HomeMy WebLinkAboutCity Council - 04/22/2014 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY,APRIL 22, 2014 CITY CENTER
5:00—6:25 PM, HERITAGE ROOMS
6:30—7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher
Wickstrom, Kathy Nelson, and Ron Case
CITY STAFF: City Manager Rick Getschow, Police Chief Rob Reynolds, Fire Chief George
Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah,
Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City
Attorney Ric Rosow, and Recorder Lorene McWaters
Workshop - Heritage Room H
Council Member Nelson was absent.
I. SW TRANSIT UPDATE
Len Simich, CEO of SW Transit, and Dave Jacobson, COO, provided updates to the City
Council. Simich outlined the Memo of Understanding SW Transit and the Met Council have
approved regarding the joint operation of proposed SW LRT and Southwest Transit in Eden
Prairie. Simich said the MOU is not a binding agreement, but rather a guiding document for
continuing discussions. He said they have come to agreement on operating both bus and rail
operations seamlessly at the Southwest Station site. The current plan calls for replacement of
the existing station at the expense of the SW LRT project. The agreement also identifies
Southwest Transit as the local service provider for Eden Prairie, and states that services
provided by Southwest Transit and LRT do not duplicate each other. Parking needed to
accommodate LRT operations will be accounted for separately from Southwest Transit,
which currently utilizes all available parking on the site. Simich said the Southwest Transit
Commission is comfortable with the size of proposed new parking ramps. He said cost
sharing details are yet to be worked out,but he is confident that mutually agreeable terms can
be negotiated.
Jacobson reviewed some of Southwest Transit's 2013 highlights, including a 3.4%increase
in ridership, opening of a new ramp and station in Chaska, and institution of an energy
savings program that is projected to result in more than $1 million in future savings.
II. HOTEL STUDY
Economic Development Manager David Lindahl noted that the City and the Chamber of
Commerce have long discussed the fact that Eden Prairie does not have a full-service hotel
that can accommodate conferences, large meetings and banquet-type events. The City of
Eden Prairie retained HVS Consulting and Valuation to conduct a hotel market study. Tanya
Pierson, managing director of HVS presented the results of the market study.
Pierson noted that Eden Prairie currently has three select-service hotels and eight limited-
service hotels. She said four potential hotel sites were evaluated:
City Council Workshop Minutes
April 8, 2014
Page 2
• Eden Prairie Center Mall Area
• Near Optum Campus
• Near SuperValu Campus
• Near Shop NBC
She also conducted interviews with demand generators (large Eden Prairie companies) to
determine their hotel needs and requirements. Some highlights of those interviews include
the following:
• Hotel usage ranged from 10 rooms to 400 rooms per month
• Most utilize Eden Prairie hotels, some also use Crowne Plaza, Hilton, Sheraton, Marriott,
and Radisson Blu
• Rates range from$60 - $140, with most averaging around $85-90
• All stated Eden Prairie was their preference for a hotel location
• Desired amenities: shuttle, free internet, breakfast, pool/exercise room, dining options,
meeting space
• Mixed feelings about need for hotel— some want meeting space/dining options, some are
satisfied with current inventory
HVS also interviewed competitive hotels, analyzed growth projections, and evaluated
performance of the market and strengths of various types of hotels,particularly select-service
hotels and full-service hotels. Select service hotels are a hybrid of full and limited service
hotels, with some food service and banquet facilities,but on a smaller scale than full-service
hotels. Full service hotels typically offer a variety of food and beverage services, have large
meeting spaces, and can accommodate large group events.
Pierson said their research indicates Eden Prairie could accommodate another select service
hotel,but is unlikely to be able to support a full-service hotel. Based on discussions with
brand representatives, it appears the following brands are available for development in Eden
Prairie:
• Aloft
• Wyndham Garden Inn
• Radisson Red
• Four Points by Sheraton
• Hotel Indigo
• Ramada
• Cambria Suites
Council Member Butcher Wickstrom asked if a facility with meeting space only could work
if there are enough hotels nearby. Pierson said market research indicates that the
hotel/meeting space combination is most economically feasible. Council Member Case said
if the market will not support a full service hotel, he does not feel the City should try to force
it. Lindahl pointed out that some select service hotels include meeting space. He asked
Pierson what the City can do to support those brands. Pierson recommended reaching out
directly to those brands and letting local brokers know of the City's interest. Lindahl
mentioned that a couple of developers have shown interest in the former Frank's Nursery
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April 8, 2014
Page 3
site. He said the City needs to have a discussion around what they might be willing to do to
encourage these types of developers. Jeremiah said the City could consider incentives based
on inclusion of more meeting space. Butcher Wickstrom said she does not want to see the
City build something that will not serve a real need. Jeremiah said she is hearing that more
meeting space would be desirable, and Council likes the idea of a select service hotel that
would send guests out to support local restaurants. Lindahl said he will continue discussions
with developers that are already seeking out sites in Eden Prairie.
Open Podium - Council Chamber
II. OPEN PODIUM
A. Dan Kitrell—Aquatic Center
Kitrell said he had several points he would like to make regarding the proposed
aquatic center. First,he said Council should be aware that not all of those in favor
of holding a referendum are against the pool, they just feel residents should have
the opportunity to vote on the project. He said there is a credibility gap created by
the City from 2005 when it proposed to simply deepen the pool to the $20 million
project being proposed today. He said there are two potential areas of conflict of
interest in that several council members are community center members, and that
the City Council members are also members of the HRA. He said if you view the
original community center expansion and the proposed aquatic center expansion
as one project, it is the largest government project ever undertaken by the City.
III. ADJOURNMENT