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04-27-04 WSApri127, 2004 Page 1 MINUTES `~ CITY COUNCIL WORK SESSION - Apri127, 2004 A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell at 6:30 p.m. on Apri127, 2004, at the City Hall. Council members Brausen, Johnson, Rowan and Thompson were present. City personnel present were: City Manager Steve Mielke, Facilities Director Jay Strachota, Housing Coordinator Kersten Elverum, Economic Development Director Jim Kerrigan, and Public Works Director Steve Stadler. Also present were Susan Hanna-Bibus, Mary Jo Bartos and Paul Slaton of HCA, Inc. ; Heidi Kurtze of Cornerstone and Scott England; Katie Walker of Department of Transit and Community Works for Hennepin County; and Fran Hesch, Kathleen Taber, and Vidya Roa of the Depot. Revenue Sharing Discussion, HCA, Inc. Ms. Hanna-Bibus presented three proposals on increasing payments to Hopkins. 1.Space usage fees be changed from the current program to 10% of adjusted gross theater receipts and 5% of other adjusted gross space usage receipts. The adjustment would be the rebate to community partners, which was $684 this past year. 2. 10% of membership dues would go to the city. Sponsorships (amounts over $500 from businesses) would not be considered membership dues. 3. Fundraising monies would be shared with the city on a percentage basis, with the percentage at SO % for the first $20,000 and reducing by steps to 5 % of that over $100,000, with a guarantee of at least $5,000 to Hopkins. She added that under this proposal Hopkins would have received $11,418 last year instead of $5,586. They feel the "cooperative shared revenues" section of the old agreement would never come into play so the agreement should be redrafted. Answering Council questions she and Ms. Banos said they feel HCA, Inc. will be able to meet the $5,000 minimum as they have been making loan payments as well as meeting the requirements of the old agreement. Some Council members expressed concern that donors might feel the guarantee meant they were giving to the city. General discussion on this issue followed. Ms. Hanna-Bibus said the payment to the city actually would come from their general monies, the agreement was only a formula. Mr. Mielke suggested the "shared cooperative revenues" of the old agreement be redefined to implement HCA, Inc.'s proposal by tying it to fundraising monies. He added Hopkins is still subsidizing them through staff salary, this only helps cut that subsidy. General Consensus was the new proposal is headed in the right direction. Mr. Mielke should work with them on redrafting the agreement. Council members expressed an interest in copies of past survey results. Ms. Hanna-Bibus announced June 20 will be an "Afternoon in the Park" celebration from 1:00 - 5:00 p.m. with Mainstreet Jazz. Cornerstone Concept Plan Ms. Elverum said neighborhood hearings on zoning issues will be held May 5. The rezoning for the 2 properties downtown and the Knox site will be done at the same time. Ms. Kurtze said various proformas for the properties were run. Those for only retail/office left a 2 million dollar shortfall and thus are not workable. Even housing leaves a financial gap, but it is much smaller and is manageable. Her other concern is market saturation; the retail space for the Lofts went slowly. Mr. England explained his architectural sketches and showed photos of Minneapolis townhouse Apri127, 2004 Page 2 projects in retail areas. He feels a raised area or wall is needed to break the private area from the sidewalk area. Ms. Kurtze said a "public plaza" is planned for the small triangular point. Mr. Mielke suggested they look at the small park at Highway 101/Wayzata Blvd. in Wayzata. He thought the railroad right-of--way might be able to be used for landscaping that more effectively. Ms. Johnson said she did not like the dividing wall idea. Mr. Brausen said he did. He asked about public dissent to housing there. Ms. Elverum said the only person who contacted her from HBCA was concerned about more retail moving in. Mr. Mielke asked about live/work units. Ms. Kurtze said the concept is nice but the market does not support them. Mr. Thompson noted the use of stairs for entry would prohibit that anyway; he felt condos would be better. Ms. Johnson mentioned the possibility of upscale senior housing condos, noting the staff retreats brought up this need. Mr. England said only this afternoon he had thought of adding another floor with 15 more units so he did not have sketches and figures for that idea. Council reactions were mixed. Mr. Thompson felt condos were better. Ms. Johnson liked senior condos for 6'~ but was satisfied with townhouses or destination sites on 8~'. Mr. Rowan liked Cornerstones ideas, but also liked Ms. Johnson's suggestion. Mr. Brausen liked the sketches. Mayor Maxwell was not sure he liked townhouses, he would like destination businesses. All agreed work should proceed on the PUD and public hearing. Figures will be run on Mr. England's new idea. Mr. Thompson asked the "neighborhood" definition and number of mailings be provided. Southwest LRT Study Update Mr. Stadler said he and Ms. Walker were there to update Council on the study and explain the next steps in the plan development process. Ms. Walker noted changes had been made in Route 3A to serve downtown Hopkins (rather than the 3/169 intersection), Opus, Golden Triangle and Eden Prairie Center Mall. This would increase travel time from Victoria/Chanhassen from 35 minutes to 50 minutes as it would follow more streets. More study needs to be given whether the change is viable. The next phase will include study of environmental and traffic impacts, more community work, and a re-evaluation of all 4 route possibilities. Mr. Mielke said he feels 3A is not economically viable but is politically more likely as it avoids certain residential areas. He added if choice 4, where the line would end at Hopkins, is chosen, Hopkins may not find it workable to have a huge parking ramp at 169/Excelsior Blvd. Mr. Stadler said the 3A section on 11~' Ave. concerns him. Answering Mr. Thompson, Ms. Walker said 2020 ridership figures for plans 1, 2 and 3A are similar, ranging from 22,000 to 24,000. For 4 (stopping at Hopkins) it would be 16,500. Mr. Stadler and Ms. Walker will keep Council updated. Ms. Walker noted when the next step in implemented, they will want a Council representative. Depot Staffing Discussion Ms. Roa said at present she works 12-15 hours a week as Teen Coordinator. She and Ms. Taber would like to see that increased to 30 hours with benefits. At present in a month she spends 20 hours on Friday evening events, 10 at board meetings, etc., 4 working with Ms. Taber, 4 at other meetings, 2 on grant reports. That leaves only 5 hours a week for publicizing, working on special events, etc. Because of lack of time she has been unable to implement such programs as Teen AA. Ms. Taber noted that increasing board size has meant more of her time. She spends too much time on Center issues to run the business side well. Ms. Hesch summarized Depot history and handed out a draft of a report and passed around the business classes "handbook." Sample ads developed by business students were displayed. She said the school is becoming more and more involved; the science teacher would like to use the Depot as an Apri127, 2004 Page 3 alternative energy lab. Ms. Taber said in September there will be a Depot Too at school. The Metro Regional Arts Council recently contacted her asking her to submit a grant proposal as they are interested in using the Depot as an art space. Mr. Strachota, Ms. Taber and Ms. Roa answered Council questions. Ms. Roa's salary would be $36,000 compared to the $46,000 for Anthony Hall in the past. Ms. Roa realizes her position could end at the end of 2004 if grants money does not come in. However, she feels the new programs she envisions would mean a greater ability to get funding. Mr. Strachota added school staff wants to extend the levy for lease for five years more and will go to the school board with that request. Mr. Mielke said that school staff backing is why he is willing to back the Depot's proposal for that would take care of the business side of the Depot. Ms. Roa wants to start Saturday evening events for young teens. General Consensus was the plan was viable for the present. Other Ms. Johnson asked if May 15 would work for the volunteer event. General consensus was it would not and a date should be found mid-week. Mr. Rowan reminded Council of the groundbreaking for Mainstreet School Sunday and asked they let him know if they would be attending. Mr. Thompson asked about street patching standards. Mr. Mielke will follow up with him. Ms. Johnson asked about the schoolbus garage proposal. General discussion followed. Mr. Mielke said he has told school staff he does not feel Hopkins Council would be favorable as it would be an industrial use in a residential zone. He felt it would be helpful if a Council member talked to a schoolboard member. Mayor Maxwell said he would do that. Mayor Maxwell reminded Council of the bench dedication May 26. Mr. Thompson moved adjournment. Mr. Brausen seconded. Meeting adjourned at 10:15 p.m. Kasey Kester, Secretary ATTEST: Eug a J. axwell, Mayor COUNCIL MEMBERS: