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HomeMy WebLinkAbout07-28-2003 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA Monday, July 28, 2003 6:30 p.m. 1. CALL TO ORDER 2. ROLL CALL: President Linke, Vice President Stigney, Commissioner Quick, Commissioner Marty, Commissioner Gunn 3. APPROVAL OF AGE NDA 4. APPROVAL OF MINUTES: A. EDA Minutes, July 14, 2003 5. CONSENT AGENDA 6. EDA BUSINESS 7. REPORTS A. County Road H2 Residential Project (“The Woods of Mounds View”) Pre-Development Agreement & Update B. Other Projects Update (verbal report) 8. NEXT EDA MEETING: Monday, August 11, 2003 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 July 14, 2003 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:30 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: Stigney, Quick, Marty (arrived at 6:43 p.m.), Gunn, and Linke 14 15 NOT PRESENT: None. 16 17 3. APPROVAL OF AGENDA 18 19 MOTION/SECOND: Gunn/Stigney. To Approve the July 14, 2003 Agenda as Presented. 20 21 Ayes – 4 Nays – 0 Motion carried. 22 23 4. APPROVAL OF EDA MINUTES 24 25 A. June 9, 2003 Minutes 26 27 MOTION/SECOND: Stigney/Gunn. To Approve the Minutes of June 9, 2003 as Presented. 28 29 Ayes – 4 Nays – 0 Motion carried. 30 31 5. CONSENT AGENDA 32 33 None. 34 35 6. EDA BUSINESS 36 37 A. Report on the Soil Test Borings for the County Road H2 Property 38 39 Economic Development Coordinator Backman provided a report on the soil borings indicating 40 that the report is favorable and less soil correction would be needed than originally believed. 41 42 Economic Development Coordinator Backman indicated that the tests had come in under budget 43 noting that the EDA authorized $2,995 and the invoice came in at $2,895.00. He then 44 recommended that the EDA accept the report. 45 Mounds View EDA July 14, 2003 Regular Meeting Page 2 46 MOTION/SECOND: Quick/Gunn. To Accept the Soil Test Borings Report for the County Road 47 H2 Property as Presented. 48 49 Ayes – 4 Nays – 0 Motion carried. 50 51 B. County Road H2 Residential Project Pre-Development Agreement between 52 Pro Craft Homes and the City of Mounds View 53 54 Economic Development Coordinator Backman indicated that on June 9, 2003 the EDA selected 55 Pro Craft Homes to be the developer for this project and since then the developer has been 56 communicating with homeowners on the block. He then said that, given the potential 57 investments, Staff felt that a predevelopment agreement would be appropriate. The purpose of 58 which is to delineate the responsibilities and obligations and serve as a starting point for 59 negotiations. He then reviewed the areas covered by the agreement and indicated that Staff was 60 seeking direction from Council as to whether the developer should be allowed to install the 61 infrastructure improvements or whether the City should do so. 62 63 President Linke asked Public Works Director Lee for his opinion on the matter. 64 65 The Developer indicated they would prefer to put in the infrastructure from the standpoint of 66 coordinating timing of the development and said it makes economic sense for all parties to have 67 one contractor to coordinate. 68 69 Commissioner Marty arrived at 6:43 p.m. 70 71 Public Works Director Lee indicated it would be his recommendation that any infrastructure that 72 is publicly owned be installed by the City. 73 74 President Linke asked whether the City could work with the projected timeframe of this 75 development. 76 77 Public Works Director Lee indicated that the timing would work out perfectly with the street 78 project that is scheduled for that area. He then said that Staff anticipates that the developer 79 would have the site graded and ready by June 1, 2004 and then the City’s contractor would install 80 the infrastructure. 81 82 Economic Development Coordinator Backman indicated that, in terms of environmental cost, 83 Staff does not anticipate any remediation nor does Staff expect any need for eminent domain or 84 relocation of tenants to be occurring. He then said that the City would need to determine who 85 would install the infrastructure. 86 87 Mounds View EDA July 14, 2003 Regular Meeting Page 3 Economic Development Coordinator Backman indicated that the City would be reimbursed for 88 the soil report as listed in the predevelopment agreement. 89 90 Economic Development Coordinator Backman indicated the developer would pay for the normal 91 permit and development review plans that are part of this project. 92 93 Darren ______ from Pro Craft Homes addressed the EDA and said that if the City wants to 94 install the infrastructure they are willing to comply with that requirement. He then said that the 95 timing of June 1, 2004 would work but said they would like to be able to have lots available in 96 June of 2004. 97 98 Economic Development Coordinator Backman indicated that Staff anticipates closing on the 99 property within the next few months, soil work this Fall, and construction of one or two model 100 homes by June of 2004. He then explained that there is an existing structure on 3016 and Staff is 101 in the process of obtaining quotes for demolition and that would be a logical site for a model 102 home. 103 104 Dan Lindberg of 7188 Knollwood Drive indicated that he represents nine of the residents 105 adjacent to this property and would like to submit a petition to the City requesting that the City 106 remove the four lots it owns from this development and they would also ask that those lots 107 owned by the City be rezoned to CRP. 108 109 Mr. Lindberg indicated that he has been fighting the City for 30 years to prevent development in 110 this area and this proposal is disgusting. He then said he lives here because of the large lots and 111 wildlife and the feeling of living in the country and this development reduces those benefits. 112 113 Mr. Lindberg indicated that one of the benefits of this City is its large lots and open areas but it 114 seems that the City is trying to develop all open areas in the City. He then referenced a copy of 115 an article in a newspaper concerning Fridley’s proposal to eliminate Spring Brook Nature Center 116 and said he had included it in the information he had for the EDA. 117 118 Mr. Lindberg indicated that any development on this site reduces his and his neighbor’s quality 119 of life and they are asking that the City not do that. He then provided the EDA with a petition 120 signed by10 of the 17 residents adjacent to the development. 121 122 David Minkstra of 3000 County Road H2 indicated he is deeply discouraged with this process 123 because none of the residents knew this was going on. He then said that he feels the City is 124 going behind residents’ backs and trying to pass this and they are elected officials who are 125 supposed to be doing the public business for public benefit and he believes this is a violation of 126 the public trust. 127 128 Mr. Minkstra indicated that he wants the area left alone as there is an abundance of wildlife in the 129 Mounds View EDA July 14, 2003 Regular Meeting Page 4 area that would be run out if the area is developed. He also said he would like a walking path 130 installed to allow the rest of the community to walk the area and enjoy the wildlife. He further 131 commented that he feels the City is trying to accommodate developers and not its own residents. 132 133 Mr. Minkstra asked that the City hold a public hearing where the public is invited so that all 134 residents know what is going on and what the City intends to do with the property. 135 136 Bill Rice of 2932 County Road H2 asked how many homes would face H2 if this is approved. 137 138 Economic Development Coordinator Backman indicated there would be two or three new homes 139 depending upon which plan is approved. 140 141 Mr. Rice asked when the silt fence and trail were going to be started. 142 143 Public Works Director Lee indicated that was a question on the H2 reconstruction project and 144 said that it would be in late August. 145 146 Mr. Rice indicated that if this plan goes through he is opposed to extending Spring Lake Road to 147 the south through the new development because it would cause more traffic and accidents. He 148 then suggested moving the road down by 3016 and using a cul-de-sac. 149 150 Mr. Rice asked if it is possible to get a deer crossing sign west of Knollwood and west of 151 Pleasantview Drive because there are deer crossing there all the time. He then said that he hopes 152 this does not go through but, if it does, he does not want Spring Lake Road extended as 153 proposed. 154 155 Mr. Minkstra said he does not believe the results of the soil testing because his house is 50 years 156 and it is still settling and every time he has to paint he has to repair cracks in the plaster. He also 157 indicated that his driveway sank two inches over the last 10 years. 158 159 Mr. Minkstra indicated that he was an engineer for 40 years and he has dealt with technical data 160 and had all kinds of smoke blown in his face and anytime the technical data does not pass the 161 sanity test you should watch out. He further commented that he feels houses will crack and settle 162 and also indicated that there is a creek in the area so that indicates that the ground water comes to 163 the surface and anyone who tries to put a basement in there is going to be flooded and he would 164 not trust any construction that goes back there. 165 166 Mr. Minkstra indicated that with the road paving project a holding pond was put in but this 167 proposal eliminates that pond and provides more runoff that will be detrimental to Rice Creek 168 and he does not approve of that. 169 170 President Linke asked what kind of engineer Mr. Minkstra was. 171 Mounds View EDA July 14, 2003 Regular Meeting Page 5 172 Mr. Minkstra indicated he was a mechanical engineer. 173 174 Economic Development Coordinator Backman indicated he has found Twin City testing to be 175 above board and has had no negative experiences with them. He further commented that he did 176 not tell them what to report they simply reported what was found when the soil borings were 177 done. 178 179 Mr. Backman indicated that there are willing parties involved with the project and one of those 180 private owners is Mr. Fyksen. 181 182 Mr. Fyksen of 3048 County Road H2 indicated that he has listened to the comments this evening 183 and he is also a nature lover. He then said that a City needs to keep growing to continue to thrive 184 and since there are financial constraints for the City right now this redevelopment project is a 185 way of generating revenue for the City. 186 187 Mr. Fyksen further commented that there is not much higher end housing in Mounds View and 188 he feels this development offers existing residents the opportunity to upgrade their housing 189 without having to leave the City. 190 191 Mr. Fyksen indicated that he feels having a $400,000 or $500,000 home located next to his 192 $200,000 rental property will only increase its value and not detract from it. He further 193 commented that there are deer all over in the City and there are plenty of wild areas for them so 194 developing this area will not drive them out. 195 196 Mr. Fyksen indicated that he is open to negotiations on selling his property and feels he has the 197 right to do that if he wants to. He also thanked the City for indicating that they did not intend to 198 use eminent domain to force a sale if negotiations are unsuccessful. 199 200 Jim Melcher of Pro Craft Homes indicated that they have received positive feedback from other 201 residents that are interested in upgrading their housing and want to stay in Mounds View. 202 203 Vice President Stigney indicated there had been a question concerning damp basements and then 204 asked whether there is a guarantee on water infiltration on the homes to be built. 205 206 Mr. Melcher indicated that he has always been very responsible for the condition of the home 207 when it is sold as well as after that with the warranty he provides. He then said that it does not 208 do him any good to build a house with a wet basement because it tarnishes his reputation and he 209 has to pay to fix it anyway so the utmost care will be taken to ensure that the basements are not 210 wet. He further commented that drain tiling would be used and the roadbed would be raised to 211 create natural drainage. 212 213 Mounds View EDA July 14, 2003 Regular Meeting Page 6 President Linke commented that the report from Twin City Testing suggests the size of footings 214 at 1500 per square foot and he usually sees 3000 pounds. 215 216 Mr. Melcher indicated that they are not looking at under sizing because the cheapest investment 217 you make is in the footings. He then assured the EDA that there would not be a problem with 218 that. 219 220 Vice President Stigney asked whether drain tiling would be installed in the homes. 221 222 Mr. Melcher indicated that they generally do so on the interior but on walkouts it works out well 223 to do both and most of the homes to be built will be walkout basements. He then said that the 224 drain tile and the sump would be automatic. 225 226 Mr. Melcher indicated that the pond does not disappear it is relocated and they will base the size 227 and depth based on the estimates of water drainage. 228 229 Commissioner Quick indicated he would like to know what the elevations are in that area as well 230 as the flood plain elevation. 231 232 Commissioner Marty indicated that he likes Option 1 better if the City can work it into the 233 timeframe with the City installing the streets and utilities. 234 235 Mr. Lindberg commented that it sounds like this is a done deal and asked what kind of 236 development they could expect next because he has looked at the sheets Staff has with them and 237 it appears there is other development planned for the area. 238 239 President Linke indicated that is not part of this plan and explained the line around the property 240 indicates that the City owns the property. 241 242 Mr. Lindberg asked if there would be an overall master plan rather than one piece at a time. 243 244 President Linke indicated the City started with three developers and said this has been going on 245 since January and it has been in the paper several times as well as on cable. 246 247 Mr. Lindberg asked the City to get citizen involvement on these things and said he would like to 248 minimize the impact to his property. 249 250 Economic Development Coordinator Backman indicated the highest part of the property is at 251 902.4 feet and the lowest is at the edge of the ditch at 890. 252 253 Commissioner Quick asked for the elevation for the flood plain. 254 255 Mounds View EDA July 14, 2003 Regular Meeting Page 7 Economic Development Coordinator Backman indicated the Water Resources Information 256 Management Data labels the area SC4 which translates into a regulatory flood protection level of 257 875 and a recommended building depth of 878.9. 258 259 Mr. Lindberg indicated there is a lowland area just south of Wooddale and asked how far up that 260 came because he has standing water in his yard. 261 262 Economic Development Coordinator Backman indicated that the lowland area is 650 feet south 263 of where they are discussing. 264 265 Public Works Director Lee indicated that Staff would look into what was causing water to back 266 up into the block. 267 268 Mr. Lindberg expressed concern that the development would drain onto his property. 269 270 President Linke indicated the development is not allowed to create drainage onto neighboring 271 properties. 272 273 Mr. Rice asked if there would be another meeting on this proposal. 274 275 President Linke indicated the City is looking at draft proposals to work with a developer to begin 276 the process and indicated that there have been several meetings on this already. 277 278 Mr. Rice commented that he has put in drain tile and the only time you do that is when you have 279 a water level that is too high. 280 281 Jerry Blanski of 2933 Wooddale commented that he really liked what President Linke just said 282 that you cannot create or push water onto someone else’s property because he has been fighting 283 that issue for years with the prior City Engineer. He then said that he is not sure if Mr. Lee is 284 aware of the situation but he has been working with Mr. Pittman and Mr. Pittman has guaranteed 285 him that his property would be taken care of and water should not be there for his lot and the two 286 lots north of there. He further explained that when they put the pipe in there they raised the 287 property and created water flow that comes from two or three lots north of him and puddles in his 288 yard when there is a big rain and he has standing water creating a mosquito hole. 289 290 President Linke asked Staff to stay on top of the issue and keep Council advised. 291 292 Commissioner Quick commented that, based on the elevations, the farthest in the ground any of 293 the houses could go would be six feet and that amounts to needing an awful lot of fill to allow for 294 basements. 295 296 Commissioner Marty indicated he did not like the language in the agreement concerning eminent 297 Mounds View EDA July 14, 2003 Regular Meeting Page 8 domain because he does not believe in that and Staff has indicated that the City is not planning 298 on using it. 299 300 President Linke indicated that the document just leaves that as an option but the City has said it is 301 not going to use it. 302 303 Economic Development Coordinator Backman clarified that eminent domain is an option of last 304 resort and the City does not anticipate using it at all. 305 306 MOTION/SECOND: Marty/Gunn. To Approve the Draft County Road H2 Pre-Development 307 Agreement Between the City of Mounds View and Pro Craft Homes with Option 1 Having the 308 City Construct the Street and Utilities and all Costs Recovered through Assessments Placed on 309 the Lots Within the Development. 310 311 Vice President Stigney indicated that the agreement does not list what plan is to be used and he 312 asked whether that should be addressed. 313 314 Economic Development Coordinator Backman indicated that this is a pre-development 315 agreement and the details will be refined as the process moves forward. 316 317 Ayes – 4 Nays – 1(Quick) Motion carried. 318 319 C. Resolution Recommending Approval of the Acquisition of Tax Forfeited 320 Property, described as Lot 36, Knollwood Park, from Ramsey County for 321 $68,901.14 322 323 Economic Development Coordinator Backman reviewed how the parcel became available and 324 indicated the City is able to purchase the property from Ramsey County for $68,901.14. He then 325 recommended utilizing TIF funds to do so. 326 327 Interim City Administrator Ericson indicated that the City could not utilize TIF funds because, 328 according to the State Auditor, the City cannot move forward with any TIF purchases unless the 329 plan designates it. He then said that the City could utilize funds from the special projects fund as 330 this is a short term expenditure and the City would be reimbursed by the developer for the 331 property. 332 333 Vice President Stigney asked whether the costs needed to be established on paper with the 334 developer. 335 336 Economic Development Coordinator Backman indicated that the Agreement approved does not 337 discuss the terms of the lot purchase. 338 339 Mounds View EDA July 14, 2003 Regular Meeting Page 9 Vice President Stigney asked whether there were any time constraints on the purchase of the lot 340 from Ramsey County. 341 342 MOTION/SECOND: Marty/Stigney. To Postpone Resolution 03-EDA-175 Until Such Time as 343 there is a Signed Development Agreement or Written Agreement Between the City and the 344 Developer. 345 346 Ayes – 5 Nays – 0 Motion carried. 347 348 7. REPORTS 349 350 None. 351 352 8. NEXT EDA MEETING: July 28, 2003 353 354 9. ADJOURNMENT 355 356 President Linke adjourned the meeting at 7:46 p.m. 357 358 Respectfully submitted, 359 360 Recorded and transcribed by: 361 362 Joan Lenzmeier 363 TimeSaver Off Site Secretarial, Inc. 364