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Box: 19
Folder: CC MINUTES AND AGENDAS 2000
Document: CC MINUTES 08082000
1 CITY OF ST. ANTHONY
CITY COUNCIL REGULAR MEETING MINUTES
3 August 8, 2000
4 I. CALL TO ORDER.
5 Mayor Cavanaugh called the meeting to order at 7:00 p.m.
6 II. PLEDGE OF ALLEGIANCE.
7 Mayor Cavanaugh invited the Council and the audience to join in the Pledge of Allegiance.
8 III. ROLL CALL.
9 Councilmembers present: Mayor Cavanaugh; Councilmembers Sparks, Thuesen, and Horst.
10 Councilmembers absent: Hodson
11 Also present: City Manager Michael Mornson; City Attorney William Soth.
12 IV. APPROVAL OF AUGUST 8,2000 CITY COUNCIL REGULAR MEETING AGENDA.
13 Motion by Horst to approve the August 8, 2000 City Council Regular Meeting Agenda as
14 presented.
15 Motion carried unanimously.
V. PROCLAMATIONS AND RECOGNITIONS.
7 None.
18 VI. COMMUNITY FORUM.
19 Mayor Cavanaugh asked for input from the audience for items that are not on the regular agenda.
20 Ms. Betsy Mitchell, 2301 Taft St.NE, approached the Council and requested to discuss Apache
21 Plaza. She wished to speak to the Council at this time because she needed to leave for another
22 meeting. She would like to express her opinion that Hillcrest Development would make an
23 excellent improvement to the City through the renovation of Apache Plaza, and she also
24 mentioned Hillcrest's cooperative nature and experience.
25 Cavanaugh thanked Ms. Mitchell for her input.
26 VII. CONSENT AGENDA.
27 Motion by Thuesen to approve the Consent Agenda for the August 8, 2000 City Council
28 meeting, which consisted of:
29 1. City Council Meeting Minutes of July 11, 2000;
30 2. Licenses and Permits; and
31 3. Claims.
32 Motion carried unanimously.
0 VIII. PUBLIC HEARINGS.
34 None.
f
City Council Regular Meeting Minutes
• August 8, 2000
Page 2
1 IX. GENERAL POLICY BUSINESS OF THE COUNCIL.
2 A. Resolution 00-054, re: Skate Park.
3 Cavanaugh requested a report from City Manager Michael Morrison. Mornson reported said that
4 this issue has been developed by the Parks Commission. Plans and costs have been drawn up,
5 with input on the configuration and design from a Youth Task Force headed by a St. Anthony
6 High School youth representative from the Safe and Affordable Youth Activities, and
7 theprogram was spearheaded by Jan Jensen, Parks Commissioner. The Parks Commission
8 recommended approval at their June 12, 2000 meeting, and the Skate Park would be located
9 behind the Community Center over the old Central Park hockey site. Bids were received for the
10 Skate Park design and construction, surface paving, and fencing and can be executed
11 independently.
12 Motion by Sparks to approve Resolution 00-054, a Resolution Relating to a Skate Park;
13 Authorizing Funding and Approving Vendors for the Project, wherein the City Council of the
14 City of St. Anthony hereby approves the recommended vendors to construct a Skate Park and
15 authorizes $50,000.00 for said project to be transferred from the 1999 Liquor Operations profits
16 to the Park Improvement Fund.
17 Motion carried unanimously.
Cavanaugh wished to express his sincere thanks for the work that had been done in
19 implementing this project.
20 B. Consider Proposed List of Election Judges for the September 12, 2000 Primary Election.
21 Motion by Sparks to approve the Proposed List of Election Judges for the September 12, 2000
22 Primary Election as prepared by Connie Kroeplin, City Clerk, and noted on pages 23-24 of the
23 City Council Agenda Packets.
24 Motion carried unanimously.
25 X. REPORTS FROM COMMISSIONS AND STAFF.
26 A. Review of the Hillcrest Development Co. Preliminary Plan for the Apache Plaza area and
27 Review Springsted Letter on Tax Increment Financing.
28 Mayor Cavanaugh noted that the City is moving towards closure on this project, and he
29 explained that the issue at this meeting was to determine whether the Apache Redevelopment
30 Project is the right project for the community. Additionally, Cavanaugh mentioned that there
31 has been a range of Staff that has been assisting the City is making such decision. Furthermore,
32 Cavanaugh believes the developer has been forthright in stating their needs, and the reputation of
33 the developer is noted to be excellent and the track record has been proven. The Council must
34 determine if the community needs can be met by the developer.
Cavanaugh invited John Shardlow, DSU, to speak to the Council. Mr. Shardlow reviewed for
City Council Regular Meeting Minutes
August 8, 2000
Page 3
1 the Council some of the important points that have been discussed to date with regard to the
2 preliminary plan for the Apache Plaza Redevelopment.
3 Mr. Shardlow then reviewed for the Council a document known as "Exhibit A" and was
4 incorporated into the Council's agenda packets as page 57. This document reviewed and set
5 forth the permitted uses for the new redevelopment, which would be known as "Silver Lake
6 Centre," a high tech office campus.
7 Mr. Shardlow fielded various questions from the Councilmembers regarding the specifics of the
8 plan.
9 Thuesen commented that this issue is a matter of how closely the City wants the PUD held, and
10 how much the City is willing to struggle to keep the PUD that tight.
11 Sparks inquired if the community space would be publicly owned. Anthony Gleekel, attorney
12 for Hillcrest Development, interjected that.the community space would be provided by Hillcrest
13 Development for the public's use, but would not be publicly owned.
14 Cavanaugh inquired about the significance of the approval of the Planning Commission. City
15 Attorney Soth noted that the significance was that the Planning Commission recommended
approval to the Council. He further noted that the Planning Commission was the advisory
Commission to the Council, and did legwork and research in determining recommendations for
18 the Council.
19 Mr. Soth stated that his office would draft a PUD agreement so that the City and the developer
20 will contractually agree on exactly,what would be done.
21 Cavanaugh wished to confirmed with City Attorney Soth that if the City approves the plan that
22 the Planning Commission has referred to the Council, that such document will be the primary
23 document for this generation and future generations as far as planning and zoning are concerned.
24 Cavanaugh clarified that the Planned Unit Development(PUD) would be a contract between the
25 City and the developer.
26 Cavanaugh asked for clarification from Mr. Shardlow and City Attorney Soth regarding some of
27 the specifics on Exhibit A.
28 City Attorney Bill Soth reviewed the minimum obligations of Hillcrest Development, as well as
29 the preferred obligations of Hillcrest Development.
30 Cavanaugh expressed his opinion that certain uses should be tightened up as far as definition and
31 allowable use.
•
City Council Regular Meeting Minutes
• August 8, 2000
Page 4
1 Significant discussion ensued between Cavanaugh, Mr. Shardlow and Mr. Soth regarding the
2 specifics of the proposed plan and various opinions and thoughts were expressed.
3 When asked for a professional opinion on the redevelopment, Mr. Shardlow stated that he felt
4 that Hillcrest Development would entice the type of tenant that the City would be proud of, and
5 that Hillcrest has proven itself with other projects. Mr. Shardlow felt that Hillcrest Development
6 would create an asset to the community and obstacles would be few as far as the City working
7 with Hillcrest.
8 Thuesen recapped that the City needs to determine where it should go with respect to the PUD.
9 Thuesen felt that the City needed to be fair and come to an agreement and decide if the City is
10 comfortable with Hillcrest working,on'the Apache property. Additionally, Thuesen pointed out
11 that there are financial incentives for both the City and for Hillcrest to make this project
12 profitable. If the City decides not to work with Hillcrest,then this same issue would need to be
13 revisited in the future with another developer, if the City were able to attract another developer.
14 Horst responded about a prior comment regarding the importance of the issue being brought
15 before the Planning Commission. Horst wished to clarify that the Planning Commission was
16 entrusted to take comments from the community and to obtain a reaction from the community.
17 Then, a strong recommendation would be made to the Council from the Planning Commission.
The reason, Horst stated, is that the Planning Commission is the advisory group to the Council,
0 and it is that Commission's job to review any issues and then make recommendations to the
20 Council. Horst further clarified that the Planning Commission had already asked many of the
21 questions asked at this meeting tonight, and that the Commission has researched and reviewed
22 the issues recommended to the Council.
23 Cavanaugh introduced Chris Melsha, Planning Commissioner, and invited him to address the
24 Council. Mr. Melsha stated that it was the consensus of the Commission that it was comfortable
25 with the Plan. Even if it was not the perfect plan for the City, it was a very good plan and it
26 would be a great improvement over what is currently at that location. Mr. Melsha stated that it
27 was the consensus that the Commission was comfortable with the project moving away from the
28 retail sector.
29 Mr. Melsha read for the Council the findings of fact that the Planning Commission listed as part
30 of the approval of the plan. These findings were depicted on page 10 of the Planning
31 Commission Meeting Minutes of August 1, 2000, as well as on page 34 of the Council's meeting
32 agenda packets.
33 Mr. Melsha stated that through the almost nine months of hearing from Hillcrest Development
34 and reviewing the plans and the project, that the Commission was comfortable with the
35 assurances received from Hillcrest. Additionally, Mr. Melsha pointed out that the Planning
36 Commission toured many of Hillcrest's renovated sites, and the Commission was impressed with
the quality of work that Hillcrest performed and the appearances of the buildings.
City Council Regular Meeting Minutes _
August 8, 2000
• Page 5
1 Cavanaugh asked about a specific bullet point in the findings of fact that mentioned if the City
2 abandoned the proposed plan, that it would send a negative message. Mr. Melsha stated that he
3 could not speak for the other Commissioners, but his sense in the meaning of that sentence was
4 that Hillcrest was an excellent developer and a large amount of trust had been obtained from
5 Hillcrest. If the project were to be abandoned, Mr. Melsha stated that the possibility was great
6 that the City would send a negative message to other potential developers. Furthermore, Mr.
7 Melsha stated that the Commission was comfortable working with Hillcrest and felt that the
8 developer would provide the City with an excellent renovation and work fairly with the City as
9 well.
10 Cavanaugh thanked Mr. Melsha for the time and work that the Planning Commission had put
11 into the project.
12 Cavanaugh introduced Paul Steinman, Springsted, and invited him to address the Council. Mr.
13 Steinman directed the Council's attention to a memorandum from him dated July 28, 2000. This
14 memorandum discussed the public comments provided at the meeting of July 25, 2000 and
15 answered a number of points presented by Mr. Raymond Haik in his memo dated August 1,
16 2000. Additionally, the memorandum summarized Springsted's recommendations with regard
17 to the Hillcrest redevelopment proposal.
Sparks inquired about the funding and Mr. Soth and Mr. Steinman both explained the way the
funding would work and the incentives that Hillcrest Development would have to make the
20 project work successfully.
21 Horst confirmed with Mr. Robert Thistle, Springsted, that this project would create a very low
22 taxpayer risk. Mr. Thistle assured the Council that the risk was very low for taxpayers.
23 Cavanaugh inquired how much TIF money Hillcrest would receive if they performed until the
24 "interim" agreement as opposed to the"preferred." Mr. Steinman responded and provided
25 figures to Cavanaugh. It was confirmed that under either agreement, Hillcrest would receive TIF
26 money, but it would just depend upon which agreement was met as to how much TIF money
27 Hillcrest would receive.
28 Horst confirmed that the TIF money is being used to do good things for the project; strictly for
29 the benefit of the community. Mr. Steinman confirmed that TIF money is generally used for the
30 community good.
31 Bob Strakota, TIF consultant for Hillcrest explained additional details on the TIF financing.
32 Cavanaugh requested some additional documentation and Mr. Strakota offered to provide him
33 with a copy after the meeting.
34 Scott Tankenoff, managing Partner of Hillcrest Development, approached the Council. He
responded to some questions that had been asked by Cavanaugh and Sparks regarding figures
City Council Regular Meeting Minutes
• August 8, 2000
Page 6
1 that were planned on being spent on the project. Mr. Tankenoff stated that a document had been
2 prepared because at one point, he had been asked by City Staff to provide some preliminary
3 figures on what would be spent on the project. Mr. Tankenoff stated that he.basically had
4 released an internal document to the City that set forth some preliminary figures, and that was
5 the document being discussed at this meeting.
6 Thuesen felt that he had received a sense from Hillcrest that the developer needed an interim
7 plan. He felt that Hillcrest's goal was to go well beyond that interim plan.
8 Cavanaugh felt that the interim plan should be eliminated to be a permitted use. He felt it should
9 be kept in the mode of temporary and-take the permanency out of interim.
10 Thuesen clarified his statements by stating that it makes good business sense to have an interim
11 plan in place.
12 Cavanaugh noted that the interim plan could have permanency after 10 years. He says to change
13 interim to temporary, and eliminate the permanency .
14 Thuesen stated that from the beginning, Hillcrest Development has posed plans and said that
15 plan is the minimum standard, but that Hillcrest felt they could do better. Thuesen said that it
made sense to have both plans.
17 Horst said the City's consultants felt that the interim plan would not happen, and that the City
18 needed to determine where the comfort level is on this issue.
19 In response to that discussion, Mr. Tankenoff approached the Council. He attempted to clarify
20 what he believed the concerns and questions were from Cavanaugh. He reassured the Council
21 that past practice, track record, and development history were a good indication of the quality
22 and commitment that would be given to the project. However, guarantees would not be given as
23 to the achievement of the project beyond what has been presented to date.
24 Horst asked Mr. Tankenoff if he had an idea about the prospects for the fallback. Mr. Tankenoff
25 noted that Hillcrest Development has never missed a mark.
26 George Wagner, 3407 Fordham Court, wished to thank the Council for passing the skate park
27 resolution. The youth and the community would benefit from the implementation of the park.
28 Mr. Wagner continued by stating that he is in favor of moving forward with the Apache Project.
29 Mr. Wagner reviewed for the Council the long history of Apache Plaza, and the many developers
30 that have tried to redevelop the property and failed. Mr. Wagner cautioned the Council on
31 turning away Hillcrest Development from this project because it would be most difficult to
32 attract future developers,particularly if this project was declined. He felt that Hillcrest
Development was an excellent choice to make the project work. He encouraged the Council to
City Council Regular Meeting Minute' ``
August 8, 2000
• Page 7
1 try hard to negotiate with this developer and make the project work. Currently, Mr. Wagner said
2 that Apache Plaza is a wasted property as it stands now.
3 Scott Jahner, 3909 Pentad Lane, stated that he worked in the Apache Building for many years
4 and lives close to the building. He encouraged the Council to work as a team and to think about
5 long-term effects and work together on getting this project to work successfully. He stated that
6 the community would not ostracize the Council for decisions made, but the renovation needed to
7 move ahead.
8 B. Presentation of the Proposed 2001 Ci1y Budget.
9 City Manager Michael Morrison stated that there were four changes to the budget:
10 * There is a new calendar. This moved up the budget process for the public input.
11 * The goals have been listed in the budget as much as possible.
12 * A budget has been proposed that is based more on the actual expenditures from 1999.
13 * The general fund reserve of$250,000 will be taken out of the budget and will be
14 available for use at the Council's discretion.
15 Morrison reviewed important dates for the City with regard to the 2001 budget process, which
16 was depicted on page 109 of the Council's packages.
Morrison then directed the Council's attention to page 110 of the Council packages which set
forth the eight key goals for the City for 2000-2001.
19 Morrison reviewed for the audience and the Council, the General Fund accounts for resources
20 devoted to financing general services. These include General Government, Police, Fire, Public
21 Works and Parks. It is the largest budget and is the main operating fund of the City.
22 Morrison reviewed in detail the general fund revenues, expenditures, and changes in fund
23 balance. These figures were-depicted on page 114 of the Council's agenda packages.
24 Morrison directed the Council's attention to page 124 of the agenda package where the 2001
25 Levy Review was depicted. Additionally,page 124 was reviewed wherein a 3-year levy in
26 comparison was shown.
27 Morrison then reviewed the Capital Equipment 2001 Budget which was provided on page 123 of
28 the Council's packets.
29 Horst inquired if the expenditures allocated for parks refurbishing were a normal cost. Morrison
30 stated that in the past, the funds are used to maintain the existing equipment already in the parks.
31 The figure of$25,000 for refurbishing park equipment is a figure that has typically been
32 designated for maintenance of equipment.
Various discussion ensued regarding the proposed budget being taken from actual figures or
City Council Regular Meeting Minutes
August 8, 2000
• Page 8
1 budget figures with some objections being made as to the format.
2 It was discussed that the format for the proposed budget was the format that had been previously
3 discussed and requested. However, it was mentioned that the budget will vary from year to year,
4 and that Staff reviews and recommends appropriate increases or decreases as the needs exist.
5 Thuesen confirmed that Staff has come to the Council recommending a 7% levy increase, and he
6 trusted the Staff to request what they feel is necessary for the upcoming year.
7 Morrison reminded the Council that the figures can be adjusted per the Council's request, and
8 that the figures proposed were simply Staff s recommendations.
9 Horst inquired if additional expenditures were incurred for some reason, how those expenses
10 were covered under the 2001 budget. In other words, Horst would like to see some allowances
11 made in the budget for unanticipated expenditures.
.12 Thuesen mentioned that he was comfortable,with,the levy proposed at 7% levy and to send a
13 clear message to the Staff where the Council is heading with the levy and budget process.
14 Cavanaugh stated that he felt it was more of a message to the community as opposed to the Staff.
Motion by Horst to allow the meeting to continue past the deadline of 10:30 p.m.
16 Motion carried unanimously.
17
18 It was mentioned that the 7%proposed levy does not guarantee that taxes will go up that amount
19 because it depends on the tax base of the City.
20 Cavanaugh felt that the increase should be approximately 2.29%, but that Staff had proposed
21 7.2%. Sparks stated that it came down to the fact to trust City Staff about recommendations.
22 Horst stated that department heads and Staff should be able to determine the amount of funds
23 needed for the year.
24 Morrison mentioned that the strains and demands on City Staff are increasing each year, and said
25 that the levy is available to assist in meeting those demands. If the Council did not wish to
26 increase the levy by 7%,then direction needed to be given. Thuesen stated, however, that he
27 owes it to the community not to rubber stamp every item that comes before the Council, but in
28 this instance, he did not see any red flags that would cause him to have concern over the levy
29 increase.
30
31 Thuesen noted that he wanted to send the message that he would support the 7% increase and
32 gives his personal approval for City Staff to continue with the proposal.
•
City Council Regular Meeting Minutes
August 8, 2000
• Page 9
1 At the request of Councilmember Sparks,'Fire Chief Joel Hewitt approached the Council and
2 stated that the fire department's budget was arrived at based upon previous figures and the
3 amount of funds that he thought the department would need for the upcoming year.
4 Mornson proposed that the resolutions be put together regarding the budget and would be put on
5 the agenda for a meeting in September.
6 Mornson said that the Council needed to direct Staff whether the upcoming budget should be
7 actual or budgeted. Councilmembers Horst and Thuesen stated they did not feel that a decision
8 was made to change the budget to actual and to continue increases based on previous years'
9 budgets.
10 XI. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS.
11 Mornson reported that Middle Mississippi is considering a tax levy. City Staff directed Todd
12 Hubmer to do some research on this issue and will present at a later meeting.
13 Mornson reported that the Mayor and City Manager had a meeting with the superintendent of
14 schools and chairman of school board regarding Central Park. Another meeting is scheduled this
15 month to continue discussions. The City Manager and Superintendent will be meeting with
16 Springsted officials to discuss financing Central Park. It has been agreed that on September 26,
17 there will be a joint meeting with the school board, the Parks Commission, and BRW at 6:00
p.m. -7:30 p.m.
19 The Council's September 12 meeting will start at 8:00 p.m. due to the primary.-
20 Mornson reported that bids are due next week on the Harding Lift Station, and this will be on the
21 Council's August 22, 2000 meeting agenda. .
22 Regarding the holding pond of the Harding project, Todd Hubmer and Mornson will be selecting
23 an appraisal company and a consulting company that negotiates property easements. Mornson is
24 hoping that the appraisals get started sometime after Labor Day.
25 Horst reported that he does not think that decisions need to be this difficult for the Council. The
26 City has a superior Staff and the Council needs to have more faith in their recommendations and
27 opinions.
28 Thuesen congratulated all volunteers for the VillageFest celebration. Additionally, he expressed
29 appreciation for the organizers of the 5K run, and expressed anticipation that the
30 Councilmembers will volunteer for the dunk tank next year.
31 Sparks noted the fun and excitement of VillageFest and the success of the event.
32 Sparks noted from Horst's comment that sometimes the public process is designed to be slow.
City Council Regular Meeting Minutes
• August 8, 2000
Page 10
1 Cavanaugh noted that VillageFest was indeed a success and that the City was lucky to have Sue
2 Johnson as the chair of the event.
3 Cavanaugh announced that the Kiwanis should have a gold star in making the Pancake Breakfast
4 a success.
5 XII. INFORMATION AND ANNOUNCEMENTS.
6 None.
7 XIII. ADJOURNMENT.
8 Motion by Horst to adjourn the meeting at 11:09 p.m.
9 Motion carried unanimously.
10 Respectfully submitted,
11 Sue Selseth
12 TimeSaver Off Site Secretarial, Inc. 4
13
14 or V71-1
0 ATTEST:
16 City Clerk