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2019-11-26 CC Meeting MinutesMOUND CITY COUNCIL MINUTES November 26, 2019 The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on Tuesday, November 26, 2019 at 7:00 p.m. in the council chambers of the Centennial Building. Members present: Mayor Ray Salazar; Council members Phil Velsor, Jeff Bergquist, Paula Larson, and Sherrie Pugh Members absent: None Others present: City Manager Eric Hoversten, Fin Dir/Clerk/Treasurer Catherine Pausche, Community Development Director Sarah Smith, Building Official Scott Qualle, Scott Gates, David Krause, Elexis J., Zach H., Laken S., Ryan P. Consent agenda: All items listed under the Consent Agenda are considered to be routine in nature by the Council. There will be no separate discussion on these items unless a Counci/member or citizen so requests, in which event it will be removed from the Consent Agenda and considered in normal sequence. 1. Open meeting Mayor Salazar called the meeting to order at 7:00 p.m. 2. Pledge of AII_egiance 3. Approve agenda MOTION by Bergquist, seconded by Velsor, to approve the agenda. All voted in favor. Motion carried. 4. Consent agenda MOTION by Larson, seconded by Velsor, to approve the consent agenda. Upon roll call vote, all voted in favor. Motion carried. A. Approve payment of claims in the amount of $141,992.34. B. Approve minutes: 10-08-19 & 11-12-19 regular meetings. C. RESOLUTION NO. 19-83: RESOLUTION TO APPROVE A PUBLIC LANDS PERMIT FOR TEMPORARY PLACEMENT OF MOBILE BANK BUILDING ON CITY PARKING LOT D. RESOLUTION NO. 19-84: RESOLUTION APPROVING PUBLIC GATHERING PERMIT AND MUSICAL CONCERT PERMIT FOR 2020 MOUND POLAR PLUNGE AT SURFSIDE PARK AND BEACH ON SATURDAY, JANUARY 25, 2020 AND REDUCED FEE E. Approve Pay Request No. 2 to Thul Specialty Contracting in the amount of $16,356.50 for the 2019 Manhole Rehabilitation Project PW -19-09 Mound City Council Minutes — November 26, 2019 F. Approve Pay Request #1 in the amount of $65,794.15 to Advanced Wall Structures for the 2019 Retaining Wall Improvements Project PW -19-10 G. Approve Pay Request #2 in the amount of $36,575.00 to Midwest Asphalt for the 2019 Swenson Park Tennis Court PW -19-06 H. Approve Pay Request #2 and Final in the amount of $880.71 to KAMCO Inc. for the 2019 Crack Seal Contract PW -19-07 I. Approve Miscellaneous Pay Item in the amount of $2,000 to Otten Brothers for 2019 Retaining Wall Improvements landscape restoration PW -19-10 J. Approve 1-4 Day Temporary On -Sale Liquor License for Northwest Tonka Lions January 5, 2020 Chili Feed Fundraiser at the Gillespie Center 5. Comments and suggestions from citizens present on any item not on the agenda. None were offered. 6. Consideration/Action on Resolution Regarding Hazardous Building at 4848 Lanark Road Smith introduced Building Official Scott Qualle to talk about an issue similar to one discussed at the previous meeting. Building Official Scott Qualle described the property and noted that there are two structures on the property, but it is the smaller one at 4848 that is the concern. Qualle said in 2017 it was posted as "Do Not Occupy" and many letters have been sent to the property owner on record. Qualle said most recently Staff was told it would be taken down this year and now they are saying next spring, so Qualle said he feels the City needs to turn up the heat to insure action as the building is unsafe and the neighbors are complaining. Salazar asked what Qualle is recommending. Qualle said he would like to declare it as an unsafe building structure which will invoke state statute and attorney fees, so he wants permission from the Council up front. Qualle said if the building is taken down by the City, the City can recoup outside consultant and attorney fees. Hoversten said this request is to make sure we are all on the same page in pursuing corrective action in the event the property owner ultimately requests a hearing, noting the owner was invited to tonight's meeting. Hoversten said this would authorize the Building Official to begin a reasonable timetable for noticing and possible action. Salazar asked how long the property owner will be given and Qualle said typically 15- 45 days. Salazar said this has been going on two years and it appears the City is getting the run-around. Hoversten said if the owner ultimately takes it down before we do, legal costs are not recoverable, but if the city does the abatement, those costs can be rolled in per statute. Hoversten said this process is often what triggers ultimate action. Salazar asked if the structure was salvageable. Qualle said anything can be mitigated but he would not recommend it as the water damage is excessive and the structure is not safe, including a collapsed ceiling. Hoversten said the city will demolish it. MOTION by Velsor, seconded by Larson, to adopt the following resolution. Discussion ensued to clarify 4852 is the postal address but that building is not being declared unsafe, just the smaller structure at 4848. All voted in favor. Motion carried. MoundCityCoumci|Minmes-Novo m*26,2O19 RESOLUTION NO. 19-85: RESOLUTION TO AUTHORIZE PROCEEDING WITH HAZARDOUS BUILDING ACTION FOR PROPERTY AT 4852 LANARK ROAD 7. City Manager Eric Hoversten reguesting discussion on a Request for Qualification and Interest (RFQ/1) to -purchase and develop a multi -family residential Project in the Harbor District and action on a Resolution Authorizinc i Staff to Issue a Reguest for Qualification and Interest in a Residential Development in the Mound Harbor TIF District Hoversten walked through a Power Point presentation that included the stated goals for the Harbor District Project RFQ/1 and noted the City is only addressing lands that the City owns although responders are free to look beyond just as they are free to consider other than the townhome concept shown in the RFQ/1. Hoversten walked through the selection factors that will be used to evaluate responses and noted a draft Purchase and Development Agreement and potential timeline have been included so that the administrative burden will be streamlined going forward. Hoversten said the soil and environmental analysis results will be available in mid- December and will be shared at that time. Hoversten noted the City is not obligated to pick a partner if objectives are not met, but emphasized the need to be genuine with the marketplace. Mayor Salazar asked for any questions O[comments from the Council and none were offered. MOTION byB8ngqUiSt.seconded by\/e|SO[,tOadopt the following resolution. Itwas brought iO the Mayor's attention someone inthe audience raised their hand. Scott Gates, 4383Wilshire Blvd, noted this appears t0be the same request 8Glast time, specifically residential iDthe Mound Harbor business district. Gates asked how this was developed and why the City has not gone to the development community to ask what they think is the highest and best use and whether experts in the real estate industry have been engaged 8Sthey have the expertise and the data. Gates said the list iS8list 0fresidential developers not commercial and wonders why the City wouldn't go to the professionals for advice or to market it in 3 t[8did0D@| fashion. Gates said this is the worst timing to put in OD the market as people don't work over the holidays and the potential timeline is theoretically doable but is unrealistic. Gates noted Grecession might happen sometime iDthe next 18months. Gates said the soils will likely require helical piers which will drive Upcosts for residential vs. commercial would require f8VVH[, |8[ge[ piers which may or may not be |8SS expensive. Gates Said this is still K4OUOd`S dOVvDtOVvn lakefront business district and the vision was tO Cn88te 8CVnn8CtiOD. Gates said i1iSnot incompatible tOhave residential and commercial and h8feels commercial OOlevel one with residential above i8highest and best use. Gates said h8agrees Mound needs more people to get more business but said if the proposed development is done, there won't be enough parking for any commercial development along CO0Rlem:8. Gates said the best use is a vertical mixed-use development, noting the higher you go the smaller the footprint and he does not think 8 high rise would infringe the view. Gates recommended ghost platting ifitiSreasonable k]think commercial will happen iO8 reasonable amount of time, noting they can be changed to townhomes 2 to 4 years out if they are still vacant. Gates said leaving Auditors Road will prevent privatizing the lakefront, noting the docks have @ retail value between $3-5Kapiece. Gates said any part of this discussion should be a detailed discussion of the financial benefits [O the citizens, and said he calculated the cost to do nothing is $40 per year per household. Gates Mound City Council Minutes — November 26, 2019 said the sale from the land and tax increment were relatively small amounts and the City could just mow it for 20 years as the value will only continue to go up and ultimately there will be demand. Gates cautioned that the City of Mayer was extremely difficult to work with when he did a large project and now that the development community sees City is back asking for the same thing and it will begin to make them question how easy the city is to work with. Gates suggested more community input as he does not see that that opportunity was given between the last RFQ/1 and this RFQ/I. Mayor Salazar noted he and Bergquist where on the Council with the last RFQ/1 and vertical was deemed not doable. Salazar said citizens want green space and this is a way to help pay for the improvements. Salazar said many of the retailers in town have gone away due to the changing nature of retail. Salazar said a high rise would create a wall between downtown and the lake access and suggested Gates look at the Mist. Salazar said they were originally condos and an insurance company bought it from the bank, but Salazar encouraged Gates to bring his ideas to the City. Gates said let the development community decide and tell the City what should be done with the space, noting he can see services like an ice cream, restaurant or print shop. Salazar noted we have a print shop and ice cream shop. Pugh said she had two extensive real estate experiences and she said she sees an opportunity for commercial space for fledgling entrepreneurs who may want to create a store front and she hopes the City could consider commercial if proposed. Hoversten noted page 3 of the RFQ/1 contemplates commercial as long as a marketing strategy for the commercial is included and they demonstrate site control over properties the city does not own. Hoversten said inability to assemble remaining parcels has been a stumbling block previously so the City can only address what is in our control. Pugh asked if there was ever a convening of property and business owners with developers. Pausche said many meetings with developers have taken place and some developers have talked to property owners. Pausche noted it is a delicate line as the City has been called out for not being supportive of existing businesses when concept plans with parcels redeveloped were shown. Pausche noted the existing vacancies at all price points and how long it has taken for Mound Marketplace to fill. Pausche said the Mist was bought out for pennies on the dollar so the rents are effectively subsidized for the commercial space. Pausche said the City held developer days and the Harbor District was marketed by Welsh Properties pre -recession so developers know this property is available and the conditions for development have only worsened. Pausche noted the Comprehensive Plan development had a significant public input process and that the entire downtown redevelopment was started by the people and many businesses like Jubilee, Scotty B's and True Value invested at that time. Pausche noted other existing business owners expressed concern when the City was marketing a parcel for a restaurant. Hoversten said meetings have taken place with existing property owners and noted some existing owners are choosing to reinvest in their existing property any many others may exist because of the affordable rents. Hoversten said commercial rent controls have been discussed if the City is a participant but that presents a major challenge to attract developers under those conditions. Hoversten said the RFQ/1 language was opened up to see what comes back. Mound City Council Minutes — November 26, 2019 Pugh said the City needs to create energy and understand why banks are coming to town and how that can feed other businesses. Pugh said she previously never grocery shopped local and now she enjoys the communal and small town feeling and that we need to convey that to developers. Pugh said she would like to bring in rental bikes to attract visitors and create activity and perhaps it is the responsibility of the City Council to be marketing ambassadors. Hoversten said he is excited to go to the market and Pugh agreed and noted the community space included in this district should be highlighted. Salazar noted Mound has a lot of parks and is working on improving them. Salazar said he has been here 27 years and that Mound is a diamond in ruff with abundant opportunities. Salazar said there are three businesses opening like clockwork, including fitness, quick serve restaurants (QSRs), and banks. Salazar said the bottom line is this is an opportunity and he questions if not now, then when, and if not this, then what. Bergquist noted he did not recall the developer list being included in 2017 and noted it is extensive. Gates returned to podium and noted it is narrowly targeted to residential developers and wanted to clarify he was only talking about space owned by the City. Gates encouraged the City to calculate financial benefit to the community and suggested the Council visit the City of Victoria who have done a great job revitalizing downtown while keeping a small town feel or Wayzata's new lakefront development. Salazar encouraged Gates to bring in any associates or concept drawings to the City Manager. Gates said the RFQ/I is too narrowly focused and that last time it was too restrictive so developers are going to be reluctant to spend any funds since it appears locked in. Salazar noted there is a motion standing made by Bergquist, seconded by Velsor, to adopt the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 19-86: RESOLUTION AUTHORIZING STAFF TO ISSUE A REQUEST FOR QUALIFICATION AND INTEREST IN A RESIDENTIAL DEVELOPMENT IN THE MOUND HARBOR TIF DISTRICT 8. Information/Miscellaneous A. Comments/reports from Council members/City Manager Hoversten noted school cancelled Nov. 27th and noted plows will start around 4am, which will mark the 1St run of the year. Dec 10th — final meeting of year Jan 14th — first meeting of 2020 Jan 25th — Polar Plunge — noting various ways to participate including $75 to jump in the lake or throw a chicken or sponsor the police/fire teams. See lakeminnetonkapolarplunge.com to sponsor and noted $49K raised at the 2019 event which was the coldest day of winter. B. Reports: Finance Department — October 2019 Fire Department — October 2019 C. Minutes: Docks & Commons Commission — 09-19-19 Parks & Open Spaces Commission—10-10-19 D. Correspondence: Metro Mosquito Control District 2019 Activities Report Mound City Council Minutes — November 26, 2019 9. Adiourn MOTION by Velsor, seconded by Bergquist, to adjourn at 9:00 p.m. All voted in favor. Motion carried. Mayor Raymond J. Salazar Attest: Catherine Pausche, Clerk