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HomeMy WebLinkAbout05-19-14-WS ,It -- I�EN HILLS Approved: July 14, 2014 CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION MAY 19, 2014 5:00 P.M. - ARDEN HILLS CITY HALL CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the City Council work session at 5:00 p.m. Present: Mayor David Grant; Councilmembers Brenda Holden, Fran Holmes, Dave McClung, and Ed Werner Absent: None Also present: City Administrator Patrick Klaers; Public Works Director Terry Maurer; Community Development Director Jill Hutmacher; Associate Planner Matthew Bachler; City Planner Ryan Streff; and City Clerk Amy Dietl 1. AGENDA ITEMS C. Update on Highway 10 and County Road 96 (added to the agenda) Jim Tolaas, Ramsey County, provided the Council with an update on the Highway 10 and County Road 96 project. He understood the City's frustration with the situation and noted that the weather has factored into construction delays. He reported that when the center median work is completed, the inside turn lanes can then be finished and the signals can be turned on at the intersection of Round Lake Road and County Road 96. He indicated that the ground was quite soft, which means that the sidewalks and trails cannot be completed until the area dries out. Mayor Grant was pleased that a police officer was now at the intersection during peak traffic hours. He stated that there appears to be drainage issues at the southwest corner of this intersection. Councilmember McClung encouraged Mr. Tolaas to get the signal lights functioning as soon as possible due to the fact the City is experiencing major traffic delays due to this project. Councilmember Holden questioned who the lead is on this project. ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 19, 2014 2 Mr. Tolaas explained that the project was being led by the County and that MnDOT had inspectors and contractor management on site. Councilmember Holden questioned how much longer the outside lanes would be closed. Mr. Tolaas commented that the grading and prep work still needs to be completed on the sidewalks and trails. He stated that the contractor wants to get this work done as soon as possible. Councilmember McClung inquired if the County has a new estimated completion date. Mr. Tolaas stated that he did not have a new date, but reported that the County is working with the contractor to review schedules. He indicated that the rainy weather this spring has been creating unforeseen delays. City Administrator Klaers asked when the signals might be operational. Mr. Tolaas anticipated that the signals would be turned on by the end of the month. Mayor Grant indicated that the businesses along County Road E have been voicing concern with the length of time the County Road E bridge would be out. He encouraged the County to coordinate and communicate with businesses in this area when the bridge work begins. He fears that the County has lost some credibility in the City because of the Highway 10/County Road 96 project. Mr. Tolaas understood these concerns. Councilmember Holden asked if the County Road E and County Road F bridges would both be replaced in 2015. Public Works Director Maurer stated that after the last Council meeting, he made contact with several project managers regarding the proposed projects and expressed his concern with the timing of these projects. He received responses from each project manager and noted that Beth Engum was working to coordinate these projects. Ms. Engem will be present at the May 27a' Council work session to discuss this matter in further detail. Councilmember Holden requested feedback from Mr. Tolaas on the proposed roundabout at County Road H as an entry point into TCAAP. Mr. Tolaas commented that he is not a huge proponent of roundabouts,but believes they do work at some intersections with certain movements. He indicated that modern roundabout design has evolved. For this reason, he believes that a roundabout at County Road H is a viable option. He stated that a final determination could not be made until he sees the model or simulation of the intersection. Mayor Grant thanked Mr. Tolaas for his comments and updates. A. Round Lake Discussion ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 19, 2014 3 City Administrator Klaers stated that Congresswoman Betty McCollum scheduled a Round Lake briefing on April 22, 2014. This meeting was held at City Hall. Mayor Grant and Council Members Werner and Holden, Senator Scalze, Representative Yarusso, and representatives of the U.S. Fish and Wildlife Services, the MPCA, and the EPA attended this briefing. City Administrator Klaers reported that at the April 28, 2014, City Council meeting, staff was directed to put Round Lake on this May 19th work session agenda for a Council discussion. Mayor Grant provided a summary of the discussion held at the April 22nd meeting. Councilmember Holden questioned if the MPCA, US Fish and Wildlife Services and the DNR are on board with a project (that would clean up the contamination that is in the Round Lake sediments). She does not want the City to support action that is in conflict with what Congresswoman McCollum supports because she has been instrumental in helping the City with TCAAP issues and will be instrumental with grants for TCAAP. She does want to see that Round Lake is useable. Councilmember Werner had concern with the opinions of the residents around Round Lake. Mayor Grant believed that for some, they wanted the lake improved and for others it is fine as is. There is concern that after the lake is cleaned, that it may not return to the same water level. He understood that the City does not have a say in this matter, but recommended that staff draft a letter to Congresswoman McCollum's office with a statement from the City. Councilmember McClung recommended that the City not weigh in on this matter until other information is made available from the other agencies. It is his understanding that the Army does not believe that they have to address any imminent pollution issues but the US Fish and Wildlife is working with the EPA to have the lake cleaned. Councilmember Holden reported that Congresswoman McCollum wants to see that the lake is cleaned and there is tremendous pressure on the Army to clean the property. She wants to see if any more information is available from the DNR and the MPCA before the City makes any comments on a Round Lake remedy. Mayor Grant agreed that the City needs to gather additional information. B. TCAAP • Financial Update City Administrator Klaers indicated that staff is working to gather information on the financials for TCAAP. He commented that the preliminary numbers are estimates and will provide the Council with a starting point. Stacie Kvilvang, Ehlers & Associates, reviewed the preliminary up front costs in detail with the Council and estimated these expenses to be approximately $1.3 million. These costs are for the Master Plan, feasibility studies for utilities, and the City share of the storm water enhancements. Additionally, she anticipated that park development would consist of about 21 acres and it would ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 19, 2014 4 cost about $9 million dollars to develop these parks per the draft park plan. She discussed the park dedication fees that could be collected by the City for the TCAAP development. She asked the Council for questions or comments. Councilmember Holden questioned what was included in the storm water feature enhancements and storm water ponding. Ms. Kvilvang explained that the storm water ponding was the pipes, ditch, and grading for a normal storm water system. The enhancements would include those items above and anything beyond that, such as a bubbler or fountain, does not benefit the end property user. Councilmember Holmes did not believe that any enhancements to the storm water system were necessary. Councilmember McClung thought that the enhancements would be tied to amenities. Mayor Grant believed that the City and County need to be careful as he does not want the property to become over-burdened to a point that it cannot be sold. Public Works Director Maurer commented that it is still uncertain if the TCAAP site requires a water tower; however, this expense should also be kept in mind by the Council. Ms. Kvilvang indicated that the City's total outlay (including trunk utilities and the items discussed tonight) is estimated at $17.4 million and this amount will be refined over time and be calculated into development fees. She provided the Council with information on potential SAC and WAC fees. She commented that the Mayor is correct and that the City will have to find a balance on these fees to make sure the City is not over charging fees to the point that land sales are impacted. City Administrator Klaers estimated that if the Council proceeded with the low density AUAR scenario, the City will receive about $5 million in Met Council SAC credits. The Council should keep in mind that these fees will come in over a period of 20 years as the TCAAP site gets fully developed. Further discussion ensued regarding the Met Council SAC credit program and the number of units developed on TCAAP, along with the City's current park dedication policy. Community Development Director Hutmacher indicated that the City's current park dedication policy is for residential or commercial developments to pay 10% of land value. Ms. Kvilvang noted that the City is short on its park dedication fees based on its current policy and will not be able to cover all of the anticipated debt for park development. Mark Ruff, Ehlers & Associates, estimated that the current land value of the TCAAP site is roughly$73 million under the current model. ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 19, 2014 5 City Administrator Klaers indicated that based on the past development on TCAAP, the City has about 4,500 SAC credit units available. However, the chances of TCAAP developing to that land use level is remote when looking at the maximum AUAR zoning scenario generating only 3,325 units. He reported that it would be more likely that the site will generate 2,200 SAC credit units. The Council will have to consider how dense it wants to develop the TCAAP site. Mayor Grant discussed the expense for storm water ponding. Ms. Kvilvang explained two ways, developer fees or assessments, that the City could be reimbursed for the storm water ponding expenses. Heather Worthington, Ramsey County Deputy County Manager, provided the Council with a financial presentation that was made to the County Board a week ago regarding TCAAP. She discussed the number of developable acres as being 347. She explained how this number would be broken down between the various uses based on the current Master Plan. Councilmember Holden commented that the bar chart was quite difficult to read. Ms.Worthington apologized and explained the chart in further detail with the Council. Mr. Ruff reported that the County has the most concern with the storm water and mass grading expense at this time. Ms. Worthington discussed the sources available for financing between the City and the County based on the JPA. She reported that the County has not assumed any type of financing. She then reviewed where resources could come from. She reiterated that the proposed numbers were for discussion purposes and were not final numbers. She noted that the more fees that are charged for TCAAP property,the more unattractive the property will become in the market place. Mr. Ruff stated that based on the current model, if the County does not receive $7-8 million in grants, the project will be in deficit. He anticipated that residential land will be at about $4.00 per square foot and commercial land will be at $6.00 per square foot. He explained that the residential land would be sold over six to seven years while commercial property would be sold over the next 15 years. He stated that inflation may or may not happen over that time. Ms. Worthington indicated that the County has been trying to be as conservative as possible when estimating expenditures and revenues. Councilmember Holden hoped that the land value will be higher once the development is up and running. Councilmember Holmes requested clarification on the difference between assessments and fees that will be charged to the land. Mr.Ruff provided the Council with a definition on both of these terms. i ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 19, 2014 6 Ms. Worthington discussed the projected economic impact, property tax assessments, and estimated job creation from the TCAAP property. She believes that the Thumb could support a large number of jobs,has great access and adequate space for parking. Councilmember Holden questioned how long the Council would allow a developer to hold the land after it is sold. Ms. Worthington stated that the County Board has not made that determination. She explained that previous direction to staff has led her to believe that the Board is interested in seeing the land develop quickly. Councilmember McClung thanked Ms. Worthington for her presentation. He requested further information on the pros and cons of offering incentives. Ms. Worthington stated that the County wants to get this development right and feels it only has one chance to offer incentives; and if incentives are offered early in the project, then all the other land will have to be sold at market rate. Councilmember Holden asked if the City is concerned that redevelopment may start in the Thumb. Public Works Director Maurer commented that the County will complete the spine road all at once and utilities will be designed around this project. This will make the entire site ready for development. Ms. Worthington reported that this project became a lot more feasible after receiving$29 million in bonding from the State for I-35W, County Road 96 and County Road H. This investment is notable in order for TCAAP to move forward. She commented that the County is investigating additional economic development requirements and is drafting a Master Development Agreement that the JDA can use. The County is also reviewing commercial and residential land sales. She noted that park financing will need to be discussed further with the City. Councilmember Holden asked how the County will police the TCAAP site in the early phases of development. Ms. Worthington stated that as of right now, the Sheriff's Office is patrolling the site. During development, she anticipated that the patrols will continue. She suggested that the County and City discuss this matter further to determine who will be financially responsible for these additional patrols. Mayor Grant understood that the numbers presented this evening were estimates and would remain so for some time. He requested that those numbers that can be made firm should be reflected within the financial statements. Councilmember Holden stated that even if the cost for park development is as low as $5 million, the City would have to find alternative ways to fund the parks. She explained that this would ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 19, 2014 7 involve speaking with legislators and the City seeking grants. She wanted to be assured that the County and the City were complementing each other and not seeking the same funds. Ms. Kvilvang anticipated that it would be best for the City to seek grant proposals to assist in funding the parks rather than having the County apply for these grants. Mayor Grant thanked Ms. Worthington for her presentation this evening. Then he called for a recess at 7:15 p.m. Mayor Grant reconvened the work session at 7:24 p.m. Discussion ensued regarding the proposed enhancements for the water feature and storm water ponding. Ms. Kvilvang ran through several funding scenarios for the storm water ponding that the City could pursue. She noted that the City could use its utility fund, or bond for the expense. Mayor Grant was not in favor of using the utility fund. Councilmember Holden stated that she would like a more clear definition of what is meant by basic storm sewer and an enhanced storm sewer system. City Administrator Klaers explained that the infrastructure study will provide the Council with this information. The study will break down the basic drainage and ponding work that will be completed by the County or developers and the possible extras that would be funded by the City and the County. Public Works Director Maurer stated that the infrastructure plan would have to be approved by the Rice Creek Watershed District and anything above their requirements would more than likely be labeled as enhancements and would be the City's and County's joint responsibility. Councilmember McClung believed that the County should reevaluate their stance on the water feature. It is his opinion that the water feature would increase the property value for the land near the Town Center and that the County should fund these improvements. Ms. Kvilvang estimated that the water feature enhancements would cost an additional $3.2 million. She suggested that this expense be split 50/50 between the City and the County. However, another option could be to charge a STAC fee on development projects. Councilmember Holden stated that the Council did not want a ditch running through the TCAAP property. She believes that the City will be responsible for maintaining all water feature enhancements. Mayor Grant stated that even without enhancements, the basic storm water ponding expenses will initially be split 50/50 with the County. He recommended that this language be changed so that up front the County will be 100%responsible for the basic storm water ponding. i ARDEN HILLS CITY COUNCIL WORK SESSION— MAY 19, 2014 8 Councilmember Holmes agreed and recommended that the 50/50 funding approach be eliminated due to the fact the County is 100%responsible for this expense. City Administrator Klaers reported that the JPA states that the City will share the financing expense of some of the surface water costs. Ms. Kvilvang reported that she could go back to the County and state that the Council's preference is for the County to finance 100% of the surface water expense, and the City will charge a STAC fee on development that will assist with the repayment of this expense. Mayor Grant indicated that the Council still needed clarification regarding what is considered an "enhancement". Councilmember Holmes believed that making the site more marketable should not be considered an enhancement; and therefore, the expense becomes 100%the County's responsibility. Councilmember Holden commented that the Council has no idea how to make the site more marketable. However, she does know that the Council does not want a ditch running along the entire spine road. Councilmember McClung indicated that the Council may find that because of the amount of water on the TCAAP site, the baseline storm water requirements might equate to something desirable. Councilmember Holden asked if the Council had any time constraints for making a decision regarding this matter. Ms. Kvilvang stated that the Council would have to set expectations, define what risk should be assumed by the City and the County, and determine what items would be the responsibility of the land developers. All of these answers would need to be known prior to the spine road going for bid. Public Works Director Maurer anticipated that the numbers for the storm sewer ponding would become clearer within the next six months. Councilmember Holden questioned what the development fee would be. Ms. Kvilvang stated that she could provide an upper and lower range for the total development fees. Councilmember Holden recommended that the County finance the storm water ponding as this is their responsibility, and that the City will negotiate the shortages. Mayor Grant supported this recommendation and stated that the City still needs to define what was meant by"enhancements". ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 19, 2014 9 City Administrator Klaers stated that the numbers before the Council are a first attempt and he cautioned the Council from making any firm decisions based on these numbers. He understood the Council concerns voiced this evening regarding park expenses and defining surface water management. Councilmember Holmes believed that the Council needed to know what costs the City cannot bond for and what risks would be associated with these expenses. Ms. Kvilvang reported that she could run a model to show the Council the risks. Councilmember Holden thanked Ms. Kvilvang for providing the Council with preliminary numbers. • TCAAP—Residential Development and Densities Community Development Director Hutmacher stated that in April, the City Council was given options for a self-guided development tour to see examples of recent residential developments that offered mixed types of housing. These development projects are relevant to TCAAP because they demonstrate how types of housing can be mixed and how density can be successfully achieved. Community Development Director Hutmacher discussed concepts related to density in preparation for further City Council discussion on the topic. She requested comment from the Council on these residential developments and desired density levels for TCAAP. Mayor Grant believed it would be difficult to provide an exact number because per acre density can be calculated in so many different ways. He questioned if the Council had feedback regarding density. Councilmember Holmes stated that she recently spent time in St. Louis Park at Excelsior and Grand and did not find the mix of retail to be attractive. Discussion ensued regarding the potential mix of uses in the Town Center, along with the pros and cons of vertical and horizontal mixed use developments. Councilmember Holden stated that townhouses have become starter homes and questioned if the TCAAP development would offer life-cycle housing. Community Development Director Hutmacher explained that the mix of housing products has not been determined. She understood that Arden Hills did not currently have a lot of starter/young professional homes. She believed that starter homes would assist in drawing and keeping families in the community. Councilmember McClung wanted to see balanced housing opportunities on TCAAP. Mayor Grant suggested that the market demand be reviewed prior to the Council making any decisions. He wanted to see that the majority of the constructed units be owner-occupied. ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 19, 2014 10 Councilmember Holden indicated that TCAAP would be quite dense, which was a concern to her. Community Development Director Hutmacher discussed the various ways the density on TCAAP could be spread throughout the development. She provided comment on the Maxfield study and how this could be considered over the 15 year development period for TCAAP. Councilmember McClung wanted to see diverse neighborhoods within TCAAP as this would increase property value and curb appeal. Councilmember Holden expressed concern again with the density on TCAAP. She explained that maintenance of TCAAP would be crucial over the next 15 to 20 years in order for the City to continue to draw people into the community. Mayor Grant recommended that the building materials used within TCAAP be carefully considered by the Council to ensure amenities, storefronts, and homes stand the test of time. He suggested that one portion of TCAAP have a lower density option for residents. Councilmember McClung also had concerns with density but stated that he is tolerant of it. He indicated that he could support the maximum AUAR build out. He stated that quality building materials would assist with maintenance concerns in the future. Councilmember Holden commented that she could support the minimum AUAR build out. She believed the Council would have to come to an agreement on this issue before Ms. Kvilvang could begin running numbers. Mayor Grant reported that he was leaning towards the lower density. He realized that TCAAP would not look like the rest of Arden Hills, but he understood the financial numbers had to work. He does not believe that the County should plan to break even on this project. He wanted to see a variety of housing types, somewhere around 1,550 units, and he preferred that the majority be owner-occupied. Councilmember McClung did not believe that the City or County would be able to pull the development off financially at a 1,550 unit build-out. He looked forward to seeing the numbers from Mark Ruff at a future meeting based on the current Master Plan. Councilmember Holden appreciated the mix of housing that was established at the Denver redevelopment project that she visited as it brought together young families and senior citizens. The Council discussed the differences between the current AUAR scenarios and the Ryan plan. City Administrator Klaers reported that the Council did not have to make any decisions regarding density this evening. He noted that the feedback provided is appreciated. 0 TCAAP Flex Space Land Use ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 19, 2014 11 Community Development Director Hutmacher stated that the options for a self-guided development tour included examples of what is being described as flex space land use. This type of land use is also commonly called a business or office park. Development examples were located in St. Paul, Mendota Heights, and Minnetonka and included the following uses: • Medical clinic • Hotel • For-profit educational institution • Office • Warehousing/distribution • Manufacturing • Research facilities Community Development Director Hutmacher reported that in many cases, buildings have a mix of uses such as high-quality office facing the street with manufacturing and distribution uses at the side or rear of the building. During the regulations and policies component of the master planning process, the City Council may want to set zoning regulations that limit warehousing/distribution or other types of uses. Design standards that specify building materials and fagade appearance, screening of truck docks or mechanical equipment, and landscaping requirements would be appropriate. Community Development Director Hutmacher asked if the Council wanted to change any land designations on the TCAAP map. She commented that staff would need to have this information soon as the Master Plan Land Use Map would be considered for approval by the Council on June 30`". Mayor Grant questioned if the Council had any desire to make changes to any land uses. Councilmember McClung commented that he would support a portion of commercial going away. He believed that the City could develop nice commercial space on TCAAP. Councilmember Holden discussed the surplus of commercial and office space that was available in Arden Hills. Mayor Grant did not believe that the Council had any major changes to the land use map. 2. COUNCIL COMMENTS AND STAFF UPDATES Councilmember McClung commented that he may not be able to attend the May 27th Council meeting. ADJOURN ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 19, 2014 12 Mayor Grant adjourned the City Council work session at 8:57 p.m. 116 t;h— Amy Dietl David Grant City Clerk Mayor