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HomeMy WebLinkAbout19910610_special110 l!mmrEs OF THE SPECIAL MEETING OF THE ED= CITY COUNCIL HELD AT CITY HdLL JlRiIE 10, 1991 A special meeting of the Edina City Council was held on June 10, 1991, at 5:OO p.m. for the purpose of discussing and considering action on: 1) Local Option Sales Tax, and 2) Grandview Redevelopment Area. ROLTXAU Answering rollcall were Members Kelly, Paulus, Rice, Smith and Mayor Richards LOCAL OmION SALES !FAX DISCUSSED: COWJ!IHUKD TO 06/17/91 that the local option sales tax had been discussed at the June 3, 1991, meeting and the Council had asked for additional information. facts relating to the subject: Manager Rosland recalled He presented the following - - 1989 sales tax collected from businesses in Edina: $29.3 million - Estimated one-half cent sales tax: - - - - In 1993, HACA is raised to $844,076 $2.4 million from City of Edina of which approximately 50% would be paid by Edina residents $29.2 million Loss to Hennepin County if the one-half cent sales tax is not approved: Edina's share if the County was to replace loss by levy: $2.5 million In 1992, City of Edina comes back on formula for HACA in the amount of $242,548 Mayor Richards said the Council had three options: 1) Do nothing, 2) Adopt a resolution in opposition, or 3) Adopt a resolution of approval. not support any kind of resolution that would give a signal to raise taxes. Instead, the County should be looking at cutting spending. Member Kelly commented that she would favor the one-half cent sales tax because, philosophically, she believed the budget should not be funded from property taxes alone which are at the limit. Further, that Edina residents will be losers if the County cuts services. He said he would I Member Paulus said she was concerned that none of the Edina retailers had contacted the Council or staff about the sales tax increase. Member Rice said he was confused about how this would affect Edina, but that if taxes have to be raised he would just as soon see it come from the sales tax. Member Smith asked what programs would get cut by the County. said that he had met with Commissioners Keefe and Johnson who had agreed that this was poor legislation. However, it the County does not vote for the one-half cent sales tax and does not cut any programs, the County will have to levy for what they will lose. Manager Rosland At the present time no programs are proposed to be cut. After further discussion on how this would impact the citizens of Edina, Member Smith made a motion that a resolution be drafted for Council action on June 17, 1991, urging the Hexmepin County Board to not adopt the one-half cent sales tax because no projections have been made regarding the impact of program cuts if not adopted, and because of the uncertahty of the impact on the residents of Edina. Motion was seconded by Member Rice. Ayes: Paulus, Rice, Smith, Richards Nays: Kelly Motion carried. REDEVELC)PHENT OF TBE GRANDVIEW AREA DISCUSSED background information provided by Gordon Hughes,-HRA Director, in his memorandum of June 3, 1991, giving a chronology of events from April, 1984 to the present time regarding the Grandview Redevelopment Area. Mayor Richards referred to He observed that staff has 6/10/91 . continued to receive requests from various asked what the City intends to do with the indicated that, in order to give direction to discuss and develop Council policy regarding response to proposals for redevelopment of the subject area. Issues for discussion included the following: 111 people, including developers, who have Grandview area. Mayor Richards to staff, this meeting has been called 1) Land Use - Should the land use designations in Grandview be changed? Presently the Kunz/Lewis property is zoned Industrial; the Comprehensive Plan shows the property as Industrial; and the Grandview Redevelopment Plan shows the property as Multi-Residential. Public Financial Participation - private property redevelopment at Grandview? 2) What role should the City play in The City has completed these initial public improvements in the area: Link Road reconstruction and signalization Closure of Vernon/Edina/Sherwood intersection Consolidation of Jerry's/Norwest Bank/Union Oil access Vacation of Summit Avenue Demolition of Public Works garage and construction of new Parking Ramp/Public Works garage Future public improvements depend largely upon future private redevelopment and would include: Upgrade of Interlachennernon intersection and widening of bridge over railroad tracks Relocation of Arcadia Avenue/50th Street through Regis property The principal private redevelopment issue at present continues to be the redevelopment of Kunz/Lewis, Wave Car Wash and School Bus Garage properties. If Regis relocates, there could be a similar redevelopment interest for that site. Alternatives for public participation at Grandview were also reviewed and considered as follows: 1. 2. 3. 4. 5. 6. 7. 8. Acquire land without immediate resale opportunity and issue a request for proposals to development community.' Acquire land and write down cost for immediate resale to a known developer for commercial development pursuant to a negotiated development agreement. Acquire land and write down cost for immediate resale to known developer for residential development pursuant to a negotiated development agreement. Provide subsidy for School Bus Garage relocation. Undertake and fund by way of Tax Increment Financing all offsite/utility work in area. Prepare illustrative development plan for area which would schematically show a hypothetical development of the majority properties. Unilateral rezoning of properties. Traditional role (react to development proposals/rezoni.ng requests). Following considerable discussion and debating of these issues and alternatives, the Council Members agreed on the following concerning the Grandview area: 1. To review and consider potential public uses calling for public participation, exclusive of the School property. i) ii) To be pro-active if a public use can be identified. If a public use cannot be identified, to let the property redevelop in the traditional sense with no public financial participation. 6/10/91 2. Review the regulatory tools that are currently in place that would control what happens in the Grandview area. Eliminate any inconsistency as to existing zoning/land use. any type of land use that may be proposed (i.e. commercial, industrial, residential or retail) with no public financial assistance. 3. To consider Staff.was directed to prepare reports on the above items for consideration by the Council at an upcoming regular Council Meeting. Mayor Richards declared the special meeting adjourned at 7:OO p.m. %A*U City Clerk