05-26-05 WSApri126, 2005
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MINUTES
• CITY COUNCIL WORK SESSION - Apri126, 2005
A work session of the Hopkins City Council was called to order by Mayor Gene
Maxwell at 6:30 p.m. on April 26, 2005, at the City Hall. Council members Brausen,
Johnson and Rowan were present. City personnel present were City Manager Rick
Getschow, Housing Coordinator Kersten Elverum; Economic Development Director Jim
Kerrigan; Public Works Director Steve Stadler, and City Attorney Bob Dieke. Also
present were Sid Inman of Ehlers & Associates and Steve Mahowald of Metro Transit.
Discussion of Block 64 Project
Economic Director Kerrigan said Ehlers & Associates has prepared a Financial
Feasibility Review of the information submitted by GPS Financial Group, who has
submitted the information required in whole or part except for the preliminary financing
commitment. He noted this is a phased project. The Council can wait for all the
information to be submitted before okaying going ahead with drafting a development
agreement or they can authorize staff to start the drafting after the May 3 meeting.
Attorney Dieke would do that drafting.
Mr. Inman said GPS knows what is needed and is struggling to get it. What is
needed is really detailed expenditure and income projections. He will meet with them
again Wednesday morning. GPS remains willing to pay for the drafting of the agreement.
Based on information received, he feels that because it is a "pay as you go" project with a
"look back" provision, the market study is the developer's issue. He will not get the
needed returns without TIF, as well as needing some market inflation. Income seems to
cover expenditures. There will be, no impairment of HRA as it is set up, nor any financial
exposure of the city. The high-end numbers of the market study and GPS's figures are
close. A letter of intent would probably be enough for the city to go ahead with drafting a
development agreement. However, the city must require a firm commitment on financing
before going ahead with an actual agreement. Answering Mayor Maxwell, he said the
planned TIF would be for 26 years. Mr. Kerrigan added land cost is $15-16 million with
relocation costs.
Mr. Kerrigan said he would come to the Council May 3 for approval to begin
drafting the development agreement, which would be brought in June for approval. This
is what will "lock in" both parties. It will identify the major tasks the developer must
accomplish: closing on all redevelopment property that GPS has purchase agreements on;
approval of financing; preparation of condo documents; completion of Phase 2
environmental remediation (which may involve escrowing funds); securing all
government approvals; TIF district set-up; relocations laid out. Also P&Z and the
Council will need to approve the concept; this will involve overlay zoning (PUD) so there
won't be variance requirements. All of this must be accomplished before Hopkins will do
anything involving eminent domain, for which GPS will carry the financial
responsibility. Attorney Dieke noted the financial commitment could be filled by a letter
of credit.
Answering Council questions, Mr. Kerrigan said the developer had suggested he
need not close on the apartment building beforehand as that is the last phase of the
• project; however, everything must be purchased ahead so the city is assured all phases
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will be done. Mr. Inman remarked if phase 1 and 2 don't go well, GPS may not want to
do phase 3. Mr. Kerrigan said this had just come up, and staff needs to find out more
details. Ms. Johnson noted she'd have no problem if he bought the apartment building
and continued to use it as rental property until phase 3. Mr. Kerrigan said they are talking
of selling lots in July; he doubts it will happen as there are so many steps to accomplish
first. Staff recommends nothing be done till the challenge period for the TIF district (6
months or a year) has lapsed. Mr. Inman noted any taxpayer can challenge setting up a
TIF district; in Richfield it was atwo-year process. Attorney Dieke noted this would all
be in the development agreement so the city would be well covered.
General Consensus was to go forward with drafting the development agreement.
Council should be updated after the Wednesday meeting. Sid Inman and Attorney Dieke
do not need to attend the May 3 Council meeting.
Met Transit Bus Route Cuts
City Manager Getschow said Metro Transit has had to make service cuts due to a
projected shortfall of $60 million over the next two years. Because adjustments included
elimination of several Hopkins routes, we requested someone come to discuss these with
the Council. Metro Council will accept comments until May 1. Thus, if the Council
wishes to take a position, they would need to take action at this work session.
Mr. Mahowald noted Route 12 would have some runs cuf, but the route would
continue. Routes 605, 612, and 614 are suburban circulator routes and would be
eliminated, but he noted Route 605 has had by far the best ridership. Route 661 would be
eliminated as it has the poorest ridership of all Hopkins routes. Routes 664 and 665
would be combined. If Hopkins would permit a run on 5th Street, they would combine
670 with them so Highway 7 would still get some service. Mayor Maxwell said 5th Street
is not an option.
Answering Council questions, he said the main concern at public meetings was
the elimination of routes. Those on 605, 612 and 614 expressed the most concern. Metro
Transit is cutting 10% of its service hours. They plan to add a parking deck to the Park-
and-Ride lot at 73/394. He noted the Met Council's chair had a letter in the Star Tribune
that "said it all." He feels they cannot count on help from the legislature. The biggest cuts
are on suburban circulators; Woodbury and Roseville will lose theirs; Brooklyn
Park/Brooklyn Center circulators have some of the highest ridership in the whole metro
area, so those routes will remain. He does not know the details of what is planned for the
Park-and-Ride lots in Hopkins. He thinks downtown may make more sense now. He
hopes they can honor their commitment to help with landscaping as they want to keep a
presence with Park-and-Ride.
Mayor Maxwell left at this point, and Mayor pro tem Johnson chaired.
Bruce Rowan moved enactment of Resolution 2005-041 "Resolution Opposing
Reduction in Transit Service in Hopkins and Supporting a Separate Funding Source
from Public Transit in the Region" with the addition of Route 670. Rick Brausen
seconded. Passed 3-0.
Building Maintenance Position Discussion
Public Works Director Stadler noted that Council had agreed with the passage of
• the 2005 Budget to fund a building maintenance position starting in June 2005, but has
Apri126, 2005
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requested to review the position again prior to proposed hire. He noted the need for
systematic preventive maintenance is very apparent and cannot be covered by current
- staff. He showed a breakdown of how the new person would allocate time to the various
buildings and presented a job description.
Ms. Johnson asked if the new person would be trained and then moved up when
Bob retires. Mr. Stadler said that is a possibility. There are two possibilities in-house. If it
is not filled in-house, then it would be advertised. Mr. Brausen asked if specialized
training was needed as this is general maintenance. Mr. Stadler said there are service
contracts for specialized equipment and electrical work, but the person would need to
know those systems well enough to not "call the contractors blind." He added his big
concern is the Art Center. The new facilities have energy management systems so staff
can see how the boilers, etc. are working. Answering Ms. Johnson, he said he decided the
grade level because while in one way it is an entry level job, it is leading to a foreman
position; to reach that position the person would definitely need more training. Mr.
Brausen noted the city can't reduce staff, then add two new buildings and expect staff to
keep up maintenance, and "reactionary" maintenance is not good. He added the job
description was well-written. He asked if companies would supply trainings on their
equipment; Mr. Stadler said perhaps on police building equipment, the other buildings
have been in use too long.
Other
Mr. Brausen said the police annual report was very good, and he would like to see
it presented to such groups as the Rotary. Mr. Getschow said Chief Reid had already
proposed that. Mr. Brausen would like to see a tape of the April 13 meeting; Mr. Rowan
said he would also. Mr. Getschow will see that one gets made. In commenting on the
SuperValu meeting, Mr. Brausen suggested a letter be sent to Craig Hinrichss for his
positive input. Ms. Johnson suggested such a letter be sent to all on the blue ribbon
committee after all is finalized.
Ms. Johnson noted the GED graduation is on May 24 at 7:00 at the Hopkins
Center for the Arts. It was decided the work session that night should be from 8:00 to
10:00.
In answering an earlier question from Council member Johnmson, Mr. Getschow
mentioned the units on Marketplace on Main are not all presold, but there is a waiting list
forming.
He suggested that Planning Commission members be sent to the League of
Minnesota Cities training as it is good training at a very reasonable price ($25 each). Ms.
Johnson suggested the Council even pay for a meal.
Mr. Brausen moved adjournment. Mr. Rowan seconded. On a 3-0 vote the
meeting adjourned at 8:25 p.m.
Kasey Kester, Secretary
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ATTEST:
Eug ne axwell, Mayor
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