City Council Workshop

10801 Town Square Drive 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, January 15, 2015 6:30 PM Cloverleaf Farm Room A NOTICE OF WORKSHOP MEETING 1 Call to Order The meeting was called to order by Mayor Ryan at 6:30 p.m. 2 Roll Call Quorum Present. ALSO PRESENT: Clark Arneson, City Manager, Patrick Sweeney, City Attorney; Bryan Schafer, Planning and Community Development Director; Bob Therres, Public Services Manager; Joe Huss, Finance Director; Ward Brown, Financial Analyst; Chris Olson, Police Chief/Safety Services Manager; Roark Haver, Communications Technician; Al Thorp, Senior Engineering Technician; Catherine Sorensen, City Clerk and Recording Secretary Linda Dahlquist. Present: 5 - Mayor Ryan, Councilmember Swanson, Councilmember Clark, Councilmember King, and Councilmember Hovland Absent: 2 - Councilmember Bourke, and Councilmember Herbst 3 New Business City of Blaine Page 1 City Council Workshop Minutes - Final January 15, 2015 3-1 WS 15-01 WOODLAND VILLAGE AFFORDABLE HOUSING COMPONENT Sponsors: Schafer Attachments: Woodland Village - Neighborhood Map Planning and Community Development Director Schafer stated Woodland Village started out as Garden Wood in 2006 and the project stalled in 2008. He noted that the proposed lots’ soil was contaminated and cost $1.5 million to clean up the area by soil exchange, which was funded by the developer, Met Council and EDA. He stated the proposed lots were marketed for affordable housing. He stated Woodland held discussions with Twin City Habitat to build houses. He stated Twin City Habitat said they would pay $40,000-$50,000 for each lot, which the developer’s cost is $69,000. He stated the homes would be built similar to the other homes in Woodland Village. He noted that the houses would have two mortgages that Twin City Habitat will hold on each house. He commented that the second mortgage would not have to be repaid if the homeowner stays in the house longer than ten years. He stated Woodland is seeking $10,000 per lot equaling $80,000 from EDA and pooled TIF. Councilmember Swanson asked what if the homeowner wants to sell their home. Planning and Community Development Director Schafer replied the homeowner would have to pay off both mortgages. Councilmember Hovland asked if the EDA would get the $80,000 back. Planning and Community Development Director Schafer replied no. He stated the City is getting an investment in property value. Councilmember Clark asked if the lots are in a TIF district. Planning and Community Development Director Schafer replied no. Councilmember Clark asked what if the City does not approve this plan. Planning and Community Development Director Schafer replied Twin City Habitat would buy the lots and the City would have to pay $250,000 due to the age of the grant. Councilmember King asked if the funds are available and not earmarked for something. Planning and Community Development Director Schafer replied the funds are available. Discussed City of Blaine Page 2 City Council Workshop Minutes - Final January 15, 2015 3-2 WS 15-02 OAK PARK PLAZA REDEVELOPMENT Sponsors: Schafer Attachments: Oak Park Plaza Presentation Hugh Robinson, Tri-Land Developments, Inc., gave an overview of the shopping center’s ownership. He stated Tri-Land is a 37-year-old company based in Chicago that is specialized in acquisition, redevelopment, leasing, financing, management and sale of existing retail shopping centers. He showed examples of several redeveloped shopping centers. He gave an overview of the current Oak Park Plaza. He noted that the center has deteriorated considerable. He stated that 70% of the shopping center is vacant. He stated Tri-Land proposes to demolish 36,000 square feet on the north end of the shopping center where the old Jubilee store, Snyder’s store, and dry cleaners store in order to build a new Cub Foods store. He stated asbestos will need to be abated prior to renovation and the former dry cleaners store needs PERC mitigation. He stated in order to build the new Cub; utilities will need to be relocated. He stated that the project consists of constructing a new 45,000 square foot Cub store, replace sidewalks, and overlay parking lots and drive service lanes. Councilmember Hovland asked if the road to the parking lot is owned by Tri-Land. Mr. Robinson replied yes. He noted that Tri-Land does not own the outlots. Councilmember Hovland asked about traffic issues with a Cub store. Mr. Robinson replied the entrances will not be moved. He stated the drive will run along the front of the Cub store and the building will be placed closer to the rear property line. Councilmember Swanson asked if any of the City’s Cub stores are planning to move. Mr. Robinson replied this will be a new Cub store. He noted this is a smaller version Cub store. Mr. Robinson gave an overview of exterior renovations to the remaining building, parking lots, and signage. He noted that the shopping center will be ADA compliant. He stated the projected investment is approximately $17 million. He noted that design drawings will be completed in February and pricing should be completed in March. Councilmember Clark asked how long the project will take. Mr. Robinson replied work would start in the summer 2015 and expect to be done by summer 2016. Councilmember Clark asked how the existing stores would be impacted. Mr. City of Blaine Page 3 City Council Workshop Minutes - Final January 15, 2015 Robinson replied the current stores could be inconvenienced at times. Councilmember Hovland asked if the current stores could be moved to another space while under construction. Mr. Robinson replied Tri-Land had not considered moving tenants. He noted that the tenants have 15-year leases. Councilmember Clark asked if the south building will have the same façade. Mr. Robinson replied not exactly the same due to the buildings profile. Mayor Ryan suggested removing the berms in the parking lot. Mr. Robinson replied the berm will be removed and the site will have new upscale landscaping. Mr. Robinson stated Tri-Land is asking the City to make Oak Park Plaza a Tax Increment Financing Redevelopment District; authorize the sale of tax exempt TIF bonds to provide a net $3.2 million to reimburse ownership for TIF eligible costs incurred by ownership to redevelop Oak Park Plaza; and make available existing pooled TIF reserves to provide the difference if $3.2 million is not achieved. Councilmember Swanson asked about the impact on taxable values. City Manager Arneson replied staff has not provided the analysis. Mr. Robinson replied it will be more significant than what it is today. Councilmember Hovland asked if the EDA has a limit on the number of TIF districts. Finance Director Huss replied there are statutory requirements for TIF districts. He noted that the City cannot create TIF districts just anywhere. Councilmember Clark stated he is in favor of the project and the neighborhood would love to have a Cub store. He noted that Tri-Land has owned the property for a long time. Mr. Robinson replied Tri-Land acquired the property in 2005 and were in discussions with Rainbow and then Roundy’s which were to anchor the shopping center, but deals fell through due to the economy and the real estate market. Mr. Robinson gave an overview of the leveraged return on investment projection and expected benefits. Discussed City of Blaine Page 4 City Council Workshop Minutes - Final January 15, 2015 3-3 WS 15-03 FRANCHISE SETTLEMENT AND ORDINANCE AMENDMENT Sponsors: Arneson Attachments: GreatLand Conditional Approval (NMTC-City) 20141217-1 Franchise Amendment (NMTC) 20141212-1 CenturyLink Proposal City Manager Arneson stated the North Metro Telecommunications Commission, a Joint Powers Commission comprised of the municipalities of Blaine, Centerville, Circle Pines, Ham Lake, Lexington, Lino Lakes and Spring Lake Park, and Comcast of Minnesota, Inc., holds a franchise to operate a cable television system in each respective member city pursuant to a franchise ordinance. He stated this resolution conditionally grants consent to the transfer of control of the Cable Television Franchise and Cable Television System from Comcast is buying Time Warner to create Midwest Cable doing business as Greatland Connections, Inc. He stated Comcast is offering a franchise extension to 2020, which would generate $800,000. Councilmember Swanson stated the franchise will be extended for a total of 6 years and the legal issues that are currently in existence will be settled and paid by Comcast in order for their merger to go through. City Manager Arneson stated this is a win win situation for the City and the City will get a high definition channel. Councilmember Swanson commented that the North Metro channels will go on the program guide. Councilmember Clark asked if a separate agreement can be made in order to not challenge the franchise. Councilmember Swanson replied the franchise will have six more years. City Manager Arneson replied at that time the company would be an internet company, which cannot be regulated. Councilmember Swanson stated the residents who only take local channels will be grandfathered and surrender that program. City Manager Arneson stated Comcast’s competitor is Century Link’s Prism. He stated Prism is interested in the franchise and all seven cities would have to approve an agreement. Councilmember Swanson commented a second company has to cover the same territory as the first company, which is State Law and expensive. Councilmember King stated he is concerned about Greatland’s future City of Blaine Page 5 City Council Workshop Minutes - Final January 15, 2015 financial liability. He stated it would be good to have a second franchise. Councilmember Swanson commented cable companies have gone bankrupt and other companies pick them up. Discussed 3-4 WS 15-04 INFORMATION PROVIDED TO RESIDENTS ON ASSESSED IMPROVEMENT PROJECTS Sponsors: Therres Attachments: Oak Park Blvd Letters.pdf 2014 Overlay Info Sheet.pdf Public Services Manager Therres stated there is an assessing issue with Naples due to the light industrial on one side of the road that is paying the same as the heavy industrial side. He gave an overview of the notification process and the documents that are mailed to affected residents. He commented that this is a unique situation. He suggested the heavy users pay more than the lighter users. Councilmember Hovland stated the same situation happens in residential when properties that are larger than others in the neighborhood are ghost plotted for future development. Councilmember Clark asked if the road could be funded from garbage funds. City Manager Arneson replied no, the garbage haulers are regional and not just Blaine. Planning and Community Development Director Schafer stated the issue today is the road use and not a zoning issue. He stated one side of the road is undeveloped and the other side developed and paying the same assessment amount. Councilmember Swanson asked if the property should be zoned heavy industrial. Planning and Community Development Director Schafer replied no, he turns away companies every other month that are interested in the property backing up to Naples and 35W. He noted some heavy industrial uses could be a problem. Mayor Ryan commented the City’s zoning needs to be reviewed because uses in light industrial vary greatly. Discussed City of Blaine Page 6 City Council Workshop Minutes - Final January 15, 2015 Other Business City Clerk Sorensen stated interviews will be scheduled for Planning Commission and Park Advisory Board for January 27, 2015 at 6:15 p.m. City Manager Arneson proposed a Workshop Retreat be scheduled for February 12, 2015. City Manager Arneson commented the Council will review staff’s top three recommendations for City Attorney. Councilmember Hovland requested a review of bus benches in the right of way. City Engineer Keely stated staff is working on the bus benches currently. She noted that staff had to work with the utility companies first. ADJOURN The Workshop adjourned at 8:18 p.m. City of Blaine Page 7