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1999-10-05 Council minutesPage No. 1 October 5, 1999 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, October 5, 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, Krebsbach and Schneeman. AGENDA ADOPTION Councilmember Dwyer of moved adoption of the revised agenda for the meeting. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Schneeman moved approval of the consent calendar for the meeting, along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the minutes of the September 28, 1999 Planning Commission meeting. b. Acknowledgment of the August, 1999 Fire Department report. c. Acknowledgment of the August, 1999 Code Enforcement report. d. Authorization for the Fire Department to conduct the Annual Halloween Bonfire along with authorization to expend up to $600 for hot dogs and refreshments. e. Authorization for the Code Enforcement Officer to issue sign permits for two signs to Attracta Sign for without Sportsman's Guide at 2360 Pilot Knob Road. f. Adoption of Resolution Number 99 -66, "A RESOLUTION ACCEPTING WORK AND APPROVING THE FINAL PAYMENT FOR BROWN INSTITUTE." Page No. 2 October 5, 1999 g. Adoption of Resolution No. 99 -67, "A RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED HOUSING FACILITIES PROJECT AND THE PROPOSED ISSUANCE THEREFORE OF REVENUE BONDS BY THE CITY OF MENDOTA HEIGHTS, MINNESOTA," acknowledging that Mendota Heights will be the lead conduit for the project. h. Acknowledgment as a first reading, of proposed Ordinance No. 334, "AN ORDINANCE RELATING TO AND REGULATING THE MAINTENANCE OF ON -SITE IMDIVIDUAL SEWAGE TREATMENT SYSTEMS (ISTS)," with direction to staff to notify any residents who would be impacted by the proposed ordinance and to place the proposed ordinance on the November 2 agenda. i. Approval of the list of contractor licenses dated October 5, 1999. j. Approval of the List of Claims dated October 5, 1999 and totaling $382,069.54. k. Acknowledgment of NDC 4 unapproved minutes and agenda from the September 1, 1999 full commission meeting. 1. Acceptance of letters of resignation from Sergeant Larrie Mack, effective on October 31, 1999 and from Patrol Officer Michael Thompson, effective October 22, 1999, and authorization for the department to begin the recruitment process to fill to patrol officer positions. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 PUBLIC COMMENTS Mr. Tom Norman asked if Council will take audience comments regarding the proposed Mendota Heights town center concept. Mayor Mertensotto responded that people will be given the opportunity to speak. He explained that the city must adopt Comprehensive Plan Amendment by December 31, 1999. The Plan will control zoning in the city, and public hearings will be conducted before it is adopted. He informed the audience that another thing that has changed Council's entire planning schedule in regard to the northeast quadrant of Dodd Road and Highway 110 is that Council just learned that the city's TIF district, which was founded in 1981, will be terminated on December 31, to the extent that funds are not Page No. 3 October 5, 1999 encumbered. The City Council had planned to use TIF for the redevelopment of unused MnDot right -of -way along with two acres of city -owned property. He stated that Council has taken a look at all this over the past eight to nine months in workshops and hired a consulting team that came up with a suggested development plan after Council gave them guidelines. He stated that the potential development of about 22 acres would include some commercial operations that cater to neighborhoods and a senior facility and some townhouses. He further stated that he believes the consultants have developed a concept plan that Council can agree to but that Council now finds that the funding source is depleting. If the city can buy the properties that are needed, it can convert some of the unencumbered TIF funds into property as a seed to develop the corner. Councilmember Dwyer stated that there are apparently many people here this evening regarding this issue. He further stated that he watched the Planning Commission meeting last week in the Commission invited to the landowners to appear this evening for presentation and comments. FIRE AWARDS Fire Marshal Paul Kaiser was present to recognize several companies for fire safety. The following firms were recognized for consistently and conscientiously emphasizing the importance of fire safety in the workplace: A.R.R.T.; L.C.S. Metal Stamping; Applied Coating Technology; Associated Bureaus; Big Wheel Rossi; Center for Diagnostic Imaging; Ecolab; General Pump; Mendakota Country Club; Minnesota Knitting Mills; Patterson Dental Supply; Somerset Country Club; Specialty Equipment; and, Tempco Manufacturing. B.D.S. was acknowledged for its work in creating a fire safe atmosphere. FIRE PREVENTION Fire Chief Maczko was present to announce that the annual Fire Prevention Open House will be held on Saturday, October 9 and the annual Firefighter Dance will be held on October 23. Chief Maczko informed the audience that the area behind the Mendota Plaza will be posted as a no- dumping area until October 15, and that after that date residents will be allowed to dump branches at the site of the Halloween Bonfire. Mayor Mertensotto pointed out that any dumping before October 15 or dumping of inappropriate materials will receive citations. HEARING: ST. THOMAS Mayor Mertensotto opened the meeting for the purpose of a public Page No. 4 October 5, 1999 ACADEMY REVENUE FUNDS hearing on a request from St. Thomas Academy for Revenue Bond financing for proposed improvements. Council acknowledged a memo from Treasurer Shaughnessy and correspondence from St. Thomas Academy and its consultants regarding the financing request. Council also acknowledged a memo from Assistant Hollister relative to a request from St. Thomas Academy for building permit approval and an extension for installation of a sprinkling system in the existing St. Thomas facilities. Headmaster John Greving was present for the discussion. Mr. Greving reviewed the site plan and showed sketches of the new building. He informed Council that the school improvements include expansion of student parking lot and renovation of the existing the school into a technical center, library and media center. Responding to a question from Mayor Mertensotto, Mr. Greving stated that the north campus at St. Thomas consists of 75 acres of land on the north side of Mendota Heights Road. He informed Council that no variances are required or requested for the project. Councilmember Krebsbach stated that it seems that the school will be moving the traffic and it will circulate throughout the campus without adding traffic to Lake Drive. Mr. Greving responded that traffic will move to and from Mendota Heights Road and away from Lake Drive. An additional 170 parking spots will be added. He informed Council that the plan includes comprehensive landscaping of the campus, including along Lake Drive and Mendota Heights Road. Mayor Mertensotto stated that he thinks the city needs to widen Lake Drive. Lake Drive is included in the street reconstruction program for next year, and he felt that it should be widened to standard urban street section construction. Also, the intersection of Lake Drive and Mendota Heights Road should be the width of a street. He felt that the widening of the intersection should be part of the overall redevelopment. Mr. Greving informed Council that the total existing square footage of facilities on the campus is 124,000 square feet. The new middle school construction will bring the total square footage to 159,000 square feet. He stated that St. Thomas Academy is also asking for a waiver for the sprinkling of the existing buildings for one year. He stated that St. Thomas will be fully sprinkled by the fall of 2001. The new middle school should be occupied by August 2000, and St. Thomas would like an extension on sprinkling the existing facilities for one year after occupation of the building. Page No. 5 October 5, 1999 Councilmember Dwyer stated that he assumes that St. Thomas will make sure that this addition to the campus will fit and look as nice as the existing campus. Public Works Director Danielson informed Council that staff has reviewed grading and drainage plans with St. Thomas representatives. Mayor Mertensotto suggested that there should be a condition that the storm water drainage system for the overall facility after construction meets with the approval of the city engineering staff. Councilmember Dwyer pointed out that precedent has been set for the sprinkling system extension, as Council recently approved a similar quote request from Royal Redeemer Church. Mayor Mertensotto stated that like the other extension granted, St. Thomas Academy must agree that is going to put in the fire suppression system within a specified time, and if that is not done, Council will take the school to court to mandate installation of the fire suppression system, because the fire suppression system is a Code issue. Mr. Greving stated that St. Thomas Academy is looking for financing and is requesting the city to issue $9.5 million maximum in industrial revenue bonding so that the school can finance the project presented to Council this evening. Responding to a question from Mayor Mertensotto, Mr. Greving stated that St. Thomas will provide the city with a letter of credit in favor of the city. Mayor Mertensotto stated that the letter from Dorsey, Whitney indicates that they are the bond counsel. He informed Mr. Greving that over the years, the City has been using Briggs and Morgan as bond counsel. He further stated that in this particular case, the city reserves the right to use the bond counsel the city has been using in the past. Mr. Richard Miller, Norwest Public Financing, stated that because the city is not liable for the bonds, the bonds are backed with a letter of credit from Allied Irish Bank, and are underwritten by Norwest. He stated that it is traditional in most cities that the borrower secures the financing group, including the bond counsel. He stated that if Council makes an exception, St. Thomas would consider Council's Page No. 6 October 5, 1999 wishes, but it is very unusual for the applicant not be allowed to choose bond counsel. Councilmember Dwyer stated that it has been represented that the city will not have any liability. The city would be liable in that if St. Thomas were in default, the city would have a bad image. Mr. Miller responded that St. Thomas bears the obligation, and is underwritten by Allied Irish Bank, and they are responsible for making timely payment. Mayor Mertensotto responded that over the years Briggs and Morgan has given the city good service, and he wondered why a different firm would be used rather than the firm the city has been dealing with for many years. Mr. Miller responded that the city's attorney will review the documents and protect the city interests. He stated that St. Thomas asked if it could use its own counsel and was told that this would not be unusual. He further stated that the financial quotation St. Thomas received from Dorsey and Whitney was the lowest quote. Councilmember Dwyer stated that Council has a certain confidence level with the company that has acted as bond counsel for 30 years. Dorsey and Whitney was also in the local papers throughout the summer with an ad threatening litigation if people hit balls off a local golf course. He questioned whether that same company that is going to look after the city's interests. Mayor Mertensotto informed Mr. Miller that if Council is to be the issuing authority, it has the right to say who the bond counsel can be. Councilmember Krebsbach stated that she sees no reason for Council to change its stance if Briggs and Morgan has been the city's bond counsel in the past. Treasurer Shaughnessy stated that in the past, all of the industrial revenue bonds have been issued under the counsel of the underwriters. Councilmember Dwyer stated that as he reads the documents (with respect to the representation from Dorsey Whitney that this would not expose the city to anything), there are no undertakings by St. Thomas Academy, Dorsey Whitney, or anyone in the event someone were to sue the city under the First Amendment for the issuance of bonds on behalf of a non - profit organization. Page No. 7 October 5, 1999 Mr. Pat Rebarchek, from Dorsey & Whitney, responded that his firm has had a number of attorneys look at the First Amendment issue and they have reviewed the underlying facts and do not believe there is an issue. Councilmember Dwyer asked who will pay the city's attorney fees if someone sues the city. Mr. Rebarchek responded that he does not know but that he will talk to people about the issue. Councilmember Dwyer stated that he does not know that cities often extend their good name in order to issue bonds for a religious institution. Mr. Greving responded That St. Paul Academy, Blake Academy, and the new southwest parochial high school have all had bond issues authorized by the cities in which they are located and there has never been a challenge. Councilmember Krebsbach stated that it is important that it be clear that first and foremost this is an educational institution. Mayor Mertensotto stated that if Council can be shown that there has been a bidding process and Dorsey Whitney is the lowest, Council would consider that. Mr. Tom Dolphin, Chairman of the St. Thomas board, stated that the board did have Dorsey work with city staff and clear this issue, but if Council wants to use Briggs and Morgan, the school will do that. Mayor Mertensotto responded that he would like city staff to research what the city practice has been in the past regarding fees to the city for industrial revenue bonds, and to that extent, the school can reserve the right to ask for a waiver or reduction in the fee for issuance. Councilmember Dwyer stated pointed out that the issuance fee could amount to $28,000. He asked why the application refers to $2.5 million for land acquisition. Mr. Greving responded that St. Thomas borrowed to purchase the land south of Mendota Heights Road, and this bond issue would help Page No. 8 October 5, 1999 St. Thomas cover that obligation. The bond request includes the financing St. Thomas already has for that property. Mayor Mertensotto directed staff to prepare a report on past practice regarding reduction/waiver of issuance fees. He stated that St. Thomas can reserve the right to request reduction or waiver. He pointed out that three members of Council and indicated that they would prefer Briggs and Morgan as bond counsel. He stated that Council can approve issuance of a building permit this evening and give conceptual approval on the financing request, subject to submission of a resolution by bond counsel in two weeks. Saint Thomas could come back for a waiver after the issuance amount is no and the issuance fee has been determined. He stated that Council will ask city staff to provide a history on what has been done with regard to issuance fees in the past. Councilmember Huber moved to authorize issuance of a building permit subject to submission and city staff approval of all a landscaping and storm water drainage and grading plans for the complete facility. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 With respect to the granting of an extension for complete facility sprinkling until one year after issuance of the certificate of occupancy for the middle school, Mayor Mertensotto stated that the city has an agreement with another institution, and would require a like agreement from St. Thomas. Councilmember Dwyer moved to authorize an extension for the installation of a sprinkling system in the existing St. Thomas facilities conditioned upon the execution and submission of an agreement by St. Thomas which commits the Academy to bringing the entire facility up to code by August 31, 2001 and which stipulates that St. Thomas will pay all legal fees and other fees incurred by the city should St. Thomas not comply with the terms of the agreement. Councilmember Huber seconded the motion. Ayes: 5 Nays: 0 Councilmember Krebsbach moved to grant conceptual approval of the application for funding under the Minnesota Municipal Development Act, with formal approval of the enabling resolution to occur on October 19. Councilmember Schneeman seconded the motion. VOTE ON MOTION: Ayes: 5 Nays: 0 Page No. 9 October 5, 1999 It was the consensus Councilmember Dwyer stated that he wants indemnity language in the agreement or a hold harmless agreement and that Council wants Briggs and Morgan to draft the preliminary resolution. He asked when Council will decide about waiver of the issuance fees. Mayor Mertensotto responded that the issuance fee will not be known until the bonds are sold. He directed the City Attorney will review the documents on behalf of the city and stated that if the City Attorney feels there should be a hold harmless agreement, Council will require it. Councilmember Krebsbach pointed out that the motion is silent on the fee and silent on St. Thomas being a religious facility. She stated that she sees St. Thomas as a school and as a non - profit. She further stated that it is the understanding this evening that St. Thomas agrees to use Briggs & Morgan. Mayor Mertensotto stated that St. Thomas Academy must understand that Council has taken no position with respect to waiver or reduction of the bond issuance fee. Acting City Attorney Jim Dierking stated that it is possible that the issue has been addressed by Roger Gordon, of Winthrop and Weinstein. He stated that he would like to discuss the indemnification with Mr. Gordon and respond back to Council in two weeks. Mayor Mertensotto stated that Council is only taking action on the concept tonight because Council does not have a formal resolution to consider. Two weeks from tonight Council will adopt a preliminary resolution. He stated that the question from Councilmember Huber stated that whether there should be a hold harmless agreement in the event there is a lawsuit will be addressed by the City Attorney. The waiver on sprinkling system installation and the reduction in the bond issuance fee are still outstanding. It was noted that the public hearing will remain open to October 19. HEARING: TAX RATE Mayor Mertensotto opened the meeting for the purpose of a public Page No. 10 October 5, 1999 INCREASE hearing on a proposed tax rate increase for the 1999 Tax Levy collectible in 2000. Mayor Mertensotto informed the audience that if Council increases the city's tax rate more than 5% over the prior year, Council must conduct a public hearing. Mayor Mertensotto asked for questions and comments from the audience. There being no questions or comments, Councilmember Huber moved to close the public hearing. Councilmember Dwyer seconded the motion. Ayes: 5 Nays: 0 Councilmember Dwyer moved adoption of Resolution No. 99 -68, "RESOLTUION AUTHORIZING A TAX RATE INCREASE FOR THE 1999 TAX LEVY COLLECTIBLE IN 2000." Councilmember Huber seconded the motion. Ayes: 5 Nays: 0 HEARING: CHERRY HILLS Mayor Mertensotto opened the meeting for the purpose of a public STREET RECONSTRUCTION hearing on the proposed assessment roll for Cherry Hill Addition ASSESSMENTS street reconstruction and driveway improvements. Council acknowledged a memo from Engineer Marc Mogan and a letter from Mr. & Mrs. Larry Carpenter, 1440 Farmdale Road, objecting to the driveway portion of their assessment because their measurement indicated that the concrete depth is 4" rather than the 6" depth required in the contract. Councilmember Huber stated that he has spoken to Mr. Carpenter, who has also been in contact with city staff. He stated that the Carpenters are preserving their right to appeal their assessment. He informed Council that he was walking by the Carpenter home when the driveway was being poured and he did not think it is 6 ". Mayor Mertensotto asked whether there was any difference between this driveway and any others. He stated that the city should not be quoting a 6" driveway depth. He stated that if Mr. Carpenter gives Council cause, Council can adjust the assessment roll before the assessments are certified. Mayor Mertensotto asked for questions and comments from the audience. Page No. 11 October 5, 1999 Mr. Gary Sutton, 762 Lower Colonial Drive, stated that he was hoping there would be some other type of payment than payment over 19 years or full payment within 30 days. Mayor Mertensotto informed Mr. Sutton and the audience that 19 years is the maximum payment period, but the assessment can be paid to the Dakota County Treasurer in full at any time property owners would like. He explained that a full year's interest is payable for a partial year. There being no fiu Cher questions or comments, Councilmember Schneeman moved to close the hearing. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 Councilmember Schneeman moved adoption of Resolution No. 99- 69, "RESOLUTION ADOPTING AND CONFIRMING ASSESSMENTS FOR THE CHERRRY HILL ADDITION AND SURROUNDING AREAS STREET RECONSTRUCTON PROJECT (JOB NO. 9714, IMPROVEMENT NO. 99, PROJECT No. 1." Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 HEARING: GLEN TORO Mayor Mertensotto opened the meeting for the purpose of a public ASSESSMENT ROLL hearing on proposed assessments for public improvements to serve the Glen Toro Second Addition. Council acknowledged a memo from Engineer Mogan along with the proposed assessment roll. Mayor Mertensotto asked for questions and comments from the audience. Mr. Dewey Thorbeck, 2121 Delaware Avenue, the architect and developer of the Glen Toro Second Addition, stated that he was present to publicly thank the city's staff for the work they have done. Also, he asked if the final date for full payment without interest could be changed to December 4 from November 4. Mayor Mertensotto responded that the city's practice is to only allow a thirty day payment period prior to certification. There being no fiirther questions or comments, Councilmember Dwyer moved to close the public hearing. Page No. 12 October 5, 1999 Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 Councilmember Huber moved adoption of Resolution No. 99 -70, "RESOLUTION ADOPTING AND CONFIRMING ASSESSMENTS FOR THE GLEN TORO SECOND ADDITION SITE IMPROVEMENT PROJECT (JOB NO. 9808, IMPROVEMENT NO. 98, PROJECT NO. 3)." Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 MENDOTA HEIGHTS TOWN Council acknowledged a memo from Administrator Batchelder CENTER UPDATE regarding authorization for submission of an application to the Metropolitan Council for a Livable Communities Demonstration Grant to assist the city with construction of site amenities for the Town Center concept. Council also acknowledged a letter from Dr. Ernest Hinson, Mendakota Animal Hospital, regarding the Town Center concept. Mayor Mertensotto informed the audience that the MnDot portion of the site has been off of the tax rolls since the early 1950's, and that MnDot has taken the alignment of T.H. 149 off of its public improvement project list. The city has the first option to utilize the property for roadway purposes, and Council has come to the conclusion that it would be totally inappropriate to even consider realigning the TH 110 /149 intersection because of costs. Mayor Mertensotto accepted questions and comments from the audience. Mr. Tom Norman expressed neighborhood concerns and questions about the concept including the following. Why does the area need to be redeveloped? It would be a good idea for the existing businesses to upgrade, but the undeveloped area is overgrown with trees that have been on the property for many years. If redevelopment is, it should be worked around the environment. Instead of a densely populated redevelopment, it would be nice to have a recreational area in this part of the city. The development concept with 147 living units on seven areas is too dense and there is not enough room for parking or for fire trucks. The residents object to the footprint of the building. A three story senior housing facility proposed along Freeway Road means that the residents will be looking out their windows at a three story building. The residents Page No. 13 October 5, 1999 would like to have an opportunity for input and ask how this is going to proceed. Mayor Mertensotto informed the audience that the seven acre reference is misleading: the total project area is 22 acres. At this time, the proposal is a concept plan and engineering drawings have not been done. Council must determine what the tax capacity will be on the development, and until the land is in single ownership, there is no way there could be a semblance of a development. Ms. Mary Krueser stated that the home she has lived in on South Freeway Road for one and one -half years is two houses away from the development. She agreed the vacant land should be developed but does not like the plan. When she moved here, she asked what was going to happen to this area and was told the city was planning various things but there was nothing formal. She stated that she was also told she would be notified well in advance but was not. The three story senior housing building is in the wrong spot. If there is going to be a commercial component, it should be along Dodd, but she did not think another commercial area is needed when there is already one at the intersection. She would prefer single family rather than townhouses and commercial uses - townhouses along Dodd and single family homes along Freeway Road would be better. Mayor Mertensotto responded that generally the commercial uses have been limited and some commercial is necessary in order to make the project viable. Council does not want a strip mall design but rather wants something that is unique, which was Council's direction to the city's consultant. Single family will not support the acquisition cost in a rehabilitation project. Councilmember Dwyer informed the audience that nothing has happened, that everything is just on the blackboard and any redevelopment is very far away. Councilmember Huber stated that Council has a deadline for use of TIF funds for acquisition but that is not a deadline on development. The concept plan has taken a lot of work to this point but there will still be a lot of time for public comment. Council could not take public comments until all of the Council could come to a concept. Council only learned about the restriction on spending of TIF funds in the last 30 days. Page No. 14 October 5, 1999 Mayor Mertensotto stated that this is a concept, not a "done deal." All Council knows is that TIF must be used by December 31 or it will be lost. Councilmember Dwyer stated that the city has a representative form of government and if people write letters to Council, Council will read and consider them. Councilmember Krebsbach stated that the city's consultants have prepared a design that really serves existing traffic and the scale is not particularly large. Council does not want a regional commercial area, and the plan is based on bicycle and pedestrian traffic. Council retained consultants to develop a concept and then Council worked on it. Councilmember Schneeman stated that when she was a member of the Parks and Recreation Commission 20 years ago, the Council and Commissions were always talking about redevelopment of the intersection, "downtown Mendota Heights." Ms. Michelle Melges stated that many neighbors feel strongly that the problem with the concept is what is going to go there and would like the opportunity to give input. Ms. Shirley Hinsen stated that she and her husband own the animal hospital and that she was also hoping to be reassured this evening. Her understanding is that there is a need for the city to move as quickly as possible to acquire the properties involved. Mayor Mertensotto responded that Council cannot give any assurance but will make every effort to acquire the properties. The city will have property appraisals done and will see if purchases can be negotiated. Ms. Hinsen stated that she is concerned that Council is failing to consider her position and has not made any effort to contact her and her husband to even begin dialogue. When they purchased their property, they contacted the city to see if anything was going to be done in the area. What they heard at the Planning Commission meeting last week is that the city wants to do something that is "neighborhood friendly." She did not understand what conflict the animal hospital has with the neighborhood. Mayor Mertensotto responded that Council must consider what is in the best interest of the city and must take the lead in planning for Page No. 15 October 5, 1999 development of the area. He asked if the Hinsens bought their property without knowledge of any development. Ms. Hinsen responded that they had some knowledge of development but their idea was that development would not impact the animal hospital building. She stated that they would like the city to be considerate of them in that they are commercial residents of the city and need consideration. Mayor Mertensotto responded that there is no better time to get involved in the dialogue. Councilmember Huber stated that Council developed a concept plan for people to react to and this evening is where the dialogue starts with the neighbors. Council felt that it should put forward a plan that it felt would be acceptable to the neighborhood and has presented the concept for neighborhood reaction and feedback. It is envisioned several public hearings will be conducted to get public comments. Administrator Batchelder stated that the original contract that the city signed with the design team in January includes several hours dedicated to conduct public open houses after Council put together a concept. The concept plan was done on August 24, and at that same meeting the city acknowledged a letter from Briggs and Morgan, the city's bond counsel, about the TIF issue. Subsequent to that meeting, he sent a letter to all of the owners of the property proposed to be redeveloped and it is fully Council's intention to hold open houses followed by more public hearings at the Planning Commission and City Council to give residents an opportunity to comment and have a dialogue with Council and the commission. The Council workshops on the concept plan were open to the public and their dates and times were announced at every regular City Council meeting that preceded a workshop. Mayor Mertensotto informed the audience that everyone is welcome to give Council their comments. He stated that the only thing the city is under pressure on is the purchase of the properties by December 31. Councilmember Krebsbach stated that the city has been talking about this area for two years. Council met with the Planning Commission about two years ago and residents came to that meeting. What really started to move things along was the recent notice about TIF. It was her feeling that existing businesses that are not gas stations could Page No. 16 October 5, 1999 move into the commercial component but did not know whether the animal hospital would fit in. Ms. Hinson responded that the animal hospital is a 9,400 square foot facility and would pretty much take up about one -third of the commercial space that is being proposed at this time. Mayor Mertensotto responded that the animal hospital represents a special case and Council will certainly be in contact with the Hinsens on a one to one basis. He stated that Council understands the Hinsens' concerns. Mr. Phil Golden asked what impact TIF has and what percentage of the total project TIF would represent. He also asked why nothing is being done with the highway intersection. Treasurer Shaughnessy responded that the city's TIF district included $2.5 million for this area. Mayor Mertensotto stated that the ability to use TIF will make or break the redevelopment. With respect to the intersection, Mayor Mertensotto stated that the turn lanes recently installed by MnDot, along with the pedway along Dodd have been an improvement. Councilmember Huber stated that MnDot has informed the city that it does not foresee any need for upgrading at the intersection and if the city wants to do something, the city must pay for it. Ms. Joan Cochrane stated that Council's decision will impact her life. She heard about the plan a month ago and called the city because she was concerned about traffic. The person she spoke to never mentioned anything about a workshop. She felt that staff should have mentioned that workshops were going on and expressed disappointment with the lack of attempt to contact the residents. She felt that the parking situation in the plan will be extremely tight considering the number of units and the size of the property. Also, she felt that underground garages would have problems because of the number of underground springs in the area. She was not opposed to development of the property but was opposed to the density. She also felt that it would be proper to leave the animal hospital. Also, "t -ing" the roads into Dodd at Hilltop and at Ridge will be dangerous — it is already dangerous to get onto Dodd to go northbound from Hilltop and Ridge. Page No. 17 October 5, 1999 Councilmember Huber informed the audience that Council discussed the impact of development on the neighbors on Dodd and one of the changes that was made was to break up the townhouse units so that they have more of a mirror image of what is across the road. The people around the development have been kept in mind. Councilmember Krebsbach stated that Council has always been concerned that a development fit in with the surround community. Responding to a question, Mayor Mertensotto stated that MnDot has an easement for roadway purposes. When MnDot is not using the land for roadway purposes, it sells the land, giving the original owners the right to buy it back at current value. If the city does not purchase the land, someone else will ultimately purchase it for development. Councilmember Huber pointed out that unless the city owns the land it cannot control development. Responding to a comment, he stated Council has always planned to hold public hearings after some type of concept was developed. Ms. Nancy Stroebel stated that she is a senior and would like to move into the seniors' facility, so she is excited about the concept, but asked if there is any reason it needs to be three stories rather than cottages. She also asked why the animal hospital must be removed. Mr. Brian Birch stated that he is the fee owner of one -third of the property and was notified two weeks ago about the Planning Commission meeting. He objected to the city being the developer and stated that he has attempted to acquire the land for years and has brought concepts to the city, including a senior facility. Mayor Mertensotto responded that if the property is not acquired by the end of the year, the city will lose $2.5 million in TIF. The city has the opportunity to make a significant investment in the redevelopment of this property, but all Council can do is acquire the land from willing sellers. If the city loses the money, all Council could do would be to establish a new district. If the property owners want to work with the city, the city will not lose the $2.5 million that has been pooled for redevelopment of this site. Mr. Birch stated that he is not totally opposed to the development and asked if he can be a part of the development. Page No. 18 October 5, 1999 Mayor Mertensotto responded that Mr. Birch could be a part of the development after a development has been proposed for the entire parcel. He stated that who develops the property is immaterial and that all Council is talking about is the type of development that would go on the property, which is townhouses, senior housing, home offices and some retail. Mr. Dominic Alfonso stated that he lives on at the corner of South Freeway and objects to the senior housing building, even if it were proposed to be two stories. He stated that if the plan is developed, he does not want to live in his home and would sell it to the city. Mr. Gus Tarr, representing Tom Thumb, asked why there was no moratorium put on the properties that the city proposes to acquire, such as the animal hospital, at the time the city started the planning. Councilmember Huber responded that Council was nowhere near agreeing to a concept plan at the time the animal hospital was sold. Mayor Mertensotto stated that the city is not going to take anything away from the owners of the animal hospital. Further, the last thing Council would want to do would be to establish a moratorium until there is a definitive plan. He stated that Mr. Tarr had knowledge that planning was going on through FINA, which has been for sale for a long time. He also stated that he understands that Mr. Tarr has been working with Walgreens or another developer to develop the site. He noted that Mr. Tarr's interest is to have a Tom Thumb with gas. Councilmember Dwyer informed Mr. Tarr that Council has determined that a gas station will not work in the development and further that Council is not interested in a motor fuel station in the development. Mr. Tarr responded that he thinks he should be allowed, as a landowner, to buy the property and develop it. He further stated that he was ready to remodel the Tom Thumb and put in gas. Mayor Mertensotto called a recess at 10:55 p.m. The meeting was reconvened at 11:07 p.m. Mayor Mertensotto stated that if Council passes a resolution to authorize submission of an application for the livable communities program, Council can always withdraw or decline to accept the funds if there are strings attached. He further stated that Council wants to make sure that the city is not locked into the Town Center plan. Ayes: 5 Nays: 0 Page No. 19 October 5, 1999 Councilmember Huber moved adoption of Resolution No. 99 -71, "A RESOLUTION AUTHORIZING APPLICATION FOR THE LIVABLE COMMUNITIES DEMONSTRATION PROGRAM." Councilmember Schneeman seconded the motion. Mayor Mertensotto stated that the resolution was adopted with the understanding that Council has not had time to determine if there are any "strings attached" and reserves the right to make a motion to decline any funds or rescind the action just taken. ROSEVILLE PROPERTIES Council acknowledged a request from Roseville Properties for BUILDING PERMIT authorization for the issuance of a building permit for Centre Pointe Building Number Four and for tax increment financing assistance. Council also acknowledged an associated memo from Assistant Hollister. Mr. Hugh Cullen was present on behalf of Roseville Properties. Mr. Cullen stated that he is present to request approval of a building permit for the fourth building in Centre Pointe. The building will be j similar and almost identical to the Phase 3 building. He informed Council that the City Planner's report suggests a condition regarding a monument sign, but Roseville Properties does not plan any monument sign for this building. Responding to a question from Mayor Mertensotto, Mr. Cullen stated that he understands that TIF will no longer be available but that significant site work has been done for this building. He asked if some of the money that has been spent on site correction prior to December 31 can be considered for TIF. Mayor Mertensotto responded that once a project has been completed, the "but/for" does not apply. Councilmember Dwyer informed Mr. Cullen that Council is under a mandate to develop criteria that will control what Council does with TIF. Mr. Cullen stated that he found out very recently that the situation for Roseville Properties will change very dramatically in the near future. The property his firm owns in Center Pointe has had significant site development costs and the site correction work was done with the understanding that TIF would be available. Page No. 20 October 5, 1999 Mayor Mertensotto instructed Mr. Cullen to delineate the costs for landscaping and earth work. He suggested that Council could authorize the issuance of a foundation permit for the structure. Treasurer Shaughnessy stated that Council has scheduled a public hearing to develop the criteria for TIF for business subsidies. Anything the done under TIF would have to be completed and paid for by December 31, and in this case the work will be done by December 31. He stated that Mr. Cullen has already completed the soil correction, which is what he is asking TIF assistance for. Mr. Cullen stated that he understands that his firm will not receive the TIF they had hoped for and all they could possibly receive from TIF is assistance for the soil correction that is already done. Administrator Batchelder suggested that the city should get a clarification from legal counsel on what is considered "spent." Responding to a question from Councilmember Dwyer, Mr. Cullen stated that the rooftop screening will be the same as the last building. He then reviewed the site plan for Council. He stated that the rooftop utilities will be low profile and will be painted to match the building. Councilmember Schneeman moved to grant a foundation permit to Roseville Properties for Building Number Four with the understanding that the building plan will be finalized in the next two weeks. Councilmember Huber seconded the motion. Ayes: 5 Nays: 0 COMPREHENSIVE PLAN Council acknowledged a memo from Administrator Batchelder WORKSHOP regarding adjournment to the Comprehensive Plan workshop scheduled for 7:00 pm. On Tuesday, October 12. It was the consensus to schedule some time at the workshop for discussion of the proposed budget. COUNCIL COMMENTS Councilmember Krebsbach asked for an update on the Lexington Avenue trail. Public Works Director Danielson responded that staff will provide an update for the October 19 agenda. Page No. 21 October 5, 1999 ADJOURN There being no further business to come before Council, Councilmember Huber moved that the meeting be adjourned 7:00 p.m. on October 12 for a Comprehensive Plan and budget workshop. Councilmember Dwyer seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 11:35 p.m. ", ---� �� athleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor