08-24-04 WSAugust 24, 2004
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MINUTES
CITY COUNCIL WORK SESSION -August 24, 2004
A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell
at 6:30 p.m. on August 24, 2004, at the City Hall. Council members Brausen, Johnson, Rowan
and Thompson were present. City personnel present were: Acting City Manager Jim Genellie;
Economic Development Director Jim Kerrigan; and Housing Coordinator Kersten Elverum. Also
present were L. Joe DeWit and Reuben Johnson of SuperValu; David Menke and Michael Ramme
of Opus; Sid Inman of Ehlers & Associates; Bob Deike; and Jim Brimeyer of the Brimeyer Group.
North Annex Redevelopment Discussion
Mr. Kerrigan briefly summarized the history of the North Annex property and the
development agreements to date. SuperValu has asked that the development agreement be revised
to allow a 3- or 4-phase project, getting reimbursement through TIF for each phase. They feel the
prompt demolition of the present buildings is very important.
Mr. DeWit said they had tried for a year to get another medical developer. In the process
they learned their drawbacks: that the present site is not schedule-friendly -the demolition, TIF
and development agreement slow the process too much; the site isn't visibly ready; there are not
enough large users available; they need a master developer. They heard the site was starting to get
a reputation for being "unresponsive." Therefore, they decided to team up with Opus. Already
they have started site planning and reinterviewing brokers previously contacted. They would like
to use the TIF off the warehouse to demolish the present building. In order to be competitive with
the needed deck parking they would need TIF dollars as the project proceeds. Opus and
SuperValu have engaged abroker -North Star Partners, adding later they are a locally owned
Cushman affiliate, which gives them international connections
Mr. Menke said present planning is for ahigh-density "campus" with probably 3 buildings.
He feels it could be similar to Crescent Ridge at 394/Crossroads. The present market is very soft
yet. He made an informal survey and was told there is only 1 possible user for over 300,000 sq. ft;
for 100-200,000 sq. ft. there might be 3, but for 50-100,000 sq. ft. there could be 12. One of his
own clients had a choice of 50 possible locations in the southwest metro area. However, he feels
the proposed plans could draw in users. He showed drawings of two possible plans, one of which
incorporated a small hotel. In both the primary access would be from Excelsior Blvd. ,with 2"d St.
NE being a secondary access. Both plans incorporated a water feature; he noted the railroad is a
negative issue, but the new intersection ameliorates that to some extent. While the plans include
the small lot north of 2"a St., he indicated Opus would try to work around that if Hopkins requires
it.
Mr. Inman added Hopkins had got the statutory cut-off for TIF extended to 2008, which is
a "severe drop-dead date." This is a deadline for spending the money, not finishing construction.
He later added he feels the TIF will work as the total is less that the old Medica plan. The issue is
the time frame. Mr. Kerrigan added the second intersection should probably have a traffic light.
Answering Council questions, Mr. Menke said from Highway 169 one would see mostly
buildings due to the elevation. Undeveloped land will be seeded. They will not interfere with the
trail in any way. (Mr. Inman noted the law has changed so Opus could not be reimbursed for any
expenses related to the trail.) The possibility of future light rail transit will be looked at in future
planning. (Mr. Kerrigan noted Medica has mentioned possible "Livable Community" money from
MET Council in that regard.) A possible hotel should not add, but should lessen, traffic problems,
as peak traffic hours would be different. Traffic engineering will be part of the next step. (Mr.
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Kerrigan noted Medica studies had been for 600,000 sq. ft. of office space and had shown with a
second intersection light that would not be a problem.) The number of employees for the campus
could be estimated at about 1,200. Mr. Johnson said with a single user, many services (restaurant,
day care, etc.) are done in-house. With multiple users as envisioned here, those services would
move out into the community. The phased plan offers greater flexibility, but added there is still
the possibility of a single user. The search will look for all users. Mr. DeWit noted that asingle-
user development is not very adaptable to "second generation" use; a campus such as this could
keep finding occupants.
Mr. Brausen said the plans are good-looking but the phasing is of concern in case it does
not finish by the deadline; due to those concerns, he will be very careful with development
agreements. Mayor Maxwell said he is not thrilled with the idea of a hotel as he feels it would not
generate the jobs that offices would. He feels the north piece needs to go to Hopkins. He does not
favor mixed use or retail. Mr. Inman, answering Mayor Maxwell, said the maximum available for
demolition is $1.5 million. Mr. Kerrigan added the development agreement has to be redone
before that can start.
General Consensus was that staff should work with SuperValu and Opus on a development
agreement. The demolition of the present building is important.
Search Consultant
Mr. Brimeyer asked for feedback on who should be involved in his information-gathering
process. He also gave Council a tentative timetable.
General Consensus was Mr. Brimeyer should get feedback from Council members,
department heads, employees, board and commissions, superintendent of schools, HBCA (perhaps
through letters), and a public forum at the fire station on Sept. 7 at 6:00 p.m. He should "start
from scratch" rather than using what the Council had found. Mr. Brimeyer should have a profile
ready on Sept. 21 at 6:30. Mr. Genellie should meet with Mr. Brimeyer to draw up an interview
schedule and get that to the Council for feedback.
Preliminary Budget and Levy
Mr. Genellie conferred with Ms. Yager by phone Friday. The budget as it now stands
($8.4 million) would result in a 7.65 % levy, which would equal a 1 % increase in taxes. The low
increase is due to the increased tax capacity (over $2 million). This breaks down as levy for debt,
$1.3 million; capital levy, $25,000; HRA levy, $10,000; general levy $285,000; overage of police
facility from reserves. For budget purposes, $75,000 = 1 % increase in taxes. The preliminary
levy must be set September 7. The levy for debt could be adjusted by the levy swap discussed
previously. He personally feels a 6 % levy increase would be sufficient, and then residents would
see their taxes go down. Mr. Brausen said that would be a moral victory for the Council. Mr.
Thompson suggested setting the levy at a 0 increase. Mayor Maxwell noted Council could reduce
the levy after the initial levy limit, but could not increase it.
Other
Ms. Johnson asked when Minnetonka Blvd. would be finished. She also asked when the old
Wendy's would be demolished. Mr. Genellie will check out these issues.
Mayor Maxwell asked why signs were up yet on ls` St. N.
Mr. Thompson asked about Ms. Sanders. Mr. Genellie showed photos taken by Nancy of
the south side. General consensus was the south side was screened sufficiently. Mr. Genellie said
Mr. Stadler met with Ms. Sanders but he has not talked to him yet.
Mr. Thompson asked about deadlines on diseased Dutch elm removal.
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Mayor Maxwell checked Council members received a commissions letter. He asked if the
overtime issue being discussed in the news concerned Hopkins. Mr. Genellie said it does not as
most city employees are unionized or supervisory.
Mr. Genellie said some have asked if Blake School could buy the houses near them. They
can, but they would need a CUP to use them for anything other than housing.
He said a residential meeting in the 4`h St. neighborhood was well attended and the answer
to the parking problems may be fairly simple. When he receives the meeting minutes he will
forward them to the Council.
Mayor Maxwell said he will call Nancy about Hopkins Dodge.
Mr. Genellie reminded Council of the employee picnic at Shady Oak Beach.
Mr. Thompson moved adjournment. Ms. Johnson seconded. On a 5-0 vote, the meeting
adjourned at 9:15 p.m.
Kasey Kester, Secretary
ATTEST:
Eugene . M ell, Mayor
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