10-23-07 WSOctober 23, 2007
Page 1
MINUTES
CITY COUNCIL WORK SESSION -October 23, 2007
A work session of the Hopkins City Council was called to order by Mayor Gene
Maxwell at 6:30 p.m. on October 23, 2007, at the Hopkins City Hall. Council members
Rick Brausen, Kristi Halverson, Bruce Rowan and Cheryl Youakim were present. City
personnel present were City Manager Rick Getschow, Director of Planning Kersten
Elverum, Community Development Coordinator Tara Beard, City Engineer John
Bradford and Public Works Director Steve Stadler. Also present were City Attorney Bob
Dieke; Sid Inman and Rebecca Kurtz of Ehlers & Associates; Kelly Doran and Scott
Anderson of Doran Companies; Lew Pratt, Daryl Gemar, and Ben Shardlow of Pratt
Homes; and Todd Young of KKE.
Block 64
Director of Planning Kersten Elverum said a critical point has been reached in the
Block 64 project. Steve Flanagan of GPS notified the city in August he cannot get the
financing needed. Doran Companies and Pratt Homes have indicated an interest in taking
over the project.
Mr. Doran gave a power point presentation showing projects he and Mr. Pratt
have done together in St. Anthony and New Brighton, as well as preliminary sketches of
what they think is possible with the Block 64 area. He and Mr. Pratt wish to construct a
complex that would start as 200-2301uxury rentals, then convert to owner-occupied units,
as they have successfully done before. They would keep the present building, but
refurbish it to complement the proposed buildings. Parking would be underground.
Retail establishments would be on the first floor fronting Mainstreet; tall windows would
"open" the building. He believes construction could start as early as the first half of
2008; construction would take one year. The whole complex would be built at once. He
stressed he and Mr. Pratt do not want to compete at all with the Beard Company, with
whom they have met; but feel that the two projects would complement each other.
Mr. Pratt noted he has Builder License No. 1 in Minnesota. The New Brighton
project was a situation similar to Hopkins'. Answering Council members' questions, he
said the project was built in 2004; conversion to owner-occupied started in 2006. All
apartment leases are honored. Financing is available through FHA. During the
conversion process units are renovated; some occupants are moved for 30 days, others
stay in their apartments, some do the renovations themselves. Mr. Brausen commented
he likes the idea that they become owner-occupied. Answering Ms. Youakim, Mr. Doran
said Mainstreet buildings would have 4, maybe 5, stories. Timing of conversion to
owner-occupied would depend on market conditions. Another factor is the Beard
complex; they want him to succeed and do not want to slow his progress. Mr. Pratt noted
upscale apartments are in demand. In New Brighton 60% of the occupants are young,
first-time owners. Those studios have conversion prices starting at $120,000. Mr. Doran
noted this project would not have studio apartments; prices for rent would be around
$900-1000 for 1-bedroom, and a 2-bedroom with den unit would be about $1800. The
market would be people earning $30,000-100,000 per year. Cargill employees will want
upscale, nearby housing. He noted they do not know if the present building would be
conversion units as they have not been inside. Mr. Pratt noted the site is a "book-end
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location," across from a car dealership; however, the vibrancy of Mainstreet is a plus. He
feels their complex would be "a step above" anything Hopkins presently has for market
rate rental property. Answering Mayor Maxwell, Mr. Doran said the by-laws for the
complex as rental and as owner-occupied are different, but all are done beforehand. Mr.
Inman said TIF would be higher with rentals. The development agreement would be
assigned to the new developers, and then amended as needed. Answering Mr. Rowan,
Mr. Doran said he hopes those who had earnest money with Mr. Flanagan will go to the
Beard project. Mr. Pratt added he feels their project will actually help Beard sell their
units.
General Consensus was the Council liked the idea of rental to owner-occupied
units. Ms. Youakim expressed concern about a 5-story building on Mainstreet and feels
public education will be necessary. Mr. Doran said he would be happy to arrange a
Council tour of their completed projects. They will hold neighborhood meetings and get
resident input.
Council discussed the issues involved with the Rixman property. They have
placed a November 15 deadline on knowing if the city will purchase the property. Ms.
Elverum noted Mr. Doran feels he would know if the project is possible by February.
Mr. Inman noted there may be some concerns with the TIF as a rental to owner-occupied
complex, but it was done with the Oaks. General Consensus was to continue working to
acquire the property. All agreed they want to work with Messrs. Doran and Pratt.
2008 Budget, Enterprise Funds
City Engineer John Bradford presented spreadsheets showing how he redid the
water utility schedule to even out rate changes as the Council requested. He proposes a
$1.95/month increase in 2008, then $.50 for 2009 and $.30 for every year thereafter. He
feels this will cover the work on redundancy and emergency issues as discussed at earlier
sessions. He noted there will be a major project in 2017. He added his proposals include
borrowing from the storm sewer fund; these would be repaid by 2014. Answering Mayor
Maxwell, he said if heavy users would use less, the expansion project would not need to
be so large. Mr. Stadler noted lawn irrigation is the real issue, and suggested an
ordinance change on watering might be considered. Mr. Bradford noted 8,000 gal./mo. is
"average" use. Mayor Maxwell suggested putting something in the newsletter.
Mr. Bradford noted the sanitary sewer fund is not as healthy as the water utility,
largely due to Met Council treatment cost increases. They project 5-7% increases every
year for the foreseeable future. He based his spreadsheet on 6%, which results in a
$2.25/mo. rate increase for the average user. Mr. Getschow noted Met Council is a huge
expense, but still is less than it would be if Hopkins had to have its own treatment system.
Some borrowing will be done from the storm sewer fund, with repayment starting in
2016. Answering Ms. Youakim, Mr. Bradford said of the total $1.8 million budget, $1
million goes to the Met Council. Mr. Getschow said the much of the regional treatment
and infrastructure cost increase could be due to urban sprawl; Mr. Bradford noted 45,000
more residents come to the metro area each year.
Mr. Bradford noted the storm sewer fund is in excellent financial shape. A $.50
increase is planned in 2009, then no more increases ti119 years later.
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Mr. Stadler said the utility division will have two of its four workers retiring in
two years. For effective functioning, three experienced people are needed to cover
T vacations, etc. He asked for one new worker to be trained for 18 months before the
retirements; previous stand-by training has helped, but is not enough. This would not be
a permanent staff increase. The additional $20,000 needed would be divided among all
three funds. After the retirements, staff would return to the authorized four persons. Mr.
Bradford noted the real issue is for the new staff person to learn problem-solving, which
requires long training. Mr. Getschow noted that state requirements mandating more
locates have put a strain on staff. General Consensus was to moved ahead with the
staffing proposal.
Mr. Stadler said there will be a recycling fee increase in 2008 from $2.75 to
$3.25, noting the contract fee goes up each year. He noted yard waste/brush is the
biggest loss item. He feels Hopkins needs to get to a monthly fee for yard waste.
General Consenus was to evaluate options for this fund in 2008.
Special Assessments
Mr. Bradford said the assessment issue concerns only the portion of scheduled
improvements for a total reconstruct of Minnetonka Mills Road from 5th Avenue N. to
Highway 169. This is a State Aid street. It is proposed to treat this as 1St Street N. was
done, using front footage and side street assessments, based on 50% of construction cost
of a standard residential street. Mr. Stadler noted the cost on the north side is not capped.
Mr. Stadler noted a neighborhood meeting is scheduled for Nov. 9. Mr. Bradford added
this could be changed as this will be a short project. General discussion followed. Mr.
Stadler noted the project includes curb and gutter, and a trail. People are presently
walking on the road. He will see if other funding is available on those counts. The cap is
presently $72.88/ft. Mayor Maxwell suggested that it may be necessary to leave the levy
limit at its proposed figure and use the proposed additional cuts savings to offset the
higher assessments, then institute a permanent 1/4 - 1/2% portion of the levy for streets.
City Mnanager Getschow suggested earmarking franchise fees for these projects.
General Consensus was to postpone the neighborhood meeting and work on ways to
lower the assessments. This will come back to a future work session.
Other
Ms. Youakim asked about the rental license issue. Mr. Getschow said it will be
on an agenda in November or December as we move toward final approval.
She expressed appreciation to the police department for their discreet handling of
a situation at St. Joseph's church service.
Ms. Halverson asked about outside murals. Mayor Maxwell said staff should
check what was done for Boston Gardens and Bud's Music.
She asked about handicapped ramps. She should have people check with City
Hall about a building permit.
Mr. Brausen asked if the city could donate $2,000 to the Depot for some small
projects. Mayor Maxwell suggested looking into Park dedication funds. Mr. Getschow
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noted Three Rivers says they will be putting in $200,000. Mr. Brausen responded he
feels a small fund needs to be set aside for small jobs as they come up.
~' Mr. Getschow handed out the Park Board survey results.
He said an autism charter school had contacted the city, but the property they
mentioned is zoned as business park.
The U.S. Women's Open 2008 will be holding meetings in the Interlachen
neighborhood in November. The Council will have the draft of the park use agreement
with NBC in December.
On motion by Mr. Brausen and second by Mr. Rowan, the meeting adjourned at
10:35 p.m. on a vote of 5-0.
Kasey Kester, Secretary