1999-08-17 Council minutes1
Page No. 1
August 17, 1999
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Tuesday, August 17, 1999
Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota
Heights, Minnesota was held at 7:30 o'clock p.m. at City Hall, 1101 Victoria Curve, Mendota Heights,
Minnesota.
Mayor Mertensotto called the meeting to order at 7:30 o'clock P.M. The following members were
present: Mayor Mertensotto, Councilmembers Dwyer, Huber and Schneeman. Councilmember
Krebsbach had notified Council that she would be absent.
AGENDA ADOPTION Councilmember Schneeman moved adoption of the agenda for the
meeting.
Councilmember Dwyer seconded the motion.
Ayes: 4
Nays: 0
CONSENT CALENDAR Councilmember Dwyer moved approval of the consent calendar for
the meeting, along with authorization for execution of any necessary
documents contained therein.
a. Acknowledgment of the unapproved minutes and agenda for the
July 7 NDC4 full Commission meeting.
b. Acknowledgment of the Fire Department monthly report for
July.
c. Acknowledgment of the Treasurer's monthly report for July.
d. Authorization to retain Mr. Walt Hartmann as a consultant to
address legislative mandates relating to TIF.
e. Authorization to participate in a joint bus stop sign program with
Metropolitan Transit, along with authorization for the Mayor to
execute a joint powers agreement and lobbying restriction
certificate.
f. Acknowledgment of bids for roof replacement at the Rogers
Lake Park and Valley Park shelters and award of the contract to
i Top Gun Roofing for its low bid of $5,300.
Page No. 2
August 17, 1999
g. Authorization for city staff to submit a comprehensive plan
amendment to the Metropolitan Council to amend the Augusta
Shores site to a residential designation in the city's
comprehensive plan.
h. Approval of the list of contractor licenses dated August 17, 1999.
i. Approval of the List of Claims dated August 17, 1999 and
totaling $262,583.72.
Councilmember Schneeman seconded the motion.
Ayes: 4
Nays: 0
INTRODUCTIONS Ms. Colette Jurek, Community Relations Manager for Northern
States Power introduced herself to the City Council and audience.
Ms. Jurek informed Council that she is replacing Mr. Pat Cline, who
has moved to a different area office, and that she will be the city's
contact person with respect to electric or gas concerns.
FREEWAY ROAD Council acknowledged a memo from Administrator Batchelder
MASTER PLAN regarding additional Freeway Road master plan services and the
scheduling of a Freeway Road master plan workshop.
Mayor Mertensotto stated that he does not think Council should
authorize architectural renderings until Council has met with Mr.
Fefercorn.
Administrator Batchelder responded that it is Mr. Fefercorn's intent
to have the next workshop before that service is started.
Councilmember Huber moved to authorize an extension to the
contract with Ross Fefercorn and his affiliates, to authorize
additional work to the extent of $19,095 plus reimbursement of up to
$2,000, and direct that Mr. Fefercorn hold up on the additional
expenditure for architectural renderings until authorized.
Councilmember Schneeman seconded the motion.
Ayes: 4
Nays: 0
Councilmember Dwyer moved to conduct a Freeway Road master
plan workshop at City Hall at 7:00 p.m. on September 14.
Councilmember Huber seconded the motion.
j Ayes:4
Nays: 0
Page No. 3
August 17, 1999
LEE EDUCATION CENTER Council acknowledged a memo from Assistant Hollister relative to
expiration of the one -year conditional use permit granted to the Lee
Education Center. Mr. James Lee, from Lee Education Center, and
Mr. John Streeter, from Paster Enterprises, were present for the
discussion.
Mayor Mertensotto stated that he understands that the negotiations
between Lee Education and Paster Enterprises has resulted in
agreement that Paster will install two additional bathrooms for the
education center.
Mr. Streeter confirmed that Paster Enterprises has undertaken the
responsibility to fulfill the requirement of having two bathrooms in
that area within sixty days. He also stated that he will apply for the
building permit tomorrow.
Councilmember Huber moved to extend the conditional use permit
for the Lee Education Center with the understanding that if the two
bathrooms are not installed within sixty days commencing on
August 18, the conditional use permit will automatically terminate.
Councilmember Schneeman seconded the motion.
Ayes: 4
1 Nays:0
BUDGET COMMENTS Council acknowledged receipt of the proposed city budget for the
year 2000, and a memo from Administrator Batchelder requesting
Council comments suggestions and requests.
Mayor Mertensotto stated that the preliminary levy does not need to
be adopted until the first meeting in September. He stated that
Council members should let Administrator Batchelder know if they
have any questions about the budget, and that Council members can
also ask questions of the department heads at the October 5 budget
hearing if they so desire.
Police Chief Johnson responded to questions from Council about the
proposed increase in the police department budget and about the
proposed Mutual Aid Assistance Group add -level item.
MAYFLOWER DISTRIBUTION Council acknowledged a memo from Assistant Hollister regarding
continued discussion on an application for building permit from
Mayflower Distribution Company for construction of an
office /warehouse structure on a parcel of land located on Medallion
Drive. Council also acknowledged a letter from Benson -Orth
Associates, the project general contractor, for TIF assistance for the
Page No. 4
August 17, 1999
project along with a report from the City Planner and copies of
grading, utility, landscape, site and floor plans and exterior
elevations. The following individuals were present on behalf of
Mayflower: Mr. Bernard Herman, project architect, Mike Munson,
project contractor, and Marry, Joe and Karen Milavety, owners of
Mayflower.
Mayor Mertensotto asked why the submitted plans show
"Mayflower Distributing Co. for United Properties."
Mr. Herman responded that the company was originally working
with United Properties on the same building, and the civil engineer
who drew the original plan also drew the current plan and apparently
left the original title block in error. He informed Council that the
title block will be corrected on the set of plans that are submitted for
permits.
Mayor Mertensotto asked if the applicants are aware of recent
changes in the TIF legislation that require the city to hold a public
hearing to establish guidelines for tax increment criteria.
Administrator Batchelder informed Council that United Properties
approached city staff with a proposal for Mayflower with tax
increment last year for construction on a site in the industrial park
but they never came back. Mayflower presented a request for
building permit to Council about a month ago, at which time Council
asked for additional detail on the site plan, etc. In the meantime, the
developer approached staff about raising the tax increment issue
again. He stated that the developer had been previously instructed
that the proper approach was to have a preliminary meeting with
Council to discuss TIF before coming in for a building permit, but
the applicants are before Council tonight to present the revised site
plan and building permit request and the added TIF request.
Councilmember Dwyer stated that the legislature has thrown cities
another curve, and that in order for Council to consider TIF, it must
first conduct a hearing to establish the TIF guidelines.
Mayor Mertensotto informed the applicants that if they are trying to
in & a�joirit request to get a project approved and TIF assistance,
there is no way Council can move on TIF until guidelines have been
adopted. He stated that Council has authorized retention of a TIF
consultant to develop proposed criteria that will be needed in order
to meet the statutory requirements. He informed the applicants that
council cannot prejudge what the criteria will be or what will
Page No. 5
August 17, 1999
happen; and if the applicants want to proceed tonight, they will do so
wi&ut'TIF contribution. He stated that Council must follow the
statutory procedure.
Mr. Herman asked if the approval of the project on a planning basis
precludes TIF at some subsequent date.
Mayor Mertensotto responded that he does not know what criteria
will be adopted by Council to determine whether an application
meets the requirements for TIF contribution. He pointed out that all
buildings must be finished on all sides, and in this case there is also
concern about what will face the west, towards Bourne Avenue. He
explained. that the properties along Bourne will be open for
development in the future and Council is looking towards an office
complex in that area. Resurrection is also discussing selling off
some of its property along T.H. 55 for development and Council has
told them the city would work with them on coordinating future
development of the city's landfill site with Resurrection's plans for
an office complex on its excess land. Council is concerned about the
appearance of this building to the west, and it might be to the city's
benefit to take into account from a TIF standpoint whatever the
owners do in terms of landscaping and dressing up the site,
particularly as it is viewed from the west.
Mr. Herman responded that he thinks the applicant should proceed
on the project's own merits and let the TIF process be separate.
4
Mayor Mertensotto responded that he would think. if Council had the
criteria for TIF established first, it would be to the applicant's
benefit.
Councilmember Dwyer stated that city staff has informed Council
that it will probably be three months before the TIF criteria is
established.
Mr. Herman responded that the owner is proceeding with the idea of
a fall construction start.
Councilmember Dwyer stated that when the applicants first came to
Council a month ago, they had a plan showing future expansion but
said at the meeting that they did not want to delay the expansion but
rather wanted to do the expansion now. Council's position was that
it did not want to move on anything not before Council and that it
wanted a full plan.
Page No. 6
August 17, 1999
Mr. Herman responded that he had presented a plan with a dashed
Brie for the' expansion area and was told by Council that Council
would not take action without seeing a complete plan. Also, Council
listed a number of other issues that needed to be addressed. Those
issues were: submission of exterior elevations showing how the
building would look with the expansion and addition of architectural
detail to relieve the expanse of the building; specific location of the
trash enclosures and what they would look like; drawings showing
rooftop heating and air conditioning units and how they would be
screened from Medallion Drive; green space calculation; and,
enhancement of landscaping, particularly towards Medallion Drive.
He informed Council that all of those issues have been addressed.
The primary element of the exhibit was the exterior of the building
which has. been modified to show the expansion.
Mr. Herman reviewed the architectural renderings, stating that the
exterior of the office area will be rock face block with solar bronze
glass, an aluminum band and canopy. The expansion area element
will be similar to the office element, but only projects out about
eight inches, and will have the same materials as the office area with
a smaller canopy. He stated that he created two layers of
landscaping, which is an enhancement from the original proposal.
Also, most of the building's exposure faces the bus garage, and the
building will be seen at an angle by the public rather than the full
elevation. Responding to a question from Mayor Mertensotto, Mr.
Herman stated that the building will have seven docks and one drive
in door:
Mayor Mertensotto stated expressed his concern about the
appearance of the structure from the Bourne side of the building.
Mr. Herman responded that the loading docks are recessed well into
the building, which is a significant in screening the docks and the
trucks.
Mayor Mertensotto suggested that tall evergreen trees could be used
for screening as well. He informed Mr. Herman that the city set a
precedent for granting TIF assistance when it gave TIF assistance to
Mendakota Country Club because Council asked the Club to "step"
its maintenance building to break it up. The maintenance building
and site landscaping turned out to be very nice.
Mr. Herman responded that he would ask council to look at the
landscaping plan carefully. He stated that it far exceeds the
- minimum requirements for landscaping. The plan has been much
Page No. 7
August 17, 1999
enhanced, with a heavy buffer of landscaping between Medallion
drive and the parking area, etc.
Responding to a Council question, Mr. Marty Milavety stated that he
anticipates there will be five to six semi trucks coming and going
each day making deliveries and that all of his products are shipped
out by UPS.
Mayor Mertensotto stated that if Council is really concerned about
helping the applicants provide enhanced landscaping, Council would
certainly want a landscaping consultant to look at the plan and give
advice to the city.
Councilmember Huber asked if there are any items on the TIF list
that Treasurer Shaughnessy is concerned about not qualifying in
terms of what the city has done in the past.
Treasurer Shaughnessy responded that they are pretty much all the
same. He stated that he has not done a computation of figures yet
because everything has been put on hold after the new TIF law was
adopted.
Councilmember Dwyer stated that all the law is asking is that cities
put down in writing what will comply
Councilmember Schneeman noted that the law has other mandates as
well in terms of job creation, etc.
Mayor Mertensotto informed Mr. Milavety that he would also have
to sign a TIF developers agreement and he could not receive TIF and
then sell the building to gain a profit. If sale occurred, the TIF
agreement would be voided.
Councilmember Dwyer stated that the owners are residents of
Mendota Heights and currently have their operation in Eagan.
Councilmember Huber stated that the difficult thing is to try to
figure out how to dress up the west side when Council does not
know what the TIF criteria will be.
Mr. Munson responded that the intention was to come in and ask for
approval on the project and then come back and work with Council
and the treasurer on the TIF package. He stated that it has never
been the intention to have the TIF process run simultaneously with
the project and the TIF could come three months from now.
Page No. 8
August 17, 1999
Mayor Mertensotto stated that the city's history has been that when
Council approves a project it also considers the TIF. He informed
the applicants that there is no guarantee TIF will be granted.
Councilmember Huber stated that there is no doubt the law would
grandfather in a project that has already been considered.
Mayor Mertensotto stated that what the applicants are looking for is
a public contribution towards their project. Council would only do
that to enhance the development for the community, which is the
purpose of TIF.
Mr. Munson stated that Mayflower needs to be in its building by
March and'they are willing to go ahead with the building now
without TIF. If the issue is trees for the back side, Mayflower would
do that to get approval.
Mayor Mertensotto stated that the city has many options with TIF,
including pay -as- you -go, cash up front, etc.
Mr. Munson responded that the applicants are just asking tonight
that Council approve or deny the application as stated and that they
would be willing to work with the city on trees, recognizing that
when the TIF application is made, they may not get anything.
Mr. Joe Milavety asked if the applicants can come back and re-
prese fihe application and enhance the building later to get TIF.
Councilmember Dwyer responded that the applicants must
understand that they are speculating and may not receive any TIF.
Mayor Mertensotto reiterated that his main concern is dressing up
the building from the west side.
Councilmember Dwyer suggested doubling the number of trees to
the west - and using pine trees instead of green ash trees.
Councilmember Schneeman asked if it would add enormous expense
to put the.same materials on the back of the building as are proposed
for the front.
Mr. Herman responded that buildings have functions and certain
functions have certain treatments. He asked what it means to dress
up the warehouse and stated that he thinks it means staying with the
basic fagade and enhancing it in some way. He noted that there is
Page No. 9
August 17, 1999
banding on, all four sides and that he thinks perhaps a little evergreen
planting on the west side to further screen the loading docks would
be an enhancement. He noted that this design was approved last year
for the United Properties site.
Councilmember Dwyer stated that staff identified the building
parking setback and rooftop unit screening as issues needing to be
addressed.
Mr. Herman responded that the building will be moved one foot,
eight inches to achieve the required 10 foot setback. The rooftop
units on the office section are screened by the parapet. On the
warehouse, the units are in the center of the building and will not be
seen but they will be screened by anodized aluminum panels.
Councilmember Huber asked if Mayflower can do some berming or
something like varying the landscaping, etc., to break up the expanse
of the building.
Mr. Herman responded that it would be very easy to create some
berming additions on the west side if there is fill available.
j Councilmember Dwyer stated that he wants to underscore the
applicant is taking a gamble that there may or may not be $260,000
in TIF money available in the future, but he has a timetable to meet.
This is a big office /warehouse, and some of the things that have been
discussed'in terms of changing landscaping and adding berming
would go a long way to break up the west wall.
Mr. Herman responded that the landscaping plan that has been
submitted is appropriate for a TIF program. The landscaping that he
would normally do would not be this extensive, and he hopes that
Council will consider the landscaping that has already been provided
because it far exceeds ordinance requirements.
Mayor Mertensotto stated that Council could grant a foundation
permit to allow construction to start and during that period of time,
permit staff to review the drainage and erosion control for the project
and the applicants could look at what they could do to enhance the
building. He stated that the applicants will be asking Council for
TIF consideration and maybe there are some things the applicants
can do on second thought to enhance the project. A foundation
permit would set the footprint for the building, and the applicants
can come back with modifications, including berming, etc.
Page No. 10
August 17, 1999
Mr: Herman responded that Mayflower would be staring
construction on a project without knowing that Council will
ultimately approve it or that it will be approved the way it is planned.
He felt that Mayflower is better off just getting approval on the
merits of the project now and if TIF becomes available, they can go
through whatever process Council desires. He did not think the size
or shape of the building will change, but the landscaping and
treatment might change when TIF is discussed.
Mayor Mertensotto responded that Mr. Herman had said he could
leave the landscaping open. He asked what might be the options as
far as the exterior of the building.
Mr. Herman responded that he does not have any ideas at this time
but that he did not think changing the functional aspects of the
building would be appropriate.
Councilmember Dwyer moved to grant a building permit for the
application as presented this evening with the conditions that the
seven green ash trees proposed for the west elevation be replaced
with at least seven to ten eight to ten foot conifers to screen the
building from the west; that the building be shifted so that the
parking to building setback on the south side of the building meets
the required 10 foot setback; that grading, drainage and erosion
control plans be reviewed and approved by City Engineering; and,
that berming treatment is added to the western elevation to break up
the expanse of the building, with the understanding that there is no
guarantee that TIF assistance will be available.
Councilmember Huber seconded the motion.
Mayor Mertensotto stated that he has a problem with the exterior
treatment of the building, particularly the blue band. He did not
think that color banding does anything for the building and stated
that he would prefer an earth tone. He stated if the blue banding is
cast in concrete he will vote against the motion.
VOTE ON MOTION:
Ayes: 3
Nays: 1 Mertensotto
1998 AUDIT Mr. Steve Laible, from KPMG, Peat Marwick, was present to review
the 1998 City Audit and Financial Statements to Council and the
audience. Mr. Laible responded to Council questions and also
explained the new GASB Rule 34 which will impact city accounting
and reporting requirements.
Page No. 11
August 17, 1999
ADJOURN There being no further business to come before Council,
Councilmember Schneeman moved that the meeting be adjourned to
7:00 p.m. on Tuesday, September 6, 1999 for the purpose of
conducting Airport Commission candidate interviews..
Councilmember Huber seconded the motion.
Ayes: 4
Nays: 0
TIME OF ADJOURNMENT: 9:54 p.m.
Kathleen M. Swanson
City Clerk
ATTEST:
A'-0'0 Z�—' a1'4=:2x
Charles E. Mertensotto
Mayor