HomeMy WebLinkAboutCC MINUTES 081020101
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
CITY OF ST. ANTHONY
CITY COUNCIL REGULAR MEETING MINUTES
August 10, 2010
CALL TO ORDER.
Mayor Faust called the meeting to order at 8:00 p.m.
PLEDGE OF ALLEGIANCE.
Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance.
ROLL CALL.
Present: Mayor Faust; Councilmembers Gray, Jenson, Roth, and Stille.
Absent: None.
Also Present: City Manager Mike Morrison, City Attorney Jay Lindgren, Todd Hubmer of WSB &
Associates, Inc, and Stacie Kvilvang of Ehlers & Associates, hic.
CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
ITEMS.
L APPROVAL OF AUGUST 10, 2010 CITY COUNCIL MEETING AGENDA.
Motion by Councilmember Stille, seconded by Councilmember Gray, to approve the City
Council Meeting Agenda of August 10, 2010.
Motion carried unanimously.
H. PROCLAMATIONS AND RECOGNITIONS.
None.
III. CONSENT AGENDA.
A. Consider July 27, 2010 Council meeting minutes;
B. Consider licenses and permits;
C. Consider payment of claims; and
D. Resolution 10-054; Electine to Continue Particinatine in the Local Housine Incentives
Account Program Under the Metropolitan Livable Communities Act for Calendar Years
2011 through 2020.
Motion was made by Councilmember Roth, seconded by Councilmember Jenson, to approve the
Consent Agenda items.
IV. PUBLIC HEARING.
Motion carried unanimously.
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
City Council Regular Meeting Minutes
August 10, 2010
Page 2
None.
V. REPORTS FROM COMMISSION AND STAFF.
None.
[9I 1t`►I 11 k WWIQU41111NISTO 9
A. Resolution 10-055: Accepting the Feasibility Report and Ordering Final Plans for the
2011 Street Improvement Project. Todd Hubmer. WSB & Associates. Inc., presenting.
Mr. Todd Hubmer, WSB & Associates Inc., provided a brief overview of the proposed 2011
Street and Utility hriprovement Project and the project feasibility report. The project includes
reconstruction of the following streets:
1. Belden Drive NE from 37`h Avenue NE to 36`h Avenue NE
2. Coolidge Street NE from 37`h Avenue NE to 36u' Avenue NE
3. Harding Street NE from 37`h Avenue NE to 36h Avenue NE
4. Edward Street NE from 37`h Avenue NE to 36`h Avenue NE
Mr. Hubmer reviewed the estimated project cost and funding sources. He reviewed the
comments received at the public meeting regarding the proposed project. Mr. Hubmer requested
Council consideration of Resolution 10-055 accepting the feasibility report and authorizing
preparation of final plans and specifications.
Mayor Faust inquired whether the City qualifies for infiltration grant funds available through the
Metropolitan Council. Mr. Hubmer responded in the affirmative. He stated the Metropolitan
Council is working out administrative issues associated with the grant program. The minimum
grant amount would be $50,000 with an ability to apply additional funds. Staff is tracking this
closely to ensure that St. Anthony receives its share of those infiltration dollars.
Motion by Councilmember Roth, seconded by Councilmember Gray, to approve Resolution 10-
055; Accepting the Feasibility Report and Ordering Final Plans for the 2011 Street Improvement
Project.
Mayor Faust made a friendly amendment to include the total estimated project cost of
$1,890,000 in the above motion.
Motion carried unanimously.
B. Resolution 10-056: Resolution Relating to Phase III Redevelopment Agreement By and
Amon the he City of St. Anthony. Minnesota, The Housing and Redevelopment Authority
of the City of St. Anthony, Minnesota and Apache Redevelopment, LLC. ("The
Developer") Stacie Kvilvang, Ehlers & Associates, Inc., presenting,
Ms. Stacie Kvilvang, Ehlers & Associates, Inc., presented the history and current status of the
Development Agreement for the Phase III Silver Lake Village Redevelopment. Ms. Kvilvang
City Council Regular Meeting Minutes
August 10, 2010
Page 3
1 informed that Apache Redevelopment LLC approached the City to enter into a new development
2 agreement to finish out certain portions of the Silver Lake Redevelopment as Phase IIIA, Phase
3 HIB, and Phase IHC. She provided an overview of the following proposed business terms for the
4 new Phase IH Development Agreement: 1) General; 2) Surviving Provisions of the Phase I
5 Development Agreement; 3) Surviving Provisions of the Phase H Development Agreement; 4)
6 Conveyance of Vacant Apache Office Site (North Portion of Phase IIIA); 5) Phase IH Tax
7 Increment; 6) Redeveloper Obligations; 7) Payment of Special Assessments; 8) Development
8 Timeframe; 9) Reporting Requirements; 10) Events of Default.
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Councilmember Stille inquired about risks associated with the tax increment if nothing were to
transpire with the development. Ms. Kvilvang stated if the developer does not perform by
December 31, 2011 the City will be in a position with a need for the land to be sold for the
proceeds and future increment to be able to pay Fannie Mae. The developer is requesting to
receive their makeup note for the 200 units they developed in the hopes to bring them to some
level of profit.
Councilmember Stille stated his position that Fannie Mae should receive priority of being paid
over the developer. He questioned if there have been environmental studies completed on the
property the City would acquire. City Attorney Lindgren replied that there were not any issues
noted with the environmental study previously completed. This issue would be reviewed again
prior to a closing on the property.
Councilmember Stille inquired who would determine the rate to be applied to the makeup note.
Ms. Kvilvang replied that the market and underwriters will determine the rate applied to the
makeup note; the remaining portion would likely be set at that same rate.
Councilmember Stille inquired about the expiration of the TIF district. Ms. Kvilvang replied that
the TIF district expires at the end of 2030 with the last increment receipt in 2031.
Mayor Faust requested clarification regarding the definition of "commencement of construction"
as outlined in Term No. 7 of the proposed Phase III Development Agreement. City Attorney
Lindgren advised as the agreement has been negotiated this term has been defined as the date a
building permit is pulled.
Mayor Faust verified with City Manager Morrison that a one year time period is allowed to build
a project once a permit is pulled. He stated his position that Term No. 7 as defined allows for too
much wiggle room. and should be reconsidered. He requested clarification regarding the
following statement included in the proposed resolution: "Whereas, the Parties have agreed to
cancel all rights and obligations under the Phase I Agreement and Phase II Agreement related to
the Phase IIB Senior Housing Development." City Attorney Lindgren explained that the Phase
II Agreement is now embodied in the proposed Phase III Agreement.
Councilmember Roth questioned what the reason is for the length of time the subject property
has been sitting vacant without development beginning. Ms. Kvilvang discussed the current
condition of the capital markets and the economic downturn.
City Council Regular Meeting Minutes
August 10, 2010
Page 4
1 Councilmember Stille inquired whether there are any deadlines or urgency associated with
2 Council approval of the proposed development agreement. Ms. Kvilvang replied there is no
3 urgency associated with the development agreement. Staff will meet with the developer and
4 bring back revised deal points based on direction from the Council.
6 Mayor Faust commented that while the Council is understanding of the current economic times,
7 they must protect the City and must complete the necessary due diligence.
8
9 Councilmember Gray requested that Council be provided with further information on the options
10 for consideration. City Attorney Lindgren advised on the following two options that are
11 essentially before the Council: 1) Negotiate a deal with the developer with further refinement of
12 the proposed agreement based upon Council direction; 2) Proceed with default remedies in
13 accordance with the current default situation.
14
15 Councilmember Gray stated his position that there should be priority in paying off Fannie Mae
16 as opposed to the makeup note requested by the developer. He clarified that he would like to be
17 provided with additional information on the ramifications of the options in the long term. City
18 Attorney Lindgren advised that he would recommend presenting options with this level of detail
19 at a future date.
20
21 Motion by Councilmember Stille, seconded by Councilmember Gray, to table Resolution 10-
22 056; Relating to Phase III Redevelopment Agreement By and Among the City of St. Anthony,
23 Minnesota, The Housing and Redevelopment Authority of the City of St. Anthony, Minnesota
24 and Apache Redevelopment, LLC.
25
26 Mayor Faust made a friendly amendment that Resolution 10-056 be tabled to the September 14,
27 2010 City Council meeting.
28
29 Motion carried unanimously.
30
31 VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS.
32
33 City Manager Momson reported on the following:
34 • A representative from the League of Minnesota Cities (LMC) attended yesterday's staff
35 meeting and was given a tour of the City. An orientation for newly elected officials will
36 be put on by the LMC this fall.
37 • Thank you to staff for a very busy week last week, including Village Fest, Night to Unite,
38 and the City Council Work Session.
39 • Staff is talking with Hennepin County about the possibility of a warning device at the
40 pedestrian crossing at Silver Lake Road and 34`h Avenue.
41 • The Fire Department has been awarded a $9,100 fire training grant.
42
43 Councilmember Jenson: No report.
44
45 Councilmember Roth reported on his participation in Night to Unite on August P last week. He
46 thanked the residents that participated, city staff, and city council members.
City Council Regular Meeting Minutes
August 10, 2010
Page 5
Councilmember Stille reported on his participation in Night to Unite on August 3`s last week and
thanked the hosts of the events he attended. He reported on his attendance at the August 2, 2010
City Council Work Session and his participation with the recent Sister City visit from Salo,
Finland.
7 Councilmember Gray reported on his participation in the recent Sister City visit from Salo,
8 Finland and Night to Unite on August P last week. He stated Village Fest was a success and
9 was well attended.
10
11 Mayor Faust reported on his attendance at the August 2, 2010 City Council Work Session and
12 Night to Unite on August P. He reported on his participation with the recent Sister City visit
13 from Salo, Finland and noted that he often received comments about how clean the City is. He
14 reported on Village Fest and thanked Julianne Hunter and her supporters for the work they put
15 in. He stated it is a true community event that is not run by the City, but that the City Manager,
16 Police Chief, Fire Chief, and Public Works Director play a heavy role in the event.
17
18 Mayor Faust stated it has come to his attention that the location of Terminal Drive and Walnut
19 Street in Roseville has been proposed for a new asphalt factory. He proposed that the Council
20 send a letter to the MPCA before their public review arena comes to a close stating the City's
21 strong opposition to the plant due to the following reasons:
22 • The proposed location is too close to Gross Golf Course.
23 • There are two active cemeteries in close proximity to the proposed location.
24 • Northeast Diagonal runs through this area and will go through Roseville up to White Bear
25 Lake.
26 • The sound may travel and/or the potential odor associated with the factory.
27
28 Consensus of the Council was to sign the opposition letter as proposed above by Mayor Faust.
29
30 Mayor Faust noted if this moves further along the next step would likely be to adopt a resolution
31 stating the Council's position.
32
33 VIII. COMMUNITY FORUM.
34
35 Mayor Faust invited residents to come forward at this time and address the Council on items that
36 are not on the regular agenda.
37
38 Hearing none, Mayor Faust moved forward with the agenda.
39
40 IX. INFORMATION AND ANNOUNCEMENTS.
91
42 None.
43
44 X. ADJOURNMENT.
45
46 Mayor Faust adjourned the meeting at 9:05 p.m
City Council Regular Meeting Minutes
August 10, 2010
Page 6
Respectfully submitted,
4
6 Carol Hamer
7 TimeSaver Off Site Secretarial, Inc.
8
9
10 ATTEST: ►✓tLw Vw
11 City Clerk
12
13
Mayor