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HomeMy WebLinkAbout2010/03/08 - ADMIN - Minutes - City Council - Study Session litSt. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA MARCH 8, 2010 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Pro Tern Susan Sanger, Phil Finkelstein, Anne Mavity, Paul Omodt,Julia Ross, and Sue Santa. Councilmembers absent: Mayor Jeff Jacobs. Staff present: City Manager (Mr. Harmening), Human Resources Director (Ms. Gohman), Controller (Mr. Swanson), Economic Development Coordinator (Mr. Hunt), Director of Inspections (Mr. Hoffman), Police Lieutenant (Mr. Kraayenbrink), Planning/Zoning Supervisor (Ms. McMonigal), Inspection Services Manager (Ms. Boettcher), and Recording Secretary (Ms. Hughes). Guests: Mark Ruff and Stacie Kvilvang, Ehlers &Associates 1. Future Study Session Agenda Planning— March 15 and March 22, 2010 Mr. Harmening presented the proposed special study session agenda for March 15 and the proposed study session agenda for March 22, 2010. He indicated that the March 15`h special study session will begin at 6:00 p.m to allow for a 90 minute discussion regarding public safety dispatch He stated that Council previously requested further discussion regarding women and minority business owners; this item will be on the April 12`h study session agenda. He added that Council also requested further discussion regarding instant run-off voting; this item will be on the April 26th study session agenda. 2. Tax Increment and Bond Financing Basics Mr. Harmening introduced Mark Ruff and Stacie Kvilvang from Ehlers &Associates. Mr. Ruff stated that Ehlers & Associates acts as the City's independent financial advisor and one of Ehlers's primary tasks is to create a competitive environment for the issuance of debt. He presented a comprehensive overview of tax increment, tax abatement, and bond financing as redevelopment and financing tools. He explained the difference between tax increment financing and tax abatement, and noted that the tax abatement tool has only been used once in the City. He stated that the complexities involved with tax increment and tax abatement are more about the property tax system in Minnesota and not the policy itself. Mr. Hunt stated that tax abatement requires County Board approval and historically it had not been used very much as a business development tool. Ms. Kvilvang explained tax capacity, market value taxes and fiscal disparities taxes, pointing out that the fiscal disparities tax is not followed anywhere else in the country and has been in place since the 1970's. Study Session Minutes -2- March 8, 2010 The City Council discussed fiscal disparities and the impact of this tax on the City's commercial and industrial development. Ms. Kvilvang presented a map depicting the City's TIF Districts and explained eligible uses of TIF financing, including land acquisition, demolition and remediation. She noted that ineligible uses including recreation, City buildings, and certain enhanced public improvements She stated that each redevelopment project has a development agreement, with the City or developer fronting the TIF costs; the City has typically required the developer to obtain its own financing and utilize a "pay-as-you-go" system and this is a lower risk proposition for the City. Mr. Ruff then presented an overview of the City's current debt obligations and stated the City's overall outstanding General Obligation (G.O.) debt is approximately $31 million. He added the City has been fairly conservative with its outstanding G.O. debt. He discussed the City's upcoming G.O. Housing Improvement Area Bonds and refinancing activity planned in 2010. He indicated that in 2011, the City has additional bond issues planned for the fire stations and potentially some additional tax increment bonds for the Highway 7/Wooddale Avenue project. He then discussed tax-exempt versus taxable bonds, and briefly discussed other types of bonds in which the City can participate, including private activity revenue bonds. Mr. Harmening stated that the City has over $200 million in private activity revenue bonds from Park Nicollet; the City has no obligation to repay those bonds and all monies are put into the housing rehab program. Mayor Pro Tern Sanger expressed the City Council's thanks to Mr. Ruff and Ms. Kvilvang. 3. Proposed Amendments to City Business Licensing and Environmental Health Codes Mr. Hoffman presented the staff report and the final revisions proposed to the City's business licensing and environmental health codes. He explained the major changes include modification of the business license requirements for massage therapy establishments, the addition of an individual massage therapist license, and enhancing the peddlers/solicitors licensing requirements. He stated that staff has learned that House File No. 1503 was introduced today which includes the creation of an optional statewide therapist registration program to be set up under the Board of Nursing. He indicated if the bill is passed as currently written, and the proposed ordinance is adopted, the City may need to slightly modify the Code later this year to require a city massage therapist license if they are not registered with the State. He stated that each individual working as a therapist at an establishment, including the business owners themselves, would be required to be licensed. He noted that the City's current zoning code provisions do not allow massage therapy as a home occupation; however, a massage therapist could go into a person's home to perform massage. Mr. Hoffman stated that administration of the peddlers and solicitors program will be transferred from the Inspections Department to the Police Department; this move will help facilitate the background, licensing and complaint investigation process. Study Session Minutes -3- March 8, 2010 The City Council discussed the increased number of complaints from residents regarding solicitors. Mr. Hoffman stated the proposed code revisions are intended to reduce problems through requiring a background investigation and require photo IDs to be visibly worn at all times. He stated there will be a public education component so that residents are aware of the license requirements. Mr. Hoffman discussed the re-inspection fee proposed to cover the City's costs when multiple re- inspections of licensed properties are necessary due to inaction of the licensee correcting code violations. Councilmember Mavity asked a question regarding the service fee when two re-inspections are required. She asked if the re-inspection fee would be imposed on a property when, in the course of conducting a re-inspection, additional items are found that require yet another inspection. Mr. Hoffman stated that generally, this does not happen in these types of business licenses. He stated the re-inspection fee is intended as a tool to incent the owner to fix all of the problems at the same time. He explained that if staff is required to re-inspect a property more than two times, each re-inspection of the property would result in a re-inspection fee being imposed; fees not paid at the time of inspection would be included with the license renewal Mayor Pro Tern Sanger asked if the City charges interest on delinquent accounts and suggested that this is something that should be considered by staff. Mr. Hoffman replied that right now, no interest is charged. He stated that staff could study whether charging interest or a late fee is reasonable without creating any additional burden on staff. Councilmember Mavity asked if there is any penalty associated with the City's suspension and/or revocation of a massage therapist license. Mr. Hoffman stated if there was a situation where someone was performing an illegal activity, the Police would issue a citation; otherwise, if the massage therapist was operating a legitimate business and simply failed to obtain a license, a citation would not be issued provided the person responded by making prompt application and received a license. Mayor Pro Tem Sanger expressed concern that Commercial Entertainment Establishments are only required to maintain $1 million aggregate liability insurance Mr. Hoffman stated that this category only applies to arcades, roller rinks, and movie theaters, and staff feels that $1 million is a reasonable level and the intent of this provision is to make certain that the establishment carries a minimum of$1 million in liability insurance as a public service. Mr. Hoffman stated that the first reading of the ordinance will be presented to the City Council on March 15, 2010. Study Session Minutes -4- March 8, 2010 4. School District Facility Closings Ms. McMonigal presented the staff report and maps depicting the two school sites. She stated that the Cedar Manor School site includes City-owned land to the north as well as a play area in the southern portion of the site that the City operates as public land. She stated that some of the school and city-owned land on the Cedar Manor site is not buildable due to the flood plain. She indicated that the Eliot School site is entirely surrounded by single family homes; the City has received some inquiries about redeveloping this site, including a possible senior housing campus. The City Council discussed the existing buildings on both sites and possible building improvements needed to keep and remodel them for another use. It is uncertain if it would be economically feasible to reuse the buildings. Mr. Harmening stated that he and Mr. Locke are in agreement that the next step should be a discussion with the School District about the most effective process that should be undertaken by the School District and the City to reach agreement on the future redevelopment of the properties. He added staff would suggest a process similar to that utilized by the City with the Al's Bar site wherein the City facilitated a process between the neighborhoods, the School District and other key stakeholders to determine the best possible reuse of the property. Councilmember Mavity was in agreement with this approach. Mayor Pro Tern Sanger agreed with staff's suggestion, but stated it will be important to learn the School District's intentions first before engaging other stakeholders in any discussions about future reuse of the properties. She added it will also be important for the City to inform the School District that there are certain uses that the City would like to see on one or both of the properties. Councilmember Omodt agreed with Mayor Pro Tem Sanger and stated that staff and the Council should first bracket their expectations for the properties before seeking input from the broader community. Councilmember Finkelstein concurred with Mayor Pro Tern Sanger and Councilmember Omodt. It was the consensus of the City Council that it needs to meet with the School Board on this issue, for staff to prepare recommendations for the City Council's review regarding land use and redevelopment opportunities on the Eliot School and Cedar Manor School sites, and for staff to develop a suggested process to be undertaken pending further discussion with the School Board. The City Council discussed the agenda for the April 19th meeting with the School Board. It was the consensus of the City Council to place the School District facility closings as the first priority item on the agenda for the April 19`h meeting with the School District, followed by the turf issue. Study Session Minutes -5- March 8, 2010 5. Commissioner Conflict of Interest Policy Mayor Pro Tern Sanger stated that Councilmember Mavity requested this item be moved from Written Reports for discussion. Councilmember Mavity stated that Section I (Annual Report) in the Rules and Procedures states that each board or commission shall prepare a written report which includes activities undertaken in the past year and goals for the coming year. She asked that this section be revised to state that the annual report shall include a comparison of progress made on the past year's goals It was the consensus of the City Council to revise Section I (Annual Report) to include a statement that the annual report shall include a comparison of progress made on the past year's goals. Councilmember Mavity requested clarification regarding Section L (Appointment) and Section N (Reappointment), and asked if reappointments are automatic. Mr. Harmening stated that each staff liaison works with their board or commission to determine a member's continued interest in serving. He stated that formal action is required by the City Council to appoint members and to reappoint members when terms expire. Councilmember Mavity also requested clarification regarding the housing authority and noted that the rules and procedures do not list this board's reporting procedures. She asked if this is due to the housing authority's separate status under state statute. Mr. Harmening agreed to check on reporting requirements for the housing authority. 6. Commercial Areas Market Study Update Councilmember Mavity asked that the Commercial Market Study include a request for some guidance on locally owned business, i.e., how does the City and the City Council nurture, encourage, and support locally owned businesses? She stated she felt the locally owned component was an important part of the overall market study and would like to see this factored in when McComb Group conducts their analysis. Mr. Harmening agreed to ask the McComb Group to discuss opportunities from a market perspective in these various areas in an effort to help the City understand what the barriers are to locally owned businesses, and what other communities have done to nurture locally owned businesses. 7. Communications (Verbal) Mayor Pro Tern Sanger stated that it appears that more than one meeting will be needed with the School District and encouraged staff to schedule the meeting as far in advance as possible. The meeting adjourned at 9:31 p.m. Study Session Minutes -6- March 8, 2010 Written Reports provided and documented for recording purposes only: 8. Summary of Results of City Council Workshop 9. Commercial Areas Market Study Update 10. Commissioner Conflict of Interest Policy Nancy Stroth, City Clerk Susan Sanger, ayor Pro Tem