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City Council - 06/05/2001 APPROVED MINUTES EDEN PRAIRIE, CITY COUNCIL TUESDAY,JUNE 5,2001 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Jean Harris, Councilmembers Sherry Butcher, Ron Case, Jan Mosman, and Nancy Tyra-Lukens CITY STAFF: City Manager Chris Enger, Parks & Recreation Services Director Bob Lambert, Public Works Services Director Eugene Dietz, Community Development and Financial Services Director Don Uram, Management Services Director Natalie Swaggert, City Planner Michael Franzen, City Attorney Ric Rosow and Council Recorder Peggy Rasmussen I. ROLL CALL/CALL THE MEETING TO ORDER Mayor Hams called the meeting to order at 7:07 p.m. H. PLEDGE OF ALLEGIANCE M. COUNCIL FORUM INVITATION Mayor Harris said Council Forum is held the first and third Tuesdays of the month from 6:30 — 6:55 p.m. in Heritage Room II. This will be scheduled time following City Council Workshops and immediately preceding regular City Council Meetings. It is important if you wish to visit with the City Council and Service Area Directors at this time that you notify the City Manager's office by noon of the meeting date with your request. IV. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Rosow added a third section to the Motion, under Item X.A. Fl idg Cloud Airport Expansion,to approve special legal counsel retaining a communications consultant. MOTION: Tyra-Lukens moved, seconded by Case, to approve the agenda as published and amended. Motion carried 5-0. V. MINUTES A. SPECIAL SECTOR MEETING HELD TUESDAY,APRIL 24,2001 MOTION: Mosman moved, seconded by Butcher, to approve the minutes of the Special Sector Meeting held Tuesday, April 24, 2001, as published. Motion carried 5-0. B. CITY COUNCIL MEETING HELD TUESDAY,MAY 15,2001 Case made a correction on page 5, paragraph 8, the last sentence, which should read "He believed a partnership between the City and General Growth was important." Tyra-Lukens made a correction on page 12, paragraph 1, the end of CITY COUNCIL UTES June 5,2001 Page 2 the first sentence,which should read". . .when they come out to treat property." Rosow made a correction on page 16, the paragraph under item 2, the first sentence, which should read " Rosow said the Mayor, Mr. Enger and he had a telephone conference call with the Chair. . ." MOTION: Butcher moved, seconded by Tyra-Lukens,to approve the minutes of the City Council Meeting held Tuesday, May 15, 2001, as published and amended. Motion carried 5-0. C. SPECIAL CITY COUNCIL MEETING ON FLYING CLOUD AIRPORT HELD TUESDAY,MAY 22,2001 MOTION: Case moved, seconded by Butcher, to approve the minutes of the Special City Council Meeting on Flying Cloud Airport held Tuesday, May 22, 2001, as published. Motion carried 5-0. VI. CONSENT CALENDAR A. CLERK'S LICENSE LIST B. INTERNATIONAL SCHOOL AUDITORIUM by International School. 2nd Reading for, Planned Unit Development District Review on 38.4 acres, Zoning District Amendment within the Public Zoning District on 38.4 acres and Site Plan Review on 38.4 acres. Location: Beach Road. (Ordinance No. 17-2001-PUD-12- 2001 for PUD District Review and Zoning Amendment, Resolution No. 2001- 89 for Site Plan Review) C. ADOPT RESOLUTION NO. 2001-90 APPROVING FINAL PLAT OF BLUFF COUNTRY TOWNHOMES THIRD ADDITION D. ADOPT RESOLUTION NO. 2001-91 APPRROVING FINAL PLAT OF BLUFF COUNTRY TOWNHOMES 4 ADDITION E. ADOPT RESOLUTION NO. 2001-92 APPROVING FINAL PLAT OF BRAXTON WOODS 2 ADDITION F. APPROVE PROFESSIONAL SERVICES AGREEMENT FROM WESTWOOD PROFESSIONAL SERVICES FOR DESIGN AND INSTALLATION OF EMERGENCY VEHICLE PRE-EMPTION (EVP) EOUIPMENT ON 14 INTERSECTIONS,I.C. 01-5541 G. ADOPT RESOLUTION NO. 2001-93 REVISING THE TAX INCREMENT FINANCING PLAN FOR THE ROLLING HILLS SENIOR PROJECT (TIF DISTRICT #17) H. ADOPT RESOLUTION NO. 2001-94 APPROVING THE PROJECT MANAGEMENT AGREEMENT FOR ROLLING HILLS SENIOR HOUSING DEVELOPMENT CITY COUNCIL MINUTES June 5,2001 Page 3 I. ADOPT RESOLUTION NO. 2001-95 RELATING TO MULTIFAMILY HOUSING AND HEALTHCARE FACILITY REVENUE BONDS; SERIES 2001A AND TAXABLE SERIES 200113; AND MULTIFAMILY HOUSING AND HEALTHCARE FACILITY REVENUE BONDS (ROLLING HILLS PROJECT), SUBORDINATE SERIES 2001C, SERIES 2001D AND SERIES 2001E; AUTHORIZING THE SALE AND ISSUANCE OF THE BONDS AND ESTABLISHING THE SECURITY J. ADOPT RESOLUTION NO. 2001-96 APPROVING THE ACCEPTANCE OF THE RESOLUTION APPROVING TRANSFER OF CONTROL OF KBL CABLESYSTEMS TO AOL TIME WARNER K. APPROVE MEMORANDUM OF UNDERSTANDING WITH MNDOT FOR TRAFFIC, TRAIL AND WATERMAIN IMPROVEMENTS AT THE INTERSECTION OF TH212/VALLEY VIEW ROADBRYANT LAKE DRIVE L. APPROVE FUNDS OF $713 FOR SOUTHWEST METRO SHUTTLE BUS SERVICE FROM MILLER PARK TO ROUND LAKE PARK FOR THE 4 OF JULY CELEBRATION M. DECLARE COMPUTER AND ELECTRONIC EQUIPMENT AS SURPLUS AND AUTHORIZE THE CITY MANAGER TO DISPOSE OF PROPERTY THROUGH PUBLIC SALE MOTION: Tyra-Lukens moved, seconded by Mosman, to approve Items A-M on the Consent Calendar. Motion carried 5-0. VII. PUBLIC HEARINGS/MEETINGS A. PROPOSED REFUNDING OF PARK AT CITY WEST APARTMENTS HOUSING REVENUE BONDS (Resolution) Enger reported that he received a letter from Dougherty & Company, L.L.C., requesting continuance of the public hearing for two weeks to the June 19, 2001, City Council meeting. MOTION: Tyra-Lukens moved, seconded by Case, to approve continuance of the public hearing on the proposed refunding of Park at City West Apartments Housing Revenue Bonds, to the June 19, 2001, City Council meeting. Motion carried 5-0. B. VALLEY VIEW CORPORATE CENTER by CSM Equities, L.L.C. Request for Comprehensive Guide Plan Change from Medium Density Residential to Office on 2.39 acres and from Regional Commercial to Office on 4.79 acres, Planned Unit Development Concept Review on 7.18 acres, Planned Unit Development District Review with waivers on 7.18 acres, Zoning District Change from Rural to I-2 on 7.18 acres, Site Plan Review on 7.18 acres, and Preliminary CITY COUNCIL NIINUTES June 5,2001 Page 4 Plat on 7.18 acres into 1 lot and road right of way. Location: Northwest Quadrant of Valley View Road and Topview Road. (Resolution for Guide Plan Change, Resolution for PUD Concept Review, Ordinance for PUD District Review and Zoning Change, and Resolution for Preliminary Plat) Enger said the City received letters from both the applicant and the property owner requesting withdrawal of the Valley View Corporate Center project. MOTION: Case moved, seconded by Mosman, to close the public hearing and return the development plans to the applicant without prejudice. Motion carried 5-0. C. HARTFORD COMMONS by David Bernard Builders and Developers. Request for Guide Plan Change from Regional Commercial to High Density Residential on 17.88 acres, Planned Unit Development Concept Amendment on 17.88 acres, Planned Unit Development District Review with waivers on 17.88 acres, Zoning District Change from C-Reg-Ser to RM-6.5 Zoning District on 17.88 acres, Site Plan Review on 17.88 acres, and Preliminary Plat of 17.88 acres into 40 lots and 4 outlots. Location: Southeast corner of Prairie Center Drive and Prairie Lakes Drive extending to Rolling Hills Road. (Resolution No. 2001-97 for Guide Plan Change, Resolution No. 2001-98 for PUD Concept Amendment, Ordinance for PUD District Review and Zoning Change, and Resolution No.2001-99 for Preliminary Plat) Enger said official notice of this public hearing was published in the May 24, 2001,Eden Prairie News and was sent to 365 property owners. Richard Palmiter,representing David Bernard Builders and Developers, a division of Rottlund, presented a new plan for this site, as an alternative to the approved plan. He and the architect have met with the neighbors many times and have adapted the new plan to the neighborhood. Palmiter reviewed some of the changes that have been made. He believed it to be a better plan and hoped the Council could support it. They have reviewed the conditions made by Staff and concurred with them. There are just two items to be worked out regarding boulevard trees and the materials they want to use. Their engineers have been working with the City's engineers and the Watershed District regarding utilities, ponding and wetlands. There are no outstanding engineering or site plan issues. Tim Whitten said he believed there are compelling reasons to change the land use guideline for this site. There is a natural transition from adjacent housing to the proposed housing in the Hartford Commons. The housing development would generate less traffic than a commercial development. It has more open and green space than would be found in a commercial development. It would place housing adjacent to regional mall. Hartford Commons would include 319 multiple-family townhomes with a gross density of 17.84 units per acre. There would be four different building types: urban townhouses (114 units), urban flat townhouses (64 units), urban row CITY COUNCIL MEWTES June 5,2001 Page 5 townhouses (131 units), and live/work townhomes (10 units). They have taken elements of new urbanism and incorporated into the project. The four building types are mixed in each quadrant, so not all of one type are together. Parking for the owners is either underground or in the rear on private drives, with two spaces for each unit. There would be parking for guests on the streets in front of basically every unit in the development. There is a garden area where people can plant their own flowerbeds, a central park area with a gazebo, and a play structure for children. Franzen said the developer presented five land-use options to the Planning Board. At the May 14, 2001 meeting, the Planning Board voted 6-1-1 to recommend denial of the request to the City Council for the following reasons: The project is inconsistent with the Comprehensive Guide Plan; it is inconsistent with the approved 1994 PUD plan and Developer Agreement; and it does not meet City code requirements for front yard setback, gross site area per unit and density per acre. Half of the Board was considering a commercial use of the site and half was considering residential. The Board had asked the developer to present more details about the project, but the developer wasn't at the point where he could present some of the details he presented to the Council this evening. What they have shown to the Council is consistent with the intent of the 15 conditions listed in the Staff Report, one of which is to enhance the appearance of the project in exchange for densities and setback waivers. Also a design framework was needed with a base on the front of brick and siding and shade colors in a neutral pallet. Tyra-Lukens asked if the streets in the development are private or public. Franzen replied all the interior streets are private. Tyra-Lukens asked what was the rationale for removing the bump-outs on the private streets adjacent to the public streets. Franzen replied it had to do with how traffic drives on the private streets and the sight distances at the intersections with public roads. It also has to do with difficulty in plowing snow at those intersections. However, the interior private streets can have bump-outs. Tyra-Lukens noted one of the 15 items was to change the wood steps on the units to concrete. She believed wood steps would be more attractive. Franzen said concrete was his preference, after seeing other projects using wood and concrete,but he would not object wood. Mosman asked if that was a maintenance issue. Franzen replied that is one of the reasons for his preference,but he was primarily looking at the aesthetics. Butcher asked about parking on the public streets around the project. Franzen said Prairie Lakes Drive and Rolling Hills Road are 40 feet wide. Parking on one side will reduce that to 35 feet but will still allow access for fire and other emergency vehicles. Parking on the public streets would be something that would not be on a permanent basis. In other cities it hasn't been a problem with movement of traffic or for emergency vehicles. Dietz said at one time the City discussed whether to have little islands sticking out into Prairie Lakes Drive and Rolling Hills Road. They moved parking back from Prairie Center Drive passed the intersection. It was built for commercial uses, but it can be used for parking now. There would have been higher volumes of traffic with commercial use of the property. CITY COUNCIL MINUTES June 5,2001 Page 6 Mayor Harris asked if anyone wished to address the Council with regard to this project. Terry Pearson, 10827 Leaping Deer Lane, said she is a resident of the Weston Woods Townhomes Association. She was assisted in her presentation by Ray Mohr, 10825 Leaping Deer Lane, the association president, and Sharon Mackenthun, 11012 Lexington Drive, president of the Hartford Place Two Level Townhomes Association. Together they represented four neighborhoods: Weston Woods Townhomes, Hartford Place One- and Two-level homes, and Sanctuary. There are 240 homes in the area that would be impacted by any development on this property. The Weston Woods Townhomes Association informed the other neighbors about the unique plan developed by David Bernard Builders and Developers, which reflected the concept of"new urbanism." Pearson and others secured 230 signatures on a petition favoring this new plan. She said the proposed development transitions well into the neighborhood and it ties into a number of the City's Strategic Initiatives and the Guide Plan. Ray Mohr, 10825 Leaping Deer Lane, said he heard the Planning Board's concerns about this proposal. One was the density of the proposal. Mohr said it is consistent with the new urbanism, and high-density housing is needed to meet the needs of Eden Prairie. It makes sense to have it in the center of the City near the mall. It is also located close to the Southwest Metro Transit station. Another concern expressed by the Planning Board was regarding parking at the development. The developers have now shown that more parking will be available than required by City code. The streets are of adequate width for parking. The neighborhood expects and supports parking on Rolling Hills Drive and Prairie Lakes Drive. One concern was parking at the intersections with the public roads. That would require one or two parking spaces be removed to prevent accidents caused by blocking the view at intersections. Mohr stated affordable housing is not included in this revised plan. However, affordable housing is already contained within this PUD. The soon-to-be developed Rolling Hills senior housing will contribute a significant number of affordable homes in this area. Regarding the approved 1994 plan, Mohr said it is not as attractive a proposal as the one for a residential development. There would be an abrupt transition between the neighborhood homes and the retail development and it has no neighborhood support. He named other developments completed by David Bernard Builders and said the City should welcome the opportunity to have them developing a project like this. Laura Bluml, 10540 West Riverview Drive, said the most important issue is whether to allow a change from the approved retail plan for the site. That plan was carefully crafted and she believed it would be approved if presented again. Through creation of a TIF district, the City has directed $10 million toward Eden Prairie Center's redevelopment. She said now is a good time to have the support of other retail development, which has lagged behind. This site was created in CITY COUNCIL AIE'4 ES June 5,2001 Page 7 1973 to meet the needs of all the residents of Eden Prairie, not just the neighbors nearby. She contacted all residents south of County Road 1 and west of Homeward Hills Road, who have lived there from three days to over 20 years. It was clear from her interviews with residents that they agree regional retail is a high priority and they would like to shop where they live. Only one out of 243 residents rejected the original plan for retail. Bluml believed this would also reflect the City as a whole. Many said they were disappointed that Costco was rejected for that site. The City turned it down because it was a substantial change from the original approved plan for the site. She believed the proposed plan should be rejected for the same reason. Bluml said this development would be more affordable to more people on less expensive land. While residential property may provide more tax dollars, it uses significantly more City services. If housing density could be increased for this proposed development, she wondered why the density for commercial use could not have been increased, which would increase the amount of tax revenue. However, she didn't believe tax revenue should be the main reason for determining the use of this site. She said the property value of the neighborhood homes is lower because of the prospect of having a retail development there. A balance is needed. Homes,business and retail equals smart growth. Ramesh Ajitaprasad, 12725 Stoney Way said he is in favor of not changing the original plan. He would feel let down by the City if it were changed. By not having the choice of more shopping in Eden Prairie, he would have to continue to go to Bloomington to shop. Multi-family housing would increase the amount of traffic during rush hours. The people who signed Pearson's petition have a vested interest,whereas those who signed Bluml's petition have a concern for the City as a whole. Don Klingel, 10940 Kiawah Drive in Weston Woods, said since 1994 the neighborhood has been opposed to all the proposals. Now they support this new proposal. It would be a unique and important development. He agreed with Laura Bluml that a balance is needed. There are expected to be many new stores coming to the Eden Prairie Center. He favored using the mall to its maximum capacity, and the townhome development would support the mall. The traffic study done for the Golden Triangle Area(GTA)recognized the problem of traffic congestion, and it suggested having multi-family housing in the GTA. He talked to the general manager of the Eden Prairie Center and asked if he preferred the approved 1994 plan or the proposed new plan for Hartford Commons. He stated that it would not make a difference to him. If there was any concern about potential business being taken away, he would have said so. Khngel recalled that Councilmember Tyra-Lukens recommended having this type of housing near the Eden Prairie Center and Southwest Metro Transit. Kathy Wagle 10705 Leaping Deer Lane, said land use has changed over the years. She reminded the Council that the area around the Eden Prairie Center was supposed to be the center of the City. Progress causes change and change causes progress. She was in favor of the proposed urban housing development. CITY COUNCIL Al NUTES June 5,2001 Page 8 MOTION: Butcher moved, seconded by Case,to close the public hearing. Motion carried 5-0. MOTION: Tyra-Lukens moved, seconded by Case, to adopt Resolution No. 2001-97 for approval of the Comprehensive Guide Plan Amendment from Regional Commercial to High Density Residential on 17.88 acres; and adopt Resolution No. 2001-98 for approval of the Planned Unit Development Concept Review on 17.88 acres; and approve 1" Reading of the Ordinance for Planned Unit Development District Review with waivers on 17.88 acres and Zoning District Change from C-Reg-Ser to RM-6.5 Zoning District on 17.88 acres; and adopt Resolution No. 2001-99 for approval of the Preliminary Plat of 17.88 acres into 40 lots and 3 outlots; and direct Staff to prepare a Developer's Agreement incorporating Board and Staff recommendations, and Council conditions; and direct Staff to issue a land alteration permit to the Developer to proceed with construction at their own risk. Discussion followed. Mayor Harris said this project has many attractive features. It is good to have neighbors so strongly in favor of this plan. A number of concerns identified by the staff were addressed by the developer, but not all of them. She wanted to ensure that items requiring additional attention in terms of the detail are worked out, and so for that reason she could only accept this plan if it included the staff recommendations. She wondered if it should be sent back to staff and the developer to work through any that were not addressed. Case said he would be able to vote on the proposal that evening, with some conditions. People with opposing views have made their presentations after spending much time researching information. However, the Council doesn't just consider signatures on petitions, but really considers the big picture, and what is best for the whole City,which includes these people also. Case liked the concept of this plan, but pointed out there are still two issues outstanding between staff and the proponent. One is the boulevard trees. The Council has clearly made a commitment to try urban concepts around the market center area, so it needs to consider specific cases where bending the City code is appropriate. He would like to try boulevard trees on this particular project and would like to see them between the sidewalk and the street. He was not concerned with the setback issue of 15 feet instead of 30 feet, because it has an urban look. The second unresolved issue is the material to be used. He was in favor of permitting the use of rock-faced block. If it is a question of the City requiring brick at $14 per square foot versus $4 a square foot for rock-faced block, the builders will do more with rock-faced block if the City allows them to use it; otherwise they will use the minimum one-third brick required. Mayor Harris said the issue of boulevard trees was more about location, with regard to sight distances at the intersections. Case agreed they should be moved back from the street at the intersections. Mayor Harris added that staff recommended putting the trees behind the sidewalk. CITY COUNCIL MINUTES June 5,2001 Page 9 Butcher addressed policy. The property under discussion is a wonderful piece of land, but it has been problematical. Listening to the speakers for the different neighborhoods, she felt one neighbor was pitted against the other. She didn't like to see that, and wanted to do the best possible thing for the City. The Council has to look at the big picture. It has to look at sustainability; how it fits in the present and how it will fit in the future. The Council does this with the help of City staff and the Planning Board, as well as residents. This Council never changes a PUD without great consideration and without compelling reasons. Occasionally opportunities are presented that merit changes to the Guide Plan and PUD changes. She believed this proposal was a better one for the neighborhood. The density is appropriate and the architecture supports the density. Her approval would be based on accepting the staff recommendations. While she was prepared to vote to approve this project, on a policy level she wished to state a caution that the City's procedure and process be maintained. Any future developer that comes before the City with a proposal must follow its tried and true process. Tyra-Lukens said she believed this location is the best place to do this project. It is a traditional plan that people like. It was clear from the presentation the proponent made previously that mixed-use housing wasn't going to work here. However, the proponent worked with the staff to develop a project that is very nice. The trade-off was for higher standards of design, and this proposal is a good example of how that will work. She would like to see median trees, and she didn't have a problem with using rock-faced block and cultured stone. Mosman said there are going to be 80 additional stores at the mall, so there will be more retail in the area. She approved of the idea of trees in the median and rock-faced block. Mayor Harris said the consensus was that this is a project the Council would like to have in the City, with more flexibility in terms of using certain materials. All staff recommendations should be included in the final Developer's Agreement. Case said he assumed that there was now agreement on everything in the list of staff recommendations except rock-faced block and boulevard trees. If that was not correct, the Council needed to know. Whitten replied they are in agreement with everything except those two issues. He said the company was not in a good position for a continuance. It was critical to them to come back to the next Council meeting in two weeks with those two items worked out. Case said he didn't hear anything that was worthy of a continuance. The issues are boulevard trees,rock-faced block and stone, and wooden steps versus concrete. There is the issue of sight distance if trees are planted at the intersection of public streets, and he could accept them being planted near the sidewalks. It would be critical for the developer to put in writing a commitment for upkeep of the boulevard so that it would not be a City responsibility. The proof will be in the plan and the supporting documents that would be brought back to the next Council meeting for the 2d Reading. CITY COUNCIL MINUTES June 5,2001 Page 10 Motion, with Council conditions to allow the use of rock-faced block on buildings and the planting of trees in the boulevard, carried 5-0. Mayor Harris recessed the meeting at 9:30 p.m., and called the meeting back to order at 9:46 p.m. D. THE HERITAGE by Carlston, Inc. Request for Guide Plan Change from Low Density Residential to Medium Density Residential on 23.05 acres, Planned Unit Development Concept Review on 42.16 acres,Planned Unit Development District Review with waivers on 42.16 acres, Zoning District Change from Rural to R1- 13.5 Zoning District on 19.11 acres and from Rural to RM-6.5 Zoning District on 23.05 acres, Site Plan Review on 23.05 acres, and Preliminary Plat of 42.16 acres into 138 lots, 4 outlots, and right-of-way. Location: Dell Road and Pioneer Trail. (Resolution No. 2001-100 for Guide Plan Change, Resolution No. 2001-101 for PUD Concept Review, Ordinance for PUD District Review and Zoning Change, and Resolution No.2001-102 for Preliminary Plat) Enger said official notice of this public hearing was published in the May 24, 2001,Eden Prairie News and was sent to 124 property owners. Scott Carlston said this project is for 33 single-family homes, 53 one-story townhomes, 50 two-story townhomes, 4 outlots, and City right-of-way. There was one concern identified by the Planning Board, and that was density of the two-story townhomes. He has reduced the number to 50 units. The NURP pond has been relocated off Pioneer Trail. A big concern of the Cedar Forest residents was what would be built next to their properties. He purchased 19 acres for 33 single-family homes that will be priced at $400,00-$700,000, with a density of 1.7 units per acre. He has met with 22 Cedar Forest residents, and together they have reached a consensus that works well for everybody. One of their ideas was to retain the buffer area between the development and their properties so wildlife can continue to live there, and it will provide screening from the townhomes. He will make sure they save as many trees as possible. The trail systems will continue through to Valley Road. He worked with the City Environmental Coordinator, Leslie Stovring, on the wetland areas. A wetland area will be incorporated into the plan, and he will design the homes around it. With regard to a Guide Plan change,he believed it is more a continuation of the process along Pioneer Trail and fits with what is in the neighborhood. Franzen said at the conclusion of the first meeting with the Community Planning Board, the members believed the Guide Plan change could be supported, but only after the issue of the number of multi-family units was addressed. The developer presented revised plans. Based upon the plan revision, the Community Planning Board voted 8-0 to recommend project approval. CITY COUNCIL MINUTES June 5,2001 Page 11 Rick Beedle, 17135 Valley Road, said he didn't want the area behind his house changed because he enjoys the scenery there. However,he and the neighbors feel very comfortable with Scott Carlston's proposal and hoped the City Council felt the same way. Patty Whalen, 17191 Cedarcrest Drive, said her house would be next to the single-home portion of the project. She has enjoyed living in a dead-end street, but can accept this development. She has seen other projects Scott Carlston has built and she supported this project. John Wiedman, 17249 Valley Road, said Scott Carlston is one of the most conscientious business people he knows. He earns his money in Eden Prairie, and is a developer who has set a new standard by keeping trees and protecting wildlife. MOTION: Butcher moved, seconded by Case, to close the public hearing; and adopt Resolution No. 2001-100 for Guide Plan Amendment from Low Density Residential to Medium Density Residential on 23.05 acres; and adopt Resolution No. 2001-101 for PUD Concept Review on 42.16 acres; and approve lst Reading of the Ordinance for PUD District Review and Zoning District Change from Rural to the RM-6.5 Zoning District on 23.05 acres and from Rural to the R1-13.5 Zoning District on 19.11 acres; and adopt Resolution No. 2001-102 for the Preliminary Plat of 42.16 acres into 138 lots, 4 outlots, and right-of-way; and direct Staff to prepare a Developer's Agreement incorporating Staff and Board recommendations; and direct Staff to issue a land-alteration permit to the Developer to proceed with construction at their own risk. Discussion followed. Case wanted assurance that Outlot A would be identified as a conservation easement by placing markers at every lot line, so people living in the area will be informed of that. Mayor Harris asked that the future extension of Valley View Road be appropriately signed. Mosman asked if the trail would be going through the site. Carlston replied there are several trails through the project. Mosman asked if Dell Road joins up with Highway 5. Carlston said it does. Motion carried 5-0. E. GRACE CHURCH — CODE AMENDMENT by Grace Church. Request for Amending City Code to allow for mining as a conditional use within the Public Zoning District. Location: Pioneer Trail and Eden Prairie Road. (Ordinance to Amend the City Code) Enger said official notice of this public hearing was published in the May 24, 2001 Eden Prairie News and was sent to 240 property owners. Bob Solfelt, 10508 Bluff Road, represented Grace Church in making this request to amend the City Code to allow exchange of some soil on the property for other CITY COUNCIL MINUTES June 5,2001 Page 12 soil. In December 2000 they began construction of the church and are on schedule to finish Phase 1 and occupy the church in August 2002. During excavation of the property, it was brought to their attention by the subcontractor that there was a large amount of granular soil on the site. This soil has value in the construction process, particularly under roadbeds, as well as for general construction. Loren Braun, a geotechnical engineer with Braun Intertec, said he provided engineering services for construction of the project. The proposal is to mine sand from the future parking lot area. This type of soil is very rare in this area and is valuable, especially for construction of roadways. The sand would be replaced with clay, which will be properly compacted and placed so there would be no adverse effect from removing the sand. Solfelt said they are not changing their original building plans, excavation plans or elevations. In February 2001 they approached City staff with the concept of exchanging soils. Staff said two City Codes would have to be changed and a conditional use permit would be required. Grace Church is in favor of the recommendations provided by staff to exchange soils. One of these is that the soils be exchanged for other projects in the City and not in any other cities. Another is prevention of soil erosion and dust control. Another item is safety concerns and truck traffic. The church agrees to all of these items of concern. Regarding construction of berms that would screen the church property from adjacent properties and roads, the berms are already in place between Spring Road and Eden Prairie Road. The church and the City should be able to agree to a noise-control plan. The mining operations would be carried out between 9 a.m. and 4 p.m. Monday through Friday only, and not on holidays. Grace Church agrees with the conditions for exchange of soils. One other issue was traffic. There would be additional traffic brought to the site; however, Grace Church believes the extra truck traffic would be limited. Trucks are already traveling along Pioneer Trail to the Highway 212 project and other projects. Solfelt said there is also the concept that somehow Grace Church would be profiting from the sale of this soil. There would be a benefit to the church,but no individual in the church would profit. The money will offset cost of the infrastructure work on the site. The City requested placement of a storm-water system to handle storm water runoff. The exchange of soil would be used to offset the cost of that project. Also, Grace Church is bearing the burden of a major renovation of Eden Prairie Road and realignment to the west. The church would be using some of the funds from the sale of the soil for that cost. Grace church believes exchanging these soils is a reasonable request and does not cause any safety concerns. Franzen said the Community Planning Board reviewed this item at its May 14, 2001 meeting and voted 7-1 to recommend denial of the proposed code amendment to the City Council based on findings 1-9 listed under the denial option section of the report. CITY COUNCIL MINUTES June 5,2001 Page 13 Fred Guille, 10060 Meade Lane,voiced his support of Grace Church's proposal to amend the City Code so it can exchange the soil. If this resource were never to be used, it would be too bad. He recommended the City Council approve the request. David Rasmussen, 16275 Valley Road, said he lives about 120 yards west of the Grace Church construction site. Eden Prairie has done a good job of protecting residents from industrial expansion, and he asked the City to stop any impact that this mining operation might present. He believed traffic and pollution would be the biggest problems. He understood one million cubic yards of material would be moved. That would mean 75,000 trips with a dump truck to take the soil out of the property, and the same number to bring replacement soil in. That is a huge amount of traffic. In addition, there would be airborne sand pollution. Directly east of this site are the Flying Cloud athletic fields, and the people who are there may breathe in airborne particles of sand that can cause lung disease. Rasmussen said the construction work on this site operates until 9:30 p.m., so his experience regarding that has been negative. With regard to berming to provide a sight barrier, from where he lives he can see what is going on there. The church said the money made from selling the soil would be used to offset the cost of infrastructure. The benefits they said would accrue to the community were elements of the community's requirements for the construction project. Mitzi Malevich, 17884 Bearpath Trail, said she is a member of Grace Church and a new Eden Prairie resident who moved there in anticipation of the move to this new church building. She asked that the Council see this request from the same aspect as.the church. Ed Sisam, 10109 Wild Duck Pass, said the ballfields just east of the church meant a lot to him because he has been a coach for some of the teams that play there. He was at the Planning Board meeting when the issues were raised. They focused mainly on one issue and that was a concern about future requests for mining. He commended the City Council and the staff for a well-written proposal that tries to balance the concerns of the City with the concerns of the landowner. The City requires that the sand deposit be used in this community. It also addresses traffic. There will be dust and traffic. But there is truck traffic on Pioneer Trail now, carrying dirt from various areas of the City. Another requirement is that mining be limited to a 50-acre parcel. Concerns have been addressed by drafting an amendment to the City Code. He asked the Council to look at the benefit the church can be for the community, and urged adoption of the request. Barbara Kaerwon, 12800 Gerard Drive, said she recalled an asphalt plant that was allowed to mine in the area. There was a pond next to it. Finally the asphalt plant was removed but the pond was destroyed because of the mining operation. If the Council had any intention of changing the ordinance, the City should study the topography and geology of the site first. CITY COUNCIL MINUTES June 5,2001 Page 14 Ken Clinton, 115 Victoria Drive, said there was a law enacted in 1998 that chartered a task force to look at road construction. The need for aggregate has increased by 50 percent and is used a great deal in the Twin Cities area. One of the task force's recommendations was to use the best management practices for removal of materials from the ground. He was certain Grace Church would follow best practices. Eden Prairie would be moving forward and would be ahead of the curve in construction projects. The task force recommended issuing permits at different levels for extraction of material. The first would limit the site to 10 acres and extract no more than 10 feet for one season. The second permit would be to not exceed 10 acres but the dirt could be removed for more than one season. Clinton recommended the Planning Board look at these methods of extraction. The City has tackled difficult issues in the past and has been in the forefront of good management. Eileen Benz, 9775 Spring Road, said she and her husband have a concern about what mining sand does to the ground water and how this would affect her well water. She wondered if it would contaminate the ground water. Braun addressed several concerns. Regarding ground water, the mining operation would not extend down to the ground water level so should not affect the ground water or wells in any way. There was a comment about 1 million cubic yards of soil being removed. To put that in perspective, if they had encountered poor soils on the site rather than the sand it is quite probable they would be moving 100,000 yards or more out and bringing back better soil to replace them. One million yards sounds like a lot, but in perspective to the amount of earth that's moved every day in the Twin Cities area, it is quite small. Mayor Harris asked how the sand is dug out and how long would it take to complete the work. Braun replied they are going to remove the sand in small strips, using a backhoe to remove it. They could probably complete the work in a month or two, depending on the weather. Regarding the dust issue, one of the features of dust is dissipates quickly, and if it is wet first before removal it would not cause a problem. Mayor Harris asked Dietz what demand is there in the City for the sand. Dietz replied the two road construction projects are on Pioneer Trail and Highway 212. Excavation work on Pioneer Trail begins next week. He didn't know how much sand they would need,he has heard from Mr. Solfelt's discussion with contractors that Highway 212 may need as much as 200,000 yards. Pioneer Trail would probably use about 160,000 yards. Gary Demay, 9425 Shetland Road, said the activity of moving dirt is going on anyway in the City. He suggested that, if the airport expansion project goes ahead, it might require a million yards of fill in the future. The land for that is very close to Grace Church. Rosow replied Grace Church has said they have a short window of opportunity for this sand to be removed, so any future construction project could not be used. CITY COUNCIL MINUTES June 5,2001 Page 15 Mike Pogh, who is Chair of the Board at Grace Church, said the Board is very appreciative of the working relationship they have with the City. The congregation fully recognizes that while they are building a facility for themselves, this will be an asset to the whole community. There will be many activities that will take place at the church that will be of interest to residents of Eden Prairie. The soil exchange is a very important issue to the church and is important from the City's standpoint. This is also a conservation issue. There can be a win/win solution. MOTION: Case moved, seconded by Butcher, to close the public hearing. Motion carried 5-0. Case said there is the potential for one million cubic yards to be moved. Even if the Pioneer Trail and Highway 212 road projects could use 360,000 cubic yards, where would the rest of the sand be used if there are no other places that need it? Solfelt replied the church is currently not aware of a need for one million cubic yards in the City. Contractors could contact the church for use of that soil for road construction or other construction sites within the City. Tyra-Lukens asked if the replacement soil would all come from within Eden Prairie. Solfelt said the church's proposal is to use the sand within the community but they are not proposing the return soils would come from within the City. However, the projects requiring granular soil would be able to provide an exchange of soil for the church property. Right now, the soil from the Highway 212 project is being taken south on Eden Prairie Road and east along Pioneer Trail and south on Spring Road out of City and bringing sand back. Mosman said she would be wise to do a geological survey of the property to be sure it doesn't affect the surrounding areas. She understood one of the conditions would be to use streets with a nine-ton load limit for those trucks hauling the soil on City streets to save the City the extra cost of maintenance. Dietz replied the plan would keep track traffic on roads with a nine-ton load limit. Butcher said she was concerned about the environmental and health impacts of moving this sand. She was sure Grace Church wants to be a good neighbor, but the area around the church property is a mature neighborhood, and she was concerned about air pollution,the dust and the noise. Solfelt replied, in general he would say health risks associated with the exchange of soil already exist. Trucks are already moving soils through the City from the highway project, so Eden Prairie has already assumed the risk of pollutants in the City. Regarding pollution on the site, they would have a back hoe on site that would be removing the sand and putting it into dump trucks. However, the dust can be controlled with water, and the streets can be cleaned off with street cleaners. Braun Intertec would be responsible for monitoring the project as well as the exchange of the soils. In addition, it is proposed to put a runway on the site, so dirt from the trucks would be knocked off on the site and not on the County or City roads. CITY COUNCIL AE NUTES June 5,2001 Page 16 Mayor Harris said she was concerned about unintended consequences of changing the City code, and asked Rosow if there were a way of doing this other than through a code amendment. She wondered if the Developer's Agreement could be reopened, with all the different constraints listed. Rosow replied that if the Council were in favor of amending the code in this way, then perhaps a better vehicle would be to allow staff and Grace Church to amend the Developer's Agreement and the grading plan. It came to the Council in this format because, in the discussions they had with Grace Church, it appeared this was not a desired outcome and there was not the will to change those agreements already in place, so the only other way to do it would be to amend the code. Rosow said there are other routes that could be use, but he could not assure the Council that none of them would subject them to challenges that they be allowed to do the same thing. For instance, Grace Church requested allowing mining only for non-profit organizations. However, staff determined there is no rationale why a non-profit should be able to do this and not others. Case asked about limiting mining operations to 50 acres. Rosow said a strong case could be made for that and staff recommended that condition. He was concerned about the concepts of interstate commerce and the constitutionality of saying this can only be used for soil deposited within the community. He would want a commitment from Grace Church that it would not challenge that restriction. If the Developer's Agreement is changed, other developers may want to do this in the future for their projects. Others may want to take advantage of this opportunity as well. Butcher said she would want restrictions about what hours the work can be carried out and also longevity of the project. One neighbor reported currently construction on the site begins at 7 a.m. and continues until 9:30 p.m. Braun said he didn't know how long the soil exchange would take, but to remove one million cubic yards from an acre of land 25-feet deep would take several months. The small area involved would limit the amount of truck traffic that could come in and out. Solfelt said the church's proposal is for a 24-month period, so the conditional use permit is for 24 months. They would excavate in two-acre increments, and they expect each increment to be refilled within 30 days. There are about 15 two-acre increments on the site. Butcher asked if this conditional use permit would allow the excavation any time during that 24-month period. Rosow said that is the way the draft ordinance is written. Case asked if it is correct that there would be a dump truck every two minutes for 18 months. Solfelt said there are two assumptions. One is that the church could excavate one million cubic yards if there is that requirement within the City. There are two practical limitations to that. They plan to occupy the church in August 2002 and they need a parking lot to do that. The most northerly and easterly portion of their property has to be covered with black top by August 2002. So the only other areas where soil could be removed, that would not be CITY COUNCIL MINUTES June 5,2001 Page 17 developed by that time, would be about 15 acres in the far southeast corner of the property. Tyra-Lukens asked to address the noise issue. This area of the City is impacted by airport noise, and to add trucks being filled and driving down the road would add to that noise. It would be during the summer months when people's windows would be open and they are outside. Solfelt replied the conditional use permit states the church must comply with the City code that defines noise on the site. Rosow said the decibel levels of noise are defined, and the types of restrictions imposed. Dietz said it would be possible to model the noise at the site, but it is better to restrict it through the City code which states the noise cannot leave the site. The City has a noise meter, and the noise at the site can be measured once the work begins. There will be a perception by the neighbors of increased background noise, but he didn't think it would be an obnoxious noise. The clay soil being brought back in would need to be compacted, so there would be some noise from that also. Case asked how the City would really know that each load coming from the site dumps its load somewhere in Eden Prairie. Dietz said he understood there could be as many as 300 trucks a day to get one million yards out within the time period. On an operation of this scale the City would know where most of the material goes. The City has a project next year on the extension of Town Line Road and will require some sand, perhaps 50,000 yards. There would be no material to take back. The logistics would be an issue, because sometimes the replacement material can't be put in until all the other material is taken out. Mayor Harris stated that recycling and conservation was an important value to her when she was growing up and it pains her to bury a non-replenishable resource. On the other hand, she was not comfortable changing the City code at this time and was worried about the increased noise pollution and the road wear. The Council needs to decide if it is willing to permit this activity, and if so, should the City code be changed or should they search for some other vehicle to use. If they decide to go forward, she would like to send this proposal back to the City's legal counsel for additional review. (Councilmember Case was called away from the meeting at 11:32 p.m.) Butcher said she would be comfortable doing that because she has questions about some of the health issues and the controls the City would be able to have. There is now activity on the site past regulation hours and she wanted to be sure there is language in the contract to ensure that the neighbors are being taken care of. She believed Grace Church wanted to do that too. Rosow said amendment to the code would permit them to renew the permit or ask for another amendment. He asked for clarification on whether or not the Council wants to change the code. If there is not a majority in favor of doing that,then he would not try to find another way to do it. The Council needs to vote on the lst Reading. If it didn't pass, it would not be brought back for a 2nd Reading, or an CITY COUNCIL MINUTES June 5,2001 Page 18 alternative motion would be to send to the staff and the City attorney to give the Council options for allowing the mining to take place. This assumes the Council is willing to permit the mining activity, subject to proper controls and conditions. MOTION: Mosman moved to direct staff to look at the options as Mr. Rosow laid out. Tyra-Lukens said she believed parameters should be set to see how the process works,perhaps shorter periods of time,both daily and monthly. Mosman suggested an initial trial time of no more than two months. Butcher agreed, and said she understood it would take that long to do the first strip. Solfelt said the church has hoped all along there was a way within the city code to exchange these soils. The church was asked to submit an application to change the code. It is willing to have the Developer's Agreement amended. They would be willing to work with Mr. Rosow and City staff to amend this. Perhaps there could be an initial test to have a number of digs that could be done over one season. He believed two months would be too restrictive and punitive to make it worthwhile. Another suggestion would be to recognize the parking lot area has to be paved prior to August 2002. Perhaps the limit of time could be until that time. Mosman said a six months' limit would allow the City to find out if the agreement is being followed;then it could be continued. Rosow suggested Council table action on the amendment to the code and then direct staff to come back to the Council at either its June 19 or July meeting with an alternative to consider. That would still allow the Council time to take action before the August 1 time limit for review of this proposal. Mosman withdrew her earlier motion. MOTION: Mosman moved, seconded by Mayor Harris, to deny the request of Grace Church to amend City code to permit mining as a conditional use in the public zoning district, and direct staff and legal counsel to explore alternative methods for handling the soil exchange. Rosow suggested a third alternative would be for the applicant to meet with staff to see if he would be willing to withdraw the request. Solfelt said they would be willing to withdraw the request if the second half of the motion would be to work with staff and counsel to come up with alternatives that would be suitable to the City for exchange of soils. Mosman withdrew her motion, as did Mayor Harris. MOTION: Butcher moved, seconded by Tyra-Lukens, to return the proposed code amendment to the proponent without prejudice. Motion carried 4-0. CITY COUNCIL AHNUTES June 5,2001 Page 19 Rosow said he understood Council's direction was for staff and Grace Church to meet and determine if there is any vehicle to accomplish this activity within the structure of the City code and the Developer's Agreement. Mayor Harris recessed the meeting at 11:48 p.m. and called the meeting back to order at 11:55 p.m. VIH. PAYMENT OF CLAIMS MOTION: Tyra-Lukens moved, seconded by Butcher, to approve Payment of Claims. Motion was approved on a roll call vote, with Butcher, Mosman, Tyra-Lukens and Harris voting"aye." IX. ORDINANCES AND RESOLUTIONS A. ADOPT RESOLUTION NO. 2001-103 RESCINDING THE FINAL PLAT APPROVAL OF AZTEC TOWN OFFICE PARK FOR 22 LOTS, APPROVED BY THE CITY COUNCIL ON MARCH 6,2001 Enger said this proposal, located east of Aztec Drive and south of Anderson Lakes Parkway is a replat of Outlot A in Anderson Lakes Commercial Center 3rd Addition. The plat was previously approved by the City Council March 6, 2001 consisting of 6.48 acres to be divided into 22 lots and one outlot for future development. The developer has revised the plat by taking sixteen of the original lots and combining them into eight larger lots,therefore reducing the total number of lots to fourteen. The City Council was asked to rescind the final plat approval. MOTION: Tyra-Lukens moved, seconded by Butcher, to adopt Resolution No. 2001-103 rescinding the final plat approval of Aztec Town Office Park for 22 lots, approved by the City Council on March 6,2001. Motion carried 4-0. B. ADOPT RESOLUTION NO. 2001-104 APPROVING THE REVISED FINAL PLAT OF AZTEC TOWN OFFICE FOR 14 LOTS AND ONE OUTLOT MOTION: Tyra-Lukens moved, seconded by Butcher, to adopt Resolution No. 2001-104 approving the revised final plat of Aztec Town Office for 14 lots and one outlot. Motion carried 4-0. C. STATUS OF FLYING CLOUD AIRPORT ADVISORY COMMISSION, IsT READING OF AN ORDINANCE AMENDING CITY CODE 2 Enger said it is appropriate for Council to direct City strategies. The staff has made some recommendations on a potential course of action. Rosow said there are three potential courses of action: (1) abolish the Flying Cloud Airport Advisory Commission, (2) suspend Commission activities indefinitely, or (3) allow the Commission to proceed but to amend its mission so CITY COUNCIL MINUTES June 5,2001 Page 20 that nothing pertaining to the expansion is affected. Based upon discussions with the Special Legal Counsel, they would be most comfortable with eliminating the Commission from the City code but would accept suspension of the activities. They are concerned about allowing the Commission to operate. Mayor Harris said abolishing and reconstitution makes the most sense. If the Commission is allowed to continue, the Council would have to redefine the role of the Commission. MOTION: Butcher moved, seconded by Tyra-Lukens, to approve the lst and 2na Readings of an Ordinance repealing City Code Section 2.27 and abolishing the Flying Cloud Advisory Commission. Enger pointed out that changing the code would require all five Councilmembers to be present, and unanimous approval. Only the lst Reading could be done at this time. Rosow said the 1st Reading just needs the approval of the majority, and the 2na Reading could be approved on June 19,when Council has its next meeting. Butcher withdrew her motion, as did Tyra-Lukens. MOTION: Butcher moved, seconded by Tyra-Lukens, to approve the 1st Reading of an Ordinance repealing City Code Section 2.27 and abolishing the Flying Cloud Advisory Commission. Motion carried 3-0-1, with Mosman abstaining. X. PETITIONS,REOUESTS AND COMMUNICATIONS A. FLYING CLOUD AIRPORT EXPANSION: SPECIAL LEGAL COUNSEL AND REGULATION OF LANDSIDE DEVELOPMENT OF AIRPORT PROPERTY Rosow said the initial engagement of special legal counsel was to present a report and that was presented at the May 22 meeting of the Council. It is appropriate at this time to continue retention of the special legal counsel, and authorize them to retain a communications consultant. Further, special legal counsel recommend there be an evaluation of current zoning of land use regulations regarding development of airport property, and recommend to the Community Planning Board proposals and recommendations for future development. MOTION: Tyra-Lukens moved, seconded by Butcher,to continue to retain Peter Kirsch and the law firm Akin, Gump, Strauss, Hauer & Feld, L.L.P., as special legal counsel to the City, with respect to the proposed expansion of the Flying Cloud Airport, with authority to retain such consultants as deemed necessary by special counsel in consultation with the City Attorney and City Manager, and as approved by the City Council, including but not limited to communications consultants; and direct staff to evaluate current zoning and land use regulations CITY COUNCIL MINUTES June 5,2001 Page 21 applicable to development at the Flying Cloud Airport and to develop and submit to the Community Planning Board, for its review and recommendation, proposals for additional regulation of such development, and specifically to approve special legal counsel retaining a communications consultant. Motion carried 4-0. B. MORR INNE WAY POND Enger reported the neighborhood group has asked to return and make their presentation at the next Council meeting. C. PURCHASE OFFERS FOR THE CITY-OWNED SINGLETREE LAND PROPERTY Uram said there are two development groups that have made offers for the property-North American Properties and Hartford Group. North American Properties Jay Scott, a partner with North American Properties, explained this is a privately held real estate company that has real estate offices around the country, and has its headquarters in Texas. The company can internally fund their projects and would be prepared to purchase the property very quickly. They are offering a purchase price of$2,600,000, with a $125,000 earnest money deposit. The sale would close within four months of signing a purchase agreement. Mike Pacillio presented the concept plan. The site is somewhat challenging, and they propose a mixed-use concept with restaurants, small office suites and luxury apartments. It would have a four-story parking structure located in the center of the building. The first floor of the garage would be for visitor parking and for restaurant patrons. The front of the building would be for leased offices and clubhouse facilities. The four-story apartment buildings would contain two casual dining restaurants at the corners of the property with outdoor plaza areas. Hartford Group Elizabeth Kautz said their proposal is for mixed-use — a commercial component and a residential component called Lincoln Parc West,with 20 percent affordable housing. It would be comparable to Lincoln Parc on the east side of this project. This will help the City to meet its livable community goals. They would work with staff to determine the most acceptable development type. There would be two levels of underground parking. The first level of the building would be office space and commercial use. There could be a restaurant on the first level. The exterior would be brick and stucco. They are offering a purchase price of $2,741,000,with a$10,000 earnest money deposit. The sale would close in six to nine months after the date of a purchase agreement. They will require TIF, CDBG, Housing Revenue Bonds, and a HUD-insured mortgage because of the affordable component. Butcher asked if the space on the first floor would accommodate restaurants. That would be an asset to the people living there. CITY COUNCIL NIINUTES June 5,2001 Page 22 Kautz said the first floor would be executive office space, and if a restaurant came into the site there would be seating on the patio. She added that Hartford Group is relocating its corporate headquarters to Eden Prairie in December 2001. Uram said the Council has a memorandum that details each of the proposals. Both groups have been asked to put together a set of concept plans with short notice or due diligence. The City has owned this site since 1983. It is a hard site to build on. With regard to timing of each of the developments and the offers each has made, Hartford Group is offering $2.7 million and North American Properties is offering $2.6 million, or a difference of$141,000. Hartford would deposit $10,000 in earnest money, and North American$125,000. This would be a firm commitment on their part to proceed. The closing dates are important from the City's standpoint. North American would close the sale as soon as possible; Hartford would close in six to nine months. North American would do financing internally. Hartford Group's would be a complex financing proposal as it was for Lincoln Parc East. Uram said this property goes on the tax rolls next year. Taxes would be about $60,000 a year. Depending on when the sale closes on the property, there could be a lag period. It would be important for the City to close on the site this year. He asked the Council to select a group and to enter into a purchase agreement. Mayor Harris referenced the $125,000 earnest money that North American Properties would provide, compared with$10,000 for Hartford Group. Uram said he believed$125,000 earnest money should be a requirement for both groups. Mayor Harris asked Uram what is the possibility of Hartford being able to put together a funding package; it took a long time last year for the Lincoln Parc project. Uram replied there were a number of complications with the last package. Lincoln Parc's non-profit status changed three times, so the bonding had to change. That could happen again this time. The TIF financing was a three-month process, and it's not known what the legislature is going to do. Rosow said it is not City financing on the TIF or bonding that would cause delays. Affordable housing through HUD took a long time with Hartford Group before. Tyra-Lukens said North American would be able to close using their financing and can close quickly, so the matter of affordable housing is the dilemma. The Council should look at the whole concept of closing when the City wants it to happen. The time factor is a concern. North American can put down their money and there are no contingencies on it;no risk for the City. Uram said from his standpoint, he is looking at the financial part of this, as long as the land is used the way the City wants it used. Tyra-Lukens said the plans have to go through the regular process so they could be changed when the project is brought back to the Council. CITY COUNCIL AM41 ES June 5,2001 Page 23 Uram said because money continues to decrease in value, if there should be a difference in the closing date of more than six months, the Hartford offer would be worth less than the$141,000 difference in the purchase price. Butcher said Hartford Group has made a commitment to the City, and we have worked with them before. She said she would rather go with a known entity. Mayor Harris asked if Hartford could build the same project with no public subsidy, without the affordable component. Kautz said she was sure Hartford could. They knew the City had a "livable communities" goal, so the 20 percent component was something they thought was important to the City. If they take out the affordable component there would be no need for a subsidy. MOTION: Tyra-Lukens moved, seconded by Mosman, to authorize staff to enter into a purchase agreement with North American Properties for the sale of Lot 2 Block 1 Market Center 2nd Addition. Butcher said she believed Hartford Group would give the City what it needs. Mayor Harris said the City needs hard cash, and this project has a time constraint of December 2001. She shared the same appreciation of Hartford Group. This City and Hartford have a working relationship. Getting Lincoln Parc up and running was difficult because it took two years. Motion carried 3-1,with Butcher voting"nay." M. REPORTS OF ADVISORY BOARDS &COMMISSIONS XII. APPOINTMENTS XIII. REPORTS OF OFFICERS A. REPORTS OF COUNCILMEMBERS B. REPORT OF CITY MANAGER C. REPORT OF PARKS AND RECREATION SERVICES DIRECTOR D. REPORT OF COMMUNITY DEVELOPMENT AND FINANCIAL SERVICES DIRECTOR E. REPORT OF PUBLIC WORKS SERVICES DIRECTOR F. REPORT OF PUBLIC SAFETY SERVICES DIRECTOR G. REPORT OF MANAGEMENT SERVICES DIRECTOR H. REPORT OF CITY ATTORNEY CITY COUNCIL MINUTES June 5,2001 Page 24 XIV. OTHER BUSINESS A. CLOSED SESSION ON LITIGATION Rosow said there would not be a closed session due to the lateness of the hour. XV. ADJOURNMENT MOTION: Mosman moved, seconded by Butcher, to adjourn. Mayor Harris adjourned the meeting at 12:40 a.m.