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1997-01-21 Council minutesPage No. 1 January 21, 1997 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, January 21, 1997 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, 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 7:37 o'clock P.M. The following members were present: Mayor Mertensotto, Councilmembers Huber, Koch, Krebsbach and Smith. AGENDA ADOPTION Councilmember Smith moved adoption of the revised agenda for the meeting, amended to remove approval of the January 7, 1997 minutes from the agenda. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Koch moved approval of the consent calendar for the meeting, revised to move item r, McNeill property memo, and 1, Parks and Recreation Commission minutes, to the regular agenda, along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the minutes of the January 8, 1997 Airport Relations Commission meeting. b. Acknowledgment of the Fire Department monthly report for November. c. Acknowledgment of the Fire Department monthly report for December. d. Acknowledgment of the Treasurer's monthly report for December. e. Authorization for the purchase of two Ford Crown Victoria patrol cars from Superior Ford under the State contract at a cost of $39,452.00. f. Approval to issue purchase orders to Ancom Communications for $13,501 for 14 portable radios and to Bear Communications for $2,556 for six pagers in accordance with their low quotes. Page No. 2 January 21, 1997 g. Authorization to schedule the annual Board of Review at 7:00 p.m. on Tuesday, April 1, 1997. h. Approval of the reappointment of Councilmember Huber as Council representative and Mike Sokol as citizen representative to serve on the Northern Dakota County Cable Communications Commission for two year terms effective February 1, 1997. i. Approval of the reappointment of the following advisory commission members to three year terms commencing on February 1, 1997: Airport Relations Commission - Scott Beaty and David Leuman; Planning Commission - Mike Dwyer, Daniel Tilsen, Bernie Friel; Parks and Recreation Commission - Steven Kleinglass, Carol Damberg and Stan Linnell. j. Acceptance with regret of letters of resignation from Airport Relations Commission members David Olson and Cynthia Surrisi along with direction to staff to advertise the vacancies. k. Authorization for the issuance of a purchase order to Krech's Business Systems for $3,126 plus tax for the purchase and installation of computer network cables and hardware, the expense to be charged to the 1996 Administration computer repair budget. 1. Acknowledgment of a memo from Public Works Director Danielson regarding the Ziggy's expansion proposal. m. Acknowledgment of an update on the status of copier acquisition. n. Acknowledgment of receipt of the Uniform Settlement Agreement for and approval of the 1997 labor contract between the city and LELS, along with authorization for contract execution by the Mayor and City Clerk. o. Approval of the list of claims dated January 21, 1997 and totaling $1,018,886.21 p. Approval of the list of contractor licenses dated January 21, 1997 and attached hereto. Page No. 3 January 21, 1997 q. Acknowledgment of a letter from the Dakota County HRA regarding housing rehabilitation program activities. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 MEETING MINUTES Councilmember Smith stated that the January 14 Parks and Recreation Commission minutes actually represent two meetings, the regular Commission meeting followed by a joint workshop with Council. She felt that the workshop should be recorded independently and should be approved by Council. She also did not feel that the minutes fully represented all of the issues that were discussed, and asked that they be amended. The minutes were removed from the agenda for division and correction. MCNEILL PROPERTY Public Works Director Danielson reviewed his memo regarding acquisition of the McNeill property on Perron Road. After brief discussion, Councilmember Huber moved adoption of Resolution No. 97 -04, "RESOLUTION DIRECTING ENTRY ONTO THE MCNEILL PROPERTY FOR ENVIRONMENTAL TESTING BEFORE EMINENT DOMAIN PROCEEDINGS (Pursuant to Minn. Stat 117.041. Subd. 2)." Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 CASE NO. 96-26, BECKMANN Council acknowledged a memo from Public Works Director Danielson recommending that discussion on the Beckmann variance application be continued to February 4 to allow time for receipt and study of technical reports from the city's consultants. Mr. Beckmann was present for the discussion. Mayor Mertensotto was excused from the meeting. Acting Mayor Smith informed the audience that the matter had been continued from December to allow the city to obtain additional information. She explained that the city's consultants have not yet submitted their reports, therefore Council desires to continue the matter. She asked Mr. Beckmann if he would be willing to accept a continuance to February 4. Page No. 4 January 21, 1997 Mr. Beckmann responded that he would agree. He also clarified that he has submitted to the Public Works Director all of the information that Council has required. He stated that at one of the prior discussions, Councilmember Huber had asked whether he could communicate effectively without a variance and the report from his expert, Mr. Lysiak, speaks to that point. Councilmember Huber moved to continue discussion on the matter to February 4. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 Council and the City Attorney responded to questions from Mr. Jim Schueppert regarding the communications tower moratorium and other issues. City Attorney Hart informed Mr. Schueppert that the standard for amateur radio communications is set forth in federal law and will not change. He stated that Council must identify the city interest that is in conflict with the application and investigate and determine the point at which Mr. Beckmann can be reasonably accommodated. He explained that the federal standard does not require the city to go along with every application but Council must find the point at which it can serve the city's identified interest and still give reasonable accommodation. Mayor Mertensotto returned to the meeting. MN /DOT ROW Council acknowledged a memo from Public Works Director Danielson regarding a request from Paster Enterprises that the city allow Mn/DOT to release the vacant right -of -way adjacent to the Mendota Plaza. Mr. John Streeter was present on behalf of Paster Enterprises. Mr. Streeter informed Council that he came before Council and the Planning Commission earlier this year for permission to place fill material on Parcels 35 and 36 directly adjacent to the shopping center. Council approved the request with conditions, however the filling was never accomplished because of a mistake at Mn/DOT. He stated that Paster would now like to acquire Parcel A (36), which is a 100 foot strip of land immediately adjacent to the center, and which had originally been taken from the center by Mn/DOT many years ago for right -of -way purposes. Mn/DOT no longer has plans for the T.H. 149 r -o -w and is offering it back to the underlying fee owners. Page No. 5 January 21, 1997 Mr. Streeter explained that Paster has retained a hydrologist to design the holding pond, and he will meet with Mn/DOT so that he knows exactly what Mn/DOT wants. He informed Council that. Paster does not hold the underlying fee title to Parcel B (35), but is negotiating with legal counsel for the property owner. He stated that Paster Enterprises would like a restaurant to be built on Parcel A, and that development of the parcel should not affect Parcel B. He explained that it would be very difficult and expensive for anyone to develop Parcel B. Councilmember Krebsbach stated that she would like to see the creek on Parcel B stay in its natural form. Mr. Streeter responded that Paster does not have any rights to that parcel, but there is a 60 foot dedicated easement over the parcel. He also pointed out that Councilmember Smith has stated that she does not want anything within 100 feet of the creek, and that was one of the conditions when the filling was discussed. Councilmember Smith clarified that the city has jurisdiction over any change within 100 feet of a designated wetland. She stated that her inquiry had been whether any changes were proposed to occur within the 100 feet, and that she did not state that she wanted no changes but rather that she would like more information. Mr. Streeter responded that the city has total control and Mn/DOT has agreed to sell the property to Paster but requires a letter from the city giving permission for conveyance of the property to Paster Enterprises. Councilmember Smith stated that her primary reservation is that the city has been discussing long range plans in case an alternative traffic route should be constructed in the right -of -way. She informed Mr. Paster that she did not object to the filling because that would ultimately be necessary anyway. She informed Mr. Streeter that in the spring Council will be looking at the quadrant north of T.H. 110 and making a determination on how that area should ultimately look. She pointed out that what happens across the highway could be affected by what is allowed south of the highway. Councilmember Smith informed Mr. Streeter that it is possible that some of the right -of -way will be needed for road purposes. Mr. Streeter stated that South Plaza has been extended by the city j and ends up against the south end of Parcel 35. He stated that one of the reasons Mn/DOT is allowing Paster to purchase Parcel 36 is Page No. 6 January 21, 1997 because a portion of it already went to the HRA. He explained that the property originally belonged to the shopping center and all Paster is asking is to get it back. Councilmember Smith responded that she realizes the senior housing project is within the right -of -way but Council made a determination that a road would never go south through the right -of- way. She informed Mr. Streeter that Council has had preliminary plans for the right -of -way in the past which would impact Parcel 36, at least in part. Mayor Mertensotto suggested that Council assume that if South Plaza is ever extended over T.H .110, more than likely there would be on and off ramps from T.H. 110 to the overpass, which means that easements would be needed over the north part of the right -of- way. He asked Public Works Director Danielson to determine if 10 feet in addition to the 62 feet of right -of -way would be sufficient for off ramps for a future bridge. Mr. Streeter responded that Mn/DOT has already stated that it will not release the top 100 feet of Parcel 36 because of possible future needs. Councilmember Smith stated that she would like Council to review the roadway studies which have been done to determine whether the city should retain interest in a portion of the right -of -way. She pointed out that the property is in the public domain now and it would not be in the city's best interest to give up any rights before getting staff review and recommendation. Mayor Mertensotto pointed out that Council has scheduled a workshop on February 1, at which time it will be considering the northeast quadrant of the intersection to see what potential there is for development of the city property and the right -of -way. He suggested that in the interim, city engineering will be directed to exercise its best technical judgment in road design on what the city would need for right -of -way for an access road and ramps. He explained that Council is very concerned about preserving the city's rights. Further discussion on the matter was continued to February 4. TIF REQUEST Council acknowledged a memo from Treasurer Shaughnessy in response to a request from United Properties for TIF assistance in the development of Phase II of the Enterprise Corporate Center. Mr. Dale Glowa was present for the discussion. Page No. 7 January 21, 1997 Mr. Glowa informed Council that United Properties is facing some significant costs for correction of soils problems on the site. He explained that quite a bit of fill, trash and rubbish was deposited on the property over the years, and much of the trash was removed when United purchased the land over 20 years ago. He explained that Braun Intertech has prepared a soils report which indicates that that significant fill removal and replacement is necessary. There is also a significant amount of clay on the site, which will require that drain tile be used all around the building. Mr. Glowa informed Council that it was originally his intention to build the two phases as spec buildings, but because of the costs to repair the site, Phase 2 cannot be spec. He requested that Council consider $165,000 in TIF assistance to offset the extraordinary site preparation costs. Mayor Mertensotto pointed out that when Phase I was discussed, Council expressed concern over how traffic from the two phases would co- mingle. Mr. Glowa responded that his experts have indicated that the configuration which is being proposed is the safest configuration. He explained that he is just present this evening to discuss TIF and will be prepared to discuss plans for the project in the future. He anticipated that the project will develop as office /warehouse with two to three tenants and nominal truck traffic. Responding to a question from Mayor Mertensotto, Treasurer Shaughnessy stated that he believes it would be in the best interest of the city to authorize the TIF "up front" rather than pay as you go. He informed Council that the schedules submitted by Ehlers & Associates indicate that $165,000 is the increment the building will comfortably produce. Councilmember Smith asked that tree removal be taken out of the eligible expenses. Councilmember Smith moved to extend to United Properties a positive indication on its request for $165,000 in an up -front TIF payment for Enterprise Corporate Center Phase 2 based on the information submitted regarding eligible tax increment expenses. Councilmember Huber seconded the motion. Ayes: 5 Nays: 0 BROWN INSTITUTE Council acknowledged a memo from Treasurer Shaughnessy relative to a request from the M.A. Mortenson Company for tax increment Page No. 8 January 21, 1997 assistance to offset site modifications needed at the Cray Research facility on Northland Drive as part of renovation of the property for Brown Institute. Mr. Tom Lander was present on behalf of Mortenson. Mr. Lander explained that his firm has been working with Brown Institute on the school's move to the Cray Research building. He stated that the move represents a major financial commitment for the school, which will lease the facility from Mortenson. He asked that Council authorize the use of $336,000 in TIF to offset some of the expenses of the move, which include expansion of the parking lot, regrading and site modifications that are required for drainage both for the site and off site drainage which comes across the site. Mr. Lander informed Council that the property will be taxable, as Brown is a for -profit school and the property will be leased from Mortenson. Mayor Mertensotto asked Mr. Lander if Brown Institute will give Council a letter stating that Brown is fully aware of the tax increment request being made by Mortenson. Mr. Lander responded that Brown is aware of the request and that he will provide Council with copies of the correspondence between his firm and Brown. He further stated that he understands that if Mortenson ever sells the property, the tax increment will terminate and must be paid back. Mayor Mertensotto pointed out that Mortenson has come to the city with the TIF request, and that the city did not seek out Mortenson or Brown Institute. Mr. Lander concurred, stating that the city has not approached either Brown on Mortenson. He stated that the City of Minneapolis has made it clear that they would like to keep the school and has made offers, but the Cray building is a perfect fit for Brown. Councilmember Smith asked what percentage of the students typically drive and how many require public transportation. She informed Mr. Lander that there is no public transportation to the site. Mr. Lander stated that parking at the building currently meets ordinance requirements, but the additional parking which will be provided is a function of the school and its needs, which typically exceed ordinance requirements for parking. He explained that Brown specialized training offered by the school and stated that Page No. 9 January 21, 1997 students typically work in addition to attending school and a large majority of them drive to school. Councilmember Smith stated that Mortenson would be amending the building for classroom use. She asked Mr. Lander if he feels the use will continue long enough for the improvements to be worthwhile. Mr. Lander responded that Mortenson is the landlord for Brown in its current facility, the institute has proven to be a very good client and the school has been very stable in the ten years it has been with Mortenson. He explained that the school is a very good fit with the building, whereas most office uses are looking for open structures which can be built to fit, and that he believes Brown will be a long- term use. Councilmember Smith asked if Brown will be impacted by possible changes in state law that would require them to expand their student base. Mr. Lander responded that he is not an educator so could not answer, but that he has watch the school respond to changes in federal funding for schools and they have been very successful in adapting to the changes. Mayor Mertensotto stated that the Cray building is a specialized industrial building and Council would like to see it put to use. He felt that it is in the best interest of the city to see the structure occupied and in the best interest of the city to contribute TIF so that the structure gets back on the tax rolls. He felt that Council should be on record that it will allow TIF participation on the basis that the building will be returned to the tax rolls, but that TIF would be contributed on the basis of the Brown Institute request only and would not apply should the use change. He stated that approval would be conditioned that the city receive copies of all correspondence between Mortenson and Brown Institute relative to TIF and a letter acknowledging that the city is contributing TIF to assist Brown. Responding to a question from Councilmember Krebsbach, Mr. Lander stated that Brown holds morning, afternoon and evening instruction sessions and the evening sessions are from 6:00 to 9:30. He informed Council that Mortenson will add landscaping to screen the expanded parking. Councilmember Krebsbach moved to direct staff to prepare a TIF developer's agreement between the city and Mortenson on behalf of Page No. 10 January 21, 1997 the Brown Institute for $336,510 in TIF up front with the condition that the financing is for the benefit of Brown Institute and that Brown Institute acknowledge the condition, and further conditioned that if the use of the building is for anyone other than Brown, the city's commitment to TIF will automatically terminate. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 BUNKER HILLS STREETS Council acknowledged a memo from Engineer Mogan regarding the proposed Bunker Hills street improvements. Public Works Director Danielson informed Council that there has not been sufficient time for engineering staff to do the field work necessary for Bunker Hills in order to get construction started in 1997. He recommended closing the hearing and delaying field work until summer. He explained that staff would begin gathering information early in the summer and then invite the residents back to meet with Council at an informal meeting. Mayor Mertensotto responded that if staff is not ready for the project, Council should termination consideration and notify the property owners that a new hearing will be called in 1997 but that construction cannot be done in 1997. Councilmember Huber expressed concern over how delaying the project would affect other projects anticipated for 1997/98, like Cherry Hills. Public Works Director Danielson responded that if Bunker Hills can be started in early summer, the Cherry Hills project could be started later in the summer or early fall. Councilmember Smith moved to close the public hearing on the Bunker Hills project in order to terminate the project, with the intent that Council will resurrect the project in 1997 and hold a pre - feasibility meeting with the residents in early June. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 Staff was directed to notify the Bunker Hills residents of Council's actions and to patch potholes in the neighborhood. MNRRA GRANT Council acknowledged a memo from Assistant Hollister regarding the proposed Mississippi National River and Recreation Area grant. Page No. 11 January 21, 1997 Assistant Hollister informed Council that he met with representatives of Sunfish Lake, Mendota and state agencies last week, and all of the representatives agreed that the cities will apply for separate grants. He stated that the Metropolitan Council representatives would like a joint letter from the three cities to demonstrate that they would like to work together to discuss issues. Mayor Mertensotto suggested that each of the cities adopt a common resolution to indicate to the state that all of the cities are making a commitment to cooperate. Councilmember Huber moved adoption of Resolution No. 97 -05, "A RESOLUTION AUTHORIZING APPLICATION TO THE METROPOLITAN COUNCIL FOR MNRRA PLAN FUNDING ASSISTANCE," and directed that Assistant Hollister prepare a resolution which can be adopted by all three cities to express their agreement to cooperate with each other. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 WORKSHOPS Council acknowledged a memo from Administrator Batchelder reminding Council of the joint workshop scheduled with the Planning Commission on Saturday, February 1 at City Hall to discuss use of the city site on Freeway road and future planning for the area surrounding the city property. Administrator Batchelder stated that Council has also expressed a desire to conduct a workshop on the antenna ordinance on February 11. Mayor Mertensotto suggested that staff prepare the following information for that workshop: a summary of ordinances that are in existence in other cities and what those ordinances permit; a list of what the options are based on what other cities are doing; and comments on zoning and land uses from other ordinances. He pointed out that Council is not planning on drafting the ordinance prior to the workshop but rather will discuss what the goals are and what Council would like to see in the ordinance. ADJOURN There being no further business to come before the Council, Councilmember Koch moved that the meeting be adjourned to 8:30 Page No. 12 January 21, 1997 a.m. on Saturday, February 1, for a joint workshop with the Planning Commission to discuss the Freeway Road site. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 9:53 o'clock P.M. Wwalm Charles E. Mertensotto Mayor Kafhleen M. Swanson, City Clerk