Loading...
HomeMy WebLinkAbout06-10-24-R It �S HILLS Apprmvd: July 8, 2024 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING JUNE 10, 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 Dave Swearingen; Community Development Director Jessica Jagoe; and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Holden requested Item 8C be pulled from the Consent Agenda for further discussion as Item 9A. Councilmember Rousseau requested Item 8B be pulled from the Consent Agenda for further discussion as Item 9B. MOTION: Councilmember Holden moved and Councilmember Monson 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, neither have either of the committees. Currently, we are waiting on an update from Alatus on their discussions with a private developer, they are slated to meet later this week and then provide an update to the City and County following the meeting. On another note, the City Council met jointly with the City of Mounds View's City Council, and among the topics was a premiere sports facility that would involve a private/public partnership. The group is also meeting with Alatus this week about the possibility of the complex on Rice Creek Commons. ARDEN HILLS CITY COUNCIL—JUNE 10, 2024 2 Please note, they are still significant financial and development agreement items to be worked through regardless of the sports complex. Lastly, the next JDA meeting is slated for July I st, it is still being decided whether or not to hold that meeting, cancel it, or reschedule, watch the City's website for updates on the meeting. Councilmember Monson thanked City Administrator Perrault for all of his efforts with County staff. She explained the JDA has not met recently. She noted there was a $40 million gap in funding for this project for soil correction and mass grading. She indicated this cost is typically assumed by the landowner and developer and this was agreed to by the County in the past. However, now that the County was in a different financial situation, the JDA was seeking other options for covering this expense. She explained the County was uncomfortable with bonding for this expense in the event the development does not move forward. She stated the JDA was seeking solutions to find financing. She indicated a TIF bond that was administered by the City was considered. She reported as the JDA representative, she did not believe this would be a wise decision for the City. She commented that a tax abatement structure was also considered and has not gotten traction given the up-front costs. She indicated alternate financial solutions were still being considered. Councilmember Fabel stated all discussions regarding finances have been held between City and County staff and the JDA has not been a part of the discussions. He explained there has been tremendous increases in infrastructure costs and interest rates have skyrocketed. He reported the County has come up with other objectives for their funding which means the JDA has not seen a manner in which to address the $40 million funding gap. It was his hope that a solution would be brought forward from the County or the developer. Until a solution comes forward, the project was at an impasse. He commented on how in the last year, it was determined some of the soil needs remediation, which would require additional funding. Councilmember Holden asked if the City was overbudget with Ehlers. City Administrator Perrault reported this was the case. Councilmember Holden questioned if staff had any other reports from Ehlers. City Administrator Perrault stated the Council has all reports that have been distributed from Ehlers. Councilmember Holden stated she understood one of the proposals from the County would have the County putting $10 million into infrastructure and the City would put in $10 million. She questioned if the County saw a problem with this given the different sizes of budgets for each entity. City Administrator Perrault explained this was just an idea that was spit balled. He reported the County wanted to have both the developer and the City to have skin in the game to help fill the gap. Councilmember Holden indicated the County has expressed concern with funding the $40 million given the fact the project could stall. She stated this was the same reason the City was asking for utility protection. ARDEN HILLS CITY COUNCIL—JUNE 10, 2024 3 City Administrator Perrault stated he has made this point to the County. Councilmember Holden clarified for the record that the City Council was aware in 2016 that the soil under Town Center would have to be remediated. She indicated the County had this information when they purchased the property. She commented on how the County was supposed to sell the property to the master developer and the developer was to complete the mass grading. City Administrator Perrault reported the short answer was the City does not know. He explained if TIF and abatement were not options for this project, the project may stand still, unless a private partner equity piece were to work out. He stated if this option were to move forward, then the land would be taken down in one transaction. Councilmember Holden indicated the spine road has not moved at all and the County had funding from MNDOT to complete this roadway, which has now been forfeited. She questioned if the County would be going after additional funding from MNDOT for this portion of the project. City Administrator Perrault explained the County may have checked some of the boxes on the project, and he was uncertain if the funding had been forfeited. Mayor Grant thanked Councilmember Monson for her comments. He stated he was not aware that TIF was being discussed. He reported the muck on site goes back to 2017. He reported if the County were to ask the City to contribute $10 million, this was slightly less than two years' worth of a levy. He noted the County levies close to $1 billion in two years. He explained the County has been discussing a funding gap for quite some time. He noted the County paid $28 million for the property, of which $6 million was given to the Army and $22 million to Bolander to clean up the property. He stated the County claimed there was a gap of$17 million years ago and he did not understand why this gap consisted of. While he understood costs and interest rates were on the rise, the idea of a funding gap was not new to this project. Councilmember Monson indicated the County has not asked the City to put $10 million into this project. City Administrator Perrault clarified this was not a formal request from the County, but rather an idea that the County put in $10 million and the City put in $10 million. He noted this was a comment made in passing. Councilmember Monson stated she was not following the $17 million gap statement from the Mayor. She indicated the question remained who was going to pay for the mass grading. Mayor Grant reported the County purchased the property for $28 million and shortly thereafter the County identified a funding gap of$17 million. He wasn't sure if this was a legal expense. He reiterated that the County has always identified a funding gap for this development. Councilmember Monson stated the County was previously going to cover the mass grading expenses and now they were no longer willing. City Administrator Perrault reported in 2024, there was clear accounting of the $40 million gap. He explained the $40 million of site work has always been understood and in 2018 the County had agreed to fund this and now they were not willing to. ARDEN HILLS CITY COUNCIL—JUNE 10, 2024 4 Mayor Grant asked if the developer was going to do the mass grading initially. Councilmember Holden stated the developer had wanted to do the mass grading, but the County insisted on doing this work. She questioned how much revenue the County took in from the timber and dirt that was sold while cleaning the site. Mayor Grant indicated the County had not provided this information to the City. 3. PUBLIC INQUIRIES/INFORMATIONAL Linda Swanson, 1124 Ingerson Road, stated she reviewed Council Comments from May 28 and she was shocked by Councilmember Fabel's statement noting she and Mark were "poorly educated" and "consider the source and the source being what they are". She assured Councilmember Fabel that she and Mark were not poorly educated. She reminded Councilmember Fabel that he was to represent Arden Hills residents and not degrade them. She understood Councilmember Fabel was old, but someday he may learn how to treat people with social grace. She discussed how the slate has used their quorum status to eliminate duties from a duly elected mayor. She believed this was disrespectful to the residents that elected him. She reported Councilmember Holden has been dealing with family medical issues that keep her from meeting prior to 5:30 p.m., but the slate keeps pushing to set 4:00 or 5:00 p.m. meeting times. She expressed concern with the fact the slate brought in County sheriffs to escort residents from the podium. In addition, she was concerned with the fact the slate could not be objective as to why TCAAP was stalled and placing blame on prior Councilmembers. She suggested the slate speak with former Councilmembers in order to obtain further history on the TCAAP project. She did not appreciate the fact the slate would not permit anyone to serve as a Council liaison except the slate. She understood the slate recommended an increased unit number for TCAAP to the Planning Commission and without review of the community surveys and feedback. She explained TCAAP would be a financial risk to the City for the next 20 to 30 years. She stated the Mayor has spoken to his tenure as Mayor. She then spoke to Councilmember Holden's accomplishments noting she has brought in millions in State bonding money and has protected the manufactured home community. She noted Ryan Companies requested Councilmember Holden go to Washington DC to save the TCAAP project. She stated TCAAP was balanced under the previous Council and not a major financial risk. She encouraged the slate, before they started pointing fingers, to start looking at themselves. Mark Kelliher, 3712 Chatham Court, stated he has been in front of the Council twice in recent months. He explained he discussed how the Councilmembers who supported 1,960 units within Rice Creek Commons may have violated their fiduciary responsibilities. More recently, because of the snarky and disrespectful response he received from Councilmember Fabel, after expressing his viewpoints. He stated he has since sent Councilmember Fabel an email with a short list of clear questions that he should have been able to answer if he indeed was following the path of a fiduciary. He reported Councilmember Fabel's response to the email left him breathless. Councilmember Fabel refused to answer the questions and instead painted a false picture of the past. He stated facts were a stubborn thing and unless key facts have been withheld from him, the Councilmember's attempts to paint a false narrative was disingenuous and misleads the public. He noted Councilmember Fabel then went on to threaten him with action if he continued to pursue the truth as Councilmember Fabel found this inconvenient and annoying. He reported threats like these were attempts to squash his first amendment right to free speech. By threatening to curtail his right to speak, this Councilmember provided further proof that Councilmember ARDEN HILLS CITY COUNCIL—JUNE 10, 2024 5 Fabel does not have the City's best interests at heart. He encouraged the entire City Council to take Councilmember Fabel aside to explain to him what he as a lawyer should already know, namely, the first amendment should not be a doormat that Councilmember Fabel gets to trample just because he finds that stubborn facts continue to plague his actions and votes. Because Councilmember Fabel is a lawyer himself, it is shocking that there is a need, but perhaps Councilmember Fabel could receive a primer from the new City Attorney on the importance of the first amendment as well as the role of a fiduciary. Without the benefit of Councilmember Fabel understanding these two important issues, the City is at grave risk. Lastly, he thanked Councilmember Monson for her candid update. 4. RESPONSE TO PUBLIC INQUIRIES Mayor Grant provided a response to a public inquiry that was made a month ago when a resident stated he should be a better Mayor. He reported at the last City Council meeting, he listed the programs that had been completed during his tenure as Mayor. He indicated this was the start of his 24th year on the City Council and 14f year as Mayor. He commented on how he valued people and recognized talent. He then addressed City Administrator Perrault noting he began in the finance department and after being recognized for his talent he was promoted to the Finance Director. After receiving a master's in public administration and business administration, a previous Council appointed Mr. Perrault City Administrator. He believed this spoke volumes to the previous Councils he served under. Mayor Grant reported Ms. Hanson came to the City as a Deputy Clerk and Council promoted her to City Clerk. He discussed how Ms. Hanson was working on her master municipal clerk certification and thanked her for being a valuable member of City staff. Mayor Grant explained Mr. Swearingen came to the City as an engineering tech. He indicated he moved to Assistant City Engineer and was now serving as the Public Works Director/City Engineer. He commended Director Swearingen for advancing up the ladder as well as the previous Council for acknowledging these efforts. Mayor Grant stated Ms. Jagoe began with the City as a Senior Planner, was promoted to City Planner and now serves as the Community Development Director. He believed it spoke well of him and previous Councils for recognizing and hiring talent for the City of Arden Hills. He explained he was very proud of the staff members that have been promoted and stayed with the City. 5. PUBLIC PRESENTATIONS None. 6. STAFF COMMENTS A. Transportation Update Public Works Director Swearingen reported the 2024 PMP street improvement project would have a road closure on Wednesday, June 12 at the intersection of Royal Hills Drive and Snelling Avenue North. He explained advanced signage was put in place and noted the closure should only last several days. ARDEN HILLS CITY COUNCIL—JUNE 10, 2024 6 Councilmember Holden asked if the retaining wall on Lake Valentine Road had been reviewed by staff. Public Works Director Swearingen stated the retaining wall was ugly, but he believed it could last a few more years. 7. APPROVAL OF MINUTES None. 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B.Motion T Approve n,. ee 2-024 00-�4-zArmending Chapter 2, Seet on 220, c 22n 04 And of The Artie Hills City Code (Ye„+tn 7$eEt�6rr�i.s���xc�c���--v�rri�rs 9 a Commissioners And Committee Member-s) C. Motion T A e Agreemeffc-Fet: Jega4 Se 4ee's With LeVander-, !`_;llo,. P, f M lle D A Tnv rcr. D. Motion To Approve Resolution 2024-030 Appointing Katie Stromberg As Planning Commission Alternate E. Motion To Approve Payment No. 1 — S.M. Hentges & Sons, Inc. — 2024 PMP Street And Utility Improvements Project F. Motion To Approve 2024 Sanitary Sewer Root Treatment Contract 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 (5-0). 9. PULLED CONSENT ITEMS A. Motion To Approve Agreement For Legal Services With LeVander, Gillen & Miller P.A. Councilmember Holden stated she would be voting for this item in protest. She explained when attorney interviews were conducted Amy Schmidt, who had worked for Ramsey County at one time on Rice Creek Commons, was told she could get a waiver and represent the City. She noted that one of the main attorneys that had represented the City during mediation with Ramsey County regarding Rice Creek Commons, Sam Clark, was hired by the County and was Amy's boss at the time. However, it did not feel like a real partnership when the County hired someone that had represented the City but then someone they said they would give a waiver in order to represent the City was pulled back and the City had to go through interviews again in order to hire another attorney. MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to Approve Agreement For Legal Services With LeVander, Gillen & Miller P.A. The motion carried (5-0). ARDEN HILLS CITY COUNCIL—JUNE 10, 2024 7 B. Motion To Approve Ordinance 2024-004 Amending Chapter 2, Section 220, Subsections 220.04 and 220.05 of the Arden Hills City Code (Youth Commissioners and Committee Members) Councilmember Rousseau stated she would not be voting for this item. She indicated she did not believe this ordinance amendment was necessary. She explained the ordinance change may set a precedent regarding including youth commissioners/committee members that apply to be on a committee or commission through the youth application process. She noted there was currently an extra member on the Economic Development Commission that had applied through the youth process and it is because that commission was resurrected in 2023. She stated she would like to see terms that were cycled to ensure members were not moving in and out all at the same time. She went on to say that this is why they brought in a second person that had applied for the youth position in that aspect. She then said the PTRC has 13 seats and adding an additional member at the time seemed like an opportunity to fill a seat that we had trouble filling before. She recognized there needed to be a balance, but she did not believe representatives had to be appointed by their age, but rather continuity should be considered. She indicated the Council has not surveyed any of the high schoolers that have applied for a youth commission position and the Council may find the process needs to be improved or additional support may have to be offered. Councilmember Monson asked if there were more than two members on the EDC and PTRC that met the youth criteria. Councilmember Rousseau stated there were two members total, one in a youth role and one in a non-youth, regular member role for both the EDC and PTRC. Councilmember Monson reported the proposed ordinance amendment would not impact these members. Councilmember Rousseau understood the amendment would not impact the members today but noted that we do not ask for ages when we interview people and realistically, high school students could apply under the standard application process. She said it's nice to say we are making space for someone that is looking for a one-year commitment versus someone that is planning to go off to college in a couple of years. Councilmember Holden indicated the EDC has nine members, two of which were now 15 or 16 years old. She stated this meant 25% of the vote on the EDC was coming from youth members. She supported the EDC having proper representation from business owners in the community. She explained she would be supporting the proposed ordinance amendment. Councilmember Rousseau commented that the EDC does still have one open seat and one of the youth members serving on the EDC does have their own business. MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to Approve Ordinance 2024-004 Amending Chapter 2, Section 220, Subsections 220.04 and 220.05 of the Arden Hills City Code (Youth Commissioners and Committee Members). ARDEN HILLS CITY COUNCIL—JUNE 10, 2024 8 Councilmember Fabel stated he believed the Council wanted to have young people involved in some of its commissions and committees. He indicated this was why he supported the ordinance originally. Councilmember Monson reported this was the intent, but then there were concerns about having too many youths on the commissions and committees. This led the Council to direct staff to draft an Ordinance to allow for no more than two youth members on each commission or committee. She indicated she would continue to support youth on the City's commission or committees but supported there being balance. Mayor Grant agreed the proposed ordinance would offer balance. The motion carried 4-1 (Councilmember Rousseau opposed). MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to adopt Ordinance 2024-004 and Approved Publication of Summary Ordinance 2024-004. The motion carried (5-0). 10. PUBLIC HEARINGS None. 11. NEW BUSINESS None. 12. UNFINISHED BUSINESS None. 13. COUNCIL COMMENTS Councilmember Rousseau deferred starting her comments to Councilmember Fabel. Councilmember Fabel responded to Mr. Kelliher. He reported Mr. Kelliher made accusations and insults to the Council. He noted he could put up with a portion of this, but when it gets to slander then it has gone too far. He indicated Mr. Kelliher has a different opinion about Rice Creek Commons than he, Councilmember Monson and Councilmember Rousseau. He commented on the lengthy phone conversations he had with Mr. Kelliher regarding Rice Creek Commons, noting this occurred on two separate occasions. He stated Mr. Kelliher then showed up at the April Council meeting accusing him of having no fiduciary responsibility. He reported the statements made by Mr. Kelliher about how this project would lose millions and millions of dollars were false and he thanked City Administrator Perrault for responding to Mr. Kelliher's comments. He explained an email was sent to Mr. Kelliher stating in the long term the City breaks even and the project does not result in a loss for the City. He reported Mr. Kelliher returned to the City Council meeting at the end of May with more accusations on how some Councilmembers were not properly representing the City. He indicated he chose not to respond, except making the comment of consider the source, noting Mr. Kelliher continued to make comments after receiving an email from Mr. Perrault explaining the truth of the matter. He stated he received a lengthy email from Mr. Kelliher again last week in which he asserted the same false arguments and that included a series of insults. Following this, he responded that he was tired of the insults, ARDEN HILLS CITY COUNCIL—JUNE 10, 2024 9 accusations and that the discussion should discontinue. He explained he suggested he make public the email from City Administrator Perrault in order to bring the truth to light and Mr. Kelliher took this as a threat. He presented to the City Clerk the email from Mr. Perrault to Mr. Kelliher dated Friday, April 12, 2024 and asked that it be made part of the public record. Councilmember Fabel explained the City has had two nice graduation ceremonies at Irondale and Mounds View High Schools. He extended his congratulations to each of the recent graduates. Councilmember Holden reported she struggled with understanding Councilmember Fabel's comments knowing full well that he supported other residents making false statements against the Mayor and herself. She stated she had a great working relationship with the City's consultants and developers. She indicated when Ryan Companies was developing the TCAAP site she was asked to fly to Washington DC with them to meet with GSA and the Army. She commented she also served on the NYFS Board for over 10 years. While she did not like anyone on the Council to be picked on, she also believed residents had the right to speak. Councilmember Holden indicated she was concerned with the fact there have been five Planning Commission meetings this year and the Council liaison has only attended one of the meetings. She suggested another Councilmember be appointed in order to have a liaison in attendance. Mayor Grant stated he and Councilmember Monson would be meeting with Xcel Energy on Tuesday, June 11 to discuss the Partners In Energy program. Mayor Grant explained he found Councilmember Fabel's comments interesting that TCAAP would break even or even come out positive. He reported in light of staff s conversations with the County, a funding gap was real and a solution has yet to be found. He discussed how TIF would be a difficult option for the City. Mayor Grant stated the Arden Hills Foundation sponsored a scholarship for a Mounds View School District graduate. He noted this scholarship was presented to an Arden Hills resident this year. Councilmember Rousseau stated the committee and commission members were volunteers that work to make the City better. She believed their experience should be positive. She encouraged residents to treat these volunteers with respect. Councilmember Rousseau explained she missed three Planning Commission meetings this year, noting she missed one because she was attending a Council worksession to meet with Amy from the LMC. She indicated she missed another meeting because there was only one item on the agenda that was then placed on Council consent. Councilmember Rousseau reported two PTRC members would like to add a communication on rain gardens to Night to Unite packets. She indicated the PTRC members would be meeting with neighborhood captains and Ramsey County deputies on Wednesday, July 17. She asked if this was something the Council could support. Councilmember Holden stated she would support this. ARDEN HILLS CITY COUNCIL—JUNE 10, 2024 10 Councilmember Rousseau explained the PTRC would also like to put an article in an upcoming City newsletter as well. Councilmember Rousseau asked if the Perry Park bathroom lock was installed. Public Works Director/City Engineer Swearingen stated this would be completed the third week of June. Councilmember Rousseau welcomed Katie Stromberg to the Planning Commission. Mayor Grant indicated he also went through the rain gardens in the Glen Hill neighborhood and he believed they were working quite well after the two 2" rain events. He recommended the thistles within the rain gardens be removed given the fact they were a noxious weed. ADJOURN MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to adjourn. The motion carried (5-0). Mayor Grant adjourned the Regular City Council Meeting at 8:17 p.m. c i Jul' Hanson avid Grant Ci Clerk Mayor