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City Council - 01/19/2010 - Workshop APPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY,JANUARY 19, 2010 CITY CENTER 5:00—6:25 PM, HERITAGE ROOM II 6:30—7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Phil Young, Council Members Brad Aho, Ron Case, Jon Duckstad, and Kathy Nelson CITY STAFF: City Manager Scott Neal, Police Chief Rob Reynolds, Fire Chief George Esbensen, Public Works Director Eugene Dietz, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay L otthammer, Communications Manager Joyce Lorenz, City Attorney Ric Rosow, and Recorder Lorene McWaters Heritage Room H I. MAJOR CENTER AREA: SPECIAL SERVICE DISTRICTS City Manager Scott Neal said the MCA Special Service Districts workshop was scheduled in response to concerns raised by Walmart during their redevelopment process as well as questions raised by the Eden Prairie Chamber of Commerce. Mark Ruff and Bruce Kimmel of Ehlers & Associates gave an overview of the special service district statute. Ruff said the purpose of a special service district is for commercial properties to pay for services and improvements that are mutually beneficial. The services are those typically not provided to the rest of the city. Ruff explained that a special service district is established by petition of property owners subject to the service charge. The petition must represent a minimum of 25% of the district's land area. A special service district veto can be triggered by property owners representing 35% of the land area or charge. Community Development Director Janet Jeremiah provided an overview of the Major Center Area task force, public process and recommendations, including streetscaping in the Town Center. Jeremiah said the Streetscape Master Plan was approved by the City Council in April 2009. Jeremiah read excerpts from the MCA Streetscape plan that discuss roadway streetscape improvements and the expectation that redeveloping parcels will help pay a portion of those costs through special assessments and/or special service districts. Economic Development Manager David Lindahl reviewed the economic development benefits of the Major Center Area plans including maintenance of high property values and desirability of Eden Prairie as a location for business and commerce. Lindahl reviewed concerns the Eden Prairie Chamber of Commerce has raised in relation to special service districts. The Chamber is opposed to the City requiring businesses to City Council Workshop Minutes January, 19, 2010 Page 2 participate in special service districts and to waive their rights to appeal. The Chamber believes participation in special service districts should be voluntary. Jeremiah provided details of MCA development agreements the City has negotiated with Windsor Plaza, Presbyterian Homes, CVS and Walgreens. All have agreed to pay their fair share of the roadway/streetscape improvement costs and all have agreed to petition for a special service district. Windsor Plaza and Walgreens have agreed to waive the right to appeal. Presbyterian Homes and CVS have agreed to a maximum annual charge. Jeremiah reviewed a map showing potential roadway/streetscape projects and potential future special service districts for maintenance. She said the only project under current consideration is Singletree Lane east of Eden Road, which will be paid for almost entirely by Windsor Plaza. The other potential projects are illustrative only for discussion. They show a scaled-down Prairie Center Drive project, which would likely not happen until at least 2014. City Assessor Steve Sinell reviewed the parcels in relation to percent of area and value needed to consider creation of a special service district. He noted it may be possible with a scaled down Prairie Center Drive scenario. Jeremiah said in light of concerns raised by the Chamber and Walmart, and that staff has not intended to force special service districts on property owners, staff recommends the City: 1. Not require developers to waive the right to appeal special service district creation and/or charges 2. Consider retaining special service district language regarding petitioning for discussion of the district only, with the right to appeal 3. Retain requirements for developments to pay a fair share of roadway/streetscape costs Mayor Young asked when the council last discussed the proposed changes to Singletree Lane. Public Works Director Gene Dietz said the Council discussion took place in 2008. Young said he does not like the idea that the City would require a developer to initiate a petition. He said he believes the Council would benefit from further discussion of streetscaping plans. He said he recalls the Council expressing a desire to pull back on some of these types of improvements. He said concept documents need to be tied back to specific projects and costs. Council Member Nelson said the original MCA Task Force concept was to put together something unique for Eden Prairie. She said at the time the business community was very interested in developing a business center. Nelson said she believes many businesses support the long term vision. She does not want to abandon the concept, and she does not think the direction should be driven by a single property when others have bought into the plan. Nelson would like to see a level playing field for all property owners and is not willing to back away from that concept. Young said he wants to have a new discussion of streetscaping that involves more detail than the concept plans that were approved. Neal said the streetscape master plan includes fairly good cost estimates, and now would be a good time to discuss how a special service City Council Workshop Minutes January, 19, 2010 Page 3 district might function. He said one advantage of a special service district is that it protects taxpayers from paying for amenities that benefit just a couple of major properties. Aho said he would prefer to have developments drive the request for a special service district rather than forcing them to buy into it. Nelson said she is concerned that the basics, such as straightening of roadways, get done as redevelopment occurs. She is comfortable leaving the rest for businesses to request. Duckstad said he does not understand how the City can discuss waiving the right to appeal a special service district that does not yet exist. Rosow said staff needs Council direction on how to proceed with Walmart based on their objections to agreeing to petition for a special service district and to agreeing to waive the right to appeal charges. Jeremiah said staff has been continuing negotiations with Walmart on the requirements to pay a fair share of the streetscape costs for Singletree and Prairie Center Drive and are willing to allow them to save costs by not replacing the lattice tower with a monopole and bricking the back of the building,but she does not know exactly where they currently stand on all of the issues. There was general consensus that the Council agrees with the first and third staff recommendations, and does not want to require petitioning of the district. There should be more discussion of the Singletree Lane project east of Eden Prairie Road and how that will be funded. Council Chamber II. OPEN PODIUM A. Barbara Kaerwer—Public Infrastructure Ordinance Kaerwer asked the Council to work with her and her attorney to find a win-win solution for her 5-acre property. B. Thomas Casey— Public Infrastructure Ordinance Casey said he represents Barbara Kaerwer. He asked the Council to table the second reading of the Public Infrastructure Ordinance for six months to give Kaerwer and the Nine Mile Creek Watershed District time to submit their proposal for Kaerwer's property to be donated to the watershed district. C. Kevin Bis!alke, Nine Mile Creek Watershed—Public Infrastructure Ordinance Bigalke said he is the director of the Nine Mile Creek Watershed District. He said the district, neighbors, Kaerwer and City staff have had two productive meetings in January regarding Kaerwer's property. He asked the Council to delay the second reading of the Public Infrastructure Ordinanace to give them time to work through the application process for Kaerwer's property. City Council Workshop Minutes January, 19, 2010 Page 4 D. Rick Barberi Barberi said he is a neighbor of Kaerwer. He respects what she wants to do with her property but has several concerns with the proposal. He asked the Council to consider: • The safety issues surrounding the proposed use • The implications of changing a residential to non-residential use • The implications of a non-locally governed agency controlling the land • The precedent that may be set if the zoning of the property is changed E. Ted Peuam Pegram said he is concerned that government agencies cannot balance their budgets. He is concerned and that the proposal to donate the Kaerwer property will end up costing the City and its taxpayers. III. ADJOURNMENT