HomeMy WebLinkAbout2011/11/14 - ADMIN - Minutes - City Council - Study Session JIfSt. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL STUDY SESSION
ST. LOUIS PARK,MINNESOTA
NOVEMBER 14, 2011
The meeting convened at 6:25 p.m.
Councilmembers present: Mayor Jeff Jacobs, Anne Mavity, Julia Ross, Susan Sanger, and Sue
Santa.
Councilmembers absent: Phil Finkelstein and Paul Omodt.
Staff present: City Manager (Mr. Harmening), Deputy City Manager/Director of Human
Resources (Ms. Deno), Controller (Mr. Swanson), Director of Community Development (Mr.
Locke), Economic Development Coordinator (Mr. Hunt), Director of Parks and Recreation (Ms.
Walsh), Communications Coordinator (Mr. Zwilling), City Assessor (Mr. Bultema), and
Recording Secretary(Ms. Hughes).
1. Future Study Session Agenda Planning—November 28,2011
Mr. Harmening presented the proposed study session agenda for November 28t.
Councilmember Mavity noted that the City's Boards and Commissions are up for reappointment
and suggested that rather than automatically reappointing the commissioners, it might be helpful
for Council to ask the sitting commissioners to submit a brief statement confirming their desire
to be reappointed.
Councilmember Sanger indicated that the commissioners are contacted by City staff to confirm
their interest in continuing to serve.
Councilmember Santa requested a recap from staff with respect to Cavalia and stated it would be
helpful to have a report on lessons learned, what worked and what could be improved in the
event that someone else comes to the City requesting a similar type of show in the future.
Mr. Harmening stated that John Basill, the CVB President, is currently working on bringing
another show to that site.
Councilmember Sanger asked when the City expects to receive an update from Mn/DOT
regarding the finalized plans for Highway 100.
Mr. Harmening advised that Mn/DOT is currently working on the rescoped designs and the City
expects to receive Mn/DOT's report after the first of the year.
Councilmember Sanger requested an update on the ongoing fiber optics study.
Mr. Harmening stated that a consultant has been retained and the study should be done in March
or April next year.
2. 2012 Budget Discussion
Mr. Harmening presented the staff report and stated that the preliminary 2012 budget maintains
current service levels and holds expenditures as flat as possible. He stated that Council adopted
a preliminary property tax levy increase of 5% over the 2010 levy, or $23,830,726 versus
Study Session Minutes -2- November 14, 2011
$22,695,928 in 2011. He noted that Council previously identified some items that it wished to
have included in the 2012 budget and these items can be supported with a 5% property tax levy
increase. He presented the first policy question for Council consideration and asked if there is
other budget information that Council would like to review.
It was the consensus of the City Council that no other budget information is needed for Council
review.
Mr. Harmening presented the second policy question for Council consideration and asked if the
Council is interested in setting aside $25,000 for a recreation study. He noted that this amount is
not currently set aside in the 2012 budget.
It was the consensus of the City Council to set aside $25,000 in the 2012 budget for a recreation
study.
Mr. Harmening presented the third policy question for Council consideration and asked if the
Council is interested in setting aside$15,000 annually for contractual tree watering services.
It was the consensus of the City Council to set aside $15,000 annually for contractual tree
watering services.
Councilmember Mavity asked if the $15,000 amount has been confirmed as an appropriate
amount and whether the tree watering will include boulevard trees or only public lands.
Ms. Deno stated that the tree watenng services will cover newly planted trees.
Mr. Harmening presented the fourth policy question for Council consideration and asked if
Council desires to allocate resources to the Employee Benefit or Housing Rehabilitation Funds.
Mr. Swanson explained that the Employee Benefits Fund is used to fund tuition reimbursement,
benefits consultants, workers' compensation expenses, COBRA processing fees, etc. He
suggested that Council consider placing$100,000 into the Employee Benefits Fund in 2012.
Councilmember Mavity indicated that her inclination was to push back a bit and for the City to
strive toward a levy that is lower than 5%. She stated that the economy is not getting any better
and some residents are not equipped to pay more.
Councilmember Sanger stated that the difference for the average homeowner between a 4.5%
levy and a 5% levy is minimal and she would rather approve a moderate increase every year and
fund what needs to be funded so that long term, the City's funds are structurally sound.
Councilmember Mavity agreed that a moderate increase is appropriate but was not sure that all
of the items included with a 5%levy were absolute necessities.
Councilmember Santa stated that for the last couple of years, the City's staff training budget has
been cut to the bone and she did not want the City to be in a position where staff cannot keep up
with their professions because they are not getting enough training. She added that one of the
benefits offered to employees is the opportunity for training and growth and should be
considered part of their compensation package.
Study Session Minutes -3- November 14, 2011
Mr. Swanson reviewed the examples of property tax levy adjustments contained in the staff
report and indicated with a 5% levy increase, a property valued at $220,000 would pay
approximately $47 more per year; with a levy increase of 4.22%, that same property would pay
approximately $41 more per year. He further explained that the City's share of the 2012 tax
increase with a 5% levy increase versus a 4.22% levy increase results in a net difference of
approximately$7 per year.
Mr. Bultema presented Council with talking points regarding property taxes which includes
information regarding the levy, changes in the Market Value Homestead Credit program, and
where to call with questions. He stated that Truth in Taxation notices will be mailed starting on
Tuesday,November 15`h.
Ms. Deno stated that the City's Truth in Taxation hearing will be held December 5`h and will
assume a 5%property tax levy. She explained that Council will then adopt its final 2012 budget
and property tax levy on December 19`h
It was the consensus of the majority of the City Council to continue with a 5.00% property tax
levy increase from 2011 as its 2012 final property tax levy to consider.
3. Hoigaard Village Remaining Project Plans and Construction Schedule
Mr. Locke presented the staff report and reviewed the developer's plans for moving forward with
the remaining two phases of the project. He noted that a technical issue exists related to the
deadlines in the last agreement and the need to change the timeline for completion of the project.
He then introduced Mr. Frank Dunbar and Mr. Steve Dunbar representing Union Land II.
Mr. Frank Dunbar presented several drawings of the Hoigaard Village project and stated that the
74-unit Harmony Vista building and the 220-unit Camerata building have a 98% occupancy rate
and there is currently a much greater demand than supply of rental housing in this market. He
indicated the average renter's age is mid-20s with 65% being single female renters. He stated
that demographic trends indicate a significant population in their late teens and early 20s and
over the next decade, this demographic will have a stronger housing need than senior housing.
He stated that ownership has decreased substantially and they currently see no financing
opportunities to build units for sale; as a result, they would like to build the Adagio and Medley
Row portions of the project into market rate apartments. He noted the project was to be built out
as condominiums, but requested that they be permitted to rent the units and when the market
turns around, they intend to sell the units as condominiums. He presented artist'srenderings of
the Medley Row and Adagio buildings and stated they propose to build the units toward the end
of the first quarter of 2012. He added that the previous agreement with the City includes a
requirement that the City can tell them when to change the rental units back to condominiums;
however, he cannot secure financing for the project with that caveat in place because he has to
pledge the other two buildings to get the financing. He requested that the City remove this
obligation and let the market dictate when the units are converted to condominiums.
Mr. Locke indicated that the City's preference has always been for owner occupied housing but
the market is not there for selling the units as condominiums. He felt it was appropriate to
remove this requirement and let the market dictate when the units are converted to
condominiums for sale.
Study Session Minutes -4- November 14, 2011
Councilmember Mavity stated as much as the City wants to push home ownership, she did not
want to see the site sitting empty.
Mayor Jacobs agreed and indicated that one mitigating factor is the proposed light rail transit
which will keep the values up in this area.
Councilmember Sanger expressed concern that the Adagio building is moving toward a
configuration of one bedroom or smaller units and while this may suit today's demographics, it
may make it harder to turn the units into condominiums when the market turns. She also
expressed concern that this will be a community with single persons and not families.
Mr. Frank Dunbar stated that they have a significant number of one bedroom and one bedroom +
den units as well as two bedroom units available in the project which will expand market
opportunities.
Mayor Jacobs asked if Council was agreeable to allowing market rate apartments in the Adagio
and Medley Row components of the project. He also asked if Council was agreeable to
removing the financing obstacle contained in the agreement as it relates to the City dictating
when the units are converted to condominiums. He asked if Council was agreeable to extending
the deadline on the project.
Councilmembers Santa, Ross, and Mavity were in agreement with allowing market rate
apartments in the Adagio and Medley Row components, as well as removing the financing
obstacle contained in the agreement with the City and extending the deadline on the project.
Councilmember Sanger stated that she supported removing the financing obstacle contained in
the agreement with the City and extending the deadline on the project, but was reserving
judgment regarding the unit mixes in the Adagio and Medley Row buildings.
4. Update on Community Recreation Facilities Study Process
Mr. Harmening presented the staff report and discussed the community recreation tour scheduled
on Wednesday, November l6`". He indicated that the two new Councilmembers will be
participating in the tour with Council, along with commissioners from the Park and Recreation
Advisory Commission, and representatives from the St. Louis Park School District. He stated
that a task force is proposed to be convened that would serve in a research and advisory capacity
to Council. He explained that the School Distnct has also convened a committee to look at the
stadium site and is familiar with the process being undertaken by the City.
Councilmember Sanger requested that the community recreation tour include background
information on what each facility cost, how the cities paid for their facility, and how long it took
them to get the planning done.
Councilmember Santa requested that the community recreation tour include information on how
much usage each facility gets over the course of a year as well as information on peak times.
Council discussed the results of the community recreation survey, Vision, and the interest in the
community for a community recreation facility.
Study Session Minutes -5- November 14, 2011
Councilmember Santa pointed out it has always been clear that the City does not currently have a
funding source for a community recreation facility.
It was the consensus of the City Council to proceed with the timelines and process proposed in
the staff report.
It was also the consensus of the City Council to reserve the study session agenda on January 23,
2012, for a presentation by Ellen O'Sullivan regarding trends in parks and recreation.
5. Communications/Meeting Check-In (Verbal)
Councilmember Santa commented that the City's recycling program encourages residents to
reduce and the changes to Hennepin County's residential recycling grant program talks about
tonnage for recycling. She urged the City to continue to educate residents about recycling.
Mr. Harmening stated that the County's program appears to use a one size fits all approach and
not all cities are the same. He added that the City's contracts with Waste Management and
Eureka expire in 2013 and Council will be discussing its refuse and recycling contracts in 2012.
Councilmember Sanger stated that the changes in the County's recycling program might provide
an opportunity to expand the City's recycling to businesses and this could help accomplish the
County's goals.
Mr. Harmening noted that Council may have a closed door executive session on November 21st
to discuss litigation related to the City's crime free housing ordinance and the EAW appeal.
The meeting adjourned at 7:44 p.m.
Written Reports provided and documented for recording purposes only:
6. Update on Amended and Restated Redevelopment Contract with Duke Realty— The
West End Project
7. Hennepin County Residential Recycling Grant Program Changes
8. Adopting Plan by Neighborhood Section o , prehensive Plan
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Nancy Stroth, City Clerk Jeff . • ., ayor