07-30-02 WSJuly 30, 2002
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MINUTES
-CITY C®UNCII. W®RK SESSI®N -July 30, 2002
A work session of the Hopkins City Council was held at 6:30 p.m. on July 30, 2002, at the
City Hall. Council members present were Mayor Maxwell and Council members Brausen, Jensen,
Johnson and Rowan. City personnel present were City Manager Mielke, Finance Director Yager
and Economic Development Director Kerrigan. Also present were Sid Inman and Bob Dieke.
Final Review of Equipment Replacement Plan
Ms. Yager said the levy for this fund can be held at the same level this year largely due to
the fire department's decision to refurbish the aerial truck instead of replacing it, which saves the
city $387,000 in actual cost. It will be refurbished in 2005, then should be good for another 20
years.
The Duty Chief vehicle scheduled for replacement in 2003 has been pushed out to 2005
with a change to an SUV or truck. Over a period of 20 years, this would add a cost of $50,000,
based on a cost of $40,000 in 2005. Mr. Mielke added the fire chief had planned to attend the
work session to explain the need, but a firefighter's wife had died. A duty chief arrives first at a
fire scene to set it up for the crew. In the past old police cars have been used. The fire chief says
more room is needed for emergency equipment, and sometimes room is needed for more
passengers. The vehicle does go home with the duty chief.
Mr. Brausen said concrete numbers would be helpful. Ms. Johnson said the wording of the
letter from the fire chief makes her wonder if it would be used for road trips; she would be very
much against that. Mr. Mielke said he felt the only time it would go out of town would be on a
mutual aid-fire call. Ms. Yager said she is not sure how vehicle rotation would work as in the past
each car was moved down in turn from the chief to the duty chief and then to Mr. Magdal, rotating
every 5 years. Ms. Jensen said she is concerned about the morale of other departments who are
going without new equipment so that the fire department can have a new building.
Mayor Maxwell noted telephone system replacement keeps coming up. Mr. Mielke said the
software is 12 years old. It is a software problem rather than an equipment problem. Trying to
determine if new software is the best purchase at any given time is an ongoing question.
General Consensus: The fire department SUV is a 2005 proposal and should come back
next year. For this year's proposal it should be switched back to a regular car.
Ms. Yager will bring the plan to the Council August 7 for approval.
Supervalu North Annex Redevelopment Update
Economic Development Director Kerrigan said Supervalu has come up with a new proposal
for the option agreement. As presently defined the option period would begin on November 24 for
18 months and an appraisal process would establish value. Supervalu would like to delay the
option process 2-3 years while they aggressively market the North Annex property. If they cannot
sell it, the City could still enter into an option agreement. Staff sees this as positive for Hopkins.
Supervalu would like Hopkins to work with them to extend the term of the TIF district,
which now ends Apri12004. This could be accomplished by having the legislature agree in 2003
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or, if that does not happen, forming a new TIF district for just the North Annex property is the
next best option. Supervalu would provide land for the Monroe intersection at no cost on the
north side and for "fair cost" on the south side. He later noted that the north side is valued at
$3.00 per foot and the south side at $3.50. Supervalu would not pursue tax abatement for the
perishable warehouse. Supervalu wants to demolish the North Annex building after the TIF district
work (middle of 2003 at earliest); the City would reimburse for the cost of demolition from the
increments on the distribution facility. Those amounts left unpaid would be given at the time of
development. Rather than continuing with appraisals, value would be what Supervalu has on the
books: $10,739,072.61. He noted it was valued at $12,300,000 for the Medica deal. IfCour~1
agrees, staff would like to stop the appraisal process and redo the agreement.
As to the 3-acre site, Supervalu is willing to give a long lease. City staff would like to
have ownership and full control. $1.85 million would be subordinated to everything else to make
sure money is available for the project. Additional off-site improvements would include such
things as stoplights and upgrading water service to the site. Mr. Mielke said Supervalu is
concerned that if they cannot sell the property, can they claim the value it has on the books.
Demolition would increase marketability, but they have been told it would lower the TIF. Mr.
Kerrigan added 90% of the tax-assessed value is in the land. Answering Ms. Jensen, Mr. Mielke
said the only way they get paid back for demolition costs is if there is a project and a TIF district.
Mr. Kerrigan added a small amount might come off from the distribution facility.
Mr. Inman said if they aggressively market and don't sell the property, he doubts Hopkins
would want to purchase it. Mr. Kerrigan said demolishment would ensure that new construction
would take place that the old building couldn't be sold for another use. Having the option become
effective later would give Hopkins more opportunities. One issue is how the land would be left
after demolition; asphalt may be left for dust control. Also there may be usage issues while they
wait for a buyer. Mr. Inman noted their tax base has to stay the same, even with the
demolishment. Answering Mayor Maxwell, he said extension of the TIF district would be better if
the legislature will agree; he says some legislators realize state actions have created some of
Hopkins' problems so he thinks this could happen. Overall, he likes the agreement.
General Consensus: Work should go ahead. Any agreement should include the guidelines
on acceptable projects the Council has insisted on. Interim usage of the bare land could include
screened storage of cars, etc. as long as it is at the back of the property, not by Excelsior Blvd.
Mr. Kerrigan should work on a letter of understanding that would delay commencement by 60
days to allow time to work out terms of the agreement. The agreement will be brought to the
Council. Appraisals should be stopped.
National Night Out
After discussion it was decided Council members would meet at City Hall at 5:00. Mayor
Maxwell will drive. Staff will prepare the trivia questions and cups as in previous years.
Other
Ms. Jensen asked about Hopkins Village Apartments. Mr. Mielke said inspection people
are working on it. Legislators have been contacted.
Mr. Brausen asked about the dog problem on 12"' Ave. Mr. Mielke said Elizabeth has
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been there twice and noticed no odors. Work is proceeding on an ordinance that would include
urine and animal waste as part of it. The dog owners are cooperating.
Mr. Mielke said Terry was approached about an off-sale liquor license. She explained the
fees and costs. There is no limit on how many can be in town. Is this something the Council
wants to pursue? Should the applicant be given feedback on Council response? After discussion,
consensus was the applicant could be told Council is "not excited" about the idea, but he has the
right to pursue it if he wishes. Staff should look into the possibility of a moratorium on liquor and
tobacco after the applicant has decided. Ms. Johnson said Jerre Miller should be consulted, and
asked if an application has ever been denied.
Mr. Mielke asked about Council feeling regarding the Southwest Corridor trails. All
agreed they feel "rail and trail" is okay. If the study shows it is good for Hopkins, they want to
support light rail. Mr. Mielke noted both St. Louis Park and Hopkins had kept the corridor in
mind and developed industry along it. Eden Prairie and Minnetonka allowed residential
development, which is causing their problems.
Mr. Brausen moved adjournment; Ms. Johnson seconded. Meeting adjourned at 8:45 p.m.
Kasey Kester, Secretary
ATTEST:
Eu e axwell, Mayor