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01-25-05 WSJanuary 25, 2005 Page 1 • MINUTES CITY COUNCIL WORK SESSION -January 25, 2005 A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell at 5:30 p.m. on January 25, 2005, at the City Hall. Council members Brausen, Johnson, Rowan and Thompson were present. City personnel present were Economic Development Director Jim Kerrigan; Public Works Director Steve Stadler; and Housing Coordinator Kersten Elverum. Also present was Sid Inman from Ehlers & Associates and Jay Murzyn from SEH. At the joint Council and Zoning & Planning Commission portion were: City Planner Nancy Anderson; Mike Kjos, Kristi Halverson, Jeff Paul, Peter Sholtz, Jannina Aristy and Virgil Aarness of Zoning and Planning; and Larry Blackstad of Hennepin County Community Works. In the audience was Steve Olson of 215 Maple Hill Road, Hopkins. Discussion of Block 64 Redevelopment Project Mr. Kerrigan said that GPS had obtained purchase agreements from all property owners; then Park Plaza Property canceled theirs. GPS would like to have a sense if the Council would consider using eminent domain if their continued efforts to reach a settlement with Park Plaza fail. Otherwise they fear their possible redevelopment for the block bounded by 5th Avenue, 6th Avenue, Mainstreet and First Street North would be impossible. Using eminent domain could be controversial, and the city would require the developer to have a deposit for purchase, relocation, etc. Mr. Inman noted no one, including the developer, wants to have it used if at all possible. Mr. Kerrigan added the • developer does not want it as it would slow the process and they are on a very aggressive schedule starting June 2005. Both Mr. Inman and Mr. Kerrigan feel the developer will do everything to reach a settlement. Answering Council questions, Mr. Kerrigan and Mr. Inman said that the action would not affect the TIF district. TIF would work if the city went out at least 20 years. So far no advocacy group has been successful in stopping eminent domain action. GPS is still going forward with the market study and hopes to have preliminary information by Feb. 1. If all goes well, a development agreement could be possible by May 1. Even if this development project does not work out, the market study and TIF analysis would be of value to another developer. The new housing on Grand in St. Louis Park has a density of 44/acre; this would be approximately 80/acre. There must be a public purpose served to justify eminent domain. Constructing properties that have a higher property value is a public purpose as is the creation of senior housing. Statutes also include removal of blight. Mayor Maxwell said he talked to GPS today and their goal is to not use eminent domain. They feel they can get most of the residents in the apartments relocated. Mr. Kerrigan noted there are some residents may be difficult to relocate because of their bad credit record. Mr. Brausen said Park Plaza is not low-income housing. If this is treated proactively, it could mean better housing for these people; it could be a golden opportunity for everyone. Mayor Maxwell said he feels this development would clean up a whole section of town. Ms. Johnson noted a lot of public safety money goes to :~ police that area. Mr. Rowan said he wants to be sure the public purpose is truly served, January 25, 2005 Page 2 not just the developer's profit. He is concerned about relocation but knows that will be addressed. Mr. Thompson says he sees real reasons to do whatever is necessary. Mr. Kerrigan noted the financing, plan approval, relocation, TIF set-up and a several million dollars deposit would be needed before eminent domain could be considered. General Consensus was the Council does not want to use eminent domain, but if GPS can demonstrate they have done everything possible, they would do it. Joint City Council and Zoning & Planning Meeting At 6:30 p.m. Larry Blackstad addressed the joint group. He says Hennepin Community Works tries to serve as a bridge between communities and Hennepin County transportation. They create opportunities for reinvestment. Recent projects have included Midtown Corridor, Humboldt Greenway and Lowry Avenue Corridor. He noted HCW is "pretty good at getting money." In this project they would be involved in funding the initial land use study, finding money for redevelopment, securing funds from the county board for redevelopment. All their efforts must be done with the cooperation and understanding of the community; must have political support of the community; and must add to the community when the project is over. Mayor Maxwell noted that at the joint meeting of the Hopkins and Minnetonka City Councils a major concern was that businesses and residents be able to stay in the area. He suggested a joint meeting of the zoning and planning committees. Mr. Blackstad agreed that was a good idea. Mr. Maxwell stressed to the commission members that this is a long-range project, but it is important to set the direction for it now. Ms. Johnson noted that if business owners can be approached with "can we build a new building for you here?" they could get excited. Mr. Blackstad said this is very important to HCW, and they will work with those people. It is important the process works for everyone. Mr. Stadler said this road has not been platted out. Feb. 8 there will be a meeting at the Minnetonka Community Center from 5:00 to 7:00; residents within 1000 feet have been notified. It was also put in the Update. Ms. Johnson noted some people are not aware that the county will be redoing Shady Oak to the Crosstown next year. City Planner Anderson handed out copies of the comp plan map, noting some changes had been made since the map was done. "Choke points" that have to be dealt with include the duck pond area, the Oaks/Mainstreet area as the Oaks were built thinking any roadwork would go to the west rather than the east, and the joining with Highway 7 due to its skewed angle. Mr. Harness asked how the roadwork would benefit Hopkins; the traffic is from Eden Prairie and Minnetonka, and Hopkins could lose tax dollars if businesses close. Mr. Stadler said a redeveloped business area could be a real benefit. He added March 8 is a potential date for a joint council meeting to assess the results of the February 8 meeting. May 2006 is the deadline for a layout. The county wants to get public input before that layout is done. Ms. Anderson added there will be public hearings March 28-9 for the north and south sections. She noted the Excelsior Blvd. process started in 1994, and got done last summer. This is a similar process. Ms. Anderson told the Council that Z&P has identified several properties in Hopkins they want to look at. Mayor Maxwell suggested they go through the Fire Dept., January 25, 2005 Page 3 Public Works Building and Police Dept. as they did so much work on them. He also suggested the city rent a bus and Z&P and the Council go through Hopkins with the comprehensive plan and really see the properties involved. At 7:30 Z&P went to their meeting and the work session resumed. Lot 800 Reconstruction Mr. Stadler said the CIP budget is $250,000 for Lot 800; the construction estimate is $168,884 and the project cost estimate is $200,000. He hopes for design approval in March. Jay Murzyn of SEH presented a concept plan. There would be 81 spaces, 4 of which would be for handicapped. There would be no new major lights, only "shoebox" lights. The existing fence would be replaced by a cedar fence 1 1/2 feet taller. General discussion followed. Ms. Johnson suggested the parking lot be considered an entry to the trail and that a handicapped spot be moved near it. Mr. Stadler agreed something could be done at that end of the lot to lead to the trail. Mr. Thompson suggested concrete rather than pavers. Mr. Brausen said at first he did not like them, but feels pavers are a good idea here. General Consensus: pricing of pavers and concrete should be compared; the lot should be connected to the trail rather than screened from the trail; a pedestrian entrance in the southeast corner (10th and 1st) in the area of the moved handicapped parking spot should be incorporated; neighbor feedback should be gotten about the fence height and lighting changes. This information can be put in the Update. Unimproved Right-of--Way Vacation Discussion Mr. Stadler said there were few responses to the letters sent out for the ROWS off Excelsior Blvd., 20th & 21st, and 2nd & 3rd. There is an issue in the 19th & 20th ROW as there is a driveway on the ROW. The Goodrich ROW poses no problems at all. He added he is not saying these are the only ROWS that need to be looked at in Hopkins. They have been brought to the attention of staff and clearly have no public purpose. General Consensus was he should come to the February 1 meeting with an order for public hearing. Other Mr. Stadler said in the 2005 street project 3 parcels had been miscalculated which would altogether total $1800 in lost assessments. General Consensus was that Hopkins should not charge the property owners more as it was a city error. Mayor Maxwell asked Mr. Stadler to look into a handicapped parking spot in front of the Elks. Mr. Genellie noted the city charges $25 per year for such designated spots. Mr. Thompson complimented Mr. Stadler on his department's snow plowing. Ms. Johnson asked if the League was taking up the issue of the governor's truth in taxation postcards idea. Mr. Genellie said he thought so and added Rep. Simon will be at the Feb. 1 council meeting. Ms. Johnson complimented staff on the holiday party. Mr. Rowan will miss the meeting next Tuesday. Mr. Brausen said he was surprised the Depot is considering going back with the Y considering the former problems with them. Mayor Maxwell said he thinks the Depot . needs to be really looked at, with Rick Getschow and Christine Harkess present. Mr. January 25, 2005 Page 4 Brausen said he wants a clear picture of where the Depot is at at the end of 2004. Mr. Genellie noted that cost is about the same if the Y does it or the city contracts for it. He agreed a discussion on finances and grants would be timely. Mayor Maxwell said he got 2 letters written on the same day from the state auditor, one saying Hopkins was late with its financial report and the other complimenting Hopkins on a great job. Ms. Johnson moved adjournment. Mr. Thompson seconded. On a 5-0 vote the meeting adjourned at 9:00 p.m. Kasey Kester, Secretary ATTEST: • ~%~~iy Eugene J. xwell, Mayor COUNCIL MEMBERS: