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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. 234 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 !