HomeMy WebLinkAbout2016/01/11 - ADMIN - Minutes - City Council - Study Sessionfff St. Louis Park
MINNESOTA
The meeting convened at 6:30 p.m.
OFFICIAL MINUTES
CITY COUNCIL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
JANUARY 11, 2016
Councilmembers present: Mayor Jake Spano. Gregg Lindberg, Tim Brausen, Steve Hallfin,
Anne Mavity, Thom Miller, and Susan Sanger.
Councilmembers absent: None.
Staff present: City Manager (Mr. Harmening), Economic Development Coordinator (Mr. Hunt),
Director of Community Development (Mr. Locke), City Clerk (Ms. Kennedy), Communications
and Marketing Manager (Ms. Larson), and Recording Secretary (Ms. Batra).
Guest: Becky Bakken (President of Discover St. Louis Park)
1. Future Study Session Agenda Planning — January 19 & January 25, 2016
Mr. Harmening reviewed the proposed Study Session agendas for January 191h and January 25th
Councilmember Mavity stated in her opinion the Bring Your Own Bag (BYOB) ordinance and
the off -sale liquor discussion were left without final resolution in 2015. She suggested the new
Council review both topics and open them up for discussion. Councilmember Sanger agreed that
the Council should further discuss the BYOB ordinance; however, in her opinion the off -sale
liquor discussion had reached a resolution.
Mayor Spano agreed with Councilmember Mavity's proposal regarding the off -sale liquor
discussion. He stated that he recalls there was a split on the issue amongst the Council and there
were not enough votes to move forward in a specific direction, so the matter was dropped.
Councilmember Miller asked if staff provided enough information, and the Council agreed that
enough information had been provided. Mayor Spano, Councilmember Lindberg,
Councilmember Mavity, and Councilmember Miller agreed to revisit the off -sale liquor
discussion. Councilmember Mavity suggested the Council focus the discussion around
establishing a size limit for liquor stores.
Councilmember Mavity explained that there was a split vote on the BYOB ordinance, so the
proposed ordinance was dropped. Councilmember Brausen stated there was a lot of discussion
and staff time spent without a resolution. Councilmember Mavity stated she wants to pick up the
BYOB ordinance at the point where it was last discussed, with a new Council, to make a clear
statement. Councilmember Miller stated he is in favor of a new discussion. Councilmember
Lindberg explained that he is not supportive of a fee, but he wasn't in a position to vote as the
issue was not `ripe.' Councilmember Brausen stated that he is in favor of opening the issue up
for discussion. Councilmember Hallfin stated, in his opinion, the decision of no action was final
so he would prefer not to reopen the issue. Councilmember Sanger stated that she is willing to
discuss again because, in her opinion, a decision was not reached.
The Council discussed the need to involve the Environment and Sustainability Commission in
future discussions on the BYOB ordinance. Councilmember Mavity reminded the Council of the
roundtable that was conducted with three Councilmembers and a few members of the
Commission to collectively discuss the ordinance.
Study Session Minutes -2- January 11, 2016
2. Annual Update — Discover St. Louis Park
Ms. Bakken presented the staff report and annual update on Discover St. Louis Park (Discover
SLP). She explained that Doug McIntrye, with Foley & Mansfield, is the chairman of the Board
and is serving his second year in 2016. She discussed the makeup of the Board of Directors of
Discover SLP, which, according to the association's bylaws, must be a mixture of hoteliers and
City officials. Councilmember Mavity asked for clarification on the makeup of the Board and
Ms. Bakken stated that there must be four hotel members on the Board.
Ms. Bakken explained the importance of tourism to the City. She discussed the economic impact
tourism has on the State's economy, the 3% hospitality tax, and how tourists spend money when
travelling. She explained how the taxes are allocated amongst programs. She noted when
visitors come to town, all areas of the City benefit and it elevates the community as a whole.
Ms. Bakken reviewed the different business segments in their marketing division and how the
organization advertises. She highlighted several new marketing projects aimed to bring in
revenue for the organization.
Ms. Bakken discussed the unique visits to the association's website and where the majority of the
traffic is coming from. She explained that this industry responds very well to social media. The
top five pages visited on their website are Restaurants, Things to Do, Business Listings,
Shopping and Hotels. Most of the visitors to their website are from Minneapolis and out of state,
primarily fi•om Chicago. The association plans to concentrate on increasing traffic from out of
state visitors for 2016.
Ms. Bakken presented a summary of the City's lodging tax revenue, which shows that it has
grown every year since 2012. She stated a 3% growth was projected over the next year, but
noted it will eventually level off. She added there are some potential new projects and
opportunities in the works that will increase the revenue generated over the next few years.
Ms. Bakken outlined the organization's key initiatives for 2016, including utilizing more
volunteers, launching a revised website, a statewide travel campaign, Ryder cup preparation
(international event coming to the region), the 3`a DSLP Adam Turman Visitor Guide
Illustration, and a possible partnership with the City of Golden Valley.
Councilmember Miller asked about hotel capacity and if the City is reaching their limit.
Ms. Bakken replied there is a little room for growth, but the City will level out eventually. She
explained how the revenue is calculated using the industry standard.
Mayor Spano asked if the 3% tax is average when compared with other cities. Ms. Bakken
confirmed that 3% is the highest that can be collected.
Councilmember Brausen stated that the organization does great work and asked what it takes to
get listed as a business organization with the association. Ms. Bakken stated that the association
is working to promote businesses that increase tourism.
Ms. Bakken explained that Golden Valley has sought out a partnership with Discover SLP,
because Golden Valley likes what the organization has done for the City of St. Louis Park. She
reviewed the history of the discussions between Discover SLP and Golden Valley. She
explained if the same 3% tax was implemented, the City of Golden Valley would generate
Study Session Minutes -3- January 11, 2016
approximately $147,000. She stressed that the organization wanted to hear Council's opinion on
the subject because the Board recognizes the importance of maintaining the identity of Discover
SLP.
Mr. Harmening stated that the City is already maintaining the assets, therefore, in his opinion,
the City should be getting income. He noted this could also open up dialogue with other
surrounding cities. Mayor Spano asked if the partnership would change the composition of the
Board. Ms. Bakken explained another three seats would be added to include a representative
from a hotel, a city official and one at -large member.
Councilmember Mavity asked what Golden Valley wants out of the partnership and asked about
a ten-year vision. Ms. Bakken stated they are looking for economic development and looking to
promote their city to have a greater presence.
Councilmember Sanger stated that she sees pros and cons to the partnership. She asked if there
is a mechanism for assessing whether the benefits received are proportionate to what is
contributed. Mr. McIntyre stated that the Board has looked at those questions for a long time.
He explained the City is already marketing and as long as the association is not rebranding, it
could be a win/win situation.
Councilmember Miller asked about the opposing points of view. Mr. McIntyre explained that
the first goal is to not lose the identity that has been created and the second goal is to figure out
the division of expenses and resources between St. Louis Park and Golden Valley. Mr. McIntyre
stated it is $150,000 of new revenue coming in, which creates more opportunity for the City.
Mr. Harmening stated his main concern was losing the Discover SLP identity and it was apparent
that the Board had similar concerns and was committed to not letting that happen. He stated that,
in his opinion, the proposition could be a win/win for both cities.
Councilmember Lindberg stated that this proposal makes him nervous, although he defers to
staff's judgment. He explained that he is cautious and would be curious to know what Golden
Valley's thought process is about this partnership.
Councilmember Hallfrn stated he is cautiously optimistic about partnering with another city, and
he defers to the Board, but hopes that Discover SLP would be able to opt out of the relationship
if it does not work.
Councilmember Mavity stated her support of moving the recommendation forward with the
cautions that have been discussed. Mayor Spano stated his agreement with the proposed
partnership because the assets in each city are very different and it would take a long time for
Golden Valley to acquire the infrastructure for equity to become an issue.
It was the consensus of the City Council to encourage Discover St. Louis Park to move forward
in exploring the partnership with Golden Valley.
3. Boards & Commissions Appointments
Ms. Kennedy presented the staff report, which is the continuation of a discussion from 2015
regarding changes to the Rules and Procedures for Boards and Commissions.
Study Session Minutes -4- January 11, 2016
Councilmember Mavity stated in response to the two questions posed in the staff report, she
agrees with the proposed revisions, but is not ready to move forward with the pending
appointments and reappointments at this point. She referenced the new online application
system and questioned why there would be two separate applications.
Ms. Kennedy explained there would be an application for new candidates and an application for
or current members seeking reappointment. Councilmember Mavity stated she did not think that
a dual approach is necessary and wants the same information for each applicant presented to the
Council.
Councilmember Mavity asked why the term expiration date in May was proposed by staff
Ms. Kennedy explained that staff had originally proposed an expiration date at the end of
December, however there were concerns raised about monopolizing an entire study session for
candidate interviews at that time of the year as Council will also be in the midst of budget
discussions and other end of the year preparations.
Councilmember Mavity discussed the proposed interview process and stated she is not in favor
of interviewing all of the candidates. She suggested the Council use the ranking process that was
previously created to determine which candidates would be interviewed. Councilmember
Mavity suggested the Rules and Procedures could state that applicants may be asked to interview
based on the discretion of the Council. Councilmember Lindberg agreed that not all applicants
needed to be interviewed and stated that the process needs to be simple, transparent, and applied
equally for all applicants.
Councilmember Hallfrn stated he does not think the whole system needs to be changed and re -
interviewing people seeking reappointment is not a good use of time.
Councilmember Sanger stated she doesn't want to re -interview incumbents unless there is a
specific reason or extenuating circumstance. She stated that she doesn't mind interviewing
applicants for a vacancy.
Councilmember Miller asked if the impetus for the changes was to make the process easier for
staff. Ms. Kennedy stated staff was asked by the Council to make recommendations for changes
to the overall process. She noted that one of the benefits of the proposed changes was that the
process would be more streamlined and efficient for staff to manage.
Councilmember Miller agreed with Councilmember Mavity regarding interviews and delaying
the next round of appointments and reappointments until May. He suggested using a standard
HR practice to review the applications and then interview the top candidates.
Councilmember Mavity suggested that the Council and staff be more efficient when conducting
the interview process. Councilmember Lindberg stated he would support the changes discussed
as long the process is transparent and can be easily explained.
Mayor Spano stated he would like to open up the Boards and Commissions appointments, but
does not want to interview 25 applicants in a night. I -Ie added that the current process is not
efficient and makes it difficult for the Council to evaluate candidates appropriately. He agreed
with implementing a standard HR practice to evaluate candidates.
Study Session Minutes -5- January 11, 2016
4. Proposed TIF District - 9920 & 9808 Wayzata Blvd (Former Santorini Property)e
Mr. Hunt presented the staff report relative to establishing a new TIF District on the former
Santorini property. In 2012 the Santorini restaurant building was declared a health hazard, and
the City required the building's repair or removal. A predevelopment agreement was entered
into with the property owner to demolish the building in the fall of 2012. In early 2013, the
Santorini family had the building taken down. Due to statutory limitations, the City has three
years after building demolition to create a new TIF District on the property, and that time period
will soon expire. Staff asked if the EDA would be interested in creating a redevelopment TIF
District, which would preserve the EDA's ability to utilize tax increment to facilitate an
appropriate redevelopment on the property.
Councilmember Sanger stated her agreement, but inquired on the vision for the site and whether
the City plans to seek out a redeveloper for the site. Mr. Hunt explained that the property is
guided and zoned Commercial, but the City would like to see something intense with high
property value that would support other uses in the area. Mr. Locke stated the City will look for
a developer. Councilmember Sanger stated that it would be a great spot for a nice piece of visual
architecture.
In response to Councilmember Miller's question about the $25,000, Mr. Hunt explained that is
the cost to formally establish the TIF District. He further explained that the EDA normally
passes that fee on to the developer, which the EDA could still do when the right project comes
along.
Councilmember Brausen stated his support, because the cost is a small expense to leave the
City's options open for redevelopment of that site. Mr. Hunt explained the next steps to move
the proposal forward and explained that if the EDA acts now, there is still time to get the request
in before the deadline.
5. Review of 2016 Legislative Issues and Priorities
Mr. Harmening presented the staff report and explained the Council has been doing this process
for quite some time. Questions for the Council include (1) is the Council okay with issues
included in draft document, any revisions or additions; and (2) is the Council comfortable with
using legislative lobbying assistance for 2016. Mr. Harmening explained there are a number of
issues the Council have seen in past years, which encourages legislatures to support the City's
capital bonding requests. Mr. Harmening reviewed and discussed new items on the agenda for
2016.
Councilmember Sanger stated she is comfortable with what's written but a few things are left
out: (1) a statement of support to improve the transportation funding, such as a gas tax increase,
in general for the state; (2) specific funding for safety improvements for at grade railroad
crossings; (3) Minnetonka Boulevard is missing that the scope of the study needs to be broader
than what's outlined to include landscaping and redevelopment; and (4) add a statement that
addresses the wear/tear maintenance needed due to redevelopment in the section that contains the
statement for modification of fiscal disparities.
Councilmember Hallfin stated he likes what's in the draft report, including the items
Councilmember Sanger mentioned.
Study Session Minutes -6- January 11, 2016
Councilmember Brausen agreed with Councilmember Sanger regarding the transportation tax
and stated the only thing missing is community solar gardens and accelerating the development
of and pushing Xcel Energy for that. Councilmember Lindberg stated he has no changes to
suggest.
Councilmember Mavity stated that the County needs to take the lead on a few issues, but the City
needs to verify that it's going to be addressed by the County. Mr. Harmening responded that the
City will be pointing the necessary agenda items to the County to address. Councilmember
Mavity discussed the issue regarding Metro Cities' policy about appointment to the Met Council.
Councilmember Mavity provided background on the Metro Cities' policy position on Met
Council appointments and reaffirmed that the City supports that approach. Mr. Harmening
stated he will add this issue to the agenda.
Mayor Spano stated the draft agenda looks good. He explained that the session should last
approximately six weeks and if anything gets addressed, it will be transportation and possibly
bonding. Because of this observation, he stated that there are 19 items but probably only one
will get addressed. Mayor Spano suggested the Council step forward and highlight the top
priority and prepare a prioritized list for ease of reference for our legislators to address. Mr.
Harmening stated he will provide a draft for the Council to further discuss and edit.
Councilmember Miller suggested that the Council take away the whistle quiet zone, because
there is a lot controversy surrounding the issue. Councilmember Mavity stated that there is not
enough Staff time or resources to work this up currently. Councilmember Miller stated his intent
was to raise the question to the Council not to pull off or change.
It was the consensus of the City Council to discuss and edit the draft prepared by Mr. Harmening
and discuss again at the next study session.
Communications/Meeting Check -In (Verbal)
Mr. Harmening stated that Starbucks as a corporation is looking to provide beer and wine at their
establishments so there's going to be a beer/wine license application in the near future.
Mr. Harmening explained that he's almost finished with his portion of his evaluation so Council
can expect the evaluation soon.
Mayor Spano asked Mr. Harmening for clarification on the Meadowbrook Manor exchange. Mr.
Harmening stated that he thinks that improved management of the housing will be increased and
demographics will be discussed.
Councilmember Mavity stated, for clarification, that on the Wooddale report, there will be
recommendations on sightlines on the bridge.
Councilmember Sanger stated that her big concern is with the median on Wooddale. She
explained that all of the traffic coming down through there will have nowhere to go and would
like to discuss what can be done to minimize traffic cutting through Sorenson neighborhood.
The meeting adjourned at 9:24 p.m
Written Reports provided and documented for recording purposes only
Study Session Minutes -7- January 11, 2016
6. SWLRT Update
7. November 2015 Monthly Financial Report
8. Wooddale/Highway 7 Interchange Update
9. Memorandum of Understanding with Minnehaha Creek Watershed District for Erosion
Control Permitting Authority
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Melissa Kennedy, City Clerk