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City Council Workshop

Regular Meeting

Oakdale, MN · January 10, 2023

AgendaMinutes

Minutes

WORKSHOP MINUTES OAKDALE CITY COUNCIL January 10, 2023 The City Council held a workshop on Tuesday, January 10, 2023 at Oakdale City Hall, 1584 Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5:00 PM. Present: Mayor Kevin Zabel Council Members: Jake Ingebrigtson Andy Morcomb Susan Olson City Staff Members: Christina Volkers, City Administrator Sara Ludwig, City Clerk Brian Bachmeier, Interim City Engineer Andrew Gitzlaff, Community Development Director Melanie Lee, Human Resource Director Nick Newton, Police Chief Lori Pulkrabek, Communications Manager Jim Romanik, Public Works Manager Kevin Wold, Fire Chief Jason Zimmerman, Finance Director Other: Carrie Frost, EDC Candidate Stan Karwoski, Washington County Commissioner Mandy Leonard, Washington County Public Works Project Manager Lyssa Leitner, Washington County Public Works Planning Director John Stark, Enduring Cities, LLC Consultant NEW MAYOR HOUSEKEEPING ITEMS Mayor Zabel began by welcoming any thoughts from the group about suggested minor tweaks to the current meeting format or other “housekeeping” items communicated in a written correspondence to the Council Members prior to the meeting. Council Member Ingebrigtson would like to keep things conversational and said there is no need to acknowledge each comment. He stated although the intent of the suggested changes is good, it could possibly cause more friction. Mayor Zabel explained that the intent is to follow City Code which follows Robert's Rules of Order which requires recognizing speakers. He assured the group that anybody who wants to speak on a topic will have the opportunity. His expectation is that things will remain conversational and casual and natural conversations will occur during discussions. Mayor Zabel emphasized that adjustments can be made along the way. In response to Council Member Ingebrigtson’s question about Mayor Zabel’s willingness to change City Code due to meeting conversations not flowing well, Mayor Zabel replied he is does not support a change to City Code away from Robert’s Rules of Order as almost every city in Minnesota uses them as well. WORKSHOP MINUTES JANUARY 10, 2023 PAGE TWO City Administrator Chris Volkers stated that Robert’s Rules of Order are formally for the Council meetings, but are intended to be applied to all meetings of the Council, however, there is a little bit of discretion. She suggested that Council see how this new format goes. Mayor Zabel added whether the Council uses Robert's Rules of Order or Mason's Manual of Legislative Procedure, it is going to be the same procedure. He would like to try out the new format to see how the Council feels about it. Council Member Morcomb was supportive of using Robert's Rules of Order especially for contentious topics. Council Member Olson was in agreeance with Council Member Ingebrigtson. She is supportive of a free-flowing conversation. She brought forth a concern about forgetting a comment due to having to wait until the next opportunity to speak. Mayor Zabel stated that this topic is a challenge with any governing body. He added, aside from contentious issues, the new format should not pose a problem with free-flowing conversation. Council Member Olson clarified that Mayor Zabel’s intent is to have the Council Members be respectful and wait for each other to finish. Mayor Zabel confirmed that is his intent, adding that he is trying to be cognizant to not cut others off. Mayor Zabel moved on to touch on the fact that communication is key. He stated there has been good progress made with this in the last few years due to staff making sure the Council is getting good information. He invited Council to talk to him or Ms. Volkers if any mistakes occur. Council Member Olson noted that Mayor Zabel is receptive to both negative and positive feedback. TANNER’S LAKE PROPERTY REDEVELOPMENT UPDATE Community Development Director Andy Gitzlaff began the discussion by providing background of the parcels that make up the Tanners Lake property. There were two separate restaurants on each of these parcels – Blackie’s Eatery and Toby’s on the Lake. The City of Oakdale Economic Development Authority (EDA) received special legislative approval to form a Tax Increment Financing (TIF) district in 2008. The City EDA then purchased the former Blackie’s Eatery restaurant site on the north side and demolished the building in 2008. In 2014, the City EDA purchased the parcel to the south (former site of Toby’s on the Lake). Mr. Gitzlaff shared two areas of guidance for pursuing development of this site. The first being that Tanners Lake was identified as a future redevelopment site in the adopted Oakdale 2040 Comprehensive Plan. The second being the inclusion of the site for the potential expenditure of TIF surplus funds in the TIF Spending Plan for districts 1-4 and 1-6. WORKSHOP MINUTES JANUARY 10, 2023 PAGE THREE Some of the past proposals identified by Mr. Gitzlaff include a variety of uses such as multifamily affordable and market-rate housing, mixed-use, boat launch/dock, medical office, restaurant, and a hotel. As of fall 2022, staff have revived efforts to market the site for redevelopment which included creating and posting a marketing flyer on the City and County websites, listing the property on Minnesota Commercial Association of Real Estate/Realtors (MNCAR), attending and promoting the property at the MNCAR Fall Expo, and hiring an Enduring Cities, LLC consultant to assist in marketing the site and engaging with developers. Mr. Gitzlaff turned the presentation over to John Stark, Enduring Cities LLC Consultant to go over the redevelopment process. Mr. Stark shared his experience which includes 60 redevelopment projects over a 30-year span. In his experience, the most successful redevelopment projects were the result of a good City-developer relationship that include such things as mutually understood expectations, understanding the incremental nature of the process, all parties providing as much transparency as possible, and improving the concept plan by giving and receiving open and honest feedback. He added that the relationship grows from eliminating unknowns and increasing commitment. Next, he noted the stages of the redevelopment process which are exploration, concept plan, exclusive rights, redevelopment contract, land use approvals and financing approvals, and groundbreaking. The City is currently in the exploration stage and is searching for proposals after restarting the developer outreach process and hiring an experienced redevelopment professional consultant. Mr. Stark reached out to a dozen developers and had an in-depth meeting with half of them. Most of the developers were aware of the site and a few of them had made proposals in the past. He noted that there are three developers interested in making a preliminary proposal with multifamily likely being the primary use. He explained that once concept plans are presented, the developer that best meets staff’s proposed criteria would be seen as the frontrunner. At this point, the two parties would enter into an exclusive rights agreement which means the City ceases marketing the site and does not engage with other developers, meanwhile the developer agrees to reimburse the City for costs incurred for financial and engineering analysis. At the end of this 60-90 day exclusive rights period, one of three decisions is made. The developer concludes that the plan is not feasible, the developer is comfortable moving forward as is, or the developer identifies obstacles that typically can be overcome by working with the City. The next part of the discussion focused on developer feedback and concerns. Mr. Stark received the following feedback from the developers. The lake is the number one asset of the site, the developer would be a pioneer of the surrounding area, and the location near 3M Global Headquarters, Gold Line BRT, and regional destinations increase its attractiveness. On the contrary, Mr. Stark received the following concerns from the developers. The Department of Natural Resources (DNR) lakeshore setback, a sewer line bisecting the site, the privately-owned lot segmenting the site, and the water table depth impacting the structured parking. WORKSHOP MINUTES JANUARY 10, 2023 PAGE FOUR In response to Council Member Ingebrigtson’s question about the willingness of the owners to sell the private lot, Mr. Gitzlaff said they have been willing to sell in the past for a significant cost. A recent attempt to contact the owner by mail received no response. In response to Council Member Ingebrigtson’s question about an unforeseen problem if the owners of the private lot will not sell, Mr. Stark said there could still be an adequate development project without that lot, however to have a great development project then that piece of the site would be needed. Mr. Stark continued with concerns from the developers regarding the process. Several developers had a bad experience in the past, prior to current City leadership. Some developers are concerned there will be a desire from the City to “dictate” the use regardless of market reality. The current state of the economy – materials costs, supply chain delays, and increased interest rates – were also concerns shared by the developers. He shared his opinion that public financing will likely be needed because urban land prices are much greater than “greenfield” sites. Additionally, redevelopment sites have costs such as structured parking, relocating utilities, bad soils, etc. that “greenfield” sites do not. Fortunately, Oakdale has excellent public finance advisors in Mikaela Huot and the rest of the Baker-Tilly staff. They can assist developers to determine if their return is greater than other types of investments. Mr. Gitzlaff presented the proposed criteria that staff will use to evaluate proposals. Staff will look at the financial capacity of the developer, other projects completed by the developer that are similar in scope and scale, level of financial assistance requested and ability to maximize public benefit, ability to maximize the site(s)’ potential and inclusion of public amenities, and the timeline for completion. Moving on, Mr. Gitzlaff outlined the next steps in the process. Upon completion of proposal evaluations, staff will make a recommendation to Council on a preferred developer to move forward with. The preferred developer would present their proposal at a Council Workshop. Upon City Council affirmation of the preferred developer, the City would enter into an exclusive rights agreement. A full financial analysis would be conducted prior to a redevelopment contract. Council Member Olson voiced concern about the amount of multifamily housing already being developed in the City. She asked if the interested developers know about all the other development occurring in the City. Mr. Gitzlaff said the developer would perform a market study which would have that information. He added there is still a housing supply shortage in the Metro area especially multifamily options. Council Member Ingebrigtson asked if the City could legally finance the sale of the property itself as a contract for deed with attractive terms to help negate the high interest rates. Mr. Stark indicated in his experience this is a legal option. Mayor Zabel asked the group if there are any uses for this site that are off the table. Council Member Morcomb was supportive of considering any development opportunity that is presented. Council Member Ingebrigtson was in agreement. WORKSHOP MINUTES JANUARY 10, 2023 PAGE FIVE Council Member Morcomb asked if the three proposals already received include the use of all three lots. Mr. Stark indicated that would be the preference of developers bringing forth proposals. Mayor Zabel recalled that in his past experience the owner of the private lot would be more willing to consider selling once a development agreement is reached, for a price. Council Member Ingebrigtson noted the biggest concern about the property from a development perspective is the privately-owned parcel. Mayor Zabel asked the group if they are comfortable with the proposal evaluation criteria proposed by staff. Council Member Olson shared her preference against a multifamily development on the site, however she would be open to any proposals that come to Council for discussion. Council Member Morcomb was in favor of moving forward as outlined by staff. CENTURY AVE COALITION Lyssa Leitner, Washington County Public Works Planning Director began by stating this initiative has been led by Washington County Commissioner Stan Karwoski. She continued that Century Avenue is a long stretch that has a lot of needs and a lot of city partners. MnDOT currently has jurisdiction over the vast majority of this road as it is on the border of Ramsey and Washington Counties. There are a lot of high priority areas such as Century Ave & Hwy 36. Commissioner Karwoski, along with Ramsey County Commissioners, wanted to pull together a coalition to help bring partners together to advocate for the whole range of needs along this corridor. Ms. Leitner went through the first slide covering current and near-term projects. With MnDOT having jurisdiction over the vast majority of this road, they are leading a planning study right now that will help identify needs and priorities. One of the aspects of the study is the turnback which refers to returning jurisdiction of this road back to the County. Ms. Leitner indicated Century Avenue is on the turnback list with parts on the north and south having been turned back to the counties already. The majority (about 6 miles in the middle) is still within MnDOT jurisdiction. Ms. Leitner continued stating the County will not take over without an understanding of the financial liabilities. She added that Oakdale staff is involved in the MnDOT planning study (Planning and Environmental Linkages PEL Study). The second slide presented by Ms. Leitner addressed other current and near-term projects including the Metro Gold Line which crosses over Century Avenue at the very south end. There are multiple grants both County staff and MnDOT staff are looking at including Corridors of Commerce which was submitted for Highway 36 & Century Avenue. Ms. Leitner added, if awarded, MnDOT will lead and find the additional funding for that project. The County was successful in receiving $7 million dollars in federal region funding for reconstruction of the segment north of I-694. WORKSHOP MINUTES JANUARY 10, 2023 PAGE SIX Ms. Leitner noted that development and redevelopment along the entire six miles of the corridor is a huge component of the needs of this project. She moved on to talk about the challenges of the coalition which include MnDOT having jurisdiction, but the counties and cities having a greater focus. To add to this, there are no Century Avenue improvement plans programmed in MnDOT plans. Additionally, the only project programmed in Washington County is the project north of I-694. Ms. Leitner continued with the opportunities of the coalition which include a variety of funding mechanisms, significant interest from all the jurisdictions at the state, county, and city level, and a coordination of overlapping projects. With two counties and nine cities coming together to be an effective body, Ms. Leitner indicated there is a need to be unified, organized, strategic, and speaking with one voice. She reviewed the proposal of the Century Ave Coalition which include counties as the staff leads and the cities providing in-kind support with project prioritization, funding requests, and reoccurring meetings. The County is not proposing a formal coalition at this time; presently, there will be no formal bylaws, agreements, or financial commitments. The request is to have the Mayor or a Council Member from each city as a coalition member plus an alternate, and assigned city staff for communication purposes. The next steps provided by Ms. Leitner include additional meetings with City Councils through January, a kickoff for the coalition in early 2023 which will be coordinated with the current MnDOT study, and engagement with the 2023 legislative session as necessary. Commissioner Karwoski added that during his time on Oakdale's Council, he wrote a letter in conjunction with North Saint Paul and Maplewood asking the state to prioritize the Highway 36 & Century Avenue Interchange. Commissioner Karwoski shared the following information. Century Avenue would become a county road and typically the counties do not tax the property owners; the goal of this coalition is to be proactive; the few hundred million dollar turnback will be done in pieces; the County would lean on Oakdale's ears to be a leader on the input; the coalition allows the interested cities and counties to have one voice, but the bigger cities would be the driving force. He suggested that each city could do a comprehensive plan to have a coordinated effort of redevelopment. Mayor Zabel stated that the group agrees this has been a very complicated stretch for a long time. He sees the value in a coalition because of the effectiveness of the Gold Line Coalition. He voiced a concern about the proposed structure. Mayor Zabel’s preference would be to have an elected official and a staff member representing the City the entire time. He explained that Oakdale properties along this stretch are diverse. From a public relations perspective, it is going to be a delicate balance with the City’s residents. His preference for staff involvement would be especially for things like financing, the environment, and public works. WORKSHOP MINUTES JANUARY 10, 2023 PAGE SEVEN Commissioner Karwoski stated that the plan was to have a consistent City staff member attend along with an elected official. Mayor Zabel would prefer that City staff have an equal voice as the elected officials because of the operational expertise that is needed. Commissioner Karwoski replied that the County is meeting with other cities, but that does not seem like an obstacle that cannot be overcome. Council Member Ingebrigtson asked about Oakdale’s financial obligations. Commissioner Karwoski explained that right now Century Avenue and Highway 36 are state roads which would be logical to turnback to the County. There could be financial aspects due to a city's choice such as adding a sidewalk that connects to the road, however it would be a county road in which the county would maintain the right of way and everything within it. Ms. Leitner clarified that the actual turnback would not have City cost. She added that if the County owns the road and there is a design project, the County would abide by the cost-share policy currently in place with the City. The variety of infrastructure projects is always done jointly. Council Member Ingebrigtson asked if the City does not have the money for their share could they veto the project. Mayor Zabel offered that the point the County is making is that these would be somewhat optional- type projects. Ms. Volkers clarified if there are projects along the corridor, there are cost-share agreements already in place and the City would have to pay their share separate from anything the City would want to add like a trail or a bus stop, etc. Ms. Leitner verified Ms. Volkers’ statement. She added there are quarterly staff meetings with City staff that talk about all the upcoming CIP projects. There also was a public engagement for that with the intent that there will not be any surprises. The City would see the project and funding in the CIP five years out. The County can talk to staff about pushing projects out based on funding ability. She added that scope changes do happen on a project-by-project basis. Council Member Ingebrigtson shared his concern that even with a five-year plan, a five million dollar project could hurt the City financially, for example. Commissioner Karwoski asked the group to look at it as an investment, i.e. there is a 200 million dollar investment in a road with a lot of redevelopment benefits, and the City is asked to fund $5 million of it. He added that there will be time to go through the development and address these hurdles when they become closer to reality. WORKSHOP MINUTES JANUARY 10, 2023 PAGE EIGHT Council Member Morcomb was comfortable with joining the coalition as the City will have authority to review and decide what it would like to do with these projects. He requested to see the current cost-sharing to have an understanding upfront. He added without four-to-five years of heads up it would be difficult to participate in this type of cost-sharing. Ms. Leitner said the County will pass the information along to Interim City Engineer Brian Bachmeier as he is the City staff member on the current MnDOT project. Council Member Ingebrigtson asked to see current cost-sharing agreement with the County. Ms. Volkers stated she will get the cost-sharing agreement to Council. Although Mr. Bachmeier is the contact, going forward there needs to be another way to get this information to Council. EDC VACANCY INTERVIEW – CARRIE FROST Mayor Zabel thanked and welcomed EDC Candidate Carrie Frost and explained the interview process. The Council Members and Ms. Volkers introduced themselves. Ms. Frost provided a brief introduction including her place of business, CCF Bank which does commercial lending, residency, and involvement in the Oakdale Area Chamber of Commerce. Council Member Morcomb asked about the residency rules of the commission. Mayor Zabel explained that the Economic Development Commission (EDC) has been given past Council exceptions to those that work for Oakdale businesses. Council Member Morcomb asked Ms. Frost if she lends to a lot of developers in her line of work. Ms. Frost indicated some lending to developers is done, however it is not a large amount. Being a community bank, the lending limit is $27 million, but the more realistic amount is $10 million or less. Due to these numbers, lending to developers is limited. Council Member Morcomb asked Ms. Frost if there could be a conflict of interest being on the commission and also being a lender to developers in the City. Ms. Frost did not see any potential conflict of interest. Council Member Olson asked Ms. Frost about the goals she would like to accomplish while serving on the commission. Ms. Frost would like to know more of what is going on in Oakdale. She added that she will be able to learn things to bring back to her business when doing commercial loans. Mayor Zabel stated Ms. Frost would be a wonderful addition to the EDC. He said it is a great group of local business owners and people interested in the development climate in the community. WORKSHOP MINUTES JANUARY 10, 2023 PAGE NINE He told Ms. Frost that Council will discuss the interview and staff will be in contact about the decision. He added that it will be on the next Council agenda for action. DISCUSSION RE: EDC APPLICANT Council was in agreement to move forward with appointing Ms. Frost to the EDC. Ms. Volkers stated that she and Mr. Gitzlaff had met with Ms. Frost and her boss at an earlier date because they want their bank to get more involved in Oakdale. PROPOSE A FEE FOR UTILITY TASK VEHICLE ANNUAL PERMITS Ms. Volkers began by stating that during the utility task vehicle permit demonstration year there were a handful of permits granted. She said there were no complaints during that time. At the December 13, 2022 Workshop meeting, Council indicated the City should continue this permit. She told Council that the cost of the permit, time, taxes and delivery is not all that much, and that staff is recommending $25 for the fee. She explained that Council can choose to not impose a fee, but having a set fee is in line with all other permits. Ms. Volkers said if there are any problems with the fee staff will return to Council to discuss. Council Member Morcomb was supportive of the suggested fee. Council Member Ingebrigtson did not have a problem with the suggested fee. Mayor Zabel was glad there were no issues during the demonstration period as this permit was a response to a resident request. He would like to make it part of the communication schedule so residents know that this permit is available. Council Member Olson was supportive of the suggested fee. Ms. Volkers added that oftentimes there is discussion about charging for the service because property taxpayers are paying staff salaries. She reminded the group that Council has said if there is extra work involved to administer the permit then the City as a whole should not have to pay for it as a result of one resident’s request. Mayor Zabel indicated there is a state law that says the City can only charge up to the cost of administering the service. Typically, staff will look at how many hours are involved. Ms. Volkers said the fee will be added after the next round of fee schedule adjustments coming to Workshop soon. There will be one agenda item for Council when all fee schedule adjustments have been discussed and agreed upon. CARDINAL MEADOWS MONUMENT AND LANDSCAPE MEDIAN AT 15TH STREET NORTH AND HYDRAM AVENUE NORTH WORKSHOP MINUTES JANUARY 10, 2023 PAGE TEN Interim City Engineer Brian Bachmeier started the discussion by adding that two more resident surveys were received in the last week – one in favor of removing the monument and one in favor of keeping it. In response to Council Member Olson’s question about the need for a left turn lane onto 15th Street North, Mr. Bachmeier said the traffic volume is not at a level where it is needed. Mr. Bachmeier shared concerns from staff about the snow plowing challenges due to the narrow spaces and landscaped median. The irrigation system within the median has not been operational for years. He added that there is an opportunity to remove the monument with this street improvement project which would make things easier for City operations. In response to Mayor Zabel’s question about the City enforcing a parking restriction ordinance near the monument within a certain number of feet of 15th Street North, Mr. Bachmeier stated there is currently no parking restriction and the City does not typically enforce them in residential neighborhoods. He added that a few years back, the City was monitoring the parking situation and could not recall any major problems. Council Member Ingebrigtson was in favor of removing the monument due to the excessive traffic during Eagle Point Elementary School pickup and drop-off times. He added that it is possible Hydram Avenue will be used at some point in the future if changes are not made to the current situation. Mayor Zabel was in agreement and suggested this point of discussion should be added to the current conversation with the residents in the neighborhood. If the monument is removed then the school's traffic pattern is going to be reevaluated. Council Member Ingebrigtson asked if the City could legally stop school buses from using Hydram Avenue. Mayor Zabel said the City could put weight restrictions on that road. Council Member Olson asked if there was an increased cost to the developer and an increase in sale price of the lots due to adding the monument originally, Mr. Bachmeier said he does not know that, but that it was not a condition from the City to put in the monument. Council Member Olson added that from a snow plowing perspective it is costly to have to maneuver around obstacles. Regarding the removal of the monument, Council Member Olson would like more information before making a decision. She suggested presenting the residents with more options and more information. Mayor Zabel would like to inform residents of the effects of their decision when either answering ‘yes’ or ‘no’. He suggested Council go door-to-door to hand out more information. Council Member Morcomb was in agreement with Council Member Olson about providing residents with more information. With the majority of the residents not wanting the monument removed, he was not inclined to take it out without fully explaining the implications. Mr. Bachmeier clarified that the school district would have to come to the City Council to change their circulation pattern and access points. WORKSHOP MINUTES JANUARY 10, 2023 PAGE ELEVEN Police Chief Nick Newton shared that the Police Department has not had any complaints on this issue. In response to Council Member Olson's question about the extra amount of time it takes to clear the snow due to the monument, Public Works Manager Jim Romanik said it takes approximately an additional five minutes each time the plow has to clean that area. Mayor Zabel stated that the current situation does not warrant removal of the monument. The Council should take that extra step to make sure residents fully understand what their decision means. He referenced complaints he has received about traffic on 15th Street during the busy school times. Ms. Volkers asked Mr. Bachmeier to create additional information for residents that would explain anticipated ‘yes’ or ‘no’ scenarios, and asked that residents are given a couple of weeks to provide additional feedback. Mayor Zabel reminded the group that the plan approval will come back for a decision at the March 28, 2023 Council meeting. He noted there is a clear level of passion for and against this decision and Council should be mindful of that when making a decision. Ms. Volkers suggested adding language such as, "based on the comments and questions", on the additional information so residents know they are being heard. COUNCIL TOPICS Council Member Olson asked if it is possible to make the City website readable in other languages, possibly Hmong or Spanish. She added having this feature may increase resident participation. Communications Manager Lori Pulkrabek has been researching accessibility tools and will bring them to Ms. Volkers for discussion. She added that Google Translate will be coming back to the City website soon. Council Member Morcomb asked for an update on the 40th Street construction project. Ms. Volkers asked Ms. Pulkrabek to provide Council Member Morcomb with access to the street improvement updates. Council Member Olson asked that a five-minute Administrator’s Update be added to the Workshop agenda moving forward so Ms. Volkers can share what is happening within the City that Council may not need to take action on but should be aware of. Mayor Zabel shared a new initiative which is the creation of a sixty-second video each week in which the Mayor touches on three-to-four topics to keep an open line of communication with Oakdale residents. He asked that Council Members provide input about pieces of information residents may want to know about. The video will drop every Monday morning at 8:00 AM. WORKSHOP MINUTES JANUARY 10, 2023 PAGE TWELVE Ms. Pulkrabek stated that she would like to utilize the City’s membership in the Ramsey Washington Suburban Cable Commission to create shorter videos for social media. One suggested video is to highlight what each department does at a high level. She requested that Council share any feedback on videos they would like to see. Mayor Zabel noted that the City has to create content that fits within the residents’ lives and not rely on them to come to the City for information. Council Member Olson asked for clarification on the content of the sixty-second Monday video’s. Mayor Zabel clarified that it would only be one person, in one room, and done in one shot given the brevity of the video. He continued that he will be using Council Topics and current City projects as content for these videos. Council Member Olson shared her sentiment that it appears Mayor Zabel is the face of the elected body if he is the only one seen in these videos. She added it makes the other Council Members seem less important. Mayor Zabel stated from a communications perspective there is a lot of value in consistency. He added that all Council Members should look for ways to engage with residents. The suggestion of having a Council table at Indoor Markets was brought up. Council Member Morcomb would like information shared with the Council before it is shared with the public. Council Member Ingebrigtson was in agreeance about having a consistent face for the sixty-second videos. He added it would be beneficial if there were a controversial crisis to have a point-person. Ms. Volkers reminded the group of the City’s emergency management plan and the relevant point- people based on the type of event. Council Member Ingebrigtson stated that the public will gravitate towards the elected official regardless of what the emergency management plan says. ADJOURNMENT The workshop was adjourned at 6:46 PM. Respectfully submitted, Sara Ludwig, City Clerk

Agenda

AGENDA City Council Workshop Workshop January 10, 2023 HADLEY CONFERENCE ROOM 5:00 PM 5:00 PM New Mayor Housekeeping Items 5:10 PM Tanner’s Lake Property Redevelopment Update 5:40 PM Century Ave Coalition – Guest, Lyssa Leitner Washington County 6:00 PM EDC Vacancy Interview – Carrie Frost 6:10 PM Discussion re: EDC Applicant 6:15 PM Propose a Fee for Utility Task Vehicle Annual Permits 6:30 PM Cardinal Meadows Monument and Landscape Median at 15th Street North and Hydram Avenue North 6:40 PM Council Topics 6:55 PM Recess for Regular Meeting COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Andrew Gitzlaff, Community Development Director Date: January 10, 2023 Subject: Tanner’s Lake Property Redevelopment Update At the workshop, Andrew Gitzlaff Community Development Director, and John Stark consultant with Enduring Cities, will provide an overview of the sites, past proposals, recent efforts to market the sites and the next steps in the redevelopment process. BACKGROUND The City of Oakdale Economic Development Authority (EDA) received special legislative approval to form a Tax Increment Financing (TIF) district in 2008. The City EDA then purchased the former Blackie’s Eatery restaurant site on the north side and demolished the building in 2008. In 2014, the City EDA purchased the parcel to the south (former site of Toby’s on the Lake). The total capital expenditure for both sites was approximately $2,422,000 including demolition. 1 The sites strongest attribute is that it is on Tanner’s Lake. It is also within close proximity to many regional destinations such as near 3M Global Headquarters and the Gold Line BRT project. The City has been actively marketing and pursuing redevelopment options for the two sites for the past 15 years. Former proposals included a variety of uses such as multifamily affordable and market-rate housing, mixed-use, boat launch/dock, medical office, restaurant and a hotel. These proposals all failed to advance due to financial constraints (lack of both public subsidy and private equity), market changes (Great Recession and COVID-19) and/or site challenges. Site challenges include the following: • City sewer pipe that bisects the site • Discontinuous parcels and irregular shape • Shoreland setbacks • Blighted conditions • Unknown soil conditions The site is identified in the adopted Oakdale 2040 Comprehensive Plan as a future redevelopment site. The site was recently included as a priority site for the potential expenditure of TIF surplus funds in the TIF Spending Plan for district 1-4 and 1-6 approved by Council in 2022. As of Fall 2022, staff have revived efforts to market the site for redevelopment which included the following: • Created a marketing flyer, posting on website • Listed property on Minnesota Commercial Association of Real Estate/Realtors@ (MNCAR), the foremost location for real estate transactions* • Attend and promoted property at MNCAR Fall Expo* • Hiring consultant Enduring Cities to assist in marketing the site and engaging with developer *MNCAR expo attendance and listing on MNCAR exchange courtesy of City partnership with Washington County Community Development Agency A total of more than 20 informal conversations have been had with developers since this effort began. There are three developers who are interested in proceeding forward. The main component of all three proposals is multifamily housing. NEXT STEPS Staff intends to ask each developer to submit a concept plan and initial financial analysis. Other developers who have expressed interest will also be given the opportunity to submit a proposal. Staff will review the proposals based on the following criteria: • Financial capacity of developer • Projects of a similar scope and scale completed by the developer • Level of financial assistance requested and ability to maximize public benefit • Ability to maximize site(s) potential, intensity, mix of uses and inclusion of public amenities • Timeline for completion Staff will then make a recommendation to Council on a developer to move forward with into an exclusive rights agreement, a precursor to a development contract. See attached handout prepared by Enduring Cities for more information about the stages of the redevelopment process. 2 FINANCIAL CONSIDERATIONS Given the site constraints, the site will likely require public assistance in the form of TIF in order for a redevelopment project to be financially feasible. The level of assistance will depend on how much money the City will receive for the land and the specifics of the development proposal. Prior to entering into a development contract, an independent financial analysis will be conducted by the City’s financial consultant, Baker Tilly, to ensure the City is paying for what is absolutely needed to make the project happen. To better understand current value of the property the City has hired an appraiser to complete an appraisal of the site by mid-February. CITY COUNCIL DIRECTION Staff requests City Council review the information presented and be prepared to discussed and seek clarity and provide guidance on next steps. Attachments Summary Presentation Stages of the Redevelopment Process Marketing Flyer 3 Tanner’s Lake Redevelopment Project Update January 10, 2023 City Council Workshop What we will cover • Background • Site Acquisition / History • Past Proposals • Recent Efforts • Development Process • City and Developer Relationship • Stages of Redevelopment Process • Developer Feedback • Public Financing • Next Steps Site Acquisition / History • 2008 • Tax Increment Financing District formed • City Economic Development Authority (EDA) purchased northern half and demolished former Blackie’s Eatery restaurant • 2014 • City EDA purchased southern parcel (former Toby’s on the Lake bar) • 2019 • Tanner’s Lake site identified as a future redevelopment site in 2040 Comprehensive Plan • 2022 • City Council approved TIF Spending Plan for District 1-4 & 1-6 identifying Tanner’s Lake site as a priority for potential expenditure of TIF surplus funds • Renewed efforts by staff to market site for redevelopment Past Proposals Recent Efforts • Created a marketing flyer, posting on website • Listed property on Minnesota Commercial Association of Real Estate/Realtors (MNCAR), the foremost location for real estate transactions • Attended and promoted property at MNCAR Fall Expo* • Hiring Enduring Cities to assist in *MNCAR expo booth and listing on MNCAR exchange marketing the site and engaging courtesy of City partnership with Washington County Community Development Agency with developer The City & Developer Relationship • The most successful redevelopment projects are the result of a good City-developer relationship; including such things as • Mutually understood expectations • Understanding the incremental nature of the process • As much transparency as possible from all parties • Concept plan improvement resulting from giving and receiving open and honest feedback • The relationship grows from • Eliminating Unknowns • Increasing Commitment PARTNERSHIP LOW PARTNERSHIP LOW PARTNERSHIP Groundbreaking LOW Stages of the Redevelopment Process • Exploration • Concept Plan • Exclusive Rights • Redevelopment Contract • Land Use Approvals and Financing Approvals • Groundbreaking Exploration (search for proposals) • Developer outreach restarted • Experienced redevelopment professional hired as consultant • Consultant reached out to 12 developers and had in-depth meeting with 6 • 3 developers interested in making a preliminary proposal • Multifamily likely the primary use Developer Feedback • Love the site – lake is number one asset • The surrounding area “is just ok” – (developer would be pioneering) • Location near 3M Global Headquarters, Gold Line BRT, regional destinations increases attractiveness View from Site Developer Feedback • Concerns about the site • DNR lakeshore setback • Sewer line bisecting the site • Privately-owned lot segmenting the site • Water table depth impact on structured parking • Concerns about the process • Several had a bad experience (prior to current City leadership) • Will there be a desire to “dictate” the use regardless of market reality? • Willingness to provide public financing to fill any funding “gap” • Concerns about the economy • Materials costs, supply chain delays and (most of all) increased interest rates Potential Sewer Relocation • Many developers have “hit the pause button" Public Financing Will Likely be Needed • Why? • Urban Land Prices are much greater than ”greenfield” sites, yet rents are not higher at a commensurate rate • Redevelopment sites have costs that greenfield sites do not • Structured parking • Relocating utilities • Dealing with bad soils/fill • Potential environmental issues • Other “unknowns” Public Financing is a Science • TIF and other public financing are largely misunderstood; they are often thought to be an enticement that is the result of negotiations • In actuality, determining need for/amount of public financing is a rational and methodical process • Oakdale has excellent public finance advisors in Mikaela Huot and the rest of the Baker-Tilly Team • Developers and their investors must make a return that is greater than they can make in other types of investment (or why build?) • The amount of public financing is the minimum required to allow the developers to make this return Next Steps • Proposed criteria for staff to evaluate proposals • Financial Capacity of developer • Projects of a similar scope and scale completed by the developer • Level of financial assistance requested and ability to maximize public benefit • Ability to maximize site(s) potential, intensity, mix of uses and inclusion of public amenities • Timeline for completion • Upon completion of evaluation, staff will make a recommendation to Council on a preferred developer to move forward with • The preferred developer could present their proposal at a Council workshop • Upon City Council affirmation of the preferred developer, City would enter into an Exclusive Rights Agreement • A full financial analysis would be conducted prior to a redevelopment contract Questions The Stages of the Redevelopment Process John Stark Stage Exploration Concept Plan Exclusive Rights Redevelopment Contract Final Approvals Description City markets the site to an array Developer feels comfortable City ceases marketing the site Both parties agree in Everyone is resolved that the of developers to gauge the level enough with the available info other give the “preferred” principal that they are going project will happen and is of interest and the breadth of to spend minimal time and developer time to do their to do the development committed to overcoming any development possibilities. money on creating a concept. “due diligence.” based on the info gathered. obstacles. Knowns - Site size & location - Which developers are willing - The value of the land - The exact unit/sf count - As much as possible - general expectations on use, to spend initial time & money - The unit counts +/- 10% - Construction costs finances, density, etc. - Which plan is most closely - General Council/PC support - Agreement on financials - general site characteristics aligned with Policies & (utilities, environmental, etc.) previously stated desires Unknowns - Specific market demand - How will developers & plans - Will there be a gap - Are there issues lying in - Very few unknowns at this point - Impact of external stakeholders be differentiated & chosen? and, if so, is it surmountable? the weeds? - Issues that pop up will be - Level of policymaker comfort - Exact unit counts - Is there sufficient market - Details, details, details resolved and will not threaten the with public assistance - Construction costs demand for the units overall project - Policymaker comfort with - Value of development - Working to ID construction in/exclusion of affordability, etc. costs City - Provide known policy - Provide existing (public) - Not to engage with other - Approval of type & - Granting land Use Approvals Commitment information (primarily Comp documents developers for x days amount of public assistance - Development Agreement Plan & Zoning) - Policymakers ask questions - IF there is a Gap, there is a - Reviewing construction - Issuing building permits - Forthcoming about engaging and provide general feedback general willingness to consider plans - Closing on the sale of the City- multiple developers (but no decisions) financial assistance - Processing land use owned property - Forthcoming about knowledge - Pay for general financial - Schedule/process for land approvals of policymakers desires to the analysis & appraisal use approvals extent known Developer - Spending initial time (a - Spending money on - Spend x days refining - A lot of “soft” money and - Development Agreement Commitment developers biggest liability) architects proposal to include detailed increasing “hard” money - Closing on the property purchase & - Spending time seeking architecture & financing + - Closing on their financing Expenditures community input basic engineering - Signing construction contract - Market research to ID need - Pay for the City’s costs Primary Action The identification of qualified The Concept is generally The Gap has been identified “Dotting the I’s and crossing Groundbreaking! Needed to developers with an interest supported (but not necessarily and there is public the T’s” Advance to “the deal” at this point) commitment to helping fill it Next Step UNIQUE LAKEFRONT PROPERTY Development Opportunity on Tanners Lake in Oakdale 253 Geneva Avenue North, Oakdale, MN 55128 PROPERTY HIGHLIGHTS • 2.25 and 0.5 acre shovel-ready redevelopment parcels 1 • Owned by Oakdale Economic Development Authority (EDA), guided mixed-use • Across from 3M Global Headquarters (10,000+ employees) • Adjacent to Condo Building and Hotel Privately • Located in a Redevelopment TIF District Owned • Tanners Lake with gorgeous views and minimal Vacant Parcels shoreline setbacks • Located along Gold Line Bus Rapid Transit (BRT) route and trail system opening 2025 LOCAL AMENITIES • 5 miles from downtown St. Paul • 20 minutes to MSP International Airport • 270,717 population (2021) within 5 mile radius, projected 281,926 in 2026 2 • MN Hwy 120 traffic count 18,600 • I-94 traffic count 82,000 • Bordered by Maplewood and Woodbury DEVELOPMENT OPPORTUNITIES: • Restaurant • Hotel • Office • Mixed-Use Residential • Other Commercial Uses 1- Approximately 0.5 Acre 2- Approximately 2.25 Acres www.ci.oakdale.mn.us UNIQUE LAKEFRONT PROPERTY Development Opportunity on Tanners Lake in Oakdale 253 Geneva Avenue North, Oakdale, MN 55128 Woodbury CITY OVERVIEW RESOURCES AVAILABLE The City of Oakdale is a vibrant and growing suburban community within Washington County, east of the Minneapolis- • Additional City and County St. Paul metropolitan area. Oakdale is conveniently located Demographics along Interstates 94 and 694 and is known for its • Previous development proposal site neighborhoods, community parks and a business-friendly plans (Hotel, Office, Multi-Family, environment. Over 625 businesses call Oakdale home. Restaurant) • Alta Surveys (2008) QUICK FACTS • Phase 1 Environmental Site Population: 28,303 Assessment (2008) Households: 11,304 • Preliminary Geotechnical Report Square Miles: 10.94 (2008) Median home value: $264,300 • Utility Location Maps (Current) Median household income: $72,511 • Traffic Count Maps from MnDOT • Oakdale Business Resource Packet • Free business consulting services and gap financing through MCDD Open to Business CONTACT INFO • Size-Up your potential business with Andrew Gitzlaff the new Washington County tool Community Development Director 651-730-2806 Contact City Staff for This Info andrew@ci.oakdale.mn.us www.ci.oakdale.mn.us COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Christina M. Volkers, City Administrator Date: January 10, 2023 Subject: Century Avenue (TH 120) Coalition BACKGROUND Washington County Planning staff, Lyssa Leitner Planning Director and Madeline Dahlheimer Planner, will attend and present their proposal for a new Coalition to further efforts for the long term and ongoing project related to re-envisioning and reconstruction of Century Avenue/TH 120. MnDOT launched Phase 2 of their Planning and Environmental Linkages (PEL) study, which will help inform and guide future investment and improvements in this corridor. An initial priority for the coalition could be to play a key role as a community stakeholder group during the PEL study process, meeting 3-4 times over the course of the 12-18 month study to receive updates and give feedback to MnDOT’s project management team. Information and update meetings have occurred over the years with communities surrounding the Century Avenue corridor. It is now being recommended that a coalition of Century-adjacent communities could be an effective platform to centralize communication, help advance corridor improvements, and advocate for funding. FINANCIAL CONSIDERATIONS Washington County staff will share information on potential financial commitments of the City towards this project. COUNCIL DIRECTION REQUESTED It is requested that Council engage with Washington County staff on this initiative including participation by the City of Oakdale and the City of Oakdale’s potential responsibilities including financial. It is then requested that the Council provide intent. Attachment PowerPoint Presentation on Century Avenue Coalition Century Avenue (TH 120) Coalition Oakdale City Council January 10, 2023 Current and Near-Term Projects • Studies: • MnDOT Phase 2 Planning and Environmental Linkages Study 694 • From CSAH 12/Wildwood Rd (previously TH 244) to I-94 • Scope 36 • Engage stakeholders • Review existing conditions • Identify and evaluate improvements • Turnback: • Counties won’t take on financial liabilities • MnDOT PEL Study will help identify corridor needs and costs • Use to develop priorities for jurisdictional transfer over the next decade (or more) 94 2 Current and Near-Term Projects, cont. • Transit: • METRO Gold Line: under construction – crosses Century Ave at I-94 METRO Purple Line: considering routes along 694 Century Ave to/from Century College 36 • Grants: • Washington County submitted Corridors of Commerce grant for 36 and Century Ave. • Washington County was awarded $7 million from Regional Solicitation process for reconstruction of Century north of I-694 – in CIP for 2027 construction – turnback would need to occur before construction begins 94 3 Century Avenue Coalition 4 What are the challenges? Current MnDOT jurisdiction with long-term plan for turnback to counties Improvements along Century or at Century and 36 are not programed in MnDOT plans. Only project north of I-694 programmed in County Plans. County supports interchange work at Century and 36 Traffic congestion and multi-model needs continue to increase 5 What are the opportunities? Funding (federal infrastructure bill, earmarks, grants, bonding) Significant interest from multiple jurisdictions to implement improvements Multiple projects / corridor activities with overlapping stakeholders 6 Opportunities - Many interested parties • Two counties and nine cities are invested in this corridor • To be effective at pursuing federal and state dollars we need to be: Unified Organzied Strategic Speak with one voice 7 Coalition Benefits • Need an entity to bring the partners together as one voice • Proposal: TH 120/Century Avenue Coalition • Counties as lead, Cities as coalition partners • Brand under one name • Initial focus on: • Working with MnDOT and Metro Transit on their ongoing projects • Project Prioritization • Funding requests • Schedule reoccurring meetings • No formal bylaws, agreements, or financial commitment at this time – may be desired in the future • Request: Mayor or councilmember from each City as Coalition member plus alternate 8 Next Steps • Additional meetings with city councils (through January) • Early 2023: Kick-Off Century Coalition – coordinated with MnDOT engagement on Planning and Environmental Linkages (PEL) study • 2023 Legislative session engagement, as-necessary 9 Questions Lyssa Leitner Planning Director Washington County Public Works Lyssa.Leitner@co.Washington.mn.us 651-430-4316 10 COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Community Development Director, Andrew Gitzlaff Date: January 10, 2023 Subject: Economic Development Commission Interview Candidate: Carrie Frost BACKGROUND At the January 10, 2023 work session, the City Council will interview an employee of an Oakdale business interested in serving on the Economic Development Commission. The Economic Development Commission has two vacancies. Community Development Director and staff liaison to the Economic Development Commission, Andrew Gitzlaff has completed the staff interview of the candidate. Application and staff interview feedback materials will be provided to the City Council separately. Interview Schedule: 6:00 PM Carrie Frost COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Christina M. Volkers, City Administrator Date: January 10, 2023 Subject: Propose a Fee for Utility Task Vehicle Annual Permits BACKGROUND At the November 23, 2021 City Council meeting, Council waived the reading and adopted Ordinance 878, Amending Chapter 12 – Motor Vehicles and Traffic, adding Article 8 – Utility Task Vehicle (UTV) Operation on Local City Streets; and for the inaugural permit process to commence January 2022. Feedback obtained in December of 2022 from the Fire Department, Police Department and Public Works was there were no concerns or complaints from the public regarding the use of UTVs in the community. Now that UTV permits will continue, city staff is asking for guidance on whether or not the City should assign a fee to the UTV permits going forward. A line would be added to the 2023 Fee Schedule for this item if so. COUNCIL DIRECTION REQUESTED Staff is requesting guidance on whether the City should assign an annual fee to the UTV permits going forward. COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Brian Bachmeier, Consulting City Engineer Date: January 10, 2023 Subject: Cardinal Meadows Monument and Landscape Median at 15th Street North and Hydram Avenue North BACKGROUND As part of the City Project R2023-01 Street Reconstruction project, a survey was sent to the Cardinal Meadows neighbors to determine if they support or oppose the removal of the monument sign and median. Removal of the monument sign and median would be beneficial for these reasons: • Improve the efficiency and effectiveness of the City’s snow removal • Allow for creation of a left turn lane at the intersection • Allow for a wider boulevard between the sidewalk and curb • Create opportunities for on-street parking for the abutting owners • Eliminate neighborhood’s responsibility to maintain landscaping and sign A total of 27 surveys were mailed, 13 responded to keep the monument sign and median, 6 favored removal, and 8 did not respond. COUNCIL DIRECTION REQUESTED Staff is looking for direction from the City Council on whether to keep or remove the monument sign and median. Attachment Cardinal Meadow Resident Comments Received

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