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1988-11-29 Joint Workshop minutesNovember 29, 1988 Page 1 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA Minutes of the Joint Workshop Held Tuesday, November 29, 1988 Meeting was called to order at 7:00 P.M. by Mayor Charles Mertensotto. The following members were present: Mayor Mertensotto, Councilmembers Blesener, Cummins, Hartmann and Witt. Also present were Planning Commission members Anderson, Burke, Duggan, Dwyer, Krebsbach, McMonigal and Morson. City staff included City Administrator Kevin Frazell, Public Works Director Jim Danielson, Treasurer Larry Shaughnessy, and Planner Howard Dahlgren. Others present were developer John Duffy, Bob Fields and John Ogren from Croix Oil, Tom Harley, attorney for Curley family, Tim Curley and the two owners of the SOS Convenience Station, Joan Kasa and Deede Schmidt. APPROVAL OF CITY HALL PAYMENTS Ayes: 5 Nays: 0 JOINT COUNCIL/ PLANNING DIS- CUSSION ON PROPOSED DEVELOPMENT OF LEXINGTON/ TH 110 AREA FINANCIAL ISSUES City Administrator Frazell reported on his recent discussions with the City Hall contractors and architects concerning deficiencies of water runoff in some areas around the city hall. Council noted receipt of a letter from architect Bob Pierce recommending that the currently due payment to Joseph Construction be made. Frazell added that it seems there are sufficient funds left in retainage for both the city hall general and mechanical contractor payments to cover correction of any deficiencies. Motion by Councilmember Cummins, seconded by Councilmember Witt to approve the current amount due to Joseph Construction Company of $51,841.31, and to Doody Mechanical in the amount of $11,447.50. City Treasurer Larry Shaughnessy presented and discussed his memorandum of November 25, regarding estimated costs of acquisition, demolition and sell -back of the land involved in the Lexington /110 redevelopment. A copy of that memo is attached and made a part of these minutes. Croix Oil representative Robert Fields indicated that they had sent a purchase November 29, 1988 Page 2 offer to the SOS station of $140,000, plus having Croix cover the cost up to $40,000 for clean up of the site. Fields said the offer was contingent on soil tests of the property indicating that $40,000 would be sufficient for any contamination clean up. There was then general discussion about alternative ways that the City might invest tax increment dollars in promoting the development. Fields suggested that if Croix Oil could enter a friendly purchase with the SOS owners, it would greatly simplify the proceedings of acquiring and redeveloping the SOS site. He said that the City could then put its tax increment dollars into the project in alternative ways. Developer Duffy indicated that he would provide a pro forma on the project for City analysis. There was then discussion about dedication and construction of the required service road. It was noted that Mn/DOT normally builds the service roads, but looks to the developer or City for dedication of the right-of-way. City Planner Howard Dahlgren noted that this proposal would correct a significant safety problem. Public Works Director Jim Danielson mentioned that the County intends to upgrade the Lexington/110 intersection in 1991, and that turn lanes and an improved signal system would be part of the improvements. PLANNING ISSUES Developer Duffy presented the original proposal for site development, along with an amendment labeled as alternative 1. Copies of the plan are attached and made a part of these minutes. Duffy indicated that alternative 1 brings the shopping center closer to Lexington Avenue, and intrudes less on the residential neighborhood to the south. The shopping center itself is extended further to the west, as an alternative to an independent restaurant site. It was noted that the developer proposes to use the same brick in the SuperAmerica November 29, 1988 Page 3 convenience store as has been used on the city hall at the northwest corner of the 110/Lexington intersection. A mansard roof sign band would be placed around the convenience store. The development proposes five parking spaces per 1,000 feet of development, versus the seven required in the Code. City Planner Dahlgren agreed that a requirement of five is fairly standard in the metropolitan area now and should be adequate for the development. For the benefit of the Planning Commission, City Administrator Frazell gave a brief overview of Council action and consideration on the proposed development to date. He reported that originally the Council had been adamantly opposed to a convenience store with gas pumps station at the intersection. However, a subsequent market analysis by the Maxfield Research Group had indicated that such an anchor tenant is highly critical to the success of the nearby shopping center. Frazell said that this, coupled with the relatively attractive design which had been presented by Croix Oil, caused the Council to be willing to entertain the proposal further. Councilmember Biesener responded that she felt there was a real value to the community in having a nice shopping center in this area, but that it was important to set a good tone in that this is the first commercial area people see when they come into the City from the west. Duffy said that 66% of the center was pre-leased, and that for the most part it is for a different type of tenant than those at Mendota Plaza. This development would have smaller, faster-paced tenants, and higher lease rates. John Ogren of Croix Oil presented the model of the type of SuperAmerica station they would build. It included a canopy bay with 18 gasoline dispensing hoses, and nine dispensing units. ( November 29,-1988 Page 4 Planning Chair Jerry Morson asked the developer if he had planned any neighborhood meetings so that neighbors could become familiar with the development prior to formal City consideration. Duffy responded that he would be willing to hold such a meeting. There seemed to be a general concensus of the Council and Commission that they did not want to see a large gas pump canopy oriented toward the road and as a prominent feature of the site. Commissioner Sandra Krebsbach offered that she felt the scale was simply too big, and was out of character with the surrounding neighborhoods. Councilmember Buzz Cummins indicated that he did not feel this corner was really a "quiet" area of the City, and if the center was well designed it could be welcomed by nearby neighbors. He too felt that the canopy should be moved and scaled more to service the surrounding area. Councilmember Jann Blesener said that she felt a good convenience store is needed in this area, but was disturbed by the scale and scope of the proposed development. John Ogren said that he felt people want to go to a station that looks like it is easy to get in and out of, and that is the reason for proposing 18 pumps. City Planner Howard Dahlgren then made a few brief comments on the proposal. First, he indicated that it was important that city officials see this as an opportunity to clean up an area that is a real eye sore for the community. He drew attention to the proposed commercial zoning line. In the case of a B-3 district, it is required that there be a 75 foot setback from any abutting residential district. Since it will be difficult to respect that setback requirement in this area, he said that much care must be taken for the transition from the commercial to the residential district. ADJOURN Ayes: 5 Nays: 0 November 29, 1988 Page 5 Dahlgren said that Mendota Plaza had been designed for larger shops, and that the current proposal was of a more shallow depth and would attract a different type of shop and market. As an alternative, Dahlgren suggested bending the shopping center somewhat to the south as it approaches Lexington Avenue. With regard to the filling station pumps, he reported on a Mobil station that his company had designed at Normandale and 84th Street in Bloomington, in which the pumps were to the rear of the street. He added that the layout had worked well, and it was a very successful service station. It was agreed that the owners of Curley's and the SOS could meet with City Treasurer Larry Shaughnessy to discuss more specifically the acquisition costs for the development. There being no further discussion, Councilmember Witt moved that the meeting be adjourned. Councilmember Hartmann seconded the motion. TIME OF ADJOURNMENT: 9:40 P.M. —Kevin D. Frazell City Administrator ATTEST: Charles E. Mertensotto Mayor