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1996-01-16 Council minutesPage No. 1 January 16, 1996 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, January 16, 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 Koch, Krebsbach and Huber and Smith. AGENDA ADOPTION Councilmember Koch moved adoption of the revised agenda for the meeting. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 APPROVAL OF MINUTES Councilmember Smith moved approval of the minutes of the December 19, 199 regular meeting with corrections. Councilmember Krebsbach seconded the motion. Ayes: 5 � Nays:0 Councilmember Smith moved approval of the minutes of the January 2, 1996 regular meeting. Councilmember Krebsbach seconded the motion. Ayes: 5 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 December 13, 1995 Airport Relations Commission meeting. b. Acknowledgment of the minutes of the January 9, 1996 Parks and Recreation Commission meeting. c. Acknowledgment of the Park Status report for December. d. Acknowledgment of the Fire Department monthly report for December. e. Approval to join the Blue Cross Managed Care group for workers' compensation. Page No. 2 January 16, 1996 f. Acknowledgment of the Treasurer's monthly report for December. g. Approval of the issuance of a cigarette license to Tom Thumb Stores.. h. Approval of the List of Licenses dated January 2, 1996 and attached hereto. i. Approval of the List of Claims dated January 16, 1996 and totaling $1,267,137.36. j. Approval of the issuance of a temporary on -sale liquor license to the Convent of the Visitation School for March 1 and 2, 1996, from 5:30 p.m. to 12:00 midnight, in conjunction with its annual Merrie Market Auction. k. Acknowledgment of the unapproved minutes of the December 6, 1995 meeting and the approved minutes of the November 15, 1995 NDC -4 special meeting. 1. Confirmation of the scheduling of the annual Board of Review for 7:00 p.m. on Tuesday, April 2, 1996. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 PUBLIC COMMENTS Mr. Ellis Abrahamson distributed copies of a letter from his legal counsel to the Ivy Falls Homeowners' Association regarding the transfer of the outlot to city ownership. Mr. Ellis stated that it is his attorney's opinion that the ballot that the Association's Board of Directors used to get approval of the membership for the transfer did not follow the parameters required by law. Mayor Mertensotto responded that while Mr. Abrahamson's concern may have merit, the city is not responsible to see that the association rules are followed and the city would have no liability because the association gives the city the deed. Mr. Abrahamson stated that he has asked the Board to call a meeting to discuss the issue. City Attorney Hart informed Council that he has spoken to the Association's attorney regarding the deed and Council's comments at the last discussion on the matter, but he has not yet received a written response. Page No. 3 January 16, 1996 Mayor Mertensotto responded that he believes the board was concerned about transferring the deed in 1995 to avoid taxes in 1996, but since the transfer has not been completed there appears not to be a rush at this time. MIDDLE SCHOOL Council acknowledged a memo from Interim Administrator Batchelder regarding a presentation by School District representatives on the proposed Middle School. Council also acknowledged a letter from School Superintendent Dr. Robert Monson and from Mr. Thomas Smith, 625 Hampshire Drive, regarding his concerns over the proximity of the proposed building to high voltage power lines which traverse the site. Mr. Smith, Dr. Monson, School Board Members Janice Cashman and Tom Weisbecker and Ms. Lois Rockney, Assistant Superintendent of Business, were present for the discussion. Dr. Monson stated that he is present to give a presentation on the preliminary site plans and building plans for the proposed new middle school. He explained that two new middle schools are proposed to be constructed in District 197 as the result of a bond referendum approved last spring. One of the schools will be constructed in West St. Paul, and the other on school district property located at the intersection of Huber Drive and Mendota Heights Road on 31 acres of land owned by the District. Dr. Monson distributed copies of the preliminary site plans and gave a slide presentation on the design of the proposed school and the values influencing the design. He explained that the school will house 800 children, in grades five through eight. He stated that at this time the plan is that the building will be situated on the 31 acres closest to a natural ridge and overlooking a pond. The bus entrance would be from Mendota Heights Road, and ten to eleven buses would also enter off Mendota Heights Road into a bus parking lot. The building is proposed to be situated within the trees that currently exist. He stated that the district is trying as best it can to nestle the building into the existing terrain, and the site will be kept as natural as possible, with the intent of retaining as many trees as possible. Dr. Monson stated that a proposed aerobic workout track will be available for use by members of the community to enjoy. He further stated that the district is also thinking about a small amphitheater overlooking the pond. He stated that there are three playing fields, one of which will be multi purpose for football, soccer and softball. He explained that there are hills along the west side of the property and along Huber Drive which will be maintained as much as possible so that the building will not be seen any more than necessary. He reviewed the design of Page No. 4 January 16, 1996 the building, explained that there will be fiber optics throughout and every classroom will have video voice and data capability. Dr. Monson stated that the site is currently being thoroughly reviewed by architects and groundbreaking will probably be early in June, with occupancy anticipated on or about July 1, 1997. Dr. Monson explained that power lines cross the property from southeast to northwest, and the district has authorized NSP to construct new poles to replace the existing "H" frame wooden poles with a single metal construction pole and to move the lines twenty feet higher than they are now. He stated that this is being done for two reasons - NSP has determined that the power lines are safe, but replacing them with the higher poles will make them exponentially safer. Also, there will be one pole in the ground rather than two H frame poles. He stated that the School Board does not believe the lines need to be moved since they are not presently a danger to anyone. He informed Council that the new poles will be constructed late this summer, and he believes they will add to the aesthetics of the site. He stated that the Board is trying to design the exterior of the structure to look like a home as much as possible, and it is the desire that the structure feel like home to the children and the community. He informed Council and the audience that the facility will be open to the community for use. Mayor Mertensotto asked the height of the existing power lines. Dr. Monson responded that they are 75 feet high, which is the right distance between the lowest line and the ground, so that distance will possibly be extended to a maximum distance of 95 feet to the arc of the pole. Mayor Mertensotto stated that in the 1960's there were service poles in his residential area and during a period of high humidity and winds, a low arc of the high line wires built up a coronna and discharged into the poles. He pointed out that this is an example of how important distance of separation is. Dr. Monson responded that the poles the school district is having built are sturdier poles, and the metal construction is heavier than the "H" frame wood poles. He stated that he believes that the wires are also more securely attached to the metal poles. Responding to another question from Mayor Mertensotto, he stated that there are no plans to light the athletic fields at this time. Mayor Mertensotto stated that when the school district was advising the public during the bond issue process, it was stated Page No. 5 January 16, 1996 that MAC assured the district that there was no problem with air noise. He stated that the land is within the LDN 65 contour and the city has an ordinance with sets requirements for added insulation and window treatment. He informed Dr. Monson that just before the end of the year, the city approved a $3 million project for Visitation /St. Thomas for air noise attenuation, and the middle school would not be that far from those schools. Dr. Monson responded that the school's window design will accommodate the extra 25 decibels of insulation being installed and the path of runway 22L is about 1/2 mile to the south. Councilmember Krebsbach commended the project architects on the way the building is positioned on the property. She stated that one of her goals was for a natural buffer, and she asked if any trees on the northwest will be removed as they are sparse now. She also asked about fiber optics. Dr. Monson responded that the district intends to preserve the existing trees, although there is much underbrush that will be cleared away and some trees will need to be removed for the building and the parking area. Regarding fiber optics, Dr. Monson stated that the fiber will be brought in from a central head end room and from there copper wire will be run into the classrooms. Councilmember Krebsbach asked Dr. Monson if he knew that U.S. West has a fiber optics building in Kensington Park and that perhaps Dr. Monson should check with U.S. West. She also asked what the building's exterior materials will be and if there will be a satellite outside. Dr. Monson responded that he anticipates that the school board will award bids in May with construction to begin about June I and is in the final process of looking at materials. He informed Council that the building will look like an executive home with a brick face exterior. With respect to the satellite question, he stated that there will probably be a satellite some time in the future but did not know if there will be one in the initial plan, as the question has not been discussed yet. Councilmember Smith asked if all the drainage from the impervious surfaces will be retained on site and if it will affect the ponds. Dr. Monson responded that he anticipates that all drainage will be retained on site, and that there is a steep hill that will serve as a buffer to the pond, so drainage will not be to the pond. Page No. 6 January 16, 1996 Ms. Rockney stated that there is a potential holding pond that has been designed by the architects to make sure that all drainage is held on site. Responding to a question from Councilmember Smith, Dr. Monson stated that the HVAC units will be on each floor and the general maintenance facility will be close to Mendota Heights Road. Councilmember Smith stated that the site plan shows a number of parking spaces for buses. She asked if the buses will be parked there or if they will only be there for loading and unloading. Dr. Monson responded that the buses will not be stored in the parking spaces but will be there just to drop off and pick up students. He stated that there is a hill along Mendota Heights Road and the buses should not be visible from the road. The buses will wait on the property rather than on the street. Councilmember Smith asked if the design accommodates a shift in grade levels should there ever be a need for higher grades in the facility as well in the future. Dr. Monson responded that he believes that two middle schools and two high schools will be what will be needed in the future but that the board is trying to design a school around an emerging philosophy and build adaptability into the building so that the building can be part of the solution fifteen years from now rather than part of a problem. Mr. Richard Gabriel and other neighbors of the site were present. Mr. Gabriel stated that he and his neighbors have had active interaction with the School Board and that he is very excited about the school. He explained that he and his neighbors, as a group, met with Dr. Monson to discuss their concern that the northern boundary of the school property have a barrier. He stated that a distance between the playing fields and the property boundary is very important and he and his neighbors are very concerned about it. Mayor Mertensotto informed Dr. Monson about the city's field needs. Councilmember Smith stated that it is very important to provide recreation opportunities for the city's youth but Council is very concerned about intrusiveness of lighting when it is close to residential neighborhoods. Page No. 7 January 16, 1996 Councilmember Krebsbach asked if the neighbors are satisfied with the buffering by the pond and the northwest corner. Mr. Gabriel responded that their primary concern is the north line along the ballfields. He further stated that he thinks many of their objectives can be achieved by good planning and the home owners are willing to plant trees. He stated that the land immediately south of him has a very steep grade coming down to his home and he is directly north of the ball field. He felt that the 100 foot distance between the field and the homes is very workable and although a tree buffer is a very good protection it would be costly. He stated that either a tree buffer or a berm is acceptable. Ms. Tia Hanson stated that she is on the middle school planning committee. She stated that the committee and the architects are also concerned and that she believes there will be a resolution on the issue and an alternative everyone will be happy with. Ms. Kathy Gesle, a neighbor, stated that she has four children who are interested in tee ball and baseball, and she feels it is just as important for her children to have room to run around in the woods. She stated that there is not much wooded property in the city and the neighbors have been able to enjoy the school property. She stated that she would like to continue enjoying it as well as the beautiful facility and the wooded property will be kept for the neighbors and for the school children. A gentleman in the audience asked how close the northeast corner fields will be to the road and what the terrain is like. Dr. Monson responded that the road is about 100 feet from the end zone and about 50 feet from the cement, and there are some trees in the area that the district would like to retain. There will be a steep hill going down to the playing field. Mayor Mertensotto asked when the final grading plan will be available so that the city can put it on display in City Hall. Dr. Monson responded that it will probably be finished in April and he will make a copy available to the city. Mr. Dave Jacobson applauded the design and stated that he likes the fact that the trees will stay. He asked if there will be a chain link fence or any other fence around the property. He also asked if the construction schedule will be released. Dr. Monson responded that there are no plans for fences. He stated that the district is in the process of putting design Page No. 8 January 16, 1996 documents out to bid, and that groundbreaking will be on June 10. Mr. Tom Smith stated that he has two safety concerns and a question. There is a steep slope leading up to the pond in the southwest corner of the site. He stated that the slope is about 15 to 25 decrees along the east edge of the pond directly down to the pond surface. His concern was that it is not heavily wooded and with 800 children they will likely do some exploring. He was concerned about the months when there will be thin ice and the steps that will be taken to provide safety. His second concern was that ingress and egress to the site is the worst spot on that stretch of Mendota Heights Road for visibility. He stated that the access to the main parking lot can barely be seen from the Huber Drive intersection and traffic goes quickly around that curve and there have been instances of drivers losing control of their cars during winter weather. He stated that he would like to see the city widen the road with a separated lane for traffic going east and a turn lane for traffic going west. His particular concern is the safety of buses coming out of the parking lot. Mr. Smith stated that his question pertains to power lines. He stated that the Board's action to raise the poles was reported by the Sun Current on November 29 and the account of the decision was confusing and contradictory. He stated that his question is what was the motivation in increasing the height of the poles and replacing the existing poles. Mr. Weisbecker responded that the Sun Current article was written on the basis of a phone call and he was misquoted. He explained that he abstained from the vote because at that time he was an NSP employee. Regarding the quote on EMF's, he stated that he specifically stated that it was an added benefit that the poles would decrease the magnetic fields - the original conversation regarding the pole replacement was aesthetics. Mayor Mertensotto stated that Dr. Monson mentioned that the Board has been assured by NSP that the children will be safe from risk, but that is the last source he would rely on as they have a self serving interest. He stated that scientists will say there is evidence of some problems and others who say they do not know of any affects or studies. He stated that he would like to get an opinion from an outside source that can tell the Board that there is no problem based on scientific data that is available today. He felt that it is very laudable to increase the height of the poles. Dr. Monson stated that EMF readings have been taken and analyzed and compared to the neighborhoods in the area and the readings on the site are significantly less than other parts of the Page No. 9 January 16, 1996 city. He further stated that the feeling is that if it is safe in other parts of the city, it is safer on the school site because the poles are being raised. He stated that the city and the school district have a common interest in making sure it is absolutely safe. Councilmember Smith stated that at least eight or nine months there will be school held five days a week for five to six hours a day at the site. She stated that the children will be spending considerable time in the vicinity of the power poles and safety should be addressed. She stated that there is a difference in the standard between residences and schools. Children and their parents have no choice once a school is located. If an individual chooses to purchase a home in the vicinity of power lines, that is his choice, but a child attending school has no choice. She thought it would be a very good idea to establish that the EMF reading fall below the projected standard at the location of the school. Dr. Monson responded that he would like to bring the very highest standard to the construction, and that the readings that have been taken standing immediately below the power lines are a fraction of the readings of household appliances. He stated that the district will take every action it can by situating the building as far away from the poles as possible and raising the heights of the poles. He stated that the Board is as concerned as Council is. Mr. James Losleben stated that the evaluations have been on the basis of 115 kv, and asked what assurance there is that the power company will not go to 230 kv in the future. He stated that utilities cannot get new right -of -way and if he were on the school board he would want a document from NSP giving 100 percent assurance that it will not increase the voltage. Councilmember Krebsbach asked if children are more at risk of cancer from EMF's because they are in a developmental stage as opposed to adults. Mayor Mertensotto stated that it is a legitimate concern and the school district should go to the best possible authority to get an opinion on risk based on knowledge available today. There being no further questions, Mayor Mertensotto thanked Dr. Monson for the presentation. Dr. Monson invited residents to come to the school district office at Sibley High School, and ask for him, to see the plans or ask questions. Page No. 10 January 16, 1996 HEARING - WENTWORTH Mayor Mertensotto opened the meeting for the purpose of a WATER MAIN public hearing on the proposed extension of city water along Wentworth Avenue between Delaware Avenue and Dodd Road. Council acknowledged the feasibility report for the proposed project, a letter of objection from Thomas Garrett, III, 540 W. Wentworth, and a memo and correspondence from the Public Works Director. Mayor Mertensotto stated that under the project, a 30" water main would be extended from the West St. Paul reservoir down Delaware to Wentworth, from Delaware to Dodd along Wentworth. The St. Paul Water Utility would be responsible for the extension to Delaware, and Mendota Heights is responsible for the segment along Wentworth. He stated that the installation of the watermain would give the city much more reliability, as now water is being fed to the city through a 12 inch line on Emerson and a 16 inch main from the reservoir. He explained that the main purpose is to get a new supply line to feed the city's water tank. Public Works Director Danielson reviewed the proposed project for the audience Mayor Mertensotto acknowledged the letter from Mr. Garrett and noted that Mr. Garrett states in the letter that the two Wentworth properties closest to Dodd will not be assessed. He stated that the properties currently have city water available from an existing main and cannot be assessed again. Public Works Director Danielson stated that the proposed project is the first phase of a total project to bring large volume water main to Dodd to solve a water supply problem in the city. He explained that the dilemma with this project is that typically there is normal sized watermain and the costs are distributed to both sides of the street. The city cannot recapture its costs in this situation, so staff has suggested using an assessment rate equal to that used for a large new subdivision with large lots. He informed Council and the audience that staff feels this is the most equitable method of assessing the project. Mayor Mertensotto asked for questions and comments from the audience. There was discussion over Foxwood Place connections. Public Works Director Danielson stated that St. Paul Water requires an individual service from the main and might allow the city to bring in a four inch main. Page No. 11 January 16, 1996 Mr. John Murphy, 650 W. Wentworth, stated that it seems to him that there was discussion about running water along Wentworth when the Marie Avenue water was installed. He stated that at some point there will be a need for sewer down Wentworth, and if water is to be installed on the south side and once the 30 inch line is installed the city cannot put sewer below it and would not want to put sewer lines on top of the water line. He also stated he and his neighbors feel that assessing the eleven properties on Wentworth for 9.3% of the total cost is to great of a percentage and they would like Council to reconsider the assessment rate. Mayor Mertensotto responded that he has suggested to staff that an appraiser be retained and that he use the Garrett property as a sample. Mr. Murphy responded that the property owners are not arguing the need for more water. He stated that another issue raised in Mr. Garrett's letter is that Wentworth will be closed for much of the summer and he suggested that the city have contract penalties for not meeting the completion date. He felt that there should be a guarantee that the project will be completed on time. He stated that the property owners would like Council to consider the assessment rate as the owners main point. Mayor Mertensotto responded that he feels Council should proceed with getting an appraisal done as to whether the proposed assessment is a reasonable assumption on value. Regarding the question over sanitary sewer, Public Works Director Danielson stated that the Wentworth properties will be getting the benefit of water because the project will bring in a line for the entire city. He explained that this is the only reason the city can afford to extend water along Wentworth. He explained that sewer would likewise be very costly to install, and his recollection was that in the past there was discussion about bringing sewer up from the south rather than along Wentworth. Councilmember Krebsbach asked if the neighborhood wants sewer. Mr. Murphy responded that he cannot speak for his neighbors on the issue but all of them have done extensive work on their septic systems and he did not believe any need sewer at this time. Mayor Mertensotto asked if staff can reconsider putting water on the north side so that in the future there would be sewer on Page No. 12 January 16, 1996 the south. He felt that if it is economically feasible, the watermain should be on the north side of the street. Mr. Murphy stated that he just wants to make sure that Council has thought about where future sewer could go. Mayor Mertensotto suggested installing two inch services. Mr. Richard Berens, 630 W. Wentworth, stated that from his point of view there is little value for the water main. He stated that he has a water system in place and so do his neighbors. He stated that his home is about 1/4 mile from Wentworth, so the chance of his home ever being connected to the system, even if he wanted to, would be very expensive. He stated that the property owners are not looking for something for nothing, but the water main would not provide him with something he wants or can use. He stated that it would be cheaper for him to dig a new well. He asked what Wentworth will look like when the project is done. Public Works Director Danielson responded that Wentworth will be restored to what currently exists. Mr. John McMahon, 620 W. Wentworth, stated that he agrees with his neighbors about the distance from their homes to the watermain. Regarding using the north side of the street, he thought the north side is more appropriate and it would also allow the residents to get into their driveways during construction. He asked about the sequence of events. Public Works Director Danielson responded that Council is being asked to order plans and specifications this evening so that the project can go to bid and construction can begin next summer. He stated that the assessment hearing will occur after the project has been completed. Mayor Mertensotto stated that the assessment hearing will be later on, and the city will have an appraisal done. He informed the property owners that they do not have to submit an assessment objection at this time. He invited the residents to contact the engineering department at any time to ask questions about the location of the line, access during construction or any concerns they might have. Public Works Director Danielson stated that he will send out an informational letter to all of the property owners based on the questions received tonight. Page No. 13 January 16, 1996 Mr. Berens asked if the city has considered widening Wentworth to provide a walkway. Mr. Danielson stated that it would be very costly and difficult to construct a walkway given the terrain, trees, etc. Mr. Jerry Mazzarra asked if the city would reassure the residence about impact on existing vegetation. Mr. Danielson responded that there will be an 8 foot trench, and he does not anticipate much impact on vegetation. Park Commission member Stan Linnell stated that the commission has discussed the need for a walk way along the golf course or on both sides of Wentworth. Mr. Danielson stated that staff can look at an off -road trail on the south side if the residents want to grant easements. Councilmember Huber pointed out that there is a steep drop off and construction would be very difficult. Ms. Gretchen Sjoholm stated that she is not being assessed for the project, but living at the corner of Wentworth and Delaware she is not interested in an off -road trail because people would come on her property. She stated that if the street could be made four feet wider she would support a trail. There being no further questions or comments, Councilmember Smith moved that the hearing be closed. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 Public Works Director Danielson informed the residents that St. Paul Water will install the 30 inch main. Mayor Mertensotto asked how the city would know it will not cost more to have St. Paul do the work than if the project were bid out. He stated that staff should test the market and go to bid, as Council wants to be sure the city will be getting the best price. Mr. Danielson responded that 30" pipe is not the kind of pipe that can be bought 'off the shelf," and it must be ordered immediately. Mayor Mertensotto stated that the specifications can state that it excludes pipe material because that is being purchased by St. Paul Water. Page No. 14 January 16, 1996 Councilmember Krebsbach moved adoption of Resolution No. 96 -06, 'RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS TO SERVE WENTWORTH AVENUE AND ADJACENT AREAS (IMPROVEMENT NO. 95-4, PROJECT NO. 9014). Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 Staff was directed to address the concerns of the property owners. DAKOTA BANK/SUPER Council acknowledged a memo from Treasurer Shaughnessy AMERICA along with a letter from the Dakota Bank and SuperAmerica regarding proposed redevelopment of the Curley site located at T.H. 110 and Lexington Avenue and TIF participation in the project. Bank President John Seidel and Mr. Sam Van Tassel, from SuperAmerica, along with Architect Jack Boarman were present for the discussion. Mr. Boarman reviewed concept option 3. He stated that the SuperAmerica will need planning action, but the bank meets all ordinance requirements. He stated that the proposed residential lots do not meet current standards, and a new acoustical screen and tree buffer will be developed if the residential use is developed. He stated that the bank will be 26,000 square feet on three levels, and the SuperAmerica will be a 3,500 square foot facility. Mr. Van Tassel described the proposed SuperAmerica, stating that it would be a typical SA facility consisting of a 3,500 square foot building with a car wash. There are three islands proposed in the front to fuel twelve cars at one time. Mr. Boarman stated that he is just beginning the design process. He stated that there is a schedule in Council's agenda showing community meetings and dates for Planning Commission consideration of the SuperAmerica site. Mr. Seidel gave a history of the project, stating that the bank has the property under contract and needs to act on the contract by April 1. He explained that the bank's agreement with SuperAmerica is that they will not ask the city to undertake contamination clean up. He stated that both the Curleys and SOS are under contract. With respect to the existing barrier wall and evergreen trees, Mayor Mertensotto stated that the existing trees are dying because the sun cannot get to them. He stated that the Curley Page No. 15 January 16, 1996 neighborhood is probably equally divided on whether to keep the buffer or provide a new one. He stated that another neighborhood concern in the past was that redevelopment of the site include a 30 by 30 area for the existing automotive repair service to continue serving the neighborhood. Another concern is over the decor of the SuperAmerica building - he stated that Council would like to see that the building complement the decor of City Hall. He stated that the number of gas pumps will also be a problem - the immediate market is the residents in the area, and possibly some traffic from T.H. 110, but Council does not want to see the site as being a highly visible corner for motor fuel service. He stated that he understands that SA is looking at constructing a facility on T.H. 55, and he could possibly see that as more of a major station. Mr. Seidel responded that he is working with the mechanic to relocate his shop, and as far as decor, one of the major priorities for the bank is that it wants to be in an area that is attractive. He did not want to have the bank on the site with SOS, and so he went through the effort of obtaining the site and working with SuperAmerica for a common goal of having an attractive site for SA. Mayor Mertensotto pointed out that outside storage of merchandise would be prohibited. Mr. Seidel stated that he needs some indication regarding the TIF issue. Councilmember Smith stated that she reviewed the TIF items briefly and is not quit sure. She stated that there was discussion about the frontage road and funding for that, and she needs additional input about frontage road costs. Public Works Director Danielson responded that staff has submitted an application for cooperative agreement and cost sharing to MN/DOT and they have not yet responded. He stated that the $169,000 is the owners' cost. Mr. Boarman stated that he looked at site work on the SuperAmerica site, the bank site and the frontage road as eligible TIF costs. He stated that there is $550,000 in total site work and the development will have about a $2.5 million market value. He explained that between now and March he will flesh out all of the issues and costs. Councilmember Smith asked what the elements of the site costs are. Page No. 16 January 16, 1996 Mr. Boarman responded that the access of the frontage road and the utilities that would relate, demolition of the existing buildings, 10% of contamination clean-up costs, the buffering and sound barrier, the potential excavation and grading and surface work that relates to the project itself are the site costs. Mayor Mertensotto pointed out that the Tax Increment Tax Flow and Pay as You Go Not extend out to the year 2010, but the Tax Increment District ends in 2006. Councilmember Krebsbach stated that as a member of the Council subcommittee which has been working with Dakota Bank and SuperAmerica, the number one Council concern is that the project be on a community scale and that it fit the city. She stated that she is interested in what the neighborhood thinks about the number of residential lots or whether multi- family would be more appropriate. She also questioned the car wash. Councilmember Smith stated that one thing that was not resolved was the hours of operation for SuperAmerica. She stated that it was SuperAmerica's preference to leave the facility open 24 hours a day, and she would like community input on that issue. Mr. Van Tassel responded that most of the suburban stores are open 24 hours and that the third shift sees more of the localized use. He stated that typically people who use the facility from T.H. 110 will be the morning rush hour, and the rest of the day it will generally be used by local residents. Mr. Boarman stated that he anticipates reviewing the site plans to take into consideration the input from the Council subcommittee. He further stated that the SuperAmerica drawings are being prepared so that site plans can be shown to the community at a neighborhood meeting on January 24. Mayor Mertensotto informed Mr. Seidel that on Pay -as- You -Go TIF, Council does not allow transfers and TIF terminates upon sale. He stated that Council does not permit the transfer of Pay - as- You -Go TIF. Responding to a question from Councilmember Huber, Mr. Seidel stated that Dakota Bank is currently a tenant leasing 7,000 square feet of space in its existing location. Councilmember Huber asked when people come up from the intersection if they are going to see a bank or a gas station. He stated that he would like them to see a nice bank structure with a Page No. 17 January 16, 1996 gas station beside it rather than a big gas station with a bank behind it. Mr. Seidel responded that the bank wants visibility from both directions. Mr. Boarman stated that SuperAmerica will be three to four feet lower than the bank entry level, and the two story building will clearly make the bank a strong structure on the site. He stated that he does not want the bank to be a back drop to the SuperAmerica. Mayor Mertensotto expressed Council's concern that lighting must be kept on the site. Councilmember Krebsbach was excused at 10:30 p.m. Mr. Van Tassel stated that SuperAmerica has done some unique buildings where it has received awards. He stated that city staff has suggested a hip roof on the canopy and this will be done because SuperAmerica wants to fit in. He stated that SuperAmerica has done some unique designs and will work with the city. Mayor Mertensotto summarized the questions: the amount of TIF being requested and how much TIF Council is willing to contribute; what the TIF contribution would be to SuperAmerica and what it would be to Dakota Bank. Councilmember Smith stated that the Curley site has been targeted for redevelopment for some time and this is an attractive proposal before Council. She pointed out that it is not clear that the TIF numbers which have been submitted will be the final numbers, and she stated that she would be willing to approve TIF for the redevelopment. She informed the applicants that Council asks that the TIF recipients draft an opinion to the city that the costs are allowable under TIF legislation. She noted that she believes this is the first TIF request for contamination remediation and she stated that she wants to make sure that that would be an allowable cost. Treasurer Shaughnessy stated that the TIF district runs through 2006 and that he has suggested that the city treat the frontage road similar to the west side of Lexington where the TIF picked up the city costs after the contribution from the state. He stated that if frontage road construction costs $160,000, the city has to pay 40% of the cost, but Council may want to extend the street further and add curb and gutter, etc. He stated that those are Page No. 18 January 16, 1996 costs that the developer cannot answer and staff cannot answer tonight. Mr. Boarman responded that the total site cost for everything is $499,000, so the TIF request will be that amount or less, depending on what is eligible for TIF. Councilmember Huber stated that the $499,000 will come down, since the district only goes to 2006. Mr. Boarman stated that the applicants would like to know whether Council will consider TIF for the project. Councilmember Huber responded that he would support the use of TIF and believes it would be appropriate for development of the difficult Curley site. Mayor Mertensotto stated that the amount of the contribution will be reflected in the type of development that will occur. He stated that whatever money the city puts into the project will be worth it, and he feels that Council can generally agree that there will be a TIF contribution. Councilmember Smith stated that the bonus with this particular proposal is that it is very likely that residences will be constructed on the additional lots. She stated that Council is certainly interested in the neighborhood comments, but what is being proposed is compatible with residential neighborhoods assuming a buffer can be established. Mayor Mertensotto agreed that there must be some kind of buffer between the residential neighborhood and the commercial site. INTRODUCTIONS Mayor Mertensotto introduced Administrative Intern Patrick Hollister. COUNCIL COMMENTS Councilmember Huber reported on NDC -4 Cable Commission discussions. Councilmember Smith stated that she has received calls from Friendly Hills residents who feel that the driving area on Decorah is two narrow, and that people do not stop at Pontiac. She suggested that "stop ahead" signs be installed and that there be more stringent police enforcement on Decorah. Page No. 19 January 16, 1996 ADJOURN There being no further business to come before Council, Councilmember Huber moved that the meeting be adjourned. Councihnember Smith seconded the motion. Ayes: 4 Nays: 0 TIME OF ADJOURNMENT: 11:13 P.M. Kathleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor