HomeMy WebLinkAbout2010/11/22 - ADMIN - Minutes - City Council - Study Session I/ISt. Louis Park OFFICIAL MINUTES
MINNESOT A CITY COUNCIL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
NOVEMBER 22, 2010
The meeting convened at 6:30 p.m.
Councilmembers present: Mayor Pro Tern Susan Sanger, Phil Finkelstein, Anne Mavity(arrived
at 6:41 p.m.), Julia Ross, and Sue Santa.
Councilmembers absent: Mayor Jeff Jacobs and Councilmember Paul Omodt.
Staff present: City Manager(Mr. Harmening), Deputy City Manager/Human Resources Director
(Ms. Gohman), Controller (Mr. Swanson), Finance Supervisor (Mr. Heintz), Community
Development Director (Mr. Locke), Economic Development Coordinator (Mr. Hunt),
Planning/Zoning Supervisor (Ms McMonigal), Communications Coordinator (Mr. Zwilling),
City Assessor(Mr. Bultema), and Recording Secretary(Ms. Hughes).
Guest: Curt Rahman (CKJ Properties, LLC), Jeff Miller (Hoisington Koegler Group Inc ), and
Kim Justesen (Eliot Site Reuse Study Task Force representative).
1. Future Study Session Agenda Planning—November 29 and December 13, 2010
Mr Harmening presented the proposed special study session agenda for November 29`h, noting
that this will be a joint City Council/School Board meeting to discuss the freight rail matter. He
indicated that because a large crowd is expected for this meeting, the lobby, community room,
and Westwood room will be available so that people can watch the meeting on the television
monitors; the meeting will also be broadcast live on cable TV.
Councilmember Finkelstein suggested that a notice be placed on the local access channel
informing residents that parking and space are limited and that the meeting will be televised live
on cable He also suggested that the notice explain that this is a joint City Council/School Board
meeting for the purpose of reviewing the two freight rail reports from the County and there will
be limited time for community input at this meeting and there will be time for input later.
Mr. Harmening also presented the proposed study session agenda for December 13th
2. Construction Assistance Program (CAP) Application — CKJ Properties, LLC
(Former Bikemasters Building)
Mr. Hunt presented the staff report and advised that the EDA has received a request for CAP
assistance from CKJ Properties, LLC to assist in the renovation of the former Bikemasters
property located at 3540 Dakota Avenue South. He stated that in September of this year, Mr.
Curt Rahman purchased the property with the intent of renovating and re-leasing the property as
he has done with a number of other properties in the City. He indicated that the building is in
substantial disrepair and Mr. Rahman intends to replace the windows, doors, flooring, ceilings,
electncal, plumbing, and HVAC equipment He noted that this property is in an important
redevelopment area of the City and Mr. Rahman plans to spend approximately $210,000 in
renovations and is requesting $70,000, or one-third of the amount of renovation, to replace the
inefficient HVAC systems in the building. He indicated the property is currently valued at
$725,000 and upon renovation it could be assessed for $1.2 to $1.3 million by 2012. He
explained that the structure of the CAP program is similar to other projects, whereby the EDA
will reimburse qualified construction costs upon proof that were costs incurred and will be
Study Session Minutes -2- November 22, 2010
structured as a forgivable loan provided Mr. Rahman holds the property for five years, at which
point the entire loan would be forgiven. He then introduced Mr. Rahman.
Mr. Rahman provided a history of CKJ Properties, LLC and stated he purchased the former
Bikemasters property after it went into foreclosure and believes the building can be rented to a
number of different tenants because of the multiple entrances. He stated that the building is
currently vacant and he plans to spend the next several months fixing up the building, including
replacement of the eight HVAC units. He indicated he has already completed the landscaping on
the back of the building, as well as removal of all the garbage, replacement of half of the glass in
the building, and replacement of the security lighting and rusted doors.
Councilmember Finkelstein stated that he will not be voting on this item because he suggested to
Mr. Rahman that he apply for the CAP assistance. He stated that Mr. Rahman is a small property
owner and this request represents exactly the size and type of assistance the EDA has been eager
to provide, i.e., to help small businesses. He asked Mr. Rahman if he has received any inquiries
about leasing.
Mr. Rahman replied that he has placed some signs on the highway and spoke with someone that
day who is interested in the building. He added he felt that this property would be a good
location for a snowboard/bike shop.
Councilmember Mavity stated this request is exactly the type of assistance the CAP program was
designed for.
Mayor Pro Tern Sanger asked if the City would be reaching an agreement in advance with Mr.
Rahman on the minimum assessed valuation of the property after the repairs are completed.
Mr. Hunt stated that proposed projects under the CAP program are reviewed on a case by case
basis. In this case, it was thought that the City would not establish a minimum assessed valuation
of the property prior to providing the financial assistance. He indicated that this property has
gone through a tax court petition and upon renovation, the assessed value will increase
substantially. He stated minimum property assessments are typically put in place when a TIF
district is created. He added that in the case of Hardcoat, a minimum property assessment will be
included in the Development Contract because the City would be establishing a TIF District. In
this case, because of the size of the project, no TIF Distnct is being established so no so
minimum property assessment will be necessary
It was the consensus of the City Council to provide up to $70,000 in financial assistance through
the EDA's Construction Assistance Program to assist in the renovation of the former
Bikemasters building.
Mr. Hunt advised that a development contract will be presented for Council review in early
January.
3. Eliot School Draft Design Guidelines
Ms. McMonigal presented the staff report and introduced Mr. Jeff Miller, consultant with
Hoisington Koegler Group and Mr. Kim Justesen, Eliot Site Reuse Study Task Force
representative. She discussed the community process undertaken to date and stated the intent
was to define the use parameters prior to sale of the property and to gain consensus on general
Study Session Minutes -3- November 22, 2010
redevelopment items. She then presented the draft guidelines prepared following the task force
meetings which took place over the summer
Mr. Justesen expressed his thanks to Ms. McMonigal for allowing him to address the Council
regarding the Eliot Site Reuse Study Task Force and stated that when this process began, there
was a fair amount of skepticism about what would happen with the site. He indicated that people
just wanted to be heard and he expressed his appreciation to City staff, Mr. Miller and his
colleagues, and the School Board, for their willingness to sit back and let the neighborhood have
its say. He stated that there were a number of residents who were concerned about what would
happen to the neighborhood, but it became clear that resident's fears of not being listened to
were unfounded and that their ideas were in fact being considered. He stated that residents soon
recognized that economics play a big role and if too many constraints are placed on the School
Board, the property will not sell; as a result, a consensus began to emerge as to what would be
appropriate for the site in terms of design principles. He reiterated that the neighborhood is
appreciative of the time they were allowed to present their ideas and to be heard.
Mr. Miller explained that Vision St. Louis Park, St. Louis Park's Livable Community Principles,
and the City's Comprehensive Plan served as a framework in prepanng the design guidelines,
and any future development proposal will likely result in the need for a Comprehensive Plan land
use map change from "Civic" to "Medium Density Residential." He reviewed the site reuse
principles, which includes a mix of medium density residential land uses, with concentration of
taller and higher density buildings on the southern half of the site toward Cedar Lake Road. He
stated that the principles also stress the importance of complementing the existing scale and
character of the neighborhood, incorporating open space visible to the public, enhancing the
triangular open space area along Cedar Lake Road, and encouraging owner-occupied housing.
He also reviewed the site design guidelines which recommends a minimum of two types of
residential land uses and encourages public access to open spaces. He stated that the task force
felt strongly that any redevelopment should accommodate parking on the site rather than on-
street parking. He explained the building design guidelines, which include recommendations on
massing and placement, height, and frontage and articulation He indicated the guidelines
recommend building heights in the southern area of the site should be two to five stones, with a
preference stated for lower building heights if possible; building heights in the northern area of
the site should be two to three stories.
Ms. McMonigal advised that a number of comments were received at the October 14th meeting
regarding height and concerns regarding on-street parking; a petition was submitted by a task
force member for no more than three stories across the entire site. She stated that residents have
commented that they felt they were listened to, that they trusted the process, and that they
appreciated that their comments at each meeting were reflected in the work of the consultants.
She added that the neighborhood has requested an opportunity for additional input when any
development proposal is brought forward. She advised that a meeting with the School Board is
scheduled on December 13th and following any additional edits to the guidelines, the guidelines
will be incorporated into the Comprehensive Plan.
Councilmember Ross expressed her appreciation to staff and the consultants for their thoughtful
consideration of the neighborhood comments and concerns. She stated that the neighborhood
remains very interested in being included throughout the redevelopment process and asked that
the School Board and City staff continue to keep the neighborhood involved in the future use and
redevelopment of the site.
Study Session Minutes -4- November 22,2010
Councilmember Mavity expressed her support for the community process. She asked if there
were any shadowing concerns for the redevelopment of the site.
Ms. McMonigal advised that the current building does not shadow any adjacent uses and stated
that any redevelopment proposal would be required to meet the City's shadow ordinance.
Councilmember Finkelstein complimented staff on the cooperative neighborhood process. He
expressed concern that any single family homes built on the site will not fit the character of the
area and overwhelm the neighborhood.
Councilmember Santa also expressed her support for the community process and stated that the
draft design guidelines represent a worthwhile result of the process. She indicated that she was
in favor of a vanety of different housing types, and liked the idea of having seniors and families
living in close proximity to one another.
Mr. Justesen explained that the single biggest issue worked on by the task force started with the
idea of having only single family homes on the site; as time went on, it became clear that in order
to attract redevelopment, a mixed use would be required. He indicated that the site itself is
physically not large enough to sustain a large five-story complex and the task force
recommended a maximum of three stories.
The City Council discussed future rezoning of the site as it relates to the design guidelines.
Councilmember Ross assured residents that a rezoning would not happen without a proposal on
the table by a developer.
It was the consensus of the City Council to accept the Eliot School Site Design Guidelines as
developed and to incorporate the Site Design Guidelines into the neighborhood section of the
Comprehensive Plan.
4. 2011 Budget and Utility Rates
Mr. Harmening presented the staff report and advised that the Truth in Taxation notices were
mailed last week, the notices reflected a levy increase up to 4 88%. He stated that Council will
approval the final 2011 budget and property tax levy on December 20`h
Mr. Swanson presented the proposed levy options for 2011 and 2012 as previously discussed by
Council. He then presented a sample illustration of the impact of a 4.88% levy on a median
value home in St. Louis Park of $234,100 for 2010 and $223,400 for 2011, including water,
sewer, storm drainage, solid waste, and franchise fee increases; the estimated change from 2010
to 2011 is $150.40 per year. He also presented a sample illustration of the impact of a 4.88%
levy on a home valued at $500,000; the estimated change using the same assumptions for utilities
and franchise fee increases equates to an increase of $252.54 per year. He presented further
sample illustrations of the impact of a 4.0% levy as well as a 2.95% levy. He noted that the
City's property values are holding steady, but the City will see some of the tax burden shifting to
St. Louis Park residents due to the fiscal disparities pool.
Councilmember Mavity stated that her inclination is to hold the levy at 4.0% in order to keep the
levy at a more even rate in 2011 and 2012.
Study Session Minutes -5- November 22,2010
Mr. Swanson stated that if the preliminary levy were reduced to 4.0%, there would be challenges
in the Park Improvement Fund projected out in 2020, resulting in a higher levy needed in 2012.
Mayor Pro Tem Sanger expressed concern that the City may face additional budget challenges
particularly given the recent changes in the legislature. She stated that the State will likely be
forced to make additional cuts, resulting in cities having to take on more services that the State
currently provides, e.g., cities may have to do their own prosecutions and administrative
hearings. She indicated she was supportive of retaining a 4.88% levy for 2011, and added that
the impact to taxpayers between 4.88% and 4.0% is minimal.
Mr. Harmening advised that staff has been preparing year-end projections for 2010 and those
projections show the City ending the year in the black, which results in a healthy fund balance
for the City. He stated that it may make sense to move some of this money into the City's
capital budget areas where it is needed versus maintaining the money in the general fund
balance, which could be used to pay for the capital portion of the levy, thereby providing an
option to lower the levy for 2011 and still allow the City to remain in the same financial position.
He explained that the fire station bonds are driving the levy increase for 2012. He advised that
there is a 1999 G.O. bond issue coming off in 2014 in the amount of$500,000 and he felt the
City has some flexibility in its reserves to accelerate that bond issue coming off by two years or
using reserve dollars to pay off the bond, which means the capital portion of the levy could be
written down by half a million dollars.
Councilmember Santa agreed that the difference between a 4.88% levy and a 4.0% levy is
minimal. She stated she would prefer to bring more stability to the City's finances across the
board and was comfortable with a 4.0% levy.
Councilmember Ross agreed with Councilmember Santa.
Councilmember Mavity asked if this is the right time to look at the City's overall budget in terms
of staffing ratios, particularly in the Police Department.
Ms. Gohman stated that staff will be reviewing staffing ratios with Council in 2011, including
the possible addition of two police officers.
Councilmember Finkelstein stated that there are a lot of people in the community on limited
means and who are unemployed. He felt that the Council should give serious consideration to
reducing the 2011 levy given the City Manager's remarks regarding the City's healthy fund
balance and shifting some of the City's reserves to the capital side of the budget
Mayor Pro Tem Sanger respectfully disagreed and reiterated that the difference between a 2.95%
and 4.88% levy is small and the impact on any given person is minimal, while the impact on the
City's budget is significant. She stated that the City is not over-funded, there are a number of
projects needing to be done and funds should be earmarked for those projects. She reiterated her
concern about the uncertainty with the current legislature and stated this is not the time to take
the City's budget down to the bone when the City could get hit with additional expenses.
Councilmember Mavity stated that the City's budget reflects the fact that the City is doing
everything it can to act responsibly in the long term by putting other fee structures in place and
investing and planning ahead to assure that a healthy infrastructure is in place for the future. She
reiterated that her inclination would be to reduce the preliminary 4 88% levy because the City
Study Session Minutes -6- November 22, 2010
has enough of a strategy in place for the short term until it is determined what will happen at the
State level.
Mr. Harmening stated that the Truth in Taxation hearing on December 6th will present a budget
using a 4.88% levy; following public comment, the Council will have an opportunity to further
discuss the levy at its December 13th study session and formally adopt the budget on December
20th.
Councilmember Ross requested information regarding the City's communications to residents
regarding the tax levy and budget.
Mr. Harmening explained that communications have been sent to residents explaining the tax
levy and budget; residents will also be receiving an insert in their Xcel Energy and CenterPoint
bills regarding the franchise fee increase. He stated that additional communications could be
prepared for the local access channel and/or a guest column in the newspaper.
Mayor Pro Tern Sanger asked that the communication also address the difference between the
City's budget process that takes place in December and the valuation process that occurs in the
spring.
Councilmember Mavity asked that a summary explanation of the City's budget be included.
Councilmember Santa suggested including information about where tax dollars are spent.
It was the consensus of the majority of the City Council to adopt a 4.88% property tax levy for
2011, with the understanding that the December 6th Truth in Taxation hearing will assume a
4.88%property tax levy.
5. 2010 City Manager Performance Evaluation
Ms. Gohman presented the staff report.
Councilmember Ross stated that she liked the process used in 2009 and was amenable to hiring
J. Forrest again.
Councilmember Finkelstein stated that he felt the process used in 2009 worked well and
suggested that feedback be obtained not only from department heads but also from randomly
selected employees or elected leadership from the unions.
Ms. Gohman advised that the City recently completed a city-wide climate study that includes
comments regarding the City Manager and Department Directors; this information will be
presented to Council in the future.
The Council agreed that a copy of the executive report of the climate study should also be
provided to the Council for their review with this process.
It was the consensus of the City Council to retain the services of J Forrest to facilitate the City
Manager's 2010 annual performance evaluation.
Study Session Minutes -7- November 22,2010
6. Communications/Meeting Check-in (Verbal)
Council discussed the recent events in the City which resulted in negative publicity.
Mr. Zwilling discussed how staff responds to media requests for information. He discussed
Chief Luse's press conference following the Lakeland Inn murder. He stated that requests for
information following the Iowa murders were significant; however the city was limited in what it
could release because the suspect is a juvenile. He also discussed the upcoming Channel 4 report
following the recent dismissal of charges against a robbery suspect in Minneapolis, Richfield,
and St. Louis Park in which the Judge criticized the cities on the line-up process used. He stated
that inquiries regarding the ruling were directed to the County Attorney since the County
Attorney prosecuted these cases.
Mayor Pro Tem Sanger stated that she received several calls related to the Lakeland Inn murder
because of its proximity to a robbery Friday night in the Fern Hill neighborhood and another
robbery on Glenhurst about a month ago. She indicated that it appears some people are drawing
the conclusion that the robberies occurred because of the Lakeland Inn and persons who visit the
Inn are behind these robberies. She stated she received requests for information about police
visits to the Lakeland Inn as well as arrest information.
Mr. Zwilling stated that aggregate data has been compiled on the types of calls at this location
and agreed to provide this data.
Councilmember Santa stated that she received a comment asking about the City's provisional
license requirements and whether this applies to the Lakeland Inn.
Mr. Harmening indicated that the City's provisional license requirements will be reviewed with
Chief Luse and Mr. Hoffman.
The meeting adjourned at 9:21 p.m.
Written Reports provided and documented for recording purposes only:
7. October 2010 Monthly Financial Report
8. Highway 7/Louisiana Avenue Project Update
9. Community Recreation Survey Update
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Nancy Stroth, City Clerk Jeff J-/If!,:, •yor