07-21-2015 Work Session after City Council Meeting MINUTES OF THE CITY COUNCIL WORK SESSION PROCEEDINGS
AT CONCLUSION OF THE REGULAR CITY COUNCIL MEETING
Tuesday, July 21, 2015
CALL TO ORDER
Mayor Maxwell called the meeting to order at 8:14 p.m. Council Members and staff present at
meeting included the following:
x Mayor Maxwell x Planning and Development Dir. Elverum
x Council Member Halverson x Community Dev. Coordinator Beekman
x Council Member Cummings x Public Works Director Stadler
x Council Member Gadd
x Council Member Kuznia
x City Manager Mornson
The following updates were provided at the meeting:
Financing of Additional Parking Stalls on Johnson Building Site— Failure of the SWLRT
Being Implemented:
In addition to City staff, a representative present for the item was Ms. Stacie Kvilvang, Ehlers &
Associates. Planning and Development Director Elverum discussed with Council the advantages and
disadvantages of a park and ride facility in the Doran development on the Johnson building site,
potential risk to the City and gave an overview of the CMAQ funding.
Ms. Kvilvang discussed with Council the risk and potential for the 8th Avenue parking facility in
the Doran development. Ms. Kvilvang commented that the developer is willing to privately
finance, incorporate and maintain a public parking facility into the development project. The
Developer is requesting 10 to 12 years of tax increment financing (TIF) to complete the project.
A final decision on the development of the SW LRT has not been reached but the Developer
would like to move forward on the redevelopment project soon. If the SW LRT is not funded, the
Developer has would like the City to pay for the parking facility. Ms. Kvilvang discussed the
timing of the project, overview of the proposal, bonding scenarios and risk to tax payers.
Mayor Maxwell asked how many public parking spaces would be available, construction costs
and length of the TIF district. Ms. Kvilvang commented that there would be 190 public spaces
and the approximate construction cost is $9-11 million. A 25-year TIF district would be created
and the Developer would be provided a 10-12 year note to assist the project development with
the remaining 13 years for the City to pay off the bonds.
There was discussion regarding annual maintenance costs and guaranteed number of public
parking spaces. Ms. Kvilvang commented that the developer would maintain the parking facility
and that the public easement and agreement would guarantee 190 public parking spaces.
Council discussed the risk to the City and the uncertainties with the SW LRT project. Ms.
Kvilvang explained that if the SW LRT is not realized the City will still have the benefit of a
parking ramp at this location. Ms. Elverum explained that Gallery Flats Apartments are
concerned about their shortage of parking spaces and may be able to lease space from the
development. Staff commented that there would be no overnight parking in the public portion of
the parking facility.
Council discussed their confidence in the completion of SW LRT project, benefits of a ramp
close to downtown Mainstreet and that a covered parking area maintained by a developer has a
lot of value to the City. Mayor Maxwell commented that at a recent conference he learned that
most developers ask for TIF assistance or backing from cities to complete projects. Staff
explained that the CMAQ grant is a federal program to assist in the reduction of emissions and
improvement of air quality. The grant is tied into the SW LRT project.
Council consensus was to move forward with the planning process to build a public park and ride
facility in the Doran development on the Johnson Building site.
Community Development:
Director of Planning and Development Elverum gave update on a Special HRA meeting on
Friday, July 24, 12 noon, in Hopkins City Council Chambers. The special meeting will be in
regards to the sale of the Marketplace and Main property. Ms. Kvilvang advised the Council on
the definition of the look back requirement and procedure. City Manager Mornson gave an
overview of the legal process and stated that the attorneys involved in the process are reviewing
the legal agreements.
Director of Planning and Economic Development Elverum provided information that the
Caribou at Highway 7 & County Road 73 has changed ownership and is considering installation
of a drive-through on the west side of the building. Council discussed the traffic concerns and
shared drive-through situation. The Caribou owner would need to consult with the adjoining
Credit Union and possibly do a traffic study. Staff will keep the Council updated.
Director of Planning and Economic Development Elverum discussed with Council an area of R-
3 zoning that staff would like to consider rezoning to R-1 A. The R-1 A zoning would preserve
single-family neighborhoods. The current R-3 would allow multi-family development. Council
discussed the benefits of protecting and preserving single-family homes. Council directed staff to
notify all the property owners in the affected area of the Public Hearing and reasons for the
rezoning.
ADJOURNMENT
There being no further business to come before the City Council and upon a motion by Kuznia,
second by Cummings, the meeting was unanimously adjourned at 9:17 p.m.
Respectfully Submitted,
Debbie Vold
COUN OIL MEM;ERS
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ATTEST:
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Eugene J. Maxwell, Mayor Amy Domeier, City Clerk