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HomeMy WebLinkAbout2017/04/03 - ADMIN - Minutes - City Council - Study Session11ISt. Loui s Park UNOFFICIAL MINUTES TESM I N N E S O T A CITY COUNCIL SPECIAL STUDY SESSION ST. LOUIS PARK, MINNESOTA APRIL 3, 2017 The meeting convened at 6:00 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Gregg Lindberg, Anne Mavity, Thom Miller, and Susan Sanger. Staff present: City Manager (Mr. Harmening); Director of Inspections (Mr. Hoffman); Economic Development Coordinator (Mr. Hunt); Chief Financial Officer (Mr. Simon); Director of Community Development (Mr. Locke); and Recording Secretary (Ms. Pappas). Guest: Cindy Nagel, KOMA; Stacie Kvilvang and James Lenhoff, Ehlers 1. Council Chambers Remodel Update Mr. Hoffman presented the report with Ms. Nagel. Ms. Nagel showed the most recent concept drawings of the Council Chambers remodel. On November 28, 2016, council was presented with the first round of drawings and a cost analysis for remodeling options of council chambers. Direction was provided to staff at that time on plans for re -orientation of the room layout; installation of large exterior windows; addition of a glass wall adjoining the lobby; monitors and media elements; and other design criteria. Ms. Nagel pointed out four large monitors on the east side of the room, which would form a large video wall for the audience to view. Additionally, she noted there would be another monitor on the southwest corner of the room, above the council dais area. She also pointed out the east wall; the single exit door; the storage room; and the podium at front, which would also have a monitor attached. The podium would be mobile and able to face either the audience or the council. Ms. Nagel noted this would provide flexibility when presenting. Councilmember Brausen asked if there would be an overhead document camera included. Mr. Hoffman stated that has not been determined yet, and most presentations would be shown through the projector and monitors. Councilmember Sanger stated she thought there would be one small monitor in front of each council chair, asking why that plan had changed. Mr. Hoffman stated that from previous discussions, it was understood that the monitors would block the council from the audience, so the podium monitor was created as an alternative. Councilmember Mavity stated the height of the monitor on the podium is not ideal, asking if the dais might be raised higher; however, adding this might feel like a block between the council and audience. Mr. Harmening stated the goal is to keep the council at the floor height as it exists today, and to keep the dais structure light, and not heavy looking nor intimidating. Mr. Hoffman added they did discuss putting a monitor on the ceiling; however, felt it was too low and would be difficult to look up during a presentation. He stated staff felt the council would be bringing in their own laptops or iPads to use, as well, and there was concern that monitors on the dais would cause cluttering. Special Study Session Minutes -2- April 3, 2017 Mayor Spano asked if there was a way to have the microphones rise out of the desktop, so as to create more space on the dais. Ms. Nagel stated she would research that. Councilmember Sanger asked about the distance from the dais to the back of the room, asking if it would be difficult for people in the back to see the monitors, and another one halfway down would be needed. Mr. Hoffman stated the video wall is extremely large, and most people could turn their head and view with no obstructed view. Councilmember Brausen asked if chairs will be on wheels so audience members can pivot easily. Mr. Hoffman stated there will be new chairs but typically there are no wheels on them, as they would be difficult to keep in place. Councilmember Lindberg asked about the raised portion of the staff desk, noting it looks too close to the dais in that position. Mr. Hoffman stated it is moveable and so can be moved, depending on what kind of meeting is taking place. Mr. Hoffman added that the new design creates more floor space and allows for 100 seats in the chamber audience. Ms. Nagle pointed out the room finishes and carpet tiles. Mr. Hoffman noted the carpet company is environmentally -friendly and will take out the worn tiles and recycle them. Ms. Nagel pointed out the elegant finishes of wood, some green or neutral colors, a white ceiling and some soffits. She suggested the white based dais for a lighter feel and less distraction as the council is filmed, noting the LED lighting will give the dais a glow. She added the logo will be similar to the one on 3`d floor and would be added to the wall behind the council. Councilmember Hallfrn stated he would like both the St. Louis Park name and logo on the wall behind the dais, along with acoustical wood panels. He added he does not like the white stone on the back wall. Councilmember Miller asked if the perforated wood is costly. Mr. Hoffman stated it is somewhat, but is needed for acoustics. Mayor Spann added he would also like to see the logo on the wall behind the council but offset to one side or the other, adding he would also appreciate some asymmetrical shapes and creative designs for accent. Mayor Spano added that when he visited the University Of Kansas School Of Architecture, they had a fully green back wall, which he liked. He would like the designers to consider this, also. Councilmember Sanger asked about the glass doors as a security measure. She noted that the report also mentions a feature where the glass turns opaque and asked if this would be needed and how costly it would be. Mr. Hoffinan stated it can be clear glass, but when the room is used for training, the opaque feature could be implemented to give privacy in the chambers from the lobby. Mayor Spano asked Mr. Hoffman to explain the security measures to the council. Mr. Hoffman stated the only public entrance into Council Chambers will be through the double glass doors in the lobby. There will also be the back exit door with no window, which can be used for access into the room using a fob. There will be panic buttons in the dais for the council, and a live security feed will show at the Police Department. The plan is for couneilmembers to duck and cover behind the dais if there is a need to get out of harm's way. Special Study Session Minutes -3- April 3, 2017 Mayor Spano stated it would be a mistake if there is not a safe room or way for the council members to escape the room. When speaking with several other local mayors, he received recommendations to have a police officer in the chambers for all council meetings. Mr. Harmening agreed that some councils have a uniformed or plain clothes police officer at each meeting. He added the council should remember this is being built for councilmembers in the future, also, so it is good to discuss this topic. Mayor Spano added that the security measures will be worth the cost. Mr. Hoffman stated that the creation of a safe room with a ballistic door and concrete wall, which could also be used as a storm shelter, would cost approximately $30-40,000. Councilmember Mavity asked if a safe room is actually effective and if it has worked for any other councils before. Councilmember Lindberg stated he now believes staff should look further into this option. Councilmember Miller stated he would prefer to have the police officer in the room, for the protection of the council, but also for all the other people in the room, and to make sure the public is aware of this arrangement. He added this might be a deterrent to anyone with an idea of coming to do harm. Mayor Spano agreed. Councilmember Mavity asked about the 6 inches on the raised dais, wanting to be sure there is good visibility from the audience to the council. She also asked if that is what is in place currently. Ms. Nagel said yes. Mayor Spano added that he again would like to be certain the step up from the floor to the dais is clearly a different color, in order to assist visually impaired people. Ms. Nagel stated yes, this, will be a clearly different color, with cherry wood all the way around the step Mr. Hoffman stated the completion of the plans over the next 4-6 weeks will be important in providing time to secure contractor quotes and order products. He stated that based on this, the project is expected to begin during June or July 2017. The construction duration will be approximately 3-4 months. He added that staff will report back to council in a few weeks. Councilmember Mavity suggested the wall of mayors should possibly be moved, especially in light of all the race equity work being done in the city. Mayor Spano stated that when he talks with school children, he does point this fact out and note there is work being done to bring change. 2. PLACE's Application for Tax Increment Financing (TIF) Assistance Mr. Hunt explained the PLACE application for TIF assistance. He noted that the total development cost for PLACE is estimated at $123 million, noting this amount is not financially feasible for the developer. Therefore, the developer is asking for $5.66 million in tax increment assistance. It is necessary to offset a portion of the project's $9.5 million in extraordinary site preparation costs. It is proposed that the EDA enter into a purchase and redevelopment contract with PLACE under which the developer agrees to acquire the assembled redevelopment site from the City/EDA for $6.457 million; to construct the project as proposed; and to be reimbursed for qualified site improvement costs up to $5.6 million in a pay-as-you-go tax increment note Special Study Session Minutes -4- April 3, 2017 over a term of 15 years. The proposed TIF assistance would bring the housing portion of the project closer to financial feasibility; however, PLACE has significant work remaining relative to cost refinement, financing, fundraising and securing of equity partners before the project can proceed. Councilmember Mavity stated that the fact that the city will be gaining affordable units and also comparing this development to investments in other projects, she believes there would be no financial risk to the city, adding there is no reason not to approve the TIF assistance. Councilmember Hallfin asked about the parcels of land involved. Mr. Hunt stated the EDA will act on a total of 9 parcels this evening, for the PLACE project. Councilmember Hallfin requested confirmation that the city will own all the parcels and then sell them to PLACE, asking when the city will get paid. Mr. Hunt stated that is correct; however, the city will not close on this transaction until PLACE has all the financing in place. He added that once the developer builds the project and the tax increment begins, then they will start paying the city. Mr. Locke stated that the EDA/City will receive the bulk of the purchase price for the land, $4.745 million at the closing. The rest of the purchase price, $1.5 million, PLACE will pay over time. The funds the EDA/City receive at closing will cover what the EDA/City has spent to date for the parcels purchased by the EDA/City for sale to the developer. Councilmember Miller asked if all parcels are tax exempt. Mr. Hunt stated yes, they all are now. Councilmember Brausen stated he is in favor of this TIF, adding this seems like a reasonable investment. Councilmember Sanger stated she is not going to support the TIF as she does not like the project. She questioned the use of tax payer money tied up in this project for a building that will be valued at half its cost and wondered what kind of research staff has done on how to use this money in a different fashion. She further asked what the city could do instead. Ms. Kvilvang from Ehlers stated for these types of bonds, there is limited use, adding the only thing they could be used for is 20% affordable housing, and specifically for this type of project. She added the development provides mixed use, affordable housing, and e -generation. Councilmember Sanger asked what will happen if the project is not successful in the long term and is not fully occupied, or if the hotel is not successful. Ms. Kvilvang stated there is no concern about this, adding that the property has an industry standard risk profile and vacancy profiles. Councilmember Sanger asked also about the Wooddale Bridge and if changes will be made to the bridge with or without the PLACE project moving forward. Mr. Locke stated Wooddale Bridge improvements are needed with or without the PLACE project. Councilmember Sanger disagreed and stated that Ms. Heiser had told her that some of the Wooddale improvements were needed specifically for the PLACE project. Councilmember Mavity stated whether or not it is the PLACE project which is developed here, the city certainly wants the former McGarvey Coffee property to be developed. Regardless of the development, the Wooddale Bridge will need to be updated. Special Study Session Minutes -5- April 3, 2017 Councilmember Sanger stated the timing of this request is questionable. She added that by giving the TIF assistance now, it becomes a slippery slope to do tax financing before we actually look at the project itself. Mr. Locke stated the city always attempts to have zoning and planning running parallel with the TIF process. He added this is a complex project, and PLACE is in the process of getting all of its zoning approvals, adding there is nothing unusual about the timing here. Staff is not trying to fast track anything. Councilmember Sanger added that the Bridgewater project zoning approvals are coming to the City Council tonight in advance of consideration of TIF assistance. Mr. Locke stated that the Bridgewater project is a different situation. Councilmember Lindberg stated the developer deserves a lot of credit, and he appreciates the number of changes that have been made from what the project was and what it is today. He added staff deserves much credit for negotiating this project, adding there is no risk to our taxpayers. PLACE is a benefit to the community. He added this is a reasonable TIF request, and the project is reflective of our city's values, with the environmental and affordable housing components. Mayor Spann stated every project is different in timing and financial needs, adding that this is a unique financial project and requires a different look and view. He stated the commitment is big, and the payoff will be big. It was the consensus of the council to move forward. Mr. Hunt stated this evening the EDA will be asked to approve the purchase agreement with Hennepin County for the remnant parcels needed for the PLACE project, and at the next the meeting, the council will see the terms of the actual PLACE redevelopment agreement. He added on May 1, 2017, the public hearing will be held for the TIF district, and the council will consider approval of the purchase agreement. The meeting adjourned at 7:15 p.m. �4 Melissa Kenne y, City Clerk ��