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HomeMy WebLinkAbout05/19/2015 DRAFT OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL REGULAR SESSION LOCATION Council Chambers City Hall 129 Holmes Street South May 19,2015 SHAKOPEE MINNESOTA 7:00 p.m. 1. Roll Call Present: Mayor Brad Tabke; Councilmember Matt Lehman; Councilmember Jay Whiting; Councilmember Kathi Mocol; Councilmember Mike Luce Staff Assistant City Administrator Kris Wilson; Public Works Director/Engineer Bruce Loney; City Present: Attorney Jim Thomson; Parks and Recreation Director Jamie Polley 2. Pledge of Allegiance 3. Approval of Agenda Ms. Wilson requested item 4.A.3., Final Plat of Shenandoah East First Addition,Res. No. 7575,be removed from Consent and moved to 10.A. Ms. Wilson also stated that a memorandum requesting Permission to serve Beer&Wine in a City Park was being added to the Agenda. Mayor Tabke requested the memo be added to the Consent Agenda as item 4.F.6. Moved by Councilmember Jay Whiting,Seconded by Councilmember Mike Luce to approve the Agenda as amended. Vote: 5 - 0 4. Consent Business-(All items listed in this section are anticipated to be routine. After a discussion by the Mayor there will be an opportunity for members of the Council to remove any items from the consent agenda for individual discussion. Those items removed will be considered following the Public hearing portion of the agenda. Items remaining on the Consent Agenda will not be discussed and will be approved in one motion.) Mayor Tabke requested 4.F.6.,Permission to serve beer&wine in a City Park,and 11.D.1.,Approval of City Administrator Employment Agreement, be added to the Consent Agenda. Moved by Councilmember Jay Whiting,Seconded by Councilmember Kathi Mocol to approve the Consent Agenda as amended. Vote: 5 -0 A. Community Development 1. Review of the Conditional Use Permit and Mineral Extraction and Land Rehabilitation Permit for Shakopee Gravel (B) Motion to accept the annual review of the Conditional Use and Mineral Extraction Permit for Shakopee Gravel,Inc. (Motion carried under the Consent Agenda) 2. Final Plat of Valley Park Business Center 3rd Addition,Res. No. 7576(B) Motion to approve Resolution No. 7576,a resolution approving the Final Plat of Valley Park Business Center 3rd Addition, and move its adoption. (Motion carried under the Consent Agenda) 3. Final Plat of Shenandoah East First Addition,Res.No. 7575 (B) Removed from Consent and moved to item 10.A. B. Police and Fire C. Public Works and Engineering 1. Approve a Parking Restriction on 10th Avenue from Holmes Street to Spencer Street to allow for a bike route(E) Moved to approve a motion for no parking on the north side of 10th Avenue from Holmes Street to Spencer Street and on the south side of 10th Avenue from Sommerville Street to Spencer Street. (Motion carried under the Consent Agenda) D. Personnel E. Parks and Recreation 1. Addition of Option B to Community Open Houses(A,B) Motion to approve the recommendation of the Park& Rec Advisory Board(PRAB)to add Option B to the Community Center improvement options presented at the community open houses. (Motion carried under the Consent Agenda) F. General Administration 1. City Council Minutes from April 7, and April 9,2015 (F) Moved to approve the minutes from April 7 and April 9,2015. (Motion carried under the Consent Agenda) 2. City Bill List(F) Moved to approve the bills and electronic funds transfers in the amount$669,761.07 and payroll transfers in the amount of$559,587.83 for a total of$1,229,348.90. (Motion carried under the Consent Agenda) 3. Approval of Inter-Fund Transfers(F) Moved to authorize the inter-fund transfer of$1,642,697 from the General Fund to the various funds outlined above. (Motion carried under the Consent Agenda) 4. Fund Establishment and Inter-fund Loan(C) Moved to authorize the establishment of an Enterprise Fund for Garbage and revise the inter-fund loan from the Sanitary Sewer Fund to be repaid by the Garbage Enterprise Fund. (Motion carried under the Consent Agenda) 5. City Code Amendment to Permit Sunday Growler Sales(F) Moved to adopt Ordinance No. 904,Fourth Series, an Ordinance of the City of Shakopee amending Shakope City Code Section 5.42, allowing small brewers to sell malt liquor in growlers on Sundays. (Motion carried under the Consent Agenda) 5. RECOGNITION OF INVOLVED CITIZENS BY CITY COUNCIL-(Limited to five minutes per person/subject. Longer presentations must be scheduled through the City Clerk. As this meeting is cablecast, speakers must approach the microphone at the podium for the benefit of viewers and other attendees.) No one responded. 6. Economic Development Authority Call to Order 7. Joint City/EDA Public Hearing: Moved by Councilmember Kathi Mocol, Seconded by Councilmember Mike Luce to open the City Council Public Hearing. Vote: 5 -0 Moved by Councilmember Jay Whiting,Seconded by Councilmember Mike Luce to open the Economic Development Authority Public Hearing. Vote: 5 - 0 A. Tax Increment Financing(TIF)District No. 17--Amazon.com.dedc,LLC,Res.No. 7578 (B,D) Ms. DiMaggio presented a request for Tax Increment Financing(TIF)District No. 17-- Amazon.com.dedc,LLC,Res. No. 7578. The City Council is asked to conduct a public hearing and then consider Resolution No. 7578,a resolution approving a tax increment financing plan for Tax increment Financing(Economic Development)District No. 16 and a modified redevelopment plan for the Minnesota River Valley Housing and Redevelopment Project No. 1. Amazon.com is considering leasing a new,build-to-suit building in Shakopee that would be located on 65.93 acres at the northeast corner of Shenandoah Ave. and 4th St. The proposed building would be 850,000 square feet. and would result in an increased tax base and job creation for the City of Shakopee. If granted the requested assistance,Amazon.com and its selected developer would begin construction on the building this spring with anticipated completion by fall of 2016. The proposed TIF district has been reviewed by Springsted,the City's financial consultant,and its analysis is attached for review. This proposal reflects the establishment of an 90%economic development TIF district which over the 9-year term would generate a maximum amount of $5,766,414. The State Auditor will retain$20,760 for administrative costs which leaves the tax increment available for distribution at$5,745,654. The recommended allocation of these funds is as follows: •$3,379,250 to Scott County for infrastructure improvements to County Rd. 83 and County Rd. 101. • $473,280 to the City of Shakopee for administrative costs and TIF pooling which will be used to fund out-of-district infrastructure improvements. The City plans to use these funds for improvements to 4th Avenue along the southern border of the site. • $650,000 to the City of Shakopee for in-district infrastructure improvements. The City plans to use these funds for improvements to 4th Avenue further east of the site. The above allocations would leave $1,243,124 in increment that could be awarded to Amazon to assist in the financing of site infrastructure and construction of the facility. The City's Economic Development Advisory Commission has reviewed Amazon's request and recommends Council approve the establishment of the TIF district. The proposed TIF district would be a"Pay As You Go" arrangement, meaning that if Amazon does not pay the anticipated property taxes for any reason,or if the amount of taxes paid is less than anticipated,the amount they would receive would be reduced. Cncl. Lehman stated the fourth Avenue was scheduled to be redone in 2018,and asked how the project would have been funded without a TIF. Ms. DiMaggio responded that the improvements scheduled for 2018 were minimal in comparison. The Current plans call for sidewalks to be installed and trails. Cncl. Lehman questioned the amount of revenue the City will receive as a result of the project. Ms. DiMaggio responded that the City will be receiving more revenue due to the added parcels that will be generating tax revenue. Cncl. Whiting asked if the AUAR that was completed done at the capacity of 1200 employee's. Ms. DiMaggio answered that the traffic analysis was done on the area to ensure the City could handle the added traffic. Bill Mars, 1279 Cider Circle Shakopee,addressed the Council and questioned if the City is able to assess business owners,with prior tax increment financing, for new road improvements that will benefit their businesses. Mr. Thomson answered that there is nothing that prevents the City from following normal assessment guidelines. Paul Slattery, 1204 Hague Avenue Saint Paul, stated that he represents the teamsters Local Union 120 and asked that the City encourage new businesses to allow employees to band together and form unions. He added that stated he agree's with the TIF, and is pleased to see Amazon move into Shakopee Tom Hennen,2353 Eastway Avenue Shakopee, expressed concerns regarding Amazon moving into the area. Mayor Tabke asked Cncl. Luce and Cncl. Whiting to share details of their trip to Amazon's New Jersey location. Cncl. Luce stated that he was impressed by how modern the center was,and how ergonomically correct the conditions were for the employees. Cncl. Whiting stated that the center was clean, and safe environment for employees. He added that it looked like a good place to work although the wages are a little low. Kevin Gillick, 136 6th Avenue East Shakopee,had questions regarding public financial responsibilities in regards to this project. Dan Marshall, 882 Tatum Street Saint Paul,stated he is a member of the Independent Business Alliance and a small business owner. He expressed his unhappiness with Amazon. Bill Mars addressed the Council with follow up questions to his earlier statements. Deb Barber,Metropolitan Council Representative for District 4,discussed transit needs, solutions and funding for the area. Mike Grella,Director of Economic Development for Amazon.com,provided clarification of statements made during the Public Hearing. Nina Lindsey,Amazon.com, addressed the Council and provided clarification on statements that were made during the Public Hearing. Moved by Councilmember Kathi Mocol, Seconded by Councilmember Matt Lehman to close the City Council Public Hearing. Vote: 5-0 Moved by Councilmember Jay Whiting,Seconded by Councilmember Mike Luce to close the EDA Public Hearing. Vote: 5 - 0 Moved by Councilmember Jay Whiting,Seconded by Councilmember Kathi Mocol Moved to approve Tax Increment Financing Plan for Tax Increment Financing(Economic Development)District No. 17 and a Modified Redevelopment Plan for the Minnesota River Valley Housing and Redevelopment Project No. 1. Vote: 4- 1 Opposed: Councilmember Matt Lehman 8. City Council Recesses for Economic Development Authority Meeting Moved by Councilmember Matt Lehman,Seconded by Councilmember Mike Luce to recess for EDA meeting. Vote: 5 -0 9. Reconvene 10. Business removed from the Consent Agenda will be discussed at this time 11. General Business: A. Community Development B. Police and Fire C. Public Works and Engineering D. Personnel 1. Approval of City Administrator Employment Agreement Moved to authorize the appropriate officials to enter into the negotiated employment agreement with Mr. William Reynolds for the position of City Administrator. (Motion carried under the Consent Agenda) E. Parks and Recreation 1. Quarry Lake Park Large Shelter Design(A,B) Ms. Polley addressed the City Council in regards to the Quarry Lake Park Large Shelter Design(A, B). The City Council was asked to approve the design for the future large shelter at Quarry Lake Park as recommended by the Park and Rec Advisory Board(PRAB).The PRAB recommended Scheme B to the City Council. The PRAB favored this concept for its unique/distinct look, large windows and the feeling that users will be proud to have an event there. Many of the members think that since Quarry Lake will be such a unique park that the building should also be unique. On September 2,2014 the City Council authorized a contract with WSB & Associates to design Quarry Lake Park,develop plans and specifications,bid the project and conduct construction administration. As part of the contract,WSB hired Hagen, Christensen&Mcllwain Architects (HCM)to design the buildings and develop plans and specifications for the buildings. On December 16,2014 the City Council approved the final concept plan for the park and authorized the development of the final plans and specifications. On December 2,2014, staff discussed the vision for a the large shelter with the City Council during a work session. The Council directed staff to design the large shelter as a fully-enclosed,multi-purpose shelter that could be used for rentals, events,programs and classes. The City Council commented that the second, smaller shelter should be similar to the shelters currently constructed throughout the City with the possibility of restrooms. On April 13,2015 the PRAB reviewed the two design concepts for the shelter. The first concept is called Scheme A and is based off of the shelters at Huber Park. This concept includes a gable roof, two building sections, large gathering space,large windows and brick,wood and limestone features. The second concept is called Scheme B and depicts a more industrial style look. This concept includes a more modern roof, is one large foot print, large gathering space,steel beams and has limestone and wood features. Both concepts include two restroom areas,a catering kitchen, storage, small meeting room, mechanical room, large windows to view the lake and a seating area for 150-300 people. The restrooms include one restroom that is accessible to the public that are using the park and one restroom that would be used by the building users. Cncl. Lehman asked where the safest place would be in either design for guests to go in case of inclement weather. The representative from HCM replied that the catering kitchen,mechanical room and restrooms would be the safest places to take shelter. Cncl. Whiting stated that he originally preferred Scheme A,the Huber park design,but after reviewing both designs he is inclined to recommend Scheme B,The Quarry design,to keep with the uniqueness of the park. Cncl. Mocol stated that she also originally preferred the Huber design, but after reviewing the aerial presentation she feels that the uniformity of the Quarry design is preferable. Cncl. Whiting stated that his only concern in regards to the scheme B design,is the possible glare of the sun at different times of the day and having to purchase shades. The representative from HCM stated that during the winter months the sun could be a factor,and it would be considered in the planning phase. Cncl. Lehman stated that he is in favor of option B, but that he has concerns regarding the number of windows in the plan. His concerns are in regards to long term maintenance and possible vandalism. Discussion: Cncl. Luce stated that he would be abstaining from the vote due to the fact that he feels both plans are overly ambitious. Cncl. Whiting stated that there is a possibility that funds could come from other sources such as park dedication fee's from the Amazon project. Ms. Polley agreed and added that other local businesses have expressed interest in the park and the park structures. Staff is also applying for more grants and will have more information regarding the grants at the end of the summer. Moved by Councilmember Kathi Mocol, Seconded by Councilmember Jay Whiting Motion to approve the Scheme B design for the future large shelter at Quarry Lake Park. Vote: 4- 0 Other: Councilmember Mike Luce(ABSTAIN) F. General Administration 12. Other Business Mayor Tabke proclaimed that the week of May 17-23,2015 is National Public Works week. He thanked Mr. Loney and his entire staff for their hard work throughout the year. 13. Adjourn to June 2,2015 at 7:00 p.m. Moved by Councilmember Matt Lehman,Seconded by Councilmember Mike Luce to adjourn. YVote: 5 -0 9 / ' f , ,� . i Hense Acting Ci) ' lerk Heidi Emerson Recording Secretary