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City Council - 07/13/1992 - Special MINUTES • SPECIAL EDEN PRAIRIE CITY COUNCIL MEETING MONDAY, JULY 13, 1992 5:00 PM, CITY HALL COUNCIL CHAMBER 7600 Executive Drive COUNCILMEMBERS: Mayor Douglas Tenpas, Richard Anderson, Jean Harris, H. Martin Jessen, and Patricia Pidcock CITY COUNCIL STAFF: City Manager Carl Jullie, Assistant to the City Manager Craig Dawson, Director of Planning Chris Enger, and City Attorney Roger Pauly PLEDGE OF ALLEGIANCE ROLL CALL All councilmembers were present. I. CALL MEETING TO ORDER Mayor Tenpas called the meeting to order at 5:33 p.m. • II. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Pidcock moved and Anderson seconded that the agenda be approved as presented. Motion passed 5-0. III. CLERK'S LICENSE LIST Anderson moved and Pidcock seconded that the requests for licenses and permits on the Clerk's License Limit be approved. Motion passed 5-0. Pidcock asked for clarification that the public dance license for the Half-Time restaurant would be for the indoor dances. IV. RECOMMENDATION OF TWO MEMBERS TO SERVE ON THE NINE-MILE CREEK WATERSHED DISTRICT Jullie explained that the County Board required a 60-day notice for recommendations of persons to serve on the Board of Managers of a Watershed District. Two terms on the Nine-Mile Creek Watershed District would expire on September 30, 1992; as the Council would not meet in regular session until August 4, the Council needed to make recommendations at this meeting if it wished to do so. • Pidcock noted that one resident had placed his name in consideration. He already served on one of the City's advisory commission. Pidcock did not believe that residents should serve on more than one board or commission. EDEN PRAIRIE CITY COUNCIL MINUTES July 13, 1992 Page Two • Anderson requested that the local newspapers be contacted in order that the openings may be announced. Tenpas suggested that the County Board be notified that the City Council would be forwarding recommendations for the appointments on August 5. V. SET JOINT CITY COUNCILINUMAN RIGHTS & SERVICES COMMISSION MEETING FOR 6:00 PM, AUGUST 18, 1992 Anderson moved and Harris seconded that the City Council joint meeting with the Human Rights & Services Commission be set for 6:00 p.m. on August 18, 1992. Motion passed 5-0. VI. UPDATE/ACTION REGARDING LAND BANKING PROGRAM A. Purchase agreement for Eden Prairie Associates property (Resolution No. 92-161) . B. Purchase agreement for Teman property (Resolution No. 92- 162) . Jullie presented the items for consideration, explained the events leading up to the discussion of these potential purchases, and noted a memorandum from the Sterling Group which summarized the major terms of the purchases. The two proposed transactions were lands adjacent to each other west of Eden Road and north of Singletree Lane. Subsequent discussion among the councilmembers, staff, and consultants often included both sets of properties. Jullie noted that the proposed agreement with Eden Prairie Associates had the purchase contingent upon the execution of a purchase agreement for the Teman property. Harris had questions about the "consequential damages" waiver proposed by Mr. Teman. City Attorney Pauly explained that the seller would assume the cost of remediation for potential environmental pollution on the property. The seller would not assume damages due to lost income from future buyers or users of the property. Anderson was concerned about the condition of the soils which had been recently placed on the Teman property. Jullie responded that a preliminary environmental audit report from Braun Engineering and Testing was available, and a verbal report from the firm indicated that there were no special concerns on the property. The City would need to do a more detailed investigation and its results would have a bearing on the final terms of agreement for purchase. Don Brauer, representing Mr. Teman, stated that Braun would have • an addendum to the report stating that the soil came from the Hwy. 5 improvements and that the soil did not have hydrocarbons in it. EDEN PRAIRIE CITY COUNCIL MINUTES July 13, 1992 • Page Three Tenpas noted that the terms of the sales would result in a cost of $4.40/square-foot. . He- did not believe that the City would regain its investment.and lost interest earnings for the money it would put into the deal. He stated he would vote against both proposals: because he preferred to see the private market settle these- transactions and subsequent development of the properties— He thought it unlikely-that the City would get its money back and did not believe that the City should be in a business:with. this:-level of risk. He wished that there had been prior- Council- and public discussion on the expectations---for--these properties. _ _. : Pidcock said that in October._1987-the-City_looked-..at_ concepts for a "home-town:�dbtanbowh_ll and what---would be desirable for development onzthese-_�properties�_ --She-believed this was the only chance-toy-gains control of=a-_valuable_: _ property in which tax-increments---could be used; and--at-- a--- price less than Wal-Mart: paid_*for-property-_-immediately to the south. She said that the City needed to have developers submit proposals and then have the risk shifted to the private sector. Anderson stated his support- for_the concept- of--a- home-town downtown as it was presented._in- 1987_. - He believed that_Wal- • Mart was not an altogether desired use, and-that-the- Council believed that it did not have much control over the development of the property on which it was located. This experience should make the Council realize the desirability to have some control. He believed that the City action would be pro-active and noted that the City had a history of pro-active decisions on doing things which were the best use for the land (e.g. , park land acquisition) . Harris noted that the personalities: of such:-cities- as Chanhassen and Red Wing had been the result of public investment in land improvements. She believed the City should be in a position were it would retain the most options for desired development. Jessen believed that the acquisition of these properties was a valid exercise of the City's authority. The use of tax- increment funds here and for the Purgatory Creek Recreation Area were the best use of these funding tools. Such tools should be used to shape for future direction of the community. He believed that the outlay of funds would be recovered and then used for other public improvements. A. MOTION• • Pidcock moved and Jessen seconded that the Council adopt Resolution No. 92-161 to authorize the execution of a purchase agreement with Eden Prairie Associates for- an amount of $419,374. Motion passed 4-1 (Tenpas opposed) . EDEN PRAIRIE CITY COUNCIL MINUTES — July 13, 1992 Page Four • Harris and Anderson had questions about the possibility of lead content in the soils which were imported from Hwy. 5, and what financial exposure there may be to the City for future remediation. Pauly responded that the financial exposure may be limited to the cost of the soil tests on the site, as the City could elect to not close on the property if contamination was present. If the City owned and subsequently sold the property, and the eventual buyer took additional tests and found contaminants present, the City would become a participant in the remediation. The City could seek damages for remediation from Mr. Teman through the indemnification provision in the City's agreement to buy the property. The City would still be liable for "consequential damages". There would still be an issue of collectability from the current owner of the property for remediation if necessary in the future. Harris reiterated the consequential damages language was worrisome. B. MOTION: Pidcock moved and Anderson seconded that the Council adopt Resolution No. 92-162 to authorize the execution of the purchase agreement for the Teman property for an amount of $3,976,919. Motion passed 4-1 (Tenpas . opposed) . VII. NEW BUSINESS None. VIII. ADJOURNMENT Harris moved and Pidcock seconded that the meeting be adjourned at 6:27 p.m. Motion passed 5-0. •