HomeMy WebLinkAbout2013/02/25 - ADMIN - Minutes - City Council - Study Session /11 St. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
FEBRUARY 25, 2013
The meeting convened at 6:30 p.m.
Councilmembers present: Mayor Jeff Jacobs, Steve Hallfin, Anne Mavity, Julia Ross, Susan
Sanger, Sue Santa, and Jake Spano.
Councilmembers absent: None.
Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), Communications
Coordinator (Mr. Zwilling), Director of Inspections (Mr. Hoffinan), Chief Information Officer
(Mr. Pires), Inspection Services Manager (Ms. Boettcher), Director of Community Development
(Mr. Locke), Economic Development Coordinator (Mr. Hunt), Engineering Project Manager
(Mr. Olson), City Engineer (Mr. Brink), Organizational Development Coordinator (Ms.
Gothberg), and Recording Secretary(Ms. Hughes).
Guests: Dan Hunt (Hunt Associates), Kevin Dummer and Cindy Nagel (Krech, O'Brien,
Mueller and Associates).
1. Future Study Session Agenda Planning—March 4 & March 11,2013
Mr. Harmening presented the proposed special study session agenda for March 4`h and the
proposed study session agenda for March 11th
2. Hunt Associates' Application for Tax Increment Financing (TIF) Assistance in
Connection with the Redevelopment of Former Eliot School Property
Mr. Locke presented the staff report and Hunt Associates' application for TIF assistance. He
advised that the Planning Commission recently recommended approval of the rezoning and other
zoning related items necessary for the development proposal. He stated that Ehlers worked with
City staff to determine a reasonable amount of TIF assistance for the project and $1.1 million in
tax increment financing is agreeable to the developer. He indicated next steps would include
moving forward with preparation of a Redevelopment Agreement and actions necessary to
establish a TIF district for the project.
Councilmember Mavity requested further information regarding the rationale for requesting
financial assistance, specifically related to neighborhood open space. She stated she wanted to
make sure there was enough justification for this amount of TIF financing and indicated she was
uncertain about the justification related to neighborhood open space.
Mr. Hunt advised that the developer's request qualifies for TIF assistance and the items listed in
the staff report are intended to reflect some of the extraordinary costs that would not be found in
a typical development.
Councilmember Mavity expressed support for TIF assistance for this project and stated she was
in favor of moving forward with the request. She felt it would be helpful at some point for
Council to obtain feedback on how this process worked for the neighborhood and the developer
especially as it relates to the design guideline process.
Study Session Minutes -2- February 25, 2013
Councilmember Spano requested further information regarding the grading system used by the
City and the final grade of"B" given to this project that resulted in a recommendation for $1.1
million in TIF assistance. He asked if similar proportions would be used for other projects
requesting TIF assistance.
Mr. Locke explained that a final grade of "B" reflects a good level of conformance with the
City's policy for providing TIF assistance but does not necessarily correlate to the amount of TIF
assistance being provided. He stated the City first reviews eligible expenses to determine how
much TIF assistance could be appropriated, and then the analysis done by Ehlers is key to
determining whether the estimated expenses are realistic and whether the assistance is truly
needed for the project to be built. The question becomes, does the project perform well enough
from an economic perspective that someone would invest their money in the project? In this
case, the project does not make economic sense unless there is some level of TIF assistance.
Councilmember Hallfin noted that the TIF financing will be paid over 6.5 years rather than in ten
or twenty years.
Councilmember Sanger stated she would not be supporting the request for TIF assistance and
indicated she had a number of concerns about TIF eligibility. She acknowledged that asbestos
abatement should be a TIF expense but did not accept pedestrian circulation or neighborhood
amenity as an extraordinary expense justifying TIF assistance. She indicated her recollection
was that the School District discounted the sale pnce to cover the costs associated with
hazardous substance abatement. She stated she was disappointed in the site plan's elimination of
one of the single-family houses adding that she agreed with moving the child's play lot away
from Cedar Lake Road. She felt the developer could have shrunk the footprint of one of the
apartment buildings thereby having fewer units resulting in compliance with the density
requirements.
Councilmember Santa expressed support for the request for TIF assistance.
Councilmember Ross expressed support for the request for TIF assistance. She felt it was clear
from the staff report that the sale price of the parcel was not inflated. She indicated that traffic in
the area will continue to be an issue with or without the project and is more of a City issue. She
advised that she requested that the single-family house be removed in order to accommodate the
tot lot on the north side of the building, adding that the neighbors wanted it moved off the south
end and the developer agreed to move it. She asked if there was any way to ensure that the
developer retains ownership of the property at least until the TIF District is satisfied.
Mr. Locke stated that Hunt Associates intends to retain ownership and added that the
Redevelopment Agreement will contain a requirement that the City must approve any transfer of
the property while this agreement is in place.
It was the consensus of the majority of the City Council to preliminarily support Hunt
Associates' proposed Eliot Park project and to consider entering into a redevelopment contract
for the provision of$1.1 million in tax increment financing assistance to facilitate the project.
3. City Hall Renovation Update Project No. 2009-1600
Mr. Hoffman presented the staff report and introduced Kevin Dummer and Cindy Nagel of
Krech, O'Brien, Mueller and Associates.
Study Session Minutes -3- February 25, 2013
Ms Nagel presented several renderings of the remodeling project and stated the main entrance
canopy has been enlarged and covers the open space for a bench area and bike area. She stated
the community room is slightly larger and includes the same amenities as the current Council
Chambers with video equipment integrated into base cabinets. She advised that vanity areas
have been added in the shower rooms and the cabinetry in the break room has been reworked
because of equipment requirements. She stated the layout of the IR offices has been revised to
include lower panels instead of the DIRTT panels extending to the ceiling resulting in cost
savings and greater flexibility for future layout.
Mr. Dummer presented several rendenngs of the stairwell improvements and stated the stairwell
will be visible from the public lobby and will include glass panels and sound absorbent panels.
Councilmember Santa commented that this would be a perfect place for some public art.
Councilmember Mavity requested information about the types of green materials used in the
remodeling.
Ms. Nagel explained that the carpet includes some recycled content, the wood is natural cherry,
the paneling in the stairwell is recycled fiber material from wood, and the vinyl wall covering
has some recycled content, adding they will be using low VOC adhesives and paint. She advised
that the large finished areas consist of a neutral palette with colors used sparingly and which can
be easily changed in the future.
Mr. Hoffman indicated that most issues with products off-gasing occur in the first month after
materials are installed and the City will be able to bring in a lot of fresh air into the building
before occupying the space. He then presented an update on project costs and stated the plug-in
for the car charger delivery room modifications, and the AV equipment for the community room
are being specified as bid alternatives which can be included or purchased separately at the
conclusion of the project. He stated the total project is estimated at $2.29 million and funding
has been allocated from the Capital Replacement Fund for the entire project.
Councilmember Sanger asked if the temporary entrance to City Hall would be ADA compliant.
Mr. Hoffman replied that the second floor entrance on the east side of the building is now ADA
compliant with a ramp and sidewalk on the north side leading into the second floor lobby. He
added there will be handicapped parking spaces identified in the parking lot on the east side and
all visitors will use that lot during construction.
Councilmember Sanger stated it was her understanding that cars need to be plugged in for eight
hours to recharge which means this wquld not be useful for someone coming as a visitor.
Councilmember Mavity asked staff to research this further.
Mr. Pires indicated that the City has been working to identify additional services that could be
offered at the front desk, e.g., paying utility bills, issuing dog tags, etc., with the idea of
maximizing the services available at the front desk for the City's customers.
It was the consensus of the City Council to proceed with the City Hall renovation project.
Study Session Minutes -4- February 25, 2013
4. Project Update—Highway 7/Louisiana Avenue Interchange Project
Mr. Olson presented the staff report and a plan view of the billboard relocation. He advised the
billboard on the southwest quadrant would move to the northwest corner of the remnant parcel
and would remain at the same elevation and added this also opens up the parcel for future
development. He stated the billboard on the northeast quadrant will be moved to the southwest
corner of the remnant parcel and will have similar visibility. He indicated the billboards are
currently located on Clear Channel property and with the new interchange, the City has acquired
a portion of Clear Channel's property beneath the billboards. The billboards will be relocated to
the proposed sites on the remnant parcels and will not remain on City property.
Councilmember Mavity requested information about the orientation of the billboard for drivers
coming east along the frontage road and asked if the billboard would be oriented toward the
highway only. She expressed some concern about the billboard being an eyesore to residents in
the area.
Mr. Olson explained the billboard will be perpendicular to the highway and will be visible from
the frontage road but will not be visible to residents in the area.
Councilmember Santa requested information about the planned upgrade of the billboards
referenced in the staff report.
Mr. Olson advised the billboards are not going to be electronic but will consist of newer, state of
the art matenal that will be easier to operate and change. He added the City's appraisers are
determining a fair value for the billboards and the City will make a counter offer based on that
appraisal. He also explained the City's rationale for determining the cost of removing the
-billboards entirely.
Mayor Jacobs requested that the City make sure the lighting on the billboards does not shine into
the apartments across the street.
Councilmember Sanger requested an update on the remaining right-of-way acquisitions.
Mr. Olson stated the City has settled with one parcel and is close to settling with Sam's Club.
He indicated the City is currently in negotiations with the southwest corner of Lake Street and
Louisiana and a counter offer has been made. He advised that no negotiations have taken place
with Louisiana Oaks Apartments and the property owners want to go through the condemnation
process. He stated the owners for the Oak Hill medical office building on the northeast corner of
Walker and Louisiana are getting their own appraisal and are continuing negotiations to settle
with the City.
Mr. Harmening advised that the land acquisition easements should fall at or lower than budget.
Councilmember Spano requested an update on the business area outreach.
Mr. Olson advised that the City discussed the communications plan with the businesses at the
February 196 meeting and the City offered some advertisements to be used during construction.
He added the businesses have been appreciative of the City's assistance.
Study Session•Minutes -5- February 25, 2013
Mr. Harmening indicated the City is doing more with this project than any other project in the
past in terms of underwnting costs for the business community to minimize impact to businesses.
He stated the City has been focusing on marketing efforts for the businesses rather than
providing direct payment to the businesses.
Councilmember Ross reiterated her concern about the businesses impacted by the closing of the
Lake Street exit and urged the City to remain aware that issues could arise with this closure.
Mr. Olson then presented an update on project costs and stated the most recent cost estimate is
$31 million. He explained that increased costs include the MCES sewer interceptor work, noting
that the City will get reimbursed for that expense. He stated that the staging and traffic
management required by Mn/DOT has increased but the City could still see some savings based
on contractor efficiency; in addition, the power lines have increased two-fold because the initial
estimate was based on directional boring but the City cannot find the locations for them within
the desired locations so they will need to be put in the street. He indicated the increased staging
and traffic management costs are the result of wider lanes, soil corrections, and maintaining all
turning movements at the intersection during the first year of construction.
Councilmember Santa urged the City to make sure the estimates are not too low for any soil
corrections given the soils in this location.
Mr. Olson stated the City's consultant has been reviewing the numbers carefully and if the City
encounters any extra materials in the soil, the cost for soil correction will be established at the
beginning of the project.
It was the consensus of the City Council to agree with the proposed sites for the Clear Channel
billboard relocations.
5. City Council Workshop Follow-Up
Mr. Harmening presented the staff report and summary of the annual City Council workshop.
Ms. Gothberg indicated the unwritten rules include the addition of three bulleted items that state
"if all of council receives an email, typically it will be the ward councilmember that will handle
the reply (unless it is forwarded to the City Manager to respond)" and "if at all possible, if
council gets email, they will try to work through Tom so the citizen/customer doesn't have to go
back and forth." She then recited the final unwritten rule related to council clarifying
communications so that everyone understands the bottom line of what is agreed.
Mr. Harmening discussed the Saturday morning discussion regarding organizational culture and
value proposition summary prepared by Craig Rapp following the workshop.
Councilmember Santa stated the City prides itself on customer intimacy and product/service
leadership. She stated the community has a great deal of pride in that and the community looks
to the City Council for that leadership which stems from the belief that St. Louis Park is an
innovator. She felt it was a given that customer intimacy and operational excellence would
happen and it was a given that the City will not be the cheapest,but there will be a"wow" factor.
Study Session Minutes -6- February 25, 2013
Mr. Harmening presented the strengths, weaknesses, opportunities and threats (SWOT) analysis
prepared by Mr. Rapp and also presented a draft flow chart of key outcome indicators and
strategic initiatives based on the four Vision strategic direction statements.
Mayor Jacobs stated that he liked the format of the draft flow chart and stated that Council needs
measurable outcomes to determine if the City is heading in the right direction.
Councilmember Ross agreed with the format of the flow chart and stated Council should also
have a discussion about its relationship with the School District and the Council's role on CEAC.
Councilmember Spano agreed with the format of the flow chart and felt the document should be
detailed enough so the City can see if it is making progress toward its goals every year. He
added he felt the flow chart could be more specific on some of the goals, e.g., the City's support
of the arts will include an artistic installation at every LRT station.
Councilmember Mavity indicated that goals and outcomes should be very specific and
measurable.
Councilmember Sanger agreed that Council should have a further discussion regarding the flow
chart and requested that Council have a frank discussion about whether the City can realistically
accomplish all its goals. She also requested that Council be given an opportunity to review the
comments that were submitted by other Councilmembers in preparation for the workshop.
Councilmember Ross stated she would like to discuss the most pressing short-term issues as well
as the City's five to ten year goals. She indicated there were some definite things the City has to
do in the short term and stated she would like to see a process similar to the pavement
management approach used by the City.
Councilmember Mavity requested that the unwritten rules include a statement that there should
be no side conversations when speakers are presenting to Council.
Ms. Gothberg agreed to add this statement to the unwritten rules.
Communications/Meeting Check-In (Verbal)
Councilmember Spano requested an update on the timing of the freight rail reroute decision.
Mr. Harmening advised that issue resolution teams have been meeting on a weekly basis and at
the last meeting TC&W indicated that the corridor in its current alignment would not work from
a safety perspective. He agreed to provide updates to Council regarding the reroute decision.
Council discussed possible options for the freight rail reroute and timing of the decision.
The meeting adjourned at 9:13 p.m.
Written Reports provided and documented for recording purposes only:
6. Highway 100 Project Update
7. SW LRT Update
8. Background Checks Ordinance Amendment
Study Session Minutes -7- February 25 2013
9. ' January,2013 Monthly Financial,Report
10. Extension of Xcel and CPE Franchise Ordinances
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Nancy Stroth• , City Clerk Je'•Ja •b , Ma,or
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