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HomeMy WebLinkAbout2008/11/10 - ADMIN - Minutes - City Council - Study Session f/f Sts Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL STUDY SESSION November 10, 2008 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jeff Jacobs, John Basill, C. Paul Carver, Phil Finkelstein, Paul Omodt, and Loran Paprocki. Council members absent: Sue Sanger. Staff present: City Manager (Mr. Harmening), Community Development (Mr. Locke), Economic Development (Mr. Hunt), Finance Director (Mr. DeJong), Assistant Finance Director (Mr. Swanson), Management Assistant (Ms. Honold), Planning and Zoning Supervisor (Ms. McMonigal), and Recording Secretary (Ms. Larrea). Guest: Scott Bader (President of Bader Development, LLC. and a principal of Steven Scott Companies), Vic Moore (Franzen & Associates), and Dennis McGrann (Lockridge, Grindal, Nauen). 1. Future Study Session Agenda Planning— November 17 and November 24, 2008 Mr. Harmening presented the staff report. On November 17`h Friends of the Arts will attend the study session. The meeting will begin at 6:45 p.m. Mr. Omodt questioned if Friends of the Arts will be proposing building a structure. He would like this clarified before the meeting. On November 24th the Councilmembers will be having their photos taken at 6:00 p.m. 2. Business Terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project Mr. Hunt presented the staff report. He requested feedback on the proposed Business Terms and, if acceptable, asked if the EDA/Council was willing to call for a public hearing regarding the creation of a Redevelopment TIF District to facilitate the proposed project. Mr. Hunt noted that the preliminary TIF request was $900,000, however more had been learned about the redevelopment site and Bader Development had more accurately estimated the construction costs of the proposed project. It had been determined that there are greater extraordinary costs than previously anticipated. As a result, Bader Development requested up to $1.45 million in tax increment financing to offset the extraordinary redevelopment costs associated with The Ellipse on Excelsior project. Councilmember Finkelstein questioned if they kept in mind that the motel or apartment sites could later be redeveloped. Mr. Bader confirmed that they have kept this in mind. Councilmember Finkelstein questioned if the Council should include this as a requirement in the TIF request. Mr. Locke responded that this will not really affect the motel site. Councilmember Finkelstein wanted Study Session Minutes -2- November 10, 2008 to make sure that whatever happened to the motel site in the future, that they would have access to public utilities. Councilmember Basill questioned why the proposed building had to be five stories tall. Mr. Dovolis, the project architect, responded that this was the size that they needed in order to meet the retail requirements, construction efficiencies, and proforma targets. They could make the building shorter but then they would need to also make it wider, which would push into the neighborhood. Councilmember Finkelstein questioned how tall five stories would be. Mr. Dovolis responded that it would be about 60 feet. He continued that the structure they are proposing would range from 50- 60 feet in height. Councilmember Finkelstein questioned why the additional $250,000 was needed. Mr. Locke responded that it is for the relocation of utility lines. Councilmember Finkelstein questioned, assuming everything moved forward smoothly, when they plan to break ground. Mr. Hunt responded that Bader hopes to break ground next spring and that it would take about a year and a half to complete. Councilmember Basill asked for confirmation that Bader Development had its financing in place. Mr. Michael Margulies, Bader's attorney, confirmed that Bader had obtained the necessary funding commitments in place. Councilmember Paprocki questioned why this was not a good contender for LEED. Mr. Hunt responded that there was not likely to be significant energy savings in this type of a building. The main reasoning being that residential buildings are much harder to control than commercial ones. Mr. Hunt continued that the developer is including some green features but would not be able to reach the LEED certification without significant financial assistance from the City. Mr. Harmening asked Mr. Locke to explain the public art piece. Mr. Locke explained that Bader will be incorporating public art in the plaza. They have agreed to have the community involved in picking the artist and choosing the art. Bader is proposing a distinct landscape plaza. They would like to have an integrated public art piece and plaza. Mr. Bader responded that they would like to select the artist as soon as possible. They would like the boulevard, the plaza and the art piece to complement one another and be cohesive. Councilmember Paprocki questioned what was going on with Hoigaard's and their public art. Mr. Locke responded that Dunbar Development has designed and will be funding the art for that plaza. Dunbar has selected a piece and Mr. Locke said he would bring in the model for the Council's review. It was the consensus of the Council to move forward on the project and to call for the public hearing. Study Session Minutes -3- November 10, 2008 Legislative Update Mr. Harmening presented to the Council a draft of legislative issues and priorities for Council's review and discussion. Councilmember Carver asked about the prospects for funding infrastructure in the future. Mr. McGrann responded that Congress is interested in long term investments in infrastructure over rebates or short term cash infusion. He also noted that the second stimulus package will be 100% federal money and it will come up for vote after President Elect Obama is sworn in because President Bush has said that he will veto any future stimulus packages. Mr. McGrann also discussed the reauthorization of the six-year transportation bill (SAFETEA-LU) in 2009. The Council discussed the use of lobbyists and agreed that the city should continue to contract with Franzen & Associates and Lockridge Grindal Nauen for 2009. Council agreed that lobbying expenses should be evaluated annually. Ms. Honold provided the Council with an update on the Glencoe Railroad Mitigation Project and the grant which MnDOT submitted to the Federal Railroad Administration. Councilmember Paprocki noted that they had a meeting with Twin Cities & Western Railroad and asked that staff continue to work with the railroad to ensure that rail car sorting and blocking activities will be moved out of the city if the grant money is secured. Mr. Moore talked with Council about his involvement in the League of Minnesota Cities' Residential Care Facilities' stakeholder group. He also discussed two piece of proposed legislation. The first bill would eliminate the sunset provision on Housing Improvement Areas and the second bill would extend the life of the Elmwood TIF District. Councilmember Finkelstein asked about the legislative short fall. Mr. Moore responded that it looks like there is enough money to get through the current fiscal year but fiscal year 2009 and 2010 are going to be bleak. Mr. Moore stated that he would know more after the financial forecast is released in early December and he would keep the City informed on any changes. 3. Comprehensive Plan Update Ms. McMonigal presented to the Council regarding the Comprehensive Plan update. The Comprehensive Plan is a long range plan that carries out the City's vision for the future. It sets goals, policies, and direction in a comprehensive manner and provides a framework for achieving the City's goals. Ms. McMonigal noted that staff would like to bring a draft plan to the neighborhoods for input. Mr. Harmening noted that staff is hoping to enter into the public initiation phase. Councilmember Omodt questioned if Council would be reviewing the neighboring cities' Comprehensive Plans. Ms. McMonigal responded that it is generally a staff to staff exchange. Study Session Minutes -4- November 10, 2008 4. 2009 Budget and Levy Mr. Dejong presented to the Council and asked for more direction on the final levy amount that the Council would be comfortable in considering. Mr. Harmening reviewed the items of the budget that have changed since October 13, 2008. First, staff has received a revised levy limit determination from the Department of Revenue. The levy was originally estimated to be at 6.27% but has now been set at a 5.8% levy. Staff has analyzed the permit revenue history and has now come up with a number they feel would be more consistent from year to year. This reflects an increase of$260,000. Staff is anticipating strong permit revenue in 2008. If permit revenues come in lower than the $1,500,000 level used to prepare the budget document, the fund balance will remain comfortably above 40%. Councilmember Omodt questioned the market value homestead credit. Mr. Dejong noted that this credit is a declining revenue and could be cut by the State at any time. Currently it is about $700,000 a year in revenue. Councilmember Paprocki noted that the Council will have to go with the maximum on the levy limit. He also noted he felt that they could minimize the Park Perspective. He doesn't feel that the mailing is environmentally friendly and that it should be sent out electronically. Councilmember Finkelstein felt that the City should go with a 5.8% levy limit. Councilmember Carver also agreed that they needed to go with the maximum 5.8% levy limit. In regard to the Park Perspective mailing, he wanted to give residents an option to opt for an electronic version so the City is still reaching out to them. Mr. Harmening questioned the Council if they would like to look into the $90,000 they currently have in the budget for the school liaison. He noted that currently the schools pays for half of this service and the City pays for the other half. The schools would like assistance with this cost. Councilmember Omodt noted that he would rather have a list of items to analyze and discuss them simply, discussing ones that come to mind. He feels that it is unnecessary to send out the truth in taxation mailing and there is no reason to spend money on a mailing that could be posted on the City's website. Mr. Harmening suggested looking at the cost of supervising the clearing of sidewalks after snowfall. Councilmember Carver noted the City has to be prepared to explain these costs. Councilmember Omodt questioned when the Council will be presented with a list of the items that could possibly be eliminated. He also noted that he would like to see this process done with some type of sequence. Study Session Minutes -5- November 10, 2008 Councilmember Paprocki noted that the current times called for a full evaluation of the City's programs. He suggested posing a question to department heads, what are small budget programs they could live without. He would like these programs first identified by the department heads and then reviewed by the Council. Councilmember Carver would like to focus on finding the programs that made it into the budget but now don't have a place. Councilmember Finkelstein noted that he likes the idea of evaluating programs to see if any could be eliminated. He is not interested in taking away the funding for the police liaison. Mr. Harmening stated that staff will try and put together of list of programs for the Council to review. 5. Communications (Verbal) Mr. Harmening noted that the City recently completed a compliance check on Pawn America. They did not pass. Mr. Harmening noted that Benilde St. Margaret's is planning to complete some field improvement and there will be a small group meeting on this. Mr. Harmening noted that the recount on the State senate race will be taking place next week at City Hall. Mr. Harmening noted that STEP has asked for some help and he questioned if staff should further explore helping their program. There is a possibility of a one time allocation. The meeting adjourned at 9:45 p.m. Written Reports provided and documented for recording purposes only: / Nancy Stroth, City Clerk Jeff Jaco i s, a r