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HomeMy WebLinkAbout07-05-2016 Council Work Session MinutesCITY COUNCIL WORK SESSION July 592016 1 CITY OF LINO LAKES 2 MINUTES 3 4 DATE July 5, 2016 5 TIME STARTED 6:00 p.m. 6 TIME ENDED 9*35 p.m. 7 MEMBERS PRESENT Councilmember Rafferty, Kusterman, 8 Maher, Manthey and Mayor Reinert 9 MEMBERS ABSENT None 10 11 12 Staff members present: City Administrator Jeff Karlson; Community Development 13 Director Michael Grochala; City Planner Katie Larsen; Public Services Director Rick 14 DeGardner; Public Safety Director John Swenson; City Clerk Julie Bartell 15 16 1. Woods Edge Townhome Development -Kendra Lindahl of Landform, reviewed 17 a PowerPoint presentation (on file). She reviewed the amendments that will be requested 18 by ordinance to allow changes from original standards approved for the area. In regard 19 to siding, there have been significant improvements in vinyl siding (since 2004) and some 20 drawbacks identified in the Hardieboard type siding that is called for in the current 21 standards. Mr. Grochala noted that the color palette has improved for vinyl and they are 22 normally now more seamless. 23 24 Ron Mullenbach and Mike Suel from D.R. Horton (the developer) addressed the council. 25 They discussed current trends and building laws over the past few years. In order to 26 market the proposed properties, they want to show some sustainability and surety as far as 27 future maintenance. 28 29 Mayor Reinert recalled that the original standards were put in place based on the desire 30 for a quality product. He expects that council members will be looking at the decision 31 and moving forward based on information they receive today. 32 33 Council Member Rafferty suggested that the color palette presented is somewhat dumbed 34 down. The D.R. Horton representatives suggested that the pictures presented are 35 challenged by computer printing — the colors aren't completely accurate. Council 36 Rafferty discussed the look of the homes as depicted in the drawings. Director Grochala 37 noted that there is an attempt to differentiate the units (within each four unit structure). 38 39 Mayor Reinert asked about dimensions —the units will be 1643 square feet. Mr. 4o Grochala explained, using a map, that there will be different street widths, based on 41 location, access needs, etc. Mayor Reinert asked about built in extra parking and Mr. 42 Grochala noted that the on -street parking is mainly planned as the extra parking. The 43 developer representative explained that guests are anticipated at the front of the unit and 44 that is where the extra parking is located. The garage doesn't face the street but the 45 driveway provides two additional spaces (added to the two in the garage). fl i i CITY COUNCIL WORK SESSION July 592016 46 47 When asked about price, it was suggested mid to upper 200,000s. They will be a 48 standard three bedroom layout and a choice with two bedrooms instead but including two 49 master suites. 50 51 The PowerPoint also reviewed an outlot decision and park dedication funds generated. 52 Mr. Grochala noted plans to develop a unique playground near the YMCA property (more 53 in tune with the surrounding environment). The developers noted that they've built a 54 similar one in a Cottage Grove development. 55 56 Council Member Rafferty suggested this could be a great family development and, in 57 light of that, the park will be an important element and to have it in early. Mr. Grochala 58 suggested design of a park facility will begin as soon as possible (upon council approval). 59 60 Council Member Rafferty noted the rear deck included for the units and suggested that 61 the proposed cedar construction would not be lower maintenance; they may want to 62 reconsider that. 63 64 Community Development Director discussed the utility plans and what was originally 65 planned. 66 67 Mayor Reinert expressed some concern about the row look of the homes. 68 69 The council will receive more detailed plans as the planning process move forward. 70 71 Council Member Manthey asked if there is a minimum of the number of exterior looks 72 (siding) that staff is looking at. Community Development Director Grochala explained 73 the goals and also the review of the Planning and Zoning board. 74 75 The mayor discussed the building market with the developer; they are seeing more 76 interest in townhomes probably just due to economics. The developer representatives 77 noted the quality of the company and the hands-on approach of the original owner (now 78 chairman of the board). 79 80 Council Member Manthey asked about looking at a similar development and one within 81 the city of Ramsey was recommended (not to be concerned about the brighter colors 82 there). 83 84 Mayor Reinert said he likes the project overall but has concerns about narrow streets and 85 the row house look of the homes. 86 87 2. Clearwater Creek Business Park TIF —Community Development Director 88 Michael Grochala and financial consultant (Springsted, Inc.) Mikaela Huot reported. 89 2 CITY COUNCIL WORK SESSION July 5, 2016 APPROVED 90 Ms. Huot reviewed a PowerPoint presentation explaining the specifics of tax increment 91 financing — how it is created, why it is created, the process to establish, etc. The use of 92 tax increment is limited to eligible costs, including some public improvements. 93 Regarding the methods for financing costs for a tax increment project, the use of G.O. 94 bond debt is the riskiest for the city. There are different types of tax increment districts, 95 with the city looking at an economic development type in this case. She reviewed the 96 findings necessary by the city to approve a district under statute. She reviewed some of 97 the decisions that the city would have to make to proceed, including but not limited to, is 98 the project feasible, what term/amount of assistance should be considered? She 99 reviewed the specifics of the United Properties TIF proposal, including eligible costs, and 100 also a schedule for council consideration. 101 102 Brandon Champeau and Brad Davidson of United Properties were introduced. 103 104 Director Grochala explained how twenty percent of the increment could be available to 105 the city and how that could be used, including approximately five percent in 106 administrative charges. On the project he noted that United Properties is a favorable 107 business to have in the city and there are benefits such as public improvements that the 108 development would bring to the city. On employment, there would be some growth in 109 the area as well as the addition of many seasonal positions. The growth of sixty jobs 110 includes two different job and wage goals — one attached to creation of the district and 111 one attached to the city's job and wage goals (set forth in the city's findings). 112 113 The mayor asked about the impact on the neighborhood to the south and the developer 114 representative said the operations would be very similar to what Distribution are doing at 115 the current location in Lino Lakes. It is not a twenty-four hour operation and typically it 116 doesn't involve Saturdays. Mayor Reinert said it looks as if every truck using the facility 117 may be heard by the neighborhood; he confirmed that there are basically two shifts, 118 morning and afternoon to evening. The reps noted that the landscape plan includes noise 119 blocking and sight lines relative to the trucks. It was pointed out that there is a ten acre 120 property that provides some buffering. 121 122 The council discussed the "but -for" nature of this proposal. Ms. Huot reviewed some 123 challenges facing the use of tax increment — the green acres label that carries certain wage 124 requirements, the infrastructure needs of the site, within the district there are wetland and 125 soil costs, straddling two cities. Those are the things that are reviewed. 126 127 The mayor asked if the development would occur without the TIF and a developer 128 representative said that comes back to tenants and he feels that they wouldn't be there 129 without it. The mayor asked about the approximately $240,000 that could be available to 130 the city and Ms. Huot explained again that there are restrictions on use (noting that the 131 legislature may soon be adding more restrictions). She noted also that there is a 132 deadline/timeline restriction for use of those funds. Community Development Director 133 Grochala noted use of that type of funding from another development district at a nearby 134 interchange improvement project. Potentially something like improvements to Cedar 3 CITY COUNCIL WORK SESSION July 5, 2016 APPROVED 135 Street could be involved. Council Member Kusterman asked if there has ever been a 136 return of funds and it was confirmed that there has been; he recommends caution in 137 utilizing the funds because having them go back into the tax coffers isn't necessarily a 138 bad thing. 139 140 Staff confirmed that there is nothing on the agenda for July 11 but three actions that 141 would come forward on July 25 — establishment of TIF Plan, a development district and a 142 meeting of the Economic Development Authority and an action on terms. There is also a 143 rezoning and preliminary development plan. 144 145 The mayor suggested that the council should consider if they like the project, if they want 146 to do TIF, if so, the term. He does feel that Distribution Alternatives has been a good 147 business in town. 148 149 The developer representatives discussed a tentative schedule for the project, finishing up 150 in spring. Road improvements would be included in that schedule. 151 152 Council Member Manthey asked if noise mitigation could be included as far as use of 153 twenty percent funds. Ms. Huot suggested that could be possibile as long as it isn't 154 aesthetic and is within the district. Mayor Reinert suggested a requirement be included 155 in the development agreement. 156 157 Council Member Maher asked if there is a way to include security for employees. The 158 developer representatives suggested that Development Alternatives has a good 159 background and are good to their employees; that being said, the market dictates to a 160 certain level. 161 162 Council Member Rafferty said he can see the benefit of keeping a good company and will 163 hear more. 164 165 3. Discuss Condensing Units Repair/Replacement Options — Public Services 166 Director DeGardner noted that this question was brought to the council last week — repair 167 or replace two a/c units for the civic complex. Information on costs, equipment and 168 timing is included in the staff report. He noted that the Finance Officer reported last 169 week that there is funding available within the city budget He is recommending 17o replacement. 171 172 Mayor Reinert suggested that the city get three bids for repair and three bids for 173 replacement. That information could aid the council in a decision. 174 175 Director DeGardner noted a requirement on refrigerant (in the Montreal Protocol Act) 176 that will make the current units unusable by 2020. 177 178 Mayor Reinert asked if the city should get a second opinion, other than the information 179 received from NAC who is interested in selling the city a new unit. Mr. DeGardner 0 CITY COUNCIL WORK SESSION July 5, 2016 APPROVED l8o suggested that NAC is reputable and he does trust their judgement. Additionally Utility 181 Supervisor Tim Hillesheim has indicated that the units are functioning at 50 percent and 182 that is a problem. 183 184 Council Member Manthey recalled that NAC didn't necessarily recommend replacement 185 — they gave information on the 19 year -old units and the outlook on their use. 186 187 Council Member Manthey noted that this decision is about two of the four civic complex 188 units. He wonders about the other two. Mr. DeGardner said they may need replacement 189 soon but, at this time, staff is just looking at the two units based partly on funding 190 available. 191 192 Council Member Rafferty noted that staff and the NAC representative suggested that the 193 units are at the end of their 20-year life but city hall didn't open until 1999 and that's not 194 twenty years. Is there a 20-year warranty? Mr. DeGardner said there is no warranty and 195 that 20 years is the average life of the units. 196 197 The council concurred that Mr. DeGardner will bring the matter forward for council 198 consideration. 199 200 4. Discussion about Agrihoods - Council Member Maher noted that she provided 201 the two articles included in the packet. She noted a statement about American's interest 202 in feeling closer to the land and what they eat. She recalled speaking with an 203 Environmental Board representative and them saying that this was a discussion item for 204 the group ten years ago. She understands the complexity of it but, if it can be achieved, it 205 would really put Lino Lakes on the map. The city has a glorious farming and rural history 206 that she doesn't want to be lost. 207 208 Mayor Reinert remarked that he likes the unique quality of the concept and he can see 209 how it would fit in the city. It would have to be an ambitious developer. Community 210 Development Director Grochala noted that the developments are clearly planned around 211 an agricultural area — current ordinances would allow for it so it ultimately comes down 212 to economics. You'd want to look at an area that supports agriculture well. 213 214 Council Member Maher suggested that she understands the challenges but feels the 215 concept would fit well in this community. She will be happy to contact developers and 216 speak about interest. 217 218 Council Member Maher added that she's spoken to many residents who are interested in 219 keeping chickens (not currently allowed). 220 221 5. Proposal to Reinstate Office Specialist Position to Full -Time Hours - 222 Administrator Karlson explained that Ms. Fogarty was recently cut to half-time but it has 223 been difficult since then for support staff to keep up. Additionally, there is now a 224 maternity leave coming up. He proposes that this position be reinstated to full time, 5 CITY COUNCIL WORK SESSION July 5, 2016 APPROVED 225 effective August 1, for at least twelve weeks. Mr. Karlson explained the budget 226 implications. He will also probably be recommending that the position be brought back 227 to full time in next year's budget. 228 229 The mayor suggested the twelve -week situation is obviously needed and the longer term 23o addition should be discussed in the context of the whole 2017 budget. 231 232 6. Council Updates on Boards/Commissions — There were no updates. 233 234 7. Monthly Progress Report - Administrator Karlson reviewed the written report. 235 He noted in particular the completion of a report outlining the history of labor 236 negotiations in the city. 237 238 Mayor Reinert noted the Yellow Ribbon Community effort. It's been determined that it 239 will cost a certain amount of money to set up the group as a non-profit. He is requesting 240 the council to authorize $500 to keep that moving. Administrator Karlson remarked that 241 it would require an official action authorizing the funding. The council concurred with 242 that funding and it will be added to the next council agenda. 243 244 8. Review Regular Agenda of July 11, 2016. 245 246 Consent Agenda — Administrator Karlson noted the inclusion of North Metro 247 Telecommunications budget. 248 249 Item 1 E - Regarding the amendment to the sign plan, City Planner Larsen explained the 250 request that has come forward from a business owner on Apollo Drive. Council Member 251 Rafferty asked if there wasn't a similar request from a liquor store in the area. Mr. 252 Grochala explained that the request noted never included an official sign plan 253 amendment. Ms. Larsen explained that the signs proposed are allowed under the sign 254 ordinance. 255 256 Item 613, City Planner Larsen reviewed the development plan, including development of a 257 park. This phase includes 31 lots. She reviewed the four actions requested of the 258 council. 259 260 The meeting was adjourned at 9:35 p.m. 261 262 263 264 265 266 26 268 269 These minutes were considered, corrected and approved at the regular Council meeting held on July 25, 2016. Bartell, Ci