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HomeMy WebLinkAbout04/09/2013 TENTATIVE AGENDA Shakopee City Council Adj. Regular Session 7:00 p.m. April 9, 2013 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 1) Roll Call 2) Approval of Agenda 3) Public Hearing: A) Public Hearing for Property Tax Abatement for Compass Datacenters, LLC - Res. No. 7293 and Res. No. 7289 (B) 4) Convene Economic Development Authority (City Council to Remain in Session) A) Amendment to Contract for Private Development with Rosemount, Inc., Regarding Wage Rates for Job Creation Goals - Res. No. 7294 (B) 5) Adjourn Economic Development Authority 6) Joint Meeting with Historic Preservation Advisory Commission A) Historic Preservation Ordinance Discussion 7) Other Business 8) Adjourn to Tuesday, April 16, 2013 OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE,MINNESOTA APRIL 9,2013 1. Roll Call Mayor Tabke called the meeting to order at 7:00 p.m. and roll call was taken. Present: Mayor Brad Tabke, Councilors Pamela Schurman, Matt Lehman, Steve Clay and Jay Whiting. Staff Present: Mark McNeill, City Administrator; R. Michael Leek, Community Development Director; Mark Noble, City Planner 2. Approval of the A�enda Schruman/Whiting moved to approve the agenda. Motion carried 5-0. 3. Public Hearin�s 3.A. Public Hearin�for PropertV Tax Abatement for Comqass Data Centers, LLC—Res. No. 7293 and Res. No. 7289. Clay/Whiting moved to open the public hearing. Motion carried 5-0. Mr. McNeill said the City has received an application for business subsidy from Compass Datacenters for assistance in locating a development on an 11.3 acre parcel of land in the Dean Lakes commercial area. Compass proposes to construct a building space in five modules over a three year period of time. Compass anticipates completion of Phase 1, the first two modules, by the end of 2013. Phase 2 construction would follow. The complex would employ a minimum of 40 people upon completion, with as many as 65 jobs being created. Compass is aware that the minimum wage to be paid is $14.50 per hour(exclusive of benefits), and has agreed to adjust their lower end jobs to accommodate that. The overall average wage to be paid will be $68,500, and is reflected in the Agreement. Originally, Compass had requested 50% abatement on property taxes to be paid on the entire $67 million investment that it is to make. However,that figure includes significant amounts of equipment, for which Minnesota does not tax as property. The Scott County Assessor's Office has assigned a value of$11.65 million to the project. Compass had originally requested a total of$2.1 million in financial assistance, including fee waivers for Dean Lakes infrastructure assessments, storm water trunk charges, and consideration by SPUC on rates and installation fees. Subsequent negotiations between Compass and staff have led to a recommendation that up to 50 SAC credits (with a cash value of$121,750)be granted, with any unused SAC credits to be returned to the City. A separate public hearing will be needed for those business subsidies. The incentives and request for abatement were reviewed by the EDAC in March. While the Official Proceedings of the Apri19, 2013 Shakopee City Council Page 2 EDAC was supportive of Compass and its move here, it did not feel that it warranted 100%tax abatement. For that reason, Springsted's analysis provides for a nine year abatement, with a 50% City property tax abatement. That would generate $251,555 from the City's portion of those taxes over the nine years. Ray Watson and Chris Curtis of Compass answered questions by Council. Mayor Tabke asked if there was anyone in the audience that wished to speak at the public hearing. No one responded. Whiting/Schurman moved to close the public hearing. Motion carried 5-0. Whiting/Clay offered Resolution 7293, A Resolution Calling a Public Hearing on Granting Business Subsidy to Compass Datacenters, LLC, or any of its affiliates. Motion carried 5-0. Schurman/Clay offered Resolution for Granting a Property Tax Abatement far Certain Property in the City of Shakopee. Motion carried 5-0. 4. Convene Economic Development Authority (City Council to Remain in Session) 4.A. Amendment to Contract for Private Development with Rosemount, Inc., Re�ardin� Wa�e Rates for Job Creation Goals—Res. No. 7294. Mr. McNeill said that as part of the Council/EDA action on April 2nd,the Council and EDA amended the Development Agreement to require that, within 3-4 years, 60% of the jobs created by Rosernount in their proposed development of the ADC II site would pay at least $30 per hour, exclusive of benefits, and 40%would be paid at least $18 per hour, again excluding benefits. After Rosemount was able to fully consider the impacts of those amendment provisions following the meeting, staff received word the following day that those numbers would not work for Rosemount. They indicate that they are agreeable to paying the stated ratio of jobs at an average of$30/hour, and $17/hour(not$18) after 4 years. However, to specify the amounts discussed at the Council/EDA meetings to be minimums, and also have those rates be exclusive of benefits is financially unworkable. They are agreeable to an amendment stating that the $30 and $17 shall be average wages (at a split of 60%and 40%, respectively), exclusive of benefits, and be applicable beginning with the 4th year. Clay/Whiting moved to amend and offered Resolution No. 7294, Resolution Approving Revised Contract for Private Development(Including a Business Subsidy Agreement) with the City of Shakopee, Minnesota, Scott County, Minnesota, Independent School District No. 191 (Burnsville-Eagan-Savage), and Rosemount Inc. Motion carried 4-1 with Cncl. Lehman opposing. 5. Adiourn Economic Development Authority Meetin�. Lehman/Whiting moved for a 10 minute recess. Motion carried 5-0. Mayor Tabke reconvened the meeting at 7:36 p.m. Official Proceedings of the Apri19, 2013 Shakopee City Council Page 3 6. Joint Meetin�with Historic Preservation Advisorv Commission 6.A. Historic Preservation Ordinance Discussion Planner II, Mark Noble, Pat Ploumen, Sara Weyer, and Marty Berens, members of the Historic Preservation Advisory Commission(HPAC)presented Council with discussion items regarding a draft Historic Preservation Ordinance that they developed. This items was originally discussed at the March 19, 2013 meeting where there was significant discussion on certain elements of the proposed ordinance. Questions raised include: 1. Could subsequent property owners"opt-out" of the program? 2. What types of fees would be put in place for applications pertaining to historic preservation items (i.e., an application requesting inclusion or removal from the program, an application for a site alteration permit, and an appeal of any decision of the HPAC)? 3. What basis would there be for overturning an appeal? 4. Is this draft ordinance constitutional? 5. Provide clarification on the Certified Local Government program. The Council questioned whether the designation as a historic property would stay with the property should ownership change,thus requiring the new property owners have to submit an application or an appeal to have the historical designation removed from the property. Mayor Tabke, Cncl. Clay and CncL Whiting all agree with the HPAC that if a homeowner opts. into the program, the property would be considered historic even if the property would change ownership. Cncl. Lehman and Cncl. Schurman like the idea of preserving historic buildings in Shakopee but don't believe that property owners should be forced into the program, or that the designation should apply when the property is sold. Also discussed was the idea that the city could subsidize expenses for applications, as there are a rather limited number of properties that would be involved in this process. Staff and the Commission do not anticipate that much additional review time would be necessary, when compared to a standard building permit application process. The Commission would support whatever fee structure the Council recommends, as well as whatever review guidelines the Council would like to establish. Cncl. Clay suggested the City start a fund similar to the Fa�ade Improvement Program established for business. He would also like to see the building permit fees waived for properties that opt into the program. It was suggested that the language concerning appeals could be softened. The Commission would certainly incorporate whatever language the Council would support into the draft ordinance. The City Attorney's Office has reviewed the relevant legal authorities and has concluded that historic preservation ordinances like the one prepared by the HPAC has been found to be constitutional. Staff has reviewed the Minnesota Certified Local Government (CLG) Procedures Manual, prepared by the State Historic Preservation Office of the Minnesota Historical Society. This document addresses the purpose, requirements and processes that certified local governments Official Proceedings of the April 9, 2013 Shakopee City Council Page 4 must follow. The Commission believes that the Resolution adopted by the Council that initiated the Commission, along with the rules and regulations which they follow, in addition to the approval of a historic preservation ordinance, would qualify the Commission to pursue becoming a CLG. Should the City of Shakopee ever attain certified local government status,the Commission will follow those standards, and would hope to be able to apply for federal matching grants to preserve historic properties, as well as pursue Federal Investment Tax Credits and Minnesota Historic Structure Rehabilitation State Tax Credits. Staff sent out notices to 85 properties, including 8 that had formally requested removal of their properties from consideration as a historic properly. Those 8 notices served as confirmation that their properties had been removed from the list of potential locally designated historic properties, but that they were being made aware of the meeting due to their past involvement ar interest in being kept aware of any action related to Historic Preservation. Mayor Tabke asked if anyone from the audience wished to speak. Joe Collins, 404 5�'Ave. E., stated that he is in support of parts of the ordinance but only by choice of the property owner. He likes the idea of the HPAC being a resource and providing options to obtain financial assistance for structure improvements. Sean Nelson, 603 E. 8t"Ave., opposes the ardinance and states homeowners should have the right to opt in or out of the program at any time. Jordan Olson, 249 Mount St., opposes the ordinance and stated it's not government's role to provide financial assistance to homeowners to make improvements on their homes. Peggy Kohl, 714 Holmes St., doesn't agree with the ordinance because there are too many gray areas in the ordinance. Cynthia Conrad, 18021 Covington Path, Minnetonka, owns property at 322 2°d Ave. E, would like homeowners to have the opting in or out of the program. She also said she had concerns about finding contractors that would work on homes considered historic. Mayor Tabke asked the HPAC to consider Council and property owner comments and recommendations and incorporate them into the draft ordinance the next time they meet. Mayor Tabke asked that the HPAC bring back a revises ordinance at a later date. Mr. McNeill recapped what the HPAC should consider the next time they meet: research impacts of a City-historic designation on homeowner's insurance; research impacts for contractors working on historic properties; investigate funds to assist renovations; what the City should be charging for permits; and bring to the EDAC the question about when the Fa�ade Loan Improvement Program is appropriate. Mr. McNeill also to affirm from earlier discussions that a majority of the Council members were still in agreement that once a property owner opts into the program, there is no subsequent opting out of the program. Mayor Tabke confirmed that direction. Mr. Leek also brought up the appeal standard in the ordinance for decision by the HPAC regarding a permit review. There needs to be a discussion with the City Attorney about what initial criteria should exist when a property owner would come forward and testify about a recommendation to be on the historic list. He also wanted to re-clarify comments about the Official Proceedings of the April 9, 2013 Shakopee City Council Page 5 contractor issue regarding discussion with other communities on their standards, and to the State Historic Preservation Office about what list of contractor resources may already exist.. 7. Other Business None S. Adiourn Lehman/Schurman moved to adjourn to Tuesday, April 16, 2013 at 7:00 p.m. Motion carried 5- 0. Meeting ended at 9:06 p.m. � � �� ' � Julie A. Linnihan Finance Director/City Clerk Kim Weckman Recording Secretary