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05-28-02 WSMay 28, 2002 Page 1 MINUTES CITE C®UNCIL W®RK SESSI®N -May 28, 2002 A work session of the Hopkins City Council was held at 6:35 p.m. on May 28, 2002, at the City Hall. Council members present were Mayor Maxwell and Council members Brausen, Johnson and Rowan. City personnel present were City Manager Mielke, Public Works Director Stadler, Planning & Economic Development Director Kerrigan, Asst. City Engineer Bot, Housing Coordinator Kersten Elverum, Police Chief Reid and Finance Director Yager. Also present were Sid Inman of Ehlers & Associates, Kim Vohs, John Everett, Steve Cramer and Jonathan Farmer. Community Involvement Programs Housing Coordinator Elverum said Hopkins has received a request from Community Involvement Programs (CIP) to pass a resolution supporting their receipt of funds through the Hennepin County Affordable Housing Incentive Fund program to purchase a duplex at 1301/1303 Oxford Street. The resolution is needed for CIP to receive the funds, but is not required for CIP to purchase the property and operate it as supportive housing. Mr. Cramer said such housing is given a "high priority" rating in the county-wide consolidated plan. Mr. Farmer said there are two possible problem areas: old zoning codes for group homes do not apply as supportive housing is a concept that emerged in the past 10 years. tenants have leases and pay rent, but receive support services from CIP; this type of housing is much more like rentals than "group homes." The second area is public perception of mental illness. The city would need to assure the public. Mr. Everett said CIP already has a home in Hopkins with 2 older women residents. CIP runs 20 homes and 2 apartment buildings, with 70 tenants total. They have had a contract with Hennepin County since the 1980's. As to police concerns, they have a 24 hour staff on call. Ms. Elverum said the staff concerns are the "not in my back yard" attitude and police call load. Chief Reid said CIP is a very reputable company, but his staff is at maximum load right now, especially since he is down 5 officers. Recently there were 2 mental health situations involving knives in Hopkins. Mr. Rowan said while he shares Chief Reid's concerns, anyone moving into Hopkins would be a concern. Thus police case load is not a concern of his in voting. Answering Ms. Johnson's questions, Mr. Vohs said the property would come off the tax rolls as CIP is non-profit; Mr. Mielke said there could not be city fee for services but there have been agreements of payments in lieu of taxes (Mr. Everett said that would be worked out with the county, but CIP has done it); Mr. Vohs said neighbors are talked to on a one- to-one basis before the property is closed on; leases are broken by drug and alcohol abuse (they are given one chance and evicted on second offense). CIP has a 90% success rate because they monitor so well. Most who move out do so because they have found permanent jobs and want to live alone, rather than share a home as they do under CIP. Answering Mayor Maxwell, they said tenants are same sex in each housing unit, May 28, 2002 Page 2 most do not have cars. They do not generate the calls such as Dow Towers does because these are not developmentally disabled adults, and because of CIP's support services. Licensed nurses are the major support staff. Mr. Vohs added their priority is to integrate people into neighborhoods so they pick people who will not be problems. They need the resolution before closing on June 28. Answering Mr. Mielke Mr. Vohs said if the resolution is not passed so they cannot get the $175,000 funding, they would probably not purchase the duplex. Mr. Brausen said he worked for CIP in the past and feels they are better providers and have better staff than most. He thinks CIP would help with other mental health people and actually lower the number of police calls. He feels the risk is lower than taking "off the street" renters. Mr. Vohs said Robbinsdale has not supported a CIP resolution because they have a tax base issue and received several non-profit group applications at the same time. Mr. Everett said they have concentrated on the western suburbs because they started in Minnetonka and were asked by St. Louis Park to put homes there. Next year they will be using regional staff; the first such will be in Crystal starting next week. Mr. Everett said Hennepin County offers training on police calls with mentally ill and would help Hopkins get that. They would also help with Dow Towers. General Consensus: Further information is needed on "in lieu of" payments and how CIP could help with other properties such as Dow Towers. Perhaps other properties can be viewed. Karen Jensen should be updated. Mayor Maxwell would like feedback from neighbors. This should come up at the June 18 Council meeting. North Annex Discussion Planning & Economic Development Director Kerrigan said staff needs further direction on working with SuperValu. SuperValu wants to know what is the minimum size for which TIF would be available, what types of buildings are not acceptable, etc. Mr. Inman noted the city has already put $3 million into a new intersection. Mr. Mielke added he feels SuperValu does not really understand tax increments. Mr. Kerrigan said he told them that if they meet zoning codes they can build whatever they want; if they want city assistance, they need to meet city desires. The property is on the tax rolls as $7.9 million; a recent appraisal came in lower, but he was not given the figure. Mayor Maxwell said he feels 450,000 sq. ft. would be the minimum. Other agreed. Mr. Kerrigan said the option agreement needs to be redone and is planned for mid-June. He feels it is mandatory to include language that if construction is phased in, TIF is not given until it is completed. General Consensus: Building should be 450-600,000 sq. ft.; no residential units; phasing is permitted but TIF will be awarded only on apay-as-perform basis with a master plan in place before anything is started. An office campus is what is wanted, not a "Home Depot" type business . May 28, 2002 Page 3 CIP iZeview Finance Director Yager noted County Road 3 and County Road 61 were the only 2002 projects that got delayed. She noted only PIR or Current Revenue numbers affect the tax levy or budget, other funding sources do not. There will be 3 bond issues, but all go before the bonding council at once and there is only one rating fee. Projects were then looked at individually. Particular Council comments included: the shuffleboard needs to go before the Park Board again, there needs to be more work done on the message board concept; Burnes Park needs a master plan -the hockey rink there needs to be discussed; security system for parking ramp needs discussion. Mr. Mielke noted that an initial planning meeting with the school about the Pavilion will be this week. Ms. Yager noted that the Economic Development Fund, Housing and Redevelopment Fund are in very good shape. Parking Fund will be out of money in 2008; the Cable TV fund will be hurting by 2007 if money keeps being used for HCA. She plans to decertify TIF 1.1, 2.7 and 2.8 in 2005 . Mr. Mielke said Council should closely look at the 2003 figures; if more information is needed, let staff know. The figures will now go through staff, then be brought back in 1-1 1/a months. Equipment replacement figures will come soon. 2003 Budget Parameters Ms. Yager asked how should she instruct department heads on preparing budgets. Mr. Mielke added the big question is what the legislature will do. Even if the levy is set at the maximum, people will need to be cut in March. There was general discussion. Ms. Yager said the letter to department heads would go out by the end of the week and figures will come back in July. The maximum levy needs to be set by the Council by the end of August. General Consensus: Staff should prepare several budgets including same total as last year and cutback 3-4 are talking of backing out. Other The Depot needs to be discussed soon as the other partners CIP Housing Mr. Brausen re-opened this issue, saying he really supports CIP but feels they must go to the neighbors: General consensus was that the neighbors must be talked to ahead of time, but it can be done with door-to-door visits rather than a neighborhood meeting. Mr. Brausen is willing to talk to CIP. Shoestring/HCA Mr. Mielke said Steve has agreed to allow the Shoestring production with two restrictions: no recruitment during Stages events and that Shoestring put disclaimers on their literature making clear they are not connected to Stages. Politics in the City May 28, 2002 Page 4 Mr. Mielke has been approached by politicians a'oout appearing at ciiy functions. He said city policy is to not allow that. He is open to any feedback from Council. Pay Study Mr. Mielke said the pay study has been completed and will be released tomorrow. He briefly explained why points =pay does not work out due to market demand and union pay scales. Last time this was done staff was unhappy; he anticipates it will be again. Ms. Johnson moved adjournment; Mr. Brausen seconded. Meeting adjourned at 11:05 p.m. Kasey Kester, Secretary ATTEST: i~~° Eu ne J. axwell, Mayor COUNCIL MEMBERS: