City Council Workshop

10801 Town Square Dr. City of Blaine Blaine MN 55449 Anoka County, Minnesota Minutes - Final City Council Workshop *While this is a public meeting where interested persons are welcome to attend, it is a work session for Council and staff to discuss issues before them. It is not for the purpose of receiving public input. Thursday, December 12, 2013 6:30 PM Cloverleaf Farm Room A Meeting Number 13-62 NOTICE OF WORKSHOP MEETING The meeting was called to order by Mayor Ryan at 6:30 p.m. Quorum Present. ALSO PRESENT: Clark Arneson, City Manager; Tom Sweeney, City Attorney; Bryan Schafer, Planning Director; Bob Therres, Public Services Manager; Joe Huss, Finance Director; Ward Brown, Budget/Fiscal Analyst; Chris Olson, Police Chief/Safety Services Manager; Roark Haver, Communications Technician; and Jane Cross, City Clerk, Recording Secretary Linda Dahlquist. Councilmembers Clark and Hovland arrived at 6:32 p.m. Present: 6 - Councilmember Clark, Councilmember Bourke, Councilmember Herbst, Mayor Ryan, Councilmember Hovland, and Councilmember Swanson Absent: 1 - Councilmember Kolb 1 WS 13-76 REDEVELOPMENT PROPOSAL FOR UNIVERSITY AVENUE/109th AVENUE Sponsors: Schafer Attachments: Anoka Co University Proposal - Site Plan Anoka Co University Proposal - Bdg Elevations Planning Director Schafer stated Anoka County Highway Department (ACHD) purchased nine homes along the east side of University Avenue for the roadway expansion planned for 2014. He stated two homes (10931 and 10937) which are north of ACCAP’s housing units have not been purchased. He stated staff has met with ACCAP and ACHD to discuss the two remaining homes and redevelopment scenarios. He stated a concept plan was prepared based on removing the two remaining homes and four ACCAP-RISE homes. He gave an overview of the 13 elements of the proposed concept plan of five City of Blaine Page 1 City Council Workshop Minutes - Final December 12, 2013 attached multi-family buildings for a total of 30 units. He noted that the four ACCAP-RISE units would be blended into the new plan. He stated there is an expected project gap in funding; therefore, an EDA request of pooled TIF funds would need to be earmarked for the project and would also cover building permit/WAC/SAC/Park Dedication. Councilmember Bourke is concerned that the two homeowners would not want to sell. He noted he is also concerned about the density. Planning Director Schafer replied the homes are 15 feet from the property line to University allowing more room in the back for driveways and parking. Planning Director Schafer commented the homes would not have basements. Councilmember Hovland asked about the two existing homes. Planning Director Schafer replied the two homes were built in the 80’s. He noted there will be a pond on 109th. Councilmember Hovland asked what is south and north of the development. Planning Director Schafer replied south is commercial and north is the trailer park. Councilmember Bourke asked about ACCAP’s policy. Planning Director Schafer replied the homes are for families who earn less than $50,000 annually. He noted the units will have two or three bedrooms. Councilmember Herbst requested call information from Chief Olson for the ACCAP properties. Councilmember Clark asked if there is an alternative for the property. Planning Director Schafer replied the County would own the land and may or may not maintain it. Mayor Ryan asked if the taxes would pay back TIF. Planning Director Schafer replied no. Councilmember Bourke asked if a less dense project would work in the area. Planning Director Schafer replied a less dense project would not be cost effective. Jeff Johnson, Anoka County, stated funding for the project comes from the Minnesota Housing and Finance Agency. He stated the proposed unit would coincide with a development in Fridley. Councilmember Bourke commented he is concerned about the traffic and that he does not want to force the two homeowners out. He is also concerned about the existing neighbors and the buffering of the new development. City of Blaine Page 2 City Council Workshop Minutes - Final December 12, 2013 Councilmember Hovland asked about sound buffering inside the homes. Mr. Johnson replied the contractor will use triple pane windows and six inches of spray foam insulation. Planning Director Schafer stated that Coon Rapids plans to upgrade lighting on University Avenue to LED lighting. He stated that if the City upgrades to the same lighting it would cost approximately $80,000. Discussed 2 WS 13-77 2014 PROPOSED SENIOR HOUSING BUDGET Sponsors: Huss Attachments: Senior Housing-2014 Budget Request-Scenario 1 Senior Housing-2014 Budget Request-Scenario 2 Senior Housing-2014 Budget Request-Scenario 3 Sr Housing Rent Schedule Finance Director Huss stated the EDA Senior Housing Fund accounts for the operations and management of the Cloverleaf Courts and Blaine Courts residences, which are owned and operated by the Blaine EDA. He stated the fund continues to generate net operating gains, but reserves have declined due to increased capital spending over the past five years. Finance Director Huss gave an overview of a proposed five-year budget for the Senior Housing Fund that includes three rate scenarios of annual increases of 3.5%, blended annual increases for current residents of 3.5% and new tenants 5%, or 5.0% annual increase. Councilmember Swanson clarified that existing renters would have a 3.5% increase and new renters would pay a 5% increase and the following year both renters would pay a 3.5% increase. Finance Director Huss commented the property reserve industry standard is 10% of the value of the property. He noted that not a lot of private operators are able to keep 10% in reserve. Council discussion on rental rates and a possible 4% increase across the board. City Manager Arneson commented staff would need to inform the residents that this is a five-year rate increase plan. Council consensus is 3.5% for the first year and 5% for the next 4 consecutive years. City of Blaine Page 3 City Council Workshop Minutes - Final December 12, 2013 Planning Director Schafer commented that the operating costs are comparable between the two buildings. He noted that the rents are approximately $100 higher at Cloverleaf Courts. City Manager Arneson commented a meeting will be scheduled with the residents in January. Discussed 3 WS 13-78 DISCUSSION OF CAPITAL IMPROVEMENT FUNDED PARK PROJECTS Attachments: Park Projects using CIP funds Public Services Manager Therres stated the Council set aside funds from the Capital Improvement Fund to finance improvements to existing City parks with a five-year plan from 2014 to 2018. He gave an overview of the five-year plan that lists the parks and projects to be done. He noted that the park projects are estimated to be $200,000 per year. He stated park projects in 2014 are for Aurelia, Mary Elizabeth, and Ostmans; park projects in 2015 are for Quail Creek, trail maintenance, Xylite, and Carrara East; park projects in 2016 are for Quincy; park projects in 2017 are for Cloverleaf, London, and Little League; and park projects in 2018 are for President, Laddie Lake, and trail maintenance. Mayor Ryan commented that landscaping would be a good project for the Eagle Scouts. Mayor Ryan commented the shelter in Laddie Lake Park has deteriorated and should be removed. Council consensus that Laddie Lake Park is underutilized. Finance Director Huss stated funds for the park improvement projects would come from the Capital Improvement Fund. He noted that the fund is also used for the Lexington Athletic Park. Discussed ADJOURN The Workshop adjourned at 7:45 p.m. City of Blaine Page 4