HomeMy WebLinkAbout05/03/1995 Council Minutes1
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COUNCIL WORK SESSION
CITY OF LINO LAKES
COUNCIL MINUTES
MAY 3, 1995
DATE Ma.y 3 , 199
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MEMBERS PRESENT; Reinert, N
MEMBERS ABSENT;: None
nether, Elliott, Bergeson
Staff members present: Acting City Engineer, John Powell,
Planning Coordinator, Mary Kay Wyland; Community Development
Director, Brian Wessel; Chief of Police, David Pecchia; Parks and
Recreation Director, Marty Asleson; City Administrator, Randy
Schumacher and Clerk - Treasurer Marilyn Anderson.
BEHM'S CENTURY FARMS PRELIMINARY PLAT, GARY UEDE AND JOHN JOHNSON
Ms. Wyland explained that she and Mr. Brixius, City Consulting
Planner met with Mr. Uhde and Mr. Johnson to review the questions
raised at the April 24, 1995 City Council meeting. The first
question involved a temporary cul -de -sac that would be
constructed at the west end of Phase I. Mr. Uhde is proposing to
extend the line for Phase 1 west to allow the temporary cul -de-
sac and to include two (2) lots in Phase I that had been proposed
for Phase II.
The second concern was Lot 18. Mr. Brixius felt that this was a
"butt" lot and this was not good planning. Mr. Uhde proposed
that this lot and the lots on either side of the lot be developed
with the driveways extend north to the street. Normally the lots
on either side of Lot 18 would have driveways extending either
east or west. Mr. Uhde proposed placing restrictive covenant on
the lot to insure that the driveway would be constructed
extending north.
The third issue involved restrictive covenants. A copy of the
restrictive covenants has been received and reviewed by Ms.
Wyland and Mr. Brixius. Mr. Brixius was satisfied with them.
Mayor Reinert noted an area of the restrictive covenants which
referred to "visiting aircraft ". Ms. Wyland will check to see if
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MAY 3, 1995
this issue is addressed in the current homeowners associations
by -laws.
Mayor Reinert asked what assurances does the. City Council have
that all requirements will be met. Ms. Wyland explained that all
documents would be recorded and /or noted on the final plat. Mr.
Johnson explained that the protective covenants on each lot will
be enforced when the building permit is approved.
Mr. Asleson asked if the trail issue had been resolved. Mr.
Johnson explained that the matter will go to the Rice Creek
Watershed District at their first meeting in May. Mr. Asleson
expressed concern that Rice Creek Watershed District may not
approve the plan for extending a trail through a portion of
wetland. He felt that if a direct route to the park area is not
approved by the Rice Creek Watershed District, a neighborhood
park should be established in the eastern portion of the plat.
Mr. Johnson explained that regardless of what the Rice Creek
Watershed District said about the trail through the wetland, no
neighborhood park would be constructed in Phase I. He explained
that if necessary, a neighborhood park would be established in
Phase II. Mr. Asleson said he would like the matter decided
before the final plat was approved.
Mayor Reinert asked Ms. Wyland to review the issue of the "butt"
lot with Mr. Brixius and to provide a recommendation regarding
the park dedication for the regular Council meeting on Monday.
SENIOR HOUSING UPDATE, RANDY SCHUMACHER
Mr. Schumacher gave a brief background on this matter and noted
that the senior housing proposal was first introduced to the City
Council about three (3) years ago. The original proposal was for
90 units and federal tax credits along with some City assistance
was needed to help make the rent on some units affordable to low
and moderate income persons.
Staff met with the developer, Cottage Homesteads about three (3)
weeks ago. A revised project consisting of 47 units plus a
clubhouse and 10 single family homes was discussed. Federal tax
credits for the revised plan have been allocated and the
developer is seeking additional financial assistance from the
City to keep the rents as originally planned.
Mr. Schumacher noted that the developer, Roger Derrick as well as
Mike Saxton and Terry Schmidt were here to answer questions about
the proposed development. He explained he has asked Mr. Sid
Inman to prepare an analysis of the financial information
prepared by the developer. The analysis will not be available
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until the middle of next week. Mr. Schumacher explained that a
development agreement must be completed and the proposal has to
be presented to the Planning and Zoning Board and the Park Board.
Mr. Derrick explained that he had recently completed a senior
project in Oakdale consisting of 114 units. He noted other
projects he has completed in the metro area.
Mr. Derrick explained that all financing has been completed.
Another lender has been secured and NSP will buy the federal tax
credits. He noted that he is ready to bid the project and start
pre- marketing the housing units. There is a requirement that a
certain number of the units be pre - leased before construction can
actually begin. Mr. Derrick explained that he would like to give
the senior citizens of Lino Lakes first chance to rent the units
and would like to have a marketing person in the senior center to
sign reservation forms. When the list of reservations is
completed, the list will be sent to a management company that
takes the full application and then a lease is signed. Mr.
Derrick said he would like to get word to the community regarding
the availability of the senior housing units through the local
newspaper, City newsletter or other local information channels.
Council Member Kuether asked if there is any assurance that Lino
Lakes residents will get first chance to rent the units five (5)
years from now. Mr. Derrick explained that it is illegal to give
a guarantee that Lino Lakes residents will get first
consideration. If the City had a public housing authority, he
could work through this agency and guarantee that Lino Lakes
residents would get the first opportunity to rent units as they
become available. However since there is no public housing
authority, Mr. Derrick said he would work with the City to see
that Lino Lakes citizens would get the first opportunity to rent
units as they become available.
Mayor Reinert asked about the financial structure of this
project. Mr. Derrick explained that the Tax Increment Financing
(TIF) remains the same as originally presented. However, a
portion of the TIF will involve the 10 single family homes.
These homes will be constructed for first time home buyers. NSP
will purchase the tax credits and be the major financier of
project. The City has agreed to certain financial concessions
regarding costs of permits and Cottage Homesteads will be asking
for additional assistance of approximately $71,000.00 so that
rents can be kept at the figure originally quoted.
Mr. Saxton said he understood the need for a financial analysis
as Mr. Schumacher has outlined. However, he noted this project
has been scrutinized by everyone involved. Mr. Saxton said that
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Cottage Homesteads has met all requirements and if for some
reason the City cannot provide the extra $71,000.00, the rents
will have to be adjusted accordingly.
Mr. Schumacher noted that the original City subsidy was for 90
units. Now the number of units has been reduced to 47 and an
analysis is being made of how many dollars should the City
subsidize 47 units. Mr. Saxton said the formula has not been
changed. The TIF is still 90%, however, this will not generate
enough subsidy for only 47 units. The 10 single family units are
needed to keep the rent at the agreed upon rate. Mr. Schumacher
asked if the project is reduced from 90 to 47 units, shouldn't
the dollars be reduced proportionately? Mr. Saxton said the City
is still capturing 10% and the project will need the proper
zoning and additional support from the City. All other financial
commitments have been secured.
Council Member Kuether asked what are the financial
qualifications for securing a unit. Mr. Derrick explained.
Mayor Reinert noted that this project was started more than three
(3) years ago. He also noted that a project in Circle Pines is
already under construction and they started their project after
this one was started. Mr. Derrick explained that the delay was
in obtaining the tax credits. He said he was not aware of how
Circle Pines obtained their tax credits so fast.
Mayor Reinert asked if the City is being asked to contribute
additional dollars to the project. Mr. Saxton said no additional
TIF dollars, however, he is asking for further concessions on
building permits. Mr. Powell said he believed that Cottage
Homesteads is asking for further concessions on permits in the
amount of approximately $71,000.00. Mayor Reinert asked what
would happen if the City refused to provide additional
contribution. Mr. Saxton said the rent would increase
approximate $15.00 per month which means that they may not be
rented to Lino Lakes residents.
Council Member Bergeson asked what the City would gain by
approving the Cottage Homestead project. Mr. Saxton said that
the City would be providing housing for the seniors of Lino Lakes
who do not have a lot of money to pay for rent. Council Member
Bergeson said he would like to see a comparison of what the City
is contributing to the project and what the City will gain from
the project. Mr. Saxton said that one benefit is that the rent
will be reduced by $120.00 per month with City subsidy.
Mayor Reinert said he felt the project was important because it
gives the City a balance of available housing. However, he felt
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that Council Member Bergeson's question needed to be answered.
He noted that the City Council has worked on this project in
extremely good faith, however, the City must deal with what is
here today and let the market place determine what the rents
should be. Mayor Reinert said he personally felt that the City
should not offer any more permit concessions for the project.
Mr. Saxton said that his company has also worked diligently on
this project and has not missed any time limits on any portion of
the project. However, he felt that his company was caught up is
a political situation when the application for tax credits was
submitted. Mr. Saxton said that there is no question that the
project will be done, the only question is the amount of rent on
each.
Mr. Schmidt asked if this means that there will TIF on the 10
family single family units as well as the 47 cottage units? Mr.
Schumacher said that the TIF district is in place, the only
questions are what percent will be included in the development
agreement and should the 10 single family units be included in
the TIF subsidy.
Mr. Saxton explained that HUD sets the limit of the rents. He is
planning to increase the rents by 3% each year because it is
expected that costs such as taxes will increase by that
percentage. However, rents can never be raised above the HUD
cap.
Mr. Saxton said that he will try to make sure that Lino Lakes
residents get the first opportunity to rent the units as they
become available. However, he could not guarantee that this will
happen.
Mr. Saxton explained that HUD only requires that these units be
dedicated as senior housing for 15 years. He said that the deed
restrictions will include language guaranteeing that this project
will be senior housing for at least 30 years.
Mr. Saxton asked what would happen to the project if Cottage
Homesteads of America, Inc. went bankrupt. He explained that NSP
will own 99% of the project and the general partners will own 1 %.
Mr. Schumacher asked what guarantee is there that you will
continue as owners of the project. He noted a project in another
City where the owners had problems and ownership changed about
half of the way through the project. Mr. Derrick said that there
is no guarantee that they will continue their ownership. He
noted that the City will have control of the project through the
development agreement. Mr. Schmidt and Mr. Saxton gave brief
explanations regarding their involvement in other projects and
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the desire to remain partners in this proposal.
Mr. Schumacher explained that the Planning and Zoning Board will
review this project at their May 10, 1995 meeting. A development
agreement will be prepared and the project should be before the
City Council for their consideration May 22, 1995.
Mr. Chris Lyden, 6275 Holly Drive said that he felt that there
was an obvious need for senior housing. He asked how does the
City know that this project will be a good experience for Lino
Lakes? Mr. Derrick said that he felt that there will be a
greater involvement by the City of Lino Lakes as compared to
other such projects. He further explained how he felt that this
would be a good experience for the City.
This project will proceed through the planning and approval
process as outlined by Mr. Schumacher earlier.
CITY ENGINEER SEARCH UPDATE, RANDY SCHUMACHER
Mr. Schumacher handed each Council Member a brochure from the
Breimeyer Group containing a schedule for the search for a new
City Engineer. He explained that Mr. Breimeyer was here today to
talk to several staff members and will talk to each Council
Member to get an idea of what type of a person the City is
looking for.
RECYCLING DAY, RANDY SCHUMACHER
This is just a reminder that Saturday May 6, 1995 is recycling
day in Lino Lakes.
ELECTIONS, PRESIDENTIAL PRIMARY, MARILYN ANDERSON
Mrs. Anderson explained that the State Legislature is considering
legislation that would require a presidential primary in 1996 but
would not provide funding for the municipalities to conduct the
primary. She will keep the City Council updated on this matter.
REGULAR AGENDA
The City Council reviewed the agenda. Mr. Wessel noted that the
Economic Development Authority will meet at 6:00 P.M. prior to
the regular Council meeting. The request is to modify the TIF
plan for District No. 1 -4. The modification is for the Blue
Heron project which will be before the Planning and Zoning Board
on May 10, 1995. Mr. Wessel noted that TIF assistance is
proposed for this project and noted that they are well within the
guidelines for a TIF project.
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Mr. Powell explained that he will be recommending that the City
Council deny a petition requesting an Environmental Assessment
Worksheet (EAW) for Trapper's Crossing. He noted that SEH
reviewed the petition and prepare a "point by point" response to
the citizens concerns. SEH has found that there is no mandatory
requirement for an EAW for Trapper's Crossing. The City Council
has the option of ordering a discretionary EAW if it is
determined that Trapper's Crossing will have a significant impact
on the surrounding properties. Mr. Powell will be recommending
that a discretionary EAW not be ordered since it cannot be shown
that there will be significant impact.
Mr. Powell updated the City Council regarding the Lake Drive
(CSAH #23) /Hodgson Road (Highway #49) improvement. Phase II of
the archeological study has been completed and the proposed
mitigation will be approved by the State. Originally, the cost
of the Phase II investigation was estimated to be $90,000.00.
Later the cost was estimated to be $180,000.00. It has now been
determined that the cost will be closer to the original estimate.
Mr. Schumacher said that he and Mr. Powell met with
representatives from the Historical Society and were told that
the site is not a meaningful Indian historical site. The study
should be completed within three (3) weeks and authorization for
bids should be on the May 22, 1995 Council agenda.
Mr. Lyden referred to the request for an EAW for Trapper's
Crossing and noted that even though the project does not meet the
threshold for a mandatory EAW, there still are issues to be
addressed. Mr. Powell again explained that the City would have
to determine that there is a significant impact to justify
ordering an EAW. Mr. Lyden referred to the SEH report and noted
that he is concerned because it appears that a culvert will bring
drainage from Trapper's Crossing onto his property where his
drainfield is located. He noted that it is functioning well now
and asked if the developer is required to bear the costs of
repair if the system should fail due to the construction. Mr.
Powell said that there is no guarantee that this drainfield will
not be impacted. He suggested that Mr. Lyden and the developer
get together prior to the start of the construction and determine
what the situation currently is and if it is functioning well now
and fails during construction, it can be documented that the
failure is due to the construction. The developer would be
liable if it failed.
Mr. Lyden felt that there was an error in the SEH report and
asked how the City Council could approve the report. Mr. Powell
explained the rules regarding an EAW. He also noted that the
grading and drainage plan for the development has not been
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completed but will be thoroughly reviewed when it is available.
Mr. Powell explained that the septic system can easily be
monitored and would normally be monitored as part of the
construction process.
Ms. Caroline Dahl, 1101 Holly Court explained her concern
regarding a buffer between Trapper's Crossing and her home water
run -off. Mr. Powell explained that the City has adopted a local
water management plan. Although the City has accepted the
authority as a Local Government Unit (LGU) Rice Creek Watershed
still will review all development plans and issue the appropriate
permits as they have done in the past. Mr. Powell also explained
that the grading and drainage plans have not been designed,
however, the rate of water run -off from Trapper's Crossing cannot
be increased. Flooding in the area will not be made worse.
Ms. Dahl said that Mr. Brixius had written a letter to the
residents indicating that the developer will contact them
regarding the berm. As of yet, there has been no contact. Mr.
Powell explained that Ms. Wyland will be handling the berm issue.
He also noted the developer will be forced to follow the
requirements of the City.
Mr. Lyden said that holding ponds act as a "cup ". The residents
had asked for the EAW because of the volume of run -off that will
be created by the development. He felt that any increase in the
volume of run -off would have a large impact. Mr. Powell said
that the volume of run -off is a concern and will be monitored.
Sue Walseth, 1101 Holly Drive expressed concern regarding the
drainage from a culvert that will come to her property line. She
suggested that the culvert be placed in the ditch. Mr. Powell
explained that the drawings that were used were not drawn to
scale. The developer cannot direct drainage onto her property
without an easement. Ms. Walseth noted that there is a holding
pond at the other end of her property and she did not want her
pasture turned into a wetland. She asked if there was any
guarantee that the pond will not overflow and spread sediment
onto her property. Mr. Powell said that SEH has also mentioned
this issue and it will be monitored in the same manner as Mr.
Lyden's septic system.
Council Member Bergeson asked that staff let the developer know
about the concerns expressed by the residents this evening.
The City Council returned to considering the agenda for Monday.
Mr. Asleson outlined the proposal from Mr. and Mrs. John Lund to
donate a parcel of land to the City for use as a trail between
the PineRidge development and Shenandoah park. He noted that
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although the Lunds are donating the property, there will be
expenses of approximately $3,000.00 to get the parcel detached
from the balance of the Lund property, register the property in
the name of the City and to upgrade the parcel with gravel base
and blacktop. The Dedicated Park Fund will finance this
acquisition.
The meeting was adjourned at 7:50 P.M.
These minutes were considered, corrected and approved at the
regular Council meeting held on June 12, 1995.
/ I(r_,r A , / 1'
Marilyr G. Anderson, Vernon F. Reinert,
Clerk - Treasurer Mayor
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