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Home My WebLink About1999/12/13 - ADMIN - Minutes - City Council - Study Session JISTILOZCTY OFFICIAL MINUTES ARK CITY COUNCIL STUDY SESSION December 13, 1999 The meeting convened at 6:00 p.m. Councilmembers Present: Jeff Jacobs, Mayor; Jim Brimeyer, Ron Latz, Chris Nelson, and Sue Santa. Staff present: City Manager(Mr. Meyer), Community Development Director(Mr. Harmening), Planning Manager(Ms. Jeremiah), Housing Supervisor(Ms. Schnitker), Housing Programs Coordinator(Ms. Larsen), Economic Development Coordinator(Mr. Kleve), Public Works Director(Rardin), Police Chief(Mr. Luse), Fire Chief(Mr. Gill), and Deputy City Clerk (Ms. Stroth). Others Present: Greg Esterman, AvalonBay Communities; Greg Ingraham, Ingraham & Associates; Mark Ruff, Ehlers & Associates; Barb McCormick, Pride in Living Project(PPL); Steve Bubul, Kennedy & Graven; David Carland and William Franke, CSM Corporation; and Richard Palmatier, Rottlund Homes. 1. Park Commons Update Ms. Jeremiah reported the draft Environmental Assessment Worksheet (EAW) will be ready at the December 20 Council Meeting and after publication there would be a 30 day public comment period. Mr. Esterman, AvalonBay Communities, gave an overview of the December Preliminary Master Plan from retail market feedback which included the following key adjustments: O Deeper retail street front on Excelsior Blvd. to 38th and 39th Streets o 39th Street to become more residential limited to four corners o More flexibility to blocks 3 & 4 above the greens area Mr. Esterman discussed the realities of the retail market, parking needs, traffic issues, residential character, and new urbanism. He indicated this new plan is far less dependent on itself, simpler, and has more flexibility Councilmember Latz was concerned this plan was similar to a suburban strip mall with large parking lots in front of buildings with less pedestrian density and preferred more heavy retail on 39th Street. Mr. Esterman stated that with the new plan, the green area would be highly pedestrian. Councilmember Brimeyer felt the new plan would provide easier parking. Mr. Esterman stated the previous plan was high risk and had a challenging time frame. He indicated that the new plan helps the budget and the retailers favor Excelsior Blvd. Study Session Minutes -2- December 13, 1999 Ms. Jeremiah was concerned about the town green with heights being shifted on Excelsior Blvd. and the need for expansion space. Mr. Esterman indicated that he would be working closely with staff regarding the plan and adjusting the schedule. Councilmember Nelson questioned whether the zoning would allow block 3 to share required parking with block 2. Ms. Jeremiah responded that some percentage of sharing parking is allowed. She stated all that is publicly subsidized is not necessarily maintained in public ownership. Mayor Jacobs indicated support of the new plan but would like to see heights reduced on Excelsior Blvd. and office above retail. Discussion took place regarding quality restaurants and the need to provide more commercial parking. Mr. Harmening recommended a letter to Avalon Bay with comments on the plan direction acceptable and issues and concerns on moving forward. Councilmember Nelson questioned the zoning for block 3 and cost sharing. Ms. Jeremiah responded that some percentage of shared parking costs is allowed. She stated all that is publicly subsidized is not necessarily maintained in public ownership. Mr. Meyer asked about the land being sold to commercial developers. Mr. Esterman stated that not zoning the property as a mixed use may help increase value. Steve Bubel, Kennedy & Graven reviewed the financial keypoints including the following: • Infrastructure timing • Land acquisition • Financing ✓ TIF 1997 bonds ✓ LCDA Grant funds ✓ New TIF bonds for public parts of project (22 year cap) ✓ Taxable Increment Notes for private improvements, site preparation, parking ✓ Land sale proceeds go back into project • Security to include assessment agreement on each phase, guarantees of debt service • Developer partners in place ✓ Retail partner- Federal ✓ Office partner- Avalon Bay ✓ Owner occupied housing - EDA • Some percentage of retail space already leased • Avalon Bay will plat property and will sell off in phases Discussion took place regarding the EDA's participation in the project and having a share in market value increases. Mr. Bubul indicated the need for the project to go as scheduled to prevent remedies from delays. Study Session Minutes -3- December 13, 1999 2. Louisiana Court Redevelopment Update Housing Coordinator, Kathy Larsen, presented an update on the progress of the Louisiana Court Redevelopment Project including the following: • Specific analysis using eminent domain pertinent to litigation • Support of Project for Pride in Living (PPL) • Timeline of Project actions ✓ Dec. 8 Housing Authority review draft Redevelopment Agreement and Project financial pro forma ✓ Dec. 13 City Council to review Project financial pro forma ✓ Dec. 20 City Council approve Development Agreement with PPL and authorize eminent domain proceedings ✓ Dec. 22 LCDA Award notification ✓ Dec. 27 Bond allocation request It was moved by Councilmember Santa, seconded by Councilmember Latz, to close the Study Session meeting to an Executive Session. The motion passed 5-0. The Executive Session convened at 8:10 p.m. in the third floor Conference Room and closed at 8:40 p.m. The Study Session meeting reconvened at 8:45 p.m. Mayor Jacobs stated the Council will consider the Development Agreement with PPL,the Cooperative Agreement, and eminent domain proceedings at the December 20, 1999 City Council meeting. He thanked Mr. Ruff and Mr. Bubul for their work on the project. 3. CSM/Rottlund Corporation - Hotel and Townhome Project at Zarthan and 16th Street Economic Development Coordinator, Tom Kleve, presented an update regarding the CSM/Rottlund Project at Zarthan and 16th Street. He stated that staff prefers a 20-year limit on TIF and that CSM is requesting "pay as you go" TIF assistance for the hotel acquisition. Dave Carlton, CSM Corporation, stated they are ready to close and under a tight timeline. He indicated Rottlund Homes has offered 200% of appraised value in counter offers to three homeowners. He indicated NSP and Park Lane Company have still not responded. Discussion took place regarding condemnation negotiations and the need for assistance from the City. Mr. Carlton stated CSM is requesting that the city condemn the billboard using the quick take method and that CSM can buyout the billboard lease and take all financial risk. He stated the options would be to plan the site around the billboard, relocate it, or be without it. Richard Palmatier, Rottlund Homes stated they are willing to do slow take on the park properties. Mr. Kleve indicated this might result in the project not getting off the ground the same timeframe as CSM. Study Session Minutes -4- December 13, 1999 Mr. Meyer reviewed comments he received from Councilmember Sanger stating she was supportive of condemnation, phasing for a short time, and a 20-year payback period. He stated this is the first TIF project where the City makes a local contribution without a grant. Councilmember Latz was opposed to the use of condemnation for removing the billboard. Mr. Kleve summarized the council's conclusion of the following issues regarding the CSM/Rottlund Corporation - Hotel and Townhome Project at Zarthan and 16th Street: • TIF Assistance - up to 20 years. • Acquisition - utilize slowtake eminent domain on single family properties • Billboard - move ahead with eminent domain to buy out with assurance from CSM • Phasing - 2 Phase Projects simultaneously • Local Contribution - set aside $250,000 local contribution payment 4. Sidewalk Maintenance/Liability Finance Director McGann introduced Mark Casey of Berkley Risk Administrators who reviewed responsibilities and liabilities associated with sidewalks. Mr. Casey summarized the following insights: • Sidewalks are on City property. • There is not a large number of claims in St. Louis Park regarding sidewalks • Surveys from the League of MN Cities show claims usually high in other cities • Homeowner's responsibility, but City will repair at homeowner's expense. • Inspections should be monitored • Enforcement system needed to maintain sidewalks • City of Minneapolis posts notices • Some cities use Hold Harmless Agreements Discussion was held regarding a sidewalk inspection program, involving the neighborhood associations, and funding options. 5. Fire/Police Pension Police Chief Luse and Fire Chief Gill discussed Chapter 2222 Omnibus Retirement Bill Consolidation Accounts Excess Funding. Receipt of the money is contingent upon Council holding a public hearing and approving a resolution outlining the planned expenditures. Mr. Meyer stated priorities include keeping 90% of investment earnings for police and fire purposes and the remaining earnings added to the principal investment pool. Examples of some of the purposes for use of these funds in the Police and Fire Departments include technology, training, radio system, and employee development. He stated this legislation was due to economic growth, it is the taxpayers monies, and should be given to council for recommendation. Study Session Minutes -5- December 13, 1999 I 6. Y2K Status and Final Preparations Mr. Meyer stated that the City is ready for the new year, the Emergency Operations Center will be activated, and additional City staff will be on duty New Year's Eve and Day. 7. Adjournment The meeting was adjourned at 10:30 p.m. 1 ' /fl ,c,_—, ,� 4 � % Ci Clerk Mayor'/ / ` l l