HomeMy WebLinkAbout2007/03/26 - ADMIN - Minutes - City Council - Study Session CTY
111-ST!Lou°1FsOFFICIAL MINUTES
RK CITY COUNCIL STUDY SESSION
MARCH 26, 2007
The meeting,convened at 6:32 p.m.
Councilmembers present: Mayor Jeff Jacobs, John Basill, Loren Paprocki, Sue Sanger, and Paul
Omodt.
Councilmembers absent: Phil Finkelstein.
Staff present: City Manager (Mr. Harmening); Director Technology and Support Services (Mr.
Pires); Community Development Director (Mr. Locke); Planning & Zoning Supervisor (Ms.
McMonigal); Economic Development Coordinator (Mr. Hunt); Sr. Planner (Mr. Walther);
Human Resources Director (Nancy Gohman); Web Coordinator (Mr. Huber); City Clerk (Ms
Stroth) and Recording Secretary(Ms. Schmidt).
Guest Speakers: Pat Mascia, Duke Realty; Darryle Henry; Duke Realty; Bill Wittrock, RSP
Architects.
1. Future Study Session Agenda Planning
Mr. Harmening and the Council discussed study session agenda planning.
2. Duke Concept Plan and TIF Application
Mr. Locke stated this is an update on the Duke development proposal for the SW corner of I394
and Hwy 100 (West End project) and Duke's request for tax increment assistance. Since the
January 8, 2007 meeting, staff has worked with the developer to address the concerns of Council
and conform to the guidelines that had been discussed. He stated the process is presently at a
decision point and Council will need to decide if the concept plan and the level of assistance
requested by the developer is acceptable. He requested that Council provide direction for staff.
Pat Mascia, Senior Vice President, Duke Realty, described the West End Project. He stated this
is a 32 acre 1.5 million sq. ft project, estimated cost of over $360 million and the hope is to
complete both the office and retail space in its entirety within the next five years. The density
and mix of usage make this project quite unique and he considered it to be the "Gateway" into
St. Louis Park.
Darryle Henry, Duke Realty, gave a presentation on the site plan. Duke proposes providing
340,000 sq. ft. of single and multi use retail space, two parking ramps and a second level 12-
screen cinema. He estimates 4,400 parking stalls in the ramps and another 300 below grade
parking spaces. He stated they could create more green spaces, if they have a three building
complex versus the shown four building complex. He also stated they have some flexibility on
the site. Their proposed plan is to follow a Leadership in Energy and Environmental Design
(LEED) standard for the core and shell in the office building. He stated that 16th Street and a
skyway would connect the retail portion to the office building.
Study Session Minutes -2- March 26, 2007
Bill Wittrock, RSP Architects, stated the dense and urban site would allow people to enter the
site with ease from 16th Street or Gamble. He mentioned the roadway improvements on Park
Place. The integration of public space has also been looked into, as well as non-retail spaces.
The West End shops would be designed more for pedestrians with sidewalks, roadway, color and
lighting in mind. The office space would be a more symmetrical space with a large green area
for people to "chill out." It is also their hope to incorporate some type of security police sub-
station and a transit stop with several bus stops, as well as an atrium with elevators and
escalators. The single use retail would have their own entrance and be in control of their own
parking.
The current massing plan consists of the architecture being focused on the front doors at 16th
Street with articulation at intersections and possibly a clock tower to anchor the complex. Mr.
Wittrock stated their intent is that the green median could be used for community functions and
suggested the corners be articulated with outdoor seating. He suggested restaurants on the 16th
Street and Park Place corner, with views into the cinema and retail shops. West End Blvd. would
have the marquee for the cinema with a large entry area and an architectural point of interest.
He stated the parking structure would vary in architectural design of brick and pre-cast, have an
18' setback and a substantial amount of landscaping. They would like to have an organized
element of signage along the street and propose three dimension signs with logo, color and font
in between the arches. Each arch would allow for six potential tenants, eighteen in all.
Pat Mascia stated the Atrium space would be approximately 5,000 sq. ft and would have six to
seven levels all in glass. This is the item detailed in their TIF request. The proposal is to deliver
a "Class A" image. He stated there would be alternatives that would not require TIF assistance,
but it would create more of a suburban rather than urban feel project
Councilmember Carver asked why there wasn't a pedestrian connection to the green area. Mr.
Mascia stated they have to use a scissor type parking ramp for this project, and are not sure
where the pedestrian connection can fit through. Councilmember Carver stated he would like to
see more use of the open common area. He also asked if there would be an additional cost for
LEED-certification. Mr. Mascia stated generally there is a one to three percent increase in cost
to be LEED-certified.
Councilmember Omodt asked about the five-year plan and if it could be broken down. Mr.
Mascia stated they hope to start in the summer of 2007, spend another four months on the
infrastructure and go vertical in spring 2008. They would then hope to build at least one
speculative office building, which would be dependent on the market. He stated the office
building would draw potential tenants with its great location with views of downtown, which is
the main reason why office is located where it is. This placement would also offer coverage and
distract from the 25' grade change along Highway 100.
Councilmember Omodt asked about the traffic study with regard to bottlenecking and the reason
for the water being stored underground. Mr. Mascia said they estimate doing $5.4 million of off-
site improvements to allow for this density. He went on to state that in order to accommodate
this level of density, there would not be enough room to allow for ponding.
Councilmember Sanger inquired about the 16th Street exit onto Wayzata Blvd., if they would be
rebuilding Utica to allow circulation, and if Duke was going to maintain ownership or sell it off.
Study Session Minutes -3- March 26, 2007
Mr. Mascia stated the proposal includes road improvements and they intend to maintain most of
the office space, but would ultimately sell the retail as one unit.
Councilmember Sanger asked if the January traffic study included a Cedar Lake Road analysis.
Ms. McMonigal stated there hasn't been additional analysis done. Councilmember Sanger felt
this would still need to be addressed. Mr. Mascia stated the office building road impact would be
increased in the a.m. and p.m. He suggested they would be willing to make some modifications
to reduce the TIF assistance, but doesn't believe the modifications would meet the City's desire.
Councilmember Paprocki asked if this TIF request would drain the capacity of potential future
projects and also would like to see more stories added. Mr. Locke stated it is captured off tax
increment on the property so it is self-sustaining and should generate back what it uses.
Councilmember Sanger stated she would like to see more scaled back retail. She considers the
parking ramp a barrier and doesn't want billboards on the ramp, she stated they are contrary to
the ordinance She also stated there is a TIF policy stating what kind of projects could be
considered and stated she doesn't see anything extraordinary to compensate for 26 years of debt
or compliance with policy requirements. Councilmember Paprocki stated it could be 26 years of
worry. Mr. Mascia stated that this type of proposal is quite unique and could not be located
anywhere in the Twin Cities. He stated the density drives this project more than anything does.
Councilmember Basill asked where the City's TIF compares to other cities. Councilmember
Paprocki inquired if there was some type of cap. Mr. Locke stated that the Ehler's study showed
the city using about 91/2 percent capture on TIF money, which is fairly low. In 2009, it would be
at 81/2 percent with decertifying three TIF districts, which would be below norm.
Councilmember Basill would like to see more uniqueness for the amount of TIF being requested.
He stated the parking ramp still seems to be an issue, but he is confident it could be worked out.
He asked if this is where the City wants to use this amount of money. Mr. Mascia reminded
Council, it's self-generated money.
Councilmember Carver asked if the 26 years would be a result of assuming all the TIF possible
and would there be an option of only going out 18 years? Mr. Locke stated that with Ehler's
analysis it essentially would be the maximum. Councilmember Carver asked the amount being
generated now. Mr. Hunt stated with no inflation it's at $27.3 million and at 1% inflation it
would be $28.9 million.
Mayor Jacobs stated he would like to see the highest LEED-certification and know what the cost
would be. Councilmember Sanger commended Duke for planning for the LEED-certification.
Councilmember Omodt asked if there would be any kind of spill off affecting other properties.
Mr. Mascia said it would be hard to say.
Mr. Harmening asked Council if they felt comfortable having staff go forward. Mr. Locke stated
it is basically the same proposal as in January, with more details.
Councilmember Carver stated he does not approve of the signs. He also stated the current
ordinance states no signs on parking garages and asked whether it would require an ordinance
change.
Study Session Minutes -4- March 26, 2007
Mr. Harmening stated it would not preclude other TIF from other projects. However, it would
infringe on staff participation in the coming months.
Councilmember Omodt stated he was disappointed in what was shown tonight and would still
like to see a common place, but suggested staff proceed forward. Mr. Mascia stated this is not
going to be Arbor Lakes, this plan was driven with the Reston Town Center in Washington DC
in mind.
Mayor Jacobs stated he was impressed with the office building and would like to see more
options for the public space. He would like a higher LEED-certification but is not comfortable
with a 26 year TIF and would like Barry Warner to take a look at. Mr. Mascia stated they've
spent three years on this proposal and it would be difficult for anyone to come in and redesign it.
Councilmember Sanger suggested bifurcating it. She liked the office space, but would like the
retail re-looked at and requested some type of a winter gathering place. She stated she had a
discussion with Councilmember Finkelstein, stating he would like to explore more options.
Councilmember Basill asked if staff had looked at a TIF analysis to see what would be generated
over 26 years, opposed to TIF involved. He suggested Mr. Mascia come back with more
information addressing the Council's concerns.
Mr. Harmening stated he could hear the enthusiasm for the project, but Council has concerns
with the retail end. Mr. Locke stated the areas of concern are the retail end, parking lot signage
redesign, and some sort of a public place. Mr. Harmening asked Mr. Mascia if it is still a
workable deal and if he could make changes. Mr. Mascia stated the amount of assistance they
are asking the City for is less than 10%, but is open to alternative options from the City. Mr.
Mascia stated that signage on Park Place is critical. Mr. Harmening reminded Council that
today's presentation is not much different from the one presented in January.
Mr. Mascia stated he understood Council's request and will look at options to redevelop the
ramp, tying it into the community and a more creative community gathering place.
Mayor Jacobs requested Mr. Mascia work with staff and come back with more options.
3. Paperless Agenda
Ms. Gohman gave an overview of the paperless agenda and upgrade templates. She asked for
Council direction on proceeding further with the project Mr. Huber, Web Coordinator, gave a
presentation that was created in MS Word and Adobe Acrobat, stating this is the formatting that
the City of Minnetonka is using.
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Study Session Minutes -5- March 26, 2007
Mayor Jacobs liked the easy viewing. Councilmember Sanger asked how the Council would get
their information, by paper or electronically. Councilmember Carver asked what the price would
be per Councilmember. Mr. Pires stated they have an estimate of$3,000 - $3,500, which would
include a laptop, Adobe package with notemaking availability and downloading.
Councilmember Carver asked if the price for copies saved would justify the equipment cost. Ms.
Gohman stated that current estimates did not account for personnel time. Mr. Pires thought it
would be a couple hours a week. Ms. Gohman added that this would be very cost effective in
record entry. Councilmember Paprocki inquired about the price of Adobe Acrobat. Mr. Pires
thought a couple hundred dollars.
Councilmember Sanger asked if the City would be abolishing the way Council currently receives
their packets or if they would be able to request a paper copy. Ms. Gohman stated it would be up
to how Council developed the policy, but paper could be provided upon request.
Councilmember Sanger asked if the City provided Councilmembers with laptops, could it be
construed as raising Council's wages. Ms. Gohman advised that if the primary use was for City
business it would be appropriate. Councilmember Sanger asked if some of the items being sent
to Council could be eliminated. Ms. Gohman stated that most of the information is mandatory
but staff will look into that matter. Councilmember Sanger and Councilmember Omodt stated
they would prefer paper copies.
Councilmember Carver asked who pays for the developer copies made for Councilmembers.
Mr. Pires advised that generally the City does. Councilmember Sanger wanted to know why
developers aren't expected to supply the copies. Ms. Gohman stated they are, however they don't
always do that. Councilmember Carver suggested developers send the files electronically.
Councilmember Basill stated he would be willing to use electronic files if he had a designated
laptop. Councilmember Basill and Councilmember Paprocki commented on which would be
more environmentally safe, batteries or paper. Councilmember Paprocki suggested that with
electronic files they could do preliminary work prior to meetings.
Mayor Jacobs stated he liked the possibility of receiving it either way. Both Councilmember
Carver and Mayor Jacobs would be willing to "test" it out on their own equipment. Mr. Pires
agreed it would be good to see how it would work. Ms. Gohman stated that there are some
technical questions regarding using the Mac and those details would need to be worked out.
It was the consensus of the Council that they would be open to the template changes and
updating.,
Mr Harmening suggested having the author's address as a direct link. Councilmember Carver
asked if email and Internet would be allowed open during meetings and Mayor Jacobs suggested
leaving it open for access during meetings.
4. Planning Commission Annual Report and Work Plan
Mayor Jacobs stated the report and work plan looked wonderful and it seemed in order.
Mr. Harmening advised Council that property tax valuations were sent out to residents for 2008
payable, stating there was an average increase of 2%.
Written Reports provided and documented for recording purposes only:
Study Session Minutes -6- March 26, 2007
5. Human Rights Commission Annual Report, Bylaws and Work Plan.
6. Update on Highway 7 and Wooddale Interchange Project
7. February Financial Report
The meeting adjourned at 10:08 p.m.
Nancy Strode City Clerk Je' Ja • , :yor