HomeMy WebLinkAbout2001/06/25 - ADMIN - Minutes - City Council - Study Session ilCITY
,r- ST. LOUOF IS OFFICIAL MINUTES
PARKCITY COUNCIL STUDY SESSION
June 25, 2001
The meeting convened at 6:06 p.m.
Present at the meeting were Councilmembers Jim Bnmeyer, Ron Latz, Chns Nelson, Robert
Young, and Jeff Jacobs.
Staff present City Manager(Mr Meyer), Director of Community Development (Mr. Pires),
Economic Development Coordinator (Mr Kleve), Housing Supervisor(Ms Schnitker), Housing
Coordinator (Ms Larsen), Director of Finance (Ms. McGann), and City Clerk (Ms. Reichert).
1. Audit Presentation
Ms. McGann introduced Matt Mayor from Kern, DeWenter, Viere, Ltd. who presented an
overview of the city's recent audit.
Councilmember Young inquired about the PG &E investments Ms. McGann reported that the
PG& E cnsis in California had not negatively impacted the City.
Ms McGann stated that the GASB 34 reporting format goes into effect for 2003. Staff is
working to respond to the modified format and to begin putting financial information together so
that this new state requirement can be met.
2. Purchase Agreement with the Jewish Community Center
Councilmember Latz amved at 6 28 p.m.
Mr Harmening stated that staff would like to discuss with Council the request recently made by
the Jewish Community Center(JCC). The JCC would like to extend the termination date of the
purchase agreement from August to October 31, 2001 or to close on the property before all of the
land use approvals have been given. Staff reported that the appropnate approvals could not be
given before August 8
Councilmember Bnmeyer asked staff's preference to the proposed options and their
recommendation Mr. Harmening stated that he was concerned that postponing the land sale, as
well as extending the closing to October 31, may create confusion for the public.
Council directed staff to bring back an amendment to the purchase agreement that would provide
for a closing date no later October 31, 2001 Mr. Harmening stated that he will prepare the
documents and bnng them to the next Council meeting.
Mayor Jacobs stated that he would like to see feedback from the neighborhood meeting with the
JCC that will be held on the 28`h of June.
3. Park Commons
Bob Cunningham, TOLD, gave a legislative and financial perspective of the Park Commons
project.
Study Session Minutes -2- June 25, 2001
Steve Bubul, Kennedy & Graven, stated that TIF revenues may be reduced by legislative
actions. He stated that there would be an increase in the pay off of bonds to twenty years, rather
than fifteen, as well as who will control and develop an eighty feet property located on the west
side of the development area. Councilmember Bnmeyer stated that TOLD already has rights to
develop that property and is trying to assist with filling in the funding gap.
Councilmember Nelson arrived at 6:53 p.m
Council discussed flexibility in future phases, modifying the recapture provision, removal of
SAC payment, cost sharing changes, and accessing the state grant fund to make up deficits in
TIF payments
The meeting was recessed at 7:04 p.m. to convene a special meeting of the Economic
Development Authority. The meeting reconvened at 7:06 p.m.
Councilmember Bnmeyer would like to see some kind of matrix showing how funding works
with each option. Mr. Harmening replied that it would be difficult to provide numbers on some
of the items.
Councilmember Bnmeyer felt that the City needs protection against dire circumstances.
Councilmember Latz stated that protection should be in place to protect the city's interests if the
developer should change its sight to focus on other projects.
Mr Harmening replied that the development agreement will highlight the proposed changes and
will be brought to Council. He added that Mr. Cunningham suggested that more cash
($180,000) needs to be brought into the project. More funding may be available through the
Metropolitan Council.
Mr. Kleve said that they would like to be back for the first study session in July and then to take
action at second regular meeting on the 16th.
Mr. Cunningham stated that they are looking at a longer-term mortgage and would like Council
to give them the ability to finalize that prior to conveying ownership.
TOLD proposed that 38/39`h St be renamed. Council agreed that a name change must be made.
Mr. Bubul gave a brief presentation on the activity that is going on in the legislature regarding
the grant program and relief for cities from the negative impacts of the reduction in TIF
financing. Mr. Harmening suggested coming up with a one-page source/funding expenditure
sheet and making it available to Council.
Mr Cunningham informed the group that the groundbreaking ceremony will be held on August
20`h.
4. SW Highway 7/Louisiana Ave
Mr. Kleve informed Council that since they had granted a sixty day continuation to put together
the project, Frauenshuh has been working hard to market the site. Doctors are still interested in
relocating to this site. A separate building could accommodate the relocation of a local business
and it's warehouse.
Study Session Minutes -3- June 25, 2001
Council directed staff to move forwaid'with'Frauenshuh on the development.
5. Housing Improvement Area
Mr. Harmening, Ms Schnitker, and Ms Larsen gave an update on housing improvement areas.
One of the goals of Vision St Louis Park and the Comprehensive Plan is to ensure well-
maintained and safe housing. The current strategy still must address the aging townhome and
condominium housing, which is becoming a concern. The establishment of a Housing
Improvement Area (HIA) would help provide a tool to meet the housing goals.
Rusty Fifeld, Ehlers and Associates, explained the workings of an HIA. A specific area will be
targeted for improvement in which the costs incurred are paid in whole or in part by fees
imposed in that area. He suggested that the consensus of the homeowners be obtained on this
issue.
Councilmember Young asked why the owner association s are not Just assessing the owner's to
fund improvements Mr Fifeld replied that in a HIA, the city is "the lender of last resort".
Councilmember Nelson stated that the City needs an agreement of sort to ensure that the
rents/fees charges are sufficient to fund the payback.
Councilmember Young inquired what protection the City has if the property is sold.
Coundilmember Nelson also inquired how HIA assessment would show on property taxes.
Mayor Jacobs asked if the City was the appropriate agency to administer this program.
Councilmember Nelson felt that if the program maintained the housing stock and is fair to the
taxpayer's properties, then he would support it.
Councilmember Latz felt this program could achieve property maintenance, although condo or
townhome owners may be restricted from making repairs to their own unit by the by-laws.
Councilmember Young had several concerns regarding the program, such as deferral of
maintenance by property owners.
Councilmember Latz felt the City would rather see property improve as long as the proper
safeguards exist for the City as a lender.
Councilmember Young would like to see included a threshold as to when a HIA program is
appropriate.
Councilmember Latz felt that restrictions should be consistent between single and multiple
family housing.
Mayor Jacobs would like to proceed but also wants to see strong thresholds included.
Councilmember Nelson suggested including a disclosure clause in the agreement.
Study Session Minutes -4- June 25, 2001
6. Traffic Signal Considerations
Ms. Hagen provided samples of signal requests She described how considerations were
reviewed to see if the improvement was warranted and if the cost of installation would be offset.
Councilmember Bnmeyer believed that the proposed system is valuable but suggested weighting
criteria.
Mayor Jacobs felt the proposed criteria was good to use. He suggested staff move forward and
should apply the criteria in future decisions.
Council agreed that administrative discretion should be used in applying the criteria. Council
would like to be notified of traffic signal considerations and decisions through the City
Manager's digest or some other means.
7. Communications
Councilmember Latz reported that his term of office stated in the Comprehensive Annual
Financial Report was incorrect.
Mr Meyer informed Council of the protest that took place at the Novartis building.
Councilmember Bnmeyer would like to add the St. Louis Park Foundation as an item to the
future agenda schedule
8. Adjournment
The meeting was adjourned at 9:32 p.m.
.
ty Clerk Mayor ,