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HomeMy WebLinkAbout1987/03/16 - ADMIN - Minutes - City Council - Regular (2) MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA March 16, 1987 1 . Call to Order The meeting was called to order at 7:35 by Mayor Lyle Hanks. 2. Presentations Mayor Hanks read two proclamations: one recognizing the efforts of the Time Out Program and one in praise of the St. Louis Park senior high school girls' basketball team as it enters the State championships. 3. Roll Call The following Council members were present at roll call : Ronald Backes Keith Meland Thomas puffy Larry Mitchell Allen Friedman David Strand Lyle Hanks 1111 Also present were the City Manager, City Attorney, Director of Planning, Director of Public Works and Director of Finance. 4. Approval of minutes It was moved by Councilman Duffy, seconded by Councilman Mitchell to approve the study session minutes of March 2, 1987-:The—motion—passed-6-0-2 (Councilman -Friedman, Mayor -H-ank-s abstained) . It was moved by Councilman Backes, seconded by Councilman Duffy, to approve the minutes of the March 2 City Council meeting with the following corrections: pg. 52, last paragraph, "related" should be "unrelated". Under item 8g. the resolution passed dealt with the time transfer station. The motion with amendments passed 7-0. It was moved by Councilman Strand, seconded by Councilman Duffy, to approve the study session minutes of March 9, 1987. The motion passed 7-0. 5. Approval of agenda It was moved by Councilman Meland, seconded by Councilman Strand, to approve the consent agenda for March 16, 1987. The motion passed 7-0. It was moved by Councilman Meland, seconded by Councilman Mitchell , to approve the Council agenda with the addition of lli . , City Manager's work program and compensation. The motion passed 7-0. -59- City Council meeting minutes March 16, 1987 41111 PUBLIC HEARINGS 6a. 3630 Decatur Special permit request to construct Resolution 87-26 155 units of senior citizen housing at 3630 Decatur Ave. There being no one wishing to speak, the Mayor declared the public hearing closed with the right of Council to thereafter reopen and continue it at a future date. It was moved by Councilman Meland, seconded by Councilman Friedman, to waive reading and adopt Resolution 87-26 entitled "A resolution granting special permit under Section 14-124. 101 (2) of the St. Louis Park ordinance code relating to zoning to permit a senior citizen housing apartment building containing 155 units for property zoned PUD, planned unit development district, located at 3630 Decatur Ave. So." The motion passed 7-0. PETITIONS, REQUESTS, COMMUNICATIONS 7a. Lilac Way business owners Mr. Phil Eder, owner of the Leaning Post in Lilac Way, read to Council his letter expressing his concerns for himself and the other businesses in the Lilac Way area relative to the Excelsior Blvd. Redevelopment Project. (The entire text of Mr. Eder's letter is affixed to the official minutes and is available in the City Clerk's office.) Basically, their concerns are whethertheir businesses =wjilT be--taken-by Con- demnation or are they to be purchased by the redeveloper of the project. At present, he is losing money, yet is unable to make any plans for the future re- lative to his business. . He stated he is fully supportive of the Water Tower redevelopment project from the start based on the assurances from everyone involved that he would be treated fairly and equitably in the manner of acquisition of his property. Councilman Strand asked if the Housing and Redevelopment Authority contract which has been executed With the developer—governs-th-e --arrd exLEnt to which either private acquisition or condemnation would take place on the property. Councilman Backes responded that the contract has a 90-day period for the redeveloper to acquire the property, April 10 being the last day of that period. Beyond that date, the HRA can proceed with condemnation proceedings provided certain requirements under the contract are met by the redeveloper, i .e. certain protections such as plans, traffic study, EAW, financing and things of that nature to indicate all elements are in place for the HRA to proceed safely with condemnation. Councilman Strand asked if the contract required the HRA to abstain from that procedure now or to go ahead with the timing specified as a contract term. -60- OJ City Council meeting minutes . March 16, 1987 11110 Councilman Backes responded that the HRA's obligations as well as the redevelop- er's are stated in the contract and at the present time, both entities are pretty much on target with respect to the various stages of things to be done by both parties. Councilman Strand asked what was the City's ability as opposed to the HRA to affect that contract with respect to either changing the timing or changing the procedure for either using private acquisition or condemnation authority. The City Attorney said he would assume a negotiated change in the terms of the contract would require the mutual consent of both the HRA and the redeveloper. He said the City does have condemnation authority; however, 1 for that to be exercised in this case would require further review. Councilman Strand asked if the $1 million letter of credit had been supplied and what was its purpose. Councilman Backes stated it secures the contract in case of default and safeguards the HRA in terms of expenses, delays, lost revenues, etc. He said if the HRA were to proceed with condemnation and land acquisition and absent a developer at some point,itcould be terribly at risk because $1 million is no where near the sum that could be expended in those proceedings. Councilman Strand asked Mr. Eder what it was he would like the City Council to do at this point. 1110 Mr. Eder said that to make the business owners position clear, sending out condemnation notices is not the same as condemnation proceedings. They were asking that their property rights be restored so that they can make decisions about their businesses. He said the developer told him they are in favor of the notices going out as they feel such action will not impede their private acquisition whatsoever.--Mr;--l=der -said the business -owners, -as -tenants, would then be in a position to go out and look for new sites without the legal encumberance of the current leases. Mr. Eder said the developer told him they could not meet the other conditions of the contract until July 15, 1987 which puts the business owners in the position of sitting there from now until July 15, either closing their doors or losing money without any protection of the law. Councilman Backes stated that the actual date of commencement of construction as specified in the cunLrdLi-is--dun-e-1-987. Councilman Meland asked if the April 10 date was the date when the opportunity for St. Louis Partners to negoti-ate_ expires. Councilman Backes said he was not sure it expired, per se. He believed they had 90 days to proceed with private negotiations and purchase and he believed at that point it allowed the HRA to proceed with condemnation provided certain conditions have been complied with by the redeveloper. Councilman Strand said he was sympathetic to the Lilac Way business owners' position. His problem was that he has not seen the redevelopment contract so it's difficult for him to respond to the concerns expressed this evening. He did not know what the effect would be of any action Council might take this evening. -61- City Council meeting minutes March 16, 1987 Mr. Eder said it was his understanding, based on his attorney's opinion, III that after April 10, all the conditions in the contract are conditions imposed by the HRA upon the developer. There are no conditions the other way. It's simply a matter of the City being able to look at this project at some point in time and being able to say that they are going to make a commitment to it. He believed that at this point no one was at risk. He noted there were sufficient funds available from tax increment money already collected to - proceed with acquisition whether or not the contract is enforced. He said the only people at risk are those business owners suffering on the site. Councilman Meland stated that once the HRA has addressed this question, perhaps at the HRA meeting of April 7 it might be appropriate to have a joint Council/HRA meeting to discuss this question. - Councilman Mitchell asked if there were any problem having the language of the contract pertaining to Mr. Eder's concerns reviewed for the next Council meeting which is prior to the HRA meeting which would give Council an opportunity to review that issue- and give its input to the HRA for its meeting. 1 The Mayor directed the matter be placed on the April 6 agenda. RESOLUTIONS AND ORDINANCES 8a. Securities for collateral Resolution approving securities Resolution 87-27 for collateral from Shelard ill Bank It was moved by Councilman Meland, seconded by Councilman Duffy, to waive reading and adopt—Resol-uti-on-87=2-7--entitled "Resolution approving securities for collateral from Shelard National Bank, St. Louis Park, Minn." The motion passed 6-0-1 (Councilman Backes abstained) . 8b. Maximum amount in depository Resolution increasing the designa- Resolution 87-28 ted amount to be kept in depository It was moved by Councilman Duffy, seconded by Councilman Meland, to waive 1 reading and adopt--Reso-1-uti-an- 88 — -eM-i-t-1-ed "Rcso-1-u-ti-erg -4ncrcasi-ng designated maximum amount to be kept in depository." The motion passed-6-0-1--(Counci-lman_Backes abstained) . 8c. Ottawa/Hwy. 7 land sale - Ordinance No. 1713-87 It was moved by Councilman Meland , seconded by Councilman Strand, to „. waive reading and adopt Ordinance No. 1713-87 entitled "An ordinance authorizing sale by the City of property at the southeast corner of Highway 7 and Ottawa Ave." The motion passed 7-0. -62- City Council meeting minutes March 16, 1987 8d. Homes on Louisiana Ave. First reading of an ordinance authorizing sale of four residences on Louisiana Ave. It was moved by Councilman Mitchell , seconded by Councilman Meland, to authorize sale of four residences on Louisiana Ave. by Edina Realty conditioned upon the previous Memorandum of Understanding, to waive first reading of the ordinance and set second reading for April 6, 1987 and authorize summary publication. The motion passed 7-0. 8e. Community Housing Service Corp. Community Housing Service Corp. Resolution 87-30 Amendment to rental housing bond program It was moved by Councilman Backes, seconded by Councilman Friedman, to waive reading and adopt Resolution No. 87-30 entitled "Resolution authorizing certain amendments to the _City of St. Louis Park, Minnesota, $11 ,000,000 Multifamily Rental Housing Revenue Bonds (Community Housing and Service Corp. project) Series 1985; authorizing certain amendments to the Indenture of TRrust and the Loan Agreement; approving certain amendments to the form of and authorizing the execution and delivery of the Bonds, as amended; 111, and providing for the security, rights and remedies of the holders of said Bonds." The motion passed 7-0. 8f. 1987 bond sale It was moved by Councilman Resolutions 87-31 , 87-32, 87-33 Meland, seconded by Councilman Strand, to waive reading and adopt the following resolutions: No. 87-31 , "Resolution awarding the sale of $2,100,000 general obligation tax increment bonds, Series 1987-B; fixing their form and specifi- cations; directing their execution and delivery and providing for their payment"; No. 87-32, "Resolution awarding the sale of $2,300,000 general obligation improvement bonds, Series 1987-A, fixing their form and specifica tions, directing their execution and delivery, and providing for their payment"; and No. 87-33, "Resolution awarding the sale of $600,000 general obligation building bonds, Series 1987-C, fixing their form and specifications directing their execution and delivery and providing for their payment." The motion passed 7-0. REPORTS FROM OFFICERS, BOARDS, COMMISSIONS 9a. Louisiana Ave. homes improvement fund It was moved by Councilman 11110 Mitchell , seconded by Councilman Meland to authorize the City Manager to establish the improvement fund and disburse funds in accordance with the proposed policy. The motion passed 7-0. -63- City Council meeting minutes March 16, 1987 9b. Traffic study 365 Belt Line Blvd./Park Glen Resolution 87-29 Rd. parking restrictions, speed limit and stop signs It was moved by Councilman Backes, seconded by Councilman Strand, to waive reading and adopt Resolution 87-29 entitled "Resolution ordering the placement of traffic control signs on Belt Line Blvd. , Park Glen Rd. and W. 35th St." The motion passed 7-0. 9c. February financial report The February financial report was ordered filed by consent UNFINISHED BUSINESS 10a. Boards and Commissions No business 10b. Property adjoining Minnetonka It was moved by Councilman Meland, seconded by Councilman Backes, to defer the matter to April 6, 1987. The motion passed 5-2 (Councilmen Mitchell and Strand opposed) . 41111 NEW BUSINESS lla. Liquor license relocation Complete beverage service The relocation of Complete Beverage Service from 7920 Highway 7 to 6535 Lake St. W. was approved by consent. llb. Gambling license renewal An application for gambling license renewal from the Viet Nam Veterans Awareness Council was approved by consent. llc. Raffle Children's Miracle Network A request to conduct a raffle by the Children's Miracle Network was approved by consent. lld. Street lighting fixtures Requisition for approval of purchase of 1987 street lighting poles and fixtures It was moved by Councilman Strand, seconded by Councilman Backes, to designate Sterner Lighting Systems as sole source of supply and authorize execution of a contract for the purchase of 1987 street lighting poles and fixtures. The motion passed 7-0. 41111 -64- City Council minutes March 16, 1987 1111 lle. Well reconditioning Mayor Hanks asked the minutes to reflect that Council had reviewed the bids and the reasons for not accepting the bid from Mark J. Traut Wells, Inc. It was moved by Councilman Backes, seconded by Councilman Meland, to designate Layne Western Co. as the lowest responsible bidder and authorize execution of a contract for $51 ,930. The motion passed 7-0. llf. Hannon Lake sed basin Project 87-33: Reconditioning and pump replacement of water wells No. 13 and 14 at 6007 Cedar Lake Rd. It was moved by Councilman Duffy, seconded by Councilman Meland to approve _ the change order. The motion passed 7-0. 11g. Replacement tractor Bid tab: Purchase of a replacement tractor Councilman Friedman asked why there was only one bid and did staff advertise. The Director of Public Works responded that the bid was placed in the newspaper and also the bid specs were sent unsolicited to make sure there is feedback. He said specs were sent to five companies and he had no idea why only one bid was received. It was moved by Councilman Meland, seconded by Councilman Strand to designate Long Lake Ford Tractor as the successful bidder and authorize execution of a contract for $14,988. The motion passed 7-0. llh. Snow/ice control materials Bid tabulation: 1987 snow and ice control materials It was moved by Councilman Meland, seconded by Councilman Duffy, to designate SA-AG and J. L. Sheily Co. as the lowest responsible bidders and authorize execution of contracts with those two firms for $15,550 and $5,730 respectively. The motion passed 7-0. lli . Manager's compensation It was moved by Councilman Meland, seconded by Councilman Duffy to approve the City Manager's work program and authorize a compensation adjustment of 4.47 percent. The motion passed 7-0. -65- City Council minutes March 16, 1987 MISCELLANEOUS 41111 a. Claims None. b. Communications from the Mayor The Mayor referred to an upcoming meeting on light rail transit and a communique from the Association from the Metropolitan Municipalities. c. Communications from City Manager The City Manager asked about upcoming study sessions. The consensus was there would not be study sessions on March 23 and 30. CLAIMS, APPROPRIATIONS, CONTRACT PAYMENTS 13a. Verified claims It was moved by Councilman Meland, seconded by Councilman Duffy, that the list of verified claims prepared by the Director of Finance dated March 16, 1987 in the amount of $406,579.22 for vendor claims and $7,098.79 for payroll claims be approved and that the City Manager and City Treasurer be authorized to issue checks in the appropriate amounts. The motion passed 7-0. 14. Adjournment It was moved by Councilman Meland, seconded by Councilman Backes that the meeting be adjourned at 8:25 p.m. The ---motion passed 7-0. M or e &Kt (11 RE ording Secretary 41111 -66-