05-22-07 WSMay 22, 2007
Page 1
MINUTES
CITY COUNCIL WORK SESSION -May 22, 2007
A work session of the Hopkins City Council was called to order by Mayor Gene
Maxwell at 6:39 p.m. on May 22, 2007, at the Hopkins City Hall. Council members
Kristi Halverson, Bruce Rowan, Jay Thompson and Cheryl Youalcim were present. City
personnel present were City Manager Rick Getschow, Housing and Development
Coordinator Kersten Elverum, Economic Development Director Jim Kerrigan, City
Attorney Bob Dieke, Sid Inman of Ehlers and Associates, Assistant City Manager Jim
Genellie, Building Official Merwyn Larson, and Housing Inspector Elizabeth Page
Sixth and Main Redevelopment Project
Kersten Elverum explained the purpose of the discussion was to update the Council on
the progress made in securing an extension to the purchase agreement on the Park Plaza
property and GPS Development's status regarding obtaining financing for the Sixth and
Main redevelopment project.
Robert Dieke, Attorney for the Hopkins Housing & Redevelopment Authority, provided
a summary of the meeting and subsequent offer by Parl< Plaza to extend the purchase
agreement. The offer made required a payment of $60,000 or an option on the property
held or controlled by GPS Development. The extension would be for a period of 60 days
and would be followed by a period of time allowing Park Plaza owners to work with the
City on a redevelopment proposal. Mr. Dieke also summarized a recent conversation
with Steve Flanagan, GPS Development, and indicated that Mr. Flanagan would not pay
$60,000 but would provide the purchase prices to be included in the option. Mayor
Maxwell clarified that it would be the City's desire that the option be between GPS and
the City of Hopkins, rather than Park Plaza owners.
Sid Inman, Financial Advisor to the City, gave an update on GPS' financing commitment
indicating that he has asked for a meeting with the two lenders to clarify the project
proforma.
Jim Kerrigan explained that the option prices needed to be reasonable and that this was
conveyed to Mr. Flanagan.
The City Council provided the direction to negotiate an extension of the purchase
agreement including an option on GPS property.
Other
• Council members stated they had received a letter from a property owner on
21St Avenue regarding right-of--way issues. The City Manager stated he would
forward it to the Public Works Director for an update and a response.
May 22, 2007
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• The City Manager provided an update on the Shady Oak Road project and the
developments that occurred at a recent County Board Committee meeting.
• The Council briefly discussed the state legislative session that was coming to
a conclusion.
Rental Licensing Program
Staff briefly went over the background of this issue. 950 single family and two-family
units buildings are not being inspected. Staff has proposed that an inspector be hired to
regularly inspect these properties, follow-up on inspections and complaints, and perform
other administrative duties in regard to rental licensing.
Previously staff had proposed that the general license fee be increased to pay for the
expanded licensing program. Staff presented an alternative that involved a small increase
in the annual license fee and a per inspection fee. Well maintained properties would have
fewer inspections and would therefore pay less than properties that have to be inspected
on an annual basis.
After considerable discussion, the Council consensus was that staff should come bacl{ to
a future work session with the following:
• Lower annual license fee and an increased inspection fee.
• Proposed penalties for multiple reinspections.
• Details on what would be inspected and what would cause a property to fail an
inspection and require an annual reinspection.
On motion by Mr. Thompson and second by Ms. Halverson, the meeting
adjourned at 8:45 p.m. on a vote of 5-0.
Kasey Kester, Secretary
ATTEST:
Eug ne J. axwell, Mayor
COUNCIL MEMBERS: ~: