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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. i 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