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HomeMy WebLinkAbout05-09-11-R� DEN HILLS Approved: June 13, 2011 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING MAY 9, 2011 7:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor David Grant called to order the regular City Council meeting at 7:00 p.m. Present: Mayor David Grant, Councilmembers Brenda Holden, Fran Holmes, Ed Werner and Nicholas Tamble. Absent: None. Also present: City Administrator Patrick Klaers; City Attorney Jerry Filla; Community Development Director Jill Hutmacher; City Planner Meagan Beekman; and Recording Secretary Tina Borg. PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to Approve the Agenda as presented. The motion carried unanimously (5 -0). 2. PUBLIC INQUIRIES/INFORMATIONAL A. TCAAP and Stadium Proposal Community Development Director Jill Hutmacher stated Ramsey County continues to work with the Minnesota Vikings on a deal to develop a stadium on the TCAAP site. It has been reported that a deal is imminent, and the County, legislative leaders, and the team are discussing funding for transportation improvements. Hennepin County has publicly stated that they will not be pursuing a stadium proposal. Ted Mondale of the Metropolitan Sports Commission announced last week that the Vikings would increase its contribution towards a new stadium to about 40 %. The City of Minneapolis prefers that a new stadium be developed on the existing Metrodome site and they offered their own stadium proposal on May 9. Key elements of the Minneapolis proposal include a 22% cost share from the City, 45% cost share from the team and 33% from the State. The City portion would be paid from a $10.00 game day surcharge on downtown parking, an ARDEN HILLS CITY COUNCIL — May 9, 2011 additional 0.15% sales tax in the City, an expansion of the 3% downtown liquor and food tax to the rest of the City, which is over and above the existing food and liquor sales tax, and an admission tax for stadium events. The plan provides for a $100 million renovation to the Target Center, creates a public authority for ownership and management of the stadium and Target Center, and would require legislative override of the Minneapolis voter - approved 1996 Charter amendment prohibiting the City from using more than $10 million in City funds for a sports arena without a referendum. The Vikings have not commented on the Minneapolis proposal other than to say they are concerned about provisions in the plan and they intend to examine it further. The legislature has held no hearings on the draft bill and no hearings are scheduled. The regular legislative session ends at midnight on Monday, May 23, 2011. B. Public Works Week May 15 -21, 2011 Mayor Grant stated National Public Works Week is May 15 -21, 2011. This is an opportunity to recognize the efforts put forth by our Public Works Staff in maintaining the City infrastructure consisting of sanitary sewer, water, storm sewer, streets, trails, parks and public buildings. The daily efforts by these dedicated employees enhance the health, safety, and quality of life for all the residents. He read Resolution 2011 -014 into the record. MOTION: Councilmember Holden moved and Councilmember Werner seconded a motion to Adopt Resolution 2011 -014 Recognizing National Public Works Week: May 15 -21, 2011. The motion carried unanimously (5 -0). C. Community Development Year -End Review Community Development Director Hutmacher stated she joined the Arden Hills Staff in November and City Planner Beekman had taken on many of the Community Development Director duties and responsibilities prior to her starting. She stated City Planner Beekman had done an excellent job for the City. City Planner Meagan Beekman stated the Community Development Department is responsible for a variety of services, including planning and zoning, economic development, protective inspections, code enforcement, and residential recycling services. Protective inspections and code enforcement provide inspection services for all building, plumbing, water, sewer, heating, mechanical, electrical construction permits as well as Code compliance complaints. As part of the Inflow and Infiltration Program, Staff completed all sump pump inspections in Zone 2. To date, over two thirds of all residential properties in the City have been inspected. Staff completed inspections for all commercial buildings in the City. Zone 3 residential inspections will continue through 2011. She explained that in 2010, the Community Development Department processed twelve planning cases incorporating 23 land use requests, completed three planning cases carried over from 2009, reviewed and approved six code amendments, adopted zoning classifications, regulations, and a Master and Final PUD process for the TCAAP property, processed a tax increment financing application from Presbyterian Homes, transitioned to a new Community Development Director, extended the Eureka Recycling curbside recycling service contract for an additional two years, issued building permits for five new single- family homes, processed 1,075 ARDEN HILLS CITY COUNCIL — May 9, 2011 3 permits with a total valuation of $15,676,327, reviewed 277 code enforcement cases and closed 258 cases, and completed abatement of a hazardous structure. City Administrator Patrick Klaers stated City Planner Beekman and the Community Development Department had also been very busy with the Library project and the Hazelnut Park/Trinity Lutheran Church project. Councilmember Holden acknowledged City Planner Beekman's extra hard work and dedication after former Community Developer Director Lehnhoff resigned. PUBLIC Mayor Grant opened the Public Inquiries /Informational at 7:14 p.m. Mayor Grant closed the Public Inquiries /Informational at 7:15 p.m. 3. APPROVAL OF MINUTES A. March 28, 2011, Regular City Council Meeting B. April 11, 2011, City Council Work Session Meeting MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to Approve the March 28, 2011, Regular City Council Meeting Minutes and the April 28, 2011, City Council Work Session Meeting Minutes as presented. The motion carried unanimously (5 -0). 4. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item — Claims and Payroll. B. Motion to call for a City Council Meeting on May 31, 2011, at 7:00 p.m. and cancel the May 23, 2011, meeting.. C. Motion to approve a budget amendment to the General Fund reducing expenditures by $17,666 in Other Professional Services under the Planning and Zoning Department, and approve a transfer from the General Fund to the TCAAP Fund of $17,666 effective December 31, 2010. MOTION: Councilmember Holmes moved and Councilmember Tamble seconded a motion to approve the Consent Calendar as presented and to authorize execution of all necessary documents contained therein. The motion carried unanimously (5 -0). 5. PULLED CONSENT ITEMS None. ARDEN HILLS CITY COUNCIL — May 9, 2011 4 6. PUBLIC HEARINGS None. 7. NEW BUSINESS A. Regional Council of Mayors Meeting Mayor Grant stated he has been receiving material from the Regional Council of Mayors on transportation funding. He provided the agenda for the May 9 Regional Council of Mayors meeting and the Resolution on Transportation Funding. This resolution indicates that transportation is a problem facing the community and it encourages the legislature to provide adequate funding for suburban transit. All the opt -out transits are listed as part of the resolution because they are trying to encourage the suburbs to get transit. It is up to the Council to decide if they would like to support this resolution. MOTION: Mayor Grant moved and Councilmember Holmes seconded a motion to Adopt the Regional Council of Mayor Resolution on Transportation Funding. Councilmember Holden stated that she would not be in support of this resolution. The State does not want to spend money on the infrastructure in Ramsey County and the funds would end up being spent in the southern suburbs only and there would be nothing in it for Arden Hills. Councilmember Holmes stated she is in favor of this resolution. The Regional Council of Mayors wants to prioritize public transportation and she supports this. Arden Hills does not have good public transportation systems and it is important to continue to build the public transit system for the community. Councilmember Tamble stated he would be in support of this resolution. There are 45 municipalities supporting this resolution. It is unlikely that any funding would go strictly to southern suburbs. Councilmember Werner stated that resolutions at this level of government are generally not effective. Mayor Grant stated transportation is important and the City needs good transportation in order to be economically competitive. The motion was called to a vote. The motion carried unanimously (5 -0). Mayor Grant requested the signed resolution be faxed in. 8. UNFINISHED BUSINESS ARDEN HILLS CITY COUNCIL — May 9, 2011 5 A. Renewal of Letter of Support for Arden Village Tax Credit Application Community Development Director Hutmacher stated Sand Companies, Inc. (SCI) has requested a letter of support for their application for Minnesota Housing Finance Agency (MHFA) tax credit financing for Arden Village. SCI has proposed the development of an affordable rental housing development at 1296 County Road F. The proposal required the property to be rezoned from the current I -1, Limited Industrial District, to R -4, Multiple Dwelling District. In order to rezone the property, a Comprehensive Plan Amendment was also required. SCI requested a Preliminary and Final Plat to subdivide the property into two parcels, and a Master and Final PUD for the development itself. Because the Conditional Use Permit (CUP) encompassed the entire property, a CUP Amendment was needed to reflect the proposed legal description for the newly subdivided lot. On March 8, 2010, the City Council gave land use approvals for the Arden Village project including CUP Amendment, Rezoning, Comprehensive Plan Amendment, Preliminary and Final Plat, and Master and Final Planned Unit Development. Subsequent to the land use approvals, SCI requested a letter of support for tax increment assistance. Local financial assistance is very important in leveraging tax credits, grants, and loans from other funding providers. SCI needed a letter of support for tax increment assistance prior to its application for tax credits from the MHFA. On June 14, 2010, the City Council voted to proceed with approving TIF support of up to $225,000, and a letter of support was provided to SCI. With the City's March 8, 2010, land use approvals and the June 14, 2010, good faith commitment for up to $225,000 in TIF assistance, SCI closed on the purchase of land in December 2010. With the tentative award of Ramsey County HOME funds, and having already received land use approvals, SCI should be very competitive for this round of MHFA tax credit funding. An updated letter of support is needed for SCI's June 2011, MHFA tax credit funding application. At a future meeting, SCI will request City approval of tax increment district. Prior to approval, the City Council will need to determine whether the final financial analysis demonstrates the need for the requested support. Staff recommends that the City provide a renewed letter of support for tax credit financing including a commitment for up to $225,000 in TIF assistance. At the February 14, 2011, meeting, the City Council questioned for what length of time the good faith commitment is in place. Given the very complicated nature of funding for affordable housing, g and the progress that SCI has shown since June 14, 2010, it is reasonable to conclude that the City's pledge of support currently remains in effect. The City Council may choose to withdraw its pledge for TIF assistance and /or support for the project. In that event, the City Council should be aware that the project may not move forward. Councilmember Holden clarified SCI had applied for tax credits in the spring of 2010 and been denied and the application they put together in June of 2010 was for the October 2010 grant application. Mr. Jamie Thelen, CEO Sand Companies, Inc. stated this was correct. MHFA has two awards per year. The application for the larger award is due in June and there is a supplemental or smaller fund award in the spring with an application deadline in September. At this time the application that SCI is putting together is for the larger MHFA tax credit award and they would not know if they had received any funding until October of this year. The application deadline is June 14. ARDEN HILLS CITY COUNCIL — May 9, 2011 6 Councilmember Holden clarified SCI will need to request a new letter of support for each housing tax credit application they do and this letter of support does not obligate the City to provide TIF financing. City Planner Beekman stated SCI has come to the City for a new letter of support for each application they have done. This letter does not guarantee SCI will qualify for TIF or for the full $225,000 specified in the letter of support. SCI will need to apply for TIF Financing and meet all the criteria including the But -For Analysis before TIF Financing can be provided. The letter of support is not an obligation but it is a good faith commitment that if the applicant applies for and qualifies for TIF then the City will grant it. City Attorney Jerry Filla stated the City has approved several things in regards to this project and the applicants believe if they continue to follow the process and they qualify for TIF the City will grant them TIF in an amount up to $225,000. They may not be eligible for the full amount or they may qualify for more but the City has capped the amount they would approve at $225,000. The applicants are aware that they should come to the City for a new letter of support for each housing tax credit application they submit. Mayor Grant stated the City may not be able to continue to support this amount of TIF if the process goes on indefinitely. There may be other projects in the City that request TIF in the future and the City may need to act on these requests. He clarified the City's financial situation may change in the future where the City would not be able to continue their support for TIF indefinitely. City Attorney Filla stated the City has approved the project and SCI may decide to go forward with the project without the housing tax credit funding. Mr. Thelen stated SCI has been looking into other funding sources such as the Ramsey County HOME funds that have been tentatively approved. SCI understands that they should come to the City for a new letter of support for each application they submit and have been following this process with each submission. Councilmember Werner asked if the overall project costs have been reduced or increased since the project was first brought to the City Council in 2009. Mr. Thelen stated since 2009 the construction costs have decreased and they are also finding that funding sources are less restrictive than they were in the past. MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to Approve the Renewal of a Letter of Support for Tax Credit Financing Including a Commitment for Up To $225,000 in TIF Assistance for Sand Companies, Inc. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to Amend the Letter of Support to include a sentence in paragraph 4 that specifies the Letter of Support will expire at the end of the 2011 grant award cycle. ARDEN HILLS CITY COUNCIL — May 9, 2011 7 Councilmember Holmes stated she would not support this amendment. This project is an important initiative for the City and she would like to see the City Council encourage developers to come forward and continue to support those developers. Affordable housing is important to the residents of Arden Hills and if it takes several grant cycles for SCI to achieve their funding goal then the City should support this. SCI is currently applying for the second time for a full funding cycle. Mayor Grant stated the amendment was not trying to limit the number of times that SCI can come to the City and ask for a renewed letter of support but rather to let SCI know that as this project experiences delays due to funding gaps the City's financial situation may change and the City may be unable to renew the support in the future. The good faith commitment is not indefinite and is dependent on the financial situation of the City. At this time the City does support their project and their request for up to $225,000 in TIF Financing from the City. Councilmember Holmes stated SCI has come to the City for a renewed letter for each application they have submitted so the proposed amendment does not need to be made. Putting this type of limitation in the letter of support may affect their ability to receive the tax credits. The City should continue to be supportive of this project Councilmember Holden clarified that the City should make it clear that there could be an end to the support they have given at this time. SCI should not expect this support to be indefinite. She stated the City should not be obligated to this TIF financing if there is no set time for when it will occur. City Attorney Filla stated the City could make it clear to the developer that the commitment is not forever by making a separate motion or additional correspondence that is not included with the letter of support. Putting an end date in the letter of support could hinder their chances of getting additional funding. Mayor Grant stated he would like the record to reflect the City's TIF commitment is dependent on the City's financial situation and is not for an indefinite time. Mr. Thelen stated this has been the longest it has taken SCI to obtain the needed housing tax credits for a project. SCI also understands that they need to request a new letter of support for each application they submit. A new letter of support is not a requirement for the application but SCI feels it is important to do this for the City. MHFA does have some statutory rules about end dates for support and if there are short -term dates then the project may not be considered. He would request the City consider two motions and not include an end date in the letter of support. He clarified that SCI is aware the City's financial situation can change and they may not receive future approval for TIF support. Councilmember Tamble stated if SCI has to request a new letter of support each time they apply then having an end date in the letter of support would not be needed ARDEN HILLS CITY COUNCIL — May 9, 2011 8 Councilmember Holmes stated the City should make the developer aware of the City's position but this does not need to be included in the letter of support because at this time the City does support up to $225,000 in TIF Financing. City Attorney Filla recommended the City pass two separate motions. One motion to approve the renewal of the letter of support and the second motion to draft a letter to the developer that advises them that the City's commitment to TIF is not indefinite and is dependent on the City's financial position at the time the project will be funded. Councilmember Holden withdrew her motion to amend the letter of support. Mayor Grant withdrew his second to the motion to amend the letter of support. The original motion was called to a vote. The motion carried (4 -1; Councilmember Holden). MOTION Councilmember Holden moved and Mayor Grant seconded a motion to direct Staff to draft a letter to the developer that the City reserves the right to withhold support in the future based on the needs of the City at the time the request is made. The motion carried (4 -1; Councilmember Holmes). B. Planning Case 09 -021— Arden Village Building Permit Extension City Planner Meagan Beekman stated on March 8, 2010, the Arden Hills City Council approved a Preliminary and Final Plat, Master and Final PUD, Rezoning, CUP Amendment, Comprehensive Plan Amendment, and Development Agreement to permit Arden Village, LLC to construct a 55 -unit apartment building at 1296 County Road F. Section 5.0 Subd. A.2 of the Development Agreement required Arden Village to obtain a building permit for the development on or before June 30, 2011. Since the initial approval of the project, Arden Village has moved forward with purchasing the parcel, and has filed the Final Plat to subdivide the property with the County. Arden Village is working with the Minnesota Housing Finance Authority (MHFA) on an application for housing tax credits that would allow the project to be constructed. Arden Village did not receive funding in the last MHFA funding cycle in October, but is reapplying and anticipates being awarded tax credits this fall. The applicants are requesting a one -year extension on their deadline to submit for building permits in order to give them time to pull together their financing package, which includes the housing tax credits. The building permit extension would not change, extend, or alter any other aspect of the approved Development Agreement. Councilmember Holden stated the City has been told that SCI would get funding with previous funding cycles and they did not get what they expected. She asked what was different with this application that made SCI more confident in receiving funding with this cycle. Mr. Thelen stated if SCI was not confident they would receive funding they would not apply. The process is expensive. The HOME funding from Ramsey County will also enhance their scoring for this application. ARDEN HILLS CITY COUNCIL — May 9, 2011 MOTION: Councilmember Holmes moved and Councilmember Holden seconded a motion to Approve Amending Section 5.0, Subd. A.2 of the Arden Village Development Agreement to Extend the Building Permit Deadline for One Year to June 30, 2012. Councilmember Holmes stated this motion should be approved since the City approved the renewal letter for support. The motion was called to a vote. The motion carried unanimously (5 -0). 9. COUNCIL COMMENTS & STAFF UPDATES Councilmember Werner asked if the City had checked into the reason for the trees being cut down along Old Highway 10. He asked if this was due to the power company easement. City Planner Beekman stated she has received calls regarding this and forwarded information to Public Works Director Maurer. He is on vacation this week but will return next week and she will follow up with him at that time. Councilmember Holden stated she had reviewed an article on AOL regarding McDonalds and how they are redoing their facilities. She stated at the time the City had been reviewing the McDonalds Planned Unit Development, they had been told that the building style proposed is what was being done and this is not what the article had shown. Councilmember Holden asked if a date had been determined for the State of the City Address. Mayor Grant stated a date had not been determined yet. He requested that Staff look into setting a date for this. He suggested setting up something in September. City Administrator Klaers suggested adding this discussion to a future work session. Councilmember Holmes stated Celebrating Arden Hills is in September and the City could look at doing the State of the City Address the night before. Councilmember Holden stated the newsletter articles are due on Friday. Councilmember Holden stated there had also been an article in regards to a person discharging a firearm on New Brighton Avenue. She asked if this was a registered rental property and if it involved a student from Bethel University. If the person involved was from Bethel University she suggested the University be notified of this. City Attorney Filla stated the person was cited and they have to appear in court in June. Councilmember Holden stated Love Inc. has sent a letter regarding an event they will be having May 5 -6, 2012. She asked if the City would be participating or if a letter should be sent to them. ARDEN HILLS CITY COUNCIL — May 9, 2011 10 Mayor Grant requested this discussion be added to a future work session. Councilmember Holmes stated there were two openings on the Planning Commission and those interested are encouraged to apply on the City's website. Mayor Grant stated he had received a letter from the River Valley Girl Scouts and there are 3 recipients of the Gold Award, which is the highest level for Girl Scouts. He requested City Administrator Klaers invite Courtney Dane, Katherine Worble and Ann Lindberg to a future City Council meeting so the Council can present them with certificates. He suggested doing this for the May 31, 2011 regular City Council meeting. At this time the City has not received any information from the Boy Scouts. Mayor Grant stated he had received a letter from Representative Kate Knuth and she has signed on as an author to House File 118 for the improvements to I -694 to Rice Street. Mayor Grant stated he had received a letter of introduction from the new District 10 Representative from the Metropolitan Council, John Doan. Councilperson Doan would like to introduce himself in person to the City. The Mayor requested City Administrator Klaers set up a meeting time at one of the work sessions in June. Mayor Grant stated he had received a letter from Mark Lindeberg at Mn/DOT with comments regarding the appeal process. He stated City Administrator Klaers would provide a copy of this letter to the Council members for review. Mayor Grant stated it was time for City Administrator Klaers' annual review. He requested Mr. Klaers put together the materials that would be needed for this process. He explained the process would be similar to the process used for the six -month review. He recommended the Council set a date in mid -June. City Administrator Klaers stated the May 16 work session would include discussions with U.S. Fish and Wildlife, the Minnesota Pollution Control Agency, and the U.S. Army regarding the recent testing on Round Lake. Councilmember Holden asked if notices would be sent to the Round Lake residents. City Administrator Klaers stated the Mayor had announced at the last meeting that there would be follow up information posted on the City's website and announcing the work session at this meeting may be sufficient notice for those residents around Round Lake. Councilmember Holden suggested sending a separate notice to just those residents on the lake because they are the ones that would be directly affected by the project. Mayor Grant stated the Mayor of New Brighton is asking the City of Arden Hills to participate in the "Read a Book" program for the launch of the new Ramsey County library that will be opening in the New Brighton Community Center. A book would be chosen about building communities and everyone would be asked to participate by reading this book. At this time it is in ARDEN HILLS CITY COUNCIL — May 9, 2011 11 the concept stage and there are not a lot of details available. As the project comes together, more details will be available and the Council will be asked to support this. They are not asking for financial support for this project but would like to have the City participate and put the information on the City website. They are also looking for residents that would like to get involved in helping to organize the event. They would like to have the "Read a Book" launch when the library opens in November /December. Councilmember Holmes stated the City should support the launch of the library. Even though the library may not be in the location they would have liked it is still their library and they need to support it. Mayor Grant stated since there were no objections to the City participating in the event he will notify New Brighton and give them the City's endorsement. ADJOURN MOTION: Mayor Grant moved and Councilmember Holmes seconded a motion to adjourn to closed session pursuant to State Statute 13D.05, Subd. 3(c) (3) to discuss client- attorney information related to the 2010 PMP assessment appeals. The motion carried unanimously (5 -0). Mayor Grant adjourned the Regular City Council Meeting at 8:25 p.m. A‘,/ Patrick Klaers City Administrator David Grant Mayor