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HomeMy WebLinkAbout10-18-10-WS EN HILLS - Approved: November 29, 2010 CITY OF ARDEN HILLS,MINNESOTA CITY COUNCIL WORK SESSION MEETING OCTOBER 18, 2010 5:00 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the City - Council Work Session meeting at 5:01 p.m. Present: Mayor Stan Harpstead; Council Members Brenda. Holden, Fran Holmes, and David McClung. Councilmember Grant arrived at 5:12 p.m. Absent: None. Also present: City Administrator, Patrick Klaers; Public Works Director, Terry Maurer; City Planner Meagan Beekman; Parks and Recreation Manager Michelle Olson; and Deputy Clerk Rebecca Brazys. APPROVAL OF AGENDA MOTION: Mayor Har stead moved and Councilmember Holden seconded to move agenda item 2C to the beginning of the agenda, motion carried unanimously (4-0•) 2. AGENDA ITEMS 2.0 Discuss Traffic Administrative Fines Program City Administrator Klaers explained that the Council originally discussed this program in late 2009 and at that time chose not to proceed. In the summer of 2010, he updated the Council on the status of the program for the Contract Cities group in Ramsey County. The Council indicated at that time that they were open to participating in the program but wanted to further discuss the program. Ramsey County deputies have made positive comments about this program and citizens like it because it helps control speed in residential areas. He has reviewed the Administrative Fine issue with the City Attorney who has experience with this program in the City of Shoreview. The City Attorney has prepared the appropriate Traffic Administrative Fines program resolutions and ordinances for Council consideration. ARDEN HILLS CITY COUNCIL WORK SESSION—OCTOBER 18, 2010 2 Councilmember Holmes questioned the overhead costs referred to in the Ramsey County - Sheriff's minutes provided. City Administrator Klaers explained that there are some administrative costs associated with this program. He offered to obtain additional information. Councilmember Holmes questioned who would handle appeals. Mayor Harpstead explained that the Contracted Cities would hire a hearing officer to handle appeals. Councilmember Holden asked if it is the City's responsibility to pursue individuals who refuse to pay citations. Mayor Harpstead stated he believed a criminal citation would be issued in that situation. Council consensus was to direct staff to move forward with this program and to bring it to a regular City Council meeting for consideration. 1. COUNCIL COMMENTS Councilmember McCIung thanked Terry Maurer, Michelle Olson and the Public Works crew for removing a deer carcass from a county road. 2. AGENDA ITEMS 2.A Review and Discuss Presbyterian Homes Development Proposal. 1. Discuss recent changes in the development proposal and the TIF application. City Planner Beekman explained that on September 29, Presbyterian Homes held a community meeting. Subsequently, changes were made to their plans based on comments from residents attending that meeting. On October 6, they presented their revised plan to the Planning Commission. Since October 6, additional revisions have been made. Presbyterian Homes has decided to donate the triangular piece of property at 3151 Lake Johanna Boulevard to the City if their full TIF is approved. Pam Belz, representing Presbyterian Homes, explained that one concern raised by the neighbors was employee traffic through the neighborhood. To address that concern, the employee exit area from their parking lot has been redesigned to allow right turns only. Also, the receiving area originally proposed as a part of the project has been eliminated and all receiving will be handled in the current location. ARDEN HILLS CITY COUNCIL WORK SESSION—OCTOBER 18, 2010 3 John Mehrkens, Presbyterian Homes, explained the changes required to address neighborhood concerns have negatively impacted the project from a financial standpoint; such as the centralization of receiving to one location, the adjustment in unit mix on the Shorewood side, and reducing the number of independent units and brownstones. City Planner Beekman stated the Planning Commission tabled this application to their November 3rd meeting to give staff time to review the revisions proposed by Presbyterian Homes. City Administrator Klaers stated that at their October 25'h meeting, the Council will be asked to set the public hearing on the TIF district for December 13, 2010. If the Council approves TIF, the City will directly benefit from the investment by Presbyterian Homes in sewer and street improvements and the donation of the triangle property. He further explained that FPAC unanimously recommended approval of TIF. Councilmember McClung asked if the building on the donated property will be removed by Presbyterian Homes. City Planner Beekman responded that Presbyterian Homes would remove all structures before deeding the property to the City. Councilmember Grant questioned how the donated property would impact TIF. Staci Kvilvang from Ehlers and Associates explained that the donated property would not add any value by including it in the TIF district because the City would own it. She stated that the preliminary estimate for the increment is $1.3 to $1.6 million over the 16 year period. She further explained that the Council would give a note to Presbyterian Homes and as development is completed, that note would be paid semiannually. Mr. Mehrkens explained that Presbyterian Homes would be obligated to create that value in their project. Councilmember Holden commented that Presbyterian Homes has had years to fix up the triangle property but hasn't done so. She then questioned the City's portion of TIF. Ms. Kvilvang stated it would be about 30% of the $1.3 to $1.6 million over the 16 years. Councilmember Holmes questioned if Presbyterian Homes pays property taxes and income taxes. Mr. Mehrkens explained that the only portion of their development that is exempt from property taxes is the Care Center. Because they are a charitable organization, they do not pay income taxes. Councilmember Grant noted that they had not extended the sidewalk along Lake Johanna Boulevard. ARDEN HILLS CITY COUNCIL WORK SESSION—OCTOBER 18, 2010 4 Mr. Mehrkens explained that the County would not allow that extension. Mayor Harpstead questioned if the neighbors have seen the plan revisions. Mr. Mchrkens responded that there were some neighbors present at the Planning Commission meeting. _ Councilmember Holden asked the height of the building. Mr. Mehrkens stated it is twelve feet less than the original proposal. City Planner Beckman stated that no height variance is required through the PUD process. She added that at the highest point the building is 56 feet high. Councilmember Grant asked where the signage will be. - City Planner Beekman provided a signage plan for his review. Mayor Harpstead asked if the public will continue to have access around the lake. Mr. Mehrkens explained that they intend to allow the public access to continue. Councilmember McClung asked if Presbyterian Homes would commit to keeping the path open to the public. Mr. Merhkens stated if it can be well drafted and in a way that it is stated as an intent which allows Presbyterian Homes to handle any issues that may arise, he would have no objection. But he would not be comfortable with an easement. Mayor Harpstead stated he likes the revised proposal and sees no significant obstacles. He thought it would be ideal if New Brighton Road could connect with Lake Johanna Boulevard at a right angle. Public Works Director Maurer stated he was in a recent meeting with County representatives and they indicated there is not a significant accident history at that intersection. Councilmember Holden stated the City has allowed the buildings on the triangle to not be well maintained. Councilmember McClung asked if the TIF is for $1.5 million over the next 15 years, does that mean the City will collect$500,000 after TIF. Ms. Kvilvang stated if everything remains constant that would be correct. ARDEN HILLS CITY COUNCIL WORK SESSION--OCTOBER 18, 2010 5 Councilmember Holmes commented that the City would be giving up approximately $500,000 (if TIF is approved) but we would also have to factor in the $150,000 sewer and road improvements to be done by Presbyterian Homes. She then asked if the triangle property would be donated to the City without TIF. Mr. Mehrkens explained the road and sewer improvements and deed to the property would be in exchange for the full TIF package. Councilmember Holden questioned if additional changes can be made by the Council or Planning Commission. City Planner Beekman stated changes can be made. City Administrator Klaers clarified that statement explaining that as long as the changes were minor, they can be done but not substantial changes that increase the costs for Presbyterian Homes or which reduce the value of the project. - Mr. Mehrkens explained that his goal for tonight is to determine whether or not the Council will support TIF with the total package that Presbyterian Homes is proposing. Mayor Harpstcad commented that the proposal to replace the 60 year old building and construct it further away from the shoreline would benefit the City and the surrounding neighbors. City ownership of the triangular piece of property would allow for the location of a gateway entry sign for the City. Councilmember McClung stated that there have been sufficient changes in the proposal and assuming this meets all "but/foe'tests, he would be supportive of TIF as there is enough benefit to the community. Councilmember Holmes stated she is troubled by the fact that Presbyterian Homes does not pay income taxes. Mr. Mehrkens explained that as a non-profit nursing home owner the profits are directly reinvested into the operation with only a 3% profit margin allowed for non-profit organizations. He added that without TIF, their plans would change to a simpler design, lower class materials, and a lower percentage of common space all of which would be detrimental to the community. City Administrator Klaers explained that Presbyterian Homes would continue to pay their current property taxes even if TIF is approved. Councilmember Holden commented that some sewer system problems have been related to Presbyterian Homes and she questioned if the new sewer would be improved and/or address safety mechanisms to prevent those problems. Public Works Director Maurer responded yes, the sewer improvements would address those concerns, but he pointed out that the sewer issues are unrelated to Presbyterian Homes. He ARDEN HILLS CITY COUNCIL WORK SESSION—OCTOBER 18, 2010 6 explained that Presbyterian Homes was asked to lay out their trail system down to the lift station - and they have accommodated all those issues. From a utility standpoint, he believed this would be a benefit to the City's system. Mr. Mehrkens added that grinders have already been installed by Presbyterian Homes to resolve _ the sewer problems previously experienced. Councilmember Grant stated the increment change does not have any impact on schools. In terms of the County, the incremental differences are small. Ms. Kvilvang added that the County would simply levy more. Councilmember Grant stated that FPAC's decision to support TIF for this project appears to have been based on non-financial factors. - City Administrator Klaers explained that FPAC's meeting was September 9 and they did have some financial information at that time. Mr. Mehrkens pointed out that this project has qualified costs that far exceed TIF and the total project is $51 million. Councilmember Grant commented that TIF would only be about 3% of the total. Councilmember Holmes stated she doesn't believe this project merit's TIF because Presbyterian Homes does not pay income taxes and the triangle property has no value to the City. Councilmember Holden stated that she could "live with TIF," but not for the full 16 years. She stated she would be more comfortable with 10 years. Councilmember Grant stated he is leaning towards the TIF because of the proposed road and sewer improvements and the triangle property has some benefit to the City. He added that he is not a big fan of TIF but if the City can get some benefit, he would be for it. Councilmember Holden also questioned if approving TIF on a first-come-first-serve basis is in the best interest of the City. Ms. Kvilvang commented that the City could move forward with this TIF without a huge impact until the TCAAP property begins to be developed and other TIF requests are presented. 2.13 Review and Discuss I-694 Municipal Consent Public Works Director Maurer explained that based on comments from the Council, he reworked the conditions related to the Municipal Consent request. Mayor Harpstcad asked if Bolton&Menk had reviewed this. ARDEN HILLS CITY COUNCIL WORK SESSION—OCTOBER 1 S, 2010 7 Public Works Director Mauer responded that Bolton & Menk had reviewed the original - conditions but not the most recent revisions. Discussion ensued regarding berming on the north side. Mr. Maurer agreed to change the wording in Condition #3 for berming along I-694 where noise walls are not proposed. Further discussion about removing vegetation for berming resulted in the decision to not request removal of mature vegetation to allow for berming. Councilmember Holmes suggested that the wording "agreed to by the County and City" be added to the end of Condition #6. After some discussion, it was agreed the wording to be added should be"in consultation with the Cities of Arden Hills and Shoreview." Councilmember Holmes questioned the wording in Condition #7. After some discussion, it was agreed that the wording should be revised to state that Mn/DOT will make such improvements - rather than stating Mn/DOT will commit to making the improvements. Discussion ensued on Condition 48. Public Works Director Maurer agreed to ask MnDOT to design the bridge to facilitate the existing trail. Mayor Harpstead and Councilmember McClung both expressed their support for the conditions with the suggested revisions. 2.1) Staff Updates Arden Hills Library City Administrator Klaers stated now that the County Commissioners have approved the relocation to New Brighton, the Council may want to restate their support for keeping the current library open until the New Brighton facility is ready. He also questioned if the City should ask that the property on which the current library is located be returned to the City. Councilmember Holmes stated that the City Attorney has previously advised the Council that we have no right to that property. Mayor Harpstead explained that there is no encumbrance on the deed to return the property to the City. Hazelnut Park and Trinity Lutheran Church Negotiations City Administrator Klaers stated a meeting has been scheduled with the church representatives for October 28. The church is looking for examples of how park land is valued and they have asked their appraiser for an opinion of the value of park land. City staff is reviewing the cost of improving and maintaining the soccer field and parking lot. One option would be to keep the price of the property low but offer to do parking lot improvements. Councilmember Holden explained that the church asphalted over a poor base in their parking lot. ARDEN HILLS CITY COUNCIL WORK SESSION—OCTOBER 18, 2010 8 There was some discussion regarding the City's ongoing maintenance of the parking lot. Because - of the expense involved in maintaining the lot with such a poor base, the City may want to consider offering to maintain only a portion of the lot. Six Month Performance Review for City Administrator City Administrator Klaers explained that the City's contract with the consulting firm that handled the hiring process for his position includes assistance with the six month review. He asked if Council wants Mr. Fursman to proceed with that review. Council consensus was that Mr. Fursman should proceed. Staff Photos City Administrator Klaers stated that based on a Councilmember's request, photos have been taken of all but one City employee and those photos will be posted on the City's intranet. COUNCIL COMMENTS Councilmember Holden asked if surrounding property owners had received the recent TCAAP notification. City Administrator Klaers will follow-up on that. Councilmember Holmes thanked Parks and Recreation Manager Michelle Olson for the recent Elmer L. Andersen trail dedication ceremony. ADJOURN Mayor Harpstead adjourned the City Council Work Session meeting at 7:25 p.m. Patrick Klaers Stan4HsteWa7 City Administrator Mayor