05-11-2010 WSPage 1
MINUTES OF THE CITY COUNCIL WORK SESSION
Raspberry Room
Tuesday, May 11, 2010
Mayor Maxwell called the meeting to order at 6:32 pm. Present were Mayor Maxwell and
Council members Kristi Halverson, Rick Brausen, Cheryl Youakim, Bruce Rowan, Hopkins City
Manager Rick Getschow, Director of Planning & Economic Development Kersten Elverum,
Community Development Coordinator Tara Beard, Patricia Fitzgerald from Hennepin
County, Ehlers & Associates Financial Advisor Stacie Kvilvang, Liquor Store
Owners /Employee's from MGM Liquors- Bob Cavan, Dan Pertile, and Jack Lammers; The
Liquor Store and More -Roy Nguyen; Leamans- Jim Mason; Richards Liquor- Onkar and
Sarolul Singh; and Mac's Liquor - Sue and Dave McCarville.
DISCUSSION OF OFF - SALE LIQUOR HOURS:
The City has been approached by several off -sale liquor licensees regarding changing the
closing time for off -sale liquor sales.
Currently off -sale liquor establishments must close by 8:00 p.m., Monday through Thursday
and 10:00 p.m. Friday and Saturday.
State law allows off -sale liquor establishments to remain open until 10:00 p.m. Monday
through Saturday. However, state law also allows municipalities to further limit the hours of
sales.
Minnetonka and St. Louis Park allow off -sale liquor establishments to remain open past 8:00
p.m. Edina and Eden Prairie have municipal liquor stores which have the same hours as
Hopkins.
Closing hours in Minnetonka and St. Louis Park vary. Texas Tonka Liquor (Mtka Blvd and
Texas) is open until 10:00 p.m. during the week. US Liquor, Trader Joe's, Pairings and Vintage
Liquor (Hwy 7 and Texas Ave) are open until 9:00 p.m. Glen Lake Wine and Spirits, Sundial
Wine and Spirits (Shady Oak Road), and Knollwood Liquor close at 8:00 p.m.
The Liquor store owners and employee's shared their thoughts and opinions with the
Council. Council needs more time to discuss this issue.
Council also requested that city staff conduct further research with neighboring
communities that have moved their hours from 8:00 to 10:00 closing on weekdays.
DISCUSSION OF 8TH AVENUE REDEVELOPMENT:
Ms. Elverum shared some background information regarding the 8th Avenue
redevelopment. The City of Hopkins has secured an option on the Park Nicollet site that runs
through June, with the ability to extend through August. The option establishes the purchase
price of the property at $2 million. One million in funding has been awarded through the
LAAND program, and an additional $500,000 in Hennepin County TOD funds has been
applied for.
Ms. Elverum stated that staff has also been in discussions with Chris Dahl, the owner of the
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Johnson Building at 8th Avenue and Excelsior Boulevard. Mr. Dahl has indicated an interest
in selling in order to facilitate the redevelopment of this site.
Ms. Elverum stated that staff will continue to discuss the terms of the various funding sources,
as well as our ability to carry the properties until a developer is selected and financing
secured.
Ms. Elverum stated that staff has met with six developers to discuss the two sites and the
City's overall redevelopment goals. The feedback has been helpful. Generally speaking,
current and near -term markets for rental housing and retail would likely allow for
redevelopment of one or both of the sites. Owner - occupied and office markets are very
weak, and financing is extremely hard to secure.
Based on market realities and Council input, it is hoped that a shared vision for the sites
emerge to guide the developer selection process.
Ms. Elverum stated that she and her staff interviewed with six different developers; Brent
Rogers with Greco Development, Mark Moorhouse with Dominium, Gary Dreher with Told
Development, Tanya Bell with Wellington, Jim Winkels with Amcon and Colleen Carey with
The Cornerstone Group.
Ms. Elverum stated that the discussion was about:
• Two sites - Park Nicollet & Johnson Building
• City -owned land (2 Street South)
• Station Area Plans - "Pedestrian seductive"
• Density 4 - 6 stories
• Use - housing (20% affordable for LAAND funds), Retail along 8th (office /hotel).
Ms. Elverum stated that there are three alternatives to look at.
1. The City could acquire either Park Nicollet or the Johnson Building using LAAND and
TOD funds. She stated that HRA can finance the balance and carry for two or more
years.
2. The City could attempt to package properties under an RFP with the Johnson
Building owner's consent (or Park Nicollet) realizing that the.City would likely see no
proposals for owner - occupied housing at this time.
3. The City could elect not to utilize LAAND /TOD funds and let market drive with some
control though zoning and perhaps financial incentives (TIF /Abatement.
Ms. Elverum stated that the vision for each site is:
• Housing - senior rental, family rental, mixed 1, 2 & 3's (owner occupied desired).
• Commercial - retail restaurant, hotel, reuse of building on interim basis and office.
This item will return to the Council in June and /or July.
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OTHER:
• City Manager Getschow stated that Mainstreet Days is on May 22 He would
like to know which Council member can attend at the city booth.
• City Manager Getschow gave an update on the Assessor's open book meeting
that was held on Tuesday, May 4th.
• City Manager Getschow stated that Monday, May 17th is the start of the Step to It
Challenge.
On a motion by Youakim, and second by Brausen, the meeting was adjourned at 9:25 pm.
Debbie Sperling, Secretary
ATTEST:
Eugene . M
well, Eug Mayor
CITY COUNCIL