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1996-03-19 Council minutesPage No. I March 19, 1996 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, March 19, 1996 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 7:30 o'clock P.M. The following members were present: Mayor Mertensotto, Councilmembers Huber, Koch and Krebsbach. Councilmember Smith had notified the Council that she would be absent. AGENDA ADOPTION Councilmember Huber moved adoption of the revised agenda for the meeting. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 APPROVAL OF MINUTES Councilmember Koch moved approval of the minutes of the regular meeting held March 7, 1996. Councilmember Krebsbach seconded the motion. Ayes: 4 Nays: 0 CONSENT CALENDAR Councilmember Krebsbach 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 February 14 Airport Relations Commission meeting. b. Acknowledgment of the minutes of the Park and Recreation Commission meeting held on March 12, 1996. Acknowledgment of the Fire Department monthly report for February. d. Acknowledgment of the Parks Department reports for January and February. e. Acknowledgment of the unapproved minutes of the February 15 NDC-4 meeting. Page No. 2 March 19, 1996 f Adoption of Resolution No. 96-12A"RESOLUTION APPROVING FINAL PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE WENTWORTH WATERMAIN PROJECT (IMPROVEMENT NO. 95, PROJECT NO. 4)." g. Acknowledgment of a memo regarding funding for park bridge replacement and authorization to expend $31,678.38 from the General Fund contingency and $4,940 from the Special Park fund for the bridge replacement. h. Acknowledgment of quotes for a 1996 4x4, 3/4 ton truck for the Parks Department, and authorization to issue a purchase order to Grossman Chevrolet for a 1996 Chevrolet 4x4, 3/4 ton truck for its low quote of $19,528.25. i. Acknowledgment of quotes for 1996 street sweeping and awarding the contract to Mike McPhillips, Inc., at the rate of $59.75 per hour. j. Authorization to delay the purchase of portable defibrillator units. k. Approval of the issuance of an On-Sale 3.2 Malt Beverage License to Mendota Heights Par 3 Golf and an Off-Sale 3.2 Malt Beverage license to Tom Thumb Food Markets. 1. Approval of the list of licenses dated March 19, 1996 and attached hereto. m. Approval of the List of Claims dated March 19, 1996 and totaling $117,510.55. Councilmember Huber seconded the motion. Ayes: 4 Nays: 0 GOPHER ONE CALL Council acknowledged a memo from Public Works Director Danielson regarding continued discussion on the request for building permit approval from Gopher State One Call. Mr. Hugh Cullen, from Roseville Properties, developer of the project, was present for the discussion. Mr. Collins stated that at the March 7 meeting, Council asked Gopher State representatives to address two matters, the color of the building exterior and review of the plans by Health East. He showed Page No. 3 March 19, 1996 new renderings of the building and stated that he has received a letter from the Health East CEO indicating his acknowledgment of the plans and indicating that he felt the building would be an enhancement to the area. Mayor Mertensotto stated that it appears that the site is lower than the adjacent property, but that the building will be higher. Mr. Collins responded that the building will be about the same level as the first story of the Centre Point building to the west. Councilmember Krebsbach stated that she had asked for a more accurate representation of the roof top units. Mr. Collins responded that city staff has asked him to locate all of the units in the center of the building. He further stated that the roof drops to the center and there will be a parapet to help shield the units form the road. He stated that the roof -top units will also be completely fenced and will be very low profile. He explained that the parapet is about two feet above the roof. Mayor Mertensotto asked if the units will be an equal distance from all sides. Mr. Collins responded that the exact location of the units has not been determined yet because there will be several tenants in the building, but that it would be cost prohibitive to put them at the rear of the building because of the long runs needed for piping, etc. He explained that the units will be back from the front of the building, at the point where they will be at the lowest profile, but to a certain extent the location is dictated by the tenancy of the building. Councilmember Krebsbach stated that one of the questions she had was whether trucks would have difficulty getting around the building. Mr. Collins responded that there will be no problem getting a truck in and around the building, and there is adequate distance for maneuvering. Mayor Mertensotto asked if there are building plans available. Mr. Collins responded that they have been drawn but he is still working on the end result of what the construction drawings will be, but final drawings for the interior will be work in- progress drawings because tenancy is not known except for Gopher One Call. He Page No. 4 March 19, 1996 stated that the roof top units are shown on the renderings of the building. Councilmember Krebsbach stated that the drawings are the same as the last presentation to Council and they are not accurate as to the location of the roof top units. Mr. Collins responded that he cannot tell Council exactly where the units will be until there are tenants but he will locate the units in the middle of the roof as best he can to screen them. Mayor Mertensotto stated that Council approved a foundation permit on March 7, but if Mr. Collins is now saying that the building will be designed later there is some miscommunication. Interim Administrator Batchelder stated that on March 7 Council reviewed plans for the building permit for the building. He stated that at that meeting Council expressed concerns about building materials, mechanical units, parking, loading dock access, etc. Council approved the request in concept based on site plans, etc. and directed Mr. Collins to provide building materials, contact Health East and address Council's concerns. Councilmember Krebsbach stated that meeting minutes and the memo from Public Works Director Danielson both indicate that she had asked Mr. Bell to provide a rendering that provides more accurate representation of the roof top units. She explained that she just wanted to see what might be an accurate representation of the units - what they will look like on the building. She pointed out that the roof units on the Health East building are a concern. Mr. Collins responded that the building will be a two or three tenant building and Gopher State will occupy over half of the building space. He explained that there will be heating and air conditioning units to accommodate each of the tenants needs rather than large units to serve the entire building, and he does not know how big the units will be until he knows the needs of the tenants. He informed Council that he felt the roof top units would be an issue for the Council because he knew it was an issue for the medical building, and he told the architects before the design process started that there would be concern. He stated that for this reason the roof was lowered in the center so the units could be located there, and he has agreed to bring all of the units to the center of the building. Mayor Mertensotto stated that it is not true that just because a building meets code that staff can issue a building permit. He Page No. 5 March 19, 1996 informed Mr. Collins that Council always reviews commercial buildings. Mr. Collins responded that he is trying to provide all of the information Council had requested, and that Gopher State has spent a great deal of money on architectural designs. He then reviewed elevations of the structure and stated that he needs Council approval before he can move forward with the project. Councilmember Krebsbach stated that she would like to see more detail on the roof top units than what the plans show. Mayor Mertensotto informed Mr. Collins that Council wants information on the height of the roof -top units and confirmation that the plans on file with the city are the plans for the building which will be built. He also stated that the building's brick color must be complimentary to the Health East building. Further discussion was tabled to April 7. CASE NO. 96- 05/96 -06, Council acknowledged memos from Public Works Director DAKOTA BANK - SUPER Danielson regarding continued discussion on an application for AMERICA subdivision from Dakota Bank and an application for conditional use permit and variances from SuperAmerica. Council also acknowledged a memo from Treasurer Shaughnessy regarding tax increment financing. Council also acknowledged information from Dakota Bank on building cost estimates, copies of elevations of the proposed building, and written response from SuperAmerica to issues raised at the March 7 meeting, and a letter from SuperAmerica describing the variances requested and the hardships and practical difficulties. Mr. John Seidl, Dakota Bank President, Mr. Jack Boarman, project architect, and Mr. Mike Cronin, representing SuperAmerica, were present for the discussion. Mr. Boarman reviewed the list of issues which were raised on March 7. He showed schematic designs for the bank. He explained that the building will have two levels, a main bank level and entrance, and an atrium level. The exterior will be brick and stone with a sloped hip roof design and Timberline shingles. He stated that the overall image of the bank design will be similar to City Hall, and it will have a 5 '/2 foot overhang. The lower level will be 5,000 square feet for service and storage, and the first floor will be 10,000 square feet. He explained that there will not be a future addition, as the building is proposed to be a one and one -half story structure, and no variances are needed for the bank. Page No. 6 March 19, 1996 Mr. Boarman then reviewed the SuperAmerica proposal, the five residential lots, and an overall review of the entire master plan for the Curley site. Mr. Boarman reviewed the site plan with respect to traffic, sidewalks, pedestrian and bike traffic, and how it will relate to the Curley neighborhood. He stated that there is a screen berm proposed between the neighborhood and the site, and he also proposes to put the bike path at a 120 degree angle with a landscape retaining wall to turn the pathway so that people will have to stop before making the turn and then address the intersection after they stop. He stated that there is also the possibility of an easement between Lot 2 and an existing lot to serve as a neighborhood link connector and he would be willing to work with the city to get that accomplished if Council desires. He stated that the SuperAmerica site will be flat at T.H. 110 so there could be another access point with two or three steps to the SA property for pedestrians away from the pumps and immediate access to the front of the store. Mr. Boarman stated that it is clearly understood that a park contribution will be required and will be paid. He informed Council that the only variance now being requested for SA is a thirty foot variance for the car wash and two for the asphalt setback. Councilmember Huber stated that his only concern about the 120 degree angle of the pedway is that the crosswalk would be in a location where a motorist might not expect it, and motorists would lose site of the pedestrians. He felt that the landscaping creates a visibility problem. Mr. Boarman responded that the sidewalk has been moved seven feet, just enough to get people to stop, and the intent is to use a horizontal edge of landscaping so that people have to stop. He stated that low plants will be used and will not obscure visibility. Mayor Mertensotto asked if the angle of the path could be changed to be more compatible with the existing trail. Mr. Boarman responded that he will work with the city on the issue to reduce potential problems. Responding to a question from Councilmember Krebsbach, Mr. Boarman reviewed drawings showing where the existing buildings in relationship to the proposed development. Mr. Tim Curley, 2049 Patricia, stated that he is the son of the owners of the property but that he is speaking for himself. He expressed concern about safety of the neighborhood children, but did not think it would be appropriate to have a bike path on private Page No. 7 March 19, 1996 property. He opposed any proposal to have the trail on his property, and stated that every city trail that he is familiar with is parallel to the city street and on city property. He suggested that a stop light be installed instead, so that pedestrians can push a button to stop traffic. Mayor Mertensotto responded that there are several pedways on private property. He expressed concern that Mr. Boarman stated the city could work out easements with private property owners, but pointed out that there are people in the Curley Addition who have indicated they would like to have the pedway come into the site diagonally. He stated that if Mr. Curley does not want the trail on his property, the developers could grant an easement on the bank property. Mr. Curley stated that if the bank wants to dedicate its land, that is the bank's business but he opposes the trail and would not be in favor of the bank granting an easement. Mayor Mertensotto pointed out that the existing trail does not go south on Lexington and people have to go through the Curley Addition to get to the trail that goes to Rogers Lake Park. He stated that for many years people did use the diagonal path along Mr. Curley's lot and they would like to have it back. Mayor Mertensotto responded that anyone who purchases the lot north of Mr. Curley's lot should be informed that there is an easement crossing the lot. Mr. Curley responded that he thinks that anyone looking at buying that lot would be turned off by the easement and it would be hard to sell. He stated that the home owner who owned the lot next to the park that was recently developed in the neighborhood sold because he did not want people walking near his home. Councilmember Huber stated that no matter which way the trail goes through, pedestrians end up having to cross the street. Councilmember Krebsbach stated that if the SuperAmerica is constructed, it would bring more children to that corner. Mr. Curley stated that there are many SA's throughout the inner city and no one hears reports of children getting injured getting to them. He stated that it is the responsibility of the parents to take care of their children, and that SA would be building a business to serve the community but that business would not cater to eight to ten year old children. He further stated that if Council is really concerned, they Page No. 8 March 19, 1996 could install a stop light that only turns red when a pedestrian gets to the light (a pedestrian semaphore). Mayor Mertensotto stated that Council will look at the proposal. He pointed out that when the old diagonal trail was removed, many people complained and that is the reason the diagonal trail is being proposed now. Mr. Curley stated that there is a median on T.H. 110 where people going west on the highway can turn to access Curley Furniture and the Schwin shop. He stated that both he and the owner of the bike shop are in favor of retain the median. He asked Council to send a letter to the Commissioner of Highways to request that it be kept open. He stated that this is the primary reason he attended the meeting. He informed Council that his home is the closest home to the development and will be the most impacted by the project, and while he likes the project, but he would like to have the microphones turned off from 10 p.m. Mr. Cronin reviewed a memo from SA, dated March 19, which categorized the nineteen issues raised at the last Council discussion into four groups. Those groups were 1) the physical sizes of the structures proposed to be built; 2) hours of operation; 3) confirmation of eleven items SA has agreed to; 4) three items of preference by SA. Mr. Cronin explained that SuperAmerica proposes to construct a 3,500 square foot facility with three pump islands and a car wash. He informed Council that SA feels this is the minimum threshold size it can build to provide the convenience the neighborhood will expect, and that it is not much larger than the existing SOS facility. By comparison, he stated that the store at the airport and the one in Eagan are 4,400 square feet and 4,700 square feet respectively. He explained that the facility will have the same footprint as the proposed store on T.H 55 but it has some custom features. He distributed drawings of a site plan and informed Council that there is proposed to be a low band at the base of the building with a much darker brick color below it because of the concern expressed about the glass. He informed Council that there are no stripes going around the building and there are three foot eaves proposed on the building, the knee wall across the front, under the glass, will be the same metal as the frames for the glass (a dark bronze finish), and the trash container is now on the side. He stated that windows are still proposed for the car wash, and three islands are proposed because it is felt that during the peak times when people are coming from or leaving the neighborhood and GNB, three islands will be needed to safely serve the customers. Page No. 9 March 19, 1996 Responding to a question from Mayor Mertensotto, Mr. Cronin stated that the canopy is 47 by 88 feet and that the car wash is proposed as part of the initial site development. He stated that he feels it will be a compatible use and that he has letters from the neighborhood in support of the car wash. With respect to hours of operation, Mr. Cronin stated that it is a frustrating issue because SA representatives know that they can operate very compatibly in an area like this. He proposed that they be allowed to start at 24 hours per day and cut back if Council finds that there are any problems. He stated that SuperAmerica would make a commitment to work with the city staff and accept any recommendations if complaints are received. Regarding speakers, he stated that it is very simple to turn the speakers off and that they would be turned off if there are any complaints. He explained that SuperAmerica will commit to work with city staff to solve any problems that arise with the speakers, vacuums, etc. Mr. Cronin stated that SuperAmerica needs the 14 foot 6 inch national standard canopy height, that there will be a three foot band around the canopy, and the columns will be brick eight feet up. He stated that the roof is a maximum four feet tall, which is a custom feature for this site, and the overall height of the canopy will be 21 feet, 6 inches. He showed samples of the roof material, and stated that the same shingles will be used both on the store and the canopy. He explained that the canopy height is slightly lower than the building. Regarding ground water contamination, Mr. Cronin stated that there are two approaches which could be taken, the water could be vaporized for two three years to vaporize the pollution or SuperAmerica could immediately remove the soil and then check to see if the extent of pollution under the perched water. He explained that SA is now proposing to remove the soil, and wants to find out if anything has leeched through. He felt that the PCA would probably give the option of vaporizing. Mayor Mertensotto stated that if there is going to be a monitoring structure on the site, there is concern about where it would be located and what it would like. Mr. Cronin responded that he does not think it will be an issue if SuperAmerica has the opportunity to redevelop the site, but that SA wants to quickly solve the issue. Mr. Cronin informed Council that SuperAmerica will not store any items outside. He then reviewed SA's three preferences. He stated that the profile of the store has been lowered, and SuperAmerica would like to be allowed to keep the area above the doors in glass, as Page No. 10 March 19, 1996 they would prefer to have the light. The second preference is that SuperAmerica would like to have windows in the car wash. He stated that he feels the windows soften the building. Mr. Cronin stated that if there is a vandalism problem, SuperAmerica will commit to absolutely never use plywood to board the windows but would rather commit to brick the window area with a brick that matches the building. He explained that there are cameras in the car wash and the entire building is wired for burglar alarm and camera systems. The third preference is that SuperAmerica be allowed to offer diesel at the site. He explained that none of the SA stations has experienced big trucks trying to access a site, and it has been the experience that the heavy commercial users would not come to this site. He stated that there are a number of cars, pick up trucks and motor homes that use diesel and SuperAmerica would like to be able to provide it. Mayor Mertensotto stated that everyone knows that the property needs rehabilitation, but the big issue that prevails is because the developers are asking for TIF assistance. He stated that Council wants the city to get something in return. He informed Mr. Cronin that Council has always had the goal that development of the intersection started with City Hall, which has many residential aspects, and wants to duplicate the same decor on the Curley site. He stated that Council feels it has every reason to scale the development down rather than having more pumps than any other station in town and the high canopy. He stated that Council does not want to have a high traffic facility drawing from the highway, and that the proposed station at Mendota Heights Road and T.H. 55 will have three islands. Mayor Mertensotto stated that Council has indicated that it would not mind a 24 hour operation at T.H. 55, but that this is a residential area and the existing service stations in the city are not open 24 hours. He felt that either 6:00 or 7:00 a.m. to 11:00 p.m. would be workable hours for a neighborhood station. He informed Mr. Cronin that if the developers were not asking for TIF, and if the facility could be fit onto the site without variances Council could possibly approve it because there would not be a basis for requesting so many changes. He stated that he wants it to be clear that Council has certain objectives for what will be developed on the site and is willing to work with SuperAmerica, but there must be a compromise on the hours and the number of islands. Councilmember Krebsbach stated that one of the reasons to keep the scale of the facility down is to keep traffic off of Lexington, and also because there will be another station on Highway 55. Page No. 11 March 19, 1996 Mr. Dave Palme, 1053 Wagon Wheel Trail, stated that in his letter to the Planning Commission he stated that he is against the gas station and is concerned about the lights, traffic, 24 hour operation and noise. He felt that it makes no sense to have two SuperAmerica stations so close together and stated that there are many gas stations within a few miles of the site. Mayor Mertensotto stated that something will be built on the corner and that SOS must do something because the contamination must be cleaned up. He stated that there is a certain level of traffic on Lexington now and Council cannot say that the traffic level will never get higher. Mr. Larry Ryan, 2119 Patricia, stated that the lights on the canopy will be underneath the canopy and will shine down so they should not cause a lighting problem. He further stated that there is already a lot of traffic from St. Thomas and other areas, and additional traffic will not bother anyone. He felt that the trail should remain where it is on Lexington Avenue. He informed Council that he is totally in favor of the SuperAmerica proposal. Mr. Mark Hays, from the Mendota Bike Shop, stated that his concern is the access to the frontage road and the access to the highway. He stated that currently the traffic is proposed to go around the bank, and there is no through street. He felt it would be wise to try to keep the access open. He informed Council that he has spoken to Mn/DOT and was told that if the Council would write a letter requesting to keep it open, they would take that into consideration. Mayor Mertensotto responded that he would suggest that unless the city leans on Mn/DOT heavily they will close the road. He agreed that the city will have to send a letter, and informed Mr. Hays that Council is supportive of keeping the entrance open. Mr. Curley asked if there will be a berm for the five new residential lots. Mr. Boarman responded that the buffer area, old Outlot B, will have a continuous berm about three feet high with seven feet of either fence or evergreen trees on top of it for a total ten foot high visual screen. Mr. Boarman stated that the barrier will be a combination of 50% fence and 50% double trees, staggered. Mr. Curley suggested that blue spruce be used because they are much more dense than pines. He further stated that if a fence is put Page No. 12 March 19, 1996 up first, the trees will not get enough sunlight and will be hollow inside. He stated that he would prefer a higher foot berm and spruce trees or a combination of spruce and pine. He felt that a higher berm and three rows of trees, rather than a fence, would be better for noise reduction and would require less future maintenance. Mr. Boarman stated that the concern was the concept of 50% fencing was to try to provide an acoustical barrier along the entire berm. He informed Council that the fence and trees will be on the bank property and their maintenance will be the bank's responsibility. Mr. Curley stated that he moved into the neighborhood in 1976 and since then he has tried to maintain the grass up to the trees. He stated that he always has to pick up debris. He informed Council that people drive 4 by 4 trucks through the corn field and down the bike path even though there is a sign that says motor vehicles are not allowed on the path. Councilmember Krebsbach stated that she had asked at the last meeting that SuperAmerica provide documentation that this is a neighborhood store to serve the community's needs. Mr. Cronin stated that the response he received is that it is a proprietary study, which even he could not see, and SA does not share the documentation. Councilmember Krebsbach responded that she would like a summary of the findings in writing from someone from SuperAmerica. She also asked for confirmation that there will be no signage on I -35E. Mr. Cronin responded that page two of the letter from SuperAmerica stipulates that SA will not purchase any off site advertising on I -35E or T.H. 110. Council discussed the hours of operation, and it was the consensus that 24 hours is not appropriate. Councilmember Krebsbach asked if 18 hours per day, from 5:00 a.m. to 11:00 p.m. would be acceptable. Mr. Cronin responded that either those hours or 6:00 a.m. to midnight would be acceptable, whichever Council prefers. Councilmember Krebsbach stated that her primary concern is the size and scale of the gas station. She further stated that there are many different elements that make it a community station, and the hours of operation are very critical. She stated that she would not Page No. 13 March 19, 1996 like the site to attract a lot of panel trucks, or other large trucks. She pointed out that the other proposed SuperAmerica is to have a car wash, and that store will generate more traffic. She noted that the Planning Commission was concerned about the car wash at the Curley site, and she felt that a car wash would take the station away from the community scale. Mayor Mertensotto felt that the traffic issue is addressed by the number of islands. He felt that there would be people coming in just to buy items other than gas, which is why there are 21 parking spaces available. He stated that getting the request down to two islands would keep the traffic down, and pointed out that there are no three - island stations in residential areas of the city now. He asked why the station has to be the same size as the one proposed for Highway 55. Mr. Cronin responded that SA operates its stations differently than stations like Amoco, which is clearly not the type of place where one would go for specialty brewed coffee, for example. He further stated that the Fina Station is much smaller and older. He informed Council that SA has stores where they have reduced the size and been sorry. He explained that SuperAmerica has found that selection and convenience is its marketing niche and that is why people stop at SuperAmerica rather than Fina, for example, on route to somewhere. He further stated that he thinks if SuperAmerica is to have a competitive store, it must be the threshold size. He informed Council that SuperAmerica will do whatever it can to make the store appear smaller and has tried to visually lower it, add special features, etc., and will continue to work with the city. Mayor Mertensotto responded that he is not convinced that if there were two islands with eight pumps there would be many times during an eighteen hour day when three islands would be needed other than to bring in more traffic. Mr. Bob Hartmann, from SuperAmerica, responded that the issue of three versus two islands is a really big issue for SA. He explained that the issue is not that three islands will attract more cars but rather that two islands will not be able to handle the traffic that will come to the store. He stated that two islands would not be efficient and people would be waiting in line. He explained that SA feels it is a critical issue.. He felt traffic to the location will be driven by the market around the location, and two versus three islands will not make the traffic increase but rather that two would make it less convenient. Page No. 14 March 19, 1996 Mayor Mertensotto responded that with two islands there would be more area for cars to maneuver in. Councilmember Huber stated that two islands would only allow eight people to fuel at one time rather than twelve, and the people who want to fuel would stack. Mr. Hartmann responded that in the morning when people are going to work, many people come in during a two hour period. He explained that with three islands people can get in and out much more safely. He stated that there is sufficient room for three islands, and SA needs three. He further stated that limiting the number of islands to two will not make it more of a neighborhood facility, but rather will just make it more congested. He explained that the same amount of people would be trying to get into fewer fueling stations. Mayor Mertensotto responded that Council does not want to increase traffic at the corner. Mr. Hartmann stated that SuperAmerica has done a market survey and both this site and the T.H. 55 site stand on their own. He further stated that SA is spending as much money on this site as the T.H. 55 site even though there would be a TIF contribution for the Curley site. He informed Council that for SA to invest $2 million, it has to have a certain type of facility to justify the expense. Councilmember Koch stated that she feels that SA is trying to work towards a community facility and Council has always said wants this site developed as well as it possibly can. She further stated that SA is willing to develope the site as best it can, and she could approve an 18 hour operation because that is a compromise from SA, and that she feels the car wash would be fine and would not increase traffic. With respect to the pumps, she stated that the SA representatives have stated that three islands will not bring more traffic to the station but rather will reduce congestion. Mayor Mertensotto responded that the biggest problem is the size of the canopy, which is longer than the building. Councilmember Huber stated that he supports Councilmember Koch. He stated that he has not heard a sense of protest from the neighborhood regarding eight pumps versus twelve. He further stated that what he has heard from the neighbors is that they do not feel that twelve pumps would detract from the residential feel of the facility. With regard to the hours of operation, he stated that 18 Page No. 15 March 19, 1996 hours is appropriate, and he did not think that 12 pumps versus 8 pumps makes it a bad project. Mayor Mertensotto responded that there are some problems with the proposal which he hopes could be resolved this evening, but if a basic agreement cannot be reached, the city cannot proceed with drafting a developer's agreement. Councilmember Huber asked about the number of drive up teller windows at the bank, and the hours of operation for the windows. He also asked if a 24 hour cash machine is proposed. Mr. Seidl responded that there will be 5 windows which will be open from 7:30 a.m. to 6:00 p.m. weekdays and 8:30 to noon on Saturdays. He stated that banking regulations require that the facility be 10,000 square feet, that Dakota Bank needs 7,500 square feet and could lease out the remaining space. Mr. Seidl informed Council that the bank is considering installing an ATM in the foyer or perhaps drive -up. Councilmember Krebsbach stated that everyone is in agreement that SA will not be open 24 hours and she would like 17 hours of daily operation to begin with. She felt that diesel fuel capability relates to the size of the canopy and felt that large trucks would be drawn to the station because of diesel. She stated that she feels the neighborhood has expressed concern about the car wash, and her biggest interest in the car wash is that it adds to traffic and congestion. She stated that she would defer to the Mayor on the number of islands if two islands is the key to making the station a neighborhood facility. She further stated that SA is an extremely successful operation and agreed that SA knows what is in its best interest. Mayor Mertensotto stated that unless the concerns expressed by Council are addressed he cannot vote on the matter, and until there is agreement on those issues, Council cannot discuss TIF. He asked how much TIF assistance is being requested. Treasurer Shaughnessy responded that the request is for approximately $350,000 plus additional TIF for the frontage road. He explained that the state will support half of the frontage road cost. Mayor Mertensotto stated that Council needs more information on the TIF request before the next meeting. Page No. 16 March 19, 1996 Mr. Seidl responded that SA has been very accommodating throughout the project, including meeting with the neighborhood. He stated that the bank has been in the community for many years. He informed Council that the bank initially wanted to be on the corner of the site but found out about the contamination in that area, and SuperAmerica was the only company that would look at the site. RECESS Mayor Mertensotto called a recess at 10:25 p.m. The meeting was reconvened at 10:43 p.m. CASE NO. 96 -01, Council acknowledged a memo from Public Works Director SUPER AMERICA Danielson regarding continued discussion on an application from SuperAmerica for conditional use permit and variances for a proposed gas station/convenience store at T.H. 55 and Mendota Heights Road. Mayor Mertensotto informed the audience that Council has treated the two SuperAmerica projects as separate applications and cannot give final approval to this proposal until there is a zoning amendment. He asked whether there are any questions regarding pylon versus monument sign. Mr. Cronin responded that SuperAmerica has a preference for pylon but would install a monument sign if Council prefers. Mayor Mertensotto noted that SA has asked for windows in the car wash and that he would agree to windows in the T.H. 55 facility. He pointed out that the applicant has not requested TIF for this project. He stated that there had been questions about lighting, drainage and landscaping, but he believes that all of those questions were answered at the last meeting. He informed Mr. Cronin that the only thing that is holding up this application is the requested amendment to the zoning ordinance to allow motor fuel stations as a conditional use. He stated that he would prefer to have the matter come back to Council on April 2 when there are five Councilmembers present. Mr. Hartmann responded that SuperAmerica must close on the property tomorrow or take legal action. He informed Council that he is willing to take that action to preserve his rights for 30 days. Mayor Mertensotto responded that he does not see any major problems with the proposal. Councilmember Krebsbach stated that she would prefer a monument sign because a monument sign would more closely match signage in Page No. 17 March 19, 1996 the industrial park. She also asked that there be no signage on the interstates. Mayor Mertensotto informed Mr. Cronin that the big problem on this site was variances for the amount of signage, and as far as the site is concerned Council has agreed that in order to develop it, given the three frontages, variances are necessary. Further discussion was continued to April 2. NDC -4 Council acknowledged a memo from Interim Administrator Batchelder regarding a proposal for cable franchise extension and system rebuilding. Mr. Mike Sokol, the city's citizen representative on NDC -4, was present for the discussion. Mayor Mertensotto stated that the reason the issue is before Council is that NDC -4's Executive Director, Jodie Miller, sent a letter to all member cities asking for a response by March 15 on whether the cities will support extension of the existing franchise or hold off. He further stated that he attended the recent NDC -4 meeting, where there was a good discussion about what is proposed and what the benefits are. He did not think the commission should proceed with re- negotiations, because if U.S. West succeeds in purchasing Continental, Continental would possibly have to dispose of the franchise and there would be another operator. He felt that if Continental agrees to give NDC -4 the PEG costs, it would still be a pass - through that the customers would pay. He felt that Continental is not giving NDC -4 many extra things but is building up the sale price and the extension would probably make it more expensive. He stated that the new legislation permits telephone companies to be involved in cable, and all 750 megahertz upgrading would do is increase the number of channels. He pointed out that Continental is currently installing fiber optics. Mayor Mertensotto stated that the current franchise ends in March, 2000, and the NDC staff would like to have an extension to the year 2007, but he has not heard any complaints on quality of transmission of the system. He felt that the quality of the current system is good and he could see no reason to upgrade . Councilmember Krebsbach asked what improvements there would be if the fiber optics and megahertz upgrade go through - for instance, could customers video through the Internet. Mr. Sokol responded that the increase in the bandwidth to 750 megahertz will allow the future cable operator to provide additional services to the community and a new way of getting telephone and Page No. 18 March 19, 1996 data services. He explained that as a commission, NDC -4 does not have regulatory power over the telephone or data services. He informed Council that under the proposal that was presented by Continental, Continental would remain obligated to pay 5% of its gross to NDC -4, and that would continue until the year 2007. What Continental has proposed that is not part of any federal or state law or other obligation is payment for the PEG access grant of several hundred thousands of dollars of support for the public and educational channels which they are not obligated to provide. He stated that NDC -4 is looking at how it would fund those services if there is not provision in the franchise, and if the new cable company indicates it would like to renew the franchise, the federal law is weighted in favor of the cable company. He explained that NDC -4 is trying to figure out who it will be dealing with in six months. Mayor Mertensotto responded that the commission has to start in 1997 on franchise renewal but that does not mean that the process has to start three years in advance of the franchise expiration or that it must be approved in a month. He stated that all seven cities have agreed that they would not withdraw through the franchise period but that does not say they will not withdraw after the franchise extension. Councilmember Huber stated that while he understands what Mayor Mertensotto is saying about the situation with the change in ownership, the pass - through cost was the last thing Continental gave in on. He explained that Continental was very strongly opposed to putting that into the rate, the reason being that they compete on prices and whenever the rate goes up, even by pass through, they have more difficulty competing. He further stated that in terms of complaints from customers, NDC -4 gets very few but most of them are on channel capacity. He pointed out that cable bills are passing through Congress unanimously and there is a huge momentum in Congress to drastically reduce government involvement in cable. He felt that NDC -4 would have considerably less leverage and negotiating ability in two or three years, and stated that he would argue that no one knows who the service provider will be. Mr. Sokol stated that it is very clear under federal law that telephone companies cannot operate a cable company in the same service area. Mayor Mertensotto responded that he does not think Continental is giving anywhere near as much as it is getting, and that the pass through costs them nothing and paying the $300,000 PEG access over seven years costs them little. Page No. 19 March 19, 1996 Councilmember Huber responded that Continental's rate increase would make it less competitive than satellite, and what it really gets down to is what kind of cable operation does the city want to have and how does it want to pay for public access, through cable rates or payment by the whole community in the levy. Mr. Sokol stated that there is no organization that is willing to offer to broadcast public meetings to city homes, and some way must be found to continue support for those programs. Mayor Mertensotto responded that he believes that is speculation and does not think there will be a guarantee from all seven cities that no one is going to drop out of NDC -4 in the year 2000. He further stated that there is no agreement that all seven cities will remain members. Councilmember Krebsbach asked if the upgrades will provide a connection to the Internet. She stated that she would hope that is a part of the package. Mr. Sokol responded that Continental will not make a commitment at this time. He explained that it is a hybrid system where all the coax goes to a junction box and Continental says that it is more cost effective than bringing fiber directly into the homes. He noted that 750 MHz is state of the art, and if NDC -4 goes forward with this it would result in a state of the art system for seven additional years plus a commitment from Continental that there will be PEG access as well. He explained that it is not an exclusive franchise but NDC - 4 wants to know what the commitment is for a certain period of time. He further stated that the commission feels comfortable dealing with Continental, and while he is not 100% sure this is the right thing to do, but in terms of getting state of the art and dealing with a company NDC -4 knows, it is a better scenario than in three yeas dealing with a new company from whom there would be no commitment for PEG funding. He stated that the commission needs the help of all of the cities in determining if there will be a Joint Powers Agreement that extends beyond the years 2000. Mayor Mertensotto responded that West St. Paul has indicated that it is going to negotiate on its own in the year 2000. Councilmember Huber stated that that is fine, they have to decide what they are going to do and the other cities will have to address it. i Mayor Mertensotto asked what mechanism is in place to address whether a city stays in the group or not. Page No. 20 March 19, 1996 Councilmember Huber responded that that is an issue that the cities have to discuss with each other and is not an issue for the Commission to discuss. He further stated that the cities have to sit down to see if they can get an agreement, and he felt that if the group walks away from U.S. West it would be difficult to then discuss the Joint Powers Agreement. Mr. Sokol stated that he really thinks all of the City Councils must be involved. Councilmember Huber stated that he believes the city should go forward, but once that decision is made, the Joint Powers Agreement should be re- worked and then action should be taken on franchise renewal. No action was taken. LAND ACQUISITION Council acknowledged a memo from Treasurer Shaughnessy regarding a letter from the MAC offering to sell a small parcel of property to the city that MAC acquired under the Part 150 Program. Mayor Mertensotto asked why the city should agree to pay the full value of the property since it has an avigational easement. Treasurer Shaughnessy responded that as the property currently sits, it is a worthless parcel, and that the city would have to ask for an appraisal if there is to be consideration of the purchase. He explained that it is an undersized parcel with an easement over it, and the only way it could be used would be in combination with the adjacent property. Mayor Mertensotto stated that Council should know what the price is first, as it likely has little value. He further stated that he would inform the MAC that the city might be interested depending on the price. He stated that he would like to know some facts and figures, such as a copy of the easement and the anticipated asking price for the parcel, before making a commitment. EAGAN PLAN AMENDMENT Council acknowledged a memo from Administrative Intern Hollister regarding a proposed amendment to Eagan's Comprehensive Plan, which would change the zoning and land use designation on 235 acres of land in northeast Eagan from Commercial Planned Development to Business Park. Page No. 21 March 19, 1996 Mayor Mertensotto stated that if Eagan is going to take that area for a highly intense use, the traffic problems would grow. He stated that a change in use would add to the traffic woes along Highways 149 and 55 and I -494, and Council must have some answers on how much traffic would be generated. Interim Administrator Batchelder responded that the procedure is to contact the Metropolitan Council and let them know that Council has concerns over traffic and needs more time than ten days to review the proposed amendment. He informed Council that Eagan's submittal to the Metropolitan Council indicates that they do not believe there will be an increase in traffic. He recommended that the city contact the Metropolitan Council and let them know that Mendota Heights thinks more attention should be given to the issue before action is taken. Staff was directed to contact the Metropolitan Council to inform them of Council's concerns over traffic and the need to fully analyze the traffic increase at T.H. 149 and I -494. TURNER'S GYMNASTICS Council acknowledged a memo from Treasurer Shaughnessy relative to a request from Turner's Gymnastics for city issuance of industrial revenue bonds to refinance the Turner's gymnastic center. Council also acknowledged a letter from Mr. Steve Fenlon on behalf of Turner's. Mr. Steve Fenlon, an Associate with Midwest Health Care Capitol and member of the Turner's Board, summarized his letter of request. He stated that he has suggested that the Cherokee State Bank and Turner's pursue the bonding. He explained that Dakota County has assured Turner's that when Turner's regains control of its building it would be taken off the tax rolls. He stated that when the structure was originally proposed and constructed, the Turner's board did not anticipate that there would be any real estate taxes on the building, as Turner's is a non -profit corporation. The building was taxed $34,000 per year and Turner's was unable to make mortgage payments and the bank foreclosed on the facility. He stated that he is requesting a qualified 5010 Industrial Revenue Bond. He informed Council that one of the requirements of the Cherokee State Bank was that they want to document this as a contract for deed, so the city would purchase the building from the bank and instantaneously sell it back to the bank. He stated the new financing would reduce the interest rate from 9% to 6 %. Page No. 22 March 19, 1996 Treasurer Shaughnessy informed Council that the tax capacity of the building is $23,000, and after fiscal disparities, the city's share of the tax is about $1,750 annually. Mayor Mertensotto stated that a number of years ago Turner's had requested approval for a neon sign along the freeway to increase the number of students. Mr. Mike Rosch, current president of the Turner's board, stated that he was on the board when the signage issue was raised. He stated that lack of students is not the reason the failure occurred - the enrollment was 180 at the time the building opened and it has grown to 560 students. He stated that signage on the building is adequate and would not be an issue any more. Mayor Mertensotto asked what would happen if there are problems with low participation in three to five years and the bank forecloses. He pointed out that this would cancel the contract for deed, but asked whether it would also cancel the industrial revenue financing. Mr. Fenlon responded that the financing would be canceled and the property would immediately return to the tax rolls. Mr. Rosch stated that Turner's has never had a problem with participation, and that the program has continued to grow. He informed Council hat gambling revenues were a big part of the Turner's funding before the building was constructed, and those revenues went from $8,000 per month in income to zero income. He informed Council that Turner's is now debt free and if it can repurchase the building, it can compete in the market place with the for -profit competitors. Mayor Mertensotto informed Mr. Rosch and Mr. Fenlon that there are fees required to be paid to the city as part of industrial revenue financing, and the city has never waived the fees for anyone. Mr. Fenlon responded that he has been involved in about 120 similar financing packages in the past seven years and all of his clients have been benevolent associations. He stated that Turner's would never ask the city to incur any expenses, but would hope that Council would look at this as an accommodation to a non - profit corporation. Mayor Mertensotto stated that the request carne on the add -on agenda and Council has not had much time to consider it. He informed Mr. Fenlon that Council will take the request under advisement and continue the discussion to April 2. Page No. 23 March 19, 1996 Council directed City Attorney Hart to prepare an overview, outlining the program as he sees it, what benefits there would be to the city, and what restrictions should be attached. CLOSED SESSION Councilmember Huber moved that Council conduct a closed session meeting on March 28 at 7:00 p.m. for the purpose of preliminary consideration of disciplinary action. Councilmember Krebsbach seconded the motion. Ayes: 4 Nays: 0 ADJOURN There being no further business to come before the Council, Councilmember Krebsbach moved that the meeting be adjourned. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 TIME OF ADJOURNMENT: 12:14 o'clock A.M. ATTEST: Charles E. Mertensotto, Mayor ka-thleen M. Swanson, City Clerk