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06-26-01 WSJune 26, 2001 Page 1 MINUTES CITY COUNCIL vVORK SESSION-- JUNE 26; 2001 A work session of the Hopkins City Council was held at 6:10 p.m. on June 26, 2001, at the City Hall. Present were Mayor Maxwell and Council Members Brausen, Hesch, Jensen and Johnson. City personnel present were City Manager Mielke, Assistant to the City Manager Stahmer, Economic Development Director Kerrigan, Finance Director Yager, Public Works Director Stadler, City Plarmer Anderson, Police Chief Reid, and Fire Chief Beckering. Zoning & Planning Commission members present were Ross Bartz, Eric Randolph, Bruce Rowan, Maura Swanson, John Szuba and Jay Thompson. Also present were Bob Deike (attorney working with Hopkins), Sid Inman of Ehlers & Associates, Nancy Schultz of SEH, Michael Boo of Allina, Patrick Bougie of RSP, John Dietrich of RLK, Medica Director Steve Elison, and Jim Vos of CRESA. Joint City Council/Zoning and Planning Commission Status Report of Vehicle/Nuisance Ordinance Ms. Anderson said the commission recommends changing the number of permitted passenger vehicles allowed parked outside to 3 per residence (6 for duplex). If there are more than three licensed drivers, the number would be the number of licensed drivers registered for that address plus one. One commercial vehicle may be parked in addition to the above. She later noted Maplewood has just passed an ordinance much like this one. Ms. Jensen said Bobbie should get an update printed in the Sailor, indicating that the changes are not yet approved and there is time for public comment. She thanked the Commission members for all the work they have done. Mayor Maxwell said his major concerns were that vehicles and RV's be parked on an improved surface so as not to interfere with neighbors. He asked if exceptions could be made "at discretion and with agreement of neighbors." Ms Anderson felt that would cause future problems. Mr. Mielke said it would have to be in writing so the city would have it on record. Ms. Hesch said she felt that would be unfair to a neighbor who would be pressured to agree; she felt the only exception should be for homeowners associations. Mr. Mielke will check on it. General Consensus seemed to favor the present draft. Mayor Maxwell said there would be one more consolidated meeting, then a public hearing. East Hopkins Market and Land Use Study Ms. Anderson said the Met Council has approved the funding for the study and a contract should be signed this week. Z&P will be involved in the Blake Road area of the study; Hoisington- Koegler will work with them. Bonz/REA will also be a subcontractor. The study will take 9-12 months. A kick-off meeting is planned to get the neighborhoods involved. Ms. Hesch said she heard comments at the State League Conference that indicate this project is "creating a buzz in the development world." Mayor Maxwell raised the question if the city should try to keep someone from trying to buy up all the land fronting Excelsior Blvd. before the planning is done. He does not want an official moratorium, but a way of getting owners to agree to a "let's wait and see the possibilities." Z&P members agreed they hope that could be June 26, 2001 Page 2 done. Mr. Brausen emphasized cooperation is a key issue. ~ General Consensus Mr. Kerrigan will talk to legal staff and investigate possible ways of holding back buying up of the north frontage property. Hoesington-Koegler's first job is to get an agreement with the property owners. All agreed they do not want to create an adversarial situation. Update Medica Site Plan Mr. Kerrigan said the present goal is for Medica to come to Z&P with a "concept" CUP with no action requested. After Z&P responds, it would be brought to the Council in August. Later in August they will ask Z&P to take action. On September 14 it will be brought to the Council for action. The closing date is still October 1. Mr. Bougie of RSP went over the newest site plan. He noted the'/z acre of greenery at the east side will become parking if another building is added in the future. The Second Ave. entry to the parking ramp will be gated so the only open access to that street will be the service access. About 65% of the space is "green space." Mr. Elison noted the main entrance has been realigned so it is across from businesses rather than residences. Mr. Boo noted that anyone who develops the south area will be subject to the same covenants as Medica. Mr. Stadler noted that as plans for the intersection develop, it may still impact the southeast corner of the plan. Miscellaneous Discussion Mr. Thompson asked about the Suburban Feed acquisition. He was told negotiations continue and the tenant is looking for a new location. Council members asked Z&P members for feedback on how the relationship between them and the Council could be improved. Mr. Bartz said joint meetings really help. Mr. Szuba says this is especially true on big projects. Mr. Rowan said that he sometimes feels Z&P is too reactive instead of proactive. It was suggested the name be changed to Planning & Zoning Commission. Special HRA Meeting: Medica Development Agreement At 7:30 Mayor Maxwell called the special HRA Meeting to order. Mr. Kerrigan explained the agreement sets out minimum requirements. The plan calls for 330,000 sq. ft. of building with a developer parcel of about 150,000 sq. ft. Mr. Boo added there is a maximum of 600,000 sq. ft., which Medica hopes to expand to by 2008. The project commences by 1/1/2003 and should be done by 5/31/2004. Attorney Deike noted that less than 330,000 sq. ft. means less TIF. Mr. Kerrigan says the TIF maximum is $12,329,800 with TIF a pay-as-you-go note based on $15,974,000 eligible costs. If those costs drop, the TIF drops correspondingly. Costs paid for the city out of pocket by Medica will be added (such as administration and consultation fees to Hoesington-Koegler and Inman). Interest is 8.5%. Ms. Yager noted the city holds back 5 % of TIF for administrative fees. Mr. Kerrigan said the major off-site issue is the intersection, which is a city responsibility, but TIF generates the money to pay the assessment bond. If TIF is not enough, then the additional money needed is assessed against the property. The public assistance figure of $16.3 million remains the same as projected earlier, although some of the areas have shifted due to the pending legislation. The time period of TIF may need to be extended, but the original shorter time frame allowance would allow that to June 26, 2001 Page 3 happen. Mr. Kerrigan then explained the various contingencies contained within the agreement to allow adaptation for future events. Mr. Mielke said SuperValu had cooperated when they realized the pending legislation could have major impacts on or even end the project. Originally the agreement had been planned to be done 2 months from now, but all three entities -Hopkins, Medica and SuperValu -worked efficiently and effectively to get this done now. Mr. Vos said SuperValu had agreed to share the risk the pending legislation poses, which made the deal possible to continue. Mr. Boo said Medica's Board had approved management to sign the agreement. Mr. Mielke said another HRA meeting is scheduled for Friday at 5:00 p.m. ; he wants to keep that open incase it is needed, but it probably will be cancelled. Ms. Hesch moved to adopt Resolution 389, authorizing execution of a contract for private redevelopment with Medica Health Plans and the issuance of tax increment revenue notes as provided therein. Ms. Johnson seconded. Approved 5-0. Council Work Session Mayor Maxwell called the work session to order at 8:35 p.m. Ms. Jensen left at this time. Public Works Site Analysis Nancy Schultz of SEH explained the three site plans, pointing out the advantages and disadvantages of each. Discussion soon eliminated Plan A which does not allow maneuvering of fire engines and made public works exterior storage problematic. Both Chief Beckering and Mr. Stadler said Plan C seemed the most usable. Mr. Stadler pointed out there are still specific issues that need to be ironed out to make that work: placement of certain exterior storage, ramping for dumpsters, etc. Mr. Mielke pointed out the issue is not to choose a plan but to decide if redoing the site should be pursued. Particular issues will be the exterior storage, routing traffic for the pavilion, movement within the project. It is possible part of the school parking area will be needed to enable to make all the issues work out. Ms. Yager said her concern is all the financing involved. This project is $8 million, plus $3.2 is needed to remodel the police department. She thinks the fire department's need is not as dire as the police issue and still wants to look more at remodeling city hall, using off-site storage, having city employees park at the ramp and using that space, etc. Ms. Hesch said the motivating factor for moving the fire department is that the police department is extremely difficult, if not impossible, to remodel to fit their needs. They could use a remodeled fire building. Thus, the fire department needed to be moved. Ms. Johnson agreed with Ms. Hesch, but added the tax impact numbers are really needed. Mayor Maxwell said he would like to continue planning, even if implementation is not possible soon. Mr. Brausen said a major push will need to be to educate the citizens, emphasizing "quality of life. " Chief Reid said the public lacks understanding of the needs of the 3 departments involved. Ms. Yager said that also applies to city staff. Mr. Brausen noted all need to be educated that safety and liability have really changed, even though city size and population are not dramatically different. General Consensus: Ms. Yager should prepare figures on tax aspects. The neighborhoods and school should not be approached yet, but should be if plans continue. Police and fire June 26, 2001 Page 4 departments need to really market their needs to the public. City employees need to be educated immediately so that they can help, not hinder, educating the public. Ms. Schultz will have one more meeting with the three departments. Other Public Works Updates The roof drainage problem behind Frame Designs has been taken care of. Lots 500/600 work is going well. Construction of 16`~ now has the storm sewer in; milling will start Thursday. Miscellaneous Knollwood Assn. has a meeting July 10 on the ponding issue. Hopkins House/Walmart: Amcon has submitted a building permit application. The legislature situation means the July state aid payment will be late; this will not pose a short-term financial threat to Hopkins. Mr. Mielke will check on the time limit for cleaning up burned-out houses. Senoma Apts: the caretaker has moved out; does there need to be a 24-hour one on duty? Mitch's Bar & Grill: several issues have risen. Mr. Genellie will look into this and the Senoma matter. Ms. Hesch moved adjournment; Ms. Johnson seconded. Meeting adjourned at 10:45 p.m. Kasey Kester, Secretary ATTEST: G~~ Euge e J. well, Mayor COUNCIL MEMBERS