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2024-09-10 CC Meeting Minutes WorkshopMOUND CITY COUNCIL SPECIAL WORKSHOP MINUTES September 10, 2024 The City Council of the City of Mound, Hennepin County, Minnesota, met in a special workshop meeting session on Tuesday, September 10, 2024 at 6:00 p.m. in the Council Chambers in the Centennial Building. Members present: Mayor Jason Holt, Council Members, Sherrie Pugh, Paula Larson, Kathy McEnaney and Kevin Castellano. Members absent: None Others present: City Manager Jesse Dickson, Deputy City Manager Maggie Reisdorf and City Attorney Scott Landsman. Centennial Building Discussion Mayor Holt introduced this item stating that the City Council continues to discuss the future of the City's Centennial Building located at 5341 Maywood Road. Landsman informed that since the last meeting this topic was discussed, he worked with a commercial real estate developer to get a general idea of what the building could sell for. Landsman provided a report on the findings. Landsman reviewed the report's four comparable properties that included one commercial property within the City of Mound not too far from City Hall. He explained that it was an old Frontier Communications building that was listed and marketed for $525,000 in 2022. He noted the three other properties that were located within Edina, Eden Prairie, and Eagan at marketed prices between 2M and $3.5M. He noted that these commercial properties are quite different and therefore the City Council should be mindful of those differences when comparing with the marketability of the Centennial Building. He informed that marketability is based in part of location to the metro, location, lot size, and other factors. Pugh mentioned that the Centennial Building currently backs up to a wetland and is not too far from the lake. She asked if the City should take into consideration all of the recent development occurring next to the lake and if a more environmental focus should be taken by avoiding additional development within/near the wetland areas. McEnaney stated that the location is not desirable and that the marketability of the property would be more in line with the low estimate provided within the report. Landsman explained that at this point in time, there is little information about the property's lot as a survey still needs to be completed. He also said that City would need to grasp how the lot would be subdivided as it currently shares the site with the current City Hall and neighboring park. He said next steps would involve including the City Engineer. Landsman stated that the City would have to determine how it would like to market the site and by whom. McEnaney said that it likely that the City would get the high amount for the property. She stated that if the City would only get the low amount, that it doesn't make sense to sell. She recommended marketing the current building to increase tenant use. Holt stated that the City should not be in the rental property business. Pugh said that the City may need the space in the future. Holt said that the revenue from selling the building could go to pay off current debt. He said that the City is barely breaking even on the current running and maintenance of the building with its current leases. Pugh informed that if in the future, the City decides it needs more space, it will cost a lot more and will be a lot harder in the future to get that space back. Holt mentioned the current City Hall building and how there is room within the upstairs of the building on the Fire Department side to remodel. Pugh explained that in the past, City Hall staffing was severely reduced and that now that the City is adding some of those positions back, they need to be mindful of space. She said that 98% of the City is build out and that the City Council needs to be mindful of the City's future needs. McEnaney informed that it would be helpful to tour the City Hall space and visualize any available opportunities for remodeling. She stated that if it is going to cost too much to prepare and sell the site and recoup those costs at the moment, then it isn't currently worth going through the process. Holt said that he was happy with the low estimate. He said that he has talked with some interested people. He agreed that the City should look at what it would take and cost to get the site ready and marketable, including survey work, rezoning, agreements, and more. Landsman said that he can research what the cost of a commercial developer marketing team would cost. He explained that the current holding costs of the Centennial Building for the City is minimal. He agreed that if it did sell and the City would need more space in the future, it would be expensive to get that space back. He added though, on the other hand, by redeveloping it, it could add to the tax base. Pugh stated that the City can't sell assets unless the future needs of the City are understood first. She said that they need to understand that first. She explained that it isn't just about the money that could be gained, but the quality services that they need to continue to provide. She said that they also need to be mindful of what would go in this location at it would significantly impact the neighboring properties and park areas. McEnaney said that once sold, the City would have less control over the site. Holt recommended a tour of City Hall. He said that there is plenty of room for renovations. Castellano stated that he is not worried about space. McEnaney explained that the City has 30 parks currently. She wondered if the City should consider selling some of that land as well since some of the spaces are vacant and aren't even used as park space. Holt stated that it is hard to get rid of park space. McEnaney informed that if the City Council is really looking to reduce the City's debt, that there are other options to consider as well. Landman said that the City could look into selling park space, but that the City would have to research each location specifically as to how the City currently holds them. He informed that it depends on how the City acquired the land, which can dictate how it can sell it. Holt said that he wants to move forward with getting estimates on what it would cost to prepare the site, including costs associated with the surveying process and subdivision process. Landsman informed that the City would also have to take into consideration an agreement for shared driveway access and parking. Holt said that once estimates are received, the City Council can come back to review those costs and determine how to move forward. Landsman stated that he would reach out a get an estimate on what it could cost for engineering work and commercial developer/reality/marketing work. Castellano stated that that makes sense Continued Discussion on Police Coverage Holt introduced this item to the City Council. He stated that the City Council has been discussing this item over the past several months. He informed that he recently had a meeting with the Mayor of Minnetrista, the City Administrator of Minnetrista, and Dickson. He informed that the meeting was held to discuss the feasibility of future police services with the City of Minnetrista's Police Department. Holt explained that the representatives of Minnetrista didn't seem very interested in pursuing this stating that they felt that the City of Mound wouldn't have a lot to offer in the switch. He said there was discussion as well as to how the Orono Police Department would lose half of their staff due to Mound moving to the Minnetrista Police Department. Holt explained that the Minnetrista Police Department is currently having trouble maintaining a full staff. He said that there was discussion on the possibility of attracting the Orono Police Department officers who would be let go to Minnetrista. Holt explained that the agreement between the two parties would be that of a Joint Powers Agreement (JPA), instead of the current contract agreement that the City has with the Orono Police Department. He stated again that it didn't seem that there was too much interest in making a change. He explained that if the City Council of Mound was interested, the Minnetrista representatives at the meeting explained that they would want a formal resolution of interest for the City Council of Minnetrista to consider. He informed that if approved by the City of Minnetrista, the City of Mound would be required to cover the cost of a formal study that would determine how the change would work. Holt explained that the political environment in the region at the moment has been focused heavily on emergency response and management. He went into detail about how the change would likely not save moving as far as contract cost. Holt said it would likely cost a lot of money for a study. He mentioned that as far as assets, the City of Mound, does have the old police station at City Hall. Pugh said that staff from the current Orono Police Department may not be interested in moving to the Minnetrista Police Department if the City made the change. Hold said that the City of Minnetrista wants to know why the City of Mound is interested in making a switch away from the Orono Police Department. He stated that they want to know why the City of Mound is unhappy with its current services. Holt explained that he is not unhappy with the Orono Police Department. He said he believes that the City of Mound has a good contract and that they serve the community well. He said he is not in favor of switching. Castellano stated that he hasn't received any complaints about Orono Police Department that would justify a switch to a new police department. He said that City wouldn't be saving any money and he is ok with the service. He asked if the City Council needed to get community input on the issue. Larson explained that as a long-time resident of the City of Mound, the first priority of the City Council is to the citizens of Mound. She informed that there has been bad blood between the Cities of Mound and Minnetrista for a long time. She said that they need to stop thinking about the finances of the City of Orono and the Orono Police Department. She said that the City of Orono has shown with its own Fire Department that they want to be alone and don't need our help. She informed that the City of Minnetrista doesn't have a Fire Department and partially relies on the City of Mound for its fire services. Larson stated that the City Council has to do what's best for its citizens and provide the best services. She informed that she is not a fan of the Orono Police Department. She explained that the City of Minnetrista needs the City of Mound's fire services and doesn't understand why they have no interest. She stated that by switching Mound's police services to the City of Minnetrista, both police and fire services together would be more efficient and effective. She discussed a referendum vote. She said that it would be best to have our own police department again, but acknowledged that it would cost too much at an estimated $20 million to start up. She said it would be a mistake to stay with the Orono Police Department. She said that it was unfortunate and unfair that the staff and City Council in the past pushed to get rid of the Mound Police Department. She said there should have been a referendum vote in the past to do so, but instead the decision was made by the City Council at the time. Larson stated that it is strange for the City of Minnetrista to say no when they need the City of Mound for fire services and that by combining both police and fire, there could be better system that is faster. Holt stated that the City Council can still pursue this option by passing a resolution of interest and sending it to the City of Minnetrista's City Council for consideration. Landsman provided a review of the City's current police contract and when notice would have to be given to the Orono Police Department about a discontinuation in services. Castellano agreed that it is their role to keep the community safe and provide services. He said that he hasn't heard anything bad about Orono Police Department and therefore if the City is concerned about specific things, why not address them with the Department. Larson said that there needs to be better communication between the police department and the fire department and therefore they need to be combined to be more efficient and effective. McEnaney stated that Holt went into the meeting with the City of Minnetrista with apprehension probably and informed that that is why she doesn't trust the information being reported. She said that she has no problem with the police officers. She questioned that the City of Mound would not have anything to bring to the City of Minnetrista's Police Department. She asked what the City of Mound brought to the City of Orono what that contract with written. Holt said that another discussion could take place and a meeting could include the entire City Council. Pugh stated that there needs to be a united front and a uniform message from the Mound City Council and not a separate one. She said that the City Council needs to talk about and think about the future of the City of Mound. She informed that there are things that the City of Mound has to offer such as the current police and fire station building. She said that the City Council has to be consistent with its message and work on a joint statement that is presented uniformly Holt agreed that it was important to be united. Holt stated that with the meeting time ending, that this item would come back to the City Council for further discussion at a future meeting. Adjourn Motion by Castellano to adjourn the meeting at 6:02 pm. Seconded by Pugh. All voted in favor. Motion carried. Mayor Jason R. Holt Attes .--Kevin Kel y, Cler