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CITY COUNCIL WORK SESSION MARCH 7, 2001 <br />TERMINATION OF DEVELOPMENT AGREEMENT, H&L MESABI, MARY <br />ALICE DIVINE <br />Economic Development Assistant Divine advised H&L Mesabi has run into some <br />setbacks that changed the outlook for the construction of this metro area facility. Because <br />H&L Mesabi has not begun construction of the building in the Apollo Business Center, <br />the company is in default of its development agreement. The president of the company <br />was sent notification that he had 30 days to cure the default by providing evidence of his <br />intent to complete the facility. He selected not to cure the default. Staff is recommending <br />the Council pass a resolution declaring default and terminating the development <br />agreement. <br />This item will appear on the regular Council agenda Monday, March 12, 2001, 6:30 p.m. <br />MOLIN CUP UPDATE, JEFF SMYSER <br />City Planner Smyser advised a memo was sent out in the id up indicating what <br />information staff currently has regarding this issue. Au y h not yet been <br />completed. Staff will be having a meeting with Mo in. <br />Council Member O'Donnell asked if the City <br />regulations. City Planner Smyser stated the <br />up beepers have been in place for quite <br />regarding this issue. The option rela <br />Council Member Carlson aske <br />Zoning Board and City Cou <br />Smith advised she will lo <br />ceiv larification on OSHA <br />cated regulations regarding back- <br />taff needs more clarification <br />ights is still being looked at. <br />s the meeting tapes from the Planning and <br />this issue was discussed. City Administrator Waite <br />ing the meeting tapes. <br />City Planner Smyser a <br />Council. <br />will continue to research this matter and update the <br />2001— 2003 UTILITY RATES, JOHN POWELL/AL ROLEK <br />City Engineer Powell distributed and reviewed a handout that outlined an analysis of <br />sanitary sewer rates for "Flat Fee" versus "Usage Based". The handout included a <br />comparison of other cities. It was noted that if the rates are based on actual usage, a <br />meter would have to be installed in approximately 250 homes at a cost of $50,000. It <br />would take approximately 1-2 years to meter the homes. City Engineer Powell advised <br />staff is recommending the Council adopt the new rates as previously proposed. <br />Council Member O'Donnell stated he thought the City was going to try to base the sewer <br />fee on water usage. City Engineer Powell stated the sewer and water charges are directly <br />related. He explained how the usage figures were obtained. <br />4 <br />