HomeMy WebLinkAboutCity Council - 02/20/2024 - Workshop
APPROVED WORKSHOP MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY, FEBRUARY 20, 2024 CITY CENTER
5:00 – 6:25 PM, HERITAGE ROOMS
6:30 – 7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG
Narayanan, and Lisa Toomey
CITY STAFF: City Manager Rick Getschow, Police Chief Matt Sackett, Fire Chief Scott Gerber,
Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and
Recreation Director Amy Markle, Administrative Services/HR Director Alecia Rose,
Communications Manager Joyce Lorenz, City Attorney Maggie Neuville, and Recorder Sara
Aschenbeck
Workshop - Heritage Rooms I and II (5:30)
I. SOUTHWEST TRANSIT UPDATE 5:30 – 6:00 p.m.
Getschow introduced Eric Hansen, Southwest Transit CEO. Hansen explained Southwest Transit
reinvented its business model after employee work habits changed post-pandemic. Southwest
Transit serves under a joint powers agreement between Eden Prairie, Chanhassen, and Chaska.
Victoria, Carver, Edina, and Shakopee are also served under contract. Southwest Transit’s three
primary services include express downtown, on demand PRIME, and special event
transportation. Hansen explained 80 percent of PRIME riders begin or end their trip in Eden
Prairie. Over 446 thousand rides were provided in 2023, an increase of 20 percent from the
previous year. Ridership on the express bus downtown is four times lower than before the
pandemic. A 2023 community survey indicated riders have a generally favorable view of
Southwest Transit. Southwest Transit received a 92 percent positive rating during the State Fair.
Hansen explained Southwest Transit’s newly adopted strategic direction. Strategic priorities
include financial sustainability, premium customer experience, growth and innovation, and
community and people. Southwest Transit plans to enhance service in the City in the next two
years. A grant received from the Met Council will provide fixed route service along the 494
corridor from Southwest Station to the Minneapolis –St. Paul airport. Case inquired if Southwest
Transit is permitted to pick up customers in Bloomington. Hansen confirmed Southwest Transit
is permitted to pick up customers in Bloomington as they traveling back to Eden Prairie. Since
the 494 corridor fixed route service would start and end in Eden Prairie, no special approval is
needed.
Toomey asked if Southwest Transit is providing service to light rail stops. Hansen confirmed
Southwest Transit has received a grant to provide first and last mile service around Southwest
Light Rail Transit (SWLRT) stops. Ideally Southwest Transit and the SWLRT will have a
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February 20, 2024
Page 2
connected network within the City. Southwest Transit is researching providing service via
autonomous vehicles. Narayanan asked if the City needs to revise City Code governing
commercial driverless vehicles. Getschow stated they are governed at State level. Hansen
explained Southwest Transit is working with a company currently providing autonomous
commercial service in Grand Rapids.
Hansen explained PRIME will expand into Carver County, Minnetonka, and Hopkins in the
coming years. Southwest Transit will also expand special event service. Southwest Transit
provided transportation to a Minnesota Wild game for the first time in a partnership with the
Eden Prairie Hockey Association. Transportation to the Renaissance Festival will be provided
this year. Next year Southwest Transit will provide transportation to the State Fair every day.
Hansen stated Southwest Transit’s largest challenge is sustainable revenue. Most funding is
provided from motor vehicle sales taxes. The State legislature’s recent transportation sales tax
will provide $32 billion to the Met Council over the next 30 years. $9 million of that revenue has
been allocated to Suburban Transit Agencies, of which Southwest Transit received $3 million. If
that is the only funding provided, Suburban Transit Authorities would receive only 0.03 percent
of the $32 billion total raised. Toomey asked if the $9 million provided to Suburban Transit
Agencies is over the 30 year period. Hansen clarified the $9 million provided was a one-time
allocation. The new transportation sales tax does not provide a guaranteed stable revenue stream
in future years. As the sales tax is collected for purposes of transit, Suburban Transit Agencies
should be provided with a guaranteed revenue stream.
Hansen stated Southwest Transit’s plan is to be completely electric in the next few decades.
There are EV chargers in Chanhassen, which will soon be installed in Chaska and Eden Prairie.
Southwest Transit has three prime electric vehicles currently, and four electric busses are coming
in the fall. Narayanan encouraged Southwest Transit to educate customers on electric vehicles
(EV) and the soon to be deployed electric busses. Toomey asked if other cities use electric
busses. Hansen answered Rochester and Racine, Wisconsin use electric busses. Case stated his
assumption that the loss of ridership is not specific to Southwest Transit. Case asked if other
Suburban Transit Authorities are sharing ideas for how to restructure after the pandemic. Hansen
stated Southwest Transit’s ridership was heavily dependent on the express bus to Minneapolis
and more heavily suffered post pandemic compared to other transit authorities. Southwest
Transit is now the largest micro transit service in the State with 147 thousand rides in 2023. On
demand transit and autonomous vehicles are the future of public transportation.
Narayanan stated a need for a joint strategy between the City and Southwest transit for the
coming decades. Hansen noted transit planners are visiting Eden Prairie and surrounding cities
next week for a tour to help Southwest Transit prepare a strategic plan for the future of transit.
Case summarized a recent discussion he attended that theorized cars moving to a subscription
service in the future. Autonomous vehicles are safer compared to human drivers and will be
cheaper to insure. More drivers will opt for autonomous vehicles with cheaper insurance rates.
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February 20, 2024
Page 3
II. UNFI SITE 6:00 – 6:30 p.m.
Klima explained representatives from UNFI and CSM Corporation have a development proposal
to share for Council feedback. The proposed development is on the 46 acre vacant west parcel of
the UNFI campus. It is currently zoned office and rural and is guided for office, park/open space,
and medium high density residential. The UNFI campus constructed in the 1970s on the 61 acre
east parcel is the original and only development on this property. Environmental protections have
significantly strengthened since the 1970s. The west parcel has many protected natural features
including flood planes, wetlands, oak forest, lowland hardwood forest, and bluffs. Development
on the west parcel is limited at best, if not undevelopable per Staff feedback. UNFI is looking to
obtain Council feedback on the proposal before significant time and money is invested.
Narayanan inquired if any residential homes are nearby. Klima stated the closest residential
homes are across highway 494. There are also homes across Bryant lake. Toomey inquired what
area of the western parcel would be developable. Klima stated the proposal is for the intersection
of highway 494 and Valley View Road.
Bill Katter, CSM Corporation Special Consultant, stated this proposal is driven by the current
state of the Residence Inn at the intersection of highway 494 and Flying Cloud Drive. The
existing hotel no longer meets Residence Inn brand standards due to building age and condition.
CSM is under contract to purchase the west parcel of the UNFI campus to construct a
replacement Residence Inn hotel, a freestanding restaurant, and an apartment building. The site
would need a comprehensive plan change and a zoning change from office to commercial. UNFI
would propose to move the current residential zoning south to enlarge the open space.
Katter explained the office market has significantly shrank since the pandemic. Over 30 office
campuses in the metro area will transition out of the current office space use. The proposal
would generate fewer traffic trips in both the peak morning and evening as compared to the
previous proposal of 128 thousand square feet of office space. The east parcel may be acquired
by the Eden Prairie School District, and traffic for a hotel and apartment would move in an
opposite pattern than school district traffic. Narayanan asked if commercial and residential
properties generate a similar amount of traffic trips. Ellis stated it depends on the type of
commercial, but he does not foresee traffic being an issue on this site. Hennepin County and
MnDOT would ideally agree to a full access road, but there may be a need for a cross access
easement if the traffic demonstrates need.
Katter stated the hotel contains 140 hotel rooms and would be five stories. There will be a
mixture of suite and conference room sizes. The apartment building would comprise two five
story buildings with a combined 320 units. The apartment building does intrude into the steep
slope area. The access road would be supported by a retaining wall. The proposed development
area contains 25 thousand caliper inches of existing trees, mostly in the site of the apartment
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February 20, 2024
Page 4
building. However more of the site would be preserved as public open space. The proposed
hotel, restaurant, and apartment building do not disrupt the shoreland buffer district. CSM is
hoping for Council feedback specifically on scope and density.
Toomey asked for the Police call rate on long term stay hotels. Sackett stated Police spends
slightly more time at long term stay hotels. It is largely dependent on clientele. Residence Inn
does have a lower Police call rate compared to other long term stay hotels. Toomey noted her
concern if the east parcel ends up as a school a long term stay on the west parcel would be too
close. Katter stated the hotel will be marketed mainly to business travelers.
John Ferrier, CSM Corporation Vice President of Architecture and Development Services,
explained the new development would have minimal view impacts to existing homes on Bryant
Lake. Narayanan inquired if there is a walkway from the hotel to the light rail. Ferrier answered
there is a path but it is too far to be walkable.
Katter stated the development is an opportunity to replace lost tax base. The hotel and restaurant
have nominal impacts to geographic features of the site and current traffic impacts. Although the
apartment building has a larger impact on geographic features, it’s a chance to provide affordable
units on a location without a visibility disruption to existing neighbors. Narayanan asked what
order the hotel, restaurant, and apartment building will be built. Katter confirmed all construction
will occur simultaneously. Narayanan asked how many apartment units would be affordable.
Katter stated around 60 of the 320 units would be affordable.
Freiberg explained his main concerns with the proposal are the large number of trees removed
and potential impacts to the bluffs. Toomey and Narayanan expressed they are comfortable with
the hotel piece. Case asked Staff for their main concerns. Klima stated concerns largely focus on
natural features of the site including tree removal and impacts to bluffs and shorelands. More
information will be provided by soil tests and tree inventory. Getschow added the developer’s
due diligence procedures prior to building will show if the site is buildable or not. Case noted the
Council is amenable to the hotel and restaurant proposal. Narayanan asked if the apartment could
be constructed with more stories and a smaller footprint. Katter noted there is likely a thoughtful
way to design the apartment to have a smaller impact on the bluffs. The Council thanked the
presenters.
Open Podium - Council Chamber (6:30)
III. OPEN PODIUM
IV. ADJOURNMENT