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10-22-02 WSOctober 22, 2002 Page 1 MINUTES CITY COUNCIL WORK SESSION - Octoher 22, 2002 A work session of the Hopkins City Council was held at 6:30 p.m. on October 22, 2002, at the City Hall. Council members present were Mayor Maxwell and Council members Brausen, Jensen, and Johnson. City personnel present were: City Manager Mielke; Economic Director Kerrigan; Housing Coordinator Elverum; Public Works Director Stadler; Finance Director Yager; City Attorney Dieke; Fire Chief Beckering; Police Chief Reid; Publications Director Hartfiel; and Susan Hanna-Bibus. Also present were: Sid Inman of Ehlers & Associates; Margery Matthison- Hance; Gary Benson and David Chase of Kraus Anderson; Mike Jordan and James O'Shea of Collaborative Design Group; and Jeff Oertel of Oertel Architects. North Annex Amendment Discussion Mr. Kerrigan updated the progress on developing an amendment to the 1998 redevelopment agreement with SuperValu. At present the deadline is March 2003; this would extend it two years, with an option for three years. At present the major problem is defining what could be on the property. Although SuperValu first asked to have parameters, now they do not want any. He needs direction from the Council. He noted Council would always have final control due to TIF. SuperValu's major concern is that they might find a developer who could come close to, but not quite meet, the parameters as they now are. The present TIF ends Apri12004. There is a good possibility to get special legislation to extend that or else to make North Annex a separate TIF. The other main issue is interim use. General discussion followed. Mr. Mielke noted a possible smaller project of offices and some warehousing is being pursued by SuperValu. Ms. Johnson and Ms. Jensen wanted to keep the present language. Mr. Brausen suggested saying "prefer" rather than "must." Mr. Inman said he would advise to keep present language as developers always want to take the low end, but the single word "must" could be changed to "should" . He added 400,000 sq. ft. is needed to break even on TIF. In response to Mayor Maxwell's comment on "green space," Mr. Kerrigan said it forced structured parking. Mr. hunan said the option price of $10,739,072.61 is based on the current value of $8 million plus increased value; Attorney Dieke added it is an option, the city could refuse to pay that. Mayor Maxwell asked about lost tax revenue if the present building is demolished. Mr. Kerrigan said almost all the tax value is on the land; the danger of the building being utilized for other uses would not be an issue then. SuperValu would save upkeep costs so it would be advantageous to both parties. Mr. Inman noted there would still be enough TIF for the intersection work. Regarding interim use, Mr. Kerrigan noted that as long as it has been so used within the past year they can keep nonconforming uses and SuperValu could build such a case. General Consensus: The Council wants the agreement to indicate the scope of a project they are willing to provide assistance for. The present building should be demolished as soon as possible. Interim uses are okay as long as they are low rise, storage, causing no dust or noise to bother residents, and not retail. HCA Quarterly Report Ms. Hanna-Bibus noted this year totals are since July 1. While memberships are up, October 22, 2002 Page 2 funding is a problem. McKnight is not funding this year; she feels it is because she is a city employee and they feel that blurs nonprofit parameters. Mr. Mielke added the issue of transferring her salary to HCA needs to be looked into but there are issues such as benefits to be considered. Grant money is important but cannot be allowed to run HCA. Ms. Matthison-Hance said a challenge grant for new memberships has been given. Ms. Hanna-Bibus said three grants have been received and three more are pending. If funding is available The Edge will be started in the spring to attract young adults and would be a coffeehouse format for emerging performers in comedy, music, spoken word, dance, etc. There is nothing like that format in the western suburbs. Art commission income has risen sharply, from $337.50 last year to $1,609.50 already this year. Mr. Brausen commented he feels HCA is really improving and is pleased with what they are doing. Facilities Project Update Mr. O'Shea noted the intersection is now aligned and the fire station has been moved 10-20 feet. Mr. Mielke noted all the school goals have been met: child drop off separate from bus, green space, intersection needs. Mr. Oertel noted Public Works mechanics would be able to service vehicles without going outside and washed vehicles could go directly to parking stalls. Mr. Jordan showed offices and apparatus storage would be above fire engine bays. Most of the station could be locked off so that a large meeting room would be available for community use. The training tower would allow on-site training in balcony rescue, window rescue, rappeling, etc. It could have another floor added in the future; present planned height is 35 feet. Mr. O'Shea showed a small addition would be added to the front of the present fire building for the police. Chief Reid noted the extra height of the present bays would be used to run computer wiring, etc. above a false ceiling. Mr. Mielke noted that while no one is getting all they want, everyone agrees they are getting what they need, that the present plan is workable for them all. Mr. Benson noted the cost estimate is $13,669,800 but is very rough as it is based on conceptual drawings. Mr. Mielke noted this is higher than the cost wanted by the Council and would increase bond costs; either cuts must be found or funding plans must be worked on. Ms. Jensen asked that Council members be given copies of all the plans to help them evaluate options, and that a "log" of proposed cuts be kept to show the public where reductions were made. Mr. Mielke said plats will go to the school November 7; neighborhood meetings will be held November 13. Mr. O'Shea said CUP application would begin early November. Ms. Yager said her bond estimates had been based on $10.7 million; this would be a $12.4 bond issue, with $2.2 for the police later. Bond issuance may have to wait till late November or December. Mr. Benson said he would separate police from fire/public works to help her with bond figures. Ms. Hartfiel was given the go-ahead to do publicity in Highlights and to tell the school to go ahead with their publicity. Fire and Police 2003 Budgets Fire Budget: Chief Beckering said other than trimming travel and conference expenses, any budget cuts he could make would be salaries, which would curtail responses. A $16,000 cut if long-term would cut out medical responses, which would impact police, and could mean only the county would respond, and that can take ten minutes. Police Chief Reid said they are already calling fire when they cannot respond so they could not take over that area from fire. Ms. Johnson asked if contracting fire inspections out would help; Chief Beckering said he would need to know October 22, 2002 Page 3 exactly what inspections would be hired out so he could check into it. He added the Fire Marshal's biggest responsibility is public education. Presently they answer 500-700 calls a year, with a 70/30 ration for fire and medical. He doesn't foresee major changes in those figures. Police: Chief Reid noted his force answered 15,746 calls in so far in 2002, which means 520 calls per officer. Minneapolis officers answer 436. The radio system fails every month. He needs another officer to cover calls. He would need 4-5 more to have his men return to 8 hour shifts. While $18,754.98 in grants came in this year, with $5,077 more coming to be used for ballistic vests, most grants are disappearing since 9/11 with the shift to anti-terrorism funding. To reduce his budget he would need to cut administration, and they are already 3 months behind in their job load. A future problem is that Microsoft is starting a timed license program in which they demand access to all programs at all times. This raises security and legal issues for the police. If the police are forced to change to Lenox it will be very expensive. Recruitment remains a problem though the civil service changes have helped; since February 2000 in a staff of 39 he has hired 17 people. The drug task force has had heavy use. Repeat locations keep getting attention, he said Capt. Liddy has put a lot of effort there. Other Mr. Mielke said Mayor Maxwell, Police Chief Reid and he are meeting with Hobby Acres on traffic issues. A notice has been sent to businesses around the Cornerstone development on work to come, but the Council can expect complaints. The Depot has received a $50,000 federal grant for juvenile delinquency work which will go for teen center operation. The school levy money will go to the business side for their program. Ms. Johnson moved adjournment; Mr. Brausen seconded. Meeting adjourned at 10:35 p.m. Kasey Kester, Secretary ATTEST: Eug e J. axwell, Mayor