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Home My WebLink About1978/06/27 - ADMIN - Minutes - City Council - Joint1. 2. � Call �o Order Roll Call � a� MINUTES CITY COUNCIL/HOUSING AUTHORITY MEETING ST. LOUIS PARK, MINNESOTA June 27, 1978 A special joint meeting of the City Council and Housing and Redevelopment Authority was cal�.ed �o order by Mayor Stern at 8:15 p.m. The f ollowing Councilmen were present at ro�.l call: Ronald Backes Lyle Hanks Jerrold Martin Rose-Mary Griak Keith Meland Irving Stern The following Housing Authority Commissioners were present �t roll cal�: Jane Tschida Roger Israel Thomas Will�ams Jpel Glotter Also presenti were the City Manager, City Attorney and Executive Dire��or. 3. Disposit�.on Pol ic The motion pas$ed 10-0. 4. Acquisition Pal�.c projects ar� pr�sented The motiion passed 10-0. 5• Cherne Pxoposa� - � It was moved by Councilman Backes, seconded by Councilman Griak, to adopt the,disposition policy as presented on Page S of the ExcelsiQr Boulevard report dated�June 23, 1978. It was moved by Councilman Hanks, seconded by �ouncilman Meland, that the7to�e�hecJune�23�n1978, policies as stated on Page ro riate by �he report be utilized as deeAuthorit pas �.ndividual City Council and Housing Y f or approval. parkir�g facil�,ties with Y. ;; , Councilman Hanks noted there ifo� dgrkingnbetween the amount of space allocated p ro osal. the original proposal and the most recent P P revious proposal �Qr s�►ax�d He wondered if the P �onsidered. ��e King's Inn is sti11 being . ,. -241- .` � � Council/Housing Authority minutes, June 27, 1978 P"lan lA provides for 220 parking he Executive Director explained Si�e feet of the site. He continued T 000 square thar spaces and uses �he east 10� arking spaces. Site Plan lA would not. require Site Pl.an 1B p.rovides for 203 P ro erry� but the proposal does not addr a�quisition and use of King's Inn p P p�ossible join� use of Parkin� space. It was moved by Councilman Meland, the Cherne proPasal and authorize seconded by preparation ess Councilman Martin, to approve of a draf t contract. Councilman Hanks inquired as to whetheededlthusnfarct tiations as they have proce of the nego would be on the hasis Councilman Meland stated these negotiated conditions would be brought back to �.he Council in the form of the draft contract. Chairman Glotter stated it is bef ore authorizing draf t ing of necessary to know the conditions of the contract such contract. Councilman Meland withdrew the motion. It was moved by Gouncilman Meland, seconded by Councilman Hanks, to authorize staff to continue negotiations £or land acquisition for the Cherne proposal and to prepare a draft contract for Council/Authority consideration. Councilman Griak stated she was not comfortable with the present proposal and would like to see negotiations proceed with those results being brought back for Council/Authority review prior to contract draf ting. Councilman Hanks stated he supported the motion with the intent that the Council/Authority would be available for a special meeting if a sati�factory conclusion to the negotiations is reached. . Councilman Martin stated it is important for the manner of consideration to be uniform for all developers. negotiations and Council.man Meland stated the basic acquisition and disposition policies have been adopted by the Council and Authority to guide staff in these negoCiations. The motion passed 10-0. It was moved by Councilman Hanks, seconded the current letter of intent for the Chern The motion passed 10-0. 6. Rooney Proposal by Commissioner Williams, to extend e proposal to July 30, 1978. It was moved by Councilman Meland to acCeFt the proposal as presented in Mr. Rooney's letteT °f June 14, 1978, There was no second to the motion. It was moved by Councilman Hanks, seconded by Councilman Martin, item until later in the meeting. The motion passed 10-0. -242- to defeY tri; r Council/Housing Authority minutes, June 27, 197$ . 1- a po�nt later ln the meeting, Mr. Rooney stated he could not afford to �'�� er Square f oot for property on which to build a supermarket and �,a,, $ . withdraW his supermarket proposal from consideration; however, he would �s `�°`�ld be willing to develop the 180, 000 square f eet of retail stores to thP � st�il SCUth of Park Center Boulevard. �y an 1' pro osal Yt was moved by Councilman Ryan proposal and authorize days. It was moved by Councilman Martin to defer this item to later in the meeting. There was no second to the motion. Backes, seconded by Councilman Hanks, to accept the issuance of letter of intent for a period of 60 In re�ponse to a question from Councilman Griak, Mayor Stern stated only on� letter of intent may be issued for any particular piece of property in th� Redevelopment District. � .�, Jim Ryan explained the current development proposal is expanded from the ariginal proposal. Stage 1 inc ludes a 90,000 square foot Byerly'S �entex at the same location previously proposed for the supermarket. He continued this center would include a supermarket, an etaildareasstaHeastatedlthey and potentially an of�-sale liquor and special r retail area would be individual merchandise areas which would keep with the quality and image of the Byerly's Stores. Mr. Ryan stated Stage 2 would consist of a special6YStreetr tHebindicat�d this . north of Park Center Boulevardoaa�ionUof ParkeCenter Boulevard. He said proposal would not require rel c staging of the entire proj ect is necessary in that it is important to know the definite configuration of the intersection of Highway 100 and W�st 36 Street He stated for Stage 1, his company has made a before design plans continue. tion to� direct purchase off er to the Freidheim truectacouldsproceeddvery�quickly and the second parcel. He emphasized the pro� at no cost to the City. In response to a quest ion from Councilman Hanks, Mr. Ryan stated th,e Freidheim trust would not react to the purchase offer until there sitebeen a City determination of what project would be approved for th Mayor Stern questioned whether square foot grocery and retail should be considered also. Chair�nan G�otter wondered what if there was no write-down of the City area and should be the other committed proposals to th� 90,000 for this site th e eff ect on the financial picture would be land acquisition costs to the deve oper. stated if a develop�r can Wa1t Hartman, Tax Increment Advisoryssoverhead would be reduced. He con- acqu�.re the land privately, the Cit� . ro'ect. tinued the r d ction would not b e signlf icant in terms of the entire P e u ,� � •'1/AI•�;� •� - � . � . . _i•:w..� , , .,: '^_`+�i�AAR.w :: .'!'? � �N�r�r�r.�. � ncil/Nousing Auth°ri�y minutes, Cou June 27, 1978 issue is how large of a subsidy the City s�ated the real Chairman Glot�ez e�lnarke� developer. wants to give to a sup � Hartman stated a supe�arket is about a Wal� enerator; however, not a good tax increment g ermarket in the density in order to get a sup r Stern requested William Fine to present M 5-1 the the land/building City may have project area. ratio and is to give up his proposal for this site. ayo an is willing to build a National Tea Super William Fine stated his comp y with the Freidheim trust et on the Freidheim site and will deaerdthecCity prefers. The proposal Mark whichev or with the City for acquisition, roximately f ive acres of land. is for a 50,000-square-foot store utilizing aPP inued this would make more land available f ementture development of He cont ielding a higher tax incr more intensive use thus y a a hi her price Mr. Fine stated he would be ie1foog.��He apologgzed that a suggested, up to $4 per squa available for Council review, but the store is the same as f the Excelsior Boulevard site. posed or than previously site plan was not previously pro- Councilman Martin inquired as to how Mr. Fine could pay $4 per square foot h rs are only able to pay $2.50 per square foot. when ot e Mr. Fine stated he had neglected to mention that if the City would be willing to approve an industrial revenue bond issuare�footeand�would passConPthe would purchase the land at over $4 p er sq advantage gained through lower interest rates to the City through increased purchase price or rental. Councilman Martin noted that if industrial revenue bonding were available to all developers, they may also be able to pay a higher acqu3s ition price. Chairman Glotter stated if the Council would grant an industrial revenue bond issue, the lower interest rate would be returned to the City through a higher purchase price but this is realistically an insurance of faster return on debt. Mr . Fine stated the current plans are to build the supermarket on the south side of Park Center Boulevard; however, he would be willing to accommndate construction on either side of the street. He reminded the Council that any proposal does require approval of the National Tea Bvard of Directors. Councilman Backes stated all information on specif ic development proPog�ls should have already been received by the City f or review, and Mr. Fine only offers oral comments on his plan at this time and does not have a specific site delineated. Mayor Stern stated this is the same proposal as previously reviewed fo� the Excelsior Boulevard site, and Mr. Fine is simply relocating the plan. Commissioner Israel inquired as to the corresponding ratio of return as compared to the Ryan proposal. The City Manager stated the Fine proposal would ield a�Prox itnat ety �� , y r� • per acre while the Ryan proposal would yield approximately $225•�Q� �'e� -244- Council/Housing Authority minutes, June 27, 1978 onse Co a question from Mayor Stern, Walt Hartman indicated the Fine Xn resp . p�o�osa]. would be more economically feasible based on the numbers of acres used for retail activity . cilman Hanks stated this may not be the best proposal in terms of what �oun desires, and that those proposals leaving vacant land may not the �onm►unity be rhe most de5irable. Mayor Stern stated he is only clarifying the best return for dollars spent and is not tal�dng policy issues at this time. Councilman Martin stated in�considering the proposal in terms of land acquisition prices of $2.50 p er square foot versus $4 per square foqt, Ane must take into account lower interest rates and shorter repayment periods; the City should not be misled on actual cost by how much is being originally paid f or the land . Jim Ryan requested that the Council and Authority weigh several factors. He R an Construction Company has sub- stated in terms of f inancial credibility, y mitted all financial data and is most caponstruction'sepast developments requested that the Council look at Ryan C and success in these developments. He also stated he hss� �� lheewouldebenite proposal and does not need addltional Board approvals, read to start construction immediately. He explainedSue Gan beuexamined in Y Authority did not like the concept of Stage 2, this s the f uture. Mr. Ryan stated his In response to a question from Commindustri lsrevenue bonding. development is not contingent upon ' larif ied that his proposal is not contingent upon this bonding Mz. Fine c either. da stated she is concerned with future proposals and what CommisSioner Tschi be able to occur on this land. type of intensive development may ex lained additional studies on supermarket valuations The Executive Director p f eW Weeks, and new information has been received have been made in the past s uare f oot assessable value for supermarkets may e indicating that the 4. , . he stiated multiple-fami].y or offic� higher than initially indlcated, development is possible in this area. ed National Tea f ive-acre site for 50,OOQ square Mr. Ryan stated the propos uare feet have appro�imateiy feet and the Ryan site of 9.3 acres for 90,000 sq e and ' in ratios. He contended becauhavefa�higher tax value the same land-to-bulld g this development would quality of the Byerly Stores, than typical supermarkets• • 1 is additiona�. Chairman Glotter stated the que5tion he was concerned wit� land use in the area. roximately the S�o land i8 apo osal is in Coun�ilm�n Backes stated the ratio o� building gine p P osals, and he Was not suredWhethadeonZy seen a definite same for boCh proP He continue ro osal would have to terms of tihe Park Center sites• and this P p proposal for the Excelsior noulevardo5�he'Park Center site. be scaled to appropriately conform t .-245- 1 <�: ; , � � ...�,:.:� __. _. .....,..,___�rr=_-,•,..., ��.rV��•Ie..� ..v.�: ��I�r✓n. . . ►_ � Councilman Martin Center wi11 not be macic on the basls 78,000 square feet Council/Housing AuthoritY minutes, June 27, Z978 explained that since 12,000 square feet of the $yerly SupErmarket but other�O�t�he�NationalSStorehversu�� of 50,000 square f eet s for �he Byex1Y Store. Councilman Griak stasedandetheltyPe supermarket proposal , Councilman Hanks stated the traff ic considered. great difference between the two of store should be discussed. generat ion f or this area should be . . . The motion approving the Ryan proPosal. and authorizing issuance of a letter of intent fvr 60 days failed 5-5 (Tschida, Williams, Backes, Griak and Meland in favor; Glotter, Israel, Haiiks, Martin and Stern opposed). Council,man Hanks stated since there was a lack of part of one proposal this i�em should be def erred until more definite da�a can be presented. It was moved by Councilman Hanks, item for ten days. firm commitment on the f or one week to ten days seconded by Councilman Backes, to defer this riayor Stern explained there would not be a quorum available in ten days. The motion was withdrawn. It was moved by Chairman Glotter, seconded by Councilman Martin, to authorize issuance of letter of intent to Fine Associates contingent upon the location being north of Park Center Boulevard and for negotiations to be undertaken toward land acquisition to provide the besC return possible. The motion failed 4-6 (Glotter, Israel, Martin and Stern in favor; Tschida, Williams, Backes, Griak, Hanks and Meland opposed). It was moved by Councilman Backes, seconded by Councilman Meland, to accept the Ryan proposal and authorize issuance of letter. of intent for a period of 60 days. The motion passed 6-4 (Tschida, Williams, Backes, Griak, Hanks and Meland in favor; Glotter, Israel, Martin and Stern opposed). 8. 5tuart Proposal --�_ It was moved by Councilman Meland, secondedbY Councilman Griak, to reject the proposal. The motion was withdrawn. It was moved by Councilman Hanks, seconded by Councilman Meland, to establ2`h a moratorium on d�evelopment for this site for one month until neighboXh�od sd� meetings can be held to infortn the single-family uni� residents of the proP°� The motion passed 8-2 (Tschida and --._ _ —_-- ___ Stern opposed). -246� 1 .�,..� �--- _ .. . �• :e �• ; r �� .L` r '_"� °�� Pr� saI . _. _ . . . . �. _. ....�: �:..,,....s �.�..�.. �,r ,.::�., Couc��il/Nnu.eing AuChority m��utes� June 27, 197$ Th ie 1 tiea� vae con� idered uAder i te�a 7 oa tbe agenda. It was isov,ed by Councilr.�an B�,►ckes, seeo��d bp Councilr�n Martin, to acce�t �:;e I,anvesco �roposal and a�thorize issuance of lett�r of intent f or a period of 60 days. �e �otion p�ssed 9-1 (Griak oppo�ed) . �1, Adiournmene a �,�,�„_�...+.�.� ALLest: � it � Secretary Upon a�notion by Councilman ?�.eland � seconded b�r Councilman Hank.s, the meeting was adjourne� at 10:1� p.au. by a voze of 10-0. Irvin Mayor , � M. S ern -247- , < �