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HomeMy WebLinkAbout2008/08/25 - ADMIN - Minutes - City Council - Study Session I/I St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL STUDY SESSION August 25, 2008 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jeff Jacobs, John Basill, C. Paul Carver, Phil Finkelstein, Paul Omodt., and Sue Sanger. Council members absent: Loran Paprocki. Staff present: City Manager (Mr. Harmening), Community Development Director (Mr. Locke), Planning/ Zoning Supervisor (Ms. McMonigal), Economic Development Coordinator (Mr. Hunt), Finance Director (Mr. DeJong), Assistant Finance Director (Mr. Swanson), and Recording Secretary (Ms. Larrea). Guests: Robert Gallivan (Kerasotes Showplace Theatres), Peter Quill (Kerasotes Showplace Theatres), Frank Dunbar (Union Land II LLC), and Mr. Weber (Volunteers of America). 1. Future Study Session Agenda Planning Mr. Harmening presented the staff report. Items on the agenda for the upcoming study session on September 8, 2008 include Communication Towers, Dangerous Dog Ordinance and Real Estate Recycling Additional TIF Request. The remaining items on the September 8, 2008 agenda will be moved to a September 2, 2008 special study session. Councilmember Basill asked that a review of the animal ordinance be added to one of the upcoming study sessions. Mr. Harmening is going to instruct staff to review the ordinance and present a report to the Council. Councilmember Carver will not be in attendance for the September 2, 2008 study session. 2. West End Development/ Kerasotes Theatres Lounge Concept Mr. Gavin and Mr. Quill of Kerasotes Theatres presented to Council the proposed theatre that is part of the West End Development. They are hoping to get some direction from the Council on the concept, liquor licensing codes and food sales. Mr. Gavin explained to the Council that Kerasotes Theatres is interested in pursuing legislation that would allow liquor sales in movie theatres. They are hoping that the Council will also consider modifying the City's on-sale liquor license rules. Study Session Minutes -2- August 25, 2008 Mr. Gavin presented to the Council the building plans for the proposed theatre. They would like to create a third floor lounge where alcoholic beverages would be served. Only people 21 and older would be allowed into the lounge. There would be a check point to enter and leave the third level lounge. No drinks or food will be allowed out of this area. In the lounge they would serve food items such as appetizers, desserts, and snack items. The lounge would also have access to private seating within two of the fourteen movie auditoriums. There will be about 77-78 seats available with the theatre's premium seating. They are hoping to give an adult experience. Mayor Jacobs inquired as to whether there would have to be special legislation to allow them to serve alcohol within the theatre. Mr. Locke responded that in order to serve alcohol the establishment is required to serve a certain percentage of food to alcohol sales. Mayor Jacobs stated that he liked the idea of the theatre and was wondering if Staff would be able to draft up some language that would amend the current ordinance. Councilmember Sanger stated that she also likes the idea of the theatre. However, she is concerned with someone else calling themselves a theatre and taking advantage of amendments made to the ordinance in order to get around the smoking ban. She stated that when you begin to create exceptions you can fall down a slippery slop. Mr. Harmening noted that you would be able to have some control because of the fact that you must purchase a ticket in order to enter the premium lounge and you are not allowed to enter the lounge without buying a ticket. Councilmember Basill questioned if there was a way to avoid someone taking advantage of changes to the liquor ordinance by requiring applicants to have a certain square foot screen and charge a certain ticket price in order to be classified as a theatre. Councilmember Sanger questioned how they would deal with people that get loud and drunk. Mr. Garvin responded that this is not a club it is rather an adjunct to a movie experience. The wait staff would not allow people to over drink and the price point of the drinks would also hinder people from over drinking. Councilmember Sanger asked that they please make sure that there is not a fee when you reserve the tickets online. Mr. Garvin responded that they are in the process of trying to work something out with this. Councilmember Finkelstein questioned if you would be allowed to stay in the lounge after your movie was over. Mr. Garvin responded that this would be allowed, there will be a view and chairs to lounge in. Mr. Garvin continued that he hopes to solve their issues within the jurisdictional body of the City but they are prepared to go to the state legislature. Study Session Minutes -3- August 25, 2008 Mr. Harmening noted that as he understood it they would need changes to both state law and city ordinances. Mr. Locke responded that someone can qualify for a liquor license one of two ways. One is being a restaurant, the other is being a live theatre. It would be hard to characterize this theatre as either of these. Mr. Garvin noted that he would like to sit down with staff and work with the definitions and the ordinance to see if there is anything that they could work out. Mr. Harmening asked if this was something that that Council was interested in. If so he would have Staff explore the issue further. The Council agreed and would also like to have feedback from the City Attorney as well. 3. Hoigaard Village Adagio Senior Housing Proposal Mr. Dunbar presented to the Council regarding the Hoigaard Village Adagio Senior Housing Proposal. He proposed to the Council converting the "Adagio" condominium building, which is within the Hoigaard Village project, to an age-restricted (55 & better) rental building. Mr. Dunbar continued that they feel that the quickest way to get things moving is to take the Adagio concept off the market. He proposes to do this by converting ownership of this building to Volunteers of America, whose mission is to serve seniors. He feels that a non-profit owner would serve the needs of the project. There is also TIF issues, but he did not have any more information for the Council on that at this time. Mr. Weber the president of Volunteers of America presented himself and his organization to the Council. He noted that they hope to support seniors by providing them with a high quality of independent living. He also noted that this project would not include assisted care units. He asked the Council to allow his organization the opportunity to provide further information on their ideas for the project. Councilmember Basill noted that in the proposal they are changing the building from 58 to 98 units. He was concerned that this would increase the density of residents in an area that is already plagued with bad roads. The City is aware that the intersection in the area is failing. He also noted there are already several senior projects in this area and that this could potentially change the demographics of the area. He questioned if the City was in agreement with making this a seniors area. Councilmember Finkelstein noted that the City would be concentrating the area with senior projects and it is important to look at this neighborhood in terms of building it for the next 50 years. He also noted that this is a significant change from the original proposal for the site. He asked that Volunteers of America provide to the Council a 990 report as well as other documents. Councilmember Finkelstein also questioned how many changes can be made on what as applied for on the TIF application. Study Session Minutes -4- August 25, 2008 Mr. Locke noted that one of the things that staff has concluded is that if you look at the Elmwood Plan, it will be years until they have light rail in this area. A mix of housing supports light rail and is very important in this area. He also noted that this one project site was a very small piece of the total potential Elmwood redevelopment. Councilmember Finkelstein noted that he would like to see some affordable housing for seniors included as part of this project. He would like to see more public support of affordable housing. Councilmember Basill would like to go back to the neighborhood and confirm that they are in agreement with these changes. The neighborhood would also have to be informed if they are going to offer subsidized housing for seniors. Councilmember Sanger noted that she had several concerns with this proposal. She was concerned that there would be a deviation from the housing policy and an emphasis on owner-occupied housing. She is concerned with the addition of more rental units, which she feels is too many rental units. She questioned if this was something that they could put a hold on and possibly revisit in two years when the market is a little better. She also noted that the City agreed to the TIF based on a different plan, so that if the developer can change the plan the City can as well. Mayor Jacobs questioned if staff had the direction they needed to move forward. He also confirmed that he believes that staff should continue the work on the project. Mayor Jacobs and Councilmember Basill both noted that they were not interested in exploring subsidized housing in this area at this time. Mr. Dunbar noted that the current projected rental rates would be $1,500-$1,700 per month, with the largest unit being a two bedroom plus den, and smallest unit being a one bedroom plus den. Mr. Dunbar noted that there would be no change to "Medley Row" and that it would stay an owner occupied development. Councilmember Omodt noted that at this time the City is not in need of additional affordable housing. Councilmember Sanger agreed. Councilmember Finkelstein asked if the staff could present a report to the Council confirming the need for affordable housing in the City at this time. He would like to hear the staff say that the City doesn't need more affordable housing. Councilmember Carver agreed that there is no need for further subsidized housing in this area. He believes that doing nothing with the Hoigaard Village Adagio site is the worst thing that the City could do. He noted that it is all about location and he feels that this is a great location for senior housing with Target, Byerly's and medical facilities so near by. Councilmember Sanger questioned if a change in the project would affect the grants they have been given to support redevelopment in this area. Staff indicated it would not. Study Session Minutes -5- August 25, 2008 It was the consensus of the Council to continue discussions. 2. 2009 Preliminary Budget Mr. Harmening presented the proposed budget to the Council. He noted that staff has been able to make adjustments to some items in the budget and they are looking for Council feedback and direction on the 2009 Preliminary Budget and Levy. Mr. DeJong informed the Council that for the objective at this time is to set a preliminary tax levy. He noted that the budget does not need to be balanced at the current time. The charter requires that it be balanced by December. Mr. Swanson talked to Council regarding the levy limit implications. At the current time they have removed police and fire salaries and benefits from the calculations, which gives the city more levy capacity. The Finance calculations calculate the maximize levy limit. Mr. Swanson also noted that the staff is taking a conservative approach to allow the City Council the most flexibility when the final levy is adopted. The $21,912,419 levy represents a 6.27% increase over 2008. Mr. DeJong noted that the City has a projected gap of$251,634.00, with expenditures exceeding revenues. This takes into consideration the revenue generated within the levy limit and other estimated revenue as compared to proposed expenditures. The City has not done any of the other unwinding of LGA loss transfers other than the $50,000 reduction in the Police & Fire Pension Levy. What are left in the budget are unwinding technology replacement costs and the paying for the employee flex fund, which includes unemployment, training, and tuition reimbursement. The City has paid these costs for the past four years through transfers from the general fund excess fund balance. Mr. DeJong noted that the HRA Levy proceeds are being set aside to assist in paying for infrastructure improvements in redeveloping areas. Councilmember Omodt inquired as to whether they have looked into the increase that they are going to get and if this would mean that they could build a bridge faster. Mr. Harmening noted that there are a lot of infrastructure improvements that need to be completed. He also noted that this could have an affect on some projects. The City could be precluded and there could be some very large bonding limits. Councilmember Finkelstein questioned if they could be putting in a larger down payment. Mr. Harmening noted that in the next weeks and months the staff would be digging in deeper. Mayor Jacobs felt that the levy needed to be set at the highest level and then go down from there. He also noted that this has been the Council's process in the past. Study Session Minutes -6- August 25, 2008 Councilmember Sanger questioned if there would be time to go over specific budget items. She felt that there are some projects that the Council has discussed and as far as she can tell there is no budget to complete them. This included energy audits and a process to track vacant buildings. She also noted that the city is currently charging residents for the removal of diseased trees on the boulevard in front of their homes. She questioned if there would be funds available to change this policy. Mayor Jacobs would like to have the staff take a look at it. This is a policy that was changed in 2004. Councilmember Carver feels that there is some shared responsibility between the City and the resident in the removal of the tree. Councilmember Finkelstein would like to look at federal lobbying. He would like to find out the costs and the benefits. Mayor Jacobs feels that federal lobbying has been a waste of money. Councilmember Basill said that he would take the word of Mayor Jacobs since he has not been there himself. Councilmember Carver asked for the opinion of Mr. Harmening regarding federal lobbying. He questioned that if you did not have any federal lobbying then would the City stop seeing itself in some of the places that it is right now. Mayor Jacobs would like to get more feedback from the staff regarding federal lobbying. It was the consensus of the Council to present the levy as staff had shown and continue budget discussions later in the fall. 3. Communications (Verbal) The meeting adjourned at 8:35 p.m. Written Reports provided and documented for recording purposes only: 1. July Monthly Financial Report 2. Telecommunications Advisory Commission Mid-Year Update 3. Human Rights Commission Mid-Year Update 4. Police Advisory Commission Mid-Year Update 5. Amendments to St. Louis Park Home Rule Charter 6. Solid Waste Program Update 7. Update on Energy Audit of City Facilities/ I I f I — Nancy Stroth, ity Clerk Jeff J,$bs, ayor