HomeMy WebLinkAbout2019-01-16 Jtn EDA & P & Z Packet enteryiffeCITY OF CENTERVILLE
rs �r�yrea ;. JOINT MEETING OF THE ECONOMIC DEVELOPMENT
AUTHORITY AND PLANNING AND ZONING COMMISSION
AGENDA
Wed nesday,lan uary 16, 20,19
6:30, p.m. or shortly thereafter
I. CALL TO ORDER
IL SWEARING-IN OF NEW MEMBERS
1. Mr. Michael Giovinazzo
2. Mr. D. Love
3. Ms. Michelle Lakso
III. ROLL CALL
1. Economic Development Authority
2. Planning and Zoning Commission
IV. APPROVAL OF AGENDA
1. Call for Changes to the Agenda
V. APPROVAL OF MINUTES
1. December 5, 2018 Meeting Minutes
VI. BILLS AND COMMUNICATIONS
1. Bills
(a) None
VII. REPORTS
1. None
VIII. OLD BUSINESS
1. None
IX. NEW BUSINESS
1. Downtown Block 7 Presentation
(a) Truline Construction—Chris Harchanko
X. ADJOURNMENT
*INFORMATIONAL MATERIALS**
201 a( 0ty C i�en(l r
*REMINDERS**
�)&]�. .oniniktee e(]n s(1,iy, )ecenber , 201 6.30 f,) iii .qty l(,ii � ((-)I'I'icc Ai•e i)
".guy CouncH Wednesday, December 12, 2018 6-30 p in Oty I kiH
L,DA Wednesday, January 16, 2011) 6-30 p in Oty I kik (Jout Mtg w/P&,Z)
CITY OF CENTERVILLE
ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES
December 5, 2018
6:30 p.m.
Pursuant to due call and notice thereof, the City of Centerville held a scheduled Economic
Development Authority meeting of October 17, 2018 at City Hall, 1880 Main Street.
PRESENT: Jeff Hanzal
Jim Weatherhead
Council Member Steve King �il@p „
0 t
ABSENT: Mayor Paar
Vacant Seat
STAFF: City Administrator Mark Statz
City Attorney Kurt Glaser
.....................................................................................................................................................................................................................................................................................................................................
I. CALL TO ORDER
President Hanzal called the meeting to order at 6:30 p.m.
II. APPROVAL OF AGENDA
The order of the agenda was changed to allow the presentation by Northland Securities to go first.
Motion by Commission Member Weatherhead, seconded by Commission Member Kine to
approve the re-order of the agenda to hear New Business; Item 1 ahead of old Business. All
in favor. Motion carried.
III. APPROVAL OF MINUTES
President Hanzal asked if anyone had changes to the minutes for the September 19, 2018 meeting.
Hearing none, he entertained a motion for approval.
Motion by Commission Member Weatherhead, seconded by Commission Member Hanzal
to approve the Minutes of the September 19,2018 Meeting as presented.All in favor. Motion
carried.
President Hanzal asked if anyone had changes to the minutes for the October 17, 2018 meeting.
Hearing none, he entertained a motion for approval.
Motion by Commission Member Weatherhead, seconded by Commission Member Kine to
approve the Minutes of the October 17, 2018 Meeting as presented. All in favor. Motion
carried.
City of Centerville
EDA Meeting Minutes
December 5,2018
IV. BILLS AND COMMUNICATIONS
1. Bills
(a) None
V. REPORTS
1. None
VI. OLD BUSINESS
1. Review Business Incentive Revolving Loan/Grant Program
Administrator Statz reviewed the Business Incentive Revolving Loan/Grant Program and asked if
there were any comments on its specific language or general structure. The consensus of the board
was that they were comfortable with the overall structure but would like to see the program focus
on external improvements to businesses, and lean away from funding things such as interior
remodels, and marketing campaigns.
No official action was taken on this item. Staff will work with the city attorney to customize
language to the city of Centerville and bring a more formal draft back for consideration at a future
meeting.
VII. NEW BUSINESS
1. EDA Powers and Tools Presentation (Northland Securities—Tammy Omdal,
George Eilertson) (This item was handled immediately prior to Old Business,
on the agenda)
Administrator Statz introduced guests from Northland Securities; Tammy Omdal and George
Eilertson. Mr. Eilertson began the presentation with a general introduction to the topic and then
yielded to Ms. Omdal. Ms. Omdal spoke from a PowerPoint presentation which outlined various
economic development tools at the disposal of an EDA. Then, she spent extended time on Tax
Increment Financing (TIF). She presented various types of TIF districts, explained eligible
expenses and discussed how districts may be drawn, and the appropriate lengths (in years) of
districts.
Administrator Statz asked questions regarding the anticipated development of Block 7, in the
downtown and whether there may be an opportunity for a TIF district to help finance certain
expenses.
This agenda item was only for information and discussion. No formal action was taken.
Page 2 of 3
City of Centerville
EDA Meeting Minutes
December 5,2018
2. Downtown
a. Proposed Changes to Downtown Zoning Map/Code/Master Plan
Administrator Statz asked for the board's thoughts on the previously presented changes to the
zoning map, zoning code and Downtown Master Plan. The board continued to show its support
for the proposed changes. With this consensus, staff will bring back a more formal set of
documents for approval.
This agenda item was only for information and discussion. No formal action was taken.
3. Downtown Block 7
a. P&Z Commission to attend regular EDA meeting on Jan. 16 to hear
presentations on Block 7 from interested developers
Administrator Statz stated that he would like to have the Planning and Zoning Commission
attend the EDA's regular meeting on January 16 to hear presentations from developers on their
plans for Block 7.
Motion by Commission Member Weatherhead, seconded by Commission Member King to
invite the Planning and Zoning Commission to the EDA's regular meeting on January 16,
2019. All in favor. Motion carried.
4. Vacant Seat on Economic Development Authority
In attendance at tonight's meeting was Mr. Michael Giovinazzo. Mr. Giovinazzo is a business
owner in town (Michael Giovinazzo Agency; American Family Insurance) and is interested in
serving on the board. With the open position and the fact that the position has been advertised
for serval weeks with no other candidates at this time, President Hanzal asked Administrator
Statz if it was okay to entertain a motion to appoint Mr. Giovinazzo to the position.
Administrator Statz agreed, given the circumstances.
Motion by Commission Member Weatherhead, seconded by Commission Member King to
appoint Mr. Michael Giovinazzo to the open seat on the Economic Development Authority.
All in favor. Motion carried.
VIII. ADJOURNMENT
Motion by Commission Member King, seconded by Commission Member Weatherhead to
Adiourn the EDA meeting of December 5, 2018 at 9:27 p.m. All in favor. Motion carried.
Respectfully submitted by EDA Secretary, Teresa Bender
Page 3 of 3
CITY OF CENTERVILLE
REQUEST FOR ACTION
(t e rville
Agenda Item# Department: Requested Meeting Date:
9.La Planning January 16, 2019
TITLE OF ISSUE:
Downtown Block 7 Presentation - Truline Construction - Chris Harchanko
BACKGROUND AND SUPPLEMENTAL INFORMATION:
Over the course of the past several months, the city and its realtor have entertained several groups interested
in redevelopment of the city-owned, vacant portion of Block 7, in our downtown. The property is zoned
M-1/1\4-2 (mixed use) and has an asking price of$350,000. In conjunction with this project it may be necessary
to complete street improvements on Sorel St. and streetscaping along Centerville Rd. Sewer, water and
stormwater accommodations for this project are all in place, but may need minor rework depending on layout.
Mr. Harchanko's group, Truline Construction, is proposing a 3-story, 63 unit apartment complex with a
reserve space for retail (+/-1600 sf)in on the lower level at the corner of Sorel St. and Centerville Rd. (see
attached plan). Parking is provided through both underground and surface lots. At the time of this report, an
elevation view of the building was not available.
COST AND SOURCE(S) OF FUNDING:
To be negotiated.
REQUESTED ACTION:
Review and discussion of concept plan; direction to staff on next steps.
For Clerk's Use:
SUPPORTED DOCUMENTS ATTACHED
Motion By:
Resolution Ordinance Contract Minutes Plan Map
Second By:
Vote Record: Ave Nay
0 Hanzal Other(specify)
0 Giovinazzo
0 Weatherhead
0 Love
0 Lakso
Refer to:
Consent Tabled Until:
Regular Other:
t
d x,P vt IRXO N(a nStreet,('e itervifl,,N/N55038
651 429 3232 or FI:C 651-429 8629
January 14, 2019
Economic Development Authority and Planning and Zoning Commission
1880 Main Street
Centerville, MN 55038
Dear President and Board; Chair and Commissioners:
As you are all aware, city staff and our real estate agent have been fielding questions
from interested parties in our city-owned, vacant land on Block 7, in the downtown for
several months now. At your joint meeting, on January 16th, we will hear from one of
those interested parties about their vision for this site.
Proposed Structure
Attached to this report are drawings of the site layout and building floorplan. The
proposed structure would be three (3) stories tall, with 63 total units. The rental units are
a combination of one (1) and two (2)bedroom apartments.
Retail
The proposed structure reserves approximately fou uiuiuiuiuiuiuuuuuuuuuuuuu Hi000urE
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1600 square feet of retail space on the first level -I -
(area labeled"coffee"). The space is �
strategically positioned near the corner of Sorel
Street and Centerville Road. The line between
U I Y 14
M-1 and M-2 zoning, currently splits the site Y q a
with the front half of the property beingM-1
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retail required) and the back half being M-2 no
retail required). However, both the EDA and `
P&Z commission have discussed amending the .�.....
� ..
zoning on the entire block to eliminate the need
for retail. Going to an M-2 zoning, however,
does not prohibit the retail component and, from 11STREET
-
previous discussions, it seems as though both
boards would welcome it.
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Architecture
At the time of this report an elevation view of the proposed project was not available.
We expect that the developer will have a sketch of the building prepared in time for the
meeting and will also provide some pictures of example finishes they plan to use. The
city's Downtown Master Plan calls for a French Quarter style architecture among other
elements.
Parking
Parking is supplied through a combination of below-ground and above ground spaces.
Those beneath are provided at a one space per unit ratio (63 spaces). The secured
parking would be supplemented by surface parking (additional 65 spaces), for a total of
approximately two (2) available spots per unit.
City Utilities
Sewer and water service to the site are already in place and are large enough to service
the proposed structure. The current layout of the building would necessitate some
reconfiguration of both, but certainly nothing insurmountable.
Stormwater
The city's stormwater irrigation system in LaMotte Park was designed to accommodate
the redevelopment of the downtown. In the years since the beginning of the recession,
the city has utilized some of the credits afforded by this system, but we are hopeful there
are still enough left to accommodate this build-out. If we lack sufficient credits, we are
confident that there are easy and affordable additions we can make to the system to add
the necessary capacity and avoid any stormwater facilities in the downtown area.
Street Improvements —Sorel Street
It will be necessary to the needed street improvements on Sorel Street, west of
Centerville Road in conjunction with this development. These improvements could be
partially assessed to the few adjacent property owners. How the remaining costs are paid
will need to be negotiated as part of the development agreement. The current layout does
not show the acquisition of the remaining homes on the back side of the block, and
therefore, does not necessitate the improvement of Goiffon Road.
Streetscapin2
The Downtown Master Plan contemplates a streetscaped boulevard along Centerville
Road. Subsequent studies have also proposed a continuation of the streetscaping pattern
from Main Street, down Centerville Road, to at least Heritage Street. That pattern
includes decorative lighting, boulevard trees and stamped, colored concrete. The timing
and logistics of this work would need further exploration, since it may be difficult to
obtain the necessary right-of-way to construct the improvements on both sides of the
street between Main Street and Heritage Street. However, leaving those blocks
unimproved, may render Block 7's streetscaping as an island, without continuity to the
rest of the downtown. Again, the cost of these improvements would need to be
negotiated between the city and developer.
: �uiuiouuu���«i�ss�titititi»r I oouffiil Regional Trail
The regional trail which runs through
�� mmmmm the property may need to be
reconfigured or rerouted to
accommodate the building layout. This
... .....
J should be part of our discussion with
F
the developer to see their preference for
e its eventual location. One option is to
.................... ..................... ............. move the trail to come up Goiffon
_
Road,rather than cutting through Block
7. However, the developer may find
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that having the trail immediately
accessible to their tenants may be
desirable.
El
The above review of the proposed redevelopment plan is a simple and surficial summary
of the various issues surrounding the project. As we move towards the next steps of
exploring an agreement with the interested party, more formal review and discussions of
this and other submittals will be required.
Sincerely,
Mark R. Statz, PE
City Administrator/City Engineer
Attachments: Draft Redevelopment Plan—Truline Construction
Cc: Paul Palzer,Public Works Director
Bruce DeJong, Finance Director
Kurt Glaser, City Attorney
Phil Carlson, City Planner
CENTERVILLE ROAD
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Developer Background Information and Project Narrative:
It was nice meeting with you last week to discuss the downtown build ready pad. It is definitely
intriguing to us. You can find some information on our company and sister companies by clicking on the
link in my signature. What makes our group different is we typically will partner with an investment
group and management group at the planning phase and work together throughout the entire
process. More often than not we end up with ownership in the project which means it is in our best
interest to make sure it is built properly, efficiently, and structured to be sustainable. We do also
function solely as the builder on occasion,we are currently breaking ground on the Running Aces Hotel
in that capacity. Our design team is also working on a number of different city center mixed use
redevelopment planning projects, so we would be happy to participate in the master plan vision for
downtown Centerville. As I mentioned, I live in the area and would love to help grow the community
right in my back yard!
Attached, is a short bio (attached) on the founders of our organization, David Harchanko leads the
development side and will be joining me on Wednesday to share his background and involvement.
We don't like to throw numbers out this early because there are so many variables still but for
discussion purposes only, we are envisioning the property as a mid-scale to upper mid-scale with above
average amenities. We think the area can support$1.50-$2.00 per square foot rent for the units
depending on overall building amenities and finishes. Unit's sizes could range from 650 to 800 square
feet for a 1 bedroom unit, and 1,050 to 1,200 square feet for a 2 bedroom unit. Total project cost could
be between $150k and $200k per unit plus sitework like soil corrections/geo-piers/helical anchors etc.
Recent proiects include:
Hugo, MN
Running Aces Hotel, 5 stories and 116 units. 171;1;I .;;, .. ,cq!,r! II N ?1rI„
Little Crow Resort, Spicer, MN
51 room Grandstay Hotel, Golf Course Pro Shop, Restaurant/Bar with Catering Kitchen, 300 person
event center—Opened Summer of 2018 (see attached pictures)
Windom, MN
47 room Americlnn Hotel—Opened Fall 2018 (see attached pictures)
Milbank, SD
46 room Grandstay Hotel—Opened Fall 2018 (see attached pictures)
Chris Harchanko
TrIII iii iii'ie Car"istructiii ar"i
206 Chelsea Rd Monticello, MN 55362
rnobHe 651-283-8681
off is 763-314-0221
lax 763-314-0354
ernaHd chrisL@Irurinegc.com
www.trulin� c.c®m
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206 Chelsea Road **** Monticello MN 55362 **** 763-314-0220
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DAVID HARCHANKO , RA
Mr. Harchanko is a licensed architect with over 30 years of experience in commercial
design, real estate development and construction. His project experience includes
hospitality, retail, restaurant, office, municipal, health care, military, and multi-family
residential.
David founded our construction and development companies with Truman Howell
Architects to provide a seamless delivery of real property to our clients. This unique
and comprehensive service provides investors and lenders with unequalled
confidence. The quality, professionalism and integrity of past performance proves
that our system delivers as promised.
Mr. Harchanko's responsibilities include architectural design, assisting clients in
evaluating prospective projects and investments, managing and hiring consultant
teams.
Prior to joining Truman Howell Architects David held positions as a Corporate
Architect with Marriott Corporation, Best Buy and Buffets Inc. With these companies
he developed numerous projects throughout the United States.
With Marriott Corporation in Washington DC David provided site planning and
building layout for various Marriot products including Senior Living, Courtyard Hotels,
Residence Inns, Fairfield Inns and full service Marriot Hotels. As Director of
Architecture at Buffets Inc. (Old Country Buffet) he provided the turn-key delivery of
275 new restaurants in nearly every major market in the U.S. At Best Buy, David
coordinated site selection, real estate acquisition, building department and planning
approvals in preparation for the design/build work.
Mr. Harchanko serves as the LLC Chief Administration Manager for 10 of the 12
hospitality projects that we developed and own.
TRUMAN HOWELL, NCARB, AIA
Mr. Howell is president of Truman Howell Architects & Associates, Inc. The firm has had
a broad practice since its founding in 1978. In subsequent years the company's
architectural work included medical, office, housing, and commercial industry. More
recently the practice has focused on the hospitality field with the design and
construction document preparation of 190 hotels and 50 restaurants. In one year his
firm was ranked as the 55th most productive firm nationally in Hotel & Motel
Management magazine. Mr. Howell has a national architectural registration and has
licenses in over 30 states. Several hotel prototypes have been designed by the firm
for a variety of brands.
In 1999 Mr. Howell, with other partners formed a construction company to provide
coordination of drawings and construction for the benefit and protection of his
clients. Projects became a team effort with client, contractor, and architect. The
structure of the team concept as practiced by Truman Howell Architects and Truline
Construction has been quite successful.
The architectural firm continues to develop new relationships with clients and
development of new projects. The firm enjoys the compliment of having clients return
to handle their architectural needs.
MARK MAYVILLE, LEED AP
Mr. Mayville joined Truman Howell Architects in 1996 and is now an owner in the firm.
Mark is also a partner in Truline Construction which provides an uniquely
comprehensive understanding of the overall building process.
Mark brings a passion for accuracy and understanding in all of his dealings with
clients, building inspectors, and code officials. This is reflected in his contributions to
the projects. His knowledge of buildings and detailing provides clarity and direction in
the construction documents.
Having experience in more than 30 States and most major markets around the
country, Mark is familiar with codes and local jurisdictional requirements throughout
the country. He is experienced with ground-up design, remodeling, and the
application of franchise design requirements to projects.
Mark is LEED AP registered, and familiar with the latest in green building technologies.
He handles personnel and business management internally in the company. Mark
writes all project specifications and coordinates with subcontractors in the field
during the construction process.
Mark manages the office, provides bidding expertise and building specifications for
the projects.
1'.;aiiiltlia
JOE GORACKE
Mr. Goracke brings more than 25 years of experience in the construction industry and
focusses on construction administration. Joe graduated with honors from St.Cloud
State University in Marketing and Business, gives him a unique set of skills in the
construction business. His reputation in the construction field is one of integrity, a
tough but fair businessman.
Mr. Goracke develops cost analysis studies for each project. He works effectively to
establish budgets for each segment of every project. With his extensive background
of managing projects in the field he negotiates contracts with vendors, suppliers and
then manages the construction delivery.
In just the last twelve years he has managed over 50 major projects many of which
were hotels or restaurants. Joe's career has encompassed many building types
including work in residential, industrial, recreational, and commercial. Besides
managing projects for our clients Joe is also a member/owner for numerous groups
for hotel developments around the Midwest.
As an integral part of the success of this team his input makes the projects move
forward to completion in a timely and financially sound manner.
Mr. Goracke serves as an LLC Officer for 7 of the 12 hospitality projects that we
developed and own.
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JANUARY 2019 JULY 2019 2019
S M T T F S S M T F S
11 ; 2 3 4 5 1 2 3 ; 4 5 6
6 7 8 9 10 11 12 7 9 10 11 12 13
13 14 15 16 17 18 19 14 1 16 17 18 19 20 Ills,"
20�22 23 24 25 26 21 22 23 24 25 26 27
............
27 28 29 30<3>1 28 29 30 31 1,,'s1abftsh,(,,a" 1857
FEBRUARY 2019 AUGUST 2019 JEFF PAAR......................................................MAYOR
S M T W T F S S M T W T F S D.LOVE........................................COUNCIL MEMBER
1 2 1 2 3 RUSS KOSKI................................COUNCIL MEMBER
34 5 6 7 8 ❑9 4 5 6 7 8 9 10 MATT MONTAIN...........................COUNCIL MEMBER
10 11 12 13 14 15 16 11 12 1314'' 15 16 17 MICHELLE LAKSO.......................COUNCIL MEMBER
MARK STATZ............ CITY ADMINISTRATOR/ENG.
17 `18' 19 20 21 22 23 18 19 20 21 22 23 24 TERESA BENDER...................................CITY CLERK
24 25 26 27 28 25 26 27 28 29 30 31 BRUCE DEJONG..................... FINANCE DIRECTOR
KRIS SWEENEY.....................SR.ACCOUNT CLERK
PAUL PALZER..........................PUBLIC WORKS DIR.
MARCH 2019 SEPTEMBER 2019 DAN SCHMITZ.......................BUILDING INSPECTOR
S M T W T F S S M,., T F S TEDD PETERSON............................PUBLIC WORKS
1 2 1 ; 2"' 3 4 5 6 7 JAMES HUISENGA...........................PUBLICWORKS
3 4 5 6 7 8 9 8 9 10 11 12 13 14 SPECIAL EVENTS
10 11 12 13` 14 15 16 15 16 17 18 19 20 21 JAN. 19 .....ICE SKATING PARTY-LAMOTTE PARK
17 18 1920 21 22 23 22 23 24 25` 26 27 28 FEB.9 .... ICE SKATING PARTY/HAYRIDE-LAMOTTE
24 25 26 27 28 29 30 29 30 FEB. 16 ...........................LIONS ICE FISHING CONTEST
MAR. 10/NOV 3....DAYLIGHT SAVINGS BEGINS/ENDS
31 APRIL 20..........ANOKA CNTY. FAMILY CELEBRATION
APRIL 22........................................................EARTH DAY
APRIL 2019 OCTOBER 2019 JUNE 11,18&25...........................MUSIC IN THE PARKS
S M T F S S M T F S JUNE 7&8.....................................GARAGE SALE DAYS
1 2 3 4 5 6 1 2❑ 3 4 5 JUNE 15..........8am-12 noon CITY WIDE CLEANUP DAY
7 9 10` 11 12 13 6 7 8 9 10 11 12 JULY 9, 16, 23,&30......................MUSIC IN THE PARKS
JULY 16-21..............................................FETE DES LACS
14Al16 17 18 19 20 13 14 15 16 17 18 19 AUG.6....................................................NIGHT TO UNITE
21 22 23 24'' 25 26 27 20 21 22 23' 24 25 26 TBD ...............................................MOVIE IN THE PARK
28 29 30 27 28 29 30 <3>l ❑ CITY COUNCIL
O PARKS AND REC. COMMITTEE
MAY 2019 NOVEMBER 2019 0 PLANNING AND ZONING COMMISSION
S M T W T F S S M T W T F NORTH METRO TELECOM COMMISSION
1 2 3 4 1 2 6:00 PM- 1301 81stAVE. NE, SLP
5 6 7 8 9 10 11 0 4 5 �,�3
7 8 9 O ECONOMIC DEVELOPMENT AUTHORITY
12 13 14 15 16 17 18 10 ;11) 12 14 15 16 FETE DES LACS
19/�u\21 22 23 24 25 17 18 1921 22 23 PLANNING COMMITTEE-6:00 PM
26 ;27 28 29 30 31 24 25 26 '28, �2 , 30 FIRE STEERING-6:00 PM
200 CIVIC HGTS CIRCLE,CIRCLE PINES
P.D. GOVERNING BOARD-7:00
JUNE 2019 DECEMBER 2019 54 NORTH RD., CIRCLE PINES
S M T W T F SS M W T F S
�.
1 1 2 < 4 5 6 7 HOLIDAY-CITY HALL CLOSED
230 6 7❑ ® 8 9 10 11 12 13 14 ANOKA COUNTY FIRE PROTECTION
9 1013 14 15 15 16 17 18 19 20 21COUNCIL-7:00 PM-LOCATION VARIES
16❑18 9 20 21 22 22 23 24 25'� 26 27 28 ❑ SPECIAL EVENTS
NOTE: Meetings begin at 6:30 pm at City Hall unless
23 24 25 26' 27 28 29 29 30 31 posted otherwise;dates/times are subject to
30 change. y S " q e w
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