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HomeMy WebLinkAbout04-22-24-R AR EN HILLS Approved: May 13, 2024 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING APRIL 22,2024 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 Tom Fabel, Brenda Holden, Tena Monson and Emily Rousseau Absent: None Also present: City Administrator Dave Perrault; Public Works Director/City Engineer David Swearingen; Community Development Director Jessica Jagoe; Finance Director Joua Yang; and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Holden requested Item 81 be pulled from the Consent Agenda to be discussed as Item 9A. MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the meeting agenda as amended. The motion carried(5-0). 2. TCAAP/RICE CREEK COMMONS UPDATE City Administrator Perrault stated the Joint Development Authority has not met since the last Council meeting, nor have any of the advisory committees. There are no new updates to report since the last City Council meeting. Councilmember Holden asked who was working to ensure the City's deficit of$5.5 million is being taken care of. City Administrator Perrault explained the financing pieces of this project have yet to be reviewed by the City Council. He reported the Council has reviewed proformas and estimates, but ultimately the Council will have to review the finances and decide if it was agreeable. He ARDEN HILLS CITY COUNCIL—APRIL 22, 2024 2 indicated the Council will be seeing the proformas at some point before any formal agreements move forward. Councilmember Holden stated according to the Arden Hills spreadsheet, the City will be in a $5.5 million deficit in 20 years. She questioned if this spreadsheet took into account the fact that affordable housing properties would only be paying 25%in property taxes. City Administrator Perrault stated he would have to double check on this, but it was his understanding the affordable housing was not included in the proforma. Councilmember Holden indicated this meant the deficit would be even larger than $5.5 million. She commented on how she had spoken to representatives from Ramsey County and that they were talking about how bad the soil was on TCAAP and that the site may be redesigned by the developer. She inquired if these concerns were valid. City Administrator Perrault explained there was significant soil correction that had to be done. He reported Alatus had engaged with a few consultants to determine if it would be feasible to move the soil onsite or do a redesign. He indicated it was his understanding Alatus was looking at the same plan that has been around for years and they were not looking to redesign the project. Councilmember Holden asked if tax credits were built into the horizontal build out. City Administrator Perrault reported the horizontal build out does not include tax credits. Councilmember Holden stated after reviewing the horizontal build out analysis, it appears Alatus would be receiving a 30% profit margin. She questioned if this was what the JDA was planning to give the developer. City Administrator Perrault commented with respect to the horizontal infrastructure, there was a gap that had to be filled. In recent conversations, the County's financial advisor has asked Alatus what they could bring to the table. Alatus has stated they could bring $10 to $15 million. In return for bringing this money to the table, Alatus was looking for a 2X or 3X return on this investment. Councilmember Holden asked if it would cost an additional $30,000 to make each home electric only within TCAAP. She inquired if this additional fee was built into the proformas and financial projections. City Administrator Perrault stated he did not recall this number being discussed by Alatus. Councilmember Holden reported Todd made this statement. City Administrator Perrault explained the additional $30,000 to make each home electric-only was not built into the proforma. Councilmember Holden questioned if staff had verified what the developer would be donating or putting in-kind to the development. ARDEN HILLS CITY COUNCIL—APRIL 22, 2024 3 City Administrator Perrault indicated Alatus would be putting somewhere between $10 and $15 million into the horizontal infrastructure within the development. Councilmember Holden asked if the plans for TCAAP includes a public works structure for Arden Hills. City Administrator Perrault stated this was not included in the plans. Councilmember Holden reported on March 11 she inquired what the City was allowed to bill the JDA for. She asked if staff had any information on the agreement between the City and the JDA. City Administrator Perrault stated Stacie Kvilvang would be paid for by the City and Bruce Kimmel would be paid for by the County. He explained it was his understanding the JDA would be billed for meeting services which included AV and minutes. Councilmember Holden discussed how the grading expenses for TCAAP had gone up significantly due to the soil corrections that were required. She questioned why the grading in the south had changed significantly and requested that these expenses not be borne by the Arden Hills taxpayers. She inquired if Alatus was trying to avoid the need for wetland credits. City Administrator Perrault reported without knowing the full scope of the soil corrections, he did not believe the scope of the mass grading had changed. He explained he had provided the Council with the plans Bolander had drafted for the site in 2018 and it appears there were some areas where 5 to 15 feet would have to be cut off of certain areas and would be moved to other areas. He believed this was still the same plan for the site. He understood the only major change since 2018 was where the funding for the grading would come from. He stated in the past, the assumption was that the County would pay for the mass grading and would be reimbursed through land sales or property tax revenue and today the County was not willing to fund the mass grading for the site. He indicated these expenditures make up the majority of the gap that was in place today. Councilmember Holden commented previously Alatus had stated they wanted to do the grading since they were completing the development. City Administrator Perrault explained Alatus would have preferred to do the grading in-house had it been financially feasible and they could have done this less expensively, but they are finding it is financially not possible. Councilmember Holden requested staff follow up regarding the mass grading because maybe something else needs to be looked at. City Administrator Perrault stated it was his understanding the majority of the soil in the Town Center area was muck and could not be built on as is. He reported in order to build in this area, soil has to be brought in from somewhere, which was why soil would be brought from one end of the site to the Town Center site. Mayor Grant indicated the financials for this project were far from resolved. He asked if the water tower and trunk utilities would still be financed by the developer and billed back as fees. ARDEN HILLS CITY COUNCIL—APRIL 22, 2024 4 City Administrator Perrault explained this was not the plan going forward. He reported the City had an independent MOU with the developer previously. He stated he would be open to similar terms, but he did not know if this would be feasible today. He commented it was his understanding the trunk utilities and water tower would be financed through assessments and charges. Mayor Grant questioned if the water tower/utility MOU was not enforced, would this mean the parks MOU would also not be enforced. City Administrator Perrault stated it was his understanding the developer intends to honor the parks MOU. He discussed how the developer was working through the horizontal infrastructure first and then would move down the different facets of the development agreement. He indicated it was his understanding the developer intends to honor the parks MOU. Mayor Grant asked if the civic center MOU would be honored. City Administrator Perrault explained he has not had any conversations with the developer regarding the civic center MOU. He reported discussions have not reached this point but would be discussed more in depth after the horizontal infrastructure was determined. Mayor Grant expressed frustration with the fact the City had agreements in place and now it did not. Councilmember Rousseau asked what year the MOUs were executed. City Administrator Perrault stated the parks and civic center space MOU was executed in 2017 or thereabouts. He indicated the utility/water tower MOU was executed in 2022. Councilmember Rousseau questioned when the MOUs expired. City Administrator Perrault explained he did not believe the MOUs had an expiration date attached to them. Councilmember Monson addressed the comments regarding the financial questions. She stated she appreciated how staff responded to the questions. She reported the JDA was working through the horizontal infrastructure costs and would answer these additional questions in the future. She commented the first piece had to be done before moving to the next piece. She indicated time has not been in favor for this project and costs have increased significantly. She reported the County may have been in favor of covering certain costs in the past, but this was no longer the case. She indicated there were other macro issues, such as interest rates, that were impacting the project. She reported the numbers were not set in stone but rather discussions were taking place and the JDA was working through how to proceed with the project. She stated the JDA would continue to work to find a path forward. She commented it was her understanding the energy costs would be on top of the proposed numbers. She reported the proposed numbers do not have the energy vision incorporated. Councilmember Holden understood the group had to work through the first piece in order to move on to the next. She discussed how the project's financials were not simple years ago and things have not changed. She reported the location of the spine road has not changed, the County ARDEN HILLS CITY COUNCIL—APRIL 22, 2024 5 could have put this infrastructure in place and still sued the City, but this was not done. She indicated she had to ask these questions because discussions were being held behind closed doors and she was not receiving any feedback except that the finances were being worked on. She stated she would continue to ask questions about TCAAP because this project would bring significant costs to the City. 3. PUBLIC INQUIRIES/INFORMATIONAL George Winiecki, 4175 Old Highway 10, addressed the costs for TCAAP and stated he had concerns with transparency. He explained it appears there were some sort of inter discussions regarding procedures the Council should follow. He understood there were five Councilmembers and each member represented the residents of Arden Hills. He stated when there was talk about TCAAP costs, he was glad that information was finally coming out. He was of the opinion the. City Council should have some general idea how much this project would cost. He discussed how property taxes, utility costs and general maintenance expenditures were all going up. He encouraged the Council to find some general idea on the costs for TCAAP and that this information be shared with the public. He understood TCAAP would have 1,960 units and some would be rented while others were owner-occupied. He discussed how seniors in the community were seeking rental assistance and other aid due to rising costs. He indicated there was bad dirt and bad water on TCAAP and there could be enormous hidden costs. He urged the Council to look into this further so large expenditures were not handed onto Arden Hills' residents. 4. RESPONSE TO PUBLIC INQUIRIES City Administrator Perrault reviewed staff s response to the public inquiries that were made at the April 8, 2024 City Council meeting. 5. PUBLIC PRESENTATIONS None. 6. STAFF COMMENTS A. Transportation Update Public Works Director Swearingen reported construction at the roundabout at Old Snelling and County Road E resumed last week. He noted the contractor has some concrete work, final paving and restoration work to finish up this spring. He indicated the goal would be to have this project completed by early June. Councilmember Holden questioned how long the tube snakes would remain in place along Lake Johanna Boulevard. Public Works Director Swearingen stated those were sediment catch devices until the grass grows back along this roadway. 7. APPROVAL OF MINUTES A. April 8, 2024, City Council Work Session ARDEN HILLS CITY COUNCIL—APRIL 22, 2024 6 B. April 8, 2024, Regular City Council MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to approve the April 8, 2024, City Council Work Session minutes as amended and the April 8, 2024, Regular City Council meeting minutes as amended. The motion carried (5- 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion To Approve 2025 Budget Calendar C. Motion To Approve Hiring Of Building Inspector/Code Enforcement Officer D. Motion To Authorize City Staff To Begin Summer Work Hours Beginning Tuesday, May 28, 2024, And Concluding On Friday, August 30, 2024 E. Motion To Approve Ordinance 2024-003 Amending Chapter 3, Licenses And Regulations, Section 320 Limited/Temporary Permits And Section 395 Mobile Food Units/Food Trucks And Authorization To Approve Summary Ordinance Publication F. Motion To Approve Resolution 2024-024 Approving A Conditional Use Permit For Lower-Potency Hemp Edible Sales At 3717 Lexington Avenue N (Cub Discount Liquor)—Planning Case 24-007 G. Motion To Approve Proposal For Professional Services For Materials Testing — Braun Intertec—2024 PMP Street And Utility Improvements Project H. Motion To Approvement Appointment Of John Connelly As Board Representative To Twin Cities Gateway Visitors Bureau r. M fie Te Authorize City n a,, inistfat,,-T Sub Letter otter of SuppeA For-Federal z Funding Take T..h a Fire De n.-F,-v e t L7oadq aAe s Pr-ejeet MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the Consent Calendar as amended and to authorize execution of all necessary documents contained therein. The motion carried (LL 9. PULLED CONSENT ITEMS A. Motion To Authorize City Administrator To Submit Letter Of Support For Federal Funding—Lake Johanna Fire Department Headquarters Project Councilmember Holden stated she did not believe this item was appropriate. She recommended this letter of support be signed by the Mayor and City Councilmembers and not the City Administrator. Councilmember Rousseau .questioned what other cities were doing. g Mayor Grant commented on the differences between cities that had a city manager versus a city administrator. City Administrator Perrault stated he was uncertain what other cities were doing. He reported it was not uncommon to have letters of support come from the City Council or the City ARDEN HILLS CITY COUNCIL—APRIL 22, 2024 7 Administrator. He explained his intention was to have the Council's signatures on this letter, and he would handle this matter however the Council would like. Councilmember Monson indicated staff was seeking support from Council to submit a letter of support for federal funding. She noted there was a very short timeframe to draft and send this letter. She agreed the Council should sign the letter. Councilmember Holden appreciated the fact the Council would be signing the letter. Mayor Grant agreed noting the signatures would show the document had unanimous Council support. Councilmember Monson noted that just to be clear, everyone was in agreement that the letter would come from the City Council, and she asked Councilmember Holden for clarification regarding if she was requesting there be another meeting to approve the letter. She wanted to make sure they were all on the same page. Councilmember Holden reported she was not making this request. Rather, she was asking that the Council sign the letter of support. MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to Authorize City Administrator To Draft a Letter Of Support For Federal Funding — Lake Johanna Fire Department Headquarters Proiect to be Signed by the City Council. The motion carried (5-0). 10. PUBLIC HEARINGS None. 11. NEW BUSINESS None. 12. UNFINISHED BUSINESS None. 13. COUNCIL COMMENTS Councilmember Rousseau commented the City received an $18,000 grant from Twin Cities Gateway. She suggested the City reach out to the Mounds View School District and Bethel University to see if they were hosting any events where this funding could be utilized. Councilmember Holden agreed with this recommendation and suggested the City also reach out to Beyond the Yellow Ribbon to see if the National Guard could be supported. Councilmember Holden explained the City used to have thank you notes though the card had an old City Hall number printed on it. She questioned if staff still had these thank you notes available for the Council to use. ARDEN HILLS CITY COUNCIL—APRIL 22, 2024 8 Assistant to the City Administrator/City Clerk Hanson agreed the City used to have thank you notes and stated she would check on this. She indicated more could be ordered. Councilmember Holden requested this item be brought up at a worksession to ensure thank you notes could be printed for Council use. Councilmember Holden reported she watched the last Council worksession because she had to leave at 6:30 p.m. She stated it was her understanding a policy for proclamations or commissions was not agreed upon. She indicated she was uncertain what the policy was for this and asked that this item be brought back for further discussion at a future worksession. Councilmember Holden explained she recalled the Council had discussed the proclamation policy in February. She stated the Council talks about working together but she was uncertain when the proclamation policy was to be discussed and how this could be done when the new Councilmembers were taking away duties from the Mayor, or when all of the non-slate Councilmembers were removed from committees, or not even allowing the existing Councilmembers to place items on the agenda. Councilmember Holden reported last week she was at the Capitol speaking with a friend about House File 4010 and stated the City would have to send a letter in. Her friend responded that Arden Hills had already sent a letter in. She explained she did not understand this but had learned City staff had reviewed the House File and submitted something on behalf of the City Council. She wished she would have known that because now it appeared the Council was losing the trust of the legislature. She indicated she never saw the letter that was sent to the legislature, nor was this matter discussed. She said at the last meeting, she asked if the Council could put a letter together and it was stated that at that point, there was just casual conversation being had. She noted she wasn't sure what the truth is or how to back pedal to see if the Council agrees with everything that was said. She pointed out that we is considered to be the City of Arden Hills. She expressed frustration and said actions like this was not"working together". Councilmember Monson explained at the last meeting Councilmember Holden asked about earmarking federal funding for the fire station. She reported Betty McCollum's office had been contacted and the earmark process had not opened as of yet,but the City was waiting. Councilmember Monson thanked the members of the public who attended the franchise fee open house last Saturday. Councilmember Monson reported she was open to finding alternative uses for the Twin Cities Gateway funding. She supported the City offering these funds to the high school and the National Guard. Mayor Grant stated the military has a fun run that was open to military families and the public. He indicated this event may be a good option for the Twin Cities Gateway funding where the City could partner with the National Guard. Mayor Grant explained it was his understanding kayaks could be rented at Tony Schmidt Park by an outside organization and this organization wants to build a locker vending machine for the kayaks. He reported Tony Schmidt Park was not a City park and this could not be authorized by the City. ARDEN HILLS CITY COUNCIL—APRIL 22, 2024 9 Mayor Grant stated the proclamation discussion never did get ironed out by the City Council at their last worksession. Mayor Grant explained Ramsey County's 911 Dispatch Policy Committee met last week where the group elected him Vice Chair. He commented further on the appropriate response initiative that was being pursued by Ramsey County. City Administrator Perrault stated staff did not receive direction to draft anything regarding support for the middle housing. He indicated it was his understanding the Council has not taken an opinion on this matter and nothing from staff was sent directly to legislators that would represent the City Council's opinion on the matter. City .Administrator Perrault encouraged the Council, under the new procedures that were. in place, to add the discussed worksession agenda items at the subsequent worksession meeting that will be held after the adjournment of this meeting. ADJOURN MOTION: Mayor Grant moved and Councilmember Monson seconded a motion to adjourn. The motion carried (5-0). Mayor Grant adjourned the Regular City Council Meeting at 7:52 p.m. Ju Hanso David Grant Ci Clerk Mayor