Loading...
HomeMy WebLinkAboutCC 12-30-1991 , ',. MINUI'ES OF THE AlDEN HILLS RmJLl\R CXlUNCIL MEE:1'ING M:lNDAY, D~30, 1991, 6:15 P.M. - CITY HALL .-' ~ ,'. hI CALL TO ORDER Pursuant to dua"call ani ~"~eof, Acting'. Mayor Malone calle:1 the meeting toVLl!tle:: at 6:15 p.-. ;:1' I ,.;.r- 1('~. i, 1", ROLL CALL llie roll ~ calle:1 the fon~4nembers,lrlere pr~: Actin:r Mayor' Malone, Councilu...dI:AS. Y:oAnn~. '1bat1l'is. Mahowald ani Dale Hicks. Mayor Sather arrive:1 at 7:30 p.m. Al;soPtU CAtt:iorneY Jerry Filla, Park Director John Buckley, Public WOrks ~.Dan Winkel" Clerk Administrator Gary Berger ani Dep1ty Clerk eathei-ine Iago. ;,'t.;.,';.,"" I.Y', ,.,",tn,:':,' ",':<-,: PERF. EVAL.; eouncil1nember conducted the ~l pei::fo~~ PARK DIRECroR for Park Director Jctm Buckley between 6:15 ani 7:15p.m. \~. _ it ~~- .':"':;:;.'J' '.";, Mayor Sather arrived ani Council reoonvened for the regular meetin:rat7:30 p'" >',1"-,' /"..:'",-) .'t:~.: . :',; - - : ,: ::~,~ ADOPr Malone~, secorrle:1 by ~, toi~ the ~~ 30 .' AGENDA agerda. ~ion carrie:1 unanllnously'~ (5-0) . ", N~'" .~,'~: '::9~"~}'; APPROVE Growe moved, seconclErl by ~d" ~i,app~;the minutes MINUI'ES of. the November 25 ani ~ 9 RegIllar~l . meetin:rs, as suJ:mitte:1. Mob.on carried unaniilpusly. (5-0) :.~ C' ,,'d2i,fi<t:'=',' -' CONSENl' Council1nember Mahowald ~oned tj1e \p~~:ef'. ' CALENDAR of Item 5(g) urxier the C?,I;1:'f;rt\eal~;, ~l~'tft:is'{. item be moved to the ''Ql:l.(~/New.'''inelsS'';~:'of' the agerda since it relates to the expiration of 'the PUD a~~ for ttlntirJent'.al ~. Development. - ~ :,:",~';r' ~ ""it"':"!: t.r is:'> J'-:~'.'~.:"r:,,; CIerI; ~st.:ator ~er ~laine:1 the ~:S~1~in:r tQ,~ion ~ . pernuts lS an infonnatlonal 1tem ani Counc1l a=J'l-1> pot ~;\l,He ~'\' the expiration notices for the plannirr:J cases . d):JehallUe:1 ,gdnLstrati;vltly", ani staff has discnsse:1 the memoraroum with the respectiVEi'" Waill1in:J aftlJ,icants. "fi~, '.' ~,l.; :T-" -~l\:'A~-1 ::~-::1".o J'x~i:~- }..,"";,:; 'r:" CouncilInemOOr Malone referre:1 to Iten 5 (C),~ppt*~aj;~'"~k"Siredtor<ori ~=::s~ ~t~~eMa~~~:~~~:~~~; the September 9 Council WOrksession minutes, was to ~Wdl'lllatilllP lltiidl,., .. outline:1 that portion of direct costs of the programs which 1IJI!!:'e, l*idby fees. Hi~II~~r~W!of4i~the.eonsent Calemar as suJ:mitte:1 ani ~uthofii~J.'" ':rOtidf altone":~,' =ntaine:1 therein:." .' '.,.,;. a. Adopt Resolution No. 91-72;-~i~\M-I~r~ ~ ~;~;th. b. .~..;es ==11~:2;:~~ =~~~':" .~ p',':', .~, ,'~~~affuJ'f.o' 'Pi~u'~.' c. d. Approve Request to SohC1tl,;,;'Viiit~~"""J"\\O;'i e. Sche:1ule Special Coordl ~1" 'op\J!:m,,;: .:, - :'~~~i"ry2,~992.i f. ~~: ~~d=e:e~~l{o~~~ p~~i~ g. ProJects - '_'::___-i,' t....~~:':'-.;,',;.~'n' h. Ap ~oval.Final Pa EStima~"tm~~'Mf~looa~~. - i. I? y, ' "'.. ,....,...'",Y Approval List of Cla:inlS am Pi:lyrtllili." .", -- Motion carrie:1 unanllnously. (5.:.0) , Minutes of the Arden Hills Regular Council Meeting, 12-30-91 Page 2 I PUBLIC ~ nick Petersen, 3322 Katie Lane, ~essed interest relative to the proposed merger of Arden Hills and the city of Shoreview. He stated his OWOSition to the merger and requested Council ccmnnents on the proposal. Petersen advised he was an observer when the original corporate documents of Arden Hills were drafted. Mayor Sather e>q>lained the fo:rmer Mayor of Shoreview had made the suggestion at a Shoreview Council meeting. He advised such a merger does not appear to be beneficial to the city of Arden Hills and CouncilmeInbers have not e>q>ressed interest in discussing this matter. REQUFSl' TIF Council was referred to the memorandum fram the Clerk FINANCING ; Administrator dated 12-24-91 and attachments, relating to NORIH RIDGE the request for Tax Increment Financing for the North APARIMENI'S Ridge Aparbnent OCIIIplex development, Continental Development Corporation. Charles Cook, President of Continental Development Corporation, e>q>lained the project received POD approval from Arden Hills in January 1990. He advised that the carq;mly aggressively searched for conventional financing for the project for approxilnately one year, without sua::ess, and has now applied for HUD financing. Cook stated that HUD acx:epted the application in May of 1991 and issued their fornal conditional commitment on october 28, 1991, which is a smaller mortgage amount than initially anticipated. Ii'! " .':';. ... Cook advised there is no risk to the city under the TIF program and the city assistance is provided on an annual basis, payable only if the project pays it's - property taxes. He reviewed the proposal and discllssed the handouts presented to CouncilmeInbers relating to the feasibility of the project, the financial structure of the HUD insured mortgage and a cost estilnate infornational sheet. Councilmember Mahowald questioned what percentage. of occupancy is necessary to insure the feasibility of the project. -'! 1 S ,', <~, Cook indicated the project requires approx:iJnately 80 percent occupancy to "break evenll. Council referred to the "Sources and Uses" ,sheet distrihrted by the developer and questioned how the "Builders and ~::PtOfit and Risk"'lifle item is ,. calculated. J'~, Cook advised the figure is estilnated by HUD. Financial Consultant James Casserly explained that HUD only allows the amount calculated to be taken from the projeCt, if this amount is'initially put into the project. , Casserly e>q>lained that HUD is nomally comfortable that the market will support a project before granting approval for financing. He further stated there is no - risk to the city and all dOCllJl1eIltation could be designed with language to insure no risk to the city. -- 'Ihere was discussion relative to the feasibility of the project and why conventional financing is not available for the project. , , , ,. Minutes of the Arden Hills Regular Council Meeting, 12-30-91 Page 3 I TIF (Cont'd) Cook explained the 1986 Tax laws reduced incentives for development and rates would have to be raised awrox:illlately 10 percent for the project to be economically feasible to a developer. He irxlicated the project amenities would have to be removed to keep the rents reasonable and :make the project econanically feasible for development. Cook irxlicated the savings and loan crisis and other factors contriJ::uted to the difficulty in the lerrling market. Council asked the Financial Consultant to conunent on the proposal. Casserly advised it is difficult to predict the success of this type of project, however, based on his experience in the northern sul::m'bs, it appears that all multifamily projects have been carrpleted with assistance and he is not able to predict when the market will change. He further stated that the City is secured for any type of participation, asslUIling the developer's market data is a=ate. Casserly suggested Council consider whether = not the project makes good sense f= the community and if the City wishes to participate in assistance f= this project. eouncilmember Malone expressed a preference for the developer funding the project, rather than the City sumiclizing the project; irxlicated he is open to further discussion on the matter. I eouncilmember Mahowald favored the project and the TIF assistance. He noted it appears the City is fully protected and the project was initially awroved by the City. Councilmember Growe stated her initial response was opposition to the project, however, she remains open to further discussion. Mayor Sather favored development without assistance. Attorney Filla advised the project was initially approved in December 1989 and a one year extension, as required by City Code, was granted in November 1990. He advised the Code does not permit any further extension of approval and the proposal should again be reviewed by Planning ConmIission. Filla suggested the project be forwarded to Planning ConmIission and reviewed by Council in January or February 1992. 'Ihere was discussion relative to drafting language in the development agreement for the project to insure the "no risk" factor for the City. eouncilmember Malone advised he would prefer the city allow development cx:cur in the open market rather than participate in TIF assistance. Financial Consultant Casserly explained at this time Council action would be to approve the concept f= TIF financing and an agreement would then be prepared for review at a future meeting. I Attorney Filla explained that Council approval of the concept does not automatically insure approval of the financing package or the right to deny the request at a later date. " Minutes of the Arden Hills Regular Council Meeting, 12-30-91 Page 4 I TIF (Cont'd) MahcMald moved, seconded by GrcMe, to grant prelllninary approval of the request for Tax Increment Financing assistance for the North Ridge Apartment development and direct the City Attorney and Financial Consultant to work with staff to prepare a redevelopment contract for review and consideration at a future Council meeting. Motion failed. (Mahowald, GrcMe voting in favor; Hicks, Malone and Sather opposed) (2-3) RES. #91-73; Council1nember Malone requested this matter be tabled for AOOPI' 1992 BUDGE!' discussion at a future meeting. Malone moved, seconded by Hicks, to table action on this matter to the January 2, 1992, Special Council meeting. Motion carried unaniIrously. (5-0) RES. #91-74; Council was referred to a rneIlKlt"andum from the Clerk 1992 cn1PENSATION Administrator dated 12-26-91, outlining the 1992 PLAN, NONUNION Compensation Plan for Non-union Einployees. EMPLOYEES Malone moved, seconded by Growe, to adopt Resolution No. 91-74, AOOPI'ING'lHE 1992 cn1PENSATION PLAN FOR NONUNION EMPLOYEES. Motion carried unanilnously. (5-0) RES. #91-75; Council was referred to a memorandum from the Deputy REVISED PERMIT Clerk dated 12-24-91, rec:cmnnendirl: revised pennit fees I FEFS, PlANNING for Planning Conunission applications. Malone moved, seconded by Hicks, to adopt Resolution No. 91-75, REVISING PERMIT FEES FOR APPLICATIONS UNDER CITY ZONING AND SUBDIVISION CODES, effective January 2, 1992. Motion carried unaniIrously. (5-0) DISCUSSION ; Council was referred to a memorandum from the Clerk Cl::MITTI'EE Administrator dated 12-24-91, regarding the 1992 city APPOIN'IMENl'S staff and Conunittee Appointments. '!he following recommendations were made by Councilmembers: Public Safety/Works Conunittee - add Bill Gillies. Parks & Recreation Conunittee - delete Keith Enroth and add Lynette Kriedler. Planning Camnission - delete Dorothy Zehm and add steve Erickson. Council directed staff to contact Mark Literski to determine his interest in serving on the Human Rights Conunission or Public Safety/Works conunittee, rather than Planning conunission. Council concurred to take formal action on this matter at the January 2, 1992 meeting. REPORI'; ISO Fire arlef Winkel reported on the letter received from FIRE ISO Corrunercial Risk Services, Inc., dated 12-19-91, RATING relative to the city rating at Class 5. I Winkel expressed his disappointment in the rating and the fact it will result in a reduced fire insurance rates for many insured commercial properties in the district. eouncil1nember Malone expressed disappointment that the City was not rated individually, but rather the rating was based on the entire district. " Minutes of the Arden Hills Re;jular Council Meetin], 12-30-91 Page 5 I DISCUSSION ; Council was referred to the memorandum from Public Works CITY VEHICLE SUperintendent Winkel dated 12-26-91, listing the city PAINTING vehicles scheduled to be painted according to the recently adcpted Graphics standards Policy. '!here was Council ni"""lSSion regarding the color change and whether or not it would be more feasible to utilize white as the staOOard color. eouncilmember Malone indicated the staOOard color for city vehicles was green and the tan color was part of the implementation of the new city logo. He advised the standardization of the tan color will provide recognition of vehicles as city owned and maintain unifonnity of the logo colors. councilmember Mahowald ccmnented that it does not make sense to have several different colored vehicles and it may be preferable to use white as the standard color. He noted it would save time when ordering replacement vehicles, since white is a staOOard color. councilmember Hicks ccmnented that a uniform color for City vehicles is a good idea. He iniicated the color white appeared to be the best solution, since it is a standard color, however, if tan is to be the standard color it makes sense to paint all the vehicles as outlined in the memorandum. Mahowald expressed his opposition to have four different colored vehicles and I suggested utilizing white as the staOOard color, since the city current has four white vehicles and it would save money. Malone moved, seconded by Growe, to direct the Public Works SUperintendent to proceed with the painting of city vehicles that are not being replaced within a 24 month period in a tan color, as outlined in his 12/26/91 memorandum. Motion carried. (Malone, Growe, Hicks and Sather voting in favor; Mahowald opposed) (4-1) Public Works SUperintendent Winkel left at 9:35 p.m. AOOPl' ORD. #284; Council was referred to the memorandum from the Clerk AMEND aIARITABLE Administrator dated 12-26-92, relating to the proposed GAMBLING REl3UIATIONS amendment to the Olaritable Gambling Ordinance definition of the "Trade Area". The Clerk reviewed the two c:ptions for council consideration, as outlined in the 12-11-91 letter fran Atto:rney Filla; 1. Selection of a percentage amount requirement other than the currently requested 50 percent expen:liture within the trade area and expaI'ldinJ the trade area to include support of goverrnnent entities within Ramsey County; or 2. Repeal the current trade area regulations entirely. Hicks moved, seconded by Mahowald, to amendment Ordinance No. 284, SEX:rION 443, RErATING 'ID 'IHE REl3UIATION OF CHARITABLE GAMBLING, retaining the 50 percent expen:liture in the trade area and adding language I supporting the activities of a goverrunental entity within Ramsey County. Motion carried unaniIrously. (5-0) RES. #91-76; council was referred to a memorandum from the Deputy PREMISE PERMIT, Clerk dated 12-26-91, regarding a premise pennit gr. MARY'S C1lUROI awlication for st. Mary's Rananian Orthodox Church. .' Minutes of the Arden Hills Regular Council Meeting, 12-30-91 page 6 I PERMIT (Cant'd) Deputy Clerk Iago requesta:i an interpretation from the City Attorney regardirg whether or not the ten percent tax may be considered as part of the contriJ:lltion in the trade area. Attorney Filla advised it is pennissible to use the contril:ution to be in conpliance with the requirement. Counci1Jnembers concurred that the ten percent tax was not intended to be part of the fifty percent calculation for the trade area regulation. '!here was discussion relatin] to the contril:utions list provided by st. Mary's Church. Malone moved, secorded by Growe, to approve Resolution No. 91-76, A)::provin] O1aritable Gamblin] Premise Pennit application for st. Mary's Romanian Orthodox Church, for Class A Bin]o operations at the Pot 0 Gold Hall, 3776 Connelly Avenue, Arden Hills, MN, pen:ling the City Accountant's review of the charitable donations to insure conpliance with the trade area regulations. Motion carried unanimously. (5-0) Mayor Sather asked the Deputy Clerk to clarify the length of time premise pennits are issued from the state of Minnesota. Deputy Clerk Iago reported the state Gaming Board advises the premise pennits are I issued for a two year time period, from date of awrova1 by the state. Iago reported the City has no recourse to rescind an application for premise pennits once the pennit is issued by the state; it would be more appropriate to delay the approval of the pennit until the applicant is in conpliance with the ordinance, rather than attempt to rescind the pennit after issuance. Attorney Filla stata:i the City may not conduct the proceeding to revoke a premise pennit, however, the City may request the state revoke the license for noncompliance with the Ordinance regulations. AOOPI'RES. #91-77; Council was referred to a memorandum from the Deputy PREMISE PERMIT, Clerk data:i 12-26-91, relatin] to the application for sr. PAUL TURNERS a premise pennit from st. Paul rurners Gymnastics Society. Mayor Sather referred to the letter from Turner's data:i 12-26-92, outlining two options which would brin] the organization into compliance with Ordinance regulations. He advised the infonnation relatin] to utilizin] employees wages as part of the trade area requirement does not appear to be applicable, based on the fact this expense is part of the cost of doin] bJsiness. Sather did not favor the distriJ:ution of scholarships as a method to meet compliance, as it would be difficult to initiate the distriJ:lltion process. He also expressed concerns regardin;J the promissory note option. Cliff Aichinger, Treasurer of st. Paul Turner's, advised the intent is to enhance I student member numbers in the trade area and assist Arden Hills with the distriJ:lltion of the scholarships to attain compliancy with the Ordinance requirements . Councillnember Hicks questioned the financial infonnation presented which shows a net profit of $124,000.00 durin] an eleven month time period; indicata:i an annual figure may be closer to $135,000.00. He indicata:i the deficit may be closer to $40,000.00 with the inclusion of the December calculations. ----- ,. Minutes of the Arden Hills Regular Council Meeting, 12-30-91 Page 7 I PERMIT (Cont'd) '!here was discussion regarding the feasibility of the scholarship program and if there would be resident interest in the northern subJrbs. Park Director Buckley advised there are presently several good programs in the area and the response may not be great. eounci1Jnember MahcMald c:ommented that it is unfair of the Turner's organization to place the responsibility for detennining heM to best meet Ordinance CClIlpliance = devise a creative solution to this problem on the city Council or staff. He noted the organization has knc:Mn f= several months that the trade area regulation would be effective in 1991 and it is the responsibility of Turner's to CClIlply with the Ordinance. Pat Gartland, Gambling Manager, suggested Turner's would provide half of the deficit amount prior to the expiration date of the license and the remainler during 1992. cliff Aichinger indicated the new hlllding costs have depleted funds for the organization in 1991, however, CClIlpliance in 1992 should not be a problem. Hicks move:i, seconded by Malone, that the City enter an agreement Turner's organization for payment of $20,000.00 prior to March 1, 1992, for lawful purposes to CClIlply with the Ordinance requirements, and that Turner's I provide twenty schOlarships, worth $1000.00 each, that the Parks Department and rumer's would distribute to residents within the trade area to satisfy the $40,000.00 deficient f= the calendar year 1991 and that the City expects Turner's to be in CClIlpliance with the fifty percent expenditures within the trade area f= calendar year 1992. In discussion, Attorney Filla stated it appears an Ordinance amendment would be appropriate and suggested Council defer action to allow time for further review. He indicated st. Mary's premise permit application may not be in CClIlpliance based previous discussions regarding the validity of contribltions to charitable organizations within the trade area, = to benefit people residing within the trade area. eounci1members Hicks withdrew the motion and Malone withdrew the second. Herb King, 1504 West Highway 96, spoke in sur.port of the Turner's organization and their operation at the Pot 0 Gold. He advised they are a reputable charity and expressed hope that the city would be able to work on an equitable solution to this problem. Mahowald moved, seconded by Growe, to deny the application f= a premise permit fram st. Paul Turner's Gymnastic Society. Motion carried. (Mahowald, Growe, Hicks and Malone voting in favor; Sather opposed) (4-1) I Malone moved, seconded by Hicks, to amend the motion approving st. Mary's Premise Pennit renewal, based on noncompliance with Ordinance regulations relating to expenditures within the trade area, and deny the request. Attorney Filla indicated a $5,500.00 payment was made to st. Mary's Church, based on the fact that 20 percent of the church membership resides in the trade area; questioned if the monies were spent on church ilrprovements. .11 : . Minutes of the Arden Hills Regular Council Meetin;r, 12-30-91 Page 8 I PERMIT (Cont'd) Frank Belga, representin;r st. Mary's Church, indicated that no fun:ls were spent f= capital inprovements to the Church; all funds are spent f= programs and clergy salaries. May= Sather recammen:ied Council reconsider this motion and table action to the January 13 meetin;r, to allow Attorney Filla to review lawful purpose and detennine CCJllllliance with the trade area regulations. CouncilI1ernber Malone withdrew the motion; Hicks withdrew the second. There was discussion relatin;r to the elimination of the trade area regulation. Malone moved, secon::ied by Sather, to delete the trade area regulations from the Charitable Gamblin;r Ordinance. Motion failed. (Malone, Hicks votin;r in favor; Sather, Growe and Mahc:Mald opposed) (2-3) Councillnerober Mahc:Mald expressed strong OWOSition to deletin;r the trade area ~ture requirement; indicated the donations should be utilized to serve the residents of the northern sub.Jr1:s. Hicks moved, seconded by Malone, to reconsider the motion to deny the premise pennit application f= st. Mary's Church. Motion carried unanimously. (5-0) I Hicks moved, seconded by Mahowald, to table action on the application f= premise pennit renewal for st. Mary's OlUrch to the Regular Council meetin;r held January 13, 1992, at which time Attorney Filla shall provide Council an interpretation of the twenty percent residents within the trade area qualifyin;r as a donation which meets the intent of the Ordinance. Motion carried unanimously. (5-0) Malone moved, secon::ied by Hicks, to reconsider the motion to deny the premise pennit application f= st. Paul Turner's and table action on the matter to Regular Council meetin;r held January 13, 1992. Motion failed. (Malone, Sather votin;r in favor; Hicks, Growe and Mahowald opposed) (2-3) CouncilI1ernber Mahc:Mald indicated a Council vote to deny the application f= Turner's may provide more incentive for the organization to provide the fifty percent donation within the trade area and meet Ordinance requirements. COUNCIL cx:J.lMENI'S REPORI'; MEDIATION Clerk Adrninistratm' Berger reported on the mediation SESSION RESULTS session results and that this matter may enter arbitration. Berger also discussed the request from the union relatin;r to the closin;r of the City Hall durin;r the October snowstonn. I MISCELIANEDUS; CouncilI1ernber Malone questioned the =espondence frcrn MPCA LEITER & the Minnesota Pollution Control AqerK;\f regarding the well CITY HALL LIGHl'S on the Harstad property. Malone noted that the new lights installed on the front of the city Hall building are not in CCJllllliance with Ordinance regulations and suggested the lights be turned away from traffic. . : . , Minutes of the Arden Hills Regular Council Meeting, 12-30-91 Page 9 I DESIGNATE BOARD Councilmember Malone suggested the appointJrent of a EMPLOYEE APPFAlS personnel conunittee to discuss employee grievances under the new appeal process f= nommion employees. It was suggested that the board be appointed on a case-by-case basis; for the existing appeal Malone and Sather volunteered to serve. EVALUATION FORMS; Councilmember Malone questioned if the Public Works PUBLIC w::JRKS SUperinteOOent had returned copies of the Council SUPERIN.l'ENDENr perfonnance evaluation forms to the Clerk lIdministrator. Berger stated the forms have not been returned at this time. Council directed the Public Works SUperintendent to return the Council evaluation forms to the Clerk Administrator f= inclusion in his personnel file. Councillnember Hicks requested a copy of his evaluation form be forwarded to him. Councillnember Mahowald suggested the system f= returning the forms should be revised pri= to the next evaluation of Deparbnent Heads. STA'IUS REPORr; Councilmember Grawe requested an update on the status of HAMLINE AVE. ODOR the HaInline Avenue 00= problem. Clerk Administrator Berger reported he was notified there is an Engineer in the I city of WoodbJry that has dealt with a similar problem. Grawe requested Berger contact the Engineer to determine how the matter was handled. C01PENSATION; Councilmember Mahowald reported the salary compensation PARK DIREX:TOR for the Park Director has not been determined to date. He suggested Council make a determination and notify the employee of the outcome. o::::MPIAINI'S; NO. Mayor Sather advised he has received complaints regarding SNELLING AVENUE the icy corrlitions on North Snelling Avenue; suggested the Engineer and Public Works SUperintendent be notified of the condition of the street and respond to the complaints. ADJOURN Malone moved, seconded by Hicks, that the meeting be adjourned at 11:15 p.m. Motion carried unanimously. (5-0) Gary~r!~ - }JL~::.<, > Ii. (1 '0 [tJ fli((~",( X< ,j _ 'I'hemaf! R. Sather Clerk lIdministrator May= NOI'ICE OF MEEl'INGS , ~e next Special Council Meeting will be held on ~ursday, January 2, 1992, at 5:00 p.m., at City Hall.