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HomeMy WebLinkAbout1998/12/21 - ADMIN - Minutes - City Council - Regular CITY OF OFFICIAL MI UTES ST. LOUIS CITY COUNCIL MEETING PARK ST. LOUIS PARK,MINNESOTA December 21, 1998 1. Call to Order Mayor Pro-tem Jacobs called the meeting to order at 7:34 p.m. 2. Presentations-None 3. Roll Call The following Commissioners were present at roll call: Chris Nelson, Sue Sanger, Ron Latz, Robert Young, and Jim Brimeyer and Mayor Pro-Tern, Jeff Jacobs. Also present were the Deputy City Manager(Mr. Pires); City Attorney(Mr. Scott);Finance Director(Ms McBride); Economic Development Coordinator(Mr. Anderson); Director of Community Development (Mr. Harmening), Director of Public Works (Mr. Rardin) and Police Chief(Chief Luse), and Zoning Administrator(Mr Moore) 4. Approval of Minutes 4a. City Council Meeting of December 7, 1998 The minutes were approved as presented. 5. Approval of Agendas a. Consent Agenda It was moved by Councilmember Nelson, seconded by Councilmember Latz, to approve the consent agenda with the removal of Items 8h and 8i. The motion passed 6-0. b. Agenda It was moved by Councilmember Nelson, seconded by Councilmember Sanger, to approve the agenda The motion passed 6-0 c. Resolutions and Ordinances By consent, Council waived reading of resolutions and ordinances. 6. Public Hearings 6a. Public Hearing to consider Tax Abatement Proposal- Medical Office Development Project at the Southwest Corner of Highway 7 and Louisiana Avenue Resolution # 98-172 Mr. Anderson, Economic Development Coordinator presented a staff report with a general description and overview of project proposal. Mayor Pro-tern Jacobs closed the Public Hearing with the right of the Council to reopen it at a future date. Councilmember Nelson believed that this was the best use for this site and was in support of this project. He commented on the need for physicians to relocate within St. Louis Park and noted that this was a preliminary step. The building could not be built if the item was not approved tonight since abatement was contingent on finding a way to fill a gap in financing. Councilmember Latz asked staff to clarify which amount stated in the report was accurate for the current estimated property tax eligible for abatement Mr. Anderson clarified that the accurate amount was $37,000 Councilmember Latz stated that this location was the best as determined by the task force, but noted that the cost of soil correction, which has been holding up development on the site, wouldn't even be covered by the projected tax abatement He noted that none of the tax abatement money would be used for removing the billboard. He said the School Board has already approved the abatement and now there was a need to work with the County. Although he desired to see a more intense development on the site, he believed this was a good project. Councilmember Sanger was concerned about the gap in financing and was unwilling to support this proposal without knowing that amount She asked if staff knew an estimate of how much the developer might come back and ask the City for Mr. Anderson stated that the developer might be able to address this issue He stated that the amount in the report is what has been projected to be the maximum capacity that could be approved and that action tonight was an indication to the developer that this project was proceeding The developer could then take the next step with their investors and potential tenants by allowing them to spend additional funds This would give the County an affirmative indication that the City and School District had put the core public financing piece in place and may encourage the County to participate in the abatement Councilmember Sanger asked if the developer did request the amount stated in the report and how long the pay back would be on the total package. Mr. Anderson stated that incremental taxes would not finance the amount stated in the report. He indicated that what we were working toward and exploring were cost savings in the project to reduce that amount or identify other funding sources That may include a portion of the City's future tax collection and also may recoup some amount from the purchase of the land Councilmember Sanger was concerned about Council approving proposals incrementally and then opposing the same project at a later time She stated she was not willing to do things this way. In this case, it would be much easier to consider the proposal if the City had a clear sense as to whether there would be additional requests beyond the 10 year tax abatement She was also concerned that there was no sunset on the ultimate removal of the billboard on the site under this proposal and believed this would undermine the zoning ordinance and Comprehensive Plan on billboards. Councilmember Young stated that the billboard generated funds for the City and was a good contributor for the City He was not concerned about the abatement, but was concerned about the gap in financing and believed that these funds would be requested from the City. He questioned why there has been no new cost information since the July report. He believed that the project did not make sense if it were going to cost the City that much and didn't think the Council should move forward without additional public financing information. He believed that there were alternative buildings available in the City for physician's to lease with no subsidies needed from the City or tax payers. He didn't believe there was a real urgent public need to finance the moving of physician's from one part of St Louis Park to another. Councilmember Latz didn't believe that the existence of this billboard did any damage to the City's goal of removing billboards and felt that allowing the billboard to stay was justified because the decision would allow development of this parcel of land He believed this project would not occur without the County's agreement to the tax abatement and believed it was important for the County to hear a message from this City that we believe in the value of the project itself More importantly that the City believes this project is one where tax abatement is an appropriate tool to use. He believed it was important to pass the tax abatement portion and didn't believe the Council was committed to closing the financing gap in any other way by doing it Councilmember Nelson concurred with Councilmember Latz and was in favor of approving resolution in the interest of redevelopment. Mr. Harmening, Director of Community Development clarified amounts that were included in the budget for infrastructure improvements that might be necessary, cost concerns, and land value. Councilmember Nelson desired to see the billboard removed from the site, but pointed out that the owner is unwilling to sell the billboard and unwilling to agree to a sunset provision. If the City were to condemn the property, the additional cost would be unreasonable He believed the findings determined that it was in the City's best interest to redevelop this property and clean up the land and allowing the billboard to remain would accomplish this goal He asked the City Attorney to address the liability to the City if this proposal were approved tonight or if the City denied the developers request for funding. Mr Scott, City Attorney stated that he was not concerned about liability and based on what was stated in the resolution with contingencies it was clear to the developer that this project may not come together Councilmember Sanger stated that she was not willing to use any City funds to enable any billboards to remain and was concerned about going further down the path of a development. Councilmember Young believed that the original report didn't indicate that this area was a brownfield and questioned the reason for reducing the property value. He also noted another potential projects he was aware of that could house these dislocated physicians and noted that those projects were not asking for any public financing He was troubled that there were not cost projections available and felt this was was a delaying tactic by staff who wanted to get the abatement approved and then later request a large financing amount Mr. Anderson briefly explained the process of the proposal's development and asked Mike Denny of Frauenshue to address Councilmember Young's concerns. Mike Denny, Frauenshue Companies, explained that the numbers on the proforma were estimates and that the reason firmer financing figures could not be presented tonight was that the soil investigation report had just recently became available He stated that he was looking for some assurance from the financing bodies that they were in support of the abatement since the County has not done an abatement before Councilmember Young asked if the developer could indicate a minimal financing amount that they would have to ask the City for beyond the abatement. Mr. Denny stated that this number was not available He noted that if this site did not have the soil remediation issue, they could compete with another site that didn't have those issues. Councilmember Latz stated that the timing of the proposal was being driven by the County who was expected to consider the tax abatement in January Councilmember Brimeyer commented on the alternative of not approving the proposal He supported the tax abatement, but the financing gap had to get a lot closer to what he might value the land at. Mayor Pro-tem Jacobs supported the proposal, but was not willing to finance the amount of funding listed in the report to make the project go Councilmember Young stated that if this project didn't go forward, the worse that could happen was that the City would still have open space or an opportunity to hear proposals on more intense development that would be able to justify its costs He indicated that if the proposal was approved and there were going to be additional costs, the most the City should do is just donate the land It was moved by Councilmember Latz, seconded by Councilmember Nelson, to approve a resolution authorizing a tax abatement for the development of a medical office development at the southwest corner of Highway 7 and Louisiana Avenue The motion passed 4-2 Councilmembers Sanger and Young opposed It was moved by Councilmember Latz, seconded by Councilmember Nelson, to request staff to seek County Board action of the provision of tax abatement for the project and prepare a final economic development package for Economic Development Authority consideration following such action The motion passed 4-2 Councilmembers Sanger and Young opposed 7. Petitions, Requests, Communications - None 8. Resolutions and Ordinances 8a. Vacation of water and sewer utility easement at 5101 Minnetonka Boulevard Case No. 98-38-VAC Ordinance#2132-98 It was moved by Councilmember Nelson,'seconded by Councilmember Sanger, to approve second reading, adopt ordinance, approve summary and authorize publication. The motion passed 6-0. Councilmember Young asked if a commitment was received from this developer to fulfill an agreement to construct a sidewalk for a previous development project that had not been completed to date. Mr. Scott, City Attorney indicated that the City has received a written commitment from the developer to install the sidewalk at his cost in the spring 8b. Amendments to the Subdivision Ordinance and Zoning Ordinance Case No. 98-32-SOMA Ordinance#2133-98 It was moved by Councilmember Sanger, seconded by Councilmember Brimeyer, to approve second reading, adopt ordinance, approve summary and authorize publication The motion passed 6-0 8c. Second Reading of the Ordinance Amending the Water& Sewer Utility Rates for 1999 Ordinance#2134-98 It was moved by Councilmember Nelson, seconded by Councilmember Brimeyer, to waive second reading, adopt the ordinance and approve the summary of the ordinance for publication The motion passed 6-0 8d. Resolution to Adopt the 1999 Budget Resolution # 98-173 It was moved by Councilmember Nelson, seconded by Councilmember Brimeyer, to approve the resolution The motion passed 6-0 8e. Resolution Approving the Property Tax Levy for 1999 Resolution # 98-74 It was moved by Councilmember Nelson, seconded by Councilmember Brimeyer, to approve the resolution The motion passed 6-0 8f. Resolution to Amend the 1998 Budget Resolution # 98-175 It was moved by Councilmember Young, seconded by Councilmember Sanger, to approve the resolution. The motion passed 6-0 8g. Resolution authorizing payment of State funds to the City for landscape materials along TH 169 ' Resolution #98-176 By consent, Council adopted the resolution. 8h. Change Order No. 3 to Contract No. 4066 with Howard R. Green Company for Professional Engineering Services Resolution #98-177 Councilmember Sanger stated that the reason why she requested Items 8g and 8h to be taken off consent agenda was because there has been a significant delay to work being done on Excelsior Boulevard at significant disruption to traffic, residents and businesses and now the City was being asked to pay for significant change orders to cover these costs She asked how many of these delays and costs were because of City initiated changes verses being attributable to other entities who are working on project. Mr Moore, Supt of Engineering, noted that the contractor ran into some difficulties in the first phase of the project with multiple contractors were working on the South side simultaneously and conflicting with each other. Staff streamlined the construction process, but the contractor was behind and was being assessed for liquidated damages Craig Ebling, Regional Office Manager of Howard R. Green Company was present and reiterated that the project was complex and that they had had difficulties with contractors. He explained the amount of the Change Order included several construction delay factors that were unknown until the project began Councilmember Sanger asked how much of the expenses were attributed to City or County requests verses other reasons for a delay Mr Moore explained the expenses and noted that these costs have not been incurred at this point, but rather are what is anticipated to be additional professional services costs to complete the project. Mr Rardin indicated that the way the contract was set up originally was that there were two phases, Phase I pre-construction and Phase II construction and explained that various number of hours were estimated for each of the tasks in each phase, but this amount has been used up The developer didn't guarantee to provide all the inspection services with an unlimited number of hours. It was moved by Councilmember Nelson, seconded by Councilmember Brimeyer, to adopt the attached resolution authorizing execution of Change Order No 3 in the amount of$65,125.00 to Contract No 4066 for Professional Engineering Services increasing the total contract amount from $478,583 00 to $543,708 00. The motion passed 5-1 Councilmember Sanger opposed 8i. Change Order to No. 2 to Contract No. 14-98 with Hardrives, Inc. for the Excelsior Boulevard Streetscape Resolution # 98-178 Councilmember Nelson briefly commented on need for Change Order. Councilmember Sanger asked if the bulk amount of the expenses were attributed to City or County requests. Mr. Moore, Supt. of Engineering indicated that this was the case It was moved by Councilmember Nelson, seconded by Councilmember Sanger, to adopt the attached resolution authorizing execution of Change Order to No 2 in the amount of$163,340.63 to Contract No 14-98 with Hardrives, Inc. increasing the total contract amount from $2,115,845 91 to $2,279,186.54 The motion passed 6-0 8j. Right of way acquisition of trail easement on Smith property located at 7500 W. 27th Street Resolution #98-179 By consent, Council adopted the resolution authorizing the acquisition of a 14 foot wide trail easement and a temporary construction easement at 7500 W 27th Street by purchase or eminent domain for the Hutchinson Spur Regional Trail - City Project No 98-09 8k. Addendum No. 2 to the professional services agreement with Bonestroo Rosene Anderlik & Associates, Inc. (BRAA) for professional engineering services on the Park Place Boulevard/W. 15th Street Improvements Project No(s) 90-54 and 96-19. Resolution #98-180 By consent, Council adopted the resolution authorizing execution of addendum No 2 in the amount of$66,443 87 to the agreement with BRAA increasing the total contract amount from $66,100 00 to $132,543 87 81. Approval of lease agreement for a communications antenna with Bellsouth Wireless Data, L.P. (Bellsouth). Resolution #98-181 By consent, Council approved the resolution authorizing execution of lease agreement. 8m. Resolution of Approval for Special Laws enacted in the 1998 Legislative Session related to "This Old Apartment". Resolution #98-182 By consent, Council adopted a resolution approving Chapter 389, Article 3, Section 3 4 of the 1998 Session laws and directed staff to complete the Certificate of Approval to be filed with the Office of the Secretary of State 9. Reports from Officers, Boards, Committees a Vendor Claim Report By consent, Council accepted report for filing b. Planning Commission Minutes of November 18, 1998 By consent, Council accepted report for filing c. Human Rights Commission Minutes of November 18, 1998 By consent, Council accepted report for filing d Police Civil Service Commission Minutes of December 2, 1998 By consent, Council accepted report for filing 10. Unfinished Business 10a. Board and Commission Appointment(s) It was moved by Councilmember Nelson, and seconded by Councilmember Brimeyer, to appoint Coleridge H. Doe to the Community Education Advisory Council. The motion passed 6-0. 11. New Business lla. Golden Valley Dispatch Contract It was moved by Councilmember Nelson, and seconded by Councilmember Sanger, to approve the contract to provide dispatching services for the City of Golden Valley and authorize the Mayor and City Manager to execute contract. The motion passed 6-0. 12. Miscellaneous - None 13. Claims, Appropriations, Contract Payments a. Contract Payments Partial Payments: M.0 Magney Construction, Inc. $54,122 45 33-98 Flannery Construction, Inc $273,472.31 22-98 By consent, Council approved and authorized payments 14. Communications - None 15. Adjournment It was moved by Mayor Pro-tern Jacobs, seconded by Councilmember Nelson, to adjourn the meeting at 9 00 p m The motion passed 6-0 t yo,O• ( , / C. Clerk Mayor