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1999-12-14MINUTES - CITY COUNCIL - DECEMBER 14, 1999 The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on Tuesday, December 14, 1999, at 7:30 P.M., in the Council Chambers at 5341 Maywood Road, in said City. Those present were Mayor Pat Meisel, Councilmembers: Andrea Ahrens, Bob Brown, Mark Hanus, and Leah Weycker. Also in attendance were City Attorney John Dean, Acting City Manager Fran Clark, City Planner Loren Gordon, Finance Director Gino Businaro, and Secretary Sue McCulloch. The following interested citizens were also present: Bruce Chamberlain, Ken Custer, Wayne E. Ehlebracht, Laura Ham, Sid Inman, Peter C. Meyer, Randy Moe, Bill Netka, Dorothy Netka, James Prosser. *Consent Agenda: All items listed under the Consent Agenda are considered to be routine by the Council and will be enacted by a roll call vote. There will be no separate discussion of these items unless a Councilmember or Citizen so requests, in which event the item will be removed from the Consent Agenda and considered in normal sequence. OPEN MEETING - PLEDGE OF ALLEGIANCE The Mayor opened the meeting at 7:31 P.M. and welcomed the people in attendance. The pledge of allegiance was recited. APPROVE AGENDA AND CONSENT AGENDA Councilmember Weycker removed Item C and Councilmember Hanus removed Item D of the Consent Agenda. MOTION by Brown, seconded by Weycker, to approve the Agenda and Consent Agenda with the removal of Item~ C and D. The roll call vote was unanimously in favor. Motion carried. 5-0. CONSENT AGENDA *1.0 MINUTES OF THE NOVEMBER 1, 1999, COMMITTEE OF THE WHOLE MEETING. MOTION. Brown, Weycker, unanimously. *1.1 MINUTES OF THE NOVEMBER 9, 1999, REGULAR MEETING. MOTION. Brown, Weycker, unanimously. 874 MINUTES - MOUND CITY COUNCIL - DECEMBER 14, 1999 '1.2 PAYMENT OF BILLS. MOTION. Brown, Weycker, unanimously. 1.3 CASE # 99-40; MINOR SUBDIVISION1 TO READJUST PROPERTY LINE TO ADD 10 FEET TO 1583 BLUEBIRD LANE FROM 1587 BLI, JEBIRD LANEi LOTS 15, 16, 21, AND 22, BLOI~K 6, WOODLAND POINT~ RUTH KILBY, BOB AND CAROL LIEN, 62200; PID # 12-117-24 43 0047, Councilmember Weycker stated the City Attorney would present this issue. The City Attorney stated on page 3940, paragraph 4, "rifle ownership" should be replaced with the words "underlying fee ownership". The City Attorney stated the difference between the two definitions is underlying fee ownership is more specific in nature than title ownership. Councilmember Hanus stated on page 3941, subd. 1.a is appreciated and is a result of the Planning Commission's work. However, the 1.a is inconsistent with the current subdivision code. The code currently states the lot of record status is lost if a subdivision does occur. Councilmember Hanus stated to help support this change and to clarify any misunderstandings, subd. 1.a should read as follows: "Both parcels retain lot of record with no new parcels or nonconformities created." MOTION by Hanus, seconded by Weycker, to accept the resolution of minor subdivision with the above-recorded changes. RESOLUTION g99-105 RESOLUTION APPROVING A MINOR SUBDIVISION TO ADJUST PROPERTY LINES BETWEEN 2 EXISTING LOT OF RECORD AT 1583 AND 1587 BLUEBIRD LANE, LOTS 14 AND 23 BLOCK 6 WOODLAND POINT AND LOTS 14, 22 AND THE NORTHERLY HALF OF LOTS 16 AND 21 BLOCK 6, WOODLAND POINT, PID #'S 12-117- 24 43 0046 AND 12-117-24 43 0047, P & Z CASE # 99-40. The vote was unanimously in favor. Motion carried. 5-0. Councilmember Ahrens suggested, and Councilmember Hanus agreed, to have the Planning Commission review the lot of record code and assist staff to have it written properly for use in the future. Councilmember Brown stated he would mention at the next Planning Commission meeting to 8?$ MINUTES - MOUND CITY COUNCIL - DECEMBER 14, 1999 the Commissioners the suggestion of having the lot of record code clarified by the Planning Commission and staff. 1.4 APPROVAL OF TWO YEAR LIQUOR ~TORE LEASE, Councilmember Hanus directed councilmembers to page 3952 of the packet. Councilmember Hanus questioned a previous bill paid by the City of Mound for a repair, which he thought, should have been paid by the landlord. He also questioned the rate of increase and if this was an appropriate amount. The Acting City Manager stated, and Councilmember Ahrens agreed, the rate was appropriate. The Acting City Manager will investigate further the lease regarding repair responsibilities of the City of Mound and the landlord. MOTION by Ahrens, seconded by Brown, to approve the lease as presented. The vote was unanimously in favor. Motion carried. 5-0. 1.5 PUBLIC HEARING: TAX INCREMENT FINANCING DISTRICT NO. 1-2 DEVELOPMENT DISTRICT NO. Mr. Sid Inman of Ehlers and Associates, Inc. presented this case. He stated the public hearing tonight is being held to approve the geographical area that the tax increment financing district includes. He stated any development approvals in the tax increment district will come at a later date and time and be presented to the Housing and Redevelopment Authority and/or City Council for consideration and approval. Mr. Inman presented the modification of the tax increment financing plan which had been thoroughly reviewed by the City Council previous to this date and was approved by the Housing and Redevelopment Authority tonight. He stated there were no additions by the school district, although there was a letter dated December 6, 1999, from the county administrator which was entered into the record as presented. Mr. Inman stated with this plan the City is expanding the old district and now making a new district called a redevelopment. Mr. Inman noted the Planning Commission wanted to add two additional properties to the plan, but statutorily this cannot be done now and needs to be considered at a later date. Mr. Inman stated upon completion the estimate tax increment will be about $900,000. He stated this amount seems high, but if the development occurs at a slower rate this amount will be less. He stated, along with the budget, this sets the maximum amount that can be spent. Mr. Inman stated the financing part will be a "pay as you go" scenario, which states the developer will pay all of the expenses. Another option of financing is to do self-financing of administrative costs and general obligations bonds. Mr. Inman stated this district has a redevelopment duration with a maximum of 25 years from the date of the first increment. Mr. Inman stated the fiscal disparities election will help spread the costs outside the district. MINUTES- MOUND CITY COUNCIL - DECEMBER 14, 1999 The options would be to keep it outside the district and then reverse that decision, but the City cannot say they would like to keep everything within the district and then change and say they would like to go out of the district for funds. Mr. Inman stated the fiscal disparities are currently going to be spread among the taxpayers. Mr. Inman stated if the resolution is approved tonight by the City Council, there will be four findings adopted. (1) This is a redevelopment district, (2) the proposed development would not reasonably occur without the tax increment financing, (3) the plan conforms to the general plan of the City, and (4) provide the plan maximum opportunity for the City with regard to development and redevelopment of the City. Mr. Inman restated the City Council would be approving the geographical area of the tax increment financing plan by authorizing the resolution presented tonight. Councilmember Brown referred to page 3976 of the agenda packet and stated the residential property south of Bartlett Boulevard and the swamp parcel owned by the City was inadvertently put in the tax increment financing plan and he would request that parcel be removed. Councilmember Ahrens stated these two parcels were already removed by the Housing and Redevelopment Authority at tonight's meeting. Brown realized this statement, but wanted to make sure it was noted at the City Council meeting this removal would take place° Councilmember Brown stated at the Planning Commission meeting of December 13, 1999, it was voted to include the Green Tee and Phillip 66 property in the tax increment financing district. Brown stated he is aware at this time this addition cannot statutorily be considered, but he would like to have it made clear it would be added at a later date and time. Mr. Inman stated these properties would have to be qualified, but at this point, he would consider these parcels not a problem to get them qualified. Councilmember Brown stated strongly the Commissioners at the December 13, 1999, meeting wanted the Phillip 66 and Green Tee properties to be included in TIF. Councilmember Hanus stated for the record that just because a certain property is not included in the district, does not preclude it from using increment funding for those projects. Councilmember Ahrens asked if the Planning Commission understood by placing these properties in now the whole qualification process would have to be started completely over. Councilmember Brown stated this was not discussed at the December 13, 1999, meeting, but there were discussions these properties could be included by the end of the year, which now will not happen from the information received tonight from Mr. Inman. Councilmember Weycker stated even if there are properties within the district, this does not necessarily mean they qualify for the TIF financing or will be granted. Mayor Meisel opened the public hearing at 7:50 p.m. MINUTES- MOUND CITY COUNCIL - DECEMBER 14, 1999 Ken Custer, 5533 Shoreline/5310 Bartlett. Mr. Custer asked if the Randy Automotive Building in being considered for the tax increment financing district. Councilmember Brown stated this building is not considered part of the tax increment financing district but it would be considered part of the 25 percent. Mr. Custer stated if this piece of property would be included at some point in the tax increment financing district, could he be notified in some fashion because of future plans for Randy's. This seemed doable to the councilmembers. Councilmember Hanus restated if these properties were to be included in the tax increment financing district, the properties would have to go through the complete qualifying process at that time. Wayne E. Ehlebracht, 4873 Shoreline drive. Mr. Ehlebracht stated he would appreciate the councilmembers not considering the green space as part of the tax increment financing district according to the reasons set forth in Mr. Casey's most recent correspondence dated December 10, 1999, addressed to the councilmembers and the City Attorney. The City Attorney stated another letter came out today dated December 14, 1999, from Mr. Casey restating his concerns. This correspondence was not timely and has not been presented to the councilmembers. Mayor Meisel stated she did not receive a copy of Mr. Casey's first letter dated December 10, 1999, and she would appreciate a copy. The Acting City Manager made a copy for Mayor Meisel. Councilmember Weycker stated Mr. Casey also presented a resolution passed by the park commission that councilmember Weycker would like to add into the record tonight. This resolution restated why the green space should not be included in the tax increment financing district. Councilmember Weycker wanted to mention again that even though property is included in the tax increment financing district, that does not mean it qualifies for any sort of funding. She stated the green space would appear to need to be included in the tax increment financing district at this point. Councilmember Brown restated he, as well as the Planning Commission, believed the green space should be included in the tax increment financing district, along with the Phillip 66 and Green Tee buildings. Councilmember Brown stated again that a developer of that property will not be guaranteed they will receive tax increment financing. Mayor Meisel closed the public hearing at 7:55 p.m. Further discussions of the tax increment financing plan will cease until Mayor Meisel and all councilmembers have reviewed Mr. Casey's letter dated December 14, 1999. The Acting City Manager presented appropriate copies to all councilmembers for their review. MINUTES- MOUND CITY COUNCIL - DECEMBER 14, 1999 The City Attorney summarized Mr, Casey's letter. He stated the information raised is to exclude the green space at this point and consider having it qualified as a soil district or a low moderate district later. The City Attorney stated this property may qualify as a low and moderate district and it may qualify as'a soil district. He stated there is evidence of unstable soils but not a pollution control problem. It was agreed by councilmembers and the City Attorney the newly presented information from Mr. Casey's letter would be helpful in the future when a developer is being considered for a specific piece of property. MOTION by Hanus, seconded by Ahrens to approve the resolution as presented. RESOLUTION # 99-106 RESOLUTION MODIFYING DEVELOPMENT DISTRICT NO. 1 AND ADOPTING THE MODIFICATION TO THE DEVELOPMENT PROGRAM THEREFOR; AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-2 THEREIN AND ADOPTING THE TAX INCREMENT FINANCING PLAN THEREFOR. Discussion: Councilmember Brown stated strongly he would expect to see the Phillip 66 and the Green Tee properties included in the tax increment district at a later but near date and time. Mayor Meisel stated, and Councilmember Hanus agreed, if someone comes in with a plan, the City Council will consider these properties for the tax increment financing district. Councilmember Hanus stated these properties are still eligible for monies whether they are included or excluded from the tax increment district. The vote was unanimously in favor. Motion carried. 5-0. 1.6 PUBLIC HEARING: BUSINESS SUBSIDIES CRITERIA, James Prosser presented the Business Subsidies Criteria to the councilmembers. The Business Subsidies Criteria is required by law. It provides a plan which states when the City will provide assistance to a business, such as tax increment financing. Secondly, it provides the criteria that will be used to support a plan. The information provided in the Business Subsidies Criteria packet complies with the statutory requirements by providing specific criteria and an appropriate process for review. There are specific tests to be used to accomplish this project. MINUTES - MOUND CITY COUNCIL - DECEMBER 14, 1999 Councilmember Ahrens confirmed the information presented now is information that has been discussed thoroughly with all councilmembers in the past and also just approved at the Housing and Redevelopment Authority meeting tonight. The consensus by the members is many hours have already been spent discussing this document and getting it in a final form. Councilmember Weycker asked what the process involves when an application goes through the proper procedures. Mr. Prosser sated the test process includes having Ehlers and Associates taking a careful look at the proposed development and understands the components of cost included in the land acquisition. After that point, Ehlers would determine the rate of return and compare it with the market value and see if the development would be competitive. Other efforts by Ehlers would include to ensure the numbers given are accurate and to examine the developer fees. This process would also include a review by the City Attorney before any action is taken. After this point, the information will be passed on to the Housing and Redevelopment Authority and/or the City Council for their review. Councilmember Weycker asked how many years this process could continue. Mr. Prosser stated the term of the district is 25 years. Mr. Prosser stated the Housing and Redevelopment Authority has not approved the Business Subsidy Criteria so appropriate action would be taken at the time of the development agreement process. Mayor Meisel opened the public hearing at 8:10 p.m. Mayor Meisel closed the public hearing at 8:11 p.m. Hanus moved and Brown seconded the following resolution: RESOLUTION #99-107 RESOLUTION ADOPTING THE BUSINESS SUBSIDY cRITERIA AS PRESENTED The vote was unanimously in favor. Motion carried. Councilmember Hanus mentioned information citizens had concerning the Mound main street and who would be involved. Evidently there are multiple investors at this point. Beard Group was presented with this information but stated this cannot be disclosed at this point. Councilmember Hanus would like the City Attorney to further discuss if this information is optional for the developer and where does the City stand with respect to this thought. The City Attorney stated at this point the developer can refrain from disclosing too much information, but when the developer is going through the qualification he will need to express his economic strength and at that point appropriate information will be disclosed. Councilmember Hanus stated the main concern by the citizens is knowing who the developers 880 MINUTES - MOUND CITY COUNCIL - DECEMBER 14, 1999 are that will be involved in the Mound main street and docs the public have a right to demand this information at this point. The City Attorney stated at this point the information is not relevant. When the specific plans and firm obligations are be set out by the developer, then that information can be demanded by the City which then be passed on to the public. The City Attorney also stated at this point the developer may not know its business entity at this time anyway. Councilmember Hanus stated there are business owners at this point that are concerned about what their future is with the City of Mound. They are concerned about the type of developer and what future development may or may not occur. Councilmember Brown stated a question also being proposed by the public is the timeline. The City Attorney stated the development is progressing on schedule and shortly serious development discussions will start generating, which at that point the tax increment financing applications will begin. The City Attorney stated March may be a possible timeline for information to start being generated that would interest the public. Mr. Prosser asked what form of public communication should they use to provide information to the public as the public can be notified. Ken Custer, being a concerned business owner, asked if the appraisals on the properties are public information at this point. The City Attorney stated this is not public information at this time. When the property is presented at commission hearings in condemnation hearings this will then be public information. Mr. Custer wanted to know if Langdon would be developed then Auditor's. The City Attorney stated this is the plan, but it is not finalized yet according to the City Attorney. Councilmember Weycker wanted to assure the public that the City is not condemning all properties in question. The condemnation part occurs after negotiations have been thoroughly completed and an agreement cannot be reached. Mr. Custer wanted to know by examination of other appraisals, what his property is worth. The City Attorney stated if there is a purchase price on some property, then at that time that information is public. 1.7 RESOLUTION APPROVING THE FINAL 2000 GENERAL FUND BUDGET IN THE AMOUNT OF $~t,084,7501 SETTING THE LEVY AT $1.975.330 LESS THE HOMESTEAD AGRICULTURAL CREDIT 0tACA) OF $502.790. RESULTING IN A FINAL CERTIFIED LEVY OF $1,472,5407 APPROVING THE OVERALL BUDGET FOR 2000. The Finance Director presented the final budget and levy for the year 2000. He stated the levy will amount to about $1,472,540 and the general fund will total about $3,084,750. He MINUTES- MOUND CITY COUNCIL - DECEMBER 14, 1999 stated there will be an increase of about 8 percent to taxpayers. Councilmember Ahrens stated even though the tax notices show an increase, the amount the City has now certified is about $90,000 lower. Councilmember Brown thanked all the councilmembers and the Finance Director for their hard work in creating an honest budget. Mayor Meisel thanked everyone involved with the budget as well. MOTION by Ahrens, seconded by Brown, to approve the resolution as presented. RESOLUTION #99-108 RESOLUTION APPROVING THE FINAL 2000 GENERAL FUND BUDGET IN THE AMOUNT OF $3,084,750; SETTING THE LEVY AT $1,975,330 LESS THE HOMESTEAD AGRICULTURAL CREDIT (HACA) OF $502,790, RESULTING IN A FINAL CERTIFIED LEVY OF $1,472,540; APPROVING THE OVERALL BUDGET FOR 2000. The vote was unanimously in favor. Motion carried. 5-0. 1.8 RESOLUTION ESTABLISHING LOTTERY SYSTEMS FOR THE MOUND COMMONS DOCK APPLICATION FOR NEW APPLICANTS FOR NONABUTTING USE. The Acting City Manager stated the proposed new ordinance will be submitted to the public on Friday after being approved tonight. Councilmember Weycker stated to change No. 4 of the resolution to read as follows: "The first year applicants will be separated into groups based on number of consecutive years they have applied as follows: Group 1, four years or more; Group 2, two or three years; and Group 3, one year. The lottery drawing will begin with Group 1 until all openings are filled or there are no more applicants remaining in the group. Once all names have been drawn from Group 1, then the drawing will move to Group 2 and finally Group 3. Councilmember Weycker stated to add a new No. 5 to read as follows: "After the first year of the lottery, each returning applicant will reapply or be dropped from the list. All new applicants will be drawn by lottery and added to the bottom of the existing list." MOTION by Ahrens, seconded by Brown, to approve the resolution with the above-noted changes. RESOLUTION #99-109 RESOLUTION ESTABLISHING LOTTERY SYSTEM FOR THE MOUND COMMONS DOCK APPLICATION FOR NEW APPLICANTS FOR MINUTES- MOUND CITY COUNCIL - DECEMBER 14, 1999 NONABUTTING USE. The vote was unanimously in favor. Motion carried. 5-0. 1.9 CANCEL LAST CITY COUNCIL MEETING IN DECEMBER, Mayor Meisel stated since it is the Christmas season and there are no items to complete another agenda for December and, precedent has been to cancel the second City Council meeting of December, she proposed that tonight. Also, she stated staff has directed her there appears to be nothing for discussion at the next committee of the whole meeting, so she proposed canceling that meeting also. Councilmember Weycker questioned canceling both meetings, but rather to keep them scheduled. The Acting City Manager restated items that are to come up for discussion by the committee of the whole and City Council can wait until January, 2000. The Acting City Manager also stated the Housing and Redevelopment Director has agreed to this cancellation and stated the policy information she was going to present in December can wait until January as well. Mayor Meisel asked councilmember Brown if the Planning Commission would find it inconvenient if these two meetings were cancelled and Councilmember Brown stated this would not be an inconvenience for the Commissioners. Councilmember Weycker restated she would like to have one more meeting scheduled to invite the park commission and to discuss issues from Mercer. The Acting City Manager stated there is nothing to discuss with regards to Mercer at this point. The Finance Director stated if the meetings get cancelled, he will make sure the bills are paid in a timely manner. Mayor Meisel thanked him for that notation. MOTION by Ahrens, seconded by Hanus, to cancel the upcoming Committee of the Whole meeting scheduled for December 21 and the upcoming City Council meeting scheduled for December 28. The vote was unanimously in favor. Motion carried. 5-0. COMMENTS AND SUGGESTIONS FROM CITIZENS PRESENT REGARDING ITEMS NOT ON THE AGENDA. (PI.EASE LIMIT THIS TO 3 MINUTES PER PERSON). There were no comments or suggestions from citizens present. INFORMATION/MISCELLANF~US. 1. Financial Report for November as prepared by Finance Director, Gino Businaro. 5 6 7. 8. MINUTES - MOUND CITY COUNCIL - DECEMBER 14, 1999 DCAC Minutes from October 21, 1999. DCAC Minutes from November 18, 1999. Planning Commission Minutes from November 22, 1999. Planning Commission Minutes from December 6, 1999. POSC Minutes from November 10, 1999. Public Works schedule for December 31, 1999. LMCD Minutes from November 17, 1999. Mayor Meisel stated the public works and police department have scheduled their work times for December 31, 1999, and it appears they have gone through some extra lengths to keep the City of Mound safe. AD. IOURNMENT. MOTION by Ahrens, seconded by Hanus, to adjourn the meeting at 8:45 p.m. The vote was unanimously in favor. Motion carried. 5-0. Manager Francene C. Clark, Acting City Attest: Council Secretary PAYMENT BILLS DATE: DECEMBER 14, 1999 BILLS ACCOUNTS PAYABLE BATCH # #9113 AMOUNT $177,726.33 TOTAL BILLS $177,726.33