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01-07-2022 City Council and Staff Retreat Minutes HOPKINS CITY COUNCIL CITY COUNCIL AND STAFF RETREAT PROCEEDINGS FRIDAY, JANUARY 7 ATTENDANCE Present for the Hopkins City Council and Staff Retreat 2022 were the following: Mayor Hanlon, Council Members Balan, Beck, Garrido and Hunke, City Manager Mornson, Assistant City Manager Lenz, Finance Director Bishop, Public Works Director Stanley, Police Chief Johnson, Fire Chief Specken, Planning and Development Director Elverum, Recreation Director O'Dea, City Clerk Domeier and Chad Weinstein with Ethical Leaders in Action, LLC. Welcome Mayor Hanlon welcomed the team to the retreat. City Manager Mornson provided information on the proposed agenda. City Manager Mornson suggested adding the State of the City Event to the Parking Lot. Opening Exercise: "Living Graphs." Facilitator Chad Weinstein directed participants to move about an in an open area forming "graphs" that depict the areas of commonality and difference among council and staff. Understanding our Strengths Assistant City Manager Ari Lenz shared the findings from the StrengthsFinder instrument taken by City leaders and discuss implications of these findings for teamwork and collaboration. Development Update and Discussion Planning and Economic Development Director Kersten Elverum shared information on development opportunities in 2022-2025 looking for questions and general direction on key issues. Top Issues included: tax-base growth; preservation of NOAH; maintaining historic context of Mainstreet; creation of affordable commercial space/housing; equity and opportunities for BIPOC community; and climate change impacts/heat island effects. Mainstreet Development: The City Council supported maintaining a grocery store on Mainstreet. Discussion ensued about the significant market pressure in the core for redevelopment. The Artery: Discussion included planning, preparation, teamwork, awards and future opportunities with the SWLRT. Staff talked about the project requiring patience by elected officials once the vision was established. Investment in biking was also discussed as Hopkins has become a destination with the bike trails. Additional discussion ensued regarding the cost benefit for community art initiatives. Staff shared the costs and funding for the various art programs. The Think Hopkins campaign was also discussed regarding past success and moving forward on how to make it better. Parking Lot: Think Hopkins Marketing 43 Hoops site: The site is currently owned by Hennepin County Regional Rail Authority. Staff commented that Hennepin County is waiting for the perfect project that would be done in coordination with the city. HOPKINS CITY COUNCIL CITY COUNCIL AND STAFF RETREAT PROCEEDINGS FRIDAY, JANUARY 7 Blake Station Area: Discussion was held about the use of TIF funds and City communication strategies when public funds are used. Staff shared the legal obligations and liability for when businesses are relocated. Discussion on the Trilogy project was held related to the land owner, tenant rights, non-compete agreements and the month to month leases that all played a factor in the outcome for business owners. Value statement: When a TIF District is created the City becomes a stakeholder. Be attentive to all stakeholders in developing terms for the TIF District to ensure fairness. 907 Mainstreet (Albert Pike Lodge): Discussion was held about the significant funds needed for the potential Hopkins History. Funding options and conditions of the agreement were discussed. City Manager Mornson suggested this topic be added to the Parking Lot and discussed at a future work session. Parking Lot: City-Owned Property in Downtown (907 Mainstreet) 501 Mainstreet, 525 Mainstreet and 15 6th Avenue North: The property owner has asked for City participation potentially in the form of TIF for redevelopment. Staff shared the redevelopment concept noting the zoning code issues. Concerns were shared about public funding for the project, selling the property for less that its market value and density. There was not a lot of support for TIF or the density with the proposed project. Lot 800: Staff shared recent discussion for potential opportunities on the public parking space which is currently tax-exempt. Discussion was held about the proposed opportunities as well as creating an RFP to find the best fit for the parcel while achieving a public benefit. Staff will develop the RFP framework for Council review and discussion. Theater Site: Staff shared the development proposal which now includes more density than the previous proposal. Parking is still an issue and a request has been made to use the public ramp. The projected would likely require a PUD and a City subsidy. Discussion about the parking implications, zoning, building facade and subsidies was held. In general, Council did not support using public parking, proposed facade or providing a subsidy. Shady Oak Station Area: Staff proposed meeting with Minnetonka City Council and craft discussions going forward. Safety concerns and concerns in general were shared with the amount of parking proposed. Council supported development pads and developers having dedicated parking at the site. Staff shared their top issues as beginning of presentation and asked Council for their top issues. Responses included: completing the zoning code; tax base growth; reaching out to the Somali community; and Hopkins becoming a destination city. HOPKINS CITY COUNCIL CITY COUNCIL AND STAFF RETREAT PROCEEDINGS FRIDAY, JANUARY 7 Finance Update and Discussion Finance Director Nick Bishop summarized key points related to the City's Budget, the planned 2023 Budget Preparation Schedule and Financial Projection. He also explained the additional tax dollars available after the TIF Districts are decertified. Discussion was centered around the long term plans for paying off debt. Concerns were shared about the constant tax rate increases since 2015 noting that the City has been more responsive as of late to the increases. Council discussed cost recovery on services and comparing the taxes per capita compared to peer cities. It was noted that as long as street reconstruction projects occur that bonding and debt will occur. The street reconstruction plan is set to wrap up in 2030. Strategic Vision and Priorities Exercise City Manager Mornson presented previous strategic priorities and progress toward them. He added that there is goals base but need new priorities for 2022. Goals discussion included the following: Business Dev Support/Promote Hopkins • Zoning Code • Think Hopkins Launch/new website • Invest in marketing strategy • Asset: small commercial spaces available Climate Related • Action Plan • Emergency Declaration Sustainability • Electric Scooters • Multimodal transportations Parking Lot: Work Session on Sustainability initiatives including a Climate Action Plan True Inclusion: • Message to "Hard to Reach" Need real "hows" Build community— relationships Respect wishes Listen Provide food Inform renters not just property owners HOPKINS CITY COUNCIL CITY COUNCIL AND STAFF RETREAT PROCEEDINGS FRIDAY, JANUARY 7 Affordability • Increase housing • Strategies for offering full range of housing • Tax management • Debt management Parking Lot: Work Session Affordable Housing targets Public Safety • Crime — Metro wide issues • Engage with prosecutors • Regional approaches • Staff and resource • Demand for services • Increased population and changing demographics Parking Lot: Reduce art center debt and budget as necessary Parking Lot: Debt Payoff Discussion The Council consensus was to delay holding the Taste of Hopkins/State of the City event. Takeaway from Retreat that is valuable for you as a guide for the City Staff and Council shared their takeaways from the discussion. All found the retreat to be valuable in relationship building and setting framework for discussions in 2022. Respectfully Submitted, Amy Domeier, City Clerk