Dirt work started last week on the 2000 street project as earth movers cleared sod and leveled the landscape for the Spruce Street extension on Project 55. The project will entail adding curb and gutter to the area as well as water and sewer service.City engineer Pete Carlson told the council at their Wednesday night meeting that crews were to start removing pavement on Augusta Avenue Monday.
Carlson informed the council that Augusta Avenue and Railroad Street by AMPI would be the first area to have the pavement removed from the streets for the 2000 Street Improvement Project.
"Kuechle Underground, Kimball, will have two to three crews in town," Carlson told the council.
Monte Eastvold, city financial advisor, talked to the council about the general obligation improvement bonds which will finance this year's projects. The bonds will be spread out over a 10-year period. Eastvold advised the council to request a bond rating. A good rating could obtain the city more interest from buyers when selling the bonds. The city will be selling $1,280,000 in bonds. The sale of the bonds will be finalized on April 26.
Orderly annexation
Representatives of the city and the Paynesville Township have reached an orderly annexation agreement. The council approved the agreement Wednesday night. The township board approved the agreement at their Monday night meeting.
The agreement still needs to be approved by the Minnesota Planning Board.
A joint planning board will be formed to take responsibility for zoning and planning within the area of possible annexation. The board will consist of five members: two from the city, two from the township, and a fifth member elected by a majority of the four members.
The agreement is intended to deal with areas of the township which are likely candidates for future city development.
Identified as possible annexation areas were: land located south of Project 55; property on the east edge of town bordering Morningside Addition, land adjacent to the Industrial Park, and property on the west end of Paynesville.
"The areas designated within the agreement will not be annexed until the property owners make a request of the city to do so," said Dennis Wilde, city administrator.
The city and township will share tax revenue over a five-year period. In the first year, 90 percent of the taxes will go to the township.
Once the property is developed, the city and township will share the tax revenue equally in the third year of the agreement. In the fourth year, 30 percent goes to the township and 70 percent to the city. In the fifth year, 10 percent goes to the township and 90 percent to the city.
If the property is not developed within two years, the taxes will be frozen with 70 percent of the taxes going to the township and 30 percent to the city until water and sewer services and curb and gutter are installed.
Minnie Street extension
Ron Mergen, public works director, informed the council of the costs associated with the Minnie Street water and sewer utility extension.
Mergen told the council they have two options to provide services to Cyrill Fredrick. It would cost approximately $8,155 to excavate the street or $9,086 to bore underground from the manhole to the Fredrick home.
Mergen said the directional boring would be less disruptive to the area. At a previous meeting, Fredrick agreed to pay $7,500 for the services. The Fredrick home is located on the west end of Minnie Street. When the street was improved in 1993, services to the home were overlooked. The home is presently served by a well and septic system. A public hearing will be held on April 26 at 6:30 p.m. to review the project.
Other business:
•The council approved paying $5,500 per acre for 12.5 acres on the east edge of Paynesville for a new well site. Carlson said the public works committee recommended purchasing 12.5 acres. Jeff Ampe also gave permission for a water main easement on the south property line.
•The council approved hiring Mid-Minnesota Development Commission, Willmar, for building inspection services. Bernard "Butch" Schulte has been assigned the city's official building inspector. Their fee is $39.50 per hour, plus mileage. The building permit fees will go to the city. In the past, 85 percent of the fee went to the inspector as his payment.
•The council appointed Rhonda Hunt to the deputy registrar position effective March 20.
•The council appointed Chris Stanley to fill the vacant position on the Economic Development Authority of Paynesville. He replaces Troy Stang as the Chamber of Commerce repre-sentative.
•The council approved a $7,000 donation to Paynesville Township for the skating arena.