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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