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Home My WebLink AboutCCP 09-09-2002 Mayor Dennis Probst ..mncil Members Beverly Aplikowski David Grant Gregg Larson Lois Rem ~ ~HILLS Arden Hills City Council RE.GULAR Se tember 9, 2002 City Philosophy ualit services tbrou h the innovative and oseful use of resources. 1245 W. Highway 96 Arden Hills, Mi~ta 55112 651.634.5120 Monda To rovide a basic and necessa Agenda City Council Meeting Convenes 7:00 PM Call to Order 1. AGENDA 2. MINUTES A. August 12, 2002 Council Meeting B. August 19, 2002 Council Work Session C. August 26, 2002 Council Meeting 7:00 CONSENT CALENDAR A. Claims and Payroll B. Generator/CitY Hall FINAL Those items listed under the Consent Calendar are considered to be routille by the City Council and will be enacted by one motion under a Consent Calendar fonnat. There will be .no separate discussion of these items, unless a Council Member so requests, in which event, the item will be removed from the general order of,business and considered separately in its norrnalsequence on the agenda. Public InquirieslInformational is an opportunity for citizens to bring to the .Council's attention any ,items not currently :011 the agenda. In addressing the Council, please. state your name and address for the record, and a briefsummary of the specific item being addressed to the Council. To allow adequate time for each person wishing to address the Council, we ask that individuals limit their connnents to three (3) minutes. Writteu documents may be distributed to the Council prior to the meeting, or as bench 'copies, to allow a more timely presentation. 4. PUBLIC INQUIRlES/INFORMA TIONAL 5. PUBLIC HEARINGS 6. COMMUNITY SERVICES A. PLANNING NONE 1. Vaughan Tower 2. Guidant AUAR 3. Chesapeake PUD Extension 4. CUB Proposal Aaron Parrish Arden Hills City Conncil Agenda September 9, 2002 Page 2 B. FlNANCE 1. Resolution No. 02-42 Approve the TenyPost 2002 Revised Budget 2. Resolution No. 02-43 Approve the 2003 Preliminary Levy 3. Resolution No. 02-44 Approve the 2003 Preliminary Budget 4. Resolution No. 02-45 Determining Dates for 2002 Truth and Taxation Public Hearings C. TCAAP - Update Aaron Parrish . 7. OPERATIONS & MAINTENANCE Tom Moore A. INFORMATION: URS Analysis ofKarth Greg Brown Lake Pumping Station 8. ADMINISTRATION A. Introduce Planner Peter Hellegers Joe Lynch B. Recommendation: Operations & Maintenance Worker Aaron Andrews CITY COUNCIL REPORTS A. Council Member Grant B. Council Member Larson C. Council Member Aplikowski D. Council Member Rem E. Mayor Probst TeAAP: Twin Cities Army Ammunition Plant PMP: Pavement Management Plan PTRC: Parks, Trails and Recreation Committee MFTF: Maintenance Facility Task Force (Ramsey County/Arden Hills) I . t;' . , .. . . . "B~tA ~()tit-. --I "t( 1 ( IJ Z- ,r' :..; j; <' , ''O.~ f ';{ I" (', ff) hI ,;! I' , 'C C' ~J, ,'--"\01. J.....- "'.,-,, ,\.~,-/",h. I'"~ ---"'-... April 25, 2002 Mr. Daniel J. Beeson. Esq. leVander, Gillen & Miller. P.A. 633 South Concord Street, Suite 400 St. Saint Paul. MN 55075 RE: AT-S. Steels, Inc.IHPMK, LLC Dear Mr. Beeson: Thank you for your letter dated April 10, 2002. Although I believe it was unintentional because you were not part of many of the conversations, your letter inaccurately describes our negotiations and the conversations that we had with your client's representative, Mark McKee. Chesapeake remains interested in buying your c1icnt's property, but, as we told Mr. McKee. we cannot do so until we have a user for thc property. Your letter suggests to us that you are unaware of the histol)' of this property. The A.T.S. Steels property has been part of a redevelopment districl in the City of Arden Hills for the past twelve years. The City created the district in 1990, long before we had any intcrest or even knew of your client's property. A.TS. 's use of the property had been rezoned as a "non-confonning use" when the City created the redevelopment district. Thus, A.T.S. Steels has known for twelve years that its property is going to be a pan of a future redevelopment project. When Chesapeake became interested in your client's property, it initially offered to buy the property for what it believed then was a fair price. This amount was based on our analysis of the market at that point in time. As you no doubt know, since we made our offer in the fall of 2000, the economy, the development market, sales priccs and rental rates of office/warehouse property in the Twin Cities have declined. AT.S. elected to reject our offer. The reaction of your client was that our offer was too low. Subsequently, at your client's request, we later toured the building to determine if we had undervalued the property. In response to the tour. we followed up with a phone conversation and a meeting with Mr. McKee regarding the property. We explained our need to find a user before buying the property and he explained his intention to continue to use the property and find a tenant for the unused property. We understood that he would take that course and we encouraged him to do so. lbis conversation, like prior ones with your client, was pleasant and each side eXplained what it intended to do. We did not understand your client to suggest that he placed his business and business planning on hold. Quite to the contral)'. he lold us that he would move forward wilh his plans. We believed that Mr. McKee understood our situation, and we understood his situation, and we were therefore surprised to receive your letter. 1111)1l \\"\) ':.U.\ Iltll I i'\ dlll . -;, II -"., ~ \\"-'_1 t< ''-h \. \\;'.'.1 ".(;1 \ _l:',")!)." rl.ll-:J'!I(),T ('j",'.!) ."--L- '-1-1-1 . I \'-. ,'1.,', ,I, ~.!-1 t;- . Mr. Daniel 1. Beeson, Esq. April 25, 2002 Page Two . The following is a brief summary of our communications with AT.S.: On October 3, 2000. Chesapeake made a written offer to your client to purchase the property. Because we received no response to the offer, we attempted to reach your client in writing and by telephone. Finally, on November 30, 2000. your client responded by rejecting the offer with no counteroffer. In June 200 I, you informed uS that you were obtaining an appraisal of the property for purposes of making a proposal. On August 9, 2001. during that meeting. you proposed orally a purchase price that we believed was too high, and your client did not make any offer in writing to sell the property. At that time, we expressed that the purchase price described was too high and we could not afford to buy the property at that price. In November 2001, you spoke to our lawyer by telephone and inquired whether we were still interested in purchasing the property. Our lawyer informed you that, if you client would like to make an offer that we would consider it. In December 2001, your client offered orally to sell the property for $2,6 million, but, once again, did not place thc offer in writing. In response to that offer, and at your client's suggestion, wc toured the building in an effort to determine why your client's oral offer was so high. On January 18. 2002, we toured the building. Shortly thereafter, in February 2002, I told Mr, McKee that we would be interested in purchasing the property only after we identified a buyer, and I suggested that we meet to discuss A.T.S.'s current and future plans. On February 26, 2002, we met with Mr. McKee and his accountant discusscd each sidc's intentions. At this meeting, we explained to Mr. MeKee that wc could not go forward with thc purchase until we had a user. and that we were searching for a user, but that we had not yet found one. Mr. McKee stated that, if we were unwilling to purchase the property immediately, he would continue to occupy the building and attempt to locatc a tenant to occupy any unused space. Given what we have done, and our communications with your client, we do not understand your comments that we have both "failed and/or refused to either accept the terms of the sale or make any attempt toward good faith negotiation." As stated above, we cannot afford the property until we have a user. This is what we have told the City. and this is why we are communicating publicly our desire to develop the property. We have and continue to work very closely with the City on this project in the hopcs of securing a lead tenant as soon as possible. Please understand that it makes no sense, considering the current economic market conditions, to carry excess property and to develop any project until and unless a lead tenant is located. That is why we have initiated a marketing campaign for the projcct. Your clicnt understands this, and if you wcre our lawyer, you would no doubt advisc us to take the same course. Our intention going forward is to maintain open lines of communication with your client If you have any questions, plcase let us know. Very truly yours, CMK ARDEN HOLDINGS ~~~~ Peter C. Carlson Chief Exccutive Officer . JPKlamb cc: Mark McKee John Koncck - - - ~ ~HILLS MEETING MINUTES DRAFT CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION MONDAY, AUGUST 19,2002,4:45 P.M. CITY HALL COUNCIL CHAMBERS, 1245 WEST HIGHWAY 96 CALL TO ORDER Mayor Probst called the meeting to order at 4:45 p.m. Present: Council Members Beverly Aplikowski, David Grant, Lois Rem, and Gregg Larson. Also present: Administrator, Joe Lynch; Director of Operations and Maintenance, Tom Moore; Director of Community Services, Aaron Parrish; Accountant, Terry Post; Attorney Jerry Filla; and Deputy Clerk, Cynthia Young. 2.A Community Services - TCAAP Updates 1. Representative Betty McCollum Representative McCollum presented and reviewed a document map of TCAAP, disposal report from the Department of Army, original cost for the property, acreage report, a copy of the status of Rice Creek, the disposal process sheet, and other public uses report. Representative McCollum's assistant said the sum property, minus 276 acres, which is licensed to National Guard, left 774 acres of which 113 acres is Rice Creek Watershed District, leaving 661 acres for Title 10 for the full early transfer process, and leaving 522 acres for economic development. Mayor Probst thanked Representative McCollum for joining Arden Hills at the Work Session. ARDEN HILLS CITY COUNCIL WORK SESSION MINUTES August 19,2002 2 " 2. Carol Swenson University of Minnesota Design Center Ms. Swenson said she had coordinated the community dialogue, which covered four general topic areas: Transportation; Natural Resources and Parks; responses to the Community Dialogue questionnaire; and the Environmental Clean-up issues. She reviewed the citizen's concerns and recommendations. She said people are very interested and compassionate about the site, and still formally tracking the Vento Plan for this property. She suggested a more public interpretation of the following of the baseline Vento Plan. Council Member Rem said her disappointment with this community process was the scheduling [of meetings], and she would like to see more opportunities for resident input. Mr. Parrish presented the TCAAP Master Planning Advisory Panel chart. Mayor Probst said the public process is as it is, and ultimately, the City Council was the decision maker, and a certain comfort level for them was necessary. He noted a strong baseline is in place for the Vento Plan, and reaffirmed the _ commitment to follow it. Council Member Grant said the Vento Plan originally envisioned the development of more acreage. Council Member Larson stated the real pending issue is how much land is available for development. He said if the City were truly adhering to the Vento Plan, the City Council had to look beyond the excess area. Ms. Swenson said she will return to report to the City Council at its September 16, 2002, Work Session meeting. 2.3.ii Interim Development Agreement Mr. Filla presented a sixth draft of the Interim Development Agreement, and reviewed recommended amendments and principle changes, stating it is going to take two years or more to become aware of the entire environmental issues. He said he wanted to make it clear that this agreement acknowledges the 661 acres. He said the City should plan to access the excess areas. e ~ e e ARDEN HILLS CITY COUNCIL WORK SESSION MINUTES August 19,2002 3 Council Member Larson was agreeable to the current draft agreement, which is consistent with the Vento Plan. He questioned why the planning in the excess area is limited to just that area and did not include land that fell into the developable site in phase one. Mr. Filla said he limited the agreement because the planning had to be done now, staying true to the Vento Plan. He said he would amend the document to illustrate the development of the Vento Reuse plan that is shown. Council Member Grant expressed his concerns regarding what would be permitted in the excess areas. Mr. Filla said he would prepare the agreement for the August 26, 2002 City Council meeting. Council Member Rem asked about the insurance costs provision, and another provision which indicated a clarification of language relating to the City Administrator decision making regarding budgetary expenditures without Council approval. Council Member Larson agreed, and asked for further scrutiny within this document and following situations. 2.3.i Critical Path Chart John Hink presented Figure One, which detailed the Work Program and Schedule. He noted the schedule was admittedly ambitious, but also mentioned that this was in line with the Army's scheduling, as well. Administrator Lynch said John Hink requested the City Council approve the Work Program and Schedule, so the chart could be displayed at City Hall and readily available for public viewing. 2.B.! Finance - 2003 Budget Discussion Mr. Post reviewed the 2003 Salary and Benefit portion of the budget, stating the salaries that are not levy supported are supported by utility billing rights and TCAAP funds. He also noted the figures presented did not indicate the results of the LRA market study results. ARDEN HILLS CITY COUNCIL WORK SESSION MINUTES August 19,2002 4 - Council Member Larson asked how some administrative salaries had increased so rapidly. Mr. Post said the City expanded some positions, and some new staff had moved through the "steps" quicker than predicted. Council Member Grant suggested the draft budget indicated a greater disparity between bargaining unit staff and non-bargaining unit staff costs for benefits. Council Member Larson said it was reasonable to allocate salaries to TCAAP and other funds, but to be sensitive to the long term issues. Mayor Probst asked when the levy figure needed to be submitted to Ramsey County. My. Post said by September 15, 2002 and the levy could be capped, high. He asked the Council what its general "comfort level" percentage was. - My. Lynch suggested using 5.1%, make the decisions, and bring back to the Council in two weeks. He mentioned this could afford the Council more time to discuss other issues, and it may be a safer bet is to go up the full amount. Mayor Probst said he would declare his own bias, that being he wants to keep the increase no higher than 2.99% My. Post said the State price inflater indicates a 1.7% increase. Council Member Aplikowski said she could see the levy increasing somewhere between 3% and the 5%. Council Member Larson stated he was not in agreement with the 5% figure, but stated there was some value in 3%. Director of Operations & Maintenance Report: NONE Director of Community Services Report: No Additional Report Administrator Report: NONE e e e e ARDEN HILLS CITY COUNCIL WORK SESSION MINUTES August 19, 2002 5 City Council Reports: Council Member Grant Report: Council Member Grant reported the Bethel College Sports Facility had been leased by the US Women's Soccer Association and subsequently, Olympic security personnel escorted some Arden Hills residents off the Bethel property at a recent event. He quoted a letter from Bethel College relating to the issue, stating the facility is to open to the public, but when leased, that indicates a closed venue. Administrator Lynch said he met with Bruce Kunkel, and talked about a use agreement, stating there will be other groups [than Bethel College] using the facility. Mayor Probst said serious negotiations had begun with Ramsey County as to how the City wanted to deal with its portion of the Ramsey County Maintenance Facility. He noted staff needs to explore this, and bring back to the Council. He said the current plan indicates a cutoff entrance for Hamline A venue, and that was not acceptable to the City. Council Member Larson Report: Council Member Larson said he had nothing at this time, but later said he saw a potential problem with the cutoff entrance for Hamline Avenue, stating if the City does not have at least some connections at the Hamline Avenue entrance area, the City is at a disadvantage for access in the future. Council Member Rem Report: Council Member Rem brought up TCAAP from DNR concerning the 49 acres. Council Member Aplikowski Report: Council Member Aplikowski said she had great concerns regarding the agenda memo regarding the 35-W coalition. She said she had met with the Peter Hellegers, the intended new City Planner. Mayor Probst: No additional Report. Mayor Probst adjourned the Work Session at 8:55 p.m. ARDEN HILLS CITY COUNCIL WORK SESSION MINUTES August 19,2002 Respectfully submitted, Cynthia Young, Deputy Clerk Dennis Probst, Mayor Joe Lynch, Administrator 6 - e e e e e ~ ~ILLS MEETING MINUTES DRAFT CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING MONDAY, AUGUST 12,20027:00 P.M. CITY HALL COUNCIL CHAMBERS, 1245 WEST HIGHWAY 96 CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Dennis Probst called to order the regular City Council meeting at 7:00 p.m. Present: Mayor Dennis Probst, Council Members Beverly ApJikowski, David Grant, Gregg Larson, and Lois Rem. Absent: None. Also present were City Administrator, Joe Lynch; Director of Community Services, Aaron Parrish; Deputy Clerk, Cynthia Young; Operations and Maintenance Superintendent Jim Perron; City Engineer, Greg Brown; and Recording Secretary, Kathleen Altman. 1. APPROVAL OF MEETING AGENDA Mayor Probst requested Items 4 through 9 be heard prior to Item 2. MOTION: Council Member Aplikowski moved and Council Member Larson seconded a motion to adopt the amended agenda for the August 12, 2002, regular City Council meeting. The motion carried unanimously ( 5-0). ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES AUGUST 12, 2002 2 - 4. PUBLIC INQUIRIES/INFORMATIONAL A. Livable Communities Award - Roger Williams Mr. Williams presented a Livable Communities Award to the City of Arden Hills in the amount of$75,000 for TCAAP planning. 5. PUBLIC HEARINGS None 6. FINANCE Moved permanently to Community Services 7. COMMUNITY SERVICE A. DSU Scope of Services - Mr. Parrish stated the Council had previously directed staff to issue a Request for Qualifications (RFQ) to various planning firms to provide land use and infrastructure planning services for TCAAP. Based on that direction, an RFQ was issued and three finalists were interviewed by a selection committee. The selection committee chose a team lead by Dahlgren, Shardlow, and Uban (DSU). Mr. Parrish reviewed the Scope of Services Agreement and recommended Council direct staff to execute the Agreement and recommend an advisory panel be established. John Shardlow of Dahlgren, Shardlow, and Uban summarized the key characteristics and various phases of the process. Mayor Probst requested one or both representatives from the colleges [Bethel & Northwestern], representatives of the business community, citizens, and a representative from Representative McCollum's office be invited to serve on the committee. e ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES AUGUST 12,2002 3 e Council Member Grant requested a copy of the contract from the Metropolitan Council. Mr. Parrish replied they had not received the contract yet, but when it was received, it would be put on the Consent Calendar and Council would receive a copy. Council Member Larson requested the Advisory Panel be informed to follow the Vento Planning process, and to make it clear to the Panel Members that the Council was committed to following that Plan. Council Member Grant recommended inclusion of representatives from the two U.S. Senators' offices to the Advisory panel also. He requested if they were not included in the Advisory panel, then they needed to be included in the Communication Plan. Council Member Aplikowski expressed concern about the timing, expense, and . the steps being taken for a duplicative planning process. Mayor Probst pointed out that they were not duplicating the planning process. He stated the intention was to be reimbursed by the developer for the planning process through the completion of the Development Agreement, but now the planners were working for the City and not for the developer. He stated this plan would be much more specific than the Vento Plan, which was a general land use plan. Council Member Aplikowski stated the Council Members were not always informed when the development meetings were taking place and she expressed concern about that. She stated the Council had not discussed what theiT visions were for TCAAP and she believed they were moving too fast. MOTION: Council Member Larson moved and Mayor Probst seconded a motion to authorize staff to execute the Scope of Services Agreement conditioned on the following: 1. Work up to $75,000 is authorized immediately. . ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES AUGUST 12, 2002 4 e 2. Work beyond $75,000 is conditioned on approval of the Interim Development Agreement. 3. An Advisory Panel is established, and the names of the Advisory Panel be presented to Council before they are appointed. Mayor Probst stated he did not know of any developer meetings that were held that the Council Members were not invited to attend. He indicated it was critical that there was a consensus among the Council Members regarding TCAAP. Council Member Aplikowski replied she did not believe the City could control the development of TCAAP, and she expressed concern that the Council Members had not talked about their visions for TCAAP. Council Member Rem requested the Council is informed in advance when all development meetings were taking place. Council Member Grant requested Council schedule a meeting to discuss their visions for TCAAP. e Council Member Larson stated he believed he had been informed of all the important meetings and was comfortable with the process being proposed. Council Member Aplikowski requested the following friendly amendment "with a condition that the Advisory Panel names are brought to Council before appointed." Council Member Larson and Mayor Probst accepted the friendly amendment. The motion carried unanimously (5-0). Mayor Probst exited the meeting at 8:08 p.m. and turned over the meeting to Acting Mayor Rem. B. Boat House Development Moratorium . e . . ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES AUGUST l2, 2002 5 Mr. Parrish reviewed proposed Ordinance #341 adopting a development moratorium relating to the construction of boat houses. Council Member Larson noted this Ordinance needed to also apply to accessory structures as well as boat houses. Mr. Parrish suggested revising the language to read boat houses and accessory structures whenever that language came up. Council Member Aplikowski stated they were referring only to boat houses in this case. She stated accessory structures were addressed in other Ordinances. She expressed concern about making the moratorium any broader. MOTION: Council Member Grant moved and Council Member Aplikowski seconded to approve adoption of Ordinance #341 An Ordinance Adopting a Development Moratorium Relating to the Construction of Boat houses. The motion carried unanimously (4-0). C. Planning Case 02-04: Subdivision Regulations Mr. Parrish reviewed the proposed Subdivision Regulation Modifications. He recommended Council consider second reading and adoption of Ordinance #340, an Ordinance ModifYing Chapter 11 of the City Code and consider approval of the Ordinance Summary for Ordinance #340. MOTION: Council Member Larson moved and Council Member Aplikowski seconded a motion to adopt Ordinance #340, An Ordinance ModifYing Chapter 11 of the City Code and approval of the Ordinance Summary for Ordinance #340. The motion carried unanimously (4-0). D. FINANCE - None. 8. OPERATIONS AND MAINTENANCE A. Parks - New Signage. Mr. Perron indicated the Parks, Trails and Open Space Plan recommended a series of improvements to be implemented. One of the improvements was for the ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES AUGUST 12,2002 6 e installation of new signage within the thirteen parks. Funding for this would be generated by the Park Fund. A total of 20 signs were needed for the parks at a total cost of$42,500. Council Member Aplikowski asked iflandscaping around the signs was part of the cost. Rich Straumann, Chairman of the Parks, Trails and Recreation Committee, replied landscaping was not a part of the proposal. Council Member Grant requested they find out from Vacker Inc. what the cost would be to have the sign panels made of 2 inches of cedar instead of 1-5/8 inches. MOTION: Council Member Larson moved and Council Member Ap1ikowski seconded a motion to authorize the purchase and installation of 20 Park signs in 2002 from Vacker Inc., at a cost not to exceed $42,500 with the funding to be taken out of the Park Fund. The motion carried unanimously (4-0). B. Approval to Hire Park Building Architect . Mr. Perron indicated the Parks, Trails and Open Space Plan recommended a series of improvements to be implemented. One of the improvements was for the design and construction of park facilities. Funding for this project would be generated by the Park Fund. At the Parks, Trails and Recreation Committee meeting they reviewed bids and selected Hagen, Christensen and McIllwain (HCM) Architects at a fee of$30,000.00. Rich Straumann, Chairman of the Parks, Trails, Recreation Committee (PTRC), stated the buildings would be prairie style architecture, similar to the structures in Tony Schmidt Park. He indicated they did not know how many parks would be in the TCAAP area, but this would be discussed at future meetings. Roberta Thompson, PTRC, stated it was critical to have one architectural plan that was consistent throughout the park system. Council Member Larson expressed his concerns regarding the condition of the warming house at Hazelnut Park, and if that park were in need of improvements. . e e . ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES AUGUST 12,2002 7 He said he would rather see the money spent on the design of Hazelnut Park and in that process, come up with ideas for other structures in other parks, as well. Mr. Straumann replied it was the intent to come back to the Council with a more detailed site analysis for all City parks. Council Member Larson asked what the priority was for each park. Mr. Straumann replied Hazelnut Park was the third priority, with Perry Park being first priority and Valentine Park being second priority. Ms. Thompson stated they had reevaluated these priorities, and felt that based on the needs and usage of Perry Park, it park should be addressed first. She stated Valentine Park was second priority also based on needs and usage. MOTION: Council Member Grant moved and Council Member Larson seconded a motion to authorize the selection of Hagen, Christensen and McIlwain Architects to develop a master plan and concept design for the park facilities in the City of Arden Hills at a cost not to exceed $30,000 with the funding to be taken out for the Park Fund. The motion carried unanimously (4-0). C. Award Bid: 2002 Sanitary & Water Mr. Brown stated Visu-Sewer Clean and Seal, Inc. submitted the low bid with a total base bid amount of $246,435.50. The low bid was approximately $10,000 less than the Engineer's estimate and reflected a competitive bid in the current marketplace. Mr. Brown recommended the award of the 2002 Sanitary Sewer and Watermain Rehabilitation to Visu-Sewer Clean and Seal, Inc. for the total amount of $246,435.50. MOTION: Council Member Larson moved and Council Member Aplikowski seconded a motion to award the 2002 Sanitary Sewer and Watermain Rehabilitation to Visu-Sewer Clean and Seal, Inc. for the total amount of$246,435.50. The motion carried unanimously (4-0). D. Award Bid: 2002 Storm Drainage ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES AUGUST 12, 2002 8 - Mr. Brown stated Dryden Excavating, Inc. submitted the low bid with a total base bid amount of $66,500. The low bid was approximately $1,500. less than the Engineer's estimate and reflected a competitive bid in the current marketplace. Mr. Brown recommended the award of the 2002 Storm Drainage Improvements to Dryden Excavating, Inc. for the total amount of$66,500. MOTION: Council Member Aplikowski moved and Council Member Grant seconded a motion to award the 2002 Storm Drainage Improvements to Dryden Excavating, Inc. for the total amount of $66,500. The motion carried unanimously (4-0). 9. CITY ADMINISTRATOR'S REPORT A. LRA Market Study Report Mr. Lynch reviewed the Labor Relations Associates, Inc. Market Study Report and recommended Council accept the revised position definitions and accept the e Hay Management System point designations, as calculated by LRA. Ms. Young summarized the job evaluation points. Council requested staff obtain information from LRA as to how the point system was determined. Council Member Grant asked if this needed to be done tonight, or should they wait until Mayor Probst had input in this also. Ms. Young replied if there was general agreement tonight, the next step would be implementation, and the LRA was waiting to hear from Council as to how to proceed. Council Member Grant asked if they needed approval III order to have an implementation plan. Ms. Young replied they did not. e - . . ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES AUGUST 12,2002 9 Council Member Grant stated he would like to postpone this until the next Council meeting to see the full implementation plan. MOTION: Council Member Grant moved and Council Member Aplikowski seconded a motion to postpone this to the August 26 meeting to see the full implementation plan. The motion carried unanimously (4-0). 2. APPROVAL OF MINUTES A. July 29, 2002 Council Meeting Council Member Grant requested the following changes: Page 9, second paragraph under the Goserud Final Plat should read: "Mayor Probst stated he had not supported this...". Council Member Larson requested the following changes: Page 4, second paragraph change fronage to frontage. Page 3, second paragraph from the bottom should read: "Mr. Bujold requested after the drainage issue was addressed by the Operations and Maintenance Department, and if it was determined there was a drainage problem, that this be fixed...". Page 5, above Finance should read: Council Member Larson requested they have a future discussion on how the City will..." Page 7, he requested the spelling of Gronsted be checked. He believed it was spelled Kronsted. Page 8, he requested the name Kahnke be checked. He believed it was spelled Konke. MOTION: Council Member Aplikowski moved and Council Member Grant seconded a motion to approve the July 29, 2002 Council Meeting as amended. The motion carried unanimously (4-0). 3. CONSENT CALENDAR A. Claims and Payroll. B. Resolution No. 02-37: Appointing the 2002 Primary Election Judges C. Resolution No. 02-41: Approving Exempt Gambling Permit for Bethel College Sportsphere Event D. Accept Easement Document - Modesette ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES AUGUST 12,2002 10 - MOTION: Council Member Larson moved and Council Member Grant seconded a motion to approve the Consent Calendar and authorize execution of all necessary documents contained therein. The motion carried unanimously (4-0). 10. CITY COUNCIL REPORTS Council Member Grant stated the Maintenance and Task Force was holding a meeting August 13,2002 at 7:00 p.m. at the City Hall. Council Member Larson stated in the future the Council should not state their positions at a public hearing in advance of taking public comment. Council Member Aplikowski requested a future meeting to discuss if they were going to create a 501.(C.)(3.) status for the Day in the Park. She expressed concern about the recent updated employee list provided. Acting Mayor Rem stated the last of the TCAAP meetings was scheduled for August 13, 2002. .. RECESS Acting Mayor Rem adjourned the Regular City Council meeting at 9:50 p.m. Executive Session convened at 9:50 p.m. Motion made by Council Member Grant and was seconded by Council Member Larson to adjourn the Executive Session at 10:12 p.m. . - - . ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES AUGUST 12,2002 11 Dennis Probst Mayor Joe Lynch City Administrator NOTICE OF MEETINGS The next Council Meeting will be held Monday, August 26, 2002 at 7:00 p.m. at the Arden Hills Council chambers. g'o ._ 0 oc;E >~a. "'_0 .s~~ "IM '" >- J "'- ~OE l'--J.; 10 <: .2 01'" c: .~ 'c E <:Eo .!l!o'? '<tD..u..... >- <( Cl 0:::= 0"'0 caI", >-'" <("'0 N..JU'U ...... '<t ...... ...... N M ...... o N >- ., >-0 n:: " <(,2 ::;:- - (,) on::~ ......a.w l'-- ...... g'o ;;~= o Ii') ., >JI '" . >- a>E::: C .u '" ., '" 0 E O')~;;jri. " o 'iI) '" -'" '(3 c: 'u CI'J c:::; C:~ :::::l: <1> :::J '- 1.0 0"'10 og<t u::;:......u>... 00 o.n ...... 10 N E a. "',-8i::;Q1' o :!:~o g a..<Q)..c:: .. ,,,,,,;iSi:: .... to- "'<'<l00l O......I..c o ..c::.= N.s:: 0')'" t::._ CI> It) nJ Q)<.,(1) N"~Z:!:: E ua. n::o ""'..,.'? N.n. ...-. a.> 'tl :!: gg a. -E,t-,:. <'"I' <: 0" . g ~"':g"'.~ N ~ .~..Q)<:,. ~-= ~;~" N N o <'"I cO I <( Cl UJ =0) (,) " ".- E'::3 Q>o o .0(1)0 M a.u::;:':': (j) N e . . CITY OF ARDEN HILLS MEMORANDUM DATE: AGENDA ITEM 3.B September 4, 2002 TO: Joe Lynch; City Administrator Aaron Parrish; Director of Community Services Thomas J. Moore; Director of Operations & Maintenance -C ~ FROM: SUBJECT: Price Adjustment for the New Backup Generator for City Hall Gentlemen, as you are both aware of, at the April 8, 2002 Council Meeting, the City Council unanimously voted to purchase a new backup generator for City Hall. The City Council authorized staff to purchase a mobile generator for City Hall use in an amount not to exceed $35,000.00. Staff presented a new cost estimate for the backup generator to the City Council at the May 13, 2002 Council meeting. This estimate, which included the wiring and installation, was for $40,000.00. This proposal was on the Consent Calendar and was unanimously approved. Staff has learned that an additional $1,582.00 will be needed for labor and 'quick connects'. The quick connects allow one person to instal1/hook up the generator to the City Hall. Staff is requesting authorization to spend an additional $1,582.00 over the $40,000.00 that was unanimously approved by the City Council at the May 13, 2002 City Council meeting. I !L EN HILLS e MEMORANDUM DATE: September 4, 2002 Agenda Item 6.A.2 FROM: Mayor Dennis Probst Council Member Beverly Aplikowski Council Member David Grant Council Member Gregg Larson Council Member Lois Rem Joe Lynch, City Administrator Aaron Parrish - Community Services Director /If TO: . SUBJECT: Guidant Alternative Urban Areawide Review ENCLOSURES: 1. Description of the Alternative Urban Areawide Review Process 2. Description ofIssues to be Discussed in the Alternative Urban Areawide Review 3. Resolution ##02-42 a resolution to order an alternative urban areawide review (AUAR) for the Guidant Campus in the City of Arden Hi11s. Overview In anticipation of their Preliminary Plat and Master Plan PUD application, Guidant would like to begin the environmental review process required under the Minnesota Environmental Policy Act. Further, State Rules require that an environmental review be conducted given the scope of development being proposed. As the Responsible Governmental Unit (RGU), the City must make the determination on what type of environmental review is most appropriate. At this point, the two options consist of an Environmental Impact Statement (EIS) or and Alternative Urban Areawide Review (AUAR). In this particular instance, since development wi11 be phased in over a period of time, an AUAR is the preferred method for environmental review. See the attached information sheets for specific information on the AUAR process. . To initiate the AUAR process, the Council must formally order that the AUAR be completed. A resolution ordering the AUAR to be completed is attached for your review. Once ordered, the following scheduled and process wi11 be adhered to: e e . Page 2 September 4, 2002 Memo to Mayor and City Council 12/05/2002 12/20/2002 12/30/2002 9/09/2002 Ci 9/30/2002 10/14/2002 11/13/2002 11/21/2002 & state agencies, A representative of SRF, the consulting team preparing the AUAR, will be available to answer any questions that the Council might have. Staff Recommendation Staff recommends approval of Resolution #02-42 a resolution to order an alternative urban areawide review (AUAR) for the Guidant Campus in the City of Arden Hills. Requested Action Consider approval of Resolution #02-42 a resolution to order an alternative urban areawide review (AUAR) for the Guidant Campus in the City of Arden Hills. Description of AUAR process e Guidant Corporation is in the process of completing a Draft Alternative Urban Areawide Review (AUAR)/Draft Mitigation Plan for the proposed expansion of its existing campus. The Guidant Corporation site is located within the City of Arden Hills and is bounded by County Road F to the south, Guidant Drive North, Hamline Avenue on the west and Lexington A venue on the east. The AUAR process substitutes for the state Environmental Assessment Worksheet (EA W) or Environmental Impact Statement (EIS) proccss. The AUAR process is similar to those two environmental review processes; however, the AUAR is generally looking at a development scenario and related impacts for an entire geographical area over a period of time rather than a specific project at a specific time. As the Guidant Campus is proposed to be constructed in phases, it was felt that the AUAR process was the best environmental review process to follow as it will consider the impacts of the full build- out scenario. The AUAR also allows for more efficient processing of the environmental review better meeting both Guidant's and the City's schedule for review of the project. Guidant is requesting that the City, as the regulatory governmental unit (RGU) for this project, order the AUAR at the their September 9th City Council meeting. The "ordering" of an AUAR commences the environmental review process and begins a l20-day time period in which the AUAR must be approved. Prior to the AUAR approval for public distribution, City staff will have the opportunity to review the Draft AUAR and provide comments to Guidant Corporation. Based on these comments, the draft document will be revised and submitted to the City Council for review at the September 30th City Council meeting. If approval ofthe Draft AUAR for public cornment is granted at this time, a notice of availability for the document will be a published in the Environmental Quality Board Monitor notifying the public and agencies ofthe document's availability for review and comment. The document is made available for 30 days, allowing the public and review agencies enough time to review the AUAR and submit any comments or concerns to the RGU. e Once the 30-day comment period terminates, Guidant will revise the document to reflect substantative comments and prepare responses to comments. Responses to comments and the Final AUAR/Mitigation Plan, including revisions based on substantative comments, will be completed by Guidant and submitted to City staff for final review and comment. In early December 2002, the completed document including the City's final comments will be distributed to the reviewing agencies and commentors of the Draft AUAR. Following the Final AUAR/Mitigation Plan distribution, there will be a 10-day objection period in which state agencies and the Metropolitan Council can file an objection to the document with the City (the RGU). If no objection is filed, the Final AUAR and Mitigation Plan will be submitted to the City (the RGU) for adoption. It is anticipated that approval of the Final AUAR will be sought from the City of Arden Hills at the December 30, 2002 City Council meeting. . e . . Description ofIssues to be discussed in the ADAR An Alternative Drban Areawide Review (ADAR) is a substitute environmental review process provided for by the Minnesota Environmental Quality Board based on a development scenario for an entire geographic area. Potential environmental impacts resulting from the proposed campus expansion are addressed in the ADAR to a level of detail possible given the data available. As with the 85-acre Guidant Campus planned for full build-out in 2019, the ADAR covers a geographic area that will be developed over a longer, less specific time period than an individual project. Therefore, the development of the planned Guidant Campus requires the analysis of some ADAR issues to be based on a "realistic" expectation of impacts. For both the definite and undefined aspects ofthe proposed development, the following issues must be addressed in the ADAR. · Consistency with City's Comprehensive Plan and compatibility with adjacent land uses · Impacts on water quality and treatment of site storm water runoff · Impacts to existing infrastructure and additional infrastructure needs required by the proposed development (roadways, public utilities, etc.) · Construction impacts potentially resulting in erosion or sedimentation · Environmental concerns related to above and underground storage tanks, on-site chemical storage, etc. . Traffic analysis including analysis ofthe existing and proposed roadway system serving the site, additional trip generation for the proposed development, impacts to the roadway system from additional trips and discussion of necessary traffic management improvements · Air quality impacts · Traffic-related noise impacts The ADAR includes a mitigation plan that identifies mitigation measures required to avoid or mitigate potential environmental impacts that would result from the proposed development. The mitigation plan not only identifies physical mitigation measures, but it also includes information concerning the agency or agencies involved in review, approval or implementation of specific mitigation measures; the time frames for implementing mitigation measures; and the party or parties with financial responsibility for implementing mitigation measures. The Guidant ADAR mitigation plan will likely need to address the following potential impacts: . On-site water treatment methods such as storm water ponding · Additional infrastructure needs (roadways, public utilities, etc.) . Necessary permits and approvals · Necessary traffic management improvements · Erosion control measures CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA e RESOLUTION NO. 02-42 A RESOLUTION TO ORDER AN ALTERNATIVE URBAN AREA WIDE REVIEW (AUAR) FOR THE GUIDANT CAMPUS IN THE CITY OF ARDEN HILLS. WHEREAS, Minnesota Rules Part 4410.3610 provides for a substitute form of Environmental Review know as an Alternative Urban Areawide Review (AUAR) process; and WHEREAS, an Alternative Urban Areawide Review (AUAR) process allows for the environmental review of development and associated infrastructure in a particular geographic area within a jurisdiction if the local government unit has an adopted comprehensive plan; and WHEREAS, the adopted comprehensive must contain at least the foIlowing elements: a land use plan; a public facilities plan including a transportation plan. and sewage coIlection system policy plan; and an implementation program; and . WHEREAS, the City of Arden HiIIs has an adopted Comprehensive Plan containing the required elements; and WHEREAS, the specified boundaries for the Guidant Campus AUAR are shown in the attached exhibit and are as foIlows: County Road F on the south, Guidant Drive North on the north, Hamline Avenue on the west and Lexington A venue on the east in the City of Arden HiIIs; and WHEREAS, the City of Arden HiIls (the "City") is the Responsible Governmental Unit (RGU) pursuant to Minnesota Rules Part 4410.3610 Subp. 1; and WHEREAS, there is uncertainty as to the exact timing of the development stages on the site with anticipated development to begin in 2005; and WHEREAS, the Guidant Campus is consistent with the City's adopted Comprehensive Plan and with known development plans of property owners within the area; and NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, that an Alternative Urban Areawide Review (AUAR) is the most appropriate form of environmental review provided for in the Minnesota Environmental Review Program. . e . . BE IT FURTRERRESOLVED, by the City Council of the City of Arden Rills that an AUAR be initiated and completed for the area shown on the attached exhibit A. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 9th DAY OF SEPTEMBER, 2002. DENNIS PROBST, MAYOR ATTEST: JOE L YNCR, CITY ADMINISTRATOR r.n :j c::: ~ ~ .2 a.. U'l z ~~ ~ -I - o ~ o Z (U 2 OJ ~ o Z N ClI C? ~ '!'" a. c:> u:'E. ll.l ll.l III U C'Q: = tJ <:> D'ltJ .5 1: = C'Q: = '= C'Q: .- _ ::::iI a. C) . . . ~ rENHIL1S MEMORANDUM DATE: Agenda Item 6.A.3 September 3, 2002 TO: Mayor Dennis Probst Council Member Beverly Aplikowski Council Member David Grant Council Member Gregg Larson Council Member Lois Rem Joe Lynch, City Administrator Aaron Parrish - Community Services Director f{f FROM: SUBJECT: Chesapeake Master Plan PUD Extension ENCLOSURES: 1. August 7, 2002 Letter from CMK Arden Holdings 2. September 4, 2002 Letter from Dan Beeson Overview On March 26'\ 2001, the City Council approved a Master Plan Planned Unit Development for Chesapeake Companies. The proposal contemplated a redevelopment of the former Naegle Sign Company parcel and the ATS Steel property. The following two items were incorporated as conditions of approval: I. Due to the time requirements of land acquisition and securing major tenants, the time requirement for the final plan to be submitted no more than six months after the date of the City Council's approval of the Master PUD be changed to eighteen months for this proposal; and 2. Approval of the master plan is contingent on the applicant's acquisition of all properties shown in the proposal. Since the eighteen month timeline for submitting a final plan will lapse in the near future, the applicant is requesting a twelve month extension of their Master Plan PUD approval. In evaluating this request, the Council may want to consider the following: e . . Memo to Council Page 2 September 4, 2002 1. Generally speaking, at any given time there are a limited number of potential tenants looking for the amount of space proposed in the Master Planned Unit Development. As such, a longer time frame is necessary. 2. The eighteen months provided was longer than the code maximum of six months. The following language from the Section 8.D.6.f. of the Zoning Ordinance is illustrative: Effect of PUD Master Plan Approval. The applicant for a PUD Master Plan which has been approved by the Council shall apply for a PUD Final Plan or the 1st stage of the Master Plan within six (6) months, unless some other phasing plan has been approved by the councilor unless a written request for a time extension has been approved by the Council. 3. The owner of ATS Steel has indicated a concern with the plan approval extension. To date, the applicant and ATS Steel have not been able to reach mutually agreeable terms on the sale of the property. The applicant has acquired a majority of the property necessary for the project to proceed. Based on previous correspondence, ATS Steel feels this plan approval limits the marketability of their property by limiting the sale to one buyer. Since acquiring the property is a condition of the Master Plan PUD approval. the applicant can market the property to other prospective buyers. In short, if Chesapeake does not acquire the property, the PUD approval has no effect. See the attached letter from ATS Steel's legal counsel for additional information. As a side note, ATS is currently seeking a reduction in their taxable market value from the County. Their current taxable market value is approximately 1.5 million dollars. Additionally, in the letter from Mr. Beeson it is indicated that "Although the property has been listed for sale by Welsh Company at $2,000,000. . . the property cannot be sold in the market place for a price anywhere close to fair market value." After reviewing the Minnesota Commercial Property Exchange, the multiple listing service equivalent for commercial property, staff has determined that the property has only been on the market since July 31, 2002, or just over one month. Give the current economic climate. this does not appear to be enough time to assess market interest in the property. Staff Recommendation Staff recommends approval of the twelve month extension of the Chesapeake Master Planned Unit Development approval. ReQuested Action Consider a twelve month extension of the Chesapeake Master Planned Unit Development approval. CMK Arden Holdings 1::- ';"~1-1 CITY Ot' hKW~N HI~~S August 7, 2002 Mr. Aaron Parrish City of Arden Hills 1245 West Highway 96 Arden Hills, MN 55112-5794 Re: Planning Case #01-05 Master Planned Unit Development Dear Aaron: The approval ofthe Master Planned Unit Development proposed an eighteen month time requirement for the final plan to be submitted. CMK is requesting an extension of this time frame for an additional twelve months. Please inform me of any paperwork or information that you will need to process this request. You can contact Diane Fredeen at 952-847-2445 for additional information if required. Sincerely, CMK Arden Holdings Chesapeake Partners of Minneapolis, Inc Its General Partner ~~ Its President e . . . . . LEVANDER, GILLEN & MILLER, P.A. ROGER C, MILLER T'IMO'tl-iY 1. KUNTZ DANlEL J. BEESON ROLLIN H. CRAWFOR.D KENNETH J. ~OHt.F 'TONlitA T. DOVE STEPHEN H. FOCHLER .1t-JAl P: KAJH.oVI(H ANG~LA M ,un AMAAI' "'KORINE L l..AI\D AN!" C. O"REIL:",( TROY c. J(tptF.R DARCr M MOHR ROBIN M. H€NNlX ATTORNEYS AT LAW September 4,2002 H"ROLD I,.r.V"'~DtR I!HO,19~Z Mayor Dennis Probst City Hall 1245 West Highway 96 Arden Hills, MN 551IZ Council Member Beverly Aplikowski City Hall 1245 West Highway 96 Arden Hills, MN 551IZ fllFrl-lVR Cll.LtN REtiRED .M..SO "DMrM~O IN W1!\l;0MIN "MSOAO/.lrrrSOINNORtIl tMlIOTA Council Member David Grant City Hall 1245 West Highway 96 AIden Hills, MN 55112 Council Member Gregg Larson City Hall 1245 West Highway 96 Arden Hills. MN 551I2 Council Member Lois Rem City Hall 1245 West Highway 96 Arden Hills. MN VIA FACSIMILE AND U.S. MAIL RE: Chesapeake Companies NLP Group, LLC - Request for Development and Master POO Timelioe Extension Our File Nos. 20068.00000 Ilnd 20069.00000 Dear Mayor and Members of the City Council: My clients. A.T,S. Steel, Inc, (ATS.) and HPMK, LLC (HPMK) are adamantly opposed to any extension of the 18-month deadline for tlie Chesapeake development proposal, Master pun and parcel acquisition and assemblage. As explained in detail in my written correspondence to Mr. Lynch and Mr. Parrish, copies of which are attached for reference: I,) Throughout the Master PUD and preliminary plat review process. Chesapeake repeatedly represented to tbe City Council its "intention" to acquire the A.T.S. parcel, as well as the adjoining parcels. 633 SOUTll CONCORD STREET' SUITE 400' SOU'[lj SAINi PAUL, MINNESOTA 55075.651-451.1831 . FAX 651-45()..7384 c a6"d~gv8#~l ~08:6 cO/PO/50 !P88L09p~99 'V'd'Jallt~?iUalTt8'JapUB^al :Aq .uas . M:ayor Dennis. Probst Council Member Beverly Aplikowski Council Member David Grant Council Member Gregg Larson Council Member Lois Rem Page 2 September 4, 2002 2.) Condition 14 of the City approval of the Master PUD expressly states that, "approval of the Master Plan is continl,':ent on the applicants acquisition of all properties shown in the proposal." (emphasis added) 3.) Chesapeake has publicly marketed its proposed development in reliance upon the Master PUD and fully incorporated the A. I.S. parcel as an integral part of its proposed development. 4,) 1I0wever, since September of 2001, Chesapeake has refused to engage in any good faith negotiations to purchase the A.I.S. parcel-contrary to: a.) its repeated representations to the City Council; and b.) Condition 14 of the Master PUD approval. . As a direct result, Chesapeake has placed A. T .5. and HPMK in a totally untenable position. Although the property has been listed for sale by the Welsh Company at $2,000,000 ($300,000 below the appraised fair market value of the property as of October 31, 2000). the property C3l1not be sold in the market place for a price anywhere close to fair market value. In fact, prospective buyers have abandoned interest in the property once they have been informed of the Master PUD and development plan that incorporates the A.I.S. parcel. In conclusion, the pending Master PUD represents an "exertion of significant control" over the A.T.S.lHPMK parcel. Ihis control seriously restricts my clients' "freedom to choose" how to use the property, including restriction of their ability to sell the property in the market place without a substantial impairment of fair market value. Therefore, A.T.S. and HPMK. request that the City Council deny Chesapeake's application for extension of the Master PUD and development plan proposal beyond September 26, 2002, . ~~/8 06Bd!9Pij#~( !08:6 co/rO/60 ~rij8LOSr~S9 'V'd'"OllTW~'UOIIT8'".pUe^Ol :~q .U'8 e . . Mayor Dennis Ptob~t Council Member Beverly Aplikowski Council Member David Grant Council Member Gregg Larson Council Member Lois Rem Page 3 September 4, 2002 DIB/so Enclosures c: Joe Lynch, City Administrator (w/enclosures) Aaron Parrish, Arden Hills City Planner (w/enclosures) Jerome P. filla, Esq. (w/enclosures) Peggy McKee (w/enclosures) Mark McKee (w/enclosures) Jeff Minea (w/enclosures) ~~/v a6Bd~9Vij#~[ !08:6 ~0/VO/60 !vij8L05v~59 '~'dlJal1r~~'ual1TD'~apU~^al :~q luas - ROGER C..ItLL. TIMOTHI' J. K\lNTZ OANlfJ. J. BWON ROLLIN H, CRAWFORD KENNtTH J. ROHLP +TONltTA. T. DOVE. STEP'HlN H. FOCHLER . -JAY P. K.4.RlQVICH mGlLA M. LUTZ AMANN 'KORl"!I L. LAND ANN C. O'Rl'lI.l.Y TROY C. )(IPm. bARcr M. MOHR ROBIN M. HENNIX . LEVANDER, . GILLEN & MILLER, P.A. ATTORNEYS AT LAW June 6,2002 HAROI.O'LEVA'NDr.R 1'10.1992 Mr. Joe Lynch Arden Hills City AdminiStrator City Hall . 124:> West Highway 96 Arden Hills, MN 55112 ARTHUR C11J.EN Rmutl , :'M.SQ.t.1:IwrnmlNWl:!CC:lN!;1'" "'AUO~mm IN NoIm1 O,loIUrA Mr. Aaron Parrish Arden Hills City Planner City Hall 1245 West Highway 96 Arden HilllI;MN 55112 . RE: Chesapeake Companies NLP Group; LLC and A.T.S; Steel, Inc. lUld HPMK, LLC-- Acquisition for Chesapeake Companies Ouc'Flle Nos. 20068.00000 and 20069.00000 Gentlemen: I represent A.T.S, Steel, Inc. (A.T,S.). as well as HPMK., LLC, which are respectively the busipess tenant and tb.e fee owner of the 4.2 acre parcel and 53,872 square foot building located in the Gateway Business District. As you are aware, Chesapeake Companies NLP Group, LLC(Chesapeake) is attempting to market and develop the A.T.S, parcel; along with several adjoining parcels. pursuant to the Master POO approved by the City of Arden Hills on March 26, 2001. Chesapeake's plan for a 499,999 square foot corporate headquarters utilizes the A. T. S. parcel as a key component fur access and development of the overall 26: 5 acre redevelopment. During the Master PUD and prellririnary plat review process, Chesapeake repeatedly represented to the City of Arden.Hills its "intention" to acquire the A.T.S. parcel, as well as the adjoining parcels. Condition 14 of the City approval of the Master PUD states that "approval of the Master Plan is contingent on the appUcant's acquisition of,all properties . shown in the proposal.. (emphasis added.) Pursuanllo the Master PUD approval, 633 sourn CONCORD STIlEET. SUITE 400' SOtm-l SAlNT PAUL, MlNNESO'll>. 55075.651-451-1831' PAX 651-450-1384 ~~/s ,68d~9v8#~{ ~08:6 ~01V0/60 ~v88LOSvIS9 '~'dfJal1t~~lua1118fJapUe^~l :Aq .uag . . . Mr. Joe Lynch Mr, Aaron Parrish Page 2 June 6, 2002 Chesapeake was granted an 18 month window in which to assemble all parcels. Although Chesapeake purchased the 19.9 acre Morris Communication parcel in Detember 2001, the developer bas failed to negotiate in good faith to acquire the A.T.S. parcel. In fact, since September of 2001, Chesapeake has rd'used any negotlation fur the purcha5e ofti!e A.T.S. parcel. Attached for your reference is a copy of my letter sent to Peter Carlson of Chesapeake on April 10. 2002. outlining my clients' elClreme frustration with Chesapeake's refusal to negotiate and inviting Chesapealce to enter into a sale agreement canslstent willi its prior representations by May 31, 2002: I have been further advised that M:T. Properties (the owner of the railroad parcel) has ceased negotiations with Chesapeake because of Chesapeake's refusal to negotiate a purchase with my client. Under the present parcelconfiguratian and use, A.T.S.mPMK enjoy the use and benefit of the railroad spur line to serve the praperty, and may object ta abandonment of the railroad line if they contemplate separate development of their parcel. . A. t .S. and HPMK are considering all options for maximwn utilization of the etisting . building, as well as potential consolidation of operations and sale of the property. However, Chesapeake has placed A.T.S, and HPMK in a completely untenable position. The property simply cannot be sold in the milTket place fur a price anywhere close to the fair market value of the property for its bi,gbest .and best use~as long as the cloud of the Chesapeake redevelopment and acquisition hangs over the property. Peggy McKee, CEO of A. T.S. Steel. Inc. and principal partner in HPMK, will be returning to Minnesota from the company's Arizona corporate headquarters late in June. She has asked . that I arrange a meeting with you during het stay so that we may d.iscuss the potential resolution of A.T.S./HPMK claims. as well as the strong opposition of A.T.S. and HPMK to any extension of the 18 month window of development opportunity for Chesapeake under the Master PUD. ~~/9 .6"d~9r8#~{ !OC:6 GO/PO/60 ~1>ijCLOC;1>~C;9 .V.djJal1t~~'uaTTID'JapU6^al :^q ~uas . Mr. Ioe Lynch Mr. Aaron Parrish Page 3 June 6, 2002 I am advised as to tbe;exact dates when Ms. McKee will be in.towil, I will Call to a conference t the Arden Hills City Hall at a mutually convenient date and time. DJB/so . Enclosure c: Peggy McKee (wlo enclosure) . . ~~/L o6"d~9v8#~( ~OC:6 ~0/vO/60 ~v8CLO<;v~<;9 'V'd'JOTTTn~'U.TTTD'JOPUB^Ol :~q "uas . . . ~.Jm~ ( . I '~. ;(:: ,~'~~ "j :,~ ~ MfI.,.~ UtJ8' ~ ROGrR C. MIu'EJt TIMO'l'HY J. KUNTZ OANI!L J. BEESON ROLLIN H. CRAWFORD KeNNETH ), ROHLF *TONETl'A T. OOVE STEPHEN H. FOCHLE.R -JAr P.IWU.OVICH ^NGEl.A M. WI<: MMNJoI 'KORINr L lAM) ANN C. O'REILLr TROY C, KrPLER DARCI' M. MOHR ROBIN t.l HENNIX LEVANDER, GILLbN & MILLER, P,A. 1lIkl:dJmt..'1l.~~~~~ ATTORNEYS AT LA.W April 10, 2002 HAROLD LE!JAMO!R lIIHI-I!l9Z Mr. Peter C, Carlson President Cbesapem Companies n \ 11100 Wayzata BoUlevard Suite 766 Minnetonka, MN 55305 oUtTHUI ClUEN IImIlIl;> VIA FACSIMILE AND U.S. MAIL -M30 ~MIITlD1N WISCONSIN -AUl)AtlIrwlrtTEDIH NOk'J11 IMIWT" RE: Chesapeake Companies NLP Group, LLC and A;T.S. Steel, Inc. and HPMK, LLC - Acquisition for Cbesapeake Companies, 1.35W and 1.694, Master PUD and F"mal Plat - Gateway Business CenterlInterstate Crossing Our File Nos. 20068.00000 and 20069.00000 Dear Mr. Carlson: My clients A.T.S. Steel, lnc, (A.T.S.) and HPMK, LLC have asked that I communicate with you in writing expressing their e)(treme frustration with your company's refusal to negotiate for the purchase of the A.T. S. parcel. By way ofhistoncal summary, you presented a written Memorandum of Understanding for the purchase of the 4.2 acre A.T.S, parcel and 53,872 sq, ft. building in October of 2000. The proposed purchase price was $1,320,000_ This amount is wbstantially less than the present estimated market value for tax purposes, and, as you have acknowledged to I!le. was not based upon any appraisal of the property. You, as well as other representatives of your development company, have repeatedly represented to the City of Arden Hills your "intentioll" to acquire the A.T.S, parcel in furtherance of your development plans for the Gateway Business Disttict. In reliance upon your representations and application, the Cjty of Arden Hills approved on March 26,2001. the proposed Master POO. Pursuant to this approval, Chesapeake was granted an IS-month window in which to assemble all rCTl111ining parcels and secure a major corporate tenant/user. Condition 14 of the City approval of the Master PUD clearly States that "approval of the Master plan is contingent on the applicants acquisition of all properties shown in the proposal." (e/Ilphasis added) 633 'OU1'H CONCORn Sn.nT' sum 400. SOuni so,lM' PAUL, MINNeSOTA 55075.651.451.1831- FAX 651,450-7384 .~/a a6ed!9v8#~( ! ~~:6 ~0/vO/60 '~.d'JelTT~~'ual1r8'JepUe^al :^q lues !va~Losv~S9 '..' (.... . . .'., Mr. Peter Ca.rhon Page 2 April 10, 2002 . The Concept Plan, Site Plan and Survey for Chesapeake's corporate business campus project encompasses 26,S acres, including the A.T.S. parceL The plans show full utilization of the A.T.S. parcel for office building construction, as well as principal and secondary site access. I~ is clear that the A.T.S. parcel is essential to the Master PUD plan that you presented to the City Planning Com.tni8sion and which was approved by the Arden Hills City Council-subject to the condition of acquisition of the A. T, S. and MT parcels. On May 29,2001. the City subsequently approved the Plat of the Northeast Comer Addition, which encompasses the 19.9 ai:res Morris Communications parcel (except the billboard .. outlots). At the time of this hearing. your representatives told the City that Chesapeake was still in "negotiating" for the purchase of the A.T.S. parcel. Final plat approval was granted by the City with the express understanding that Chesapeake wUl; L) eventually acquire all parcels shown on the concept plan (including the A. T.S. parcel); and 2.) consolidate all parcels through an additional platting process. In addition, final plat approval was conditioned upon the creation and recording of a restrictive covenant that the lots of the Northeast Corner Addition "will not be developed separately as it is the . understanding that all lots will be consolidated through an additional platting process.. (emphasis added) . In our meeting of August 9, 2000. in my office. r indicated to you that my clients' appraisal of fair market value of the property was completed by C, E. LaSalle and Associates. Mr. LaSalle completed his appraisal with a valuation dale of Ociober 29, 2000, the date of death of Harry McKee - one of the principal shareholders of A.T.S. and HPMK, LLC. This appraisal valuation, as wellll.3 the Tony Speiker fixture appraisal valuation, has been used for the purposes of the.McKee estate valuation and not simply as a cOndemnation appraisal. The total Ilppf'1lisal value, with tirrie adjusunent, was $3,040,000. In addition, my clients conservatively estimated that an additional $100,000 would be required in relocation assistance to relocate the A. T.S. specialty steel business to a new IQcation. Therefore. the tota\ purchase price to be paid by Chesapeake was $3,140,000. At the time of our meeting. you indicated a willingness to negotiate and enter into a written purchase agreement and close on the purchase by spring of 2002. You also stated that closing would not be contingent upon pre-leasing or finding a major anchor or corporate end-user. You asked for and we provided copies of the A,T,S, building plans and survey, which were delivered to your legal counsel, John Dram. in early September 2001. Subsequently in September of 2001, you withdrew Chesapeake's prior offer and declined.... to pursue the . purchase further. . . ~~/6 .68d!9vB#~( !~8:6 ~O/PO/60 ! I7B8L05P ~59 .V.d'Jal1T~~(ual1T8'JapU~^al :Aq luaS - - - ( ( Mr. Peter Carlson Page 3 April 10. 2002 In November, I again communicated with your legal counsel, John Koneck, who indicated that Chesapeake Wlls purchllsing the adjoining Morris Communication's Company (Moms) parcel, and acknowledged after talking with you, that Chesapeake still had an "interest" in purchasing the A. T ,S. parcel as the "development" parcel would be "better" if it were included. Following authorization from my client, I presented to Mr. Koneck an offer of sale at $2.6 million conditioned upon: 1.) closing on March 31. 2002; and 2.) payment by Chesapeake of all real estate taxes due and payable in 2002,. The good faith reduction in purchase price was predicated on changing market conditions in the specialty steel industty, as well as consideration of potential consolidation andJor downsiziIig of the A.T.S. business. Please keep In mind that it my clients' valuatiOli. case is ultimately presented in a contested cODd~tion, the just compensation claim Jor fair market value of the subject property , 8lI. improved will be in excess of $3,040,000, together with a substantial claim for relocation assistance, reestablishment and moving expenses in excess of $100,000. You requested the opportunity to inspect the building, and my client agreed. Following our . January 18, 2002; viewing of the building and improvements with you and your partner, it was our understanding that you would reply to my clients' counter offer. Chesapeake has failed and/or refused to either accept the terms of sale or make any attempt . toward good faith negotiation. I further understand thaI you had a direct meeting with Mark McKee, in my absence, and expressed to him that Chesapeake is "not interested" in purchasing the A.T.S. parcel-at least at this time. Chesapeake's claimed disinterest in the A.T.S, parcel is most puzzling in view of the fact that: 1.) in December 2001, Chesapeake closed on the purchase of the Morris parcel; 2.) Chesapeake is continuing to negotiate with MT Properties for purchase of tile 2 .4~acre railroad right of way; and 3.) in tile March 4, 2002, edition of the Real Esrare Journal you describe your Interstate Crossing development as uready to go" for development as a 26.5 acre corporate headquarter facility. Again, the concept plan depicted in the article shows full . Incorporation and utilization of the A:T.S. parcel. In summary, the A.T.S. parcefis elIsentiallo your marketing and development plans. The City's Master PUD approval and plat approval were further contingent upon lllIsemblage of the A. T .S. parcel. My clients can no lODger place therr business and business planning on hold while waiting for Chesapeake to engage in good faith negotiatioUllIo purchase the A.T.S. parcel as required by: 1.) Chesapeake's representations to the City of Arden Hills; and 2.) the development approvals granted by the City, conditioned upon acquisition and assemblage of the A.T.S, parcel. ~,/O, .68d~9vB#---...r.n;( ~ ~8:6 WlvO/60 ~ vBU09v '99 .V.dlJaTll~~jualT18'JapUe^al :AQ luas .{ - Mr. Petet Carl,oll Page 4 April 10. 2002 Therefore. I have been authorized to again extend to Chesapeake the offer to sell the 4.2-acre A.T.S. parcel and 53,872 sq. ft. building to Chesapeake for the sum of $2.6 milllon. Closing must occur by May 31, 2002. A.I.S. is willing to negotiate the final written terms of sale, and may be willing to extend terms of sale. ' We invite you to immediately enter into good faith negotiations that will clllmin'lt~ in the sale of the A. T,S. parcel to Chesapeake-consistent with your repeated representations to the City, as well as your current marketing efforts. . Ifoot accepted, and closing cloes not occur by May 31, 2002, this offer is hereby irrevocably withdrawn. A. T.S. will not thereafter negotiate with Chesapeake for the sale ofits property as a willing buyer, and will vigorously resist any such acquisition and will avail itself of all other alternative remedies. My clients further request that you reply directly to me, and channel all further unications regarding the negotiations and purchase through me, their legal counsel. II 1100 om/so c: Peg cKec Mark McKee John Koneck. Esq. e ~ ~/ ~ ~ .68d~91>8#>'llJl;( ~ ~C:6 00/1>0/60 ~1>8UOS1>~S9 'V'd'~.TTr~~'U.TTr8'~.pUe^.1 :Aq ~u.S e . . ~ ~ EN HILLS MEMORANDUM DATE: Agenda Item 6.A.4 September 6, 2002 TO: Mayor Dennis Probst Council Member Beverly Aplikowski Council Member David Grant Council Member Gregg Larson Council Member Lois Rem Joe Lynch, City Administrator Aaron Parrish - Community Services Director /Plt Planning Case #02-18, Cub Foods / Oppidan; Master and Final Plan PUD Lexington and Grey Fox FROM: SUBJECT: ENCLOSURES: 1. Revised Building Elevations Request The applicant is requesting Master and Final Planned Unit Development approval to construct a grocery store at the comer of Grey Fox Road and Lexington Avenue. Overview In response to the Council's direction at their August 26, 2002 Council meeting, the applicant has submitted revised building elevations for the Council's consideration. Since the materials were submitted Friday afternoon, staff was not able to fully review the changes. However, based on a preliminary review, staff has noted the following changes: 1. The drive-through for the pharmacy has been eliminated on the south side of the building. Cub Foods signage, placed further to the east, has replaced the pharmacy signage on the south elevation. 2. Cub Foods signage on the north elevation has been placed further to the east. 3. Decorative lighting has been placed on the pilasters of the north and south elevations of the building. --- . Page 2 September 6, 2002 Planning Case #02-18 Staff will provide additional comments if necessary at the Monday meeting after a more thorough evaluation has been completed. Staff Recommendation Staff recommends approval of Planning Case #02-18 with the following conditions: . I. Placement of ftre hydrants every 500 feet around building including the rear side of the building. Hydrants need to be within 100 feet of Fire Department connection. 2. A ftnal utility plan be submitted to the City Engineer for his approval. 3. A ftnal grading and drainage plan be submitted to the City Engineer for his approval. 4. A masonry trash enclosure be provided using materials that match the primary building. 5. The applicant submit a landscape performance bond or other surety for 125% of the cost of materials and installation valid one full year from the date of installation. 6. A PUD Permit and Development Agreement be approved by the City Council prior to the issuance of a building permit. 7. City may disallow seasonal flower sales if parking is inadequate to serve the proposed retail space. 8. The applicant has the existing rail line vacated prior to the issuance of a Certiftcate of Occupancy. 9. The applicant obtains all necessary permits from the Rice Creek Watershed District and Ramsey County; 10. Compliance with the applicable provisions of the Zoning Ordinance. II. Reconstructing the median north of the railroad tracks to provide a longer left turn lane as approved by the Ramsey County TraffIc Engineer. 12. Prohibiting outbound left turns at the Lexington Avenue access. 13. Reconstructing Grey Fox Road to a four lane width between Lexington Avenue and the back entrance ofthe development as approved by the City Engineer. 14. Provide the County with a new coordinated traffIc signal timing plan for the interconnected system between County Road E and 1-694. IS. Provide an updated trafftc study for review and approval by the Ramsey County TraffIc Engineer prior to the issuance of a building permit. Deadline for Al!:encv Actions The City of Arden Hills received the completed application for this request on July IS, 2002. Pursuant to Minnesota State Statue, the City must act on this request by September 13, 2002 (60 days), unless the City provides the petitioner with written reasons for an additional 60 day review period. The City may with the petitioners consent extend the review period beyond the 120 days. . Options L Rccommend approval as submitted. (4/5's vote required) Page 3 September 6, 2002 Planning Case #02-18 2. Recommend approval with conditions. 3. Recommend denial. If the City denies the petitioners request, "...it must state in writing the reasons for the denial at the time that it denies the request". 4. Table for additional information. --- . . . 11 If' 1.1 i!. )> .... g-n :::lC: :;0:1 .'" -n s::0 ::5"0 ~a en(/) o ..... Q) fO '''01. I] . 10 .> .z -. :E m en -t m r- m :r;; ::! o z ;, ~ , _.__-.....'~ ,....j iJ ~ J ! i_' z o :;0 -t ::I: m r- m :r;; ::! o z , : ~: ^ ,~ i "" ~ ~ ~~ '!'.... t..,...,.. 7': 1'<..' "l . ~ ' ~ ~:2 c , , " "" ',] 4 ". -; :~ ~;j 1: -~~ ~ ....'" . " j :) .> \ en o C -t ::I: m r- m :r;; ::! o z -----<!i> ]"-- --~ :--.:--.::.: I n ~:~ ~: -.~ '" - m t + + + * q.~ > ~. ~; 0 en ~ ~ ':!i -t "l,'.:: m I I r- I m L I :r;; '-I 0 Z -r-- .- . ~ 'f' , ; ~>~ !: ___.1 _ C".' ...f".'.'.,'. ,_' -', ",' ~,>C:',,) I ~11I' ~-i':\-~~': ,I y-,." l,'~ k~" 'i " 't,\cic;:i I. ~_ ,ill ",~ ui,1 ~ I";; .g.. '~i'1 ~:; f .~~ , '".~ ....!,EE iffi~ c-:> ! I:' I ffil I WI t I lin :__1___ _ll . .i ,:;. J '" 1:*!::lYii TIJ] '" ~"'__"_':..J..' , · JJ' - . . ! il II i I I , , I I -r ~ .... I -~ ~ .", ",{ ~i ~.:i ~;;:;;;~ ~; ~>[~ '" "'''' -- . .. ~ ~HILLS MEMORANDUM DATE: September 5, 2002 Agenda Item 6.B .1 TO: Joe Lynch, City Administrator cc: Aaron Parrish, Community Resources Director Terrance Post - City Accountant @) Revisions to Adopted 2002 Budget FROM: SUBJECT: Backl!round The Arden Hills City Council has approved several items this year that do not appear in the adopted 2002 budget. The purpose of this memorandum is to summarize these various changes with respect to overall revenues and expenditures. Revised Budl!et Items - Detail 1. Recreation Fund No. 226 (with related changes to Community Services Fund No. 225 and Public Safety Capital Equipment Fund No. 412): . This item was approved as part of the consent agenda at the January 28, 2002 regular Council meeting. . The impact of this approved change was to increase the operating deficit in Recreation Fund No. 226 from an adopted $147,632 to a revised $157,812. . The increased subsidy need was in large part financed by an increased transfer from the Community Services Fund No. 225 from an adopted $62,632 to a revised $70,062. . There was also a corresponding reduction in the operating transfer from the Community Services Fund No. 225 from an adopted $41,755 to a revised $30,027. This transfer change is reflective of a revised funding split from the Community Services Fund No. . 225 from "60/40" to "70/30". 2. Fire Protection Services Department No. 42200 of General Fund No. 101: . This item was approved as part of the consent agenda of the February II, 2002 regular Council meeting. . The approval for a capital contribution to accelerate the purchase of a fire tanker truck in the amount of $29,839. The contribution commitment is evidenced by a "Contribution Agreement" between the cities of Arden Hills, North Oaks, and Shoreview, and the Lake Johanna Fire Department. . . . 2 September 5,2002 Revisions to Adopted 2002 Budget 3. Antenna Rental Revenue of General Fund No. 101: . This item was approved as the result of an approved first amendment to a water tower lease between AT&T Wireless and the City as unfinished and new business item "C" of the March 25, 2002 regular Council meeting. The lease amendment calls for a monthly revenue increase of $405 for nine (9) months in 2003 or $3645. . 4. City Hall Facility Department No. 41950 of General Fund No. 101: . The item was initially discussed as unfinished and new business item "A" of the April 8, 2002 regular Council meeting. The specific motion was to authorize staff to purchase a mobile generator for a cost not to exceed $35,000. 5. City Hall Department No. 41950 of General Fund No. 101: . The item was approved under the Administrator Comments portion of the April 29, 2002 regular Council meeting. The item consists of expenditure for City Hall window coverings from Aero Drapery at a cost of$8,169.62. . 6. 2002 PMP Project (Street Maintenance Department No. 43100 of General Fund No. lOt PIR Fund No. 501, and SWM Fund No. 604): The item was included in new, unfinished business item "F" of the April 29, 2002 regular Council meeting. The specific action was represented by the acceptance of a Feasibility Report for reconstruction of Hunters Court and Waldon Place at an estimated project cost of $194,300. . The adopted 2002 budget identified a $116,000 expenditure for an unidentified (although assumed to be mill and overlay) project. 7. Mayor and Council Department No. 41100 of General Fund No. 101: . . . The item was approved under the Council portion of the April 29, 2002, Council meeting by motion. The item consists of in creasing the City's funding for the Day in the Park activity from an adopted $10,000 to $17,500. . 3 September 5,2002 Revisions to Adopted 2002 Budget 8. Park Fund . The specific items were approved under Agenda Items 8.A and 8.B of regular Council meeting of August 12, 2002. The items consist of approval to contract for park facility concept design servIces ($30,000) and installation of new park signage ($42,500). . Recommendations The above changes have been reflected in the attached resolution (Resolution No. 02-42, "A Resolution Summarizing Revisions to the Adopted 2002 Budget"). Staff encourages the City Council to approve this resolution at the regular City Council meting of September 9, 2002, as a means of logically tracking the budget changes that have occurred during 2002. . . . , . CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 02-42 RESOLUTION ADOPTING REVISIONS THE 2002 BUDGET WHEREAS, the City Council adopted and approved a final 2002 budget on December 17,2001; and WHEREAS, various City Council actions in 2002 have served to revise the 2002 adopted budget. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Arden Hills, Minnesota, that the following 2002 revised budget be adopted and approved: General Fund: Taxes $2,151.000 $2,151.000 General Government $748,010 $793,185 Licenses & Pennits 338.150 338.150 Public Safe 1,189,150 1,218,989 Inter ovenunental 244.508 244.508 Street Maintenance 341.955 369,605 . Char es for Service 50,700 54,345 Park Maintenance 349.105 349,105 Fines & Forfeits 26,200 26,200 Other Financial Uses 333.750 306, 100 Miscellaneous 93,175 93,175 Other Financin Sources 60,000 89,839 Total General Fund $2,963,733 $2,997,217 Total General Fund' $2,961,970 $3,036,984 Special Revenue Funds 774,858 785,075 Special Revenue Funds 746,504 810,586 Debt Service Funds 287,715 287,715 Debt Service Funds 311,315 311,315 Capital Project Funds 917,705 878,327 Capital Project Funds 403,850 461,339 Subtotal Govt. Funds $4,944.048 $4,948,334 Subtotal Govt. Funds $4,423,629 $4,620,224 Enterprise Funds 2,521,740 2,521,740 Enterprise Funds 2,305,580 2,305,580 Total All Funds $7.465,788 $7.470,074 Total All Funds $6,729,209 $6,925,804 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 9th DAY OF SEPTEMBER, 2002. . DENNIS PROBST, MAYOR ATTEST: JOSEPH P LYNCH, CITY ADMINISTRATOR . . ~ ~~ILLS MEMORANDUM DATE: September 5, 2002 Agenda Items 6.B.2 - 6.B:.4 TO: Joe Lynch, City Administrator CC: Aaron parrish, Community Resources Director Terrance Post - City Accountant @) Proposed 2003 proposed Budget and Levy FROM: SUBJECT: A. Summary Comparison of General Fund Revenues, Expenditures, and Operating Transfers B. All Funds Proposed 2003 Revenue C. All Funds Proposed 2003 Expenditure D. August 15,2002 Ramsey County Truth in Taxation Process Letter ENCLOSURES: Backl!round At the regular City Council meeting of August 26, 2002, a 2003 levy supported (i.e., General Fund) budget was presented supported by a 2.94% levy increase ($64,710 - from $2,201,002 to $2,265,712). This baseline scenario resulted in an approximate break even situation (a $3,444 deficit) and several needs unmet. Specifically, funding for the Day in the Park activity was at $15,000; funding for the Program Fund deficit was inadequate at $15,000; the implications of adopting the LRA recommended salary plan were not incorporated along with some other less material items reviewed by staff (e.g., management fees in the Mayor and Council Department at $1,500 appeared low for the Councillstaffretreat). Proposed 2003 General Fund Budl!ct Chanl!es from Baseline No Chan es A. Revenue B. Expenditures/Transfers Out $2,000 1. Increase management fees in Mayor & Council department from $1,500 to $3,500 $5,000 . 2. Increase Day in the Park funding from $15,000 to $20,000 . . . 2 September 5, 2002 Proposed 2003 Proposed Budget and Levy 3. Remove document Imagmg capital item from administration department <$36,800> 4. Eliminate DARE program funding from sheriff contract <$11,000> 5. Reduce LJVFD contract <$896> 6. Rcmove two (2) park maintenance capital items: a. Perry Park berm removal <$7,000> b. Perry Park fence/distance markers <$8,500> 7. Incorporate LRA salary plan $16,105 8. Increase operating transfer out for Program Fund deficit from $15,000 to $33.415 $18,415 9. Operating transfer out to Public Safety Capital Fund No. 412 to "make up" for 2002 estimated shortfall $15,000 10. Other Planning Department line items C. Total net expenditure change $3,180 ($4,496) Previous baseline deficit ($3,444) Current ro osed 2003 bud 2 General Fund Discussion The City Council may recall that, as part of the August 26, 2002 budget discussion, a revenue assumption concerning 2003 State Aids was highlighted. Only 50% ($69,955) of these state aids (LGA, PERA, Circuit Breaker) appear in the proposed budget as a reflection of the current state budget situa ti on. If such aids are totally "un-allotted" and not received in 2003, there is a $70,000 General Fund deficit problem. Howevcr, if all of the aid is received, it could "trigger on" some postponed capital projects such as the document imaging system. 3 September 5, 2002 Proposed 2003 Proposed Budget and Levy . Other Funds Discussion While a detail discussion on these other funds had not yet occurred, the presented materials reflect a baseline budget. In terms of changes from 2002, significant changes are as follows: I. Contemplating a $2,490,000 2003 PMP project (Ingerson/Karth Lake). 2. Although a "pass through" in nature, reflecting a $660,832 Interim Agreement fee budget in TCAM Planning Fund No. 229. 3. Reconstructing Lift Station #5 at a project cost of $200,000. 4. Rehabilitation of the water booster station at a project cost of $320.000. 5. The Community Services Fund No. 225 (Charitable Gambling) beginning 2003 with a zero dollar fund balance and the resulting pressures on funding public safety capital and the Program Fund deficit. Recommendations Staff requests the City Council to approve a series of three (3) resolutions related to the 2003 . budget process. I. No. 02-43, "A Resolution Clarifying Proposed Sums of Money to be Levied for Levy Year 2002 Payable in 2003"; and 2. No. 02-44, "A Resolution Adopting a Proposed 2003 Budget"; and 3. No. 02-45, "A Resolution Adopting Truth in Taxation Public Hearing Dates for Proposed 2003 Taxes Payable". . . . . CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 02-43 RESOLUTION CLARIFYING PROPOSED SUMS OF MONEY TO BE LEVIED FOR LEVY YEAR 2002, PAYABLE IN 2003 BE IT RESOLVED by the Arden Hills City Council that the following proposed sums of money be levied for levy year 2002, payable in 2003 upon taxable property in said City of Arden Hills for the following purposes: LEVY AMOUNT BEFORE HACA HACA CERTIFIED LEVY AMOUNT General Fund $2,265,712 $ - 0- $2,265,712 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 9th DAY OF SEPTEMBER, 2002. DENNIS PROBST, MAYOR ATTEST: JOSEPH P. LYNCH, CITY ADMINISTRATOR CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA . RESOLUTION NO. 02-44 RESOLUTION ADOPTING THE PROPOSED 2003 BUDGET WHEREAS, the City Administrator has prepared an annual budget and the City Council has met several times for the purpose of discussing the 2003 budget; and WHEREAS, Minnesota Statutes require that the City adopt a proposed budget in conjunction with the adoption of a proposed levy payable in 2003. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Arden Hills, Minnesota, that the following proposed 2003 budget be adopted and approved: General Fund: Taxes Licenses & Pennits Inter ovemmental Char es for Service Fines & Forfeits Miscellaneous Other Financin Sources Total General Fund Special Revenue Funds $2, I 06,81 0 340.350 302.605 58,320 28,600 76,875 320,750 $3,234.310 1,289,090 Debt Service Funds 285,093 Capital Project Funds 1,938.850 Subtotal Govt. Funds 6.747,343 $2,541,550 Enterprise Funds Total All Funds $9288,893 General Government Public Safet Street Maintenance Park Maintenance Other Financial Uses $694,940 1,259,258 749,600 297,295 232.165 . Total General Fund (Connn. Svc. Program, Park, Cable. TCAAP, Insurance Deductible, EDA) (Advance Refunding, G,O. Tax Increment Bonds) (Non-Assess. Road Imprv., Mun. Bldgs., PIR. Cap & Fire Equip Sinking) Subtotal Gov!. Funds $3,233,258 1.302,175 285,093 2,437.000 $7,257,526 $3,151,075 (Water, sewer, recycling, surface water mgmt. - excluding Capital Outlay) Total All Funds $10,408,601 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 9th DAY OF SEPTEMBER, 2002. ATTEST: JOSEPH P. LYNCH, CITY ADMINISTRATOR DENNIS PROBST, MAYOR . . CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 02-45 RESOLUTION ADOPTING TRUTH IN TAXATION PUBLIC HEARING DATES FOR PROPOSED 2003 TAXES PAYABLE BE IT RESOLVED by the Arden Hills City Council that the following Truth in Taxation Public Hearing dates, time and places for proposed property taxes payable in 2003 be certified to the Ramsey County Auditor and that notice of the Public Hearings be published in accordance with Minnesota Statute. Public Coutinuation Hearing Hearinl! (If Needed) Adoution Hearinl! Date: December 2, 2002 December 9, 2002 December 16,2002 Time: 6:30 P.M. 7:30P.M. 6:30 P.M. . Place: Council Chambers Council Chambers Council Chambers 1245 West Highway 96 1245 West Highway 96 1245 West Highway 96 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 9th DAY OF SEPTEMBER, 2002. DENNIS PROBST , MAYOR ATTEST: JOSEPH P. 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N I~ ,..: :-l:. un C-!l . 0 Eo -l! ... 0 ~ u ,f ~ :!I.;;: ~ I !~ ~ .~"' ~- f- .1:2:J :$ $.a 'C 1.!i~I~~'" ~ ~ ca C:s Cl OJ;O~O:<Jl . Property Records and Revenue Chris Samuel. Manager. Local Government ~NC.\..O~()n.t:: "{) I) 830 Government Center West 50 West Kellogg Boulevard St. Paul. MN 55102.1696 RECEIVED AUG 2 1 2002 Fax: 612-266.2022 TID#: 266,2002 August 15,2002 CITY OF ARDEN HILLS Mr. Terrance,Pos[ City of Arden Hills 4364 West Round Lake Road Arden Hills MN 55112-5794 RE: Truth in Taxation Process for Taxes Payable in 2003 The Truth in Taxation process for Taxes Payable in 2003 has begun. The county auditor is responsible for the coordination of the selection ofthe Truth'in Taxation dates, which include both the initial and continuation hearing dates. The dates for the County and Metropolitan Special Districts are set by statute as listed below. Next the school districts select their dat~s and then the cities. Following is a list of the dates not available for the city's initial and continuation (if at all possible) Truth in Taxation hearings: DISTRICT DAY INITIAL DATE DAY CONTINUATION DATE Ramsey County Tuesday December-10.2002 Tuesday December 17, 2002 Metro Joint Dist Wednesday December 4, 2002 Wednesday December 11, 2002 ISD #621 Tuesday December 3, 2002 Thursday December 19, 2002 ISD #623 Thursday December 12. 2002 Wednesday December 18,2002 .sota statute'g275.065 Sllbd6(i) requires that hearingsandcontir;lUationsmustbehelpbEln.veen November 29 and December 20, 2002. The hearings must be held after 5:00 p.m. if scheduled on a day other than Saturday. No hearings may be held ona Sunday. The continuation hearing. if needed, must be held at least five business days but no more than 14 business days after the initial. hearing. The Legislature has reserved two dates for cities to schedule hearings. They are: Monday, December 2, 2002 and Monday, December 9, 2002 Also, the enclosed forms need to be completed and returned by September 16,2002. They are as follows: 1) Certification of Proposed Property Tax Levy 2) Hearing Date Certification (as explained above) 3) Certification of Payable 2003 Debt Levy Schedule. This is only if our bond register shows a debt levy for your district. A final Debt Levy Schedule will need to be certified with the final levy in December as well. Beginning in payable year 2003, a county, a city over 500 population, school district, or metro special taxing district is exempt from holding hearings and posting public notice if the authority's total proposed property tax levy does not increase more than 0.7618% from payable year 2002. The hearing date certification form shows your maximum allowable levy for payable 2003 to qualify for this exemption. Please note that if your 'authority is exempt from the TNT public hearing requirement, you may still choose to hold a hearing. Thankyou fbryour;atte:nlion. If'YOuhaveany questions please feel Jreetocall.meat(651) 26p,,2045ii Sincerely;' .,'. ~ IUU- Vel z11 ~~Ogt, Accountant Tax Accounting Section Minnesota's First Home Rule County printed on tecycled ~r19itll1. minimum()f IOlpost..wnsumer con~~~~f ~ i. . ~ ~HlLLS MEMORANDUM DATE: September 5, 2002 AgendaItem 6.C TO: Mayor De1111is Probst Council Member Beverly Aplikowski Council Member David Grant Council Member Gregg Larson Council Member Lois Rem Joe Lynch. City Administrator Aaron Parrish, Community Services Director fi ( FROM: SUBJECT: TCMP Update The following highlights pertinent TCAAP reuse activities since the last Council meeting: eDSU has begun Phase I work. They will begin site analysis next week after attending a Health and Safety Briefing. They will be in attendance at the Council's September Work Session to discuss the establishment of the Advisory Panel. A notice will be placed in the next edition of Arden Hills Notes to solicit interest for Community Representatives on the Panel. The application deadline will be October l't. It is anticipated that interviews could be set up sometime early in October. · The regularly scheduled Development Team meeting was held on Tuesday August 20, 2002. The meeting focused on next steps and land transfer issues. An agenda is attached for your review. The next meeting will take place on Tuesday September 17, 2002. · Staff attempted to follow up with MNDOT to discuss their potential interest in TCAAP. The individual we need to speak with is out of the office for the next two weeks. · On Tuesday September 3rd, staff attended the TCAAP Restoration Advisory Board meeting. The primary focus of the meeting was a discussion between the Army and the RAB regarding the clean up of Site C. Site C is located within the proposed transfer area. See the attached comments from Paul Bloom submitted on behalf of the RAB for additional information. At the meeting, staff indicated that it would be more appropriate to defer a decision on the specific clean up measure until future land uses are identified. · The McKnight Foundation has initiated an "Embrace Open Space" campaign. TCMP was listed as one of the open spaces that require protection. See the attached letter and information printed from the embraceopenspace.org web site. On a website, there is a link to the Friends of Ramsey County Parks ewebsite as well. Unfortunately, some of the comments on site cast aspersions on the City and its position on the reuse of TCMP. This is attached for your reference as well. · As indicated in recent newspaper articles, Bill Harper is no longer Representative McCollum's Chief of Staff. Michaela Toohey of the St. Paul office will be the primary staff contact with regard to TCAAP.