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HomeMy WebLinkAbout7. Approval of Minutes: June 15th, 2004 & June 22, 2004 OFFICIAL PROCEEDINGS OF THE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE,NUNNESOTA JUNE 15, 2004 Mayor Schmitt called the meeting to order at 7:00 p.m. with Council members Lehman, Menden, Joos and Helkamp present. Also present: Mark McNeill,.City Administrator; Judith Cox, City Clerk; R. Michael Leek, Community Development Director; Jeff Weyandt, Assistant City Engineer; Gregg V oxland, Finance Director; Jim Thomson, City Attorney; Mark Themig, Park, Recreation and Facilities Director; Michael Hullander, Public Works Supervisor andTerry Stang, Fire Chief The pledge of allegiance was recited. Mr. McNeill, City Administrator, stated that item No. 18 Recess for executive session to discuss labor negotiations. could be deleted from the Agenda. Helkamp/Joos moved to approve the Agenda as amended. Motion carried unanimously. Mayor Schmitt noted that he attended the Scott County Alliance for Leadership and Efficiency (SCALE) meeting and a meeting with the Scott County HRA along with numerous little meetings at City Hall. The following items were removed from the Consent Agenda. 14.A. City Code Amendment Relating to Residential Uses Serving Handicapped Persons in the Highway Business (BI) Zone; 15.Cl. Purchase of Tanker/F1usher for Public Works; 15.C.cc. Valley View Road from Greenfield to County Road 82, Project No. 2004-3; 1S.C.3. Assessment Agreement for JLD Investments for 2003 Reconstruction Project No. 2003-3; 15.D.1. Street Closure Request; 15.F.3. 2004/20053.2 Percent Malt Liquor License Renewals and 15.F.5. 2004/2005 Intoxicating Liquor License Renewals. Lehman/Helkamp moved to approve the Consent Agenda as modified. Motion carried unanimously. IMayor Schmitt asked if there were any citizens present in the audience who wished to address any item not on the agenda. There was no response. Lehman/Helkamp moved to approve the meeting minutes for May 4, 2004. (Motion carried under the Consent Agenda). Lehman!Helkamp moved to pay the Bills in the Amount of $1,213,949.90 plus $300,365.31 for refunds, returns and pass through for a total of $1,514,315.21. (Motion carried under the Consent Agenda). [The list of bills is posted on the bulletin board at City Hall for one month following approval]. Official Proceedings of the June 15,2004 Shakopee City Council Page -2- Cncl. Lehman noted he attended a Park And Recreation Advisory Board (PRAB) meeting in May and he also attended the joint session with the School Board and Scott County regarding planning issues that involved all three entities. He noted in the month of June, he toured sites with a couple of PRAB members for possible parkland acquisition. Cncl. Helkamp noted he attended a SCALE meeting where the steering committee for the Joint Training Facility reviewed that request for proposal's (RFP's). He noted two interviews were held with the contractors who RFP's showed promise. Cncl. Helkamp noted after the interviews were held and a recommendation was made by the steering committee, SCALE approved to get a contract worked up with the BKV IRDG Group. Cncl. Lehman noted he would like to see more detail regarding the SCALE Joint Training Facility included in their Council meeting packets. Cncl. Helkamp noted he would follow up on this request. Cncl. Joos noted he attended a Shakopee Public Utilities Commission (SPUC) where mostly issues were discussed with the their new building and Cncl. Joos did contact Mr. McNeill on some internet issues between the City of Chaska and SPUC. Cncl. Menden noted he and Bruce Loney, Public Works Director/City Engineer attended the Prior Lake/Spring Lake Water Shed District tour with four out of the five County Commissioners; He stated they saw some of the projects that the Prior Lake/Spring Lake Water Shed District has going on at this time. Cncl. Menden noted there might be a draft joint powers agreement from the Prior Lake/Spring Lake Water Shed District coming before the City in the next couple of months. He noted he did a ride-a-Iong with Officer Kegley and was very impressed with the Shakopee Police Department. He stated he would like to do a ride-a-along on an annual basis. He thanked Police Chief, Dan Hughes and Sergeant Tate from the Shakopee Police Department for setting up this opportunity for him. He noted he attended an Environmental Advisory Committee (EAC) meeting and he also had an opportunity to visit Quarry Lake (a discussion item on tonight's agenda). He noted he also attended a School Board meeting and stated the steering committee for the School District was beginning to look at potential parcels for property acquisition for future school district buildings. He noted Red Oak. School (only a few years old) reached capacity in 2003/4; he noted it was possible that an elementary school referendum may need to move forward earlier than planned. Mr. Leek, Community Development Director, stated in April the Planning Commission commented on a concept brought to them by the National Handicapped Housing Institute (NHHI) a non-profit organization. Mr. Leek noted the concept from the NHHI was for an affordable housing complex consisting of twenty-three units. The NHHI hoped to construct this housing complex on Bluff A venue. That lot is currently vacant and that lot would need a minor subdivision to allow that building to be constructed. He stated this concept received positive reaction from the Planning Commission as well as from some residents living in the area of Bluff Street that attended that Planning Commission meeting. He stated because of this reaction from the neighboring residents the Planning Commission reached a determination that this use was Official Proceedings of the June 15, 2004 Shakopee City Council Page -3- similar to other uses that are permitted by a conditional use permit in the Highway Business (B 1) Zoning District. Mr. Leek stated because of this determination, he brought forth a proposed text amendment that incorporated this use as a use in the B 1 District with a conditional use permit (CUP). This proposed text amendment was brought forward at the June 3, 2004 meeting at the Planning Commission where the Planning Commission recommended the City Council approve this proposed text amendment. Mr. Leek noted the NHHI has applied for a conditional use permit (CUP) and a public hearing was pending on this CUP. Mayor Schmitt stated he was struggling with the determination of the Planning Commission. He did not agree with the Planning Commission that the use was similar to other CUP uses in the Highway Business (B 1) Zoning District. He only found one example in the ordinance that he thought was even somewhat close to being related to a similar use. This was aresidential use on top of a business in conjunction with that business. All other residential uses in the B 1 zone were non-conforming uses. Mr. Leek commented when the Planning Commission reviewed this concept, they identified more with the uses that are identified as daycare uses and adult daycare uses. He noted the Planning Commission took into consideration the nature of the population and the impact these residents would have on a day-to-day basis with this area. He noted the Planning Commission recognized that day care facilities were daytime operations and this request was for day round housing to be used as rental units but the Planning Commission thought the uses were still similar. Mayor Schmitt was also concerned about the density of this proposed residential housing complex and he was concerned that only a minor subdivision was being required (he would like to see some street improvement). He noted this housing complex was proposed to be put on a gravel street. He would like to see the conditions apply to this project that the City would require from any other developer. Cnc1. Lehman inquired of Mr. Leek how this proposed housing complex compared to the two apartment rental properties across the street from the proposed housing complex. Mr. Leek addressed this question. He noted those apartment buildings were constructed at a time when those uses were permitted in the area; those apartments buildings are now legal non-conforming uses. Mr. Leek noted the NHHI desired to have this use declared a use permitted in the B 1 zone with a conditional use permit. Mr. Leek stated he had not checked out the density on those existing apartments in the area but in his opinion he thought the density was most likely just about as high as being proposed by the NHHI. Mayor Schmitt noted with this text amendment the City would be allowing residential housing in any B 1 zone (there were several) in the City. He stated why he felt this way. He felt the ordinance was being changed to something with no limits. If this text amendment were approved then residential housing could move along all Bluff Avenue and he did not know if the City wanted all this residential housing along Bluff A venue. He thought the possibilities that might occur if this text amendment were approved may not be how the residents along the 1 sl A venue/Riverfront District really wanted their area developed. Official Proceedings of the June 15,2004 Shakopee City Council Page -4- Cncl. Joos stated that this would be a conditional use permit use and the Board of Adjustment and Appeals could place conditions on each request. Because Cncl. Joos was a former Board of Adjustment and Appeals member, he stated that he found the CUP a very good tool because conditions could be placed on it and it could be very restrictive. Cncl. Joos noted that the City Council could also review the conditions if the CUP was appealed and they could impose more conditions on the CUP if they wanted. He felt using a CUP was a good safeguard for the City. Mayor Schmitt stated that he asked staff to include in activity reports, actions from the Planning Commission and Board of Adjustment meetings that would not normally come forward so the Council was noticed that this action had been taken place (i.e. action like this). Cncl. Lehman noted that he thought it was the intention of the Comprehensive Plan Update to have this type use along the Riverfront because it would make the downtown area unique. Mr. Leek noted when this type of CUP would come before the Council. Mr. Leek stated it was conceivable if this was a mixed use zoning district, this use may have been provided for in the Comprehensive Plan Update. Mr. Leek stated that currently the City did not have a zoning classification that this type building would fall under. Mayor Schmitt explained to the best of his knowledge how the boundaries became what they were and are in the 151 A venue/Riverfront area. He noted he understood some of the area residents were for this proposal; normally, residents in this area were not happy with what had been proposed for the Bluff Street area. However, he would like to see this text amendment go before the Planning Commission again and to have the Planning Commission require of this developer the same conditions (relative to roadway, utilities, etc.) that would be required of any other developer. He felt the roads were critical in this area. Cncl. Helkamp and Cncl. Mend~n felt there was not enough information to make a decision on the proposed text amendment to add this type housing as a permitted use in the B I district with a CUP tonight. Cncl. Menden did think this type development opened up a big can of worms on development in this area of town and the Council was trying to get a handle on the development in this area. Helkamp/Menden moved to table the City Code Amendment Relating to Residential Uses Serving Handicapped Persons in the Highway Business (B 1) Zone for further information (i.e. what was the use really similar too? Should this residential use be allowed all over the B 1 districts? Should this development have conditions similar to other developers regarding public improvements? Is the Comprehensive Plan Update guiding the 151 A venue/Riverfront District for a mixed use?). Motion passed 4-1 with Cncl. Joos dissenting. Lehman/Helkamp moved to remove the Comprehensive Plan Amendment request, rezoning request and the request for MUSA for Gonyea Land Company for the property located north of Valley View Road, east of Staghom Drive and West of Canterbury Road from the table and to Official Proceedings of the June 15,2004 Shakopee City Council Page -5- approve a motion to replace this item back on the table, for consideration at the July 6, 2004 meeting. (Motion carried under the Consent Agenda). Lehman/Helkamp moved to accept and authorize the park easement agreement with Shakopee Public Utilities for the Church Addition. (Motion carried under the Consent Agenda). Mr. Themig reported on the possible land acquisition from Aggregate Industries, Inc. He noted the Council was asked to discuss a potential purchase offer for acquisition of the Quarry site. Mr. Themig gave an overview of the site. He noted the site contained 74 acres of water, approximately 22 acres of shore land, 8 acres of industrial land in the northwest comer and about 20 acres of industrial land in the northeast corner. He did note that right now access to the site was limited. There was access to the site through a private railroad crossing right now but if the City acquired the land there would need to be a different access..Mr. Themig showed a short video to the City Council and the audience showing the site. He noted there were plans to install a pedestrian overpass in this area in the future as part ofthe trails and greenway plan for the City. Mr. Leek noted the funding for the pedestrian bridge would most likely not be available until at least 2008. He noted the shorelines did have a significant amount of elevation changes (particularly on the southern side). Mr. Themig gave some history as to how the City found out about this possible land donation/purchase. He noted the Prior Lake Water-ski Club worked out a lease agreement with Aggregate Industries for the use of this quarry in 2003 and had since renewed their lease agreement with Aggregate Industries for another year. Mr. Themig stated that the Prior Lake Water-ski Club contacted the City about a potential partnership in developing this site. Mr. Themig stated currently there has been a team (potential partners) working for about the last eight months trying to put something together for this site. He noted each potential partner had an interest in the site (there were several). Mr. Themig noted that Aggregated Industries was open to some type of sale or donation proposal for a portion of the land. Aggregate Industries wanted to continue mining on some portions and to continue to lease some of the land to current industrial users. Mr. Themig noted that Aggregate Industries would like to see an integrated plan showing multiple complimentary uses that did not impact neighboring industrial uses for the portion of their land that they would sell or donate. Mr. Themig noted that the Prior Lake Water-ski Club would be a primary partner at this site with exclusive rights to the water portion during certain times if this concept moved forward. The vision ofthe Prior Lake Water-ski Club for this site was for them to use the site as another recreational attraction for the City; a place for people to go and watch water shows. Mr. Themig noted the Prior Lake Water-ski Club stated they would help fund future improvements of the uses they see occurring at the site that would be useful for them. Mr. Themig noted the Outdoor Heritage Education Center (OHEC) would also like to be a partner in this endeavor. Mr. Themig noted that Aggregate Industries stated there would be support to sell their industrial portion on the northwest corner ofthe site to OHEC for use as their Environmental Education Center. Official Proceedings of the June 15,2004 Shakopee City Council Page -6- The DNR, Minnesota Fisheries, has also expressed desire to be a partner in this site. They have found the water to indicate that it could possibly support Trout. He noted the trails and waterways division of the DNR with the help of the Amateur Riders Motorcycle Association would help fund improvements at the site, because there was potential for youth A TV training at the site (small vehicles). Mr. Themig noted that Xcel Energy was also a potential partner. Their peaking plant was nearby as well as 40 acres of Oak Savannah and open space. Xcel had indicated that they were open to having some passive recreation on their 40 acres of open space land. Mr. Themig noted Xcel Energy had been approached about possibly using some of the 40 acres to allow access to the site if that was needed and Xcel Energy was open to that idea. Mr. Themig stated under this proposal the City of Shako pee would take ownership of the land as a park, recreation, openspace amenity for the community. The City having ownership of this land would give the City certain opportunities. Mr. Themig noted the City had the possibility of selling some of the land if that was what they chose. Mr. Themig noted that right now there were no concept plans or cost estimates of improvements for this area of land that Aggregate Industries was willing to sell or donate. He figured by August sometime these plans and cost figures would be available. Mr. Themig stated that Aggregate Industries had an appraisal of the site done in April this year and the appraisal for the entire site was $1,658,900. Mr. Themig stated that in meetings with Aggregate Industries they indicated that their Board would be receptive to an offer of $250,000 for the entire 104-acre site. Mr. Themig stated that these 104 acres did not include the 22 acres that Aggregated Industries would be continuing to lease out for industrial. purposes along the northern shore ofthe lake. Mr. Themig noted that Aggregate Industries had preliminarily agreed to do the clean up of debris and construction materials on the industrial portion that they would be selling. It would need to be determined if there were any contaminated soils on the property proposing to be purchased or donated. Mr. Themig noted the use agreement with Prior Lake Water Ski Association for the surface water of the lake needed to be developed and reviewed by Council prior to the finalizing of the purchase. Staff recommended that staff continue to work through some of these issues and then staff would bring back an agreement addressing most of the issues before any formal purchase agreement was entered into. Mr. Themig stated this proposed project could be compared to a project ofthis type that the City of Rochester was doing. Staff wanted to know if the City was interested in moving forward with some typ~ of purchase offer with Aggregate Industries with the understanding that the purchase offer would come back to the City Council for final approval later this summer. Cncl. Menden felt the land from Aggregate Industries would be much more useful if the City did have use of the 40 acres of land that Xcel Energy stated they were interested in allowing the City to use for passive park activities. Mr. Themig noted that Xcel Energy had affirmed this use. In his opinion the final agreement for this use appeared to be a go. Official Proceedings of the June 15,2004 Shakopee City Council Page -7- Mayor Schmitt inquired about the 40-acre parcel that MnDOT owned across the way. After discussion, it was thought this was not a very good parcel to.connect up to the Aggregate Industries parcel. Mayor Schmitt had some safety concerns regarding the Aggregate Industries land. Mayor Schmitt asked if there were comments from the audience. Harry Weinandt, 1259 Maxine Circle, approached the podium and suggested a water treatment plant at the Aggregate Industries Quarry site. Mr. Leek addressed this suggestion. He noted to turn this body of water into a water treatment plant would be extremely costly and the requirements for the plant would be very strict. Helkamp/Joos moved to direct staff to make an offer on the purchase of the Aggregate Industries Quarry site in Shakopee in the amount of $250,000 including the written statement that Aggregate Industries would clean up the debris and construction materials on the Industrial portion and that the formal purchase agreement would be brought back before City Council for review before the land purchase was finalized. Mr. Themig noted that Aggregate Industries was mainly interested in someone making a commitment at this point in time. Cncl. Helkamp noted that he did see any fiduciary responsibility on the part of the Council to have the appraisal done by Aggregate Industries validated by an appraisal done by the City because the purchase offer price was well below what the Aggregate Industries appraisal was. He felt this was a wonderful opportunity for the City to purchase some parkland. He felt the purchase cost was insignificant for the benefits and opportunities that the City could realize on this site. He did not see any risk in this purchase. Cncl. Menden noted there were some concerns regarding access, safety and liability but he thought th~ b~nefits of this property far outweighed the risks; He, too, would like to see the City move forward on the purchase of this site. Don Vry, Vice President, General Manager of Aggregate Industries, approached the podium and stated he appreciated this conversation at the Council level tonight. He noted Aggregate Industries position on this proposed project. He stated Aggregate Industries would not sign the purchase agreement until all pieces were in place with the Prior Lake Water Ski Association. Mr. Vry also noted the 22 acres that Aggregate Industries would continue to use for industrial purposes was not included in the purchase offer. He did not want to waive any rights for those 22 acres. He noted he would like to see a collaboration of several stakeholders in this project; so there would be an on going display of recreational activities for the community. He would also like to see a kiosk at the site explaining how this site was developed. He noted to Cncl' Lehman that he did not thirli<, the City would by given the first opportunity to purchase the 22 acres when . Official Proceedings of the June 15,2004 Shakopee City Council Page -8- Aggregate Industries was finished with the 22-acre site because Aggregate Industries was a multi-national company and to have a right of first refusal would create just too much paperwork. Motion carried unanimously. Mr. Leek reported on the Final Plat of Park Meadows 1 sl Addition. He noted that this item had been tabled at a past meeting for additional drainage information. A neighboring resident, Beverly Koehnen, brought up some drainage concerns and wanted these concerns addressed. Mr. Leek noted there had been changes to the drainage plan and theses changes were basically with the outflow and emergency outlet for the ponding area. He also noted that with changes made to the drainage plan and all the development that had occurred in the area the drainage was basically diverted to the south of Ms. Koehnen's property now. Mr. Leek noted staff did offer Ms. Koehnen a preliminary version of this drainage plan, however, Ms. Koehnen opted to receive the final plan only. He noted there were some modifications to take place that did not affect this drainage. Lehman/Joos moved to remove the Final Plat of Park Meadows 1 sl Addition from the table and offered Resolution No. 6057, A Resolution Of The City Of Shakopee, Minnesota Approving The Final Plat Of Park Meadows pI Addition, and moved its adoption. Motion carried unanimously. Mr. McNeill reported on the purchase of a TankerIFlusher for the Public Works Department. Mr. McNeill noted that the truck and chassis would replace a 1986 vehicle now in the Public Works Department and the 2000-gallon tank unit being proposed to be purchased would go on the truck purchased to replace the 1986 vehicle. The existing tank unit had served its useful life for the City of Shakopee. The intent was to trade the two items. Mr. McNeill noted that a 20- year depreciation rate was recommended onthese two items. Mr. V oxland, Finance Director, noted these two items were treated as one unit when it came to depreciation. Mayor Schmitt and encl. Lehman had a hard time with depreciating the truck over twenty years because of the larger area the truck would now need to serve. They could understand the tank lasting that long but the truck was another thing. Mayor Schmitt would like to see the two items separated out. Mr. McNeil noted that the truck needed to be replaced. He suggested that staffbe directed to bring back this item at budget time and an appropriate depreciation could be figured out at that time. Mayor Schmitt stated he had no problem with the purchase; he had a problem with the depreciation. Helkamp/Lehman moved to authorize the purchase of one (I) New Cab and Chassis from Boyer Sterling Trucks using the State Bid Contract #432052 for the price of $53,634.47 and accept the quote and authorize the purchase of one (1) New TanklFlusher from ABM Equipment and Supply Inc. for the price of$49,788.75. The cost is to be expended from the Internal Service Equipment Fund and the depreciation schedule to be determined at a later date. Motion carried unanimously. Official Proceedings of the June 15,2004 Shakopee City Council Page -9- LehmanlHelkamp offered Resolution No. 6066, A Resolution Approving Plans And Specifications And Ordering Advertisement For Bids For The Prairie View Additions Bituminous Overlay, Project No. 2004-2, and moved its adoption. (Motion carried under the Consent Agenda). Lehman/Helkamp offered Resolution No. 6064, A Resolution Approving Plans And Specifications And Ordering Advertisement For bids For The Weinandt Acres 1st AdditionStreet Reconstruction, Project No. 2004-1, and moved its adoption. (Motion carried under the Consent Agenda). LehmanlHelkamp moved to authorize the appropriate City officials to execute the easement agreement between the City of Shakopee and Brian and Julie Welch. (Motion carried under the Consent Agenda). JeffWeyendt, Assistant City Engineer, reported on the plans and improvements for Valley View Road from the east plat line of Greenfield Addition to County Road 83, Project No. 2004-3. He stated he would like to have bids back to the Council at the July 19th Council meeting so the project could be done this year. He noted that a temporary easement would be needed from Mr. Weckman on the south side of Valley View Road. Mr. Weckman was concerned about the amount of crop he would loose giving the City the easement. Mr. Weyendt noted that he, Mr. Weckman and Mr. Weckman's attorney would be getting together to stake the easement in the field so Mr. Weckman could visually see what cropland he would be losing. Mr. Weyendt was of the opinion that something could be worked out by the next meeting. Joos/Menden offered Resolution No. 6065, A Resolution Approving Plans And Specifications And Ordering Advertisement For bids For The Valley View Road Improvement Project, From the East Plat Line Of Greenfield To County Road 83, Project No. 2004-3, and moved its adoption subject to resolution of the sloping easement agreement with Mr. Weckman. Motion carried unanimously. JeffWeyendt reported on the special assessments agreement and other issues for the JLD Investment's parcel on the 2003 Reconstruction Project No. 2003-3. He stated that Mr. Loney had been working on this easement agreement with JLD for some time. He noted Mr. Thomson, City Attorney had also worked with Mr. Loney on this special assessments agreement. Mr. Weyendt noted there was a lot of history on this agreement. He noted the assessment was being capped in the agreement. He noted the City would pick up any costs over the capped assessment. Mayor Schmitt noted it was very conceivable with this project that there could be some cost overruns because of all the blasting that may be required. He just wanted everyone to be aware the assessments had been capped. Helkamp/Menden moved to authorize the appropriate City officials to execute an agreement regarding payment of special assess!l1.ynts and other related matters between the City of Official Proceedings of the June 15, 2004 Shakopee City Council Page -10- Shakopee and JLD Investments, LLC (Northland Forest Products, Inc.) for the 2003 Street Reconstruction Project No. 2003-3. Motion carried unanimously. Mr. McNeill, City Administrator, reported on the street closure to accommodate a motorcycle fund raiser coordinated by Pablo's Restaurant with the proceeds from the fundraiser going to the Shakopee Fire Department. He noted it was requested to close Lewis Street between 2nd Avenue and 3rd Avenue for a three-hour period Saturday morning June 19th. Lehman/Helkamp moved to authorize the appropriate City staff to close LewisStreet from 2nd Avenue to 3rd Avenue on Saturday, June 19,2004 from 8:00 a.m. to 11 :00 a.m. Motion carried unanimously. Mr. McNeill reported on the requests for street closures from Scott County for the Scott County jail construction. Bonnie Case, Project Manager from Scott County, approached the podium and gave an update on the Scott County Jail and a street closure requested by Scott County. Ms. Case noted there were some revisions made to the Scott County Jail because Scott County needed to stay within the budget for the new jail and the first bids came in over budget. Ms. Case highlighted what these changes were. These changes were: changes to the walls, domed roof, standardized windows, and removal of the art stone. Ms. Case went over the elevation drawings and pictures of the newly designed Scott County Jail. She noted that the cellblocks would be two-piece modules and would be trucked in and delivered on site during normal construction hours. She noted there was a hall (with large windows) between the cell blocks and the exterior of the building providing for maintenance for utilities and light to come into the cell blocks. She noted there were indoor facilities to maintain the law enforcement radios that they needed to use on site. Ms. Case noted Scott County's intent was to close down the jail annex (minimum security facility) in Jordan and to bring these inmates into the new jail in Shakopee, thus creating operational efficiencies having only one location. She noted the building included a dispatch center, emergency operations center, law enforcement center and jail. She noted the design was for 160 cells. She stated she had received approval to fully double bunk the jail cells during the construction phase because of financial considerations. She noted there were additional expansion opportunities for the new jail. Ms. Case reintroduced the parking plan. She noted that Scott County did a parking plan as part of this project and she noted its conclusions. She noted when the County looked at their parking plan and what they were required to have for parking, they were eight parking spaces short today; the eight spaces were incorporated into their new parking plan for the new jail facility where eighty eight parking spaces would be provided for. She noted where this parking would take Official Proceedings of the June 15, 2004 Shakopee City Council Page -11- place and what demolitions would need to occur for parking space to become available. Ms. Case noted the long term parking plan was to acquire the properties on Block 47 and then to use that area for additional parking when needed by Scott County some day. Ms. Case discussed the tunnel construction and noted that the construction of this tunnel would have an impact on Fourth Avenue. She noted when the tunnel work was being done the utility work would be done at the same time and the street would only need to be cut in one place one time and they only needed to ask for a street closure one time for the tUlmel and utilities project. She noted the anticipated time for this tmmel construction and utility work would be from late June to late August. She was requesting Fourth Avenue between Holmes Street and Atwood Street be closed for the duration of the tunnel construction. Ms. Case did state the timing of the closure was somewhat dependent on weather. LehmanlHelkamp moved to approve the closure of Fourth Avenue between Holmes and Atwood Streets to accommodate jail construction activities. The specific dates will be identified by the County and authorized by the appropriate City staff. Motion carried unanimously. Mr. McNeill noted there was a concern about keeping Third Street open. He noted Third Street would continue to be monitored because they would like to keep it open if possible but if necessary it would be closed for safety reasons. Ms. Case noted some of the safety concerns to pedestrians on the street. She noted the County would at least like to close the sidewalk. Helkamp/Menden moved to authorize the appropriate City Officials to close the portion of the sidewalk on Third Street that the County needed closed as necessary. There was discussion on demolishing that sidewalk now. Ms. Case noted that the County would need to replace that sidewalk near the end of the project. Motion carried unanimously. LehmanlHelkamp offered Resolution No. 6072, A Resolution Of The City Of Shakopee, Minnesota, Regarding Participation In The Southwest Metro Drug Task Force And Amendment To No.2 To Grant Contract #9300-802F/2003-00021, and moved its adoption. (Motion carried under the Consent Agenda). Lehman/Helkamp offered Resolution No. 6061, A Resolution Amending Resolution No. 5982 Which Adopted the 2004 Pay Schedule For The Officers And Non-Union Employees Of The City Of Shako pee, and moved its adoption. (Motion carried under the Consent Agenda). Lehman/Helkamp moved to recommend the City Council to hire for a one year probationary period for the Shakopee Fire Department the top five candidates as requested upon successful completion of a Background check, a Physical and a Psychological evaluation; these top five Official Proceedings of the June 15,2004 Shakopee City Council Page -12- candidates are: Veronica Giese, Joel Sowiega, Dustin Dahlberg, Kyle Martin and Pam Eyrich. (Motion carried under the Consent Agenda). Mr. McNeill reported on a piece of the reorganization of the Public Works Department. This part of the reorganization called for the creation of two new positions (maintenance supervisors, one in the Parks Division and one in the Streets, Sewer and Storm Drainage Division). Staffwas recommending that two current City employees in the Public Works Division be promoted to these two newly created positions. Mr. McNeill noted that these two employees were currently at the top steps in the lead worker positions. He noted that staff would need to re-look at this pay plan because some problems were found to exist with this plan as it is now. Mr. Neill noted staff was also recommending that the current uniform provisions in the current union contract for Public Work employees remain the same and once the Public Works contract is settled for 2004 any pay adjustments as lead workers from January 1, 2004 to June 16, 2004 would be paid retroactively. Lehman/Joos moved to authorize the hiring of Dave Rutt to Maintenance Supervisor for the Street, Sanitary and Storm Drainage Subdivision and Bill Egan as Maintenance Supervisor for the Park Subdivision position within the Public Works Department. Their pay to be adjusted to Grade 7, Step E, effective June 16,2004 with a six month adjustment to Grade 7, Step D and future step increases will be on an annual basis from that date, with the current uniform . provisions in the current union contract for Public Work employees remaining the same and once the Public Works Department contract is settled for 2004 any pay adjustments as lead workers from January 1,2004 to June 16,2004 would be paid retroactively. Motion carried unanimously. Lehman/Helkamp offered Resolution No. 6063, A Resolution Calling For A Public Hearing And Ratifying Publication Of A Notice Of Public Hearing With Respect To The Proposed Issuance Of Revenue Bonds Under Minnesota Statues, Sections 469.152Through 469.1651, and moved its adoption. (Motion carried under the Consent Agenda). Lehman/Helkamp offered Resolution No. 6070, A Resolution Of The City Of Shako pee, Minnesota Accepting A $10,000 Donation from the Shakopee Lions Club, and moved its adoption. (Motion carried under the Consent Agenda). Ms. Judith Cox, City Clerk, reported on the license renewals for On and Off Sale 3.2 Percent Malt Liquor Licenses for the period of July 1,2004 through June 30, 2005. She noted that all insurance, property taxes (where the licensee actually owns the land) utility bills and inspections as required by the City are in order. She noted staff recommended granting the approval of the renewals for On and Off Sale 3.2 Percent Malt Liquor Licenses. - - Cncl. Helkamp noted he pulled this item off consent because one of the convenience stores requesting a renewal was consistently not following the City's sign ordinance. He would like to see these liquor license renewals conditioned upon meeting all requirements of the City's Sign Official Proceedings of the June 15,2004 Shakopee City Council Page -13- Ordinance within 30 days from July 1st and remain in compliance with the City's sign ordinance. If the business establishment did not remain in compliance with the City Sign Ordinance then further action could be taken by the City Council. Helkamp/Joos moved to approve the applications and grant an On Sale 3.2 Percent Malt Liquor License and these liquor license renewals be conditioned upon meeting all requirements of the City's sign ordinance within 30 days from July 1st and remaining in compliance with the sign ordinance for the duration period of the specific liquor license to: Magnum Management Corporation dba Valleyfair, One Valleyfair Drive; Raceway Park Inc., One Checkered Flag Boulevard, Shakopee Jaycees Inc., Joe Schleper Baseball Stadium at TahpallPark; Sky Ventures LLC dba Pizza Hut, 257 Marschall Road; Great Lakes, Inc. dba Shakopee Ballroom, 2400 East 4th Avenue; Dangerfield's Restaurant, Inc. dba Panzanella Bread Company, 1361 East 1st A venue; Dangerfield's Restaurant, Inc. dba F aj ita Republic, 1555 East 1st A venue and moved to approve the applications and grant an Off Sale 3.2 Percent Malt Liquor License with these liquor license renewals conditioned upon meeting all requirements of the City's sign ordinance within 30 days from July 1st and remain in compliance with the City's sign ordinance to: Holiday Stationstores, Inc., 444 East pt Avenue; Holiday Stationstores,Inc., 1381 Greenwood Court; Holiday Stationstores, Inc., 8002 Old Carriage Court; Shakopee 1997 LLC dba Cub Foods, 1198 Vierling Drive East; Speedway SuperAmerica LLC #4546, 1298 Vierling Drive East; Speedway SuperAmerica LLC #4035, 1155 East First Avenue; Speedway SuperAmerica #8510, 1195 Canterbury Road; Kwik Trip, Inc., 1522 Vierling Drive East; Sam's West, Inc., 8201 Old Carriage Court. There was discussion on the amount of time that would be necessary for an establishment to come into compliance with the City's Sign Ordinance. Jim Thomson, City Attorney stated that he thoughtthis type action was appropriate as a condition of the liquor license. This type action would allow the licensee to come before the Council and find out why they were not in compliance and then the Council could take further action if necessary. It was suggested that a registered.letter be sent to the liquor license applicants after an inspector visited the site. Cncl Lehman was not in favor of the sign ordinance compliance being tied to the renewal of the liquor license; he would like a copy of the sign ordinance regulations attached to the liquor license renewal along with a copy of these minutes where this issue is discussed. He would like the signature of each liquor licensee when they picked up their liquor license renewal. The Council was concerned that the sign ordinance was not being followed and something needed to be done to rectify this situation. Cnc1. Joos suggested doing something like the Council did with the underage drinking violations (eventually the license could be lost). Cncl. Menden was concerned about this being discriminatory. The City needed to start enforcing the sign ordinance somehow. Mr. Leek suggested reviewing these licenses for code violations prior to their renewal. He stated that he thought it was important to detail for each site what signs were illegal and which signs were legal. Cncl. Helkamp noted that Mr. Leek had a good plan to Official Proceedings of the June 15,2004 Shakopee City Council Page -14- put into action. Jim Thomson, City Attorney, noted that action would need to be taken on a case- by-case basis. Ms. Cox clarified that the licenses would be mailed and a separate letter would come from the Planning Department advising them of what signs were legal and what signs were not legal. If the business did not comply within the thirty days, then staff would have the violators come before the City Council and Council would then decide if a hearing date would be set to consider suspension of their license. Mayor Schmitt stated he would like to see the letter and the license sent together via registered mail. McNeill noted this would be done if the timeframe could be met. Mr. Leek noted there would be some follow-up to this request. Motion carried 4-1 with Cncl. Lehman dissenting. LehmanlHelkamp moved to approve the application and grant an On Sale Wine License to Dangerfield's Restaurant, DBA panzanella Bread Co., 1561 East 1st Avenue. (Motion carried under the Consent Agenda). Ms. Judith Cox reported on the license renewals for the period of July 1,2004 through June 30, 2005 for Off Sale, On Sale, Sunday, and/or Club Intoxicating Liquor Licenses. She noted thatall insurance, property taxes (where the licensee actually owns the land) utility bills and inspections as required by the City are in order. She noted staff recommended granting the approval of the renewals for Off Sale, On Sale, Sunday, and/or Club Intoxicating Liquor Licenses conditioned upon all of the City Code requirements being met. Mr. McNeill suggested that Saba Entertainment, LLC be conditionally approved tonight but he would follow-up with the police department regarding the citizen complaints. He noted the establishment should be put on notice for code compliance or criminal activity initially. Helkamp/Joos moved to approve the applications and grant Off Sale Intoxicating Liquor Licenses and conditioned these liquor licenses renewals upon meeting all requirements of the City's sign ordinance within 30 days from July I st and remaining in compliance with the City's sign ordinance for the duration of the specific liquor license to: Crossroads Liquor of Shako pee LLC, 1262 Vierling Drive East; MOM Wine & Spirits, Inc., 471 South Marschall Road; Riverside Liquors, Inc., 507 East First Avenue; Valley Liquor, Inc., 1104 Minnesota Valley Mall; Derby, Inc. dba South Side Liquor, 1667 17th Avenue East; Sam's West, Inc., 8201 Old Carriage Court and moved to approve the applications and grant On Sale Intoxicating Liquor Licenses and condition these liquor license renewals upon meeting all requirements of the City's sign ordinance within 30 days from July 1 st and remaining incompliance with the City's sign ordinance for the duration of the specific liquor license to: Great Lakes, Inc. dba Shakopee Ballroom, 2400 4th Avenue East and Pablo's Mexican Restaurant, Inc., 230 South Lewis Street (includes outside dining and drinking) and approve the applications and grant On Sale and Sunday Intoxicating Liquor Licenses and condition these liquor licenses renewals upon meeting Official Proceedings of the June 15,2004 Shakopee City Council Page -15- all requirements of the City's sign ordinance within 30 days from July 15t and remaining in compliance with the City's sign ordinance for the duration of the specific liquor license to: AFFC, Inc. dba Arnie's Friendly Folks Club, 122 East First Avenue; Apple American Limited Partnership of Mhmesota dba Applebee's, 1568 Vierling Drive East; Dangerfield's Restaurant, Inc. 1583 East 15t A venue (includes deck) Saba Entertainment, LLC, 911 East 15t Avenue (includes deck); and Stonebrooke of Shakopee, Inc., 2693 County Road 79; and Turtle's Bar and Grill, Inc., 132 East rt Avenue (includes Banquet Center); and approve the applications and grant On Sale and Sunday and Off Sale Intoxicating Liquor Licenses and condition these liquor license renewals upon meeting all requirements of the City's sign ordinance within 30 days from July 15t and remaining in compliance with the City's sign ordinance for the duration ofthe specific liquor license to: Bretbecca, Inc. dba Pullman Club, 124 West 15t Avenue; Babe's Place, Inc., 124 South Holmes and Canterbury Park Concessions, Inc., 1100 Canterbury Road; andto approve the applications and grant Sunday and Club Intoxicating Liquor Licenses and condition these liquor license renewals upon meeting all requirements of the City's sign ordinance within 30 days from July 15t and remaining in compliance with the City's sign ordinance for the duration of the specific liquor license to: American Legion Club Post #2, 1266 East 15t A venue; Knights of Columbus Home Association, Inc., 1760 East 4th A venue; Fraternal Order of Eagles #4120, 220 2nd Avenue West (includes outside dining and drinking); andVFW Post #4046, Inc., 1201 East Third Avenue. Motion carried 4-1 with Cncl. Lehman abstaining. Lehman/Helkamp offered Resolution No. 6058, A Resolution Designating Twelve Polling Places F or All Election Precincts In The City Of Shakopee, and moved its adoption. (Motion carried under the Consent Agenda). Lehman/Helkamp offered Resolution No. 6069, A Resolution Of Special Commendation To John Flynn On The 25th Anniversary Of His Employment With The City Of Shako pee, and moved its adoption. (Motion carried under the Consent Agenda). Lehman/Helkamp offered Resolution No. 6068, A Resolution Of Special Commendation To Ray Ruuska On The 25th Anniversary Of His Employment With The City Of Shakopee and moved its adoption. (Motion carried under the Consent Agenda). Lehman/Helkamp offered Resolution No. 6067, A Resolution Of Special Commendation To Gregg V oxland On The 25th Anniversary Of His Employment With The City Of Shakopee, and moved its adoption. (Motion carried under the Consent Agenda). Mr. McNeill reported on tentative meeting dates for two special City Council meeting dates towards the end of June. He wanted to make certain that these dates and times were still good dates for the Council members. The Council consensus was that the June 22l1d andJune 29th dates were still good. Official Proceedings of the June 15,2004 Shakopee City Council Page -16- Joos/Helkamp moved to adjourn to Tuesday, June 22, 2004 at 7:00 p.m. Motion carried unanimously. The meeting adjourned at 9:45 p.m. U~~. Crt City Clerk Carole Hedlund Recording Secretary OFFICIAL PROCEEDINGS OF THE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA JUNE 22, 2004 Mayor Schmitt called the meeting to order at 6:00 p.m. with Council members Menden, Joos, Lehman and Helkamp present. Also present: Mark McNeill, City Administrator; Gregg Voxland, Finance Director and Paul Snook, Economic Development Coordinator. . Joos/Lehman moved to open the public hearing to consider economic development assistance for Challenge Printing. Motion carried 5-0. Mayor Schnlitt noted the public hearing was now open. Mr. Snook reported on the Challenge Printing Company financial assistance request for property tax abatement. Mr. Snook noted that it was recommended that a public hearing be set for June 22, to hear this matter. Between the time when the public hearing date was set and now it was thought that the best approach for financial assistance for Challenge Printing would be through tax increment financing (TIF). Mr. Snook noted the abatement scenario showed the maximum abatement that the subject property could generate would be about $1.15 million. Mr. Snook noted how this $1.15 million figure was arrived at. Mr. Snook noted the City and County staffs had not been able to come up with common points to draft a contract for Private Development for tax abatement for Challenge Printing. Mr. Snook noted that the County did not agree with the City regarding the abatement of the current building. The County thought abatement relating to the current building was highly unlikely. They had never taken that approach before and were reluctant to start now. The County was also of the opinion that the 15-year scheduleIor the tax abatement was unlikely to happen because on other proj ects the term of six years was used by the. County for tax abatement. For these reasons the respective staffs have discussed using TIF instead. Mr. Snook noted the last time the City used TIF was in 1998 with Seagate. Mr. Snook explained TIF was a tool that allowed for the capture and use of tax revenues from new development in a defined geographic area. TIF paid for the cost associated with a new development. Mr. Snook noted TIF was very similar to tax abatement except the City and the Economic Development Authority (ED A) captured the increase in tax revenues that would otherwise be paid to all the taxing jurisdictions. Mr. Snook noted several reasons why TIF was being considered now rather than tax abatement. He stated TIF was actually more desirable for this project. 1) the use ofTIF would save the City's and/or County's abatement authority for future projects, 2) the TIF process was more streamlined [the hearing was only before the City], 3) TIF's collection time was shorter [nine years rather than the 15 years - thus the increase in the tax base would be available to all taxing jurisdictions earlier], and 4) the County would not to have vary from their tax abatement policies [length of term and existing building]. Official Proceedings of the June 22, 2004 Shakopee City Council Page -2- Mr. Snook noted since the public hearing for tax abatement was scheduled for tonight the public hearing was being opened and he proposed to continue the public hearing on tax abatement to June 29, 2004 to keep the tax abatement option open. He also proposed that a public hearing date be set for TIF. Cncl. Lehman noted that TIF would be limited only to this proposed Challenge Printing property. Mr. Snook explained the differences between TIF and the tax abatement for Challenge Printing. He noted there were more requirements for a TIF district versus tax abatement and the reporting requirements were more strict. Mr. McNeill, City Administrator, stated that the State wanted to make sure that Cities did not use TIF unless there was a real need for it. Mr. McNeill felt the advantage that TlF had over tax abatement was that TIF was a contract between the City and the beneficiary only; Mr. McNeill noted there was a review period requirement that the School District and the County were going to be asked to waive so Challenge Printing could meettheir time deadlines. Mr. McNeill was ofthe opinion that the County and the School District would accommodate the City in this request. This proposed TIF district would be the 12th district but right now there were only two active TIF districts in the City of Shakopee. The others had been retired. Cnc1. Menden asked Mr. Snook to follow-up on the impact that Challenge Printing would have with the other printing companies in the area (benefit for one company at the expense of another company), what was Challenge Printing's corporate philosophy on giving back to the community, would this company be interested in helping to make up firemen's lost job wages if they were needed for fighting a fire during their normal working hours (allowing Challenge Printing employees to be fire fighters and picking up some lost hours) and why the County has been hesitant in participating in the tax abatement. Mr. Snook addressed the County's hesitation but noted he would follow-up with the County also. Mayor Schmitt asked if anyone from the audience wanted to speak. Helkamp/Lehman moved to continue the public hearing regarding the tax abatement for Challenge Printing until June 29,2004 at 6:00 p.m. Motion carried 5-0. Helkamp/Lehman offered Resolution No. 6073, A Resolution Calling for A Public Hearing On A Tax Increment Financing Plan For Tax Increment Financing District No. 12 And A Modified Redevelopment Plan For The Minnesota River Valley Housing And Redevelopment Project No. 1 And Continuing The Public Hearing Regarding Granting A Property Tax Abatement For Certain Property In The City Of Shakopee, and moved it s adoption. Motion carried 5-0. Official Proceedings of the June 22, 2004 Shakopee City Council Page -3- Mr. McNeill noted there was a request from B and C Solution, LLC dba Arizona's Bar and Grill for a on sale and Sunday on sale intoxicating liquor license and a tobacco license also. It was noted that Mr. Chad Winings of B and C Solutions LLC was acquiring the restaurant and liquor business from Heyde Hospitality, Inc. located at 1244 Canterbury Road. Mr. McNeill noted the Shakopee Police Department had completed a background check and they were recommending that the licenses be granted. Joos/Lehman moved to approve the applications and grant on-sale and Sunday on-sale intoxicating liquor licenses and a tobacco license to Band C Solutions LLC dba Arizona's, 1244 Canterbury Road conditioned upon compliance with City Code requirements. Cnc1. Lehman was concerned that renting was a way for businesses not to be current on their property taxes. He hoped this was not the future trend. Motion carried 5-0. HelkamplMenden moved to adjourn to Tuesday, June 29,2004 at 6:00 p.m. Motion carried 5-0. The meeting adjourned at 6:20 p.m. Va J. ~ Judith S. Cox City Clerk Carole Hedlund Recording Secretary