HomeMy WebLinkAbout2010/11/08 - ADMIN - Minutes - City Council - Study Session 17 St. Louis Park OFFICIAL MINUTES
MIN N ESCITA CITY COUNCIL STUDY SESSION
ST. LOUIS PARK,MINNESOTA
NOVEMBER 8, 2010
The meeting convened at 6:30 p.m.
Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Paul Omodt, Julia
Ross, Susan Sanger, and Sue Santa.
Councilmembers absent: None.
Staff present: City Manager(Mr. Harmening), Deputy City Manager/Human Resources Director
(Ms. Gohman), Community Development Director (Mr. Locke), Economic Development
Coordinator (Mr. Hunt), Communications Coordinator (Mr. Zwilling), Organizational
Development Coordinator(Ms. Gothberg), and Recording Secretary(Ms. Hughes).
Guests: Michael Kelner, Owner, Hardcoat Incorporated.
1. Future Study Session Agenda Planning—November 15 and November 22, 2010
Mr. Harmening presented the proposed special study session agenda for November 15th and the
proposed study session agenda for November 22nd
Councilmember Mavity requested that the discussion regarding the former Bikemasters property
include a discussion regarding how freight rail may or may not impact economic development in
this particular area.
2. Construction Assistance Program (CAP)Application from Hardcoat Inc.
Mr. Hunt presented the staff report and related CAP application from Hardcoat. He explained
that Hardcoat (currently located at 7300 West Lake Street) is proposing to purchase the former
Flame Metals property across the street, renovate the building, and relocate its business there.
He stated that once the renovation is complete, Hardcoat will occupy approx 25,000 square feet
of the 33,000 square foot building, with another 10,000 square feet of space being leased to a
complementary business. This space will also provide future expansion space for Hardcoat. He
indicated that the property is currently valued at approximately $1.1 million and it is estimated
that upon renovation, the estimated market value will be approximately $2.6 million. He stated
that the anticipated cost to renovate the building is estimated at $1.4 million and Hardcoat has
applied for up to $420,000 under the City's CAP program, which represents approximately 1/3
of renovation costs. He explained that the EDA/Council may wish to consider creating an
Economic Development TIF District to allow the EDA to pay itself approximately$190,000 over
the life of the TIF District. The City would provide funds to Hardcoat up front on a
reimbursement basis and as a forgivable loan provided Hardcoat stays and maintains the property
for over five years, at which time the loan would be forgiven. He added Hardcoat expects to
employ an additional 6-25 workers over the next five years as a result of the proposed project.
He then introduced Michael Kelner, owner of Hardcoat.
Mr. Kelner provided a brief history of Hardcoat and his ownership of the company. He stated
that the company's current location does not provide enough space for it to continue to grow and
the relocation provides an opportunity to improve and expand the company's operations.
Study Session Minutes -2- November 8, 2010
Councilmember Ross requested information regarding any environmental issues with the
company's operations.
Mr. Kelner stated that the City inspects the company on a monthly basis and performs sample
water testing. He added the company does not have any offset products that are sent into the
City's water supply and much of what they do is pH tested and any hazardous materials are
shipped offsite. He stated that the upgraded system being put into the new building will take out
and remove all contaminants, including aluminum. He presented drawings of the proposed
building and stated they will issue a permanent easement to the City for the walkways and
setbacks. He advised that the renovation plans for the inside of the building will allow Hardcoat
to occupy 14,000 square feet of production area, all masking areas will be separated, and will
include male/female locker rooms, storage rooms, a break room area upstairs for employees, and
an expandable office space.
Councilmember Sanger applauded Hardcoat's efforts in growing its business and its plans to
renovate the former Flame Metals property. She requested further information regarding the
anticipated job creation.
Mr. Kelner explained that Hardcoat projects to add additional 6-25 jobs with a starting salary of
approximately $25,000 per year up to $60,000 per year for quality manager positions. He stated
that the racker positions and specialized masking positions have a starting salary of$11-$12 per
hour. He added that the company currently has a 401k plan with a 5% match, dental insurance,
and a paid time off program. He is also currently investigating the addition of a medical
insurance program.
Councilmember Finkelstein expressed concern that this request represents a significant amount
of the monies available under the City's CAP program and would be used to create
approximately six new jobs paying $10-$12 per hour. He stated when the CAP program was
established, Council limited the projects to $250,000 unless it was determined that the project
met all of the City's criteria. He indicated that he felt this was a good project and wanted to
support it, but had some reservations about the amount of the funding request and whether the
project meets the goals of the CAP program. He added that there is also no commitment from
Hardcoat that it will add six additional positions.
Mr. Hunt pointed out that the creation of the TIF District would bring the amount of the funding
request down approximately $200,000. He stated that it is important to keep in mind that the
substantial renovations to the building will significantly increase the value of the property. He
added that the job component is only one of eight objectives listed within the City's CAP
program and this request provides an opportunity for the City to assist a small business and help
it to grow and become more prosperous. He noted that the proposed project in fact met the goals
of the CAP program.
Mr. Kelner stated that Hardcoat has added six positions in the last three years and the goal will
be to add not just six additional positions but as many as 25 based on the kinds of work the
company can attract over the next 3-4 years.
Mr. Hunt discussed the easement on the Flame Metals property and stated that Hardcoat will
dedicate a portion of this back to the City. He stated that the planned improvements to this area
will provide a much more attractive walkway.
Study Session Minutes -3- November 8, 2010
Councilmember Santa asked if any neighborhood meetings have been planned.
Mr. Hunt replied that if Council supports this project, a neighborhood meeting will be scheduled
and drawings will be available for viewing. Councilmember Santa recommended that the
neighborhood meeting include a drawing of the back side of the building since this is what the
neighborhood sees.
Councilmember Mavity asked if the company's relocation will result in any vibration issues
because of the building's close proximity to the train tracks.
Mr. Kelner replied that he did not believe there would be any vibration issues at this location.
Mr. Hunt advised that current TIF District legislation provides that any project must be started by
July of 2011 and no reimbursements can be made beyond December 31, 2011.
Mr. Kelner stated that current plans include acquisition of the property in December and
construction to begin sometime in January 2011 with a completion date in July 2011.
It was the consensus of the EDA/City Council to support Hardcoat's application for up to
$420,000 in financial assistance through the CAP program and the potential creation of an
Economic Development TIF District in conjunction with the project.
Mr. Hunt provided a brief summary of the Bikemasters CAP application for approximately
$70,000 in financial assistance, representing approximately one-third of renovation costs, which
will be used for energy efficient HVAC equipment.
3. Hoigaard Village Remaining Project Plans and Construction Schedule
This item was postponed on the agenda.
4. Process for Community Input on Environment
Mr. Harmening presented the staff report and stated that based on Council's discussion in
September, questioned were raised about the need for some type of venue for the community to
be able to provide ideas, input, and feedback on environmental related issues, initiatives, and/or
policies.
Ms. Gothberg then facilitated a discussion regarding Council's interest in gaining input from the
community on environmental issues.
Councilmember Mavity expressed her appreciation to staff for the helpful information that
demonstrates the breadth of what the City is currently doing as it relates to environmental issues.
She stated that she would like see something that promotes resident's ability to communicate
information in an interactive fashion so that they can share ideas and information with one
another. She added that a key aspect is not that the City is giving information out or people
giving information to the City, but that is interactive in order for people to learn from one
another. She indicated she did not feel that a permanent structure should be put in place, but
rather something more fluid that allows residents to take ownership of the process. She suggested
creating an open forum where meetings are scheduled to discuss a specific topic.
Study Session Minutes -4- November 8, 2010
Councilmember Ross stated she felt it was important to have multiple ways of communicating
with the City's various audiences and expressed support for use of social media as well as a
venue where people can come and exchange ideas, etc.
Councilmember Sanger stated that the City has done a lot of good work on environmental
protection types of projects and the concern that was raised earlier is that there are a lot of
residents who are making suggestions and asking questions,but this appears to essentially be one
way communication and does not involve residents talking to each other. She indicated that the
Vision process includes a strategic goal for environmental issues and an interest that people have
in talking to each other about these issues. She noted that there was a suggestion to form a
temporary task force of residents and to task them with the question of figuring out the different
ways the City can get community members talking with each other and the Council and
providing ideas and recommendations about good projects for the City to consider. She added
this could be akin to the way the Police Advisory Commission was formed.
Councilmember Finkelstein expressed concern about forming a task force and felt it was
important to keep in mind the overlapping work of the Parks and Recreation Commission and the
Planning Commission with respect to environmental issues. He also expressed concern about the
additional burden a task force may have on City staff.
Councilmember Santa acknowledged Councilmember Finkelstein's remarks and stated that the
City currently enjoys the significant expertise of staff, the Parks and Recreation Commission,
and the Planning Commission as it relates to the environment and it will be important to utilize
that expertise in this process. She noted that people want to be able to talk to each other about
issues and there should be a place where people can access a clearinghouse for information,
while at the same time, letting people know what the City is doing and finding a way to
piggyback on that.
Councilmember Omodt stated that there are chat boards available for this type of information
sharing. He indicated he did not feel the City should put itself in the middle of this because it is
not productive and people may assume that the City will agree to spend money on their ideas.
He stated he would be in favor of utilizing some survey questions to gain input from residents.
Councilmember Mavity stated that she was interested in finding a way to jumpstart the
communication process for residents and to at least provide a venue for people to come together
and talk about environmental issues.
Mayor Jacobs agreed that the City should use the expertise currently available to it and that there
is currently no central clearinghouse for residents to discuss environmental issues. He supported
the idea of hosting one or more meetings to discuss a specific topic and stated the City's website
should also include information about what the City is currently doing as it relates to the
environment.
Councilmember Sanger stated that there is a lot to be gained by asking people for their input and
she would like to see a more structured way for finding out what is on people's minds. She felt it
was important to invite people to comment on their perspectives on what the City can do better.
Mr. Harmening stated that the Vision process and strategic direction can be revisited if Council
desires to have a venue for a community dialogue. He indicated it will be very important to
manage community expectations and suggested extending the work of the Vision process by
Study Session Minutes -5- November 8, 2010
convening an open forum-type meeting for residents. He added that a Council discussion would
also have to take place to discuss staffing implications.
Councilmember Omodt suggested that if there was consideration of an open-forum on the
environment, we should consider doing the open-forum for all four areas of Vision. They are all
important and we should check-back on all of them.
Mayor Jacobs noted that one of the things that Council promised as part of the Vision process
was to periodically check back with residents and let them know what the City and Council are
doing. He suggested this check-in could be made part of a larger community celebration.
Ms. Gothberg summarized Council's discussion and stated the Council is desirous of utilizing a
myriad of ways of providing information on environmental issues to the public and should
provide a means for the City to hear from the public and vice versa, as well as a means for
interactive dialogue. She indicated that this information should include what has been done and
should be transmitted in a variety of ways, including cable television. She stated that Council
would also like some type of one-time public gathering in order to check in with residents on the
four areas of Vision. She noted that this information will be presented in a way that people
understand that the City and Council want to hear ideas and that does not provide any promise
that the City is going to do whatever is suggested, because it is important to respect staff and
financial considerations.
Mr. Harmening agreed that staff will prepare a recommendation for Council consideration.
5. Domestic Partner Voluntary Registration Program
Ms. Gohman presented the staff report and advised that Minneapolis, St. Paul, Duluth,
Rochester, Edina, and Maplewood currently have a registration program for domestic partners.
She noted that many cities ask their Human Rights Commission to review and make a
recommendation to Council.
Councilmember Sanger stated that a voluntary registration program will be useful for non-
traditional couples because it will provide documentation that substantiates their relationship,
particularly in a situation where one partner is in the hospital. She added that this type of
program will also serve to enhance St. Louis Park as a welcoming community, as previously
discussed by Council and the Human Rights Commission.
Councilmember Ross expressed support for a voluntary registration program, but was concerned
that the state legislature has this topic on its agenda and it may be prudent to wait and see what
the legislature does before taking formal Council action.
Councilmember Mavity stated if the City takes action on this now, it will send a clear message to
the legislature and to the general public on where the City stands on this issue. She agreed that a
voluntary registration program would enhance the City as a welcoming community and
instituting this type of program will be timely, given the creation of the Convention and Visitors
Bureau. She requested that if this topic is forwarded to the Human Rights Commission, that they
be given a timeframe in which to make a recommendation to Council.
Councilmember Omodt suggested that the City Attorney or the League of Minnesota Cities be
asked to provide a legal opinion on the legislature's pending consideration of the issue.
Study Session Minutes -6- November 8, 2010
Councilmember Sanger felt that if several communities pass this type of ordinance, it will serve
to strengthen the overall argument that it is important to protect family backgrounds.
It was the consensus of the City Council to direct staff to forward this issue to the Human Rights
Commission for consideration and have them make a recommendation to the Council. It was
also the consensus of the City Council to direct staff to concurrently obtain a legal opinion on
this issue.
6. Communications/Meeting Check-in (Verbal)
Councilmember Mavity provided an update on the SW LRT/Community Works Committee,
whose work is focused on land use around the light rail stations and transit-oriented development
along the route. She reported that the first three meetings included representatives from each of
the cities along the light rail route and discussion centered on the planning effort. She stated the
meetings have all been held in St. Louis Park She stated that the committee is asking for a
financial contribution from all of the municipalities along the light rail line, ranging from $4,000-
$6,000 to as high as $10,000-$12,000 for this year.
Mr. Harmening advised that the community works process is leading the effort to have all of the
communities in the County and other stakeholders work together to maximize the public and
private investment of the system being built, and to work together on land use, redevelopment,
and the infrastructure around the stations as a whole. He stated that the community works
process needs to staff this planning effort, and that is why each city is being asked to contnbute
toward the cost of that planning.
Councilmember Mavity stated that on Wednesday, November 10`h, she will attend an all day tour
of the Hiawatha and Central Corridor lines.
Mr. Harmening advised that the mayors of all cities along the light rail corndor, including Mayor
Jacobs, have been asked to sit on a Met Council Policy Advisory Committee with respect to the
construction of the light rail; Council will be asked to take formal action on this appointment on
November 15`h.
The meeting adjourned at 8:41 p.m.
Written Reports provided and documented for recording purposes only:
7. 2011 City-wide Property Maintenance Evaluation of One and Two Single Family
Detached Properties
8. Update on Purchase Agreement for Re-Conveyance of Vacant MnDOT Land
9. Update on Fire Station and Louisiana Court Bond Issuance
10. Update on Agenda for Joint City Counc' of Board Meeting
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Nancy Stro�y Clerk Jeff ac , Mayer