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HomeMy WebLinkAbout10-29-12-WS for TCAAP Update "I't -TEN_ HILLS Approved: December 10, 2012 CITY OF ARDEN HILLS, MINNESOTA SPECIAL CITY COUNCIL WORK SESSION MEETING OCTOBER 29,2012 IMMEDIATELY FOLLOWING REGULAR CITY COUNCIL—COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the Special City Council Work Session meeting at 8:45 p.m. Present: Mayor David Grant; Councilmembers Brenda Holden, Fran Holmes, Nick Tamble, and Ed Werner Absent: None Also present: City Administrator Patrick Klaers; Public Works Director Terry Maurer; Community Development Director Jill Hutmacher; and Deputy City Clerk Amy Died 1. AGENDA ITEMS A. TCAAP Update City Administrator Klaers stated that he wanted the City Council to meet in a work session for the purpose of discussing TCAAP and the proposed Joint Powers Agreement (JPA) between the City and the County; and ultimately, where that partnership is heading. City Administrator Klaers noted that in June, the County moved the project forward by applying for a grant for DEED money for the acquisition and cleanup of the TCAAP site. He explained that the County did not receive the DEED grant, but they are still moving ahead with the acquisition of the property. Additionally, the County has officially extended their deadline with Bolander for remediation of TCAAP as well as their Offer to Purchase with GSA. City Administrator Klaers stated that the City and the County have a common goal of getting the land cleaned up and put back into productive use. He explained that a defined set of roles and responsibilities needs to be established. He indicated that a proposed Memorandum of Understanding between the County and the City for TCAAP has now led to a draft JPA, and Michael Norton, of Kennedy& Graven, has been hired to help the City with this document. City Administrator Klaers stated that in late September/early October, he met with Councilmembers both individually, and/or in small groups, to talk about where the project is ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—OCTOBER 29, 2012 2 going. The message that he took away from those meetings is that the City needs to minimize its risks. Working with a private developer, such as Ryan Companies, is different than working with the County. He stated that in general, the feedback provided during his meetings with the Councilmembers was positive. City Administrator Klaers stated that the conversations with individual Councilmembers further identified two additional concerns. First, is the issue of off-site transportation and the second is regarding the need for a third access onto the property. He indicated that he does not have a good answer for those concerns,but noted that the issues are the County's responsibility. City Administrator Klaers noted that there are questions regarding the initial establishment of the Joint Development Authority(JDA) and how this new board should function and operate. It is known that it would be comprised of two members of the County Board, two members of the City Council, and one member appointed by the City Council. City Administrator Klaers stated that the two key sections of the JPA are the ones related to the establishment of the JDA and the creation of a Master Plan. There are unknowns with the JPA such as how the JDA will operate and function, questions on how the Master Plan is implemented (phased in), and the cost of the Master Plan. He noted that the cost of the AUAR is likely going to be between $100,000 - $200,000. There is also the trunk utility financial issue that will ultimately be passed on to the developers as well as the financial responsibility of operating the JDA itself. At this time, it is unclear how expensive it will be to create the JDA and there will be ongoing expenses. City Administrator Klaers stated that the AUAR is a City requirement. Staff has met with Kimley Horn and WSB and was given estimates as to what AUAR's have cost in other cities. He was also given a timeframe estimate. He met with the County and discussed some of the financial issues. The County has indicated that they will make sure the City is reimbursed for some of its planning expenses. He said that ways in which reimbursement may happen is with building permit surcharges, increased SAC/WAC fees, or application development fees. There are other ways to recapture the money, and the County will support the City in getting its money back. City Administrator Klaers stated that staff has met with Ehlers to discuss this project and Ehlers has done bond runs, so the City knows those costs. With this project, the County is the landowner and as such, they are required to pay for the infrastructure, and they would like the City to bond for it. He indicated that the City should not bond unless the County can guarantee payment. Councilmember Holmes questioned why the County is not going to bond for the infrastructure costs. City Administrator Klaers stated that the County does not see themselves as a developer; only as temporary landowners, and the County views the City as being responsible for utilities. Councilmember Holmes stated that the County wants the City to bond and to be responsible for the construction and initial expense of sewer and water. She reminded staff that during previous discussions, the consensus of the Council is that they would not put the burden of TCAAP-related expenses on the residents. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—OCTOBER 29, 2012 3 Mayor Grant stated that they City would be issuing the bonds, but the County would make the payments. The County would get its money by selling land, and essentially, the County is covering the costs of trunk utilities. Councilmember Holden inquired about the County's bond rating. City Administrator Klaers stated that according to Ehlers, it is marginally better than the City's. Discussion ensued regarding estimated costs and timeframes involved in the TCAAP project, including the operating and ongoing costs of the JDA, Master Plan, and trunk utilities. The Council requested estimates and assumptions involved for the project. ADJOURN Mayor Grant adjourned the Special City Council Work Session meeting at 10:10 p.m. Patrick Klaers David Grant City Administrator Mayor --S EN HILLS Request for Special Council Meeting A special meeting may be called by the Mayor or by any two Council Members. Reason for meeting: Work Session for a TCAAP Update Requested Date: 10/29/12 Requested time: Immediately following the Regular City Council Meeting Open meeting X Closed meeting Signatur f person s) ma i g request: a � 10/25/12 Mayor or Council Member Date Council Member Date -This section to be completed by City staff- Date received: 10/25/12 Date meeting to be held: 10/29/12 Time of meeting: Immediately following Regular City Council Meeting Location: Council Chambers City Hall All necessary posting and notices have been completed. J-ni ,'LL, I0 / Signature of Dep ty Clerk Date City of Arden Hills * 1245 West Highway 96 Arden Hills,MN 55112-5743 Phone 651.792.7800 0 Fax 651.634.5137 www.charden-hills.mn.us