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03-08-05 JOINT MTGSTAFF SUMMARY CITY OF MINNETONKA SPECIAL JOINT MEETING HOPKINS CITY COUNCIL AND MINNETONKA CITY COUNCIL TUESDAY, MARCH 8, 2005 PAGE 1 Council Present: Hopkins Council members Rick Brausen, Diane Johnson, Bruce Rowan, Jay Thompson, and Mayor Gene Maxwell. Minnetonka Council members Jan Callison, Bob Ellingson, Terry Schneider, AI Thomas, Tony Wagner, Brad Wiersum and Mayor Karen Anderson Staff: John Gunyou, Geralyn Barone, Ron Rankin, Lee Gustafson, Elise Souders, Hopkins City Manager Rick Getschow, Hopkins Economic Development Director Jim Kerrigan, and Hopkins Public Works Director Steve Stadler Others: Craig Twinem and Brent Lindgren of Hennepin County Transportation Department, Larry Blackstad of Hennepin County Community Works, County Commissioner Linda Koblick, Mark Koegler of Hoisington-Koegler, EDA President Peter St. Peter, EDA member Dave Larson, and Eleanor Berscheit Mayor Anderson called the meeting to order at 8:02 p.m. 1. Joint discussion regarding Shady Oak Rd. between Excelsior Blvd. and • Hwy. 7 Anderson began by reviewing the expectations of the evening's meeting. She said staff was asking for comments and reactions before the concepts go to the public; no decisions need to be made tonight. Anderson said there is no planned public input tonight, but many other opportunities will be available for public input throughout the process. She stated the Hopkins and Minnetonka City Councils met jointly on December 14 regarding this same topic, and at the meeting both councils agreed the road needs to be four lanes, public input is essential, and the councils will continue to meet jointly. Anderson said the road reconstruction is scheduled for 2009 and 2010, but that this is not a normal road reconstruction project. She said the roadway divides and joins the cities, so it is important for both cities to work together, and added there is the opportunity to do more than just rebuild the road. Mayor Maxwell reiterated it is important for the two cities to work together. He also noted it is important to look at all of the options and designs -important not only for the city, but also for the people along the corridor. Gustafson recapped the February 8 public kick-off meeting, and said it exceeded expectations. He said there were a lot of comments and questions, including issues like corridor safety, drainage, the Highway 7 intersection, and the need for acquisition. Gustafson introduced Mark Koegler, and explained that he will give the presentation for the evening. STAFF SUMMARY CITY OF MINNETONKA SPECIAL JOINT MEETING HOPKINS CITY COUNCIL AND MINNETONKA CITY COUNCIL TUESDAY, MARCH 8, 2005 PAGE 2 Koegler began by reviewing the planning process, highlighting meetings with~the City Councils and with the public. He said the focus now is to assess the alignment alternatives to provide input for making a decision later. Koegler went through a map showing opportunities and constraints along the corridor. He said at the February 8 kick-off meeting, and said that many of the same issues were brought up by the residents. He said all of the concepts are attempts to improve the roadway, because Hennepin County sees this project as a long-term investment. Koegler reviewed concept 1 B, focusing on the roadway north of the duck pond and showing balanced impacts of the roadway expansion. He explained that on the map, "NC" is meant to show properties that will become non-conforming to the existing zoning ordinance because of the alignment; however, they do not necessarily need to be taken for the project. Koegler reviewed the properties that will need to be completely taken for the alignment and other properties that will be severely impacted. Koegler gave an overview of concept 2, showing the roadway shifted to the east, in the area north of the pond. He explained with this concept there will be acquisitions on the eastern side, which can also create a buffer for the remaining homes. Koegler said a • secondary street and a green island can be created on the western side. With this concept, he said, driveways are removed, and improvements are made to the angle at the Highway 7 intersection. Koegler went through concept 3, showing the roadway shifted to the west, north of the pond. He said there are no acquisitions needed on the eastern side; however, there will need to be acquisitions on the western side. He added that the angle at the Highway 7 intersection will not be improved with this concept. Koegler reviewed concept 1A, showing balanced impacts of the roadway expansion south of the pond. He said this concept has more impacts on the western side. Koegler reminded the councils that the businesses on the western side currently have no curb and free access, but with the road project, there were will be designated access points and curbs. He also explained the left leg of Mainstreet, and said there is a potential to make this area a gateway to the City of Hopkins. Koegler went over concept 4, focusing on the roadway south of the pond and showing the roadway shifted to the west. Koegler said, at the kick off meeting, Bradford Road residents brought up a concern of cut-through traffic in their neighborhood. He said one option is to put a roadway behind the westerly businesses up to Mainstreet and close Bradford Road at Shady Oak Road. This option is not shown on any of the concepts. Mayor Anderson asked for comments. STAFF SUMMARY CITY OF MINNETONKA SPECIAL JOINT MEETING • HOPKINS CITY COUNCIL AND MINNETONKA CITY COUNCIL TUESDAY, MARCH 8, 2005 PAGE 3 Schneider said for the north side concept 2 has a better overall alignment, but wondered what the impacts to the wetlands are. Gustafson said possible impacts will be reviewed, and the county may consider wetland banking. Schneider asked if the new road alignment will include the existing billboard at the Highway 7 intersection. Gustafson said that was unknown at this point. Callison said the Highway 7 intersection needs to be addressed. Gustafson said there are three options: the easterly alignment improves the skew, but the other two alignments keep the intersection at a status quo. Callison asked what the turning affect would be with fixing the angle at Highway 7. Gustafson replied that traffic would flow more smoothly through a fully signalized intersection, and that bigger trucks would be able make turns more easily. Anderson asked if one concept costs more than another. Gustafson answered that when more properties are impacted by the roadway, costs increase. Anderson inquired if the homes on the eastern side are mainly owner-occupied or rental properties. Maxwell said the majority are owner-occupied. Maxwell asked if the service road shown on concept 2 will be accessed from Lake Street Extension. Koegler replied it will be. Maxwell asked how the homes along Park Road will be accessed. Koegler said 2nd Street will still be able to access Shady Oak Road, but 3~d Street will be a cul-de-sac with no access to Shady Oak Road. Anderson pointed out if the roadway is shifted to the west the homes on the east side of the roadway will still have driveways off Shady Oak Road. Gustafson said with concept 2, there can be left turn lanes to access Lake Street Extension and 2nd Street, but if the driveways remain, there will be no left turn lanes. Maxwell said the goal of the roadway project is to improve traffic flow, and unless the angle at the Highway 7 intersection is improved, the roadway will still continue to have problems. Anderson said concept 2 is the only concept that begins to address this problem. Gustafson said additional work will be done later to see exactly how the intersection will work with the different concepts. Thomas asked how much the city may have to contribute toward the project. Gustafson said the county's policy is a 50-50 split between the county and the city for right of way acquisition, but if properties are taken because of transportation, transportation funds can be used. Gustafson added the properties that need to be removed for future redevelopment will have to use other funds for acquisition. Thomas requested that as the process continues, dollar amounts the city will be asked to contribute be shown. STAFF SUMMARY CITY OF MINNETONKA SPECIAL JOINT MEETING HOPKINS CITY COUNCIL AND MINNETONKA CITY COUNCIL TUESDAY, MARCH 8, 2005 PAGE 4 Thompson asked who pays for the additional cost to have a total acquisition of the properties that are severely affected, but not completely taken as part of the roadway project. Blackstad said Hennepin County Community Works can get involved to help buy properties, since the department's purpose is to add investments to the community. Anderson commented with concept 2, there is a buffer on both sides of the roadway for the neighborhoods, and it also creates a gateway. Thompson said the remaining homes between Park Road and Shady Oak Road could be acquired for redevelopment. Brausen said he is concerned about putting properties into a nonconforming status and not addressing them. Koegler asked the Hopkins Council if the entire area between Shady Oak Road, Park Road, 3`d Street, and 2"d Street should be looked at. Maxwell said it makes sense to do so, but to remember that potential zoning classifications should not interfere with the • rest of the neighborhood. Brausen said to explore the options, because it may not make financial sense to have only a buffer. Johnson agreed the entire area should be explored. Rowan also agreed, and the owners of the nonconforming lots should have a buy out option. Thompson said the Highway 7 intersection needs to be made better. Callison asked if the road can be adjusted further east to improve the intersection even more. Wiersum said concept 2 makes sense and he prefers to see a total taking of a home, rather than one so severely impacted it does not function. Schneider said concepts 1 B and 3 are short term fixes, and should be presented to the public as alternatives, but that concept 2 makes the most sense. Gunyou said there seems to be agreement by both councils that concept 2 is preferred, and asked if concepts 1 B and 3 should be dropped at this point. Gustafson suggested that all three concepts should be shown to the public, along with the comments and concerns of the two councils. Anderson said the public input process is good, and believes the public will come to the same conclusion that concept 2 is the best option. Brausen said it is good to leave all concepts in place now, but concentrate on concept 2. Maxwell agreed to leave all the options, but state that concept 2 is preferred. Rowan said when it is presented to the public it can be prefaced by the fact that an overriding concern is to fix the intersection, and concept 2 provides the best fix. Ellingson added concept 2 improves the intersection and gets rid of driveways. STAFF SUMMARY CITY OF MINNETONKA SPECIAL JOINT MEETING HOPKINS CITY COUNCIL AND MINNETONKA CITY COUNCIL TUESDAY, MARCH 8, 2005 PAGE 5 Wagner asked if the western side on concept 2 should show redevelopment. Anderson said concept 2 gives Minnetonka residents a buffer, and should not be looked at for redevelopment. Schneider added the area should not be subsidized to encourage redevelop, but should happen on its own. Koegler reviewed concepts 1A and 4 for the south half of the roadway. Anderson asked if there is a viable way to swing the roadway to the east. Koegler said no. In response to Koegler's comments on the cut-through traffic on Bradford Road and the possibility of adding a road up to a west leg of Mainstreet, Anderson said that alternative provided a good opportunity for redevelopment on the western side. Maxwell asked if truck traffic will create problems for the homes behind the businesses. Gustafson said the homes are separated by a wetland, but buffering will need to take place. Anderson said any development that goes on the western side should not have a typical back side look. Gustafson said a development similar to Marketplace Lofts in Hopkins is an example of what could be done. • Schneider said he did not prefer one southern alternative over another at this point. Maxwell asked if a goal is to keep businesses in the area. Koegler said for similar projects that has been a goal. Johnson asked if there is a way to do phased development to keep businesses open and in the same area. Blackstad said redevelopment may begin before the roadway reconstruction. Kerrigan said he has gotten a mixed reaction from businesses about staying in the area. He said the county deals with property owners, but needs to also consider tenants. Some tenants are in owner-occupied buildings, which are paid off, and some tenants have low rents. He said a concern will be the increase in the cost of rents, and this could be an area where Hennepin County Community Works helps. Schneider said he has the same concern about possible rent increases. He suggested that the analysis determine which businesses should be saved, since it might not be possible to save all businesses. Brausen said all businesses are important community assets. Anderson agreed, and said she was concerned about reaching the determination of who should stay. Thomas said he does not favor one concept or another, and both should be taken through the process. Callison agreed that the cities should keep both options on the table. Callison asked how expansive the project limits are. Gustafson said the mailing area is much larger than normal. STAFF SUMMARY CITY OF MINNETONKA SPECIAL JOINT MEETING HOPKINS CITY COUNCIL AND MINNETONKA CITY COUNCIL TUESDAY, MARCH 8, 2005 PAGE 6 Anderson said she prefers concept 1A, because there are more redevelopment options. Koegler asked for feedback on additional areas to be added in the analysis. Anderson suggested that the analysis look at the area north of Mainstreet and west of Shady Oak Road. Callison concurred. Schneider agreed, and requested that the analysis look at different types of development. Koegler said he anticipates having multiple scenarios. Gunyou asked if the road behind the businesses from Bradford Road to Mainstreet could happen on both concepts. Koegler said it will not work if the road is pushed west. Johnson said to expand the analysis to include all of the homes along 21St Avenue. Rowan and Thompson agreed. Brausen asked with concept 1A how far the roadway would be from The Oaks. Koegler said he did not know yet. Maxwell said as the process continues, the analysis should look at possible zoning classifications. Schneider said this area may warrant design standards. Brausen commented there are design standards on Mainstreet. Koegler asked if the businesses on the eastern side, south of The Oaks, should be looked at. Maxwell replied the market~may take care of that. Schneider said the east side will eventually redevelop, but the focus should be on the west side. Koegler added the western side may set a precedent for the eastern side. Maxwell asked if there should be any discussion on the city boundary issue. Anderson said she has no strong feelings, but it could become an issue in the future with redevelopment. Maxwell said the councils could consider this issue at a future meeting. Gustafson asked if all of the residential properties between Park Road, Shady Oak Road, 3~d Street, and 2"d Street, should be shown in a possible redevelopment area. Brausen said it will evolve eventually to show the entire area, so it should be done now Koegler reviewed what will happen at the March 28 and 29 meetings. He said the same information will be presented at both meetings, and the comments and financial modeling will be brought back to the councils prior to the next public meeting. Brausen asked where the meetings will be held. Koegler said they will be at the Hopkins Fire Station. Gunyou asked about the future meeting schedule. Koegler said staff will be working together to set the remaining dates. STAFF SUMMARY CITY OF MINNETONKA SPECIAL JOINT MEETING HOPKINS CITY COUNCIL AND MINNETONKA CITY COUNCIL TUESDAY, MARCH 8, 2005, PAGE 7 Thompson asked if the homes that are shown to be taken, non-conforming, or are in a potential area for redevelopment on any of these concepts were being notified specifically about their potential status. Gustafson said that in the notice for the March 28 and 29 meetings, people would be encouraged to attend because they could be potentially affected if they live within so many feet of the corridor. Schneider said there should be maps included, because the language may not be clear enough. Gustafson said the newsletter can show a map with a series of dashed lines. 2. Adjournment The meeting adjourned at 9:57 p.m. Respectfully submitted, Kathleen Magrew City Clerk ~~