Loading...
HomeMy WebLinkAbout4.F.2. City Council Minutes from March 21, 2015 Consent Business 4. F. 2. StOI'EE TO: Mayor and City Council FROM: Lori Hensen, Deputy City Clerk DATE: 04/21/2015 SUBJECT: City Council Minutes from March 31, 2015 (F) Action Sought Move to approve the City Council Minutes from March 31, 2015. Attachments: March 31, 2015 DRAFT TENTATIVE AGENDA Shakopee City Council Workshop 7:00 p.m. March 31,2015 LOCATION Council Chambers City Hall 129 Holmes Street South Shakopee Mission Statement The Mission of the City of Shakopee is to provide the opportunity to live,work and play in a community with a proud past,promising future, and small town atmosphere within a metropolitan setting. Mayor Brad Tabke presiding Present: Mayor Brad Tabke;Councilmember Matthew Lehman;Councilmember Jay Whiting; Councilmember Kathi Mocol;Councilmember Mike Luce Staff Kris Wilson,Assistant City Administrator;R.Michael Leek,Community Development Director; Present: Bruce Loney,Public Works Director/Engineer;Jim Thomson,City Attorney;Jamie Polley,Parks and Recreation Director;Lori Hensen,Acting City Clerk 1. Roll Call 2. Pledge of Allegiance 3. Approval of Agenda Moved by Councilmember Kathi Mocol, seconded by Councilmember Mike Luce to approve the Agenda. Vote: 5 - 0 4. Call EDA to Order President Mocol called the EDA Meeting to order. 5. Joint City/EDA Public Hearing A. Tax Increment Financing(TIF)District No. 16 --Rahr Corporation(D) Moved by Councilmember Jay Whiting, seconded by Councilmember Kathi Mocol to open the City Council Public Hearing. Vote: 5 - 0 Moved by Councilmember Jay Whiting, seconded by Mayor Brad Tabke to open the EDA Public Hearing. Vote: 5 - 0 Ms. DiMaggio presented an application for Tax Increment Financing(TIF)District No. 16 -- Rahr Corporation. Rahr Corporation is a family-owned business that has been in operation since 1847. Rahr Malting Co., a division of Rahr Corporation,manufactures and distributes malt for the brewing/beverage industry. Rahr is proposing a substantial expansion/redevelopment project in and around its current Shakopee campus,to include construction of: 1.a 112,000 square foot manufacturing, assembly,and processing plant, (the "Malt House")off of 3rd St.; 2. a 90,000 square foot warehouse located on the north side of County Rd. 69 to serve their Brewer's Supply Group (BSG); 3.a 14,500 square foot maintenance warehouse off of 2nd St, and 4.an 18,400 square foot research laboratory(the"Tech Center") at the southwest corner of 1st Ave. &Apgar St. The proposed project will bring redevelopment to the north side of 1st Ave.,resulting in an increased tax base,job creation and more attractive corridor. Several deteriorating structures have been or will be removed as a result of this project. Rahr is also planning to add more staff to correspond with the expansion/redevelopment. The proposed tax increment district has been reviewed by Springsted,the City's financial consultants,and their analysis is attached for review. The proposed district would be a 9-year economic development TIF and is estimated to generate a total of $1,941,325. If granted the requested assistance,Rahr would begin construction this spring and anticipates completion by January 2017. Representatives from Rahr Malting gave a presentation regarding Rahr's history in Shakopee, community contributions,employee programs and plans for the future. Ms. DiMaggio reviewed the costs and conditions of the TIF. Mr. Lehman asked how the new building differs from the original structure from a fire standpoint. Mr. Theis answered that the BSG Warehouse will be fully sprinkled, as well as the Tech Center, and the warehouse. The Malt house itself will be a slipform concrete structure, so the concrete creates a firewall that exceeds the required standards. Mr. Whiting asked if the brewery included any plans for a taproom. Mr. Theis responded that the current plans are only for testing new product. Mr. Luce stated that he feels that Rahr has been a great partner in the community and that he is in full support of the project. Jordan Olson, stated that he is in full support of the project and urged the Council to approve it. Moved by Councilmember Jay Whiting, seconded by Councilmember Matthew Lehman to close the EDA Public Hearing. Vote: 5 - 0 Moved by Councilmember Matthew Lehman, seconded by Councilmember Kathi Mocol to close the City Council Public Hearing. Vote: 5 - 0 Discussion: Cncl. Lehman stated that he has an issue with the fact that there will not be any tax revenue generated during the 9 years of the TIF. He added that because Rahr has been such a good partner in the community he will still vote for it. Cncl. Luce stated that he wishes the project was bigger and more money could be given to Rahr because he has issues with the outside companies coming in and demanding financial assistance. Cncl. Whiting stated that he in full support of the project. Cncl. Mocol stated that she is also in full support of the project. Moved by Councilmember Kathi Mocol, seconded by Councilmember Mike Luce to approve Resolution No. 7567,A Resolution Approving Contract for Private Development with the Economic Development Authority for the City of Shakopee and Rahr Corporation, including a Business Subsidy Agreement. Vote: 5 - 0 Moved by Councilmember Jay Whiting, seconded by Councilmember Mike Luce to approve Resolution No. 7567,A Resolution Approving Contract for Private Development with the Economic Development Authority for the City of Shakopee and Rahr Corporation, including a Business Subsidy Agreement. Vote: 5 - 0 6. Adjourn EDA Moved by Councilmember Mike Luce,seconded by Councilmember Matthew Lehman to adjourn the EDA meeting. Vote: 5 - 0 7. Council Workshop Discussion A. Community Center 2.0 Feasibility Study Review(A,B, D) Ms. Polley addressed the Council regarding the Community Center 2.0 Feasibility Study Review. On December 2, 2014 the City Council authorized the hiring of two consultants for the Community Center 2.0 project. The components of the Community Center 2.0 project that were to be studied include: a 2nd sheet of ice, increased fitness space, an indoor aquatic center, indoor playground and a covered turf facility. Ballard*King and Associates,Inc. was retained to conduct a feasibility study and 292 Design Group,Inc. was retained to complete the architectural study. 292 Design Group was tasked with 3 items: 1. Developing a plan for all of the components within the study based on the programming recommendations from our feasibility study/market analysis. 2.Determining the cost to change the cooling system of our current Ice Arena per state requirements and add a second sheet of ice to our current facility as well as determine if a future 3rd sheet could be built on the same site. 3. Determining the cost to construct a new 2 sheet facility on property that does not require purchasing. On March 3,2015 the City Council directed the architects to plan for a new 2 sheet ice arena on land that would not need to be purchased and to repurpose the existing Ice Arena. Based on this direction 292 Group has developed a concept plan for the Community Center including the programming recommendations from B*K. B*K has put together an operations analysis of the components within the study. The operations analysis includes estimated revenues and expenditures for the additional components to the Community Center. Jeff King of Ballard* King and Associates and Tom Betti of 292 Design Group presented the feasibility information, market analysis,programming recommendations, architectural concepts and the operations analysis of the Community Center 2.0 project. Mayor Table asked what part of the plans presented are outside of the current footprint of the exsting Community Center. Mr. Betti answered that the only additions the the building would be the pool mechanical room and the childrens playgroud area. Cncl. Mocol requested the current Parks &Recreation programming numbers. Ms. Polley reviewed the 2015 operating budget. Mayor Table asked if there was a possibility of partnering with a private business on the project. Mr. King responded that there are many examples of collaborations like this in the current marketplace. He added that these plans did not take a collaboration into consideration. "' Cncl. Whiting asked how the increase in revenue after the updates was determined. Mr. King answered that the enhancements being proposed such as providing daycare, an upgraded fitness center and the pool were used to determine the increased revenues. Cncl. Whiting added that he would like to see the Teen Center and Senior Center as two separate spaces. Cncl. Lehman asked what percentage of the projected 2019 revenue increase is being based on population growth. Mr. King answered that population growth is not a calculation they typically use to determine projected revenue increase. Cncl. Lehman asked if membership loss due to increased costs was taken into account. Mr. King answered that this pro forma was calculated based on the current fee structure. He added that the City has provided very favorable rates for access to Parks &Recreation services, B. Financing Options for New or Expanded Recreational Facilities(C) Ms. Wilson presented financing Options for New or Expanded Recreational Facilities. In addition to the operational and architectural components of the feasibility study for the Community Center 2.0 concept,the Council also authorized a financial component to be completed by the City's financial advisors at Springsted,Inc. Cncl. Whiting asked if the cost of the project can be lowered if different materials are used. Mr. Betti answered that the best way to lower costs is to reduce the amount of seating in the facility rather than using different materials. He added that reducing the seating will have a ripple effect financially. Cncl. Mocol stated that she thinks a possible next step would be to have the Park Board review the information and hold two open houses to get the publics input. Cncl. Lehman stated that he would like to review the information that has been presented and ask all of the questions and discuss the options at a later date. Cncl. Luce stated that he is not in favor of looking for ways to cheapen the project. He believes if it is going to be done, it should be done right. He stated that he would like a month to review all of the information. He added that he would like to keep the public involved throughout the process. Mayor Tabke stated that Council will meet on May 6,2015 to discuss the options. They will also hold two open houses with dates to be determined by staff 8. Adjourn to April 7, 2015 at 7:00 p.m. Moved by Councilmember Kathi Mocol, seconded by Councilmember Jay Whiting to adjourn. Vote: 5 - 0 �/ 1 Lori J.f:ensen Acting City Clerk Heidi Emerson Recording Secretary