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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