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08-13-91 ws.; R w MINUTES OF COUNCIL WORK SESSION AUGUST 13, 1991 The Hopkins City Council held a work session in the City Council Chambers of the Hopkins City Hall on August 13, 1991, at 6:30 p.m. Present were Mayor Berg and Council Members Kritzler, Redepenning, Anderson, and Shirley. Also present were City staff: City Manager Steve Mielke, Community Development Director Tom Harmening, Planning and Economic Development Director Jim Kerrigan, and Community Development Specialist Paul Steinman. I. Discussion - Grocery Store Project Mayor Berg introduced the, topic and indicated that staff would be providing a presentation on the history of the proposed grocery store project, a response to the written questions prepared by the neighborhood organization, as well as an outline of the alternative sites which the City had examined in the past. The Mayor further indicated that after staff had completed the presentation, the Mayor would open up the discussion to comments and questions from the audience. The Mayor further stated that no decisions were proposed to be made this evening on the project. ~`~ Rather, the City Council was scheduled to discuss the matter at its regular meeting on August 20, examine the alternatives it had, and provide direction as to its position on the project. Fran Hesch, 246 6th Avenue N., requested that she be allowed to make an opening statement prior to staff's presentation. The Mayor obliged this request. Ms. Hesch indicated that Council should consider stopping the project now. Ms. Hesch further indicated that a different location for the grocery store project seems possible and that businesses would prefer having a second grocery store on 11th Avenue. Ms. Hesch also expressed observations regarding recent ~ zoning decisions which the City had or was in the process of making regarding churches and a townhouse project. Tom Harmening, Community Development Director, proceeded to outline the background on the project based upon existing files available. This background period covered a span from 1981 to the present time. After Mr. Harmening provided the historical perspective on the project, he summarized a response which staff had prepared to the written questions submitted to the City by the neighborhood organization. Mr. Kerrigan and Mr. Steinman then provided an outline of the various site alternatives which staff and the City w S' Council had examined in the past regarding the possible location of a grocery store. Mr. Kerrigan indicated that in order to accommodate a project as currently proposed, including a grocery store and freestanding retail, over five acres of land was needed. Mr. Kerrigan further indicated that to accommodate just a freestanding grocery store, approximately 3.5 acres was required. Mr. Kerrigan then reviewed with the Council and the public in attendance 12 alternative sites which staff had examined. As a part of this explanation, Mr. Kerrigan outlined the negative and positive factors pertaining to each site. After staff had completed its presentation, the Mayor opened up the discussion to the public. Comments made during this portion of the meeting were as follows: o Agnes Kasper - Ms. Kasper expressed support for the project and indicated that it was okay with her if the City acquired her property. Ms. Kasper indicated that due to her handicapped condition, it would be almost impossible for her to gain access to a store south of County Road 3. Ms. Kasper indicated that other people were in a similar situation and viewed County Road 3 as a barrier which would split up the shopping areas. o Bernie Ostrow, Union Prescriptions - Mr. Ostrow indicated that the proposed project was not self- suff icient from a tax increment project. Mr. Ostrow indicated that the payback period based upon the public financial participation in the project was not sufficient. Mr. Ostrow also indicated that he had heard that a drug store was proposed to be included in the project. Ostrow indicated that another drug store in Hopkins would cripple the other drug stores. Mr. Ostrow also raised questions regarding other projects the City had facilitated. o Karen Legenhausen, 126-6th Avenue N. - Ms. Legenhausen questioned why the two parcels on County Road 3, separated by the railroad tracks, could not be combined to allow for a grocery store project. Ms. Legenhausen indicated that the 11th Avenue site was much more appropriate for a grocery store and that the City should place more emphasis on attempting to attract a large store such as a Cub, Holiday Plus, or Rainbow Foods to the site. o Bill McHale, Ryan Construction - Mr. McHale indicated that approximately 7 to 7.5 acres was required to accommodate a Cub store. McHale indicated that they had examined the potential of locating a Cub store on Mainstreet Hopkins. McHale indicated that locating a store of this size was not feasible. McHale also indicated that a Cub store could possibly work on 11th Avenue. o Lori Nelson, 37 7th Ave. N. - Ms. Nelson questioned why the City was not interested in placing the grocery store on 11th Avenue, due primarily to owners' concerns. o Herb Hesch, 246 6th Ave. N. - Mr. Hesch indicated that he felt multiple grocery stores should be located in Hopkins and questioned why two stores could not operate successfully in Hopkins. Mr. Hesch suggested that one grocery store be built on 11th Avenue with the second remaining in downtown Hopkins. Mr. Hesch also indicated that the charter provided for a referendum process in certain instances and that maybe it could be used in this case. Hesch also indicated that he felt the Council was not representing the citizens' wishes and that the businesses do not want the project to proceed. o Kitty Alcott, 245 12th Avenue N. - Ms. Alcott indicated that she felt consideration should be given for the Tait's existing site for the grocery store. Ms. Alcott felt that the parking lots in this area are not overly utilized. Ms. Alcott also indicated that we should be attempting to keep our existing parking lots in good condition. Alcott further indicated that in the past the City made a strong commitment to preserving neighborhoods for low and moderate income people and that the grocery store was not in the best interest of the citizens. Alcott also indicated that the LRT route should be utilized for trail purposes and that the' proposed project would destroy the neighborhood. o Gil Johnson, 337 12th Avenue N. - Mr. Johnson questioned when the City had decided to use the City's tax dollars for individual or private developments. o Paula Beauchene, 123 8th Avenue N. - Ms. Beauchene indicated that most people would not ,like to have this kind of project located adjacent to them because they are negatively affected by it. o Larry Dowell, TwinWest Chamber of Commerce - Mr. Dowell indicated that the Business Council has expressed their support for the project in the past and is reaffirming their support for the development. o Rick McNaughton, 30 7th Ave. N. - Mr. McNaughton wanted a guarantee that the value of his home would not decrease. Mr. McNaughton indicated that he felt the grocery store would become a gathering spot for kids and was concerned regarding semi access to the store. o Karen Alexander, 133 6th Ave. N. - Ms. Alexander expressed opposition against the purchase of homes as a result of the project and expressed reservations about the project in general. Ms. Alexander indicated that the loitering which is taking place between 6th and 8th Avenue needs to be addressed. Alexander suggested that the City develop something for the kids on this block to give them something to do. Alexander also indicated that Hopkins would benefit by having a second store on County Road 3. o Al Schmeidel, 21 7th Ave. N. - Mr. Schmeidel indicated that his home would be purchased as a result of the project. Schmeidel indicated that he does not want to move. Furthermore, Schmeidel indicated that the Zoning and Planning Commission was opposed to the project. Schmeidel also indicated that Rudy Luther will profit from this development. o Dale Searles, 38 7th Ave. N. - Mr. Searles indicated that the residents want to support retail in Hopkins but not at the expense of residential property. Mr. Searles suggested that the site be scaled back and that the City look at less ambitious alternatives for the redevelopment of the site. o Bob Miller, Merriam Park, 10 10th Avenue N. - Mr. Miller indicated that the City needs to define the problem and then search for solutions. Miller indicated that years from now the City may regret not undertaking the project. Miller indicated that if the project should take place south of County Road 3, County Road 3 will divide the retail components in the City. Miller indicated that the City should not let the anchor leave the CBD. Miller did express some concern about adding additional retail space. Miller indicated that the City must be involved to keep Mainstreet vital and suggested that residents look at sites with staff . o Karen Legenhausen, 126 6th Ave. N. - Legenhausen indicated she would like to see a large grocery store located along 11th Avenue. Legenhausen suggested a youth project for the proposed site. Legenhausen also questioned why the site couldn't be redeveloped with-small shops, similar in design to other parts of Mainstreet. o Nancy Lee - Ms. Lee expressed concerns regarding traffic which may be generated on 1st St . N . Ms . Lee also expressed concerns regarding buses and semi traffic on the street. o Lynn Schwankl - Mr. Schwankl indicated that the City had undertaken an exhaustive amount of work on this project. Schwankl indicated he felt the site was satisfactory but that the City should take a hard, look at traffic impacts. Schwankl indicated that Hopkins needs to adapt to changing retail methods. o Lyle Fuller, Super Valu - Mr. Fuller indicated that the Tait's Grocery Store needs to grow. Either it grows or it dies. Mr. Fuller indicated that the community will not support two stores. o Jean Searles, 38 7th Avenue N. - Ms. Searles indicated that i,f the project did take place, the City should do something for the neighborhood as well. Searles indicated that the City should look at traffic on 1st Street and 8th Avenue. Searles suggested that a committee be formed to look at the needs of the residential area (stop signs, parks, etc.). o Harry Smith, 121 10th Ave. N. - Mr. Smith indicated he was the chairman of the Business Council. Smith also indicated that the Business Council has reaffirmed its position as being in favor of the project. Smith also indicated he would like to see something for the youth. o Karen Legenhausen - Legenhausen agreed with the concept of having a committee to discuss the development. Legenhausen agreed that the area should be upgraded, but not at the expense of homes. Legenhausen indicated that scrutiny needs to be given to the traffic impacts as related to this project. Legenhausen also questioned what would happen if someone did not want to sell their property. Other people who provided brief comments during this discussion included Herb Wolf and Gary Nelson. At this point, the public comments concluded and the Mayor briefly summarized the alternatives which the Council would be considering at their next meeting on August 20. These alternatives included: ~ o Continue with project as currently proposed. o Find alternative location in downtown. o Find alternate location in other part of City. o Scale back proposed project. o Discontinue any action on the grocery store project. The Mayor invited all interested parties to the Council's meeting on August 20 at 7:30 p.m.'in the City Council Chambers, during which the City Council would try to provide direction as to their position on this project. The Mayor thanked the persons in attendance for their comments. As there was no further discussion, a motion was made by Councilmember Redepenning, seconded by Councilmember Anderson, to adjourn the meeting. The meeting was adjourned by unanimous consent. _..-~----~-y -~