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1995-05-16 Council minutesPage No. 4392 May 16, 1995 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, May 16, 1995 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, was held at 8:00 o'clock P.M. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. Mayor Mertensotto called the meeting to order at 8:00 o'clock P.M. The following members were present: Mayor Mertensotto, Councilmembers Huber, Koch, Krebsbach and Smith. FIRE DEPARTMENT AWARD Fire Chief Maczko introduced Mr. Adam Piskura, from the Minnesota Technical College System F.I.R.E./EMS Center. Mr. Piskura recognized the Volunteer Fire Department for the service it provides to the community, and presented Chief Maczko with the 1995 Fire Department of the Year Award. Several current and former members of the department and their families were present for the ceremony. 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 joint City Council /Planning Commission meeting held on May 9, 1995. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Smith moved approval of the consent calendar for the meeting along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the Fire Department monthly report for April. b. Acknowledgment of the Treasurer's monthly report for April. c. Approval of the issuance of an on -sale non - intoxicating 3.2 malt beverage license to Mendota Golf. Page No. 4393 May 16, 1995 d. Approval to reschedule the July 4 regular Council meeting to July 6. e. Authorization to schedule public hearings on liquor license application for the Marriott Courtyard Hotel, Mendakota Country Club, Mendota Liquors and Somerset Country Club for June 6. f. Approval of the issuance of a sign permit to Prime Net Data Systems, 2250 Pilot Knob Road, for a 17.48 square foot sign with a 20 foot setback from the property line adjacent to Pilot Knob Road. g. Authorization to remove the requirement for a hold harmless agreement from Colony Townhomes before execution of the Colony Townhomes storm water project Joint Powers Agreement along with authorization for execution of the agreement by the appropriate city officials. h. Approval of the list of contractor licenses dated May 16, 1995 and attached hereto. i. Approval of the list of claims dated May 16, 1995 and totaling $105,898.15. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 ST. THOMAS ACADEMY Mr. Joe Reymann, Environmental Studies Class instructor at St. Thomas Academy, and members of the class were present to inform Council on the results of the latest studies of Roger's Lake water quality conducted by the class. The students reviewed the results of several procedures and comparisons between the 1995 test results and those of two prior years. Of particular concern to the students was the result of the coliform test. Council was informed that the initial coliform test was positive and that results of subsequent testing are not yet known. Mayor Mertensotto expressed concern over the positive coliform test, stating that the presence of coliform could indicate that sewage is running into the lake. Public Works Director Danielson stated that staff will investigate whether there are any homes which have on -site sewage systems in the vicinity of the location where the test samples were taken. Page No. 4394 May 16, 1995 The students responded to Council questions regarding the testing procedures and age of the lake. BID AWARD - STREET Council acknowledged a memo and tabulation of bids received for OVERLAY the 1995 MSA street overlay project. Councilmember Smith moved to award the contract for the 1995 MSA street overlay project to Bituminous Roadways, Inc., for its low bid of $63,612.50 and for curb and gutter removal to Jim Clausen Construction for its low bid of $15.00 per lineal foot, with the provision that the city hold the bid securities submitted by the low bidder and second low bidder, releasing the security of the second low bidder upon execution of a construction contract. Councilmember Huber seconded the motion. Ayes: 5 Nays: 0 BARBECUE SETBACK Council acknowledged a memo from Fire Marshal Kaiser and Fire Chief Maczko regarding a request from Keller Property Maintenance Management Company, on behalf of residents in the Kensington Manor Homes, for a five foot variance from the Fire Prevention Code to allow barbecues to be located ten feet from several structures in the Manor Home development. Mayor Mertensotto asked why the setback is not recommended to be reduced for all of the units if fire officials are willing to recommend a reduction from 15 to 10 feet for some units. Fire Marshal Kaiser responded that the recommendation from Keller was the setback only be reduced for specific properties. He informed Council that he will be preparing a revised fire prevention code for Council review this year and could change the setback to 10 feet in the revision. Mayor Mertensotto felt that if the 10 foot setback is appropriate for some units it should be appropriate for all and recommended that the setback be uniform rather than granting variances. Councilmember Smith asked why the 15 foot setback was established and whether it applies just to decks and balconies. Fire Marshal Kaiser responded that the setback was established in the state fire code in the 1960's based on a recommendation from Insurance Services. He stated that the city's code applies only to multi- family units where there are balconies above. He explained Page No. 4395 May 16, 1995 that the code does not allow barbecues on balconies. He stated that the request applies only to the Kensington Manor Homes and that the management of the apartments, etc., in Kensington require people to keep their barbecues at a 15 foot setback and in specific locations. Fire Chief Maczko stated that the ordinance has been in effect for eight years and this is the first request to change it. He informed Council that he would prefer that variances be granted on a case by case basis where hardship exists, stating that in the case of the Manor Homes there is a hardship. He stated that each year there are three or four instances of problems caused by propane tanks, and from his perspective if a 10 foot uniform setback is established it would be better than no setback. The ten foot distance would be from all combustible materials, including balconies. Attorney Hart stated that regardless of what is done, there is no statement by the city that a 10 foot setback will be safe in all circumstances, but rather that 10 feet is a minimum setback. Councilmember Smith stated that if a 10 foot setback is established, the code should emphasize that it is a minimum setback and good judgment must be exercised. Mayor Mertensotto stated that the 10 foot setback would be from all points of a structure, including overhangs, balconies, etc. Councilmember Krebsbach moved to direct the Fire Marshal to prepare an amendment to the Fire Code to provide that outdoor open flame barbecues must be set back at least a minimum of 10 feet from any part of a structure. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 SPRINKLING BAN Council acknowledged a memo from Civil Engineer Mogan AMENDMENT regarding requests from the New Concepts Management Group, on behalf of the Kensington Carriage Board of Directors, and from the Victoria Highlands Townhome Association for modification of the city's sprinkling plan. Mayor Mertensotto stated that the request to water at night is often raised since there is less use of water at night. He pointed out that in the case of Kensington and Victoria Highlands , circumstances are different since there are odd and even numbered units that are contiguous and there is question over how the sprinkling systems Page No. 4396 May 16, 1995 could be turned on for just one area at a time. He explained that the applicants would like to turn their systems on at midnight and run them until 6:00 a.m. Public Works Director stated that they would like to use their collective six hours of sprinkling time once a week because they have difficult watering systems. Councilmember Smith moved to grant permits to Kensington Carriage Homes and Victoria Highlands Townhomes for a sprinkling plan different from the city's Modified Sprinkling Plan to allow them to use their allocated six hours per week of sprinkling time between the hours of midnight and 6:00 a.m. provided they file specific plans with the city, and to authorize staff to revoke the permits if there is any deviation from the submitted plans. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 CURLEY /SOS SITE Council acknowledged a letter from the Stuart Companies requesting the city to make TIF available for development of the Curley /SOS site by the Dakota Bank, along with an associated memo from Administrator Lawell. Mr. Stuart Nolan, from Stuart Companies, and Mr. John Seidl, President of Dakota Bank were present for the discussion. Mr. Nolan stated that the bank owners have acquired an option on the properties. He explained that he is a developer and approached the owners of the sites several years ago about developing the site but finally gave up. He stated that the bank project will not make sense economically without TIF assistance, and for this reason the bank owners would like to discuss the matter with Council before going forward with the zoning processes. Mayor Mertensotto responded that, in his letter, Mr. Nolan states that site work, street construction and utilities are estimated at $645,000 and clearing of the sites will not exceed $25,000 yet he is asking for $1 million in TIF. Mr. Nolan responded that site work and utilities are estimated at $645,000 and he did not anticipated that demolition will exceed $25,000. He stated that clean up cost is an unknown, which is why he was vague in that part of the request. He further stated that if Council gives tentative approval to $1 million, subject to the bank Page No. 4397 May 16, 1995 getting firm costs, he would know there is sufficient funding available. Mayor Mertensotto asked why Mr. Nolan is asking the city to undertake the clean up costs. He asked if soil tests have been taken. Mr. Nolan responded that soil tests are underway. He stated that he understood that the city has agreed to clean -up costs as part of the Duffy proposal for the site. He further stated that with the cost of the land and the high cost of clean up it does not make sense for the bank or anyone to buy and develop the land. He stated that the property has languished for years and knowing the property sellers, he believes they are prepared to sit on it for years unless they get their price. Administrator Lawell stated that the previous proposals have always envisioned city participation in utilities and all past discussions have been that the current owner would acquire Superfund monies to assist in the clean up. Mayor Mertensotto pointed out that the Standard Oil station had $40,000 in costs for clean up. He asked if there is any funding available from the state. Mr. Seidl responded that he understood that there was a purchase agreement pending for the city to acquire the site. Mayor Mertensotto stated that the city made appraisals and the owners were asking the city to not only buy the land but pay the costs as well. He pointed out that if this was desired, the city could have acquired the land years ago on its own. Mr. Nolan stated that the increment will pay the TIF back over ten years and if the cleanup costs are less or non - existent because of Superfund monies, or if the current owner can be made responsible for the clean -up, that would be fine. Mayor Mertensotto stated that he is shocked that Mr. Nolan and the bank would ask the city to pay for the clean-up. Mr. Nolan responded that he can investigate Superfund availability and if the city is unwilling to assist in clean-up, he would like an expression of what Council is willing to do with TIF. The bank would then determine whether development is financially feasible. Page No. 4398 May 16, 1995 Mayor Mertensotto stated that the preliminary site plan shows one parcel for a bank building and another with a gas station and two outlots. He asked how the outlots are going to be developed. Mr. Nolan responded that Outlot D will be used for street purposes. The bank is initially proposed as a two story structure with underground parking but is being designed so that there can be a future third story. In that case, Outlot C would have to be used for parking. He stated that the bank would like the option for Outlot C to be separately platted from the building site so that they can come back with a proposal for development of the outlot if a third story is never built. Mayor Mertensotto responded that Council would not give any commitment to future approval of a third story. Mr. Nolan responded that the bank would have to deal with that in the future and that Outlot C could be developed at some time in the future. Councilmember Smith stated that she and Councilmember Krebsbach had indicated at a prior Council discussion that they would be available to meet with the bank representatives, but they were not contacted. Mr. Nolan responded that he met with staff last week but the two Councilmembers could not attend the meeting. Administrator Lawell informed Council that TIF legislation currently being discussed by the legislature puts some urgency on all pending TIF applications. He explained that the applicants are present to see how willing Council is to consider availability of TIF for the development. Councilmember Krebsbach informed Mr. Nolan that she would like to see a full triangle of green space at the corner of the development. Mr. Nolan responded that the gas station could be moved back to Outlot C and the road could be moved closer to the corner. He explained that he is primarily present to discuss TIF and in the event something is done by the legislature to preclude TIF, perhaps an expression on TIF by Council would grandfather the project. Mayor Mertensotto stated that discussion on TIF is premature, and that agreeing to participate is one thing but participating to the extent of $1 million is quite another. Page No. 4399 May 16, 1995 Mr. Nolan suggested that the clean up be left off and the discussion focus on what is currently known. Councilmember Huber stated that $645,000 is still a high level of participation. He pointed out that the existing bank facility will be vacant if a new building is constructed, and Council must think about how much money it wants to put in at the Curley site. He stated that Council needs to talk about all of the questions before giving a response. Mr. Nolan stated that he does not know that the bank building will be vacant or for how long, but the building will still pay significant taxes and the new building would pay at least $100,000 per year more in taxes than the Curley /SOS sites currently contribute. He stated that taxes on the new building would pay back the TIF in six years and the city would be getting rid of an eyesore. Councilmember Smith stated that she does not think that the proposed bank use is in question and believes it would be a good use, but that she does not believe the city should be willing to participate in the environmental clean -up of the site. Also, she stated that generally the Council receives more specific information on TIF details and a better breakdown of costs. She pointed out that Council has not received any information on income that might be generated for the TIF district. Councilmember Smith stated that she believes all of the Council would feel better about the proposal if it had an idea of a use for any vacant parcels and whether any additional TIF may be requested for Outlot C. She informed Mr. Nolan that she could not commit to the requested TIF amount nor could she define a TIF amount with the information that has been presented. Mr. Nolan responded that the bank is not planning to ask for additional TIF and that he realizes that the proposal does not give as much information as Council would like to see but the package was put together quickly so that it could be considered before the legislature acts on TIF. Councilmember Krebsbach stated that the applicants have submitted a request for $1 million and a drawing of the layout and some general costs, so Council must exercise prudent judgment by being cautious on the TIF request. She informed Mr. Nolan that the applicants should not confuse that with thinking that Council would not welcome the bank to the site and that she would be interested in the city providing some level of support but that $1 million is an extraordinary and unworkable figure. She further stated that she Page No. 4400 May 16, 1995 would like to receive information on what the city has invested in other sites, and that she would like to keep the site a quiet corner which does not draw people off the freeway. She pointed out that input from the neighborhood with respect to a third story is necessary and informed the applicants that green space is very important to her. Mayor Mertensotto stated that two Council members have consented to be a committee but have not been contacted, and that Council needs more information before it can make a decision on the request. Mr. Nolan responded that he will set up a meeting with city staff and will investigate the availability of Superf ind assistance. MENDAKOTA PARK USE Council aclalowledged a memo from Administrative Assistant Batchelder regarding a request from the Mendota Heights Athletic Association (MHAA) to use Mendakota Park fields for baseball. MHAA representatives Charlie Godbout, Mike Bazal, Dave Ayers and Dick Arnold, were present for the discussion. Mayor Mertensotto stated that last spring Council reaffirmed its policy that there be no baseball at Mendakota Park because it was designed and intended for adult softball. He informed the audience that from what he understands MHAA is using 34 fields to take care of the demands and that there are over 1,200 children in the MHAA programs this year. Mr. Bazal informed Council that there are 1288 participants in the youth programs, including baseball, tee -ball and track and field, and that MHAA has had many inquiries from its members as to why the association is not using Mendakota Park. He stated that from all the documentation on the issue, it seems that it is an issue of baseball versus softball and that he struggles with a difference between a fly ball from baseball versus a pop fly from softball. He stated that he sees adults playing at Mendakota a very large amount of the time and the children very little and that the association would like to come to an agreement with the city. Councilmember Krebsbach asked if the city agrees to the request if the use would be by young men or if it would be for girls as well. Mr. Bazal responded that it would be joint use by all of the spring programs. Mayor Mertensotto stated that what Council is faced with is a policy decision on youth versus adult usage of the fields. Page No. 4401 May 16, 1995 Mr. Godbout distributed copies of a report on sources and uses of fields by the association. He stated that MHAA uses 14 school district fields and plays about 38 games a week at those fields and that it has no fields available during the week for practice. He stated that MHAA used to have fields available all week in Eagan but now can only use two fields in Eagan a week and they have no fields available there for practices. Seven private school fields are used, at which 20 games are played a week. He stated that MHAA. uses one field at Mendakota for softball on Mondays and one on Sundays and the transitional teams use Mendakota on Sunday nights. He stated that the rest of the week the fields are used for adult softball and that the Civic Center field is used for adult softball on Thursday evening. He stated that MHAA schedules 98 games a week on 37 Mendota Heights fields and 8 games at the Sibley fields. Councilmember Smith stated that Mr. Godbout has categorized where the fields are and that it is her understanding that the city has contributed heavily to the school district fields and their maintenance. Mayor Mertensoto stated that discussion on MHAA use of Mendakota fields is by youths aged 12 and under because they would not be able to hit balls out of the fields. Mr. Godbout stated that when MHAA schedules 98 games all over and negotiates with the school district and private schools and has fields taken away after the schedules are done, parents ask why they cannot go to Mendakota. Mayor Mertensotto noted that no MHAA games are scheduled on Fridays and Mr. Godbout responded that they are hard to schedule on Fridays because Friday is a day of religious observation. Responding to a question on what MHAA is asking for, Mr. Godbout stated that MHAA is willing to work with the fact that the city wants to have an adult softball program but the association board wants to say to its membership that MHAA has a priority at Mendakota and wants to work with city staff to secure field dates. Councilmember Krebsbach stated that the city needs to provide some adult softball, pointing out that this was an issue in the park referendum. She asked Mr. Godbout what he would want to limit adult softball to and in order to accommodate the association request. Page No. 4402 May 16, 1995 Mr. Godbout responded that MHAA needs at least three or four week nights. He stated that there are four fields at Mendakota, which means that MHAA would not have to go to St. Peter's and Visitation and St. Croix Lutheran, etc. Responding to a Council question, he stated that MHAA make donations for the use of the private facilities. Responding to a question from Councilmember Krebsbach about the city's softball program, Assistant Batchelder stated that there are.38 teams with in excess of 400 participants. He also responded to questions on the percentage of Mendota Heights residents on the teams, stating that some are entirely Mendota Heights residents but some have non - residents in order to fill out teams, and informed Council that there are about 150 Mendota Heights residents on West St. Paul teams. He stated that people tend to play on teams in cities where they work or with friends. Responding to a question as to what would happen if the softball teams did not use Mendakota, Assistant Batchelder stated that right now Mendakota is used Sunday through Thursday nights and weekend tournaments and a church league that plays on Friday night. He explained that Sunday night is set aside for MHAA. Of the twenty available slots at Mendakota, the schedules two games per field because there are no lights. He stated that there are 12 softball games scheduled, that MHAA uses six of the twenty slots, and Sibley Girls' fast pitch has two slots. He stated that the softball program uses Mendakota and the Civic Center fields. Mayor Mertensotto asked if the adult softball teams are only able to play at those two fields or if they could use some other fields. Councilmember Smith stated that MHAA has been resourceful at fording fields but that her concern is whether some of the resources would continue to be utilized and if other fields would be adequate for adult play. Mr. Godbout responded that the adults would fit on any of the fields. Mayor Mertensotto stated that MHAA anticipates an increase in participants next year and if the participation continues to grow each year they will run out of fields, which is where a problem comes from a policy standpoint. He asked whether it is more important to accommodate youth programs at Mendakota, and pointed out that the fields are not set up for youth baseball. He explained that the problem is to keep the youths happy or to have to give way to adult softball and whether Council should allow Mendakota to be used for youths up to 12 years old. Page No. 4403 May 16, 1995 Councilmember Huber stated that the reason that Council has said that there would only be softball at Mendakota was because of the safety issue. He further stated that last year there was a situation where a MHAA tournament was allowed at Mendakota because of confusion over scheduling. He pointed out that Mendakota is committed for 1995 and presumed that the Council is dealing with the matter as an issue for 1996. He felt that whatever the discussions are, Council should hear the concerns and gather additional input from the adult softball people. He stated that there are a few neighborhood park fields that might accommodate adult softball but this is not something that needs to be decided upon this week. He fiirther stated that if Council is looking at doing something to improve Mendakota to allow baseball it would be with the idea that the city may need to allow some baseball and at what level. He noted that Council would need to consider starting some improvements this year (backstops, etc.). Councilmember Krebsbach stated that she thinks Council should make a decision on netting and that she would like Council to look at finding the resources to pay for netting. She further stated that while the city certainly wants children to have leagues, she also feels that adults need recreation and that softball teams must have access to the Mendakota fields. Mayor Mertensotto stated that he is not certain that netting is the best solution but that Council must set a timeline for making a decision so that MHAA can know whether it can use some fields at Mendakota next year. Councilmember Koch stated that more input is needed and that while Council can say that it will definitely have something resolved for 1996, she could not say it is okay to deviate from the current policy without giving more thought on if and how to do it. She stated that the city has been trying to accommodate everyone. Councilmember Huber pointed out that Mendakota has the largest fields and asked if that is where the MHAA need is the greatest. He asked if the pressure point is for the little children or the bigger ones. Mr. Godbout responded that as the children get older the greater the need for more refined fields. He informed Council that there are about 60 children in the 13 year old group and 110 12 year olds. Page No. 4404 May 16, 1995 Mayor Mertensotto stated that by the June 16 meeting Council should decide about raising the back stops or adding netting and possible make a decision on the policy issue in July. Councihnember Smith felt that Council should work parallel on the two issues and make a decision by the end of July. Responding to a question from Mayor Mertensotto about softball fees, Assistant Batchelder stated that the city charges $400 per team, which pays for the program, and the American Softball Association also pays the city a fee. MENDOTA PLAZA Council acknowledged a memo from Treasurer Shaughnessy IMPROVEMENTS regarding continued discussion on the request from the Mendota I Plaza Associates for up to $200,000 in tax increment financing assistance to aid in constructing storm water and utility improvements at the Mendota Plaza, along with a proposed development agreement. Mr. John Streeter, representing Mendota Plaza Associates, was present for the discussion. Mr. Streeter infonned Council that the proposed agreement was developed by the city, and the developer's legal counsel has reviewed and agreed with it. Mayor Mertensotto stated that he realizes that the agreement was patterned after an agreement with another city but felt that it misses the point. He stated that the estimated total cost is $486,000 for the total project and that Mendota Plaza Associates has stated that it needs some TIF contribution. Council discussed $200,000, and there was some question of not doing a minimum amount of work to qualify for TIF. He did not feel that the agreement accomplishes the intent that if the developer does the full $486,000 of work the city would contribute the $200,000 TIF. City Attorney Hart responded that the minimum improvement is a defined term and it is only after the developer does the minimum agreed upon improvements, including landscaping, etc., that the city would contribute TIF. Mayor Mertensotto stated that the developer is talking about a $483,000 project and that he must commit to doing all of the work, which has been estimated at $483,000. He stated that after the work is completed he would receive $200,000 from the city, not, as the definition states, reimbursable costs. Page No. 4405 May 16, 1995 Mr. Streeter responded that Exhibit B to the proposed agreement describes the work, the projected cost, the cost to the Mendota Mall and the costs the city would fund. Attorney Hart stated that where there may be a difference is the definition. He stated that the city wants to define the entire project as minimum improvements, including landscaping and other items that are not defined in the agreement as minimum improvements. Mayor Mertensotto suggested that the agreement be expanded on what does not qualify for TIF and if the whole project is covered by the minimum improvements, then the whole $486,000 project must be completed before the applicant receives the TIF. Councilmember Huber stated that he faxed to the city his allocation of costs. Administrator Lawell stated that what that did was go back to the original (Menck Associates) statement from Mendota Plaza Associates that listed line items, and made a determination on what Councilmember Huber thought the city reasonably ought to pay. He stated that the bottom line was the cost on the city column was reduced to about $150,000. Administrator Lawell further stated that it would be helpfiil if Council would make a determination on the level of contribution. Councilmember Huber stated that his estimates include a contingency and that he tried to get to the parking lot cost. He explained that he is not comfortable paying for the parking lot and lights and did not see how the parking lot could be done for $226,000. He stated that he came up with about $307,000 for the cost of the parking lot. Administrator Lawell responded that it actually comes down to some very finite items and asked that Council tell staff what kind of broad items it would feel comfortable with including in the agreement. Councilmember Huber reviewed his allocations for Council and the audience. Mr. Streeter responded that in the bituminous item breakdown from Bolton and Menck, the grading that is to be done on the site is only to accomplish bringing the water to the storm sewer system. There is no grading being done other that to make the land drain to the system, and nearly everything in the bid sheet other than the Page No. 4406 May 16, 1995 bituminous and the landscaping is directly related to the drainage of the parking lot. Mayor Mertensotto stated that he would like to see plans showing how wide the entrance and turn lanes, etc., will be. Councilmember Smith stated that she was anxious to see some additional parking lot landscaping. Mr. Streeter responded that prior to meeting with a landscape designer, it would be nice to set aside an amount of money on which the design would be predicated. He stated that $6,000 to $7,000 of the bid is for seeding, grass, etc., and if Council sets an amount to be spent on landscaping, the landscaping would be designed to that amount. Councilmember Smith stated that Council has not has not received any agreement to creating landscaped islands in the parking lot. Mr. Streeter responded that he has no objection to putting in islands but their maintenance is costly. He explained that he would like to do something but does not know what Council's wishes are. Mayor Mertensotto stated that Council would like increased safety at the entrance, and now that money is being spent on safety there should also be some aesthetic benefit to the improvements. He stated that this is not a project starting out from scratch, and asked the city attorney what kind of detail is needed. Attorney Hart responded that this is not a pay as you go agreement and there are some provisions in the agreement which can be deleted but procedures for how and when city payments are to be made should be set forth in the agreement. Mr. Streeter stated that he has asked for an exception from the one- pay deal and that specifically deals with landscaping. He informed Council that he has never seen all landscaping in a plan last for a year and after some date, the landscape contractor will have to replace and guarantee before payment is made to him. He stated that he would like an escrow held out for landscaping. Councilmember Huber stated that he is concerned about knowing whether the center is showing a positive cash flow and whether Mendota Plaza Associates can afford the improvements. He pointed out that Council is being asked for public funds and he thinks the developer should disclose what the financial gain on the center is. Page No. 4407 May 16, 1995 He further stated that he would like to what would happen if the property is sold. Councilmember Smith stated that Council has had the problem about asking for substantiation of financing for other projects as well and that she understands why a business owner would not wish to divulge that information to the city because it would then become public information. She asked if the information could be referred to a consultant who would review it and give an opinion to Council on whether it is a necessity to have the funding. Mayor Mertensotto stated that Mendota Plaza Associates wants to do something to solve the water problems and has included doing something to improve safety at the request of the city. He noted that the only approach to solving the water problem that will work is to install storm sewer. Councilmember Huber stated that Mr. Paster has indicated that he could not afford to undertake the project in the foreseeable future without city assistance and if Council thinks the financing issue is important, it should have it in the agreement. If Council does not care about the financial situation of the center now, it would not participate in the project. Councilmember Smith stated that it is central to any TIF project that but for city assistance it could not be done. Attorney Hart informed Council that the statute for redevelopment districts did not require the but /for when the city's redevelopment district was formed. Mr. Streeter stated that the project is not going to be done without city assistance, not even the parking lot, and the only part of the parking lot constriction that the city would be paying for is that, related to drainage. He further stated that lighting is, buy law, an allowable TIF use in a redevelopment district. Administrator Lawell stated that the one thing he can see that might affect the numbers is that the city's engineering staff feels that perhaps some of the pieces of the storm sewer system have been over - designed, and if the system is redesigned to the point where the costs come down Council will be made aware of it. Councilmember Huber asked if there would be any interest in requiring that the TIF money be paid back if the center is sold in a number of years. Page No. 4408 May 16, 1995 Attorney Hart stated that the commitment is to the Mendota Plaza Associates and the value from the TIF cannot be transferred during the life of the contract. Mr. Streeter suggested that the agreement could be amended to stipulate that the center could not be sold until it has paid enough taxes to support the cost of the TIF contribution. Mayor Mertensotto suggested that instead the agreement stipulate that Mendota Plaza Associates or any successor cannot bring tax abatement proceedings during the life of the contract. Councilmember Huber felt that if Mendota Plaza Associates were to sell the center the owners could say that the increased value goes to the owner of the center without any money coming to the city. Mr. Streeter responded that the prices of a shopping center is determined almost entirely on its income. It was the direction of Council to require a letter from the Mendota Plaza Associates legal counsel regarding the allowability by law of the items listed for TIF and to modify the draft agreement for future Council review. IVY HILLS PARK Council acknowledged a staff memo regarding Ivy Hills Park pond area landscape design. Landscape designer Jim Hagstrom, from Savanna Designs, was present for the discussion. Mr. Hagstrom reviewed design changes which have been made to the design plan since the last Council discussion, and responded to Council questions. Public Works Director Danielson was directed to check the height of the berm to see if it needs to be at the existing height. Councilmember Krebsbach moved to approved the modified Landscape Design Plan for Ivy Hills Park and to direct staff to solicit bids for the pond restoration, in an amount not to exceed $20,000. Councilmember Huber seconded the motion. Ayes: 5 Nays: 0 WATER TOWER Council acknowledged a memo from Public Works Director Danielson regarding a change order to the water tower Page No. 4409 May 16, 1995 reconditioning contract to delete sand blasting and add power washing and the substitution of spot primer, full primer and top coat as recommended by Tnemec, the paint supplier. Council also acknowledged copies of letters from Tnemec and TMI Coatings. Public Works Director Danielson informed Council that staff asked for a letter from Tnemec which provides the city with a recommended course of action. A letter was provided before the paint adhesion testing was done and others after the testing was completed. He stated that in the May 16, TNEMEC stated that based on the adhesion test they have recommended a course of action. Councilmember Krebsbach felt that the May 16 letter is a disclaimer and asked if it is stated anywhere that the process and the paint will last ten to fifteen years. Public Works Director Danielson responded that it is very common to paint over an existing coating but you must rely on the adhesion. He fin ther stated that Tnemec would not state in writing that it would last ten to 15 years. Councilmember Huber moved to approve Change Order No. 1 to the water tank reconditioning contract, incorporating a requirement for annual inspection by a consultant prior to the end of the two year project warranty. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 Councilmember Huber noted that the pedestal of the tank was sandblasted, and at some point before the two years expire, someone should go up to the top of the tank to be sure the paint is adhering. TAX FORFEIT PROPERTY Council acknowledged a memo from the Clerk regarding tax forfeited parcels of land in the Centre Pointe development and the potential for use of some of the property for ball fields. Discussion on the matter was tabled to June 6 with the direction to staff to prepare information on delinquent assessments and the potential for tee -ball fields with bare minimum improvements. ADJOURN There being no fiirther business to come before the Council, Councilmember Huber moved that the meeting be adjourned. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 12:05 o'clock a.m. Page No. 4410 May 16, 1995 K hleen M. Swanson City Clerk ATTEST: ,24-4 � /047t� Charles E. Mertensotto Mayor