HomeMy WebLinkAbout09-06-2022 Council Work Session Minutes CITY COUNCIL WORK SESSION
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
3
4 DATE September 6,2022
5 TIME STARTED 6:00 p.m.
6 TIME ENDED 9:45 p.m.
7 MEMBERS PRESENT Councilmember Stoesz,Lyden,Ruhland,
8 Cavegn and Mayor Rafferty
9 MEMBERS ABSENT none
10 Staff members present: City Administrator Sarah Cotton; Finance Director Hannah
11 Lynch; Community Development Director Michael Grochala; City Planner Katie Larsen;
12 Director of Public Safety John Swenson; Public Services Director Rick DeGardner; City
13 Clerk Julie Bartell
14 1. Ryan Companies, Clearwater Creek Business Park TIF- Community
15 Development Director Grochala introduced Mikaelalluot of Baker Tilly the City's
16 finance advisors. Mr. Grochala noted the proposed project by Ryan Companies,pointing
17 to a displayed map and indicating two parcels, north and south. The focus this evening
18 will be on the north parcel and development of the office park/distribution facility.
19
20 Ms. Huot reviewed a presentation(on file)that included information on the following:
21
22 - Fundamentals of Tax Increment Financing- basic model; looking at economic
23 development district which has a maximum of nine years;
24 - Typical Eligible Costs - specifics of public improvement costs noted;
25 - Common Methods for Financing Costs -reimbursement(in this case) or upfront;
26 - Considerations of Creating a Tax Increment District—a portion of the expenditures
27 being requested are outside the district but within a larger district so can be included;
28 - Tax Increment Financing Plan—statutory requirements;
29 - Public Hearing and Certification -requirement;
30 -Review of Current Tax Increment Request - $5.9 million requested to assist with
31 financing extraordinary costs;pay-as-you-go financing;
32 - Summary of Projected Tax Increment Revenues;
33 - Proposed Industrial Development;
34 - Recommended TIF amount of$2.9 million.
35
36 Councilmember Stoesz asked if the contents of the building are TIF eligible and Ms.
37 Huot noted that building construction costs are not eligible (nothing vertical is eligible).
38
39 Councilmember Lyden noted that Amazon is coming to Centerville and he wonders if
40 that involves TIF; staff indicated not. Mr. Lyden asked why this project should qualify.
41 Community Development Director Grochala explained that this project is denser with a
42 site that maximizes building construction. Mr. Lyden mentioned road work that is typical
43 and Mr. Grochala noted that the roadways planned are upsized from average.
44
1
CITY COUNCIL WORK SESSION
APPROVED
45 Mayor Rafferty recalled previous discussion of utilities requirements. Mr. Grochala
46 noted a trunk sewer and water line requiring relocation.
47
48 Councilmember Ruhland asked if the allocations within a tax increment plan can change.
49 Ms. Huot noted that there will ultimately have to be proof of use of funds by the
50 developer but within the scope of all costs there is some flexibility.
51
52 There was a discussion of what would be covered under administration costs—staff,
53 finance counsel, engineer, etc.
54
55 Councilmember Stoesz asked what provisions protect the City and Mr. Grochala noted
56 the pay-as-you-go nature and the requirements for cash flow.
57
58 Mayor Rafferty asked about timing and the developer present suggested a 2023 start
59 adding that the site makes construction complex. Community Development Director
60 Grochala explained,regarding the south parcel,that it wasn't included in consideration of
61 timing.
62
63 The council reviewed the schedule included in the staff report. Once staff is comfortable
64 with the schedule,they will set a public hearing before the council,probably in October.
65
66 The council discussed with staff the number of tax increment districts already in place in
67 the City and any restrictions such as in the City Charter. A comparison with others cities
68 and their tax increment districts was discussed. Ms. Huot noted the statutory
69 requirements that must be met.
70
71 The council discussed with Ryan Company representatives whether there are current
72 tenants in place and the council heard about the company's commitment to the project
73 and to building in this community.
74
75 The council concurred with bringing forward the matter.
76 2. Lyngblomsten Architectural Design Change—City Planner Larsen introduced
77 the Lyngblomsten team. They are requesting changes to the exterior plans for the
78 project.
79
80 Brian Prunty, Wold Architects, reviewed a presentation that included information on
81 changes being requested, for both the cottage homes and the main building as follows:
82
83 - Site Plan;
84 - Cottage Homes (view); color palate not changing;
85 - Proposing a change in some material from hard board to vinyl; consistent with other
86 projects in Lino Lakes;
87 - Local precedents (same siding used in Fridley projects);
88 - Would like to decrease the amount of stone on the building from 36%to 33% (shown
2
CITY COUNCIL WORK SESSION
APPROVED
89 on slides).
90
91 Councilmember Lyden asked if metal standing seam roofing has been considered for the
92 cottages. He doesn't have a problem with the proposed changes. He thinks steel siding
93 is ultimately better than vinyl and the developer representative explained that the choice
94 of materials was made long ago.
95
96 Councilmember Ruhland said he has no issue with the changes.
97
98 Councilmember Cavegn asked about the quality difference in the fiber to vinyl and Mr.
99 Prunty noted that fiber is utilized in other areas of the project and he sees them as merely
10o different applications and looks.
101
102 City Planner Larsen noted that staff proposes that this discussion will serve as
103 authorization for the changes; staff doesn't propose any formal council action. The
104 council concurred with the changes and process.
105 3. Anderson Companies—Lake& Main Concept Plan—Community
106 Development Director Grochala said the City has been approached about development of
107 the NE quadrant of Lake Drive and Main Street. The council then discussed some of the
108 preliminary ideas (300+residential units). Based on council comments, the development
109 team has worked on the concept, added some new team members, and are working on
110 redesigning the site. There was an overhead of the site shown. Included in the packet
111 is a site plan as well as a project narrative. The City's EDAC group reviewed the
112 concept plan and is supportive with inclusion of key goals; Planning and Zoning has been
113 supportive of planning efforts.
114
115 Tim Marco, Director of Development at Anderson Companies. He did not work on the
116 previous plan but he has joined the Anderson team and can speak to work that's ongoing
117 and the desire to work together with the City. They'd like to get some feedback on
118 appropriate next steps. Mr. Marco noted discussion on The Tavern parcel and how
119 discussion will be ongoing and perhaps that property will be considered for future
120 inclusion. The question noted by Mr. Marco is whether this project includes enough
121 commercial to satisfy the City Council, adding that he didn't hear a"no" on that question
122 from the advisory groups. He noted the commercial access point planned and the
123 importance he sees in maintaining that point. There was discussion about the western
124 border, some City owned property there and the possibility of having some type of drive
125 area. Elements included in the proposal: single-level villas and a senior campus including
126 assisted living and independent living, rental with no for sale properties.
127
128 Councilmember Stoesz noted the green space on the south; will that be lost if commercial
129 comes in? Mr. Marco explained that the space is intended for commercial. Staff also
130 noted trail and sidewalk plans
131
132 Councilmember Cavegn said he's warming to the plans. He likes the density much
3
CITY COUNCIL WORK SESSION
APPROVED
133 better than the previous proposal, he is okay with dedicating retail space, and although he
134 doesn't favor the three stories he understands the realities of development.
135 Councilmember Ruhland concurred.
136
137 Mayor Rafferty said he sees a dramatic improvement from what was brought forward
138 previously. Points important to him are being hit.
139
140 Mr. Marco noted that tax increment financing is a subject that he'd also appreciate
141 discussing. Mayor Rafferty responded that he doesn't have enough information to
142 discuss that at this time; he understands he will be hearing more about elements such as
143 needed cleanup. Director Grochala noted that the residential property acquisition costs
144 compared with the value of the same land for this development may be a pressure point.
145 Mr. Marco said they could put together a list of eligible costs for counsel and council
146 consideration. The estimated development cost of this project is estimated at over$30
147 million.
148
149 The developer asked for some clarification on process moving forward. The council
150 suggested that moving in a standard fashion, including the advisory board process, is
151 envisioned.
152 4. Villas on Vicky—City Planner Larsen reviewed a PowerPoint presentation that
153 included information on the following:
154 - Previous council discussion on a concept plan(details included in staff report,
155 including PUD flexibility);
156 - PUD Concept Plan Map—reviewed;
157 - Staff Comments—not negative on villa product; PUD needs to be give/take and what's
158 the public value; open space discussion.
159
160 Ms. Larsen noted that the developer is looking for more direction and commentary from
161 the council. She recalled that the council was going to look at other products done by this
162 developer.
163
164 The developer showed a new paper plan proposing 13 units with one exit onto the new
165 Vicky. Lots are 65 feet wide at the setbacks; it includes a 28 foot wide private road.
166
167 Planner Larsen noted that staff has not seen or reviewed the new proposal but from what
168 she understands, it would not meet the City's density requirements (requiring 4—6 per
169 acres).
170
171 Mayor Rafferty asked the developer if there could be more information on meeting
172 density requirements. The developer then showed a paper plan with 20 units.
173
174 Councilmember Lyden spoke in favor of the lesser units;he doesn't want to get hung up
175 on the number but would like to focus on creating a nice neighborhood.
176
4
CITY COUNCIL WORK SESSION
APPROVED
177 Planner Larsen noted that staff is looking for some council consideration on what the City
178 would get for allowing a PUD project. The advisory boards did indicate some concern
179 about a lack of open space.
180
181 Comments:
182 - Councilmember Lyden likes the 13;
183 - Councilmember Ruhland would like as few variances from requirements as possible
184 while maintaining quality; probably can't have it all so some variance to be expected;
185 - Mayor Rafferty said he is looking at both the 13 and 20 unit proposal; he'd prefer to not
186 vary from City requirements;
187 - Public Safety Director Swenson said he cannot comment on the project without going
188 through an official process (a process which he feels yields the best result);
189 - Councilmember Stoesz said 13-20 is a good number to hit.
190
191 Mayor Rafferty indicated that this is still very much in a concept stage and the council has
192 offered comments.
193 5. Fire Apparatus—Public Safety Director Swenson and Deputy Director L'Allier
194 were present. Director Swenson noted previous council direction to get pricing on
195 replacement of two tenders. He introduced Wayde Ki rvi da with Custom Fire who was
196 present to answer questions. Director Swenson also noted the assistance of the Finance
197 Director in preparing numbers for the report. Mr. Kirvida spoke about his experience in
198 the business and also about the new normal in the area of cost(price increases). There is
199 a massive amount of engineering that goes into these trucks and they do look for
200 engineering savings. Mr. Kirvida spoke about the difference of buying two trucks or
201 one.
202
203 In response to questions, Mr. Kirvida spoke to lead time and time of delivery(12— 14
204 months normally). As far as bringing the cost down, he noted that there has already been
205 maneuvering so there isn't much room at this point. Mayor Rafferty noted
206 commitments on both sides of a transaction and he still wonders about timing; can he get
207 a guarantee of some type for the City's commitment of a contract. Mr. Kirvida said they
208 keep high expectations on their suppliers and they have not experienced failures for their
209 customers. Mr. Kirvida explained how the build process worked with the chassis
210 coming first and that being something of a guarantee that the product is on the way.
211
212 Councilmember Stoesz asked about buying one new unit and one chassis with the idea
213 that the second could possibility be improved. Deputy Chief L'Allier noted that
214 personnel are trained on the equipment so changes would make that more difficult; he
215 also noted the time already spent preparing the specifications. Also a discount is
216 currently being offered for purchasing two units and prices will be going up later this
217 month.
218
219 The council discussed financing. Finance Director Lynch said staff is recommending an
220 interfund loan which would be a part of a council action if this comes forward. When
5
CITY COUNCIL WORK SESSION
APPROVED
221 Ms. Lynch said the interfund loan would carry a one percent interest, Mayor Rafferty
222 asked about the implications of no interest. Administrator Cotton remarked that interest
223 has typically been charged because the funds loaned would otherwise be in reserve and
224 gaining interest. Ms. Lynch explained the financing process, including that the loan
225 would be paid by a capital equipment levy that would begin in 2024. Councilmember
226 Stoesz asked how many years one would expect to utilize this equipment and Director
227 L'Allier estimated 25 to 30 years.
228
229 Councilmember Cavegn said he'd prefer a no interest loan. A majority of the council did
230 not support a no interest loan. Staff explained that the City is making itself whole by
231 charging the interest.
232
233 The council will consider authorizing the purchase and financing at the next council
234 meeting.
235 6. Kwik Trip—City Planner Larsen reviewed a PowerPoint presentation that
236 included information on the following:
237 - The project would come forward to the council next Monday:
238 - Site Conditions—Lake and Hodgson -zoning is appropriate and the site is guided for
239 business for the long term; 13 acres site; adjacent residential (1,000 feet away for Lino
240 residents) (Circle Pines residential also);
241 - Site Plan—attempting to separate building site from residential; full site was reviewed;
242 -Planning and Zoning-recommended limited hours for car wash;
243 -Trail - connection plans;
244 -Building setbacks -well within requirements;
245 -Architectural Review;
246 - Sound Control Plan;
247 -Lighting and Parking Plan;
248 - Stormwater Management;
249 -Tree Preservation Plan—was much discussed by the Environmental Board; landscaping
250 plans reviewed (trying to accommodate Circle Pines' residents as much as possible);
251 -Traffic Impact Analysis—Anoka County reviewed plans; existing signal situation is
252 adequate; future roundabout may be a good consideration;
253 - Wetlands; Shoreland Management;
254 -Archeological - signoff required;
255 - City of Circle Pine Comments—with staff response;
256 - Staff and Board Comments.
257
258 Councilmember Lyden suggested a discussion of the merit to the community of adding a
259 gas station. Mayor Rafferty noted that there are certain rights for people to sell their
260 property and the council gets to look at how a project meets the City's requirements.
261 Councilmember Lyden said he dislikes the idea.
262
263 Councilmember Stoesz got clarification on community notification. Staff confirmed that
264 a public hearing was held by the Planning and Zoning Board.
6
CITY COUNCIL WORK SESSION
APPROVED
265 7. Belland Farms Second Addition and New Horizon Academy—City Planner
266 Larsen reviewed a PowerPoint presentation that included information on the following:
267 - Site and Existing Conditions;
268 - Overview of Proposal, Location and Zoning;
269 - Preliminary Plat Comparison and Ghost Plat;
270 - Streets and Utilities; day care will have a shared driveway with future development;
271 - Site Plan and Parking;
272 - Architectural, Stormwater and Landscaping Review; advisory board review has
273 occurred with small directions;
274 - Traffic Study and Level of Service;
275 - Other review (public safety, county, City of Hugo).
276
277 The council discussed plans for the extension of Otter Lake Road (master planning
278 process underway).
279
280 Councilmember Stoesz offered comments on the extension of the driveway and on
281 allowing for school bus access.
282 8. Gateway Design/Hodgson& CRJ Streetscape Proposal—Community
283 Development Director Grochala reviewed his written staff report. Based on the Planning
284 and Zoning Board's recommendation, the council was approached and was supportive of
285 the concept of master planning for noted gateway areas of the City. Given the timing of
286 pending improvements for the area of Hodgson and County Road J, staff has spoken with
287 WSB &Associates about providing planning services for a project; a proposal is outlined
288 in the report.
289
290 Councilmember Stoesz suggested having a common theme with City signs, i.e.park
291 signage.
292
293 The council concurred that they will consider an action at the next council meeting.
294 Director Grochala added that there may be a joint meeting with advisory boards to talk
295 about design in the future.
296 9. Appraisal Requests,Winter Wetland Bank& Water Treatment Plant—
297 Community Development Director Grochala reviewed the written staff report outlining a
298 process to receive appraisals for two sites that may be acquired. The council discussed
299 with staff the appraisal process and how long an appraisal will remain valid. Director
300 Grochala explained the necessity of having good information.
301 2023 Draft Budget& Tax Levy—Finance Director Lynch noted that the information
302 being presented has not changed from the last discussion with the exception of one
303 change in a number from Anoka County(2023 Proposed Tax Capacity Rate due to an
304 updated Fiscal Disparity Distribution). She has provided a new tax impact calculator in
305 the report; this will help the council see the impact of removing the $176,000 discussed
7
CITY COUNCIL WORK SESSION
APPROVED
306 previously. Ms. Lynch also noted the eligibility level for the state homestead credit. She
307 asked the council to look at the information provided and give direction that will allow
308 staff to bring forward a preliminary levy for council approval on September 26tn
309
310 Mayor Rafferty noted the question of including the $176,000; he is concerned about areas
311 where the City is losing ground. Would the council consider a funding addition with the
312 idea that the levy adoption will be a maximum? He suggested an amount of$300,000.
313 He also asked Public Safety Director Swenson about ordering for the fleet early.
314 Administrator Cotton noted that computer chip production has been a big driver of the
315 delay and she believes that situation may be righting itself. Ms. Cotton added that the
316 council could approve the capital levy at the September meeting but that would mean the
317 City is tied and any changes before the final budget adoption in December could not
318 result in any increase. Staff was directed to designate the $124,000 as contingency with a
319 streets placeholder. Consideration of the capital budget will not be expedited for
320 September.
321 10. Council Updates on Boards/Commissions, City Council
322
323 North Metro TV—Councilmember Stoesz noted that North Metro TV reporter Rusty Ray
324 has left for another position,notably with WCCO-AM Radio.
325 11. Adjourn
326
327 The meeting was adjourned at 9:45 p.m.
328
329 These minutes were considered, corrected and approved at the regular Council meeting held on
330 September 26, 2022.
331
332
333
334
� a ne Bartell City C rk ob Rafferty, Mayor u
336
8