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City Council - 10/21/2003 - Workshop APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL WORKSHOP/FORUM TUESDAY, OCTOBER 21,2003 CITY CENTER 5:00- 6:25 PM,HERITAGE ROOM II 6:30—7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Nancy Tyra-Lukens, Councilmembers Sherry Butcher,Ron Case, Jan Mosman, and Philip Young CITY STAFF: City Manager Scott Neal, Deputy Police Chief Rob Reynolds,Fire Chief George Esbensen,Public Works Director Eugene Dietz,Director of Parks and Recreation Bob Lambert,Housing and Human Services Manager Molly Koivumaki,Assistant to the City Manager Michael Barone, City Attorney Ric Rosow, and Recorder Lorene McWaters Heritage Room H I. CALL MEETING TO ORDER II. APPROVAL OF AGENDA III. EDEN PRAIRIE CENTER SPACE Neal said that in 1999,when the Eden Prairie Center renovation was started, General Growth Corporation agreed to provide the City with approximately 4,500 sf of unfinished space in the mall. The agreement stated that the space would revert back to General Growth if the City did not develop the space within five years. Staff has looked at potential ways to use the space, but no formal plan was developed until earlier this year. At that time, unused Community Development Block Grant (CDBG) funds were identified as a potential source of funding for finishing the space. If the use of these funds is approved, the space will be finished to provide public service programs aimed at low/moderate income people and immigrant members of the community. Under CDBG rules, 49 percent of programs offered in the space can be for non-low and moderate income individuals. Housing and Human Services Manager Molly Koivumaki provided details of the proposed design,which was prepared by Wilkus Architects. She said the space will accommodate classrooms, a private office, a resource area, and a large open space. Moveable walls will separate the classrooms so they can be opened to create a larger meeting space. A small office for use by Eden Prairie Police will be included in the space. She said staff feels this is an ideal spot for human services agencies providing services to the community because it is on the bus line and is within walking distance of some of the low income housing complexes. Staff believes the site can also serve as a polling place during elections. The City will be responsible for maintenance and City Council Workshop Minutes October 21,2003 Page 2 operating costs,which are estimated to be around$25,000 per year. Koivumaki said staff is still working on details of a room reservation process and a rental fee structure. Koivumaki and Barone have met with EP Center officials and received positive comments on the plan. She said General Growth's main concern is that the space not be used for political activities. The plan must also be approved by General Growth's headquarters office in Chicago. In order for the CDBG funds to be reprogrammed from housing to human services,the City Council must hold a public hearing(which is scheduled for the regular Council Meeting later tonight). A 30-day comment period follows this hearing. City staff will then present the proposal to the Hennepin County Board for consideration. Mayor Tyra-Lukens said converting the mall space to a human services site will fill a lot of needs in the community. She said setting a rental fee schedule may be challenging because while the City must charge for use,they want it to be affordable. City Manager Neal said Hennepin County will be able to provide guidance on a fee schedule. IV. OTHER TOPICS A. C.H. ROBINSON LEASE NEGOTIATIONS City Manager Neal and City Attorney Rosow updated Council on lease negotiations with C.H.Robinson(CHR). CHR's current lease expires on January 31, 2005. Neal noted that lease revenues from CHR are a major source of income for the City, and the two parties have discussed negotiating a new lease over recent months. Late last week, CHR indicated they needed to conclude the negotiations quickly, or they would terminate talks and plan to move elsewhere. Neal said City staff and CHR staff met all day Monday, October 20, to work out details of a proposed agreement. Neal said CHR was scheduled to take the proposed lease to its board of directors this morning,but he has not heard the outcome. Rosow explained that the proposed lease is a result of stripping the existing lease and its many amendments of problematic and/or conflicting provisions. Neal said parking is a huge issue for both parties. Under the new agreement, all of the tenants (the City, CHR, and the School District)will have exclusive parking areas. CHR will have the right to build an access way to Scenic Heights Road,which will all provide additional parking spaces for their employees. The new lease rate is $4.79/ft. with 2.5 percent annual increases and two five-year options. Neal said our real estate consultants believe this is consistent with the current market rate because it is a"tenants market"at the moment. Neal said the Council is being asked to convene a meeting of the HRA as part of their regular meeting to provide initial approval for the agreement. Council Chamber VI. OPEN FORUM(Scheduled participants, 6:30-7:00 p.m.) City Council Workshop Minutes October 21,2003 Page 3 There were no scheduled participants. VH. OPEN PODIUM (Unscheduled participants, 6:50-7:00 p.m.) No one requested to speak at Open Podium. VM. ADJOURNMENT