HomeMy WebLinkAbout05-06-2019 Council Work Session MinutesCITY COUNCIL WORD SESSION
May 6, 2019
1 CITY OF LINO LAKES
2 MINUTES
3
4 DATE May 6, 2019
5 TIME STARTED 6:00 p.m.
6 TIME ENDED 10:30 p.m.
7 MEMBERS PRESENT : Council Member Rafferty, Maher,
8 Manthey, Stoesz and Mayor Reinert
9 MEMBERS ABSENT None
10
ll Staff members present: City Administrator Jeff Karlson; Public Safety Director John
12 Swenson; Public Services Director Rick DeGardner; Community Development Director
13 Michael Grochala; Finance Director Sarah Cotton; City Planner Katie Larsen; City
14 Engineer Diane Hankee; City Clerk Julie Bartell
15
16 Annual Board of Appeal and Equalization Hearing, Council Chambers
17 (See separate minutes)
18
19 1. Review Public Works Facility Concept Plans — Rick DeGardner
20 reviewed his written report outlining the matter of replacing the City's public works
21 facility and introduced Jeff Oertel of Oertel Architects to present concept plans based on
22 the council's previous directions. Using the video screen, Mr. Oertel reviewed the site
23 noting the space constraints at the current site. They've come up with a couple options.
24 He noted that the Mayor had asked what the City can get for $4 million and the options
25 are based on that premise. Mr. Oertel showed concepts and noted the following:
26 - there is an option to leave the community space as is or hold for future expansion;
27 - a possible location for adding a maintenance bay;
28 - moving the office area to the SE corner of building (someday you can meet your
29 total space needs);
30 - big box presented would be about $4 million and adding that maintenance bay
31 (current dollars) would be an additional $1 million;
32 - noted that construction costs are somewhat volatile;
33 - a look at what some other cities have built, some larger and some smaller; Little
34 Canada built a smaller facility;
35 - focus would be on space rather than aesthetics.
36
37 Mayor Reinert suggested that the council is looking for something utilitarian more than
38 paying a lot for design. The last proposal they saw was much more expensive and he felt
39 at that time that for the use requirements, the project could be done for less. He doesn't
40 necessarily see the return on a larger investment for the residents. He is cognizant of the
41 need to have a workable space. He offered that as background on this discussion.
42
43 Council Member Rafferty noted that the conceptual building seems far to the east of the
44 lot and he wonders if that doesn't make access harder. Mr. Oertel explained that the.
45 location is greatly impacted by wetlands and setbacks, unless the community land is used.
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CITY COUNCIL WORK SESSION
May 6, 2019
46 He pointed out an access route that helps somewhat.
47
48 The mayor asked about the two buildings that would be lost. Mr. DeGardner said those
49 are just cold storage and with a larger view of factors, it makes sense to trade at least one
50 of those off.
51
52 Council Member Manthey remarked that he sees the improvements would represent a
53 foundation that could be built on in the future.
54
55 The mayor asked if the conceptual building would house all the city's equipment and Mr.
56 DeGardner said current equipment, yes. Mayor Reinert remarked that there will be needs
57 in the future and wonders if adding additional space (cold) at this time makes sense. Mr.
58 Oertel pointed out that the Department of Labor and Industry, in his experience, has
59 generally had issues with unheated building (trench drains needed). The mayor said he'd
60 like to see what an additional 10,000 square feet of cold storage would cost. Mr.
6l DeGardner pointed out that staff sees the presented project adequate for five or ten years.
62
63 Mayor Reinert noted that Molin Concrete, Located in Lino Lakes; provides product similar
64 to what would be needed for the project and it may make sense for logistics and other
65 reasons to keep it local.
66
67 Public Services Director DeGardner asked for clarification on what the council would
68 like staff to price out. Mayor Reinert suggested that the project presented as well as
69 some options, including the maintenance bay, would be good.
70
71 Council Member Manthey received clarification that none of the existing buildings would
72 be renovated.
73
74 The council will review options when preliminary budget discussions begin in June.
75
76
77 2. Well No. 7 Update, Oertel Architects and WSB & Associates —
78 Community Development Director Grochala noted recent discussions about development
79 of a Well No. 7 in an existing faun house at 509 Birch Street. With the apparent need to
80 move the farm house to the well location, staff sought the advice of Oertel Architects.
81 Jeff Oertel reviewed photos of the farm house, noting that it is probably one of the oldest
82 homes in Anoka County. He reviewed a possible concept to use the building for a well
83 house. A floor plan was shown, noting space that is left over that would be used for
84 storage. The well would actually be located in an addition to the house. The estimated
85 construction cost to repurpose the house into the well was estimated at $1,010,900. Asa
86 comparison to building a new well house, it's apples to oranges and there is a price to pay
87 to preserve a historic building. That premium compared to constructing a basic
88 wellhouse is about $150,000.
89
90 Mayor Reinert explained how the concept of repurposing this historic property as a well
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91 house developed. He hoped that it could actually be economical to reuse the farm house
92 but sees now that it wouldn't save money but would actually cost more.
93
94 Greg Johnson, WSB & Associates, was asked about the possibility of having a well and
95 pumping it to another spot. He explained that there can be significant costs involved as
96 well as the need to have an adequate space between. Council Member Stoesz suggested
97 that it could save the cost of another test well.
98
99 Council Member Manthey suggested that the cost of constructing a new well house with
00 the materials of this older building (fully brick), would be expensive. Mr. Oertel said in
101 either case (reuse or building a new house) it would be a heavy duty building; he noted
102 that are some risks associated with repuiposing such an old building (that hasn't been
103 heated) such as cracking.
104
105 Council Member Manthey asked if there is any additional information that would give
106 him a better view on which option (new or repurpose) is better. Mr. Oertel explained that
107 the older building would be bigger and you have the benefit of saving the property,
108 however, all other benefits such as longevity, efficiency, etc. go to the new building.
109
110 Mayor Reinert asked if Anoka County has a deadline to move on the farm house (since
111 they own the building). Mr. Groehala said he believes the county expects to move in
112 conjunction with the Birch Street project.
113
114 The order of moving forward was reviewed by staff: a) proceeding with a test well if
115 comfortable with the cost of the building; b) regardless, the city could put the well there.
116
117 Council Member Stoesz asked about getting public input on saving the farm house.
1 18 Mayor Reinert remarked that there's generally a mixed bag of opinions on this type of
119 question.
120
121 Mayor Reinert said the City should learn more on the well.
122
123 3. Lyngbiomsten Tax Increment Financing (TIF) Update — Community
124 Development Director Grochala and Mikaela Huot, BakerTilly, reviewed a PowerPoint
125 presentation providing additional analysis on the project cost and requested need for
126 financial assistance. The presentation included information on:
127 - Updated financial components (application for tax increment financing (TIF),
128 breakout of sources and uses of funding; how tax increment revenues are derived;
129 financing proposed;
130 - Additional project details (elements are Senior Care Campus, Cottages, and
131 Commercial/Retail); illustration of development elements included in tax increment
132 district/plan; estimated values of taxes anticipated;
133 - Results of due diligence and financial review; a maximum of 3.6 million tax
134 increment recommended by staff,
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135 - Next steps if the council were to move forward with tax increment establishment;
136 agree on district framework; anticipated schedule);
137
138 The mayor asked why the cottagesltownhomes are not included in the proposed district.
139 Ms. Huot explained that there are income requirements. On the skilled care area that is
140 exempt from the district, the units are not considered housing units because they are short
141 term. The mayor suggested that including additional area (increment) in the plan would
142 act to shorten the term of the district by reaching the financial assistance goal quicker.
143
144 The mayor said he is disappointed with the county valuation but he knows there will be
145 more information after building occurs. Is there an option for the county to guarantee a
146 valuation? Mr. Grochala suggested that there could be an agreement up front that
147 establishes a minimum value.
148
149 The mayor pointed out that the plan, including financing, is based on estimates. He wants
150 to protect the City in case it comes in low. For instance the contingency needed may be
151 less. What is the future auditing procedure for determining those final numbers? Ms.
152 Huot said, in some cases, cities have hired a third party to keep track, with the hardest
153 part of that establishing the methodology that will be used. The mayor said it makes
154 sense to him to have someone involved along the way.
155
156 The major also asked about value appreciation. All the numbers are based on a static
157 valuation; what if the value goes up during the term. Ms. Huot agreed that the valuation
158 will impact the amount of increment.
159
160 Community Development Grochala said staff would also intend to watch the land costs.
161
162 Mayor Reinert asked about the five percent allocated annually to the City. Ms. Huot said
163 state law allows the City to capture a certain amount of funding to cover administrative
164 costs.
165
166 Mayor Reinert asked about $11.6 million in financing costs. It was explained that it
167 includes capitalized and construction interest, working capital, issuance fee, and payment
168 for skilled nursing beds.
169
170 Council Member Stoesz asked if expanding the TIF district ensures the development of
171 an area. Ms. Huot said she understands development of all elements will begin
172 simultaneously. Council Member Stoesz noted that some elements within the current
173 boundaries won't be included in the TIF plan and he wonders if they should be removed
174 from the district. Ms. Huot explained that the entirety building must be included in the
175 TIF district but they are allocating increment based on only the eligible areas within the
176 district.
177
178 Staff should report back on including the cottages within the district. Mr. Grochala said
179 staff is comfortable that can be done.
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180
181 Mr. Grochala said if the council is comfortable with the maximum increment of $3.6
182 million, staff would move forward on refining the numbers and working in the council's
183 direction and put together a terms sheet for tax increment for council consideration. The
184 date of the public hearing would be in July.
185
186 4. Woods of Baldwin Lake Park Discussion — Public Services Director DeGardner
187 reviewed his written report on the matter of improvements requested for the Woods of
188 Baldwin Park. He explained where funding for improvements at that site is included in
189 the City's plans going forward and how improvements would be developed. He showed
190 several pictures of the park, including the area around the playground equipment. It is a
191 small park.
192
193 Mayor Reinert noted that this matter has come up in conjunction with park dedication
194 fees coming in with development in. the area. A trail is planned for some of those funds.
195 He suggests that the Park Board review the situation so that staff can develop a
196 recommendation. With the goal of receiving more information, the conversation can
197 continue.
198
199 Mayor Reinert asked about the condition of the equipment and Mr. DeGardner said it is
200 older as noted by the playground equipment review that was done within the last few
201 years. Funding sources would have to be sought and if there are development related
202 funds coming in, an improvement to the park would make sense.
203
204 Council Member Stoesz noted that the park has a mosquito issue and Mr. DeGardner
205 suggested that the Mosquito Control District can be asked for assistance.
206
207 A resident asked if there is anything they can do to push for improvements. Mayor
208 Reinert suggested that residents can be involved in the Park Board review, take part in a
209 resident meeting, etc. Mr. DeGardner suggested that the residents should receive a
210 communication when master planning is appropriate.
211
212 5. 12th Avenue Trail — Mayor Reinert explained that an estimate for the cost of a
213 trail project has been identified. The budget for next year will be discussed beginning
214 next month. He's heard unanimous consent from the council on putting this project in
215 the budget for next year. There is an expectation that it will be included. The mayor
216 said he personally will be pushing for the project. If funding is approved, staff
217 anticipates that the project will begin as early as possible next year.
218
219 6. Comprehensive Plan — Community Development Director Grochala and Kendra
22o Lindahl, Landform, reviewed a PowerPoint presentation on the status of the
221 Comprehensive Plan Update, including information on:
222 - Request for approval of 2040 Plan (draft) at the next council meeting (for
223 distribution);
224 . Background that brings the Plan forward;
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225 - Hearing held by Planning & Zoning Board in April; Outcome recommendation;
226 - Review of Plan contents, including resident requests.
227
228 Council Member Stoesz asked if the City could develop its own chapter in the Plan, not
229 to be submitted to the Met Council for approval, but language that would guide the City
230 into the future in the areas of rigbt-of--way and telecommunications options. Community
231 Development Director Grochala suggested that the City wouldn't have to have another
232 chapter but rather could incorporate a policy statement in the implementation section, as
233 guidance on a work plan in that area. Council Member Stoesz noted that residents care
234 about these matter should they should be recognized as the city plans. Mayor Reinert
235 remarked that there may be some boiler plate language out there.
236
237 Ron Mikolai, Blue Heron Enterprises, Inc., addressed the council regarding a parcel of
238 land on Lake Drive that they own. It is a 491 acre parcel on Lake Drive. The comp plan
239 update would lower density allowed on the parcel and he objects. Lowering the density
240 would deter development. He noted on a map the area of the property where the City
241 intends to put a new road that will take a part of the property. His primary request to
242 change the density requirement and perhaps look at a commercial use. Community
243 Development Director Grochala noted commercially zoned property across the street that
244 has gone undeveloped.
245
246 The mayor asked if the property owner is that proposing an apartment building be built at
247 the site. Mr. Nikoli said a proposal for 30 units did not pan out. He needs more
248 flexibility to bring something in. He'd like to see it available for commercial as well.
249 Mr. Grochala remarked that the concern is to not add commercial into such a residential
250 area.
251
252 City Planner Larsen explained that a property owner always has the opportunity to request
253 a Comp Plan amendment if a development requiring it becomes feasible.
254
255 Mr. Jeff Joyer, Blue Heron Enterprises, Inc., said this is the fourth time they've gone
256 through a comp plan update that changes this property. It doesn't make it easier to sell.
257
258 Council Member Manthey remarked that since the property does abut Lake Drive, he is
259 more apt to consider a higher density.
260
261 Mayor Reinert suggested leaving the designation at 4-5 units per acre knowing that the
262 council will consider a plan amendment if an appropriate development comes forward.
263 He is comfortable with the staff recommendation.
264
265 7. Birch Street Resurfacing Project —City Engineer Hankee reviewed her written
266 report outlining options that have been considered. by Anoka County for the Birch Street
267 Resurfacing Project (Deerwood Lane to Centerville Road). She reviewed the plans are
268 they are currently proposed:
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269 - Intersection of Black Duck and Birch Street — Since adding turn lanes or a
270 roundabout would delay the entire project, staff is recommending that the evaluation
271 of the intersection with Anoka County continue beyond the current resurfacing project
272 - Minor changes from preliminary plans were reviewed;
273 - Funding (state) and schedule;
274 - Planning process for improvements to Birch Street, Deerwood Lane to Ware Road
275
276 Staff is requesting authorization to sign off for the City.
277
278 The mayor remarked that the Black Duck area is in very difficult condition.
279
280 8. Super Rink. Signage — Public Services Director DeGardner outlined staff s
281 request for direction in the matter of recognition promised at the Super Rink for the City's
282 contributions to the project. Council Member Stoesz noticed upon a recent visit that no
283 such recognition existed. The operators of the Super Rink are in the process of creating
284 and placing a recognition plaque. That would be interior. The question of exterior is
285 more difficult since they aren't adding signs outside at this point. The City would have
286 to pursue that matter further.
287
288 Council Member Stoesz suggested that the original agreement should be examined and if
289 the obligation exists, it should be honored.
290
291 Council Member Rafferty noted that one existing sign is for Patriot Bank that went out of
292 business. The sponsoring cities could replace that language with the city sponsors on
293 that existing sign.
244
295 Mayor Reinert said he would reach out to responsible individuals at the Super Rink about
296 making that change.
297
298 9. Advisory Board Interview Schedule —The council will interview the two
299 remaining candidates on May 13, 2019 at 6:00 p.m., prior to the next council meeting.
300
301 10. Q1 2019 Public Safety Update — Public Safety Director Swenson reviewed the
302 written report, including information on:
303 - Medical calls for service;
304 - Fire Division — calls for service,
305 - Mutual Aid;
306 - Offenses and Arrests;
307 - Notable event;
308 - 2019 Areas of Focus (including creation of a commercial vehicle insnection element)_
309
310 Council Member Stoesz asked if the department has any programs that target assisting the
all elderly and Director Swenson explained a grant funded program that follows up with the
312 elderly when that is deemed to be needed.
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314 I1. Council Updates on Boards/Commissions —
315 Council Member Rafferty provided a short update on the Vadnais Lakes Area Water
316 Management Organization (VLAWMO).
317
318 Council Member Stoesz remarked that North Metro Television is discussing the franchise
319 agreement.
320
321 12. Monthly Progress Report —Administrator Karlson updated the council on the
322 status of the White Bear Lake lawsuit and provide an employment update. More
323 information will be provided on the Environmental Coordinator position.
324
325 13. Review Regular Agenda —The agenda was reviewed and there were no changes.
326
327 There was discussion on the matter of funding for school playground equipment (Item
328 3A). Administrator Karlson asked the council review the resolution which revises
329 previous action.
330
331 Item 5A, Funding for Rice Lake Elementary School Playground Project — Council
332 Member Rafferty remarked that legal review is important. Mr. DeGardner said that will
333 be done.
334
335 The meeting was adjourned at 10:30 p.m.
336
337 These minutes were considered, corrected and approved at the regular Council meeting held on
338 May 27, 2019.
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Bartell, City �lerk
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