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HomeMy WebLinkAbout2002/11/25 - ADMIN - Minutes - City Council - Study Session CITY OF ST. LOUIS OFFICIAL MINUTES 71- CITY COUNCIL STUDY SESSION November 25,2002 The meeting convened at 7:08 p.m. Present at the meeting were Councilmembers Jim Brimeyer, Chris Nelson, Sally Velick, Susan Santa and Mayor Jeff Jacobs. Councilmembers Ron Latz and Susan Sanger were absent Staff present were City Manager(Mr. Meyer); Director of Community Development (Mr. Harmening); Director of Finance (Ms. McGann); Economic Development Coordinator(Mr. Hunt); Planning Coordinator(Ms. Erickson); Director of Human Resources (Ms Gohman); Director of Parks and Recreation (Ms. Walsh), Parks and Recreation Superintendent (Mr. Birno); and Recording Secretary (Ms. Samson). Guests present were Mr. David Cooke, Park Nicollet Senior Vice President & Chief Financial Officer, Mr. Duane Spiegle, Park Nicollet Vice President of Real Estate and Support Services; Mr. Tony Kuechle, United Properties; and Mr. Steven Bubul, Bond Counsel from Kennedy & ' Graven. 1. Update on Park Nicollet Health Services Growth Plans and Interest in Issuance of Private Activity Revenue Bonds Mr Cooke and Mr. Spiegle briefly reviewed Park Nicollet's preliminary plans, and the preliminary costs associated with their campus expansion plans. Mr. Spiegle said Park Nicollet would like to have the heart and vascular center at Methodist Hospital operational by June of 2005 Mr. Spiegle said the potential schedule for a blue lot parking deck or ramp is slated for June of 2004 to June of 2005 Mr. Spiegle commented that Park Nicollet would like to consolidate their information into one document. Mr. Cooke reported that financing for the heart and vascular center would involve $60 million in private activity revenue bonds for a term of 30 years at a fixed rate, and the uses are listed as: $50 million for the heart and vascular center, $5 million refunding Senes 1990-B, and $5 million debt reserve fund. Among those who attended the neighborhood meetings regarding the Park Nicollet campus expansions, it was agreed that the meetings were informative for all. Councilmember Santa asked for general information about the heart and vascular center. Mr. Spiegle answered that the center will provide in-patient and out-patient care. Park Nicollet will require about 34 cardiologists and, it is important to note, all physicians will be Park Nicollet staff, i.e., no independent physicians Mr. Cooke remarked that to keep up with technology, additional space is a necessity. An additional 200-250 parking spaces will be needed. Councilmember Nelson suggested having Park Nicollet officials appear on Deputy City Manager Clint Pire's community television program. Civic Television Coordinator Reg Dunlap is working with Park Nicollet. Study Session Minutes -2- November 25, 2002 Mr. Cooke stated that the bond rating would be approximately A-, however; insurance would not, in a cost-benefit analysis, improve the marketability of the bonds and, therefore, he didn't think insurance would be feasible. Mr. Cooke added that there may be a potential mortgage, as an additional security, in order to finance the bonds. Council agreed that they will consider private activity revenue bonds for Park Nicollet. Mr. Harmening remarked that perhaps there could be a June 2003 issuance. Councilmember Nelson took advantage of the transition between items 1 and 2, and offered his comments regarding the Vision St. Louis Park presentation, which took place Just prior to tonight's study session. 2. Options Regarding United Properties' Proposed Commercial Development at the Southwest Corner of Highway 7 and Louisiana Avenue Mr. Hunt reported on Staff's endeavors to explore development options 1-4 (see below) for the southwest corner of Highway 7 and Louisiana Avenue. Those options were: 1. Condemn and remove the billboard 2. Relocate the billboard 3. Billboard remains in place; developer purchases excess billboard property 4. Sell the City's property outright 5. Do nothing and continue to hold the property Mr. Kuechle, United Properties, reported that no construction would take place for five years. Because the demand for office space is currently weak, Mr. Kuechle said likely occupants would be a bank of 6,000 or 12,000 square feet, a Culver's restaurant of 4,500 square feet; and a medical user of 10,000 square feet on the first floor and an additional 5,000 square feet upper floor. Mr. Kuechle distnbuted drawings titled "Modified Scheme B," "Scheme C," and "Scheme F." A modified Scheme C was discussed, and Mr. Kuechle stated that United Properties would pay $150,000 for such. It was noted that the land is valued at $4.00 per square foot, which equals $545,000. Councilmember Santa asked about a traffic signal at 37th and Louisiana Avenue, and the response was that there would be one at that location. Mr. Hunt indicated that Cardinal Glass will be vacating their facility. Councilmember Nelson would like to discuss the development potential of this corner with physician providers. Mr. Kuechle said he will submit a modified Scheme C on paper. He added that United Properties does not need financial assistance from the City; it will cost $15,000 to engineer the site. Study Session Minutes -3- November 25, 2002 Council directed Staff to proceed with option 4 (sell the City's property outnght). Mr. Harmening will present a formal proposal 3. Proposed Commercial Development at the Northeast Corner of Louisiana Avenue and Walker Street Mr. Hunt bnefly reported on ALDI's interest in building a 15,150 square foot grocery store on property owned by the EDA at the corner of Louisiana Avenue and Walker Street. Mayor Jacobs expressed concern for and asked about overflow parking from Park Tavern. There is no answer tonight but Park Tavern overflow parking is and would be a concern no matter what future use is established for this corner. Mr. Hunt said the market value of this EDA property is $270,000. Mayor Jacobs remarked he is concerned about traffic volume in this area. It was stated that ALDI would require 90 parking spaces. Council's directive for Staff is to pursue ALDI and Park Tavern's owner Mr Phil Weber to work out a deal and return to Council. 4. Sponsorship Program for Parks and Recreation Special Events Ms Walsh and Mr. Birno bring this item forward because they would like to link partnerships, e.g., Target, to generate sponsorships. Mr. Birno said they would like to initiate such sponsorships for the fall of 2003. It is anticipated that sponsorships could generate $20,000 annually Additionally, Staff would prefer to focus on one-time special events as opposed to programs that continue for several weeks. Mayor Jacobs expressed approval—if the sponsorships are done in a tasteful fashion. Councilmember Velhck and Mr. Meyer said it would be imperative not to lean on businesses to sponsor a program. Ms. Walsh and Mr. Birno said sponsorship would be secured once a year. Mayor Jacobs strongly stated that businesses are to come to the City, therefore, cautiously go forward with the sponsorship program. Council will review Staff's information before it is public. 5. Paid Time Off Policy Ms. Gohman reported on paid time off as it relates to salary limitations, i.e., a salary cap. Councilmember Bnmeyer suggested a float with the cap There was discussion and agreement among the Mayor, Councilmembers, and Staff that salary caps are highly restrictive, burdensome, and a pain in the neck. Ms. Gohman will prepare a policy statement for the Council. . i Study Session Minutes -4- November 25, 2002 6. Communication from the City Manager Mr. Meyer discussed a public art project along Excelsior Blvd. and other major thoroughfares involving banners. The City would purchase blank banners and members of the St. Louis Park community would silkscreen the banners under the supervision of artists. Special Service Distncts may help with funding. Council is very receptive to this idea. 7. Adjournment The meeting was adjourned at 9:15 p.m. C., k Ma or �`� Ci Cler /