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HomeMy WebLinkAbout2018-10-16 City Council Regular Meeting Minutes MINUTES OF THE REGULAR MEETING OF THE EDINA CITY COUNCIL HELD AT CITY HALL OCTOBER 16, 2018 7:00 P.M. I. CALL TO ORDER Mayor Hovland called the meeting to order at 7:09 p.m. II. ROLLCALL Answering rollcall were Members Brindle, Fischer, Staunton, Stewart, and Mayor Hovland. Ill. MEETING AGENDA APPROVED Member Brindle made a motion, seconded by Member Fischer, approving the meeting agenda as presented. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. IV. COMMUNITY COMMENT Arnie Bigbee, 7621 Edinborough Way, thanked the Council for their openness to community engagement as it welcomed comment and encouraged public participation. Todd lliff. 4830 France Avenue, confirmed that Item V.N., Resolution No. 2018-102 Parking on France Avenue from Market Street to 47th Street, would include an opportunity for further discussion. V. CONSENT AGENDA ADOPTED AS REVISED Member Brindle made a motion, seconded by Member Stewart, approving the consent agenda as revised to remove Items V.N. Resolution No. 2018-102 Parking on France Avenue from Market Street to 471h Street; V.P. Resolution No. 2018-104 and Ordinance No. 2018-07 Final Rezoning, Final Development Plan and Site Improvement Plan Agreement, 3650 Hazelton Road; V.Q. Redevelopment Agreement with Pentagon Village, LLC; V.R. Resolution No. 2018-106 Establishing Parking Time Limits for Municipal Parking Facilities and Updating Employee Parking Policy; V.S. Resolution No. 2018-108 Authorizing Hennepin County Grant Application for 7200- 7250 France Avenue; and, V.T. Resolution No. 2018-109 Authorizing Grant Application to Tax Base Revitalization Account for 7200-7250 France Avenue as follows: V.A. Approve minutes of October 2, 2018, Work Session and October 2, 2018, Regular Council meeting V.B. Receive payment of the following for Pre-List Dated October 4, 2018, and consisting of 37 pages: General Fund $746,010.88, Pedestrian and Cyclist Safety $33,710.16, Working Capital Fund $11,796.25, PIR Construction Fund $331,475.25, Equipment Replacement Fund $40,922.71, Art Center Fund $4,289.34, Aquatic Center Fund $3,203.46, Golf Course Fund $36,515.21, Ice Arena Fund $7,607.97, Sports Dome Fund $158.48, Edinborough Park Fund $19,476.61, Centennial Lakes Park Fund $1,148.34, Liquor Fund $279,740.89, Utility Fund $357,455.83, Storm Sewer Fund $172,077.92, Risk Mgmt ISF $1,000.00, PSTF Agency Fund $5,242.77, HRA Administration $21,000.50, Centennial TIF District $945,477.95, Southdale 2 District $1,000.00, Grandview 2 TIF District $2,500.00, Payroll Fund $2,994.10 Total $3,024,804.62; Pre-List Dated October 11, 2018, And consisting of 40 pages: General Fund $572,261.65, Pedestrian and Cyclist $Safety 38,844.03, Working Capital Fund $55,632.32, PIR Construction Fund $313,069.51, Equipment Replacement Fund $23,072.03, Art Center Fund $259.84, Golf Dome Fund $1,320.78, Aquatic Center Fund $1,051.31, Golf Course Fund $5,337.57, Ice Arena Fund $12,881.24, Sports Dome Fund $995.94, Edinborough Park Fund $17,863.04, Centennial Lakes Park Fund $961.69, Liquor Fund $295,911.68, Utility Fund $710,798.87, Storm Sewer Fund $283,812.22, Risk Mgmt ISF Page 1 Minutes/Edina City Council/October 16, 2018 $563,937.87, PSTF Agency Fund $28,626.42, Centennial TIF District $16,579.50, Southdale 2 District $2,877.00, Grandview 2 TIF District $2,740.00 Total $2,948,834.51; And Per Credit Card transactions July 26-August 27, 2018, and consisting of 22 pages: General Fund 26,584.94, Working Capital Fund 955.08, Equipment Replacement Fund 217.46-, Art Center Fund 86.00, Aquatic Center Fund 393.35, Golf Course Fund 6,339.12, Ice Arena Fund 1,016.71, Sports Dome Fund 10.00, Edinborough Park Fund 927.1 I, Centennial Lakes Park Fund 3,358.99, Liquor Fund 1,926.07, Utility Fund 689.00, PSTF Agency Fund 1,366.21 Total $45,585.30 V.C. Approve Request for Purchase, awarding the bid to the recommended low bidder, one 2018 Dodge Caravan Unmarked Police Vehicle, Dodge of Burnsville, $23, 167.00 V.D. Approve Request for Purchase, awarding the bid to the recommended low bidder, 911 Phone Connection Backup, CenturyLink, $1,242.00/36 months V.E. Approve Request for Purchase, awarding the bid to the recommended low bidder, Braemar Master Plan Project Fencing, Town & Country Fence, $83,260.00 V.F. Approve Request for Purchase, awarding the bid to the recommended low bidder, Public Safety Communication Radios, Motorola Solutions, $25,005.50 V.G. Approve Public Improvement and Special Assessment Agreements V.H. Approve Traffic Safety Report of September 4, 2018 V.1. Approve Cooperative Agreement with Minnehaha Creek Watershed District for Pamela Park Stormwater Pond Maintenance V.J. Adopt Ordinance No. 2018-13 Amending City Code Regarding Property Maintenance V.K. Adopt Resolution No. 2018-96 Approving Hennepin County All-Hazard Mitigation Plan V.L. Adopt Resolution No. 2018-97 Setting Public Hearing for West 76th Approve Amendment to the Affordable Housing Policy V.M. Adopt Resolution 2018-98 Calling for Public Hearing on an Issue of Revenue Bonds by the City of Bethel on Behalf of Walker Assisted Living V N. Resolution No 2018 102 D....1.:.,g on C.,..,nce Avenue 1.orn Market Str et to to 471h V.O. Adopt Resolution No. 2018-105 Authorizing Hennepin County Grant Application for 4500 France Avenue Apartments V.P. Resolution No. 2018 104 and Ordinance No. 2018 07 Final Rezoning, Final Developm-e� Plan and Site improvement Prion Agreement, 36SO Ha-z—elft-o T oad V.Q. Redevelopment Agreement with Pentagon Village, LLC V.R. Resolution No. 2018 '06 Establishing Parking Time Limits for Municipal Parking Facilitie and Updating Employee Park ng Policy V.S. Resolution No. 2018 108 Authorizing Hennepin County Grant Application for 7200 France Avenue V.T. Resolution No. 2018 109 Authorizing Grant Application to Tax Base Revitalization. Account for 7700_7250 France Avenue Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. ITEMS REMOVED FROM THE CONSENT AGENDA V.N. RESOLUTION NO. 2018-102 PARKING ON FRANCE AVENUE FROM MARKET STREET TO 47TH STREET— TABLED Manager Neal outlined the proposed parking restriction and said he understood the Council's desire to remain status quo until the project was more complete at 50th and France. He suggested tabling consideration of this matter until November 7 to allow time for staff to draft a resolution retaining the parking restrictions until November 1, 2019. The Council shared safety concerns for residents with cars parked on France Avenue and the need for alterations once the project was complete and asked when the expanded north ramp would fully open. Public Works Director Olson replied that while there had been weather challenges, the north ramp should open October 23, 2018, and there should be sufficient parking once the ramp was open. Page 2 Minutes/Edina City Council/October 16, 2018 Member Brindle made a motion, seconded by Member Fischer, tabling consideration of Resolution No. 2018-102 Relating to Parking Restrictions on France Avenue from West 47th Street to West 48th Street and West 49th Street to Market Street until November 7, 2019. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. V.P. RESOLUTION NO. 2018-104 AND ORDINANCE NO. 2018-07 FINAL REZONING, FINAL DEVELOPMENT PLAN AND SITE IMPROVEMENT PLAN AGREEMENT, 3650 HAZELTON ROAD —ADOPTED The Council inquired if changes from preliminary zoning were significant enough to require further review. Director of Engineering Millner indicated staff did not feel the changes were significant, noting the proposed height and footprint were the same in addition to a reduction in the number of units to 19 as well as parking stalls which was an improvement. Member Brindle introduced and moved adoption of Resolution No. 2018-104 Approving Final Rezoning From PCD-3, Planned Commercial District to PUD-14, Planned Unit Development— 14, Including Final Development Plan for 3650 LLC and grant Second Reading adopting Ordinance No. 2018-7 Amending the Zoning Ordinance to Establish the PUD- 14, Planned Unit Development-14 Zoning District. Member Fischer seconded the motion. Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. V.Q. REDEVELOPMENT AGREEMENT WITH PENTAGON VILLAGE, LLC—APPROVED The Council requested the item be removed from the Consent Agenda to provide an opportunity for a recorded vote. Member Brindle made a motion, seconded by Member Fischer, approving the redevelopment agreement with Pentagon Village, LLC. Ayes: Brindle, Fischer, Stewart, Hovland Nay: Staunton Motion carried. V.R. RESOLUTION NO. 2018-106 ESTABLISHING PARKING TIME LIMITS FOR MUNICIPAL PARKING FACILITIES AND UPDATING EMPLOYEE PARKING POLICY—ADOPTED The Council asked why the item was brought forward at this time, how it addressed employee parking, and confirmed that parking permits were only sold to Edina-based businesses. Economic Development Manager Neuendorf explained the north ramp would open in a few days and provide 200 more stalls that would need signage as well as an updated parking policy with consistent enforcement mechanisms. He noted the policy would not change any parking fees but would outline short- and long-term parking within the ramp and establish premium permits for some employees. Member Brindle introduced and moved adoption of Resolution No. 2018-106 Establishing Parking Time Limits for Municipal Parking Facilities. Member Fischer seconded the motion. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. V.S. RESOLUTION NO. 2018-108 AUTHORIZING HENNEPIN COUNTY GRANT APPLICATION FOR 7200-7250 FRANCE AVENUE—ADOPTED Mr. Neal explained while the proposed redevelopment project would be considered at the November 7 meeting, this action would allow the opportunity to apply for a grant which was due November 1. He noted approval of the grant application would not ensure project approval and confirmed the opportunity to withdraw the application if Council chose. Mr. Neuendorf outlined the grant was not project specific and only valid for this cycle. He described the environmental and other studies and grant reporting obligation and how the application would be withdrawn if the project was not approved. The Council expressed concern about approving the grant application prior to project approval and confirmed any action would not imply project approval prior to proper review. The Council inquired about grant deadlines Page 3 Minutes/Edina City Council/October 16, 2018 for the Metropolitan Council and Hennepin County, contingencies already in place, and confirmed the City's credibility would not be damaged from the granting agency's perspective should the application be withdrawn. Member Stewart introduced and moved adoption of Resolution No. 2018-108 Authorizing Hennepin County Grant Application for 7200-7250 France Avenue. Member Brindle seconded the motion. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. V.T. RESOLUTION NO. 2018-109 AUTHORIZING GRANT APPLICATION TO TAX BASE REVITALIZATION ACCOUNT FOR 7200-7250 FRANCE AVENUE —ADOPTED Member Fischer introduced and moved adoption of Resolution No. 2018-109 Authorizing Grant Application for Tax Base Revitalization Account for 7200-7250 France Avenue. Member Brindle seconded the motion. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. VI. SPECIAL RECOGNITIONS AND PRESENTATIONS VI.A. PUBLIC HEALTH UPDATE — RECEIVED Community Health Administrator Brown outlined the City's public health role and introduced Bonnie Paulsen, Director at Bloomington Public Health, who provided an update regarding public health services through the annual contract with the City of Bloomington. She highlighted 2017 actions and thanked the Council for its support of youth health. She described current initiatives and announced two awards received from the US Department of Agriculture and the MN Department of Health in support of breastfeeding and commented on efforts surrounding the recent measles outbreak. The Council asked questions regarding support for those with Alzheimer's and high-risk home environment visits. Ms. Paulsen stated Richfield was working towards being a dementia-friendly city and would be offering training for Edina. She explained home visits included review of fall risks and connection to resources to allow people to age in place. VI.B. CITY CLERK DEB MANGEN—RECOGNIZED Mr. Neal announced that this was Clerk Mangen's last Council meeting as she was retiring at year-end. He outlined her career that began in July 1995 and included attendance at over 1,000 public meetings. He complimented Ms. Mangen on her work, noting she did her job better than any of her peers in the State. Mayor Hovland thanked Ms. Mangen for her professionalism and complimented her on conducting the most well-run elections in the State. He wished Ms. Mangen the best in retirement and presented an appreciation award. A round of applause was offered by the audience. Ms. Mangen said she would miss everyone and was blessed to work in Edina. VII. PUBLIC HEARINGS HELD —Affidavits of Notice presented and ordered placed on file. VII.A. AQUATIC VEGETATION, IMPROVEMENT NO. AQ-18, RESOLUTION NO. 2018-85 This item was considered following Item VII.B. VII.B. WEED MOWING IMPROVEMENT NO. WD-18, RESOLUTION NO. 2018-86 —ADOPTED Mayor Hovland noted this was a continuation of the public hearing from October 2, 2018, for Weed Mowing Improvement No. WD-18 and reconvened the public hearing at 7:51 p.m. Public Testimony Diane Thomas, 5218 Malibu Drive, addressed the Council. Page 4 Minutes/Edina City Council/October 16, 2018 Assistant Director Parks & Natural Resources Swenson shared documentation sent to the property owner outlining the mowing request, deadline for completion,and confirmed while the grass was mowed weed whipping was required near one tree. The Council thanked Ms. Thomas for her input and explained the intent of the assessment was for people who did not maintain their yards and at a minimum, confusion might have occurred in this case. Member Brindle made a motion, seconded by Member Stewart, to close the public hearing. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. The Council referred to the contested assessment on October 16 at 6620 Naomi Drive, noting while that address had multiple visits, both should be treated similarly. Mr. Swenson said that property was similar to 5218 Malibu Drive but included thistle that needed to be addressed. Member Brindle introduced and moved adoption of Resolution No. 2018-86, Levying Special Assessments for Improvement No. WD-18 Weed Mowing, with the exception of Gerald Arneson at 5218 Malibu Drive and Sandburg Rodahe at 6620 Naomi Drive. Member Fischer seconded the motion. The Council encouraged before and after photos for better documentation and thanked staff for their work. Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. VILA. AQUATIC VEGETATION, IMPROVEMENT NO. AQ-18, RESOLUTION NO. 2018-85 — ADOPTED Mayor Hovland noted this was a continuation of the public hearing from October 2, 2018,for Aquatic Vegetation, Improvement No. AQ-18, and reconvened the public hearing at 8:18 p.m. Public Testimony No one appeared. Member Staunton made a motion, seconded by Member Stewart, to close the public hearing. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. Member Staunton introduced and moved adoption of Resolution No. 2018-107, Levying Special Assessments for Public Improvements. Member Brindle seconded the motion. Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried VII.C. SOrH AND FRANCE MAINTENANCE DISTRICT, IMPROVEMENT NO. M-18, RESOLUTION NO. 2018-87—ADOPTED Mayor Hovland noted this was a continuation of the public hearing from October 2, 2018, for 50,h and France Maintenance District, Improvement No. M-18, and reconvened the public hearing at 8:19 p.m. Public Testimony No one appeared. Member Fischer made a motion, seconded by Member Brindle, to close the public hearing. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. Page 5 Minutes/Edina City Council/October 16, 2018 Member Stewart introduced and moved adoption of Resolution No. 2018-87, Levying Special Assessments for Public Improvements. Member Fischer seconded the motion. Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried VII.D. GRANDVIEW BUSINESS DISTRICT MAINTENANCE, IMPROVEMENT NO. G-18, RESOLUTION NO. 2018-88 —ADOPTED Mayor Hovland noted this was a continuation of the public hearing from October 2, 2018, for the Grandview Business District Maintenance, Improvement No. G-18, and reconvened the public hearing at 8:20 p.m. Public Testimony No one appeared. Member Fischer made a motion, seconded by Member Brindle, to continue public hearing. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. Member Fischer introduced and moved adoption of Resolution No. 2018-88, Levying Special Assessments for Public Improvements. Member Brindle seconded the motion. Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried VII.E. PARKLAWN AVENUE NEIGHBORHOOD ROADWAY RECONSTRUCTION, RESOLUTION NO. 2018-89—ADOPTED Mayor Hovland noted this was a continuation of the public hearing from October 2, 2018, for the Parklawn Avenue Neighborhood Roadway reconstruction and reconvened the public hearing at 8:21 p.m. Public Testimony No one appeared. Member Brindle made a motion, seconded by Member Stewart, to close the public hearing. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. Member Brindle introduced and moved adoption of Resolution No. 2018-89, Levying Special Assessments for Public Improvements. Member Fischer seconded the motion. Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried VII.F. COUNTRYSIDE G NEIGHBORHOOD ROADWAY RECONSTRUCTION, RESOLUTION NO. 2018-90 —ADOPTED Mayor Hovland noted this was a continuation of the public hearing from October 2, 2018, for the Countryside G Neighborhood Roadway reconstruction and reconvened the public hearing at 8:07 p.m. Public Testimony David Bremmer, 6008 Grove Circle, addressed the Council. Mr. Millner encouraged Mr. Bremmer to contact Public Works regarding maintenance options for the sidewalk. Member Fischer made a motion, seconded by Member Brindle, to close the public hearing. Page 6 Minutes/Edina City Council/October 16, 2018 Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. Member Brindle introduced and moved adoption of Resolution No. 2018-90, Levying Special Assessments for Public Improvements. Member Fischer seconded the motion. Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried VII.G. BIRCHCREST A AND COUNTRYSIDE B NEIGHBORHOOD ROADWAY RECONSTRUCTION, RESOLUTION NO. 2018-91 —ADOPTED Mayor Hovland noted this was a continuation of the public hearing from October 2, 2018, for the Birchcrest A and Countryside B neighborhood roadway reconstruction project and reconvened the public hearing at 8:27 p.m. Public Testimony Mary C. Young, 5201 W. 60th Street, addressed the Council. Tiffany Sanders, 5209 West 60th Street, addressed the Council. Brian Dooley, 5228 Maddox Lane, addressed the Council. Paula Heller, 5305 West 61 St Street, addressed the Council. Nancy Polomis, 6208 Hanson Road, addressed the Council. Nora Lund, 5325 W. 61 s, Street, addressed the Council. Daniel Johnson, 6220 Hanson Road, addressed the Council. Shokunthea Bentley, 6328 Valleyview Road, addressed the Council. Member Fischer made a motion, seconded by Member Brindle, to close the public hearing. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. The Council reviewed comments made during public testimony regarding the amount of proposed assessments as outlined in Statute and discussed how the process could include two mailings to better explain valuations and process. The Council commented on Ms. Polomis' objection on resident-maintained sidewalk and driveway integration, Ms. Heller's comments regarding costs and benefits versus assessments calculations, and how the assessment could not exceed special benefit. City Attorney Knutson confirmed the process was properly followed by Statute and noted appraisers determine the benefit increased by the amount of special assessment when conducted. The Council commented on inclusion of curb and gutter assessments in the Utility Fund versus individual property owners paying for street improvements and the potential for policy review. The Council discussed how property values reflected value of the community, confirmed periodic appraisals to ensure test samples, the understanding from property owners of value versus benefit, and how to explore transition and balance should a new process be implemented. The Council asked questions regarding the deferment process of the entire assessment amount for age and income and spoke about garbage truck traffic impacts to the streets and the possibility of organized hauling. The Council confirmed the period tests show standards were being met and agreed with the need to identify a fair way to address improvements. Member Fischer introduced and moved adoption of Resolution No. 2018-91, Levying Special Assessments for Public Improvements. Member Stewart seconded the motion. Page 7 Minutes/Edina City Council/October 16, 2018 Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried VII.H. CERTIFICATION OF DELINQUENT UTILITIES IMPROVEMENT NO. DU-18, RESOLUTION NO. 2018-99 —ADOPTED Assistant Finance Director Sawyer explained Minnesota Statute 444.075 allowed cities to place a charge against the owner, lessee, occupant, or all of them and certify unpaid charges to the county auditor with taxes against the property served for collection. The City had certified unpaid utility bills to the County for collection for many years, which required Council resolution prior to certification. He said since September notices sent, the total amount was $258,000 over 419 accounts. The Council commented on why water bills are not paid quarterly and result in certification as penalties then occur. Mayor Pro Tem Brindle opened the public hearing at 9:37 p.m. Public Testimony No one appeared. Member Fischer made a motion, seconded by Member Stewart, to close the public hearing. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. Member Fischer introduced and moved adoption of Resolution No. 2018-99 Authorizing the Certification of Delinquent Utility Charges to the Hennepin County Auditor. Member Stewart seconded the motion. Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried VIII. RESOLUTION NO. 2018-103: COMPREHENSIVE PLAN AMENDMENT, DENSITY ON THE OFFICE RESIDENTIAL DISTRICT FOR 4100 W. 76TH STREET—ADOPTED Community Development Director Teague explained the applicant's request for a Comprehensive Plan Amendment to increase density from 30 units per acre to 40 units per acre. He outlined primary issues and stated the proposed range was reasonable and recommended approval subject to findings. The Council confirmed the unanimous vote of the Planning Commission at the public hearing and that if the project was not approved or financed, it could revert the density for future buyers. Mr. Teague explained the action could be rescinded but the area would also be included with the entire west side as part of the Comprehensive Plan update. Applicant Presentation Aubrie Gould, Aeon, provided a project overview that included 80 units at AMI of 60% or less. She explained their non-profit housing status and shared their excitement about the site that provided transit and employment opportunities. Ms. Gould outlined the timeline for tax credits and architectural drawings with land use application in January. The Council inquired about the funding process and gap without the DEED funding and confirmed that the amount discussed at the recent HRA meeting was still sufficient. Ms. Gould said they hope to identify some tax credits in November and other County funding in February. Mayor Hovland opened the public hearing at 9:50 p.m. Page 8 Minutes/Edina City Council/October 16, 2018 Public Testimony No one appeared Member Staunton made a motion, seconded by Member Brindle, to close the public hearing. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. Member Stewart introduced and moved adoption of Resolution No. 2018-103 Approving a Comprehensive Plan Amendment Regarding Density at 4100 West 76th Street in the OR, Office Residential District. Member Brindle seconded the motion. The Council agreed the sketch plan review should be considered separately and that this would be a very nice project. The Council described how the bike lane could complement the larger west promenade, line up with Gallagher, and provide quiet access from one place to another. The Council commented on the importance of accessibility to the trail. Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. VII.J. 44TH AND FRANCE 2 TAX-INCREMENT FINANCING DISTRICT AND RESOLUTION NO. 2018- 100 ESTABLISHING 44TH AND FRANCE 2 TAX INCREMENT FINANCING DISTRICT — ADOPTED Mr. Neuendorf reviewed how the Westgate Commercial District was developed in 1905-1930s and was part of the of 2018 Small Area Plan. He explained the five active TIF districts and that three of the 52 major redevelopments since 2010 received money. Staff conducted a neighborhood sidewalk survey to review redevelopment potential in the entire district and while 22 buildings would qualify on their own for future TIF, the request now was for a 15-year renewal district only. Mr. Neuendorf commented on individual parking for these businesses with no real buy-in from current owners for any redevelopment at this time. He outlined the five recommended parcels in a renewable district of 15 years with two sub-standard buildings and projected tax capacity of $299,297. He stated it was reasonable to conclude that significant private investment would not occur with use of TIF and staff recommended approval of the district. AApplicant Ted Carlson, Orion Development, stated they were excited for this district to fulfill the vision for this site. Mayor Hovland opened the public hearing at 10:00 p.m. Public Testimony No one appeared Member Brindle made a motion, seconded by Member Stewart, to close the public hearing. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. Member Brindle introduced and moved adoption of Resolution No. 2018-100 Adopting a Modification to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area; and Establishing the 44th And France 2 Tax Increment Financing District Therein and Adopting a Tax Increment Financing Plan Therefor. Member Fischer seconded the motion. The Council commented on the size of the district and how this would be the first widely-available public parking in the area and the need for good signage. The Council acknowledged the importance of soil remediation and demolition and the optimal time to address the traffic porkchop that restricted free right-turns. The Council commented on the benefit of burying power lines, the shorter term of the district, and how the project met the but/for test. The Council asked questions regarding private parking and the need to ensure adequate parking Page 9 Minutes/Edina City Council/October Ib, 2018 and dedicated parking. Mr. Carlson said they owned the adjacent site and had proof of parking elsewhere in district. He indicated they plan to open May 2020 for business and rental units and could dedicate some limited parking for quick trips. The Council asked about paying into an environmental fund for remediation clean up, grants, and whether it was possible to restrict truck traffic on Sunnyside. Mr. Carlson pledged to apply for all available grants and stated they have secured $335,000 to date. Mr. Knutson advised it would be difficult to enforce truck traffic as it was included in the development agreement and outlined the need to access the site to build the project. The Council expressed reservations about geographic and temporal limitations on the district but was pleased with the possibility of other districts in order- to add future amenities such as a parking facility and community gathering space. The Council referred to the benefit of removing a vacant, blighted building and the difficult redevelopment proposition, feeling this was the best course of action that did not negatively affect school district financing. The Council noted assumptions would be made on future value which allowed for payoff sooner and confirmed the pay as you go scenario. Jay Lindgren, Dorsey & Whitney, explained the 15-year time period was based on the number of substandard buildings and legislation and was easier to qualify with this technique but still allowed time to consider the larger- district possibility. Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. Vlll. REPORTS/RECOMMENDATIONS VIII.A. 4500 FRANCE APARTMENTS TERM SHEET FOR TAX-INCREMENT FINANCING—APPROVED Mr. Neuendorf explained the proposed term sheet for the 4500 France Apartments included the same terms presented at the recent HRA meeting and pertained to the redevelopment of vacant buildings at the southwest corner of Sunnyside and France Avenue. He said the terms addressed the financial gap in the developer's pro forma and were sufficient to provide a market return to the developer while delivering many benefits to the community. Mr. Neuendorf confirmed the developer would bear the upfront financing risk and the maximum note of $2.3 million and interest would be paid and viewed as an incentive for reimbursement of eligible costs upon project completion. The project included many public realm improvements that would occur including removal of vacant buildings, buried power lines, new construction at a limited height, addressing contamination, shared public parking, and outdoor plaza space. The Council asked if buy-in for affordable housing was included in the term sheet and how the amount of subsidy was appropriate. Mr. Neuendorf said that was not included as an eligible cost but instead included three units of affordable and buy-out for the remaining 1.5-2 units within the realm of the site plan and zoning approvals. He noted the HRA had a right-of-first-refusal for those units should the project be sold or condos and could be reviewed in Year 14. Nick Anhut, Ehlers and Associates, said they analyzed the developer's proforma, project and acquisition costs, and comparables, and were comfortable the project could be defended as rents would not sustain the project absent assistance provided. The Council thanked Mr.Anhut for his input and agreed this was a very good project and that the risk matched the return criteria. Member Brindle made a motion, seconded by Member Staunton, to approve the proposed Term Sheet for Tax Increment Financing, 4500 France Apartments. Ayes: Brindle, Staunton, Stewart, Hovland Motion carried. VIII.B. SKETCH PLAN, 4412 VALLEY VIEW ROAD — REVIEWED Mr. Teague outlined the sketch plan request to remodel/redevelop the site at 4412 Valley View Road for a New Horizon daycare. The applicant would significantly remodel the existing retail and office building for a proposed Page 10 Minutes/Edina City Council/October 16, 2018 9,600 square feet. The hip roof would be changed to a flat roof and a play area would be located on the roof with an elevator to move staff and children to the play area. The site was currently zoned PCD-I, Planned Commercial District. Day Cares were permitted uses and included a parking stall variance from 27 spaces to 22 stalls, and building height variance from 24 feet to 41 feet. Applicant Presentation Peter Hilger, Rylar LLC, described small lot shape challenges with very little green space and the proposed roof top play area with the east roof for mechanicals. He stated an easement access had to be retained and the height limitation request was for the elevator override. He said this would be a fully private investment for acquired property, was a higher and better use for the site, noting New Horizon had been in the area for many years. The Council confirmed that rooftop play areas and age limits worked well and were safe. The Council indicated the proposed plan made sense and could be viewed as a hardship with the easement on the neighboring property but requested proof of use and location with the Small Area Plan. The Council appreciated the increased greenspace and asked questions about pervious surfaces for rainfall onto the roof, relocation of the former businesses, soil mediation, and any necessary bump ups. VIII.C. 2018 WATER SUPPLY PLAN— REVIEWED Environmental Services Manager Bintner stated the Council approved a request for purchase for a water system plan to support the water utility and its comprehensive planning requirements. The Water Supply Plan replaced the Water Distribution System Analysis and Water Emergency and Conservation Plans and met the requirements from the Minnesota DNR and Metropolitan Council for 2016-2018 Minnesota Water Supply Planning. Mr. Bintner said the Water Supply Plan was a tool to identify, plan for, and address utility trends and issues in water supply, treatment, distribution, and growth that affected the utility and that Edina's supply, treatment, storage, and distribution were in good condition and provided its core services reasonably well for its age and era of construction while minimizing cost and risk. Chad Katzenberger. SEH, shared background, technical basis, recommendations, key trends, next steps of water use trends, population growth, and declining water use that resulted in a 38% reduction in per capital water use. He spoke about active and passive conservation and the need for a future Water Treatment Plant and outlined improvements such as upsized water mains to increase redundancy and resiliency and doubling storage tanks. The Council thanked staff for their work asked questions regarding ground water sensors for irrigation systems to reduce water waste and reasons for cloudy water instances and risk mitigation strategies. The Council also inquired about impacts to aquifers and predicted decline to ensure sustainability, reviewed the importance of water age and emergency preparedness, and spoke about costs and system maintenance. VIII.D. REQUEST FOR PURCHASE: ENGINEERING SERVICES FOR WATER TREATMENT PLANT 5 — APPROVED Mr. Millner provided an update on Water Treatment Plant 5 and requested approval for additional professional services. He said the bidding documents were 90%completed, solicitation of bids was near, and outlined previous actions on this topic. He stated in April, staff retained Snow Kreilich Architects and met with stakeholders to share the architectural concept of the plant that reduced the main level footprint but did not address access doors to the chemical room along France Avenue. He said additional landscaping and modernization was needed as well as trunk capacity improvements for east-west flow, tapping availability for storage and water age, and that Dublin Reservoir could address multiple benefits. The Council asked questions regarding no proposed plant at Southdale and why the request was occurring now and not last year. Mr. Bitner explained the supply plan was completed and resulted in this proposal as it informed LIS of the needs and could also overlap future needs. Member Brindle made a motion, seconded by Member Staunton, to approve additional professional services to create a cost estimate for on the Snow Kreilich Architectural Concept and to study the Dublin Reservoir Site. Ayes: Brindle, Staunton, Stewart, Hovland Motion carried. Page I I Minutes/Edina City Council/October 16, 2018 VIII.E. RESOLUTION 2018-101 —ACCEPTING VARIOUS GRANTS AND DONATIONS—ADOPTED Mayor Hovland explained that in order to comply with State Statutes; all donations to the City must be adopted by Resolution and approved by four favorable votes of the Council accepting the donations. Member Staunton introduced and moved adoption of Resolution No. 2018-101 accepting various grants and donations. Member Stewart seconded the motion. Rollcall: Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. IX. CORRESPONDENCE AND PETITIONS IX.A. CORRESPONDENCE - Received Mayor Hovland acknowledged the Council's receipt of various correspondence. IX.B. MINUTES— Received I. COMMUNITY HEALTH COMMISSION,JULY 9 AND AUGUST 13, 2018 2. PARKS AND RECREATION COMMISSION, SEPTEMBER 4, 2018 Informational; no action required. X. AVIATION NOISE UPDATE — Received XI. MAYOR AND COUNCIL COMMENTS — Received XII. MANAGER'S COMMENTS — Received XII.A. COMMUNITY COMMENT FOLLOW-UP— Received X111. SCHEDULE OF MEETINGS, EVENTS AND DATES AS OF OCTOBER 16, 2018 — Received XIV. ADJOURNMENT �. There being no further business on the Council Agenda, Mayor Hovland declared the meeting adjourned at 12:23 a.m. Respectfully submitted, Debr City Clerk Minutes approved by Edina City Council, November 7, 2018. James B. ovland, Mayor Video Copy of the October 16, 2018, meeting available. Page 12