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04-08-2014 WSMINUTES OF THE CITY COUNCIL WORK SESSION Tuesday, Apri18, 2014 City Hall Raspberry Room— 6:30 p.m. The meeting was started at 6:30 p.m. Present were Mayor Maxwell and Council members Molly Cummings, Jason Gadd and Kristi Halverson, City Manager Mike Mornson, Assistant City Manager Jim Genellie and Hennepin County Assessors Michael Smerdon and Duane Scheurer. New business• Hennepin County Assessors Update Michael Smerdon, Hennepin County Residential Appraiser, reviewed the overall results of the 2014 residential market values of housing in Hopkins. The overall value change for Hopkins is +9.2%. Mr. Smerdon gave an overview of market data, open book procedures, and property information from a sample of sales used to develop the Estimated Market Values for the 2014 assessment. There has been an increase in phone calls over last year regarding property values. There was Council discussion regarding resident response to the residential market values and perceived tax implications. Mr. Smerdon discussed that the percentage increase in home value does not mean that taxes increase the same percentage. Mr. Smerdon can look back 5 years at home values and comparable home sales for residents who have concerns about their home value. Mr. Smerdon reviewed the overall percentage increases in various Hopkins neighborhoods. There was Council discussion regarding road improvements and home value. Mr. Smerdon stated that road improvement, curb appeal and an appealing neighborhood are positives for home sales. Council discussed the number of homes inspected. Mr. Smerdon stated that the 20% of homes inspected is on a rotation basis and that a building permit data formula is used to calculate value. Council discussed attendance at the Open Book meetings. Average attendance is one per year. There was discussion regarding the condo market and foreclosures. Foreclosures throughout the County are trending downward. Duane Scheurer, Hennepin County Commercial Appraiser, reviewed the commercial market values of apartments, commercial and industrial buildings in Hopkins. The commercial market increased and office market was stable in 2013. Decreases in the industrial market are due to aging properties. The older apartment stock values are increasing gradually while newer apartment values are increasing faster. There was Council discussion regarding classification of properties. Mr. Scheurer discussed properties classified lower than a"C" may be potentially slated for redevelopment. There was Council discussion regarding older industrial buildings, commercial & retail valuations, appeals and property valuations for the potential SWLRT Operations and Maintenance Facility. Council requested that properties that are given a"D" classification be referred to the City Inspections Department. The 2014 Hopkins Open Book Meeting is scheduled on Tuesday, May 6, 2014 from 5-7 pm. Public information regarding the meeting are publicized in local newspapers and on property valuation statements. Work Session Minutes April 8, 2014 Page 2 Other: Off-sale Liquor License Discussion Mr. Genellie gave an overview of licensing of off-sale liquor sales in Hopkins. Hopkins currently has seven licensed off-sale liquor stores. Mr. Genellie reviewed possible options for limiting future off-sale licenses. The Council reviewed the following options: 1. Make no changes to the current ordinances. 2. The City Council can put a cap on the number of off-sale licenses that it will issue in any given year. If such a limit were imposed, there could not be any exceptions for exclusive wine and/or beer stores. 3. The Council may be able to amend the zoning code to expand the 5,000 sq. ft. size limitation, which currently exists in the B-4 district, to all business districts. Appropriate findings of fact may have to be developed to justify this action. Mr. Genellie discussed with Council that there are concerns from Community Development staff regarding restrictions, that the ordinance could be amended depending on the situation but staff does not recommend changing the ordinance on regular basis and that all current licensees would be grandfathered in. Staff discussed another possible option of increasing the distance restriction. There was Council discussion regarding the distance restriction that is placed on liquor stores but not on the placement of daycares. Council discussed grandfathering of licenses, large warehouse- type liquor stores and limiting the number of licenses. Mr. Genellie stated that if the liquor license goes out of use for a year then the grandfathering option goes away. Staff discussed that capping the number of off-sale licenses is the simplest way to proceed and that a proposal for additional licenses could be evaluated and the ordinance amended. Staff will discuss liquor store control through zoning with the City Attorney and the Planning Department. Staff will keep the Council updated regarding options and the proposed ordinance amendment may come back to Council in May or June. • The Charter Commission will be discussing filing fees and ranked choice voting. The Charter Commission is in need of two more members. • Discussion of the City Clerk job opening and applications. • Discussion of an upcoming Heroin Epidemic Public Forum presented by Hennepin County Sheriff's office. • Bowling fundraiser for military families at Tuttle's Eat Bowl Play on April 15. • Pizza Rev Grand opening and ribbon cutting on May 14. • Council will tour Gallery Flats apartments on Tuesday, April 15 at 6 pm. • Shady Oak Road Open House on Wednesday, May 21, 5:30 pm at the Hopkins Fire Station. •Mr. Mornson updated the Council on SWLRT planning meetings and Municipal Consent. SWLRT update is scheduled for the May 13`h Council Work Session. • Discussion of the proposed purchase price and relocation costs for the duplex by Cottageville Park. • The Housing Rehabilitation Program has received 13 applications. • Mr. Mornson updated the Council on possible property development. Work Session Minutes April 8, 2014 Page 3 With no further business to discuss there was a motion by Council member Cummings and a second by Council member Gadd to adjourn the meeting at 8:17 p.m. Respectfully Submitted, Debbie Vold ,j ATTEST: ,� r -�. Eugene J. ax ell, Mayor Kristine A. Luedke, City Clerk