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HomeMy WebLinkAboutCC 06-15-1992 . . . MINUTES OF THE ARDEN HILLS COUNCIL WORKSESSION MEETING MONDAY, JUNE 15, 1992, 4:00 P.M. - CITY HALL CALL TO ORDER Pursuant to due call and notice thereof, Mayor Sather called the meeting to order at 4:00 p.m. ROLL CALL The roll being called the following members were present: Mayor Thomas Sather, Councilmembers Dale Hicks, Paul Malone, JoAnn Growe and Thomas Mahowald. Also present: Attorney Jerry Filla, Architects Dennis Probst and Jeff Oertel, Public Works Superintendent Dan Winkel and Acting Clerk Administrator Catherine Iago. ADOPT AGENDA Mayor Sather advised that Item #4, Discussion with the Everest Group should be deleted and held until the July Worksession meeting. Mahowald moved, seconded Hicks, to adopt the amended Worksession agenda, deleting Item #4, Discussion with the Everest Group. Motion carried unanimously. (5-0) HIRE JAMES BRIMEYER FOR ADMINISTRATOR SEARCH Consultant Jim Brimeyer appeared before Council to discuss his proposal for conducting a search to fill the position of Clerk Administrator. Brimeyer outlined procedures for establishing the position description and conducting the search. He requested staff provide general information relating to the City and requested direction from Council regarding applicant qualifications and proposed salary guidelines. There was discussion relating to the expenditures for this service. Council concurred they would prefer to receive a running tabulation of expenditures, not to exceed $5,000.00. Mahowald moved, seconded by Hicks, to authorize retention of the Brimeyer Group on an hourly basis, at a rate of $110.00 per hour, to complete specified activities relating to the candidate search to fill the position of Clerk Administrator. Motion carried unanimously. (5-0) Mayor Sather left the meeting at 5:05 p.m. Acting Mayor Mahowald presided over the remainder of the meeting. . . . Minutes of the Arden Hills Worksession Meeting, 6/15/92 Page 2 DISCUSSION: FOSTER APPLICATION FOR DEVELOPMENT, LEXINGTON AVENUE Council was referred to a letter from Attorney Thomas Balyk, representing Dennis Foster, and a confidential affidavit from Foster which relates to the proposed planning application for development. Council also received a letter from City Attorney Jerry Filla, dated 6/15/92, relating to the proposed development application. There was discussion regarding whether or not the applicant has acquired a vested right in the issuance of a building permit, based on the rationale that Foster has incurred substantial costs in reliance upon Council approval of the application. Attorney Filla reviewed sections of the city Code relating to expiration of approval of building permits and the contents of these regulations and interpretation of same by City staff prompted the request for reapplication for this development. He also stated that granting of a building permit for this development does not preclude the adoption of new zoning regulations which prohibit the erection of a building if the new zoning regulations are adopted to protect the health, safety and welfare of the community. Filla indicated that the interpretation of the "health, safety and welfare" issue is broad and may relate to such items as tax structure. Attorney Balyk reviewed his correspondence and affidavit. He reviewed the expenses incurred by his client, which are unique to the proposed project and would not be otherwise usable. He also stated that the conduct of the City in enacting its development moratorium would deprive his client of a vested property right in this case. There was discussion relating to an interim use of the property for this project. Dennis Foster indicated that it is his intent to provide a permanent structure, as soon as it becomes financially feasible, and eliminate the proposed bubble structure. Attorney Filla suggested Council attempt to resolve this matter without the cost and delay of litigation. He proposed construction of the proposed development according to the approved site plan and recommended the air supported structures be removed within five years. . . . Minutes of the Arden Hills Council Worksession, 6/15/92 Page 3 FOSTER (Cont'd) Dennis Foster explained five years may not be feasible for removal of the structures; requested an additional five to ten years be granted, if necessary. council concurred to grant an additional three years, pending the applicant providing proof that a good faith effort has been made to obtain financing for a permanent structure and is unable to obtain such financing and that the developer needs additional time to repay the debt incurred to construct the project. Attorney Filla noted that both items would be included in the interim agreement and that the applicant must also comply with all other conditions of the original approval prior to issuance of a building permit. Malone moved, seconded by Hicks, to direct the city Attorney and staff to draft an agreement with Dennis Foster which authorizes the use and construction of the site plan approved, in lieu of litigation and pursuant use regulations outlined in the State Land Planning Act, and direct that such agreement require: 1. Conversion of the site plan by removal of the air supported structures, in accordance with adopted planning regulations, occur within five years from the date of execution of the agreement, or that an additional three years be granted, provided the developer show proof that a good faith effort has been made to obtain financing and is unable to obtain such financing and the developer needs additional time to repay the debt incurred to construct the project. 2. The developer comply with all stipulations of approval of the original site plan within 60 days of Council approval of the interim use agreement as drafted by the city Attorney. Motion carried unanimously. (4-0) council advised this matter will be placed on the June 29 regular meeting agenda for action. There was a brief recess between 6:00 and 6:10 p.m. . . . Minutes of the Arden Hills Council Worksession, 6-15-92 Page 4 TIF PROPOSAL, THE COTTAGES, JOHN ARK ELL Council was referred to a letter from Financial Consultant James Casserly, relating to the proposed low income Senior Housing Project proposed by Cottage Lifestyles, Inc. and John Arkell, and two development agreements for projects of this nature constructed in other communities. James Casserly reviewed the subsidy portion of his report and indicated the proposal is feasible. He indicated the following items of concern relating to the project: 1. Senior only project. The city must be assured that the project will be maintained for this purpose; various restrictions of covenants in the deed and in the authorization for the issuance of bonds may be required. Also, the pledge of tax increment and the redevelopment contract may all be approved with conditions and restrictions. 2. Quality Control. The construction cost per units is 35,000; these are modest per unit costs and the City must assure itself that it will be authorizing a well constructed unit. The city of North st. Paul was positive about the Developer and only a few changes were required in the construction plans. 3. Tax Increment Penalties. The 1990 amendments to the Tax Increment Act penalizes cities when they create TIF district by reducing LGA and HCA; Arden Hills does not receive either one of these aids and therefore there would be no deduction. 4. project Manager. The City has an interest in how the project will be managed, since it will be a senior only project; additional discussion with the Developer on the qualifications of a project manager should be held. 5. Future project Use. If the project is well constructed and well managed, the city is getting an attractive asset which provides affordable housing for 15 to 20 years to a segment of the population which needs housing options. Part of the problem with using real estate taxes to subsidize rents is that you continue to need those real estate taxes for subsidy unless other programs become available. It must be assumed that at the end of the qualification periods the project becomes a market rate project. . . . Minutes of the Arden Hills Council Worksession, 6-15-92 Page 5 TIF (Cont'd) Casserly advised the City may give concept approval to the Developer's request, assuming satisfactory solutions to the concerns listed, so that the Developer may proceed to request an allocation from the state for tax exempt financing. After discussion, Council expressed willingness to consider the Cottages as a viable project. Councilmember Hicks expressed his preference that the tax exempt financing period be eight to ten years, versus 15 years as proposed by the Developer. Council directed Casserly to contact Mr. Arkell to discuss the consensus relating to this proposal and request Arkell to address the concerns discussed in Casserly's report. CHARITABLE GAMBLING ORDINANCE Council was referred to a memorandum from Temporary Accountant Terrance Post dated 6/12/92, regarding charitable gambling operations, the reporting system and imposing a gambling tax. Post advised he had surveyed several communities regarding the method of calculating net profit contributions and whether or not these cities impose a gambling tax. He noted that 36 percent of those communities surveyed impose a gambling tax which tax is computed on the basis of gambling receipts, less prizes, times the tax rate. Post outlined reasonable expenses the City may anticipate to monitor gambling activity within the city relating to legal counsel, staff time and outside contractors time; approximately $18,000.00. He stated a gambling tax rate of .75 percent appears to be justifiable and supportable. councilmember Malone favored imposing the tax. Councilmember Hicks agreed and suggested a reduction in the percent of profit required to be spent within the trade area; currently 50 percent, recommended reduction to 30 percent. There was discussion relating to enforcement of the tax, allowable deductions, use of the monies to establish an endowment/park fund. . . . . . Minutes of the Arden Hills Council Worksession, 6-16-92 Page 6 CHAR. GAMBLING (CONT'D) Hicks moved, seconded by Growe, to direct staff to work with the City Attorney to draft an appropriate amendment to the Charitable Gambling Ordinance relating to imposing a gambling tax and to direct the accountant to calculate gross revenue, as per the Ordinance, and a reasonable percentage of tax to equal current donations and forward to Council for review at their next regular meeting held 6/29/92. Motion carried unanimously. (4-0) DISCUSSION OF 1993 BUDGET PROCESS Temporary city Accountant Post requested input from Council and definition of budget goals prior to staff beginning the budgeting process. Council concurred to provide the following guidelines for staff: - Levy increase not to exceed 5%, preferred 4.98% or less. - Defer any street reconstruction in 1993 budget. - Outline imposition of Storm Water utility in 1993. - Suggest utilization of outside contractors or upgrade of equipment, rather than increased staffing. Staff thanked Council for their input. LONG TERM DISABILITY INSURANCE & FRINGE BENEFITS PACKAGE Council concurred to defer discussion on Long-Term Disability Insurance and Fringe Benefits to a future worksession meeting. DRAFT SPACE PLANNING REPORT AND SITE SELECTION DISCUSSION FOR PROPOSED CITY FACILITIES - BRW ARCHITECTS Architects Denny Probst and Jeff Oertel were present to discuss the Draft Space Planning report and site selection for the City Hall and Public Works Facilities. Council concurred the Sunfish Lake site on the Arsenal property would be the preferred site for the facilities and the Round Lake site would be considered the backup site. Council directed staff to work with the architects to draft a contact letter to the property owners and suggested the Planner and Engineer be asked to comment on the site selection. . . ~ . . Minutes of the Arden Hills Council Worksession, 6-15-92 Page 7 CITY FACILITIES (CONT'D) There was discussion relating to the costs for schematic drawings of the facilities; the architects approximated the cost between $3,000 - 5,000.00. council concurred that the architects should prepare the final Space Planning document for the City facilities for review prior to the 6/29/92 regular meeting. REQUEST BINGO HALL PERMIT RENEWAL, LOUIS WALSH Acting Clerk Administrator Iago advised she received a request from Mr. Walsh to expedite processing renewal of the Bingo Hall permit. Malone moved, seconded by Hicks, to defer action on the Bingo Hall permit renewal request to their Regular Meeting held June 29. Motion carried unanimously. (4-0) COUNCIL COMMENTS Council concurred to direct staff to compile financial information relating to the proposed City facilities by the end of July. Councilmember Hicks reported he is unable to attend the Parks Committee meeting. ADJOURN Malone moved, seconded by Growe, that the meeting be adjourned at 10:00 p.m. Motion carried unanimously. (4-0) Thomas Mahowald Acting Mayor catherine J. Iago Acting Clerk Administrator