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HomeMy WebLinkAboutCity Council - 04/02/2024 - Workshop APPROVED WORKSHOP MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY, APRIL 02, 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. ECONOMIC DEVELOPMENT UPDATE Getschow introduced David Lindahl, Economic Development Manager. Lindahl explained the City recently met with medical technology companies including GreaterMSP (Minneapolis Saint Paul Regional Economic Development Partnership). GreaterMSP is applying to receive Federal grant funding for a regional medical technology hub. Case noted the City is becoming a hub for medical technology companies. Lindahl stated the Eden Prairie School District (EPSD) is starting construction on an Innovation Sandbox project to be completed in the fall. Eden Prairie High School (EPHS) will be renovated to create a collaboration space for EPHS students and local entrepreneurs. Case noted he is glad to see EPHS include entrepreneurship and innovation in curriculum. Lindahl explained the Economic Development Fund financed an entry sign on the Minnesota River Bluffs Regional Trail bridge over east bound Highway 212. A cost feasibility analysis is underway for an entry sign at the intersection of Shady Oak Road and south bound Highway 494. There are several challenges including high costs, MnDOT approval, and right of way restrictions. Other improvement projects include the Singletree Lane and Prairie Center Drive intersection. The right turn lane was reconfigured for improved safety, and the Economic Development Fund was used to redesign and landscape the intersection. In the Golden Triangle, the City worked with the County to use $200 thousand of grant funding to build a trail along Shady Oak Road closing a gap in the trail system. Lindahl stated the City is exploring constructing an entry sign on a retaining wall at City West Station. The sign would be installed in 2024 and funded by the Economic Development Fund. Nelson asked what type of plantings would be used for the sign. Lindahl stated the City would use landscaping that would remain short to preserve the view of the sign. Nelson said the City City Council Workshop Minutes April 2, 2024 Page 2 should use a flowering plant. Narayanan noted this sign is not uniform to other entry signs in the City. Nelson asked if the sign could have a curved top for uniformity. Klima explained the challenges with the retaining wall site. Existing color and materials needed to be incorporated in the design. The depth is 18 inches, which does not leave much room for the sign and landscaping. The text and color is consistent with existing entry signs. Staff can continue to research sign options including color. Lindahl explained business retention and expansion activities in the City. Eden Prairie based NVE Corporation received a $400 thousand grant through the Minnesota Investment Fund for a cleanroom expansion. Eden Prairie based company Aldevron is also seeking a grant through the Minnesota Investment Fund. Lindahl noted the City discussed business conditions at a Breakfast with the Mayor event this year. The City has offered meet and greet events with companies including Christianson Insurance Group and Rxfunction. Case asked how many total meet and greet events the City has participated in. Lindahl answered over 300 since 2003. The realtor forum held in May keeps local realtors informed of community developments. The event included a bus tour and a presentation from the EPSD. Collaborations with the Chamber of Commerce including the Economic Development bus tour, annual EPHS career expo, session priorities event, and the annual golf fund raiser. Lindahl outlined development activity in the City. A 40 thousand square foot building at the intersection of Flying Cloud Drive and Prairie Center Drive intended to be a grocery store is still vacant. Goodwill inquired about leasing half the space. Narayanan asked how the building entrance would be configured if Goodwill only occupies half the space. Lindahl confirmed Goodwill would create a separate entrance. There is a vacant 41 thousand square foot industrial building at 10700 Prairie Lakes Drive. A developer purchased the property with the intention to redevelop the site into 21 single family homes. The Planning Commission will vote on this proposal on April 8. Case stated single family homes are a good match for the surrounding twin homes. Klima added the developer was proactive in outreach to surrounding neighbors. Case asked what zoning this project is requesting. Klima confirmed this project is requesting R1-9.5 zoning. The existing single family homes to the south are R1-13.5, slightly denser. Narayanan asked how a commercial building redeveloped into single family homes affects City tax collected. Getschow answered the City benefits more from residential properties than commercial due to the fiscal disparities program. Case stated commercial properties redeveloped as residential has disadvantageous planning implications for growing cities. As the City is mostly developed, the EPSD generally views more residential properties as a positive. Narayanan noted more housing is beneficial for the City overall. Case stated costly housing is also beneficial as homeowners in existing affordable homes will sell in favor of an upgrade. Lindahl summarized redevelopment at Eden Prairie Center. Staff is encouraging mall owner MetLife to consider other uses besides retail. The owner is interested in redeveloping for City Council Workshop Minutes April 2, 2024 Page 3 potential uses including hotel, residential, and commercial. Demolition and redevelopment costs are extremely expensive. The developer is hoping to use Tax Increment Financing (TIF) to help cover costs. The mall, although heading toward economic obsolesce, is only 50 years old and does not meet the blight test necessary to establish a TIF district. The City is pursuing special legislation to waive the blight test. If the legislation passes, a TIF district could be created. The developer has indicated they intend to submit a plan this year. Case asked if the developer has considered a multi-level senior living including a health clinic. Lindahl confirmed the developer has considered senior living. Nelson stated if senior living is pursued there should be a definite separation from mall patrons. Narayanan asked if the developer has considered an event center. Lindahl stated the developer has not considered an event center. Nelson stated a large indoor pickleball court would be a good idea. Lindahl explained Target, Scheels, Kohls and Von Maur are privately owned. JCPennys and the remaining retail are owned by MetLife. The value of the portion owned by MetLife has dropped from $85 million in 2019 to $30 million today. Narayanan asked how many visitors the mall has. Lindahl stated the mall has 7 million visitors annually, down from its peak of 12 million annual visitors. Narayanan asked if there are any height restrictions for developing. Klima answered the City’s zoning districts have height restrictions, the Council can choose to grant a waiver. Case stated he met with MetLife representatives to explore redevelopment possibilities. The City communicated all good ideas are worth considering and there are no explicit confines. Lindahl summarized new development and redevelopment in the City. Office Depot is considering redevelopment as they have more square footage than needed. Narayanan asked if the area would stay commercial. Lindahl confirmed the area would stay commercial. Nelson stated the parking lot must be refinished. Lindahl confirmed the entire area, including the parking lot, would be redone. Smash Park Pickleball and Entertainment and Kwik Trip are interested in locations in the City. A 425-unit building, Bluestem Apartments, is under construction. A MnDOT Truck Storage Station addition is under construction on Highway 212. Case asked if the City has an approval process as MnDOT already owned the land. Klima stated MnDOT shared plans with the City for feedback, but there was no formal approval process. Lindahl stated the Crew Carwash building permit has been approved. The Mr. Carwash permit is currently under review. Freiberg asked what the old Mr. Carwash site will be turned into. Lindahl stated the site would likely be a teardown. Lindahl explained the office market has struggled post COVID. Prairie Commons Office Center, a 450 thousand square foot building at 13625 Technology Drive, is currently listed for lease. The property has many advantages including proximity to the light rail, bus station, restaurants, and other amenities. There is a 155 thousand square foot office building at the intersection of Technology Drive and Prairie Center Drive that is currently vacant. Optum leased the property but never occupied it. Case stated it has a parking deck and would be a good location for an apartment with commercial on the main floor. Lindahl stated CH Robinson is vacating the 150 thousand square foot Eden Bluff Corporate Center on Charlson Road. Nelson asked where the City Council Workshop Minutes April 2, 2024 Page 4 company is moving. Lindahl confirmed employees are relocating to other properties or working from home. Case stated the building oversees a lake and would be a good spot for a restaurant. Lindahl stated Endeavor Development is proposing to redevelop the vacant American Family Insurance campus into Nexus Innovation Center, an Industrial Flex property. Lindahl explained the UNFI/SuperValu campus west parcel may be acquired by CSM. Their concept plan includes a five story 150 room Marriott Residence Inn and a freestanding commercial building. An additional apartment building may be considered if topographical challenges can be overcome. Nelson asked if there are any anticipated traffic issues. Lindahl stated traffic will be vetted by staff during the development proposal process. Lindahl stated the UNFI/SuperValu campus east parcel, including a 165 thousand square foot building, is being acquired by the EPSD for the Tassel Program and the Alternative High School. Planning Commission approved the project on March 25 and the City Council will vote April 16. Case asked if the EPSD’s purchase of the parcel is complete. Getschow stated the purchase is contingent on City approval. Case asked Getschow to explain the negotiated payment agreement. Getschow stated the parcel would be tax exempt if occupied by the school district. The City negotiated to receive ten years of City tax as part of the sale. Toomey asked if the payment would be made up front or in annual increments. Getschow answered the payment would be made up front. Narayanan asked how the payment is accounted for. Getschow confirmed the payment would be general fund revenue, identical to other property tax payments. Nelson noted while tax exempt, schools and churches are valuable to the community. Getschow stated a hotel, restaurant, and potential apartment added to the west parcel would increase the tax base. Case stated the Council is fortunate for the City’s success. The City’s tax base is strong and has an extremely low tax levy. Once complete, the light rail will bring employees and patrons to the mall. Narayanan asked what route Southwest Transit’s autonomous vehicle will be. Lindahl answered staff had made recommendations based on density of potential riders. The mall would likely be a hub. Narayanan commented the City should keep future development in mind when considering the route, and asked if the autonomous vehicles have any negatives. Klima and Lindahl answered there are no perceived negatives. Lindahl further expressed the autonomous vehicle company completed a pilot in Grand Rapids that was successful. Narayanan asked if the City contributes money. Lindahl confirmed the City is not expected to. Getschow gave a summary of the Missing Middle bill. Most authors discarded legislation removing local zoning authority. One bill remains which would allow multifamily residential development in commercially zoned areas. Additionally, cities may be required to allow accessory dwelling units on single family lots. It is possible elements of the Missing Middle bill could return in the future. Toomey asked why this bill was put forward. Case explained supporters include pro-affordable housing groups and developers. Getschow added if the housing market is flooded with supply, in theory costs would eventually be forced down. However, this City Council Workshop Minutes April 2, 2024 Page 5 bill would work the exact opposite by increasing land value. Apart from multifamily buildings with TIF, very little new construction that is affordable due to cost of land. Open Podium - Council Chamber (6:30) II. OPEN PODIUM III. ADJOURNMENT