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05-30-00 WSMINUTES CITY COUNCIL WORK SESSION -MAY 30, 2000 A work session of the Hopkins City Council was held at 6:30 p.m. on May 30, 2000, at the City Hall. Council members present were Mayor Maxwell and Council members Brausen, Hesch, Jensen and Johnson. City personnel present were City Manager Mielke, Economic Development Director Kerrigan. Tax Abatement Policy, Jim Kerrigan, presenter Mr. Kerrigan explained there are no real "rules" in tax abatement; it is worked out between the entities in. each instance. The last legislature made it possible to use tax abatement for up to fifteen years under certain circumstances. The staff worked out a general guidelines policy rather than making strict rules to allow the Council more leeway in deciding individual cases. The policy has been approved by Bob Deike and Ellers & Associations, and is currently under study with the City Attorney. Mr. Mielke noted that TIFs have many rules because they affect other government entities, such as school district and county. Ms. Hesch suggested "adjacent to Hopkins downtown area" be omitted in 3.01 B1. Mr. Brausen asked why no specific number of jobs provided for TIF was given; Mr. Kerrigan said it was to give the Council more leeway in case a very worthwhile project would be short only a few job positions to qualify if a number were given. Later he noted a handicapped housing development approved for TIF in the past would no longer qualify under newer rules; tax abatement could be used if the policy isn't too restrictive. Mr. Mielke noted tax abatement might be the vehicle to help development in the Hopkins Houseing area. There was general discussion whether TIF and tax abatement should have separate policies. Mr. Kerrigan said staff felt both were public assistance measures for worthwhile projects, and that much of the guideline material was identical for both. Ms. Hesch felt that if the additional criteria sections were moved to the beginning as an introduction, one policy would work. Later she suggested special exception language be included for case-by-case decisions. Ms. Hesch's suggestions met general approval after discussion. Mr. Mielke suggested that 5.05 C could be broken into housing, commercial and industrial components. He also mentioned Woodbury had used tax abatement to facilitate the payment of improvements by private landowners. Mr. Kerrigan noted 3.01 L would cover this. There was general discussion on 3.01 B's four housing-related uses. Ms. Hesch and Ms. Jensen felt only 2 and 4 were applicable. General Consensus: Section 3.01 should be reworked; part B should be limited to 2 and 4 and mirror housing language. Section 5.05 C should have housing, commercial and industrial sections. The additional criteria should be moved to the beginning and worded as goals. The message needs to be "a project has to meet a goal; eligibility does not mean approval." "Special exceptions" language should be drafted. Mr. Brausen asked that an example be worked out and provided showing how TIF and tax abatement would work for a project. Economic Development Project Areas, Jim Kerrigan, presenter Mr. Kerrigan presented a list of possible areas. Mr. Mielke noted the staff wants feedback regarding "Are these the right sites, and what are the right uses?" Mayor Maxwell noted this was a "what could be" session, not a what should we do in the near future planning. Site l: Mainstreet between 7"' and 8"' Avenues. Does the Council want this to become an east end "anchor" for downtown, or a group of small businesses. General consensus was future development should be large scale, with a dense population of workers, and possibly residents. Site 2: Mainstreet and 5`'' Ave. Discussion centered around the poor conditions in the apartment complex. Mr. Mielke said staff was working to get it up to code compliance, which the owner seems willing to do. Ms. Hesch asked about the possibility of assessing multiple police call fees, on the order of false fire alarm fees. Mr. Brausen suggested contacting St. Paul about the low income housing at 1217 St. Anthony- which has a high police call rate. He suggested a policy of consistently-out-of-compliance means more inspections and increased fines. Mr. Mielke said there have not been enough fire safety inspections because they are done by volunteers; full time staff needs to be reallocated to cover them. General consensus: Mr. Mielke will research multiple police call fees. Fran Hesch asked for Police Chief Reid to report on high call areas in Hopkins in the fuutre. Staff reallocation will be considered. Site 3: Shady Oak Road. The biggest problem is the county has not definitely stated where the future road will be. Another complicating factor is that Minnetonka and Hopkins both are in this site. Mr. Mielke noted staff from both cities are working at trying to clarify boundaries. Mayor Maxwell noted the county has now put off roadwork unti12004. General consensus was to delay any planning till the roadway is decided. Site 4: Highways 73/7. There was general discussion of the current development plans. . General consensus: The Council was generally dissatisfied with current planning. Mr. Mielke will contact the primary developer and see if he would be interested in upscaling the plans. Due to time constraints, the other sites will be discussed at a later session. Arts Center funding options, Steve Mielke, presenter Mr. Mielke outlined the options as follows: Those needing legislative approval: sales taxes (on car sales, entertainment taxes, etc.); construction taxes/fees (as Los Angeles does); establishing property tax districts downtown. Those the Council can implement independently: ticket fees; voluntary check-offs; contributions; franchise fees (utilities); TIF Goals: (1) funding to subsidize HCA budget (2) funding to retire debts (fund raising debt of $125- 150,000 and the mortgage debt of $575-600,000 which is paid at $55,000 per year) A possible (3) would be funding downtown projects. He noted if the $55,000 per year mortgage payment were assured, goal (1) is not really needed. Mr. Mielke noted the first group needs cooperation of the legislative representatives. We need to determine what they will support. Brausen said he disliked property tax districts, feeling HCA needs business support, and that move would destroy it. Mayor Maxwell noted a building tax of even .25 could bring in considerable money over time. Mr. Mielke noted the Minnegasco contract is up for renewal; this would be a good time to start a franchise fee. Mr. Brausen felt Stages should not have ticket fees imposed on them. Ms. Hesch noted if a ticket tax applied to cinema, it would really hurt the theatre as Knollwood is getting a new cinema. Fund raising has not been done for a year and a half. Ms. Hesch said removing the fund raising debt with TIF monies was a possibility, but others did not like the idea. She also mentioned the annual Council fund raising. Later she noted the checkoff would be a way to find the "untapped" supporters of HCA. She asked about fund raising through Internet; Mr. Mielke said Bobbie is too busy to take on more; her time use may need future study. General Consensus: Building fees and franchise fees were the most favored of "large income" ideas. Mr. Mielke should do a spread sheet for these possibilities. Checkoffs, voluntary contributions should be implemented. The goals need to include the idea that once HCA needs are met, the continuing monies would fund other downtown improvements. Other SuperValu Mr. Mielke had just met with SuperValu personnel. No parameters are yet set for the perishables addition. The July Planning Commission meeting is the earliest that will be ready. He suggested a joint meeting of Commission and Council for June 27 for concept discussion. By then the traffic analysis and neighborhood meeting will be done. General Consensus was to have a joint meeting and to invite the new Planning Commission members to also attend. War Memorial at City Park Ms. Jensen said she had been approached if the city could repair the rocks at the base of the memorial. Mayor Maxwell suggested the city do the work and approach the American Legion and VFW to donate the cost. Miscellaneous matters Mr. Brausen asked for updates by Mr. Mielke on the following: volunteer dinner: will be in late fall training for volunteer board/commission members: this is underway with Mr. Mielke, Mayor Maxwell and staff doing the training. RSVPs have been mailed; follow-up phone calls will be made Wednesday. Mr. Brausen brought up the following: drain scuppers in alley on north side of Main emptying into alley: Mr. Mielke will have this looked into. Council social night before Raspberry parade: met with general approval. Attendance of play in Waconia was also suggested. Adult Graduation Ms. Jensen asked if it would be possible for the Council to attend this next Tuesday. Mr. Mielke will check on the time; if it is 8:00 and there are no public hearings, he will see if it can be worked out .and let Council know. Fran Hesch moved adjournment; Diane Johnson seconded. Adjourned at 10:02 p.m. Kasey Kester, recording secretary ATTEST: Euge e J. axwell, Mayor COUNCIL MEMBERS: