM `Engineering;
$ 224.6&
565107.
Debt Service Fund:
\ ,e
American National Bank a
Trust Co. Bond Payment
American National Bank b
$ 360.00
j:
Trust Co. Bond P aymeot
5.5Q7..50
�,
1`
aE
Motion by Watkins to adjourn, seconded by Busse and upon a vote taken
this meeting was adjourned at 9 :22,PM.
4
rl
s
r
Michael A. McQtre
City Manager
.:.
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e.
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...