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<br />64 MINUTES
<br />OF THE REGULAR MEETING OF THE
<br />EDINA CITY COUNCIL HELD AT CITY HALL
<br />NOVEMBER 16, 1987
<br />Answering rollcall were Members Kelly, Richards, Smith, Turner and Mayor Courtney.
<br />CONSENT AGENDA ITEMS ADOPTED. Motion of Member Kelly was seconded by Member Smith
<br />to approve and adopt the consent agenda items as presented, with the exception of
<br />the removal of item VI1.A.
<br />Rollcall :
<br />Ayes: Kelly, Richards, Smith, Turner, Courtney
<br />*MINUTES OF THE SPECIAL MEETING OF OCTOBER 12 AND REGULAR MEETING OF OCTOBER 19,
<br />1987 APPROVED. Motion of Member Kelly was seconded by Member Smith for approval
<br />of the minutes of the Special Meeting of October 12 and Regular Meeting of
<br />October 19,. 1987.
<br />Motion carried on rollcall vote, five ayes.
<br />Mayor Courtney convened a joint HRA/Council meeting for the public hearing on the
<br />Parking Ramp Addition - West 51st Street (Agenda item 1II.A).
<br />PUBLIC HEARING CONDUCTED ON PARKING RAMP ADDITION (WEST 5iST STREET): PROJECT
<br />AUTHORIZED (IMPROVEMENT NO. P-PlB). Affidavits of Notice were presented by Clerk,
<br />approved and ordered placed on file: Gordon Hughes, Assistant Manager, recalled
<br />that on September 14, 1987 the Council approved the Final Development Plan of
<br />Cineplex Corporation for expansion of the Edina Theatre at 3911 West 50th Street.
<br />The approval was conditioned on the expansion of the 51st Street parking ramp by
<br />way of the addition of a third parking level containing 111 spaces.
<br />portion of the cost of the expansion may be financed by special assessments a
<br />project hearing was scheduled and notices were sent to all property owners in the
<br />50th and France commercial area who potentially could be assessed for the ramp
<br />cost.
<br />Associates, the City's ramp consultants. Staff also requested the consultants to
<br />estimate the cost of upgrading the easterly and southerly facade of the new level
<br />as well as the existing levels of the ramp.
<br />sides is estimated to cost $78,000 which would increase the overall project cost
<br />to $760,000. Staff recommended the inclusion of the facade upgrading as part of
<br />the project. As requested by the Council on September 14, 1987, staff has put.
<br />together several alternatives for the potential assessment which are the most
<br />feasible.
<br />assessment equal to 20% of ramp expansion costs. This is consistent with the
<br />original 50th & France assessment percentage as well as the policy followed
<br />recently with the Grandview ramp: Cineplex Assessment - $152,000, Tax Increment
<br />Financing $608,000, Total $760,000.
<br />special assessment with its expected parking demand.
<br />Barton-Aschman's parking analysis the theatre expansion will demand 33 additional
<br />In that a
<br />The estimated cost for the ramp expansion is $682,000 according to Walker &
<br />Adding a brick facade to these two
<br />Alternative #1 - Based upon Cineplex Odeon's offer to accept a special
<br />Alternative #2 - Attempts to tie Cineplex's
<br />According to
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<br />. r. parking spaces during matinees which occur coincidentally with peak commercial
<br />district parking demand. Thirty-three spaces equal 30% of the'ramp expansion.
<br />Therefore, Cineplex should bear 30% of the expansion cost: Cineplex Assessment -
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<br />$228 000, Tax Increment Financing $532,000, Total $760,000.
<br />ProvlGes that all commercial district properties should bear a portion of the ramp
<br />expansion costs.
<br />cost, the following alternatives are possible:
<br />Alternative #3 -. -
<br />Assuming that these properties should be assessed 20% of the
<br />- A B
<br />Cineplex (20%) $152,000 Cineplex (30%)- $228,000
<br />Commercial Area (20%) 152,000 Commercial Area (20%) 152,000
<br />Tax Increment 456.000 Tax Increment 380.000
<br />$760,000 $760,000
<br />Alternative #4 - Based on the concept that sufficient tax increments are now and
<br />will be generated to finance the parking ramp expansion in its entirety.
<br />tax increment financing cannot be used for maintenance purposes.
<br />presently budgets approximately $45,000 annually for ramp maintenance and
<br />electricity expenses at 50th & France. Under this alternative, the special
<br />assessment against Cineplex would be applied against the City's maintenance
<br />expenses rather than against the HRA's ramp construction costs.
<br />of assessment could still be based on the amounts suggested in Alternatives #1 and
<br />#2.
<br />stable revenue source for maintenance purposes.
<br />rate would result in the following annual payments:
<br />However,
<br />The City
<br />The total amount
<br />However, the term of the assessment could be lengthened to provide a more
<br />A 20-year term and 9% interest
<br />Assessment Amount Annual Pavment
<br />$152,000 $16,651.60
<br />228,000 24,977.00
<br />Staff recommendation is that Alternative #4 be selected based upon a total
<br />Cineplex assessment of $228,000 and that the project be approved, subject to an
<br />executed agreement from Cineplex Odeon Corporation consenting to the assessment
<br />and waiving right of appeal. In conclusion, Mr. Hughes noted that Peter Kofman,
<br />representing Cineplex Odeon Corporation, and Perry Anderson, representing the 50th
<br />and France Business & Professional Association, were present to answer questions.
<br />Commissioner/Member Kelly asked if the tax increment money would be needed for any
<br />other project in the district and if so could the district support both at the
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