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HomeMy WebLinkAbout1999/10/11 - ADMIN - Minutes - City Council - Study Session CITY OF OFFICIAL MINUTES IISATR.KLOWS CITY COUNCIL STUDY SESSION October 11, 1999 The meeting convened at 7:00 p.m. Present at the meeting were Councilmembers Jim Brimeyer, Ron Latz, Chris Nelson, Susan Sanger, Sue Santa, Robert Young and Mayor Jeff Jacobs. Staff present: City Manager(Mr. Meyer), Director of Community Development (Mr. Harmening), Planning Manager(Ms. Jeremiah), Human Resources Manager (Ms. Gohman), Director of Public Works (Mr. Rardin), and City Clerk (Ms. Larsen). 1. Park Commons Update Mr. Ruff of Ehler's and Associates, Mr. Bubul of Kennedy and Graven, and Greg Esterman of Avalon Bay were present at the meeting. Mr. Ruff gave an overview of the,financial plan analysis. He discussed the necessary steps to move forward with the project, the influence of the tax increment financing on the City, finance parameters, and fiscal disparities. He also mentioned the difference between the building cost of the project compared to the assessor's value. Mayor Jacobs felt that corners should not be cut to cover the five- percent gap in funding. Mr. Ruff stated the City is responsible for repaying the bonds, but it will fall to Avalon Bay to close the funding gap. Councilmember Sanger asked when at what point would the value of the project become equal with the funds put into the project. Councilmember Nelson was concerned with the fiscal disparities and suggested that a consistent policy with certain criteria be set to guide future development projects. Mr. Harmening stated that a policy had been written several years ago with the general rule that funds can be taken out of the district and the project can be re-evaluated if the needs change. Mr. Harmening warned against decertifying the existing TIF districts due to the potential impact on the investment (20 million in bonds). Mr. Esterman stated that he felt comfortable with the fact that Avalon Bay would be responsible for closing the funding gap. Councilmember Sanger inquired if the financing plan would improve if more owner-occupied properties were developed rather than rental property. Mr. Meyer responded that the Livable Communities principle does not produce the highest property value, and the focus was on improving the value of the community. Mayor Jacobs asked if funding was achieved, would the mix of property still be viable. Councilmember Sanger stated the she foresees the cost of the City contribution increasing and is concerned. Ms. Jeremiah replied that City financing will be thirty-three percent of the project and that is with all costs included. Councilmember Sanger then asked how the future phases of the plan would be affected by tapping out the TIF districts. Mr. Meyer replied the lower value of the property would assist in obtaining a new increment out of the district. Councilmember Sanger was concerned with funding and asked if the City was willing to end with just Phase I. Study Session Minutes -2- October 11, 1999 Ms. Jeremiah responded that the staff was expecting the South side of the project to be self- funded. Councilmember Nelson asked what the funding source would be for the north/south road. Ms Jeremiah responded that it was dependent on additional development to the west. She added that the expansion of the Park Nicollet facility could be the funding source. Councilmember Young inquired if the City and developers could participate as partners with the developers in setting lease rates and other such decisions. Councilmember Brimeyer would like to see a chart on what must happen for this project to be completed. He also added that he did not like the lack of ability to fund other projects in the future. Ms. Jeremiah stated that they were still working under a predevelopment agreement. Mr. Esterman reported on the current activities of the site plan. He stated that the refined pro forma would be ready in six weeks, and that Avalon Bay is working with Federal Realty on the lease agreements. Ms. Jeremiah reported on the Park Commons West open house. She stated that it was well attended and the majority of the comments were positive. She also reported that there were concerns with the north/south roadway and a lack of understanding involving the TIF recommendation. She then gave an update on acquisition and demolition for the project. 2. MSP Real Estate—Updated Preliminary Request for Tax Increment Financing Assistance; Mill City Plywood Site/7301 Walker St; 200 Unit Apartment Project. Mr. Kleve reported that the project is consistent with the Comprehensive Plan and the Zoning ordinance and the project would remove a blighting influence in the City. He discussed the sources and uses involved in the project, the environmental challenges, the use of TIF in the project, staff availability and support, and grant funding. Staff support of the project was contingent upon the developer obtaining grant funding. Councilmember Sanger inquired on the chances of grant approval. It was replied that grant money could reduce the payback period on TIF.Mr. Harmening stated that grant funds would cover the local contribution. He then asked Council if they supported the application for funding. Mr. Latz asked if Met Council would factor in housing goals. 3. Prosecuting Attorney Fees Council was in agreement with the staff recommendation to raise the hourly fee for Mr. Colich's services from $67.50 to $75.00 per hour. 4. 2000 Benefit Contribution Ms. Gohman reported that in negotiations with union groups, benefits dollars for each employee are the same regardless of their enrollment in single or family health insurance. She added that more cities in the surrounding area have equalized their benefits than was anticipated. She then discussed benefits relating to the recruitment of qualified employees. Ms. Gohman described the new tier system for health insurance where employees can choose options that are more suited to their individual need. Employees now have two more options to choose from that are more affordable than the family health insurance plan. Staff recommended that the same dollar amount be given for single or family insurance and the difference between supervisory and non- supervisory employees should continue. Study Session Minutes -3- October 11, 1999 Councilmember Young suggested that instead of increasing single contribution dollars, the family contribution amount should be lowered. Councilmember Sanger felt that salaries were too low. Council then discussed the job market. 5. Sidewalk and Trail Maintenance Mr. Rardin stated that the issue is not one of Council authorization but maintenance of the sidewalks and trails in question. He discussed how the City was keeping up with the current maintenance systems. He stated that if the staff tried to meet the timeframe set by the City ordinance code, it would be more costly. He added that the current ordinance only addresses sidewalks and not trails. Mayor Jacobs stated that he did not see a need to remove snow from the neighborhood sidewalks. Councilmember Sanger felt that it was not equitable to our residents to plow some sidewalks and not others. She added that if all sidewalks are not plowed, enforcement of the ordinance will become an issue. Mayor Jacobs suggested that perhaps neighborhood associations could participate in snow removal . He stated that the City should be responsible only for City property and trails. The question was raised on how enforcement would be handled. Council agreed that staff should return with a maintenance and enforcement plan. 6. Sidewalk issue at Quentin and 40th St. Councilmember Nelson suggested that this issue be incorporated into the sidewalk and trail plan. He also suggested that a policy be developed to address issues such as this. 7. Adjournment The meeting was adjourned at 10:35 p.m. /A, /A Cit Clerk F fp'