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LAKE ELMO CITY COUNCIL MINUTES AUGUST 19, 2014 Page 5 of 8 Mayor Pearson stated that he believes the City is being as risk averse as it can. Council Member Bloyer stated that he believes this is a good project to start up development in this area and that a lot of good will come from it. Council Member Smith agreed. City Administrator Zuleger asked City Engineer Griffin to speak about how this project helps with the downtown area. City Engineer Griffin spoke about how we got to this project. That this sewer line is getting put in first helps to downsize the downtown project a little bit. It will save the City money on the sewer. He stated that this is a good project and that it sets the table for a lot of things to happen. Mayor Pearson stated that part of the public project is incumbent upon the private project from 30th Street to the railroad. He would like staff to consider that and let Council know at what point the private project should become compelled by the Council to become a public project. City Administrator Zuleger stated that staff will inform Council if that happens. MOTION PASSED 4-0. City Attorney Snyder thanked Council for all their work on this item. Mayor Pearson thanked staff as well for all their work. ITEM 12: INWOOD DEVELOMENT- HANS HAGEN HOMES AND INWOOD 10, LLC EAW, SPECIFY RGU AND AUTHORIZE FOR DISTRIBUTION City Administrator Dean Zuleger spoke on the EAW. Mr. Zuleger summarized this item in three main points; 1) The City has determined that an EAW is necessary for the development approval, the development is proposing 695 residential units. A mandatory EAW is triggered at 300 units, so the Council needs to establish that an EAW is necessary by motion. 2) Council need to establish the City of Lake Elmo as the Responsible Government Unit (RGU). The project is in the Lake Elmo jurisdiction so Council must establish the City as the RGU by motion. 3) Council needs to authorize the distribution of the EAW for public comment. This authorizes the publication of the EAW in the Environmental Quality Board publication “The Monitor” and once it is published starts the 30 day comment period. This is a procedural matter. There is no opposition from the developer on this item. MOTION: Council Member Bloyer moved TO DETERMINE THAT AN EAW IS REQUIRED, DESIGNATE THE CITY AS THE RGU, AND AUTHORIZE DISTRIBUTION OF THE DRAFT EAW FOR THE INWOOD MIXED-USE DEVELOPMENT PROJECT STARTING THE 30-DAY EAW PUBLIC COMMENT PERIOD. Council Member Nelson seconded the motion. Council Member Smith stated that she had a meeting with Mr. Hagen. This project is very different from any project she has ever seen and it will be very interesting to see it come forward. She would like to see the Council and Planning Commission go to the current development happening up in Blaine to see what the final project will look like. She was very impressed by the project. MOTION PASSED 4-0. ITEM 13: ENTER INTO A LEASE WITH LAKE ELMO ASSOCIATES, LLP FOR THE PURPOSE OF LEASING 2,461 SQUARE FEET OF OFFICE SPACE AT 3880 LAVERNE AVE N FOR THE PURPOSE OF OPERATING THE CITY OF LAKE ELMO City Administrator Zuleger presented on this item. He stated that the City is currently busting at the seams, and that the Annex is having some HVAC and leveling issues. The Annex also does may not meet the city’s building code. The City was trying to figure out how to accommodate some needs such as 1) more meeting space 2) privacy 3) larger work spaces for planning and the building inspector. Some space became available across the street in the Brookman Building. Mayor Pearson, Council Member Nelson, and John Thompson approached Mr. Zignego about possibly purchasing the building or what it might take to rent some space.