1982-11-16233
November 16, 1882
SPECIAL MEETING
OF THE
CITY COUNCIL
Pursuant to due call and notice thereof, a special meeting of the City Council
of the City of Mound, Hennepin County, Minnesota, was held at 5341 Maywood Road
in said City on November 16, 1982, at 7:30 P.M.
Those present were: Mayor Rock Lindlan, Councilmembers Pinky Charon, Robert
Polston, Gordon Swenson and Donald Ulrick. Also present were: City Attorney
Curt Pearson, City Manager Jon Elam, City Clerk Fran Clark, Finance Director
Sharon Legg and the following interested citizens: Everett Schroeder,
Eleanor Smith, Bill Koenig, Buzz Sycks, Kaye Westerlund, Dian Theis, Dave
Anderson, Robert Blake, Wayne Grimes, Mr. ~ Mrs. Hillier, Saul Smiley,
Walter Haider, C. Carlson, John Royer, Frank Hancuch, Jerry Pietrowski,
Linda Drews, Calvin Drews, Bill Clark, Bob Johnson, Ron Norstrem, Paul Pond,
Bruce & Joan Wold, John Campbell, Mary Campbell, Jim Bedell, Ron & Holly
Bostrom, Don Chemberlin, Lois Peterson, Liz Jensen, Dallas Jensen, Gary
Paulsen, Russ Peterson, Gloria Peterson, William Petron, Judy and Tim Shea,
Russ Fahness, B. Younes, Mike Mueller, Dick Schwert, Jan Bertrand, Patzy
D'Avia, Mr. & Mrs. John Wagman, Margaret Hanson, Rob Chelseth, Jerry Paul.,
Peter Ward.
The Mayor opened the meeting and welcomed the people in attendance.
MINUTES
The Minutes of the October 28, 1982, Special Meeting were presented for
consideration. Charon moved and Swenson seconded a motion to approve
the Minutes of the October 28, 1g82.Special Meeting as submitted. The vote
was unanimously in favor. Motion carried.
The Minutes of the November 3, 1982, Special Meeting were presented for
consideration. Swenson moved and Ulrick seconded a motion to approve the
Minutes of the November 3, 1982, Special Meeting as submitted. The vote
was unanimously in favor. Motion carried.
The Minute of the November g, 1982, Regular Meeting were presented for
consideration. Polston moved and Charon seconded a motion to approve the
Minutes of the November g, 1982, Regular Meeting as submitted. The vote
was unanimously in favor. Motion carried.
PUBLIC HEARINGS
A. LOST LAKE SITE - STREETCAR BOAT SHOPPING CENTER
The Mayor explained that this public hearing is being held to consider
a request to allow property described as Lots 35 & 37, Auditor's
Subdivision #170 to revert back to Our Lady. of the Lake Catholic
Church for the purpose of developing a shopping center. He went
on further to state that the Title Opinion on this property was
just received today from the City Attorney.
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November 16, 1982
The City Attorney summarized the Title Opinion as follows:
1. As of January 7, 1982, the fee simple owner of the property is
the City of Mound not Our Lady of the Lake Catholic Church.
The reason for the City's ownership is that the Church deeded
the property to the City on January 7,.1952, with a reversionary
clause, but on January 7, 1.982, the reversionary interest of the
foregoing grantor ceased to be valid and operative by reason of
the provisions. of MS 500.20, Subd. 2 and may be wholly disregarded.
MS 500.20, subd. 2 reads as follows:
"Restriction of duration of condition. All covenants, conditions,
of .restrictions hereafter created by any other means, by which the
title or use of real property is affected, shall cease to be valid
and operative 30 years after the date of the deed, or other
instrument, or-the date of the probate of the will, creating them;
and after such period of time they may be wholly disregarded."
The City Attorney went on further to explain that there are some gaps
in the Title, etc. which would-.need to be cleared up before the City
could give a Warranty Deed to anyone. His recommendation would be
to .commence a Registration Proceeding to get the Title in order.
Councilmember Ulrick reminded the Council that they should still hold
the public hearing to get input from the citizens on the development
of a shopping center on this site even though it is not required by
law and even though now the City would be the seller not .the Church.
The Mayor opened the public hearing.
Biil Koenig stated that offer of $150,000 for the site still stands
whether it is purchased from the City or the Church, but he went on
to .say that he has received a call from Douglas Day of the Minnesota
Pollution Control Agency late today informing him that the site has
been under surveillance for sometime because Tonka Toys supposedly
dumped hazardous waste in this site some years back.
The City Manager stated that the City and the Counci] were aware that
the M.P.C.A. were questioning whether hazardous waste was dumped on
this site but that they have no evidence of this and all the people
who were connnected with the site who have been interviewed gave no
validity to the M.P.C.A's claims.
Bill Koenig s ate that as one of the developers he i still prepared
to offer $150,000 for the site with the stipulation that the M.P.C.A
can be calmed.
Jules Illies stated that he did slot of the burying at the dump sites
around Mound since the beginning and he knows that no barrels were
ever dumped in any of the sites.
Patzy D'Avia stated he would like to see the property developed and
put back on the tax roles.
John Wagman stated he was against any commercial development of this
property-and would .like to see a nature park put in that area, leaving
it as a wetlands.
235
November 16, 1982
Bill Clark was in favor of .the development of the site and felt it
would not affect the wetlands.
Roy Holden stated that he was not against the development but wants
the Lost Lake Channel and the wetlands left alone.
Bill Koenig explained that the. developers are not going to encourage
boat traffic on the channel or in the wetlands. The DNR requires a
green strip be provided between the center and the wetlands and there
will be no harm done to the wetlands.
Buzz Sycks, another of the developers, stated that the DNR and the
Watershed District have already given there O.K.s.
Margaret Hanson would like the City Council to guarantee that no
variances to the wetlands ordinance will ever be granted to the
developers.
Councilmember Ulrick explained that the present Council cannot decide
for future Councils on this item.
The Mayor closed the public hearing.
Councilmember Swenson stated that he felt this issue of the land
was a moral issue and that the land should go back to the Church.
The City Attorney advised there is no law saying that the City has
a moral obligation. The City has to look out for its citizens and.
if .the City were to give the property back to the Church any citizen
could sue the Council personally and the City for-not looking after
the public interest.
Councilmember Charon then-read the following resolution which she
had prepared:
RESOLUTION COVERING THE SALE OF THE LOST
LAKE SITE TO THE STREETCAR BOAT SHOPPING
CENTER, INC.
WHEREAS, the City of Mound Council is strongly in favor of creating
new shopping and commercial business in the City, and
WHEREAS, the City wishes to assist any developer who seeks to build
in the City and ..wants to encourage and facilitate development
on a piece of City owned land described as Lots 35 and 37,
Auditor's Subdivision #170, and
WHEREAS, a group called .the Streetcar Boat Shopping Center, Inc. has
requested that. the City relinquish its interest in the above
property-and sell it to the developers at a price agreed to
by the City and the developers, and
WHEREAS, the City Council agrees that this is a positive step forward
for the City's development, and
WHEREAS, the City does not want to do anything that would impede this
development's progree;
236
November 16, 1982
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MOUND, MINNESOTA:
That the Mayor and the City Manager are hereby authorized to
immediately sign an option agreement covering this site and to
immediately proceed to complete the necessary quit claim deed
on the site so that when the developers have provided the City
with firm financial guarantees and all aplicable permits from
.the Department of Natural Resources, Lake Minnetonka Conservation
District and the Minnehaha Watershed District, that the quit
claim deed may be given.
FURTHERMORE, because it may take some time for the developers to
fulfill these requirements, the City is willing to provide the
option to cover the site for a period of time up to two years
from the date of adoption of this resolution.
Councilmember Polston suggested that the City Attorney work on the
wording of the above resolution.
The City Attorney stated that an option would not be necessary. A
purchase agreement could be entered into by both parties which would
include any part of Councilmember Charon's resolution that the Council
deemed necessary and was agreeable by both parties.
Councilmember Ulrick moved and Polston seconded a motion authorizing
the City Attorney and the City Manager to develop an appropriate
purchase agreement. The City Attorney suggested that the Council
go into Executive Session to discuss what points the City wanted
in the purchase agreement. Ulrick withdrew his motion and Polston
withdrew his second.
Charon moved and Swenson seconded a motion to go into Executive Session
to discuss the terms of the purchase agreement to be offered to the
developers. The vote was unanimously in favor. Motion carried.
Returning from Executive Session, Councilmember Ulrick moved and
Charon seconded the following resolution:
RESOLUTION #82-295 RESOLUTION DIRECTING THE MAYOR AND THE CITY
MANAGER TO ENTER INTO A PURCHASE AGREEMENT
WITH THE STREETCAR BOAT SHOPPING CENTER, INC.
FOR THE LOST LAKE SITE - $10,000 DOWN AND. THE
BALANCE DUE IN 90 DAYS AT WHICH TIME THE
CITY WILL DELIVER A QUIT CLAIM DEED FOR THE
PROPERTY
Roll call. vote was unanimously in favor. Motion carried.
Councilmember Swenson moved and Polston seconded the following resolution:
RESOLUTION #82-29b RESOLUTION TO CONCUR IJITH THE PLANNING COMMISSION
RECOMMENDATION AND APPROVE THE CONCEPT PLAN
OF THE STREETCAR BOAT SHOPPING CENTER
237
November 16, 1982
Councilmember Ulrick questioned the City giving conceptual approva l
of the Center because we have no ordinances requiring concept approval.
Councilmember Polston withdrew his second of the motion..
The motion died for lack of a second.
TOWN SQUARE SHOPPLNG CENTER - 7AX INCREMENT FINANCING
The City Manager explained that at the Council's request, a presentation
was made at the Planning Commission Meeting on the Town .Square Shopping
Center and .Tax Increment Financing. Saul Smiley, representing the
developers, was present to introduce the Town Square concept. Rob
Chelseth, City Planner, was present to answer questions on T.I.F.
Jerry Pahl from Hennepin County, who reviews TIF plans for the County
Board was present.
Mr. Smiley presented a slide presentation on different ways develop.
the Town Square concept. He explained that it would be necessary to
acquire and clear a parcel of approximately ll acres. The specific
parcel that they are requesting to be acquired as a Tax Increment
District is that area bounded on the west by Commerce Blvd., the south
by the Burlington Northern R.R., the east by Belmont Lane and north
by Church Road. The proposal would be for a 75,000 to 100,000 square
foot mini-mall shopping center. .The Center would include the following:
Super Valu Store 18,000 s.f.
Thrifty Drug (Snyder's) 10,000 s.f.
Mound State Bank 10,000 s.f.
Restaurant and Retail Shops 12,000 s.f.
Mound Clinic 12,000 s.f.
Offices 8,000 s.f.
Miscellaneous Services 5,000 s.f.
Also included would be:
Areas for Future Expansion
A Commons Mall
Sectioned Parking (easily meeting desired ratios)
Service Court and
Ready Ingress and Egress to and from the Mall
They are requesting that the City approval a feasibility study of Tax
Increment Financing to see if TIF would be proper and in order.
Rob Chelseth explained the steps in setting up a TIF District.
Councilmember Swenson asked who would pay .for the feasibility study.
Mr. Smiley stated that the proposers would be willing to pay half,
Jerry Pahl gave the Council a packet of .material from Hennepin County
on the County Boa.rd's position on TIF.. This material gave criteria
the Board would like utilized to evaluate proposed tax increment
financing districts-which are:
1. Tax increment financing should be used only as a financing tool
of. last resort, after exploring all other alternatives.
2. The proposed development or redevelopment should not reasonably
be expected to occure in the foreseeable future except through
the use of tax increment financing.
3. The estimated captured assessed value for the proposed tax
increment district at its termination, as indicated in the
financing plan, when added to the current captured assessed
238
November 16, 1982
value of all other tax increment districts in the municipality
should not exceed the specififed percentage of the tota l
current assessed value of taxable real property in the
municipality:
If total assessed value exceeds $200,000,000 - 6%
If more than $25,000,000 but not more than $200,000,000 - 8%
If more than $8,000,000 but not more than $25,000,000 - 12%
If not-more than $8,000,000 - 14%
4. Tax increment districts should be completed and terminated in
the shortest possible time, thereby increasing the County's
tax base ands reducing tax burdens outside the increment district.
Mound would fall into the 8% class. The developer would like an 8 year
period of time.. The maximum they could have is 25 years.
The Mayor opened the public hearing and asked for public input.
A number of persons asked questions about TIF and its affect on homeowners
taxes. Mr. Pahl explained the impact of tax increment on a $75,000
homestead
Russ Peterson, Planning Commission Chairman, explained that a number of
positive ideas came out when the developers met with the Planning
Commission, such as the present buildings would not be torn down
until new buildings were built.
Bill Clark objected to this development because his bulk oil business
would have to be relocated.
The Mayor closed the public .hearing.
Councilmember Ulrick moved and Charon seconded the following resolution.
RESOLUTION #82-296 RESOLUTION AUTHORIZING A FEASIBILITY STUDY
ON TAX INCREMENT FINANCING WITH THE COSTS
TO BE SHARED BY THE CITY AND THE DEVELOPER
ON A 50-50 BASIS
Councilmember Swenson objected to the City paying anything other
that Staff time because the City wouldn't do this for a private
developer.
There was discussion on what a feasibility study might cost.
Polston moved and Ulrick seconded an amendment to the resolution
stating that the study not exceed $2,500 in costs.
A roll call vote on the amendment was 4 in favor with Councilmember "
Swenson voting nay. Motion carried.
A roll call vote on the original resolution was 4 in favor with
Councilmember Swenson voting nay. Motion carried.
239
November 16, 1982
PLANNING COMMISSION ITEMS
SITE PLAN APPROVAL AND PRELIMINARY SUBDIVISION - BILL PETRON -
2 3 COMMERCE BLVD. - PART OF GOVT LOT 1, SECTION 23 AND PART OF
GOVT LOT 3, SEC. 24, IN TWP. 117 N, RG. 24
The City Manager expla~ned that the applicants request is to
construct a 25' x 50' - commercial building on the site to house
his furniture repair, stripping and refinishing operation. The site
is zoned B-1 Central Business and has the applicant's single family
home on the site as well as a detached garage. He will remove the
garage to construct the new building. He does plan to build another
garage in the future. He does not plan to have the general public
come to the building as a retail establishment, but rather people
would bring furniture in for repair or refinishing and return .later
to pick it up. He would not have exterior storage.
The Building Inspector and the City Attorney have recommended approval.
The Planning Commission has approved the subdivision subject to
the Building Inspector's recommended conditions.
Swenson moved-and Ulrick seconded the following resolut-ion.
RESOLUTION.#82-297 RESOLUTION FOR PRELIMINARY SUBDIVISION APPROVAL
OF .PART OF GOVT LOT 1, SECTION 23, & PART OF
GOVT LOT 3, SECTION 24, WEST OF 5TH PRINCIPAL
MERIDIAN (2434 COMMERCE BLVD.)-WITH STIPULATIONS.
There was discussion on the number of parking places that will be
available. Mayor Lindlan objected-to having only 4 stalls required.
The vote was four in favor with Mayor Lindlan voting nay. Motion carried.
12 FOOT STREET FRONT VARIANCE.-.ELEANOR B. SMITH - 3106 ISLAND VIEW DRIVE
LOT.57, PHELPS ISLAND PARK 1ST DIVISION
The City Manager explained that the applicant is requesting a 12 foot
front yard variance to allow the construction of a new home with an
attached 24' x 22' garage within 8' of the street front property line
and the doors facing the side lot line. The Planning Commission
recommended approval of this variance due to the hardship of land
topography.
Polston moved and Swenson seconded the following resolution.
RESOLUTION #82-29~ RESOLUTION TO CONCUR WITH THE PLANNING COMMISSION
RECOMMENDATION TO APPROVE THE FRONT YARD 12 FOOT
VARIANCE AS REQUESTED .FOR LOT 57, PHELPS ISLAND
PARK 1ST DIVISION ( 3106 ISLAND VIEW DRIVE).
The vote was unanimously in favor. Motion carried.
LOT SLZE VARIANCE - GAWEL ~ KNAEBLE CONTRACTORS, INC. - 3021 DEVON LANE -
LOTS 4 & 5, BLOCK 1, ARDEN
240
November 16, 1982
The City Manager explained that this is the other half of Lot 32,
Block 1, Arden, which .the City. is trying to sell to give Gawel &
Knaeble enough square footage .not to require a variance. Therefore,
this is a temporary variance until the City finishes the .legal work
on getting a Proceeding Subsequent completed. The Planning Commmission
has recommended approval.
Poison moved and Swenson seconded the following resolution.
RESOLUTION #82-299 RESOLUTION TO CONCUR WITH THE PLANNING COMMISSION
RECOMMENDATION TO APPROVE THE TEMPORARY LOT SIZE
VARIANCE OF-2,000 SQ. FT. AS REQUESTED FOR LOTS
4 AND 5, BLOCK 1, ARDEN-(3021 DEVON LANE)
The vote was unanimously in favor. Motion carried.
COMMENT S.& SUGGESTIONS FROM CITIZENS PRESENT
The Mayor asked if there were any comments or suggestions from citizens
present. .There were none.
BINGO PERMIT - OUR LADY OF THE LAKE CATHOLIC CHURCH
Polston moved and Charon seconde the .following resolution.
RESOLUTION #82-300 RESOLUTION AUTHORIZING THE ISSUANCE OF A BINGO
PERMIT TO OUR LADY OF THE LAKE CATHOLIC CHURCH
WAIVING THE FEE AND THE BOND
The vote was unanimously in favor. Motion carried.
ANIMAL CONTROL POLICY
The City Manager explained that the Police Dept. spends alot of time
apprehending and transporting dogs who a~e at large. They are asking
that the Council amend the ordinance to allow the Explorer Post and the
Mound Police Reserves to pick up dogs at large and their respective
organizations to receive a bounty of $5.00 per animal apprehended.
Swenson moved and Polston seconded the following:
ORDINANCE #443 AN ORDINANCE AMENDING CHAPTER 39, SECTIONS 39.45,
39.60, 39.65, 39.90 (d), and 39.90 (e) OF THE
CITY CODE RELATING TO LICENSING AND REGULATION
OF DOGS
Councilmember Swenson suggested reviewing this amendment in six months.
The vote .was unanimously in favor.- Motion carried.
CITY AUDITOR SELECTION
The City Manager explained that the Finance Director Sharon Legg has
interviewed 6 different firms and received proposals from these firms
on doing the 1982 Audit. The Manager and the Finance Director are
recommending that the firm of Abdo, Abdo ~ Eick be hired.
241
November 16, 1982
Ulrick moved and Polston seconded the following resolution.
RESOLUTION #82-30:1 RESOLUTION APPROVING THE HIRING OF ABDO, ABDO,
EICK FOR A FEE NOT TO EXCEED $7,000 FOR THE
1982 CITY AUDIT
The vote was unanimously in favor. Motion carried.
INFORMATLON/MISCELLANEOUS
A. Property Evaluation Report Covering City Buildings - Done in June, 1982.
B. ..Memo from David Hozza on Downtown Development
C. Clipping from Mpls. Tribune on Block Clubs
D. Westonka Chamber of Commerce ''Chamber. Waves" - November, 1982
E. Minutes Senior Citizens Housing Corp. - Meeting October 19, 1982
F. Tonka Corp, Letter given to Tonka Employees - Regarding company benefits
now that the plant is closing.
G. L.M.C.D. Third Quarter Budget Report
H. Letter from State Department of Economic Development to Tonka Corp.
Regarding possible uses for the Tonka Building.
I. Park Commission Meeting - Minutes of November 4, 1982
J. Land Use Planning Workshop - to be conducted November 30, 1982, at
the Earle Brown Center.
K. Minnesota Financing - A brochure from the State providing background
on financing companies in Minnesota.
Swenson moved and Charon seconded a motion-to adjourn at 11:40 P.M.
The vote was unanimously in favor. Motion carried.
am,
~~~
ity Manager
~~~m ('~Pr,~
Fran C1ark,City Cler !