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2004-06-11 Friday NewsCELEBRATE MENDOTA HEIGHTS PARKS From everything that I hear, Celebrate Mendota Heights Parks that was held last weekend in Mendakota Park, was the best ever. Our Recreation Programmer, Teresa Gangelhoff did an excellent job putting the event together again this year. The turnout was great, and the people who carne, stayed longer this year— cars jammed the parking lot, the street, and Scott Patrick helped direct overflow traffic to find parking spaces oil the grass west of the parking lot. The weather cooperated, until the very last minute when some rain came as Teresa and Judy were finishing drawing the prizewinners. Teresa was knighted by the Winter Carnival Vulcan's while I was there, and she certainly deserved that. Teresa and Judy Wonick manned the event from the pavilion. Terry Blum, Mike Maczko and John Boland from the Parks Department helped with setup in the morning and then with take down after it was over. They also helped with MHAA's in-house ball tournament, which started on Friday and finished on Saturday — Terry tells me that MHAA played over 50 games those two days. Brian Convery and Neil Garlock were assisted by Janet Bolger and Nancy Bauer with the PD's bike rodeo. They also had an Explorer Scout who helped out, and Ralph Johnson did the bike safety inspections. They had their best turnout ever, when bikes, trikes, dirt bikes and even hot wheels showed up — kids and adults alike participated. Gordy Skjerven, Ron Katzenmaier, Scott Goldenstein, Rick Griep and Michelle Malkes from the Fire Department were all there to provide fire truck rides. Thanks to everyone who worked so hard to make this year's event such a memorable one — especially Teresa! TORCH RUN FOR SPECIAL OLYMPICS Jenny Hurst took over this year as coordinator for the Law Enforcement Torch Run for the Special Olympics. She took over front Larry Bridger (retired). Larry did still come to help otit with the event. Chief Aschenbrener, Jenny, Brian Convery and Larry all ran in the event. There were about 30 runners who began in Rosemount and ended tip here at City Hall where they had a picnic. The weather was great for running but not so great for picnics — it was freezing out there. Jenny invited all of us at City Hall to join in the picnic at the end. NURT TRAIL IN VALLEY PARK Dakota County will make a presentation to the City Council next Tuesday regarding the alignment of the North Urban Regional Trail (NURT) to be constructed by the County in 2005 along Highway 110 from Dodd Road to Delaware Avenue. Responding to a question generated at this week's Park and Recreation Commission meeting regarding the NURT trail segment through Valley Park, a County spokesperson said that this segment would be part of the NURT, and it would be accepted as is. She said that the County would be willing to work with the City at some furture time if the City desired to update or reconstruct the trail through Valley Park (Dodd Rd. to Marie Ave. to Lilydale Rd/Highway 13). LUXURY HOME TOUR This week began the Luxury Home Tour (June I 1-13, 18-20, and 25-27). Mendota Heights has two homes in the tour, both of them are located in Hidden Creek — see attached pages. If you have time, take the tour. Passports for the tour are $20 for all the homes or $.5.00 per individual home. Respectfully Submitted, James Danielson City Administrator Attachments: Just the Facts, Pipeline, City Council Meeting Agenda, SouthWest Review Article "Town Center's "village" atmosphere in jeopardy", TWinCities.COm (Pioneer Press) Article "Dispute slows project's pace" and Friday Fax. Issue # 25 June 10,h 2004 Special Olympic Torch Run A special thanks goes out to Officer Jennifer Hurst and retired Officer Larry Bridger for coordinating the fund raiser for Minnesota Special Olympics. The Officers coordinated approximately 30 volunteer runners including Jennifer Hurst, Larry Bridger and Brian Convery. They also solicited donations and sold t -shirts and hats to raise money for Special Olympics. The final leg will be Thursday June 17th when law enforcement officers and special Olympians run the torch into Bierman Field at the University of Minnesota to kick off the Minnesota Special Olympics Summer Games. If you're interested in making a donation to the Special Olympics contact Officers Hurst or Bridger at MHPD. Theft 06-04-20041233 hours Officer Scott Patrick responded to a local gas station on an employee theft. The employee was on videotape voiding a sale after the customer had left the store and then pocketing the cash. The preliminary investigation by management revealed that this may have been occurring for 3 months. The case has been referred to investigations for follow-up. Theft 06-04-20041140 hours A real estate agent contacted Officer Eric Petersen to report that a "for sale" sign had been taken from the front yard of a home that he had up for sale. There are no suspects at this time. DUI 06-04-2004 2320 hours While on patrol Officer Spicer observed two men loading a truck onto a flatbed trailer. After speaking with the men they pointed to a truck just down from them and described how it had been all over the road, struck the stop sign and then parked just before Officer Spicer arrived. The brake lights were still on and no one was visible in the truck. Officer Spicer checked and found the driver passed out behind the wheel with the car still in gear. After other officers arrived on the scene the driver was awakened after numerous attempts. The driver was not happy and was not very Issue # 25 June 10", 2004 cooperative. Officer Spicer did manage to get him to do one SFST and then placed him under arrest. After being read the Minnesota Implied Consent Advisory the suspect provided a breath sample which revealed a BAC of .23. He was transported to Dakota County Detox to be held for court. Bike Theft 06-04-2004 0016 hours Complainant reported to Officer Jeff VonFeldt that he had observed two males go into his garage and take his bike. The victim gave chase and managed to get a license number of the getaway car. Officer VonFeldt went to the registered owner's residence in WSP and retrieved the bike. The victim would not pursue charging. Detox / Assault / Possession of Drug Paraphernalia 06-06-2004 2340 hours While on patrol Officer Jeff VonFeldt observed a party known to him, staggering down the side of the street in Mendota. After watching him make it to the tailgate of a pickup truck, Officer VonFeldt continued on. A short time later a radio call was put out for an assault just down the road from the staggering drunk. The suspect was identified by his nickname as the party Officer VonFeldt had been watching. Upon returning to speak with him the suspect started out by giving Officer VonFeldt the finger and some choice words. The party was cuffed and transported to the victim's residence. Officer Spicer was on scene with the victim and had requested Healtheast Ambulance to provide medical assistance. A short time later a show up line up was done and the suspect positively ID'ed. The suspect was sent to Detox (.19 BAC) and cited for the other violations. DUI 06-06-2004 0267 hours While working a Safe and Sober Nightcap detail Officer Brian clocked a speeding vehicle going 94mph in a 55mph zone. The car was in the middle lane S/B on the freeway at the time he was clocked and there was only one other car on the freeway. The speeder was traveling so fast that he has to brake hard when he caught up with the other car. The car was stopped a short time later. The driver had been drinking. He gave up on the SFST's and was arrested for DUI. He was read MN Implied Consent and provided a breath test which revealed a BAC of .13. He was cited and released to a sober party. Motorcycle Accident / AOA 06-06-2004 1330 hours Officer Scott Patrick and Sgt Donn Anderson assisted the MSP with serious personal injury accident on Hwy 13 just north of Hwy 110. The motorcycle had been traveling N/B on Hwy 13 when the driver lost control causing her to flip the motorcycle. She landed in the S/B lane of traffic. Officers assisted the paramedics with emergency first aid including Officer Patrick assisting the crew while in route to Regions Hospital. Theft / Damage to Vehicle 06-07-20041915 hours Officer Yvette Tillery took a report from a person who left their car by the trail in Lilydale. Upon returning the victim found a window smashed out of her car and her purse was missing from the front passenger's seat. Only suspect was a w/m, 68, 165lbs with short brown hair. Have a great weekend! (D #/,& N E wsm LETTER The e Public Works Engineering June 10, 2004 Code Enforcement Public Works The Parks Crew picked up trash daily from the parks, dragged and chalked fields, striped foul lines on an as needed basis and cut grass. The week before and after the Parks Celebration they were busy setting up and cleaning up for the celebration and tournaments. They hauled more picnic tables to Kensington Park for upcoming picnics. They had to repair hockey boards at Friendly Hills Park because of vandalism. The Street Crew steam cleaned the grader and changed the cutting edges for next week's appearance at the Annual Trucks and Traveling Machines Night at Sibley High School sponsored by the Early Childhood Family Education Program. They cleaned out storm grates and moved a downed tree blocking the street on Orchard Place. They had to make room for off-street parking at the cross culverts on Wagon Wheel Trail. Rich and his summer helper cleaned sewers at Dodd Road from Third Avenue to Somerset School (Somerset Road look good). They televised the sewers at Delaware Avenue from Staples Avenue to Emerson Avenue (looked good) and televised the storm sewer between Somerset Road and Dodd Road (also looked good). They inspected the storm sewer catch basins (new construction) at the Gateway Bank. Tuesday at 7:00 P.M. Magney Construction changed out the gate vales at the Mendota Heights Road main lift station. Rich came in and shut off Northland Drive lift station to slow flow coming into the Mendota Heights Road lift station and everything went well. The new pumps and panel should be in and hooked up by the end of next week. Engineering The pavement was replaced on Wagon Wheel Trail at Rogers Lake culvert crossing. Two class 5 parking areas were also installed. Seed and an erosion control blanket were placed on the slopes. The project is now complete. The contractor working for the City of Mendota has completed the water main installation on TH 13 and installed sanitary sewer services to the lots. Silt fence was installed in Town Center in accordance with requirements of the NPDES permit. CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA CITY COUNCIL AGENDA June 15, 2004 - 7:30 P.M. Call to Order 3. Pledge of Allegiance 4. Agenda Adoption 5. Approval of the June 1, 2004 City Council Minutes. (Available Monday) 6. Consent Calendar a. Acknowledgement of the Approved May 11, 2004 Parks and Recreation Commission Minutes. b. Acknowledgement of Unapproved June 8, 2004 Parks and Recreation Commission Minutes. c. Acknowledgement of the Approved May 12, 2004 Airport Relations Commission Minutes. d. Acknowledgement of the NDC4 Meeting Minutes & Agenda. e. Acknowledgement of the May 2004 Treasurer's Report. f. Acknowledgement of the May 2004 Fire Department Monthly Report g. Authorization of Purchase Order for Sewer System Repairs for Freeway Road Addition. h. Authorization for Signature of Wetlands Health Evaluation Program (WHEP). i. Adoption of Resolution No. 04-33: "A RESOLUTION APPROVING A PREIMINARY PLAT AND VARIANCE TO CREATE ONE ADDITIONAL LOT AT 1850 ARVIN DRIVE" j. Adoption of Resolution No. 04-34: "A RESOLUTION APPROVING A CONDITIONAL USE PERMIT AND A VARIANCE FOR AN 864 SQUARE FOOT DETACHED GARAGE AT 1111 DODD ROAD". k. Adoption of Resolution No. 04-35: "A RESOLUTION ESTABLISHING DUE DATES FOR MATERIALS SUBMITTED TO THE CITY FOR PLACEMENT ON CITYCOUNCIL MEETING AGENDAS". I. Adoption of Resolution No. 04-36: "A RESOLUTION ADOPTING THE HIPAA POLICY AND APPOINTING A PRIVACY OFFICIAL". m. Approval of Contractor List. n. Approval of Claims List. 7. Public Comments 8. Presentation Dakota County - North Urban Regional Trail (NURT) 9. Unfinished and New Business a. Preliminary Discussion for an Electronic Sign at Henry Sibley High School. b. Case No. 02-11: Ross Fefercorn, Final Development Plan for a PUD for Buildings "D", "E" and "F" Resolution No. 04-37: "A RESOLUTION APPROVING A FINAL DEVELOPMENT PLAN FOR A PLANNED UNIT DEVELOPMENT FOR BUILDINGS "D", "E" AND "F" OF THE TOWN CENTER REDEVELOPMENT PROJECT". C. Discussion of Sanitary Sewer Backup Claim d. Adjourn to a Workshop for Discussion of 6 -Month Review. 10. Council Comments 11. Adiourn to Workshop Auxiliary aids for persons with disabilities are available upon request at least 120 hours in advance. If a notice of less than 120 hours is received, the City of Mendota Heights will make every attempt to provide the aids, however, this may not be possible on short notice. Please contact City Administration at 452-1850 with requests. This meeting is being taped by NDC4 (651-450-9891) and will replay on Friday at 1:00 p.m. and 7:00 p.m. on the NDC4 Government Channel 18 astxx.*^^�•.:.k';..�,�s '4 i:. `xn ._�, a n" P A Lillie Suburban Newspaper Y -' f Sunday, June < �. ,,' .;�. ` ..-� C . ., tK. s:a x �.a-:d,_ .,._.ax,4. Town Center's r age' atmosphere in jeoparON j, Seth Loy news editor Mendota Heights officials last Monday got their first look at architectural plans for three retail/commercial buildings in the Town Center development, and they didn't like what they saw. Gone was the "village" atmo- sphere present in an earlier artist's rendering — charming buildings with pitched roofs and a small, hometown feel. Instead, they found blocky buildings with flat tops and a less subtle commercial design. As Council member Jack Vitelli put it, "It looks like a Wal-Mart store:" The Town Center project, in the works for several years now, will be a mix of residential, retail and commercial uses at Highway 110 and Dodd Road. Two of the build- ings will be located at the south end of the development, on either side of "Market Square," a plaza with angled parking and one-way traffic circulation. Developer Ross Fefercorn said that the buildings will feature "one -of -a -kind, unique architec- ture," similar to the Caribou Cof- fee on Grand Avenue in St. Paul. The design is more consistent with nearby Gateway Bank, he added, which is more attractive to poten- tial tenants. He described an earlier artist's South -!Nest Review continued from page 1 described it as "a big sur- prise." "I don't support this archi- tectural plan at all," Vitelli said, "It's a box. It doesn't create the right image from the roadway. _ Basically, you've taken it to the mar- keters, and it's market-driven now. I'm disappointed and I don't support this at all." City Attorney Dan Schleck suggested that city council members submit their con- cerns to Fefercorn in writing, so that he has a chance to respond. In the end, council members asked Fefercorn to drawing as a "rough illustration" intended to show the character of the development, not the finished product. But Council member Sandra Krebsbach said that the new design was too much of a depar- ture from earlier discussions. "One of the things we wanted was a village look, that would fit into the neighbors' expectations," Krebsbach said, "This looks like more of a structured look.... I am concerned this is not the architec- ture the neighborhood bought into when the plan was brought to them." Fefercorn explained that pitched roofs are sometimes difficult to incorporate because water drips come back with a different plan, or at least with an expla- nation of why certain changes were made. Fefercorn said that three of the other office/retail build- ings he's working on could incorporate pitched roofs and architectural features aimed at "softening" the overall look of the development. The council did receive some good news at the meet- ing, as Fefercorn updated offi- cials on the various businesses that are interested in signing leases at Town Square: Cari- bou Coffee, Cold Stone Cream- ery, Bruegger's Bagels, Quizno's, Planet Beach (a high-end tanning salon), den- tal and real estate offices, and even a delicatessen. Construction on the com- mercial buildings is expected to start this fall and take nine to 10 months to complete. Fefercorn is working on a landscaping and signage plan for the project, which should be finished this month. Originally, the Town Center project was to be completed in 2004. Now, the city is looking at 2006 as a more realistic deadline, though some of the first residential tenants will move in this summer. Fefer- corn said that other deadlines depend on "leasing action." Mayor John Huber told onto the sidewalk, causing a pedes- trian hazard in the winter. Awnings should help soften the architecture of the buildings, he said, as well as shift water away from the sidewalk. "All of the buildings can have their own unique character," Fefercorn said, emphasizing the "rich brick details" and varied design of the buildings, some of which have recessed skylines, "We are not trying to create exact copies from building to building. We're trying to create a language within the development." Vitelli, who saw the design for the first time last Monday night, see Development on page 5 Fefercorn that the city would like to see an end to the pro- ject at some point, and that deadlines should be main- tained and not continually pushed back -- as with the landscape plan, which was originally due in January. Huber said he appreciates Fefercorn's "attention to detail," but that there's a lot of interest among residents in getting the project finished. "We appreciate that. We're a quality suburb. We're very, attuned to detail," Huber said. "But there can become a point where you become too hung up on detail, and you don't make any progress." Dispute slows project's pace TwinCitiesacnm Posted on Fri, Jun. 11, 2004 Dispute slows project's pace BY BRIAN BONNER Pioneer Press Page 1 of 2 By now, some Mendota Heights residents had hoped to be enjoying a showcase development that would be admired throughout the metropolitan area. The $60 million complex, assisted by $7.5 million in taxpayer money, had been conceived as a mix of retail businesses, office space and housing — all artfully arranged on a 23 -acre site. The painstaking design process, several years in the making, called for such amenities as a town square with a water fountain, ponds, trails and stone -wall entry monuments. There was to be absolutely no strip -mail look to The Village at Mendota Heights, also informally known as town center. The point was to create something so magnificent that people would gather in a village -like, Main Street atmosphere that most suburbs lack. The Village at Mendota Heights could still turn out that way, but city leaders have been getting some unwelcome surprises along the way. The project is not close to being done, as anyone driving by the northeast corner of Minnesota 110 and Dodd Road can attest. Completion may still be two years away, although some city officials and the developer say everything is on schedule. More troublesome than the slow construction pace, however, are proposed design changes that the developer, Ross Fefercorn, brought to the City Council earlier this month. Gone were pitched -roof designs on a cluster of three commercial buildings close to Minnesota 110. In their place were flat -roof designs that one City Council member, Jack Vitelli, derisively likened to a boxy Wal-Mart. Additionally, concerns are being raised about the signs on the project's half-dozen commercial buildings that will house retail stores or offices. Big and gaudy strip -mall signs — designed to draw passing motorists — are not wanted. Attractive, pedestrian -level signs are desired. "We could have put a strip mall in there a long time ago," said City Council member Sandra Krebsbach. Fefercorn's proposals would change "the look and feel of the whole center," she said. "Everything was designed to have a common architecture," Krebsbach said. What Fefercorn presented at the June 1 City Council meeting is "not what we agreed to as a city, and he was part of every one of those meetings." Council members have made it clear to Fefercorn that he must design something closer to the original concept. Fefercorn, in an interview, said he's confident that he'll complete an acceptable redesign within weeks. "I think the council's comments were valid and well -described and I took it very seriously," Fefercorn said. "I think it's time to move forward with the final pieces of planning retail offices ... in a matter of a couple of weeks, we will have resolved our design concerns." But others think it may be time to get a new developer. "The project needs to be completed in the manner it was sold to the residents of Mendota Heights," said Charles Mertensotto, a lawyer and former mayor. "I hope that the Mendota Heights City Council is not falling victim to a heavily subsidized developer, finding itself contractually unable to correct an indefensible situation." Mertensotto suggested that residents would be better served if the land, which the city still owns, "were sold to competing developers." At least one other resident, Sten Gerfast, also is unimpressed. He said the $7.5 million in taxpayer money hasn't bought much more than "mud holes" so far. http://www.twincities.corn/lnldltwincitieslnewsl8894861.htm?template=contentModuleslprintstory.jsp 6/11/2004 Dispute slows project's pace Page 2 of 2 But Mayor John Huber, who leads the City Council, thinks the city can still work with Fefercorn. So do colleagues Krebsbach, Vitelli and others on the five -member panel. "I'm confident we'll be able to work it out," Huber said. "You can't just throw the process out or overreact." Huber acknowledged that he is among residents who want to see a faster pace, as well as the designs they've come to expect. "We have communicated to Ross that we want to see more progress going on here," Huber said. "At the end of the day, I think we'll be happier with what we end up with if we keep going with the shared vision." Vitelli also expects the project will live up to its billing. "It's going to be beautiful," he said. He suspects that Fefercorn's modifications were driven by commercial tenants and an underestimation of the city's commitment to the village concept. In talks with Fefercorn since the June 1 meeting, Vitelli said, he became confident the developer is "going to come back with a good design that satisfies us and doesn't make tenants unhappy." A lot of taxpayer dollars and hopes are riding on the venture, especially for a suburb with only 11,434 residents. The public money includes $4.5 million to be repaid by increased property taxes on the new development. The city received a $1 million grant from the Metropolitan Council. Assessments and state road money are also part of the mix. While Mertensotto, the former mayor, has criticized the public subsidies as a "sweetheart deal" for the developer, City Administrator Jim Danielson said those investments laid necessary groundwork. "We acquired all the land, relocated the businesses, demolished them, graded the sites, installed the streets," Danielson said. "The public improvements made the site ready for redevelopment." Some pieces are already in place, including streets, streetlights and other infrastructure. Most prominently, senior citizens are living in the new 60 -unit, rent -subsidized apartment complex owned by Dakota County. Brian Bonner can be reached at bbonner@pioneerpress.com or 651-228-217.3. s'n( St f'airl sowces ^il Ri ;lls R­C,vc i up: � Nvv. Al ii CO I CS Coal http://www.twincities.com/mld/twincities/news/S894861.litin?template=conteiitModules/printstory.jsp 6/11/2004 WHAT THE FORTH ANNUAL LUXURY HOME TOUR A self -guided tour of 25 of the Twin Cities' premier builders showcasing one -of -a -kind homes homes valued from $900,000 to $4 million.Tour some of the metro's most spectacular homes and find endless ideas on home decorating, craftsmanship, technology, appliances, furniture, landscaping and more. WHEN June I 1®13, 1820, 25®7, 2004 FRIDAYS: 1-7 P.M. ® SATURDAYS AND SUNDAYS: NOON -6 P.M. 1 WHERE Twenty-five luxury homes located in Burnsville, Eden Prairie, Edina, Golden Valley, Hudson, Hugo, Medina, Mendota Heights, Minnetonka, Orono, St, Joseph, Sti I [water, Tonka Bay, Welch, West Lakeland & Woodbury. SEE MAP ON PAGES 11-78-11-79 no cacn >passpc Tickets for sin Tile Horne Tour Passport ice e $20 at each of the homes ,ites are available at the door for $5 per homE OUTLETS FOR LUXURY HOME TOUR PASSPORTS More than 100 Twin Cities Caribou Coffee Locations C�RiB�13U Ci?FfEE® www.luxuryhometour.net 612-371-5857 (voicemail) Minnesota The Luxury Home Tour helps support Public Radio Passport/ticket required for anyone age five and older No bare feet, shoes, strollers or cameras allowed in the homes. Please bring stockings; a limited number of shoe covers will be available upon request Produced by Minnesota Monthly Publications, tickets online: www.luxuryhometour.net June/July 2004 Midwest Home & Garden Ll 1 Steven Streeter, Justin Streeter, Donald Streeter & Kevin Streeter STREETER4 ASSOCIATES, INC, www, st re et e r -associates . c o m 952-449-9448 ESTIMATED HOME PRICE: ,600,000 (not including cost of lot) FINISHED SQUARE FOOTAGE: 5,600 This story -an d -a -half blend of modern traditionalism in Mendota Heights' 36 -acre Hidden Creek. Estates development is both casual and luxurious, classic and contemporary Its exterior of stucco and acrylic finish is nicely complemented by natural stone accents. Fireplaces in the living room and hearth room both feature custom-made natural stone surrounds. Double doors lead to the spacious owner's suite, where a rounded wall with glass inserts provides a spectacular view of the natural scenic area just outside. Other highlights include alderwood doors, Cambria countertops in the kitchen, dining room, owner's suite and laundry room, and a lower=level media room stuffed with state-of-the-art entertainment systems L52 Midwest Home & Garden June/July 2004 M .r 5 W x ,.lK � - j y ® 33' H a _Pr gVj It' yy i$f Y> C F R�r t C r� jj �l moi.. 'f W,��. .` yy _l - -'O'y ,�.Q �(e�"�• a„ F. s. k. �: �`• 3. x r.. i , �� t �e�E �:":'' :" t .v i..�k '��r.,.�,v" 'nh e IF- � .I'S R.. - a� - Steven Streeter, Justin Streeter, Donald Streeter & Kevin Streeter STREETER4 ASSOCIATES, INC, www, st re et e r -associates . c o m 952-449-9448 ESTIMATED HOME PRICE: ,600,000 (not including cost of lot) FINISHED SQUARE FOOTAGE: 5,600 This story -an d -a -half blend of modern traditionalism in Mendota Heights' 36 -acre Hidden Creek. Estates development is both casual and luxurious, classic and contemporary Its exterior of stucco and acrylic finish is nicely complemented by natural stone accents. Fireplaces in the living room and hearth room both feature custom-made natural stone surrounds. Double doors lead to the spacious owner's suite, where a rounded wall with glass inserts provides a spectacular view of the natural scenic area just outside. Other highlights include alderwood doors, Cambria countertops in the kitchen, dining room, owner's suite and laundry room, and a lower=level media room stuffed with state-of-the-art entertainment systems L52 Midwest Home & Garden June/July 2004 Jun 10 2004 17:30:52 Via Fax - W1 LMC _> 6514520940 Administrator Page 001 Of 001 -FridayFax- A weekly legislative upstate from the League of Minnesota Cities League Board holds special meeting to discuss LGA issue In a special meeting today, the League of Minnesota Cities Board of Directors unanimously adopted a position calling on the Governor and legislative leaders to convene a special session to address a need for a technical fix to the LGA distribution formula. In the 2003 special session Lax bill that contained the most recent LGA reforms, the legislature inadvertently failed to delete a paragraph dealing with the LGA grandfather. In administering the formula last summer, the Department of Revenue accepted letters from House Tax Chair Ron Abrams (R-I\/Iinnetonka) and Senate Tax Chair Larry Pogemiller (DFL- 1\/Iinneapolis) requesting that the 2004 distribution follow legislative intent with an apparent understanding that the 2004 legislature would fix the technical problem. During the 2004 legislative session, both the House and Senate tax bills contained the fix and in committee discussions of the provision, no one testified in opposition to the elimination of the paragraph. In addition, the House and Senate written summaries of the provision indicated that the deletion of the paragraph was an inadvertent omission from the 2003 Lax bill. Despite the non -controversial nature of the provision, the House and Senate never negotiated a conference committee compromise and therefore, the technical fix did not become law. Interpretation of the effect of including the paragraph is not entirely clear. However, under either of the two interpretations that the League has heard discussed, including the grandfather paragraph in the formula would reduce the June 10, 2004 Page I LGA distribution significantly for Minneapolis and St. Paul and to a lesser extent other cities primarily in greater Minnesota. Other cities, primarily in the metro area, would experience LGA increases. The League will post estimates of the impacts on our web site when they are made available. Administration officials as recently as yesterday indicated to us that they had not yet concluded how to interpret the law. In today's St. Paul Pioneer Press, however, the governor indicated that he would direct the Department of Revenue to interpret the law as drafted, including the grandfather paragraph. It is unclear whether this would impact the distribution in both 2004 and 2005 or just in 2005. Later today, we anticipate receiving official estimates from the Department of Revenue on the impact of this change. Unofficial estimates indicate that the change could redistribute approximately 8 to 10 percent of the LGA appropriation. During the League Board's deliberations today, members discussed the importance of following legislative intent as outlined in last summer's letters from the House and Senate tax chairs. Members also discussed the need for stability and predictability in the LGA formula. Given that the legislature did not act to correct the problem during the 2004 session and given the governor's statements in the paper today, it appears that a special session is necessary to have the 2005 LGA distribution follow legislative intent. The League will be communicating this position to the governor and legislators this week. For more information on city legislative issues, contact any member of the League oftvlinnesolaCiliesIntergovernmental Relations team. 651.281.1200 or 800.925.1122