Memo- Zion Lutheran Church Parking Lot LeasePublic Works Department
Memorandum
To: Honorable Mayor and Members of the City Council
Copy: Rick Getschow, City Manager
From: Steven J. Stadler, Public Works Director
Date: January 8, 2009
Subject: Zion Lutheran Church Parking Lot Lease
Background
City staff first approached Pastor Randall Neal, Zion Lutheran Church Senior Pastor
about a long -term lease for use of their parking lot in early 2007. Developing such a
lease was a Park Board goal from their 2007 -2008 Strategic Plan. The Church also
was interested in parking lot improvements and began planning for a capital funding
campaign. Upon approval of the Minnetonka Mills Rd street improvement project, the
Church worked with Bolton & Menk for the design of parking lot improvements. One
idea Pastor Neal & I discussed was the City sharing in lot improvement costs with a
long -term lease arrangement. The economic downturn occurred and the Church
delayed its plans for parking lot improvements. They do have a completed design for
the north 1/3 of the parking lot (adjacent to the church). However, the only work done in
conjunction with our street improvements was connecting a church parking lot storm
drain and holding tank via a gravity -flow pipe to a city storm sewer pipe under
Minnetonka Mills Rd. This was very beneficial to the church as it eliminated a storm
water pumping system. There were several discussions with Pastor Neal and Eddie
Lundgren about parking lot lease rates, forgiving the street assessment and a new exit -
only drive from the parking lot to 2nd Street North. Eventually, the Church dropped the
request for an additional exit from the parking lot. In late October, I received the
attached proposal for the City's continued use of the parking lot, which includes an
annual rental fee. Pastor Neal will not attend this first meeting with City Council.
Park Board input
The Park Board considered this item at its December 15 meeting. The Board would
like to continue partnering with the Church for parking lot use via a lease agreement.
However, they felt that it could be reasonably argued that the city need for the Church
-, 1 r-
.
lot would be reduced to just picnic events if additional parking stalls were added along
the north side of 2nd Street North, adjacent to the park. Accordingly, the proposed
annual fee in the lease agreement could also be reduced. See attached draft Park
Board meeting minutes.
Terms of Church Proposal:
Rental Fee: Essentially $6,000 /year with the first five years being paid for by forgiving
the Church's $29,597.86 street assessment.
Term: 20 years
Miscellaneous: City stripes the parking lot every other year and sweeps the lot
twice /year.
Is the proposed annual rental fee reasonable?
The present day cost of this 20 -year proposal is about $120,000 (i= 4 %), not including
the annual maintenance costs. This would be roughly equal to the cost of the city
constructing a new 30 -stall parking lot with no property acquisition costs.
Another way to look at lease rates would be to assign a property value to the parking
lot. This isn't easy as the property is zoned "institutional ". If we value it based on
residential lots, the value would be approximately three standard home lots x
$75,000 /lot = $225,000. It is standard practice to use 10% of property value as an
exclusive lease rate. The lease rate would then be $22,500 /year. However, the use is
not exclusive so the rate would have to be reduced. During the 2007 season, the park
shelters were reserved for picnic use on 46 dates. If we add another 20 days to
account for the benefit of the occasional daily users, we are at 20% of a year. It
possibly could be argued that the exclusive lease rate should then be reduced to 20%
of $22,500, or $4,500 /year.
Other
The church is still interested in parking lot improvements but has decided to wait until
the economy turns around before they approach the congregation on funding this large
expenditure.
This parking lot is used by occasional park users and, of course, by those attending the
larger picnic events in Burnes Park. The lot is positioned to be the closest parking area
to the picnic pavilions, play equipment, basketball play area and tennis courts. In the
2007 summer season there were 46 picnic reservations at Burnes Park.
There are 15 parking stalls along Minnetonka Mills Road.
Additional parking stalls could be constructed along 2nd Street North as a part of the
Park Ridge neighborhood street improvements. About 20 additional stalls could be
installed at a cost of about $35,000.
Based on discussions to -date, it's clear that the Church sincerely desires to be
cooperative and considerate in negotiating a lease agreement with the City. City staff
believes that the Church Board of Trustees wants to better position the Church for
future parking lot improvements. They may not get congregational support for a future
parking lot improvement funding campaign if the City doesn't in some way share in
those improvement costs.
In negotiating the terms of a parking lot lease, staff feels that the following points should
be considered:
- Recognition of past City benefit at very little cost
- Maintaining a positive relationship with Zion Lutheran Church
- City need for the lot in year 2010+ is significantly reduced with the addition of 20 new
parking stalls along 2nd St N
- Continued need for the Zion Parking Lot in support of picnic events in the park
- Limited funds available via the Park Capital Improvements fund
- City preference that the Church makes parking lot improvements in the near -term
Staff looks forward to discussing this further with City Council.
ZION
LUTHERAN
CHURCH
Fan into flame the gift of God within you. 2 Timothy 1:6
Randall A. Neal Burnes Park and the access to and use of
Senior Pastor Zion Lutheran Church's parking lot by the City of Hopkins
Howie A. Krienke October 24, 2008
Associate Pastor,
Shepherding Ministries Zion Lutheran Church desires to be a cooperative, considerate and helpful member of the
Hopkins community. Over the years there has been an informal, gentleman's agreement
Katie Wareham between the City of Hopkins and Zion Lutheran Church regarding access to Burnes Park
Director of Parish Music and the use of Zion's private parking lot for Burnes Park and regional bike path patrons.
Vicki Peterson
Lifelong Learning BENEFITS TO THE CITY OF HOPKINS OF USING ZLC'S PARKING LOT
Director 1. 140 paved and lighted parking spaces available for use at Burnes Park, city owned
tennis courts, nearby regional biking trails, community events (Raspberry Festival staging
Lisa Day area, etc.)
Director of Student 2. Full access to Burnes Park and the pedestrianibike path from the west side of the park
Ministry 3. Regular maintenance and care of the parking lot performed by ZLC
Judy Fuhrman
Director of Zion Early GENERAL REQUESTS OF THE CITY OF HOPKINS
Childhood Center 1. On Sundays between 6:00 am — 12:30 pm the parking lot will be limited to church
related usage.
Bonnie Shelton 2. No heavy trucks (concern for increased damage, cracking, or crumbling of the asphalt)
Office Manager 3. No storage of equipment on the lot
Teresa Hassing 4. Re- stripe (paint) the parking lot at least every other year
Office Assistant 5. Sweep the lot at least once in the Spring and once in the Fall each year
Rick Tupa ADDITIONAL DETAILS
Property Engineer 1. Length of agreement is for 20 years.
2. As the property owner, Zion retains final say on non - previously agreed upon usage of
the parking lot.
FINANCIAL CONSIDERATIONS
241 5th Ave. N. 1. Annual rental fee
Hopkins, MN a. $500 per month for the first five (5) years of a twenty (20) year agreement
55343 -7376 b. The Minnetonka Mills Road reconstruction assessment to Zion ($29,597.86 plus
any interest will be waved) will be used as the annual rental fee to Zion in lieu of a cash
952 - 938 -7661 payment to Zion for the first five (5) years of the twenty (20) year agreement.
Fax: 952- 938 -7662 c. Beginning in year six (6) of the agreement a three percent (3 %) annual increase in
www.Zionhopkins.org the original rental fee will take effect for the duration of the agreement.
A congregation of Smc 0
The Lutheran Church- !` L
Missouri Synod � . _ � A/
Rev. Randall eal, Senior Pastor Eddie Lundgren, Chairman, Board of Trustees
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CITY OF HOPKINS
PARK BOARD MEETING MINUTES
December 15, 2008
A regular meeting of the Hopkins Park Board was held on December 15, 2008.
I. CALL TO ORDER
Doug Datta, Chairperson called the meeting to order at 6:35 p.m.
II. ROLL CALL
Present were Park Board members: Aaron Kuznia,
of Hopkins staff liaison Steve Stadler. Absent were
III. APPROVAL OF MINUTES FOR NOVEMBER 17,
r iE,
Aaron Kuznia moved and Brian Furan sec tion to
2008 meeting. On the vote, the minutes were aprtiv.
IV. BUSINESS
a
Steve Stadler reported that th'bai
Februar 24 t,a john the 1
provided a p`t'ipose a fog
educatefie attendees on tll'
desc bi' tie park attributes
park mpro plan, the m'e
and on priorit Zio George Wat
feedback forms ose resul
,ys
Associates, Ltd wi 1 1 ! !All ilitate,1
after the conclusion olh;;n
B. Park Board
to and Brian Furan. A�;11present was City
MoNiv ummin�s and S t Paulson.
for the November 17,
g �d meetfgs were set for the evenings of January 27 and
l elist a "' 1 ' church on Interlachen Road. Members were
i�e�'j t nary 27 meeting. Stadler stated that this meeting will be used to
s CIP;;6,4 � eject budget, typical neighborhood park standards plus
limitatt�. Additionally, and more importantly to the building of a
,�: ng willl e used to solicit input on resident and family needs at the park
C4 Brauer & Associates, Ltd. has read through the neighborhood survey
;will be reiterated to the meeting attendees, as well. Brauer &
meeting. The regular monthly Park Board meeting will commence
orhood meeting.
10 Goals
The Park Board discussed a proposed 2009 -2010 Strategic Plan and generally approved of the new plan
that Stadler developed based on Board comments and discussion to -date. It was decided that the vote on
the new plan would be held at the January 2009 meeting after Molly Cummings and Sharon Paulson had
an opportunity to review and comment on it.
City of Hopkins
Park Board Minutes
December 15, 2008
Page 2 of 4
C. Park Buy -a -Bench Program
The Park Board discussed starting a memorial bench and tree donation program for the parks. More
work is needed to identify how many benches and trees each park can support, how a donated tree will
be memorialized, bench style, donation amounts, etc. The Board preferred benches similar to those at
Downtown Park and a flush - mounted stone memorial at the tree sites. A less expensive alternative
would be giving the donor a distinctive deed document with the park locatior;,Ogscribed. Stadler will
begin developing the details of a program. Doug Datta asked the membertI'o estimate the number of
benches we should plan for in each of their assigned parks. The item 3 ,i l e taken up again at the
January meeting. � r " "' "�$11I T, ao"
D. Zion Lutheran Church Parking Lot Lease Agreement
Stadler reviewed the parking lot lease situation, as described in his Dec
Board members. After considerable discussion, the ar ` tcknowled�
of this parking lot and felt that we needed to somehow suj5O', jhe chi
parking lot in the near future. However, they were concernec< R 16
increases would significantly reduce the park dedication fund o 1 1", _ e
Board supported the construction of a new 4 parking area aloe
111
with the existing parking along Minnetonka I 1I � aad plus this new 1
all occasional users of the park. The city need r fti! church lot
picnic events during the summer. Thus, the leas
forgiving the street assessment could be in exchani
within an agreement there co1'b:possibly be a
ect.
• Ter `0111",�,t p
ig hab
update at this ti'ri
fiber 12 me "i ' ,'T the Park
the city's past' Find benefit
,s desire to irn o this
,000 annual fee with 3% annual
proposed 20 -year lease term. The
d Street North. They felt that
;f'!W d accommodate virtually
W U d then be limited to the
t° perhaps $3,000 /year and
ding lot lease. The Board felt that
ner with the Church on a future
& f8a&of move t 'ft'btt School District for Central Park tennis courts
electrical service was brought into the site by Kilmer Electric, Inc.
Park planning
The Park Board Tara Beard's Dec 9 update memo and reviewed the preferred small
area concept plan, dated December 8, prepared by the planning consultant, Hay- Dobbs. There is
a public open house scheduled prior to the January 20 City Council Meeting.
• Central Park Ball Field #4 Improvements
City of Hopkins
Park Board Minutes
December 15, 2008
Page 3 of 4
No update at this time.
• Park Valley Playground naming & neighborhood requests
Stadler mentioned that the City did the backfilling around the pavilion concrete slab.
• SW Transitway Update
Stadler stated there was a station area planning meeting on
received no feedback from the County or HDR (County co
comments. qj
• Interlachen Park Mosquito Spraying Incident
No update at this time.
• Nine Mile Creek Bank Stabilization/Habitat Er
trail projects
The Watershed District will hold its retl fee
The meeting will include a public heari �' ��' pri "�r
and trail work is scheduled to begin in 2 `(,� and
E. Park Area
ruing. The City has
on its DEIS scoping
Three Rivers Park District regional
mg at Hoplcin'' Ct on Wednesday night.
�� rrmg the fii1 project design work. Creek
'brrialtd bf fall, 2010.
Sharon Paulsoi ijl I fer, Burnes Pad,,- „absent.
Aaron Ku7 a M t d i 1 °`ftr”' Park, Shady Oak Beach - nothing to report -
excel t there is ' ffgood ice on Shady Oak Lake.
Br1gn Furan. 'MM ,,,,Central Park, Oakes Park - nothing to report.
Cummings: C - eville ' k, Harley Hopkins Park, Elmo Park - absent.
Doug D Par��E alley Playground, Shady Oak Nature Area, Downtown Park,
Hiawatha Oaks - nothing to report.
V. NEXT SCHEDULED MEETINGS:
The next regular Park Board Meeting is January 27, 2009; 6:30 pm at the St John the Evangelist
Catholic Church, located at 9 Interlachen Road.
VI. ADJOURNMENT
City of Hopkins
Park Board Minutes
December 15, 2008
Page 4 of 4
Brian Furan moved and Aaron Kuznia seconded a motion to adjourn. The motion carried on a 3
- 0 vote. The meeting adjourned at 8:35 p.m.
Attest:
Chairperson