HomeMy WebLinkAbout2023-04-18 City Council Meeting MinutesPage 1
MINUTES
OF THE REGULAR MEETING OF THE
EDINA CITY COUNCIL
APRIL 18, 2023
7:00 P.M.
I. CALL TO ORDER
Mayor Hovland called the meeting to order at 7:03 p.m. then shared the procedure for public hearing and
community comment.
II. ROLLCALL
Answering rollcall were Members Agnew, Jackson, Pierce, Risser, Hovland.
Absent: None.
III. PLEDGE OF ALLEGIANCE
IV. MEETING AGENDA APPROVED AS PRESENTED
Member Jackson made a motion, seconded by Member Agnew, to approve the meeting agenda
as presented.
Ayes: Agnew, Jackson, Pierce, Risser, Hovland
Motion carried.
V. COMMUNITY COMMENT
Andy Brown, 5512 Park Place, shared concerns about the proposed takeover of Fairview Southdale Hospital
by Sanford and requested the City petition the City Attorney to instead offer merging with Mayo Clinic
instead as Sandford had too much debt. He said this action would have tremendous economic impact in the
community and shared concerns regarding future service levels such as ECO truck and funding and requested
the Council and City leadership speak to this issue.
Janey Westin, 6136 Brookview Avenue, shared copies of City Code Chapter 36 Article III Planned
Commercial District 36-612 regarding conditional uses that had been granted for 4404 Valley View Road,
The View 44 Apartments, and City Flats development on Kellogg and Valley View Road. She said these areas
were still zoned PCD-1 Commercial and not supposed to have residential uses at the basement or first level.
She said these uses were not allowed anywhere in City Code and asked why the properties were not zoned
more appropriately and stated these concerns needed to be addressed before construction on the former
Bruley site occurred.
V.A. CITY MANAGER’S RESPONSE TO COMMUNITY COMMENTS
Manager Neal responded to Community Comments at the last meeting.
VI. CONSENT AGENDA ADOPTED AS AMENDED
Member Pierce made a motion, seconded by Member Jackson, approving the consent agenda
as amended, removing VI.A., Minutes of the Worksession and Regular Meeting of April 4, 2023:
VI.A. Minutes of the Worksession and Regular Meeting of April 4, 2023
VI.B. Approve Claims for Payment for Check Register Claims Pre-List dated March 31, 2023,
totaling $2,132,958.17 and Pre-List dated April 7, 2023, totaling $1,664,471.99
VI.C. Request for Purchase; License Plate Readers, awarding the bid to the recommended
low bidder, Flock, $43,500
VI.D. Approve 2023 ARPA Grant Agreement Contracts
VI.E. Approve Public Participation Plan for Carryout Bag Ordinance Proposal
VI.F. Request for Purchase; To Enroll the City in Xcel’s Energy Fleet Electrification Advisory
Program, awarding the bid to the recommended low bidder, Xcel Energy, $90,000
Minutes/Edina City Council/April 18, 2023
Page 2
VI.G. Request for Purchase; Change Order: Citywide Facilities Fire Alarm and Sprinkler
Services, awarding the bid to the recommended low bidder, LVC Companies, $30,550
VI.H. Request for Purchase; Painting the Edina Aquatic Center Pools, awarding the bid to the
recommended low bidder, Paintball, LLC, $54,935
VI.I. Request for Purchase; Braemar Park Courtney Fields Planning Services, awarding the
bid to the recommended low bidder, WSB & Associates, $158,700
VI.J. Request for Purchase; Braemar Park Trail and Natural Resources Planning Services,
awarding the bid to the recommended low bidder, SRF Consulting Group, Inc.,
$308,868
VI.K. Request for Purchase; 2023 Commodities Quotes, awarding the bid to the
recommended low bidder, Martin Marietta Materials, $3,775.95
Ayes: Agnew, Jackson, Pierce, Risser, Hovland
Motion carried.
ITEMS REMOVED FROM CONSENT AGENDA
VI.A. MINUTES OF THE WORKSESSION AND REGULAR MEETING OF APRIL 4, 2023 –
APPROVED AS AMENDED
Council Member Risser indicated a concern regarding the accuracy of the April 4 Work Session
Minutes. Member Risser said the minutes indicated that Assistant Manager Schaefer said “Edina is the only
City to duplicate public hearings” and that is not accurate. Assistant Manager Schaefer indicated that she
misspoke as she was introducing the Planning Commission’s topic. However, the minutes are accurate
because Assistant Manager Schaefer did say that “I think we are the only City to duplicate public hearings”
as she introduced the presentation from the Planning Commission.
Mr. Neal stated the standard for minutes was to include what was actually stated and that this clarification
would be included in the record and should address any concerns regarding inaccuracies.
Council noted a correction was needed on Page 7 of the April 4 regular meeting minutes that Member Risser
voted against Item IX.C. Resolution No. 2023-16; Subdivision and Development Contract for 4404 Valley
View Road.
Member Risser made a motion, seconded by Member Pierce, to amend Item IX.C. Resolution
No. 2023-16; Subdivision and Development Contract for 4404 Valley View Road as stated.
Ayes: Agnew, Jackson, Pierce, Risser, Hovland
Motion carried.
Member Risser made a motion, seconded by Member Pierce, to approve the amended minutes
of April 4, 2023, Regular Meeting as corrected.
Ayes: Agnew, Jackson, Pierce, Risser, Hovland
Motion carried.
VII. SPECIAL RECOGNITIONS AND PRESENTATIONS
VII.A. EAST EDINA HOUSING FOUNDATION REPORT – RECEIVED
East Edina Housing Foundation President Ann Swenson shared the Foundation’s history created 40 years
ago to assist with affordable housing. She shared their non-profit status with a board of directors appointed
by the HRA to provide original mortgages that accrued funds to be used for second mortgages. She shared
backgrounds of all board members that included specific skillsets and said they supported the community
with loans and second mortgages for the Come Home to Edina program. Ms. Swenson shared how they
purchased a large property in 2018 on 70th and Cahill that resulted in 62 new family units and their work to
provide senior housing options through The 4040 senior housing project that provided 118 units for seniors.
She spoke about the Come Home to Edina WHLTH program and the goal of the Race and Equity Task
Force to provide funding assistance for first generation homebuyers then spoke about how they served as
policy advisors for the City for affordable housing. She stated they were a unique organization that supported
City policy and initiatives and were still supporting affordable housing after 40 years.
Minutes/Edina City Council/April 18, 2023
Page 3
The Council thanked the Foundation then asked questions and provided feedback.
VII.B. 2022 TRAFFIC SAFETY SUMMARY REPORT – RECEIVED
Traffic Safety Coordinator Bauler shared the 2022 traffic safety requests, statistics, and trends. He outlined
the process to submit a request which included review by the Traffic Safety Committee, Transportation
Commission, and Council consideration. He outlined the categories which included parking and signage,
intersection control, traffic calming, pedestrian safety, and others then outlined the year’s requests in detail.
He shared how requests were geolocated which allowed for data collection on specific areas then shared
trends that showed the increase in requests in the spring were likely due to returning to pre-pandemic traffic
volumes, summer requests focused on the Grandview and West 50th and France areas, and that parking and
signage requests were consistent throughout the year.
The Council asked questions and provided feedback.
VII.C. ARBOR DAY 2023 – PROCLAIMED
Member Jackson made a motion, seconded by Member Agnew, to proclaim April 28, 2023, as
Arbor Day in the City of Edina.
Ayes: Agnew, Jackson, Pierce, Risser, Hovland
Motion carried.
City Forester Overholt accepted the proclamation and invited the public to the Arbor Day celebration on
April 28 at Rosland Park where City staff and volunteers would be planting 50 new trees.
The Council asked questions and provided feedback.
VIII. REPORTS/RECOMMENDATIONS
VIII.A. RESOLUTION NO. 2023-30; ACCEPTING DONATIONS – ADOPTED
Member Agnew introduced and moved adoption of Resolution No. 2023-30, accepting
donations. Seconded by Member Pierce.
Rollcall:
Ayes: Agnew, Jackson, Pierce, Risser, Hovland
Motion carried.
VIII.B. NEW ON-SALE INTOXICATING AND SUNDAY SALE LIQUOR LICENSES FOR THE
LYNHALL EDINA, LLC, DBA THE LYNHALL NO. 3945 – APPROVED
Clerk Allision stated The Lynhall No. 3945 was located at 3945 Market Street and was currently licensed
for On-Sale Wine and 3.2 Percent Malt Liquor. The applicant had applied for an On-Sale Intoxicating and
Sunday Sale Liquor licenses which allowed for the sale and service of all liquor types unlike their current
licenses. The Lynhall was also recently approved for a sidewalk café permit. Staff reviewed the application
and found it complied with Code requirements. A background investigation was completed by the Police
Department and was successful and the applicant had completed the required employee alcohol awareness
training. She noted no comments were received during the public hearing and recommended approval.
Member Jackson made a motion, seconded by Member Pierce, to approve new On-Sale
Intoxicating and Sunday Sale Liquor licenses for The Lynhall Edina, LLC, dba The Lynhall No.
3945.
Ayes: Agnew, Jackson, Pierce, Risser, Hovland
Motion carried.
VIII.C. NEW ON-SALE WINE LICENSE AND ON-SALE 3.2 PERCENT MALT LIQUOR LICENSE FOR
DELEO BROTHERS PIZZA, LLC – TABLED
Mr. Neal stated the applicant, DeLeo Brothers Pizza, LLC, located inside Southdale Mall at 1705 Southdale
Center, had applied for an On-Sale Wine license and an On-Sale 3.2 Percent Malt Liquor license that was
denied because in 2021, the owner continued to display his liquor license after it was expired and not
Minutes/Edina City Council/April 18, 2023
Page 4
renewed and sold alcohol to plain clothes officer without a liquor license. He said the applicant had requested
due process regarding denial of the license and recommended a hearing be held at the next Council meeting
to allow staff to add context for the denial and the applicant the opportunity to respond.
Member Jackson made a motion, seconded by Member Agnew, to table consideration of denial
of new On-Sale Wine license and On-Sale 3.2 Percent Malt Liquor license for DeLeo Brothers
Pizza, LLC, to allow for a hearing on May 2, 2023.
Ayes: Agnew, Jackson, Pierce, Risser, Hovland
Motion carried.
VIII.D. RESOLUTION NO. 2023-25; ESTABLISHING THE 72ND AND FRANCE 2 TAX INCREMENT
FINANCING DISTRICT – ADOPTED
Economic Development Manager Neuendorf stated this item pertained to the use of Tax Increment
Financing to support redevelopment of 5-acres of vacant land located along the France Avenue commercial
corridor. The resolution would establish the TIF District and adopt the TIF Plan for spending new property
taxes collected within the boundaries of the District. A private developer proposed to redevelop the site
at 7200-7250 France Avenue with two new buildings and reconstruct the property in accordance with the
PUD zoning and in a manner that delivered many benefits to the general public. The public benefits would
not be possible without the use of tax increment financing. He said the TIF Plan was prepared by the City’s
financial advisors with review by the City’s special counsel for TIF redevelopment matters and the Edina
Housing and Redevelopment Authority approved this TIF Plan on March 23, 2023. A public hearing was held
on April 4, 2023 with additional public input collected online. He summarized the proposed TIF Plan in detail
and noted for 10 years the properties had been stagnant and values unchanged with blighted, unsafe buildings
that resulted in numerous police calls. He shared history on past projects in the City and amount of TIF
provided and noted most projects were privately funded but when TIF was used was justified for public
benefit. Mr. Neuendorf outlined the projected tax capacity of $2,048,974 with a budget of $34 million that
would likely result in an apartment complex or hotel which would include affordable housing that could be
pool for other affordable projects. He shared the included public elements such as a permanent easement
and potential for a pedestrian underpass then noted there were no other plans for a north/south roadway
and that adequate taxes would be generated to pay down the TIF note.
The Council asked questions and provided feedback.
Jay Lindgren, Dorsey and Whitney, confirmed if approved the Council retained discretion on land use in
Phase II and stated the TIF agreement was clear that no approvals had yet occurred for Phase II. He said
the agreement also referred to the proposed use of housing or a hotel and if another use was proposed an
amendment to the agreement would be required.
City Attorney Kendall said the PUD was already approved for the site and incorporated the PCD zoning
which was typical zoning analysis and would be permitted in the PUD. He said the TIF agreement would still
require all City approvals be granted before the TIF note for Phase II was available.
Community Development Director Teague clarified the uses contemplated and approved were consistent
with the office/residential designation within the Comprehensive Plan and included limited retail and office
so no Comprehensive Plan amendment would be required.
Nick Anhut, Ehlers and Associates, confirmed any proposed pedestrian underpass was a qualified expense
subject to public proceedings and would be an approved use of TIF for public infrastructure. Mr. Neuendorf
added use of any TIF funds for an underpass would be required to be used within five years.
Director of Engineering Millner stated the City would take a lead position in the event of a pedestrian
underpass but would partner with Hennepin County in the project and noted they were already aware of
this possibility.
Minutes/Edina City Council/April 18, 2023
Page 5
Member Jackson introduced and moved adoption of Resolution No. 2023-25, establishing the
72nd and France 2 Tax Increment Financing District. Member Pierce seconded the motion.
Roll call:
Ayes: Agnew, Jackson, Pierce, Hovland
Nays: Risser
Motion carried.
VIII.E. TAX INCREMENT FINANCING REDEVELOPMENT AGREEMENT WITH 7250 FRANCE
GROUP, LLC – APPROVED
Mr. Neuendorf stated this item pertained to the potential use of Tax Increment Financing to provide financial
support so that the developer could construct the private and public improvements at 7200 and 7250 France
Avenue. A Redevelopment Agreement had been prepared based on the Term Sheet reviewed and approved
by the HRA on February 16, 2023. He said the developer proposed $162 million in investment for public
and private improvements along France Avenue and TIF was requested to cover the $7.55 million gap. He
said the site qualified for TIF and the project included $10 million in costs to create public benefit. He said
the redeveloped modern facilities would create jobs and add vitality to the Greater Southdale area with a
north/south road and bike/pedestrian trail between Gallagher and 72nd, sidewalks as recommended in
Southdale Plan, and future Metro Transit bus stops. He spoke about streetscaping and public outdoor spaces
then shared the operating pro forma in detail and confirmed the ability to claw back TIF funding if not met.
He stated all risk was with the developer then outlined the proposed timeline with Phase I to being summer
2023 and Phase II in 2025. He shared agreement details with safeguards in place to reimburse the developer
up to $7.55 million in direct costs plus market interest.
The Council asked questions and provided feedback.
Member Jackson made a motion, seconded by Member Pierce, to Approve Tax Increment
Financing Redevelopment Agreement With 7250 France Group, LLC as presented.
Ted Carlson, Orion Investments, explained the stormwater design by Confluence Architects was guided by
the Nine Mile Creek Watershed which meant water would be treated and moved downstream and would
be in complete compliance with their guidelines. He said the area would include native plants to filter
stormwater and would be populated dependent on weather then added their intent was to preserve as many
trees as possible for neighborhood screening to the west of the project.
Ayes: Agnew, Jackson, Pierce, Hovland
Nays: Risser
Motion carried.
VIII.F. ORDINANCE NO. 2023-04; AMENDING CITY CODE CHAPTER 2, SETTING WATER FEE
FOR 2023 – ADOPTED
Mr. Neal stated on December 20, 2022, Council adopted Ordinance No. 2022-20, which set the schedule
of fees and charges for 2023. The schedule of fees included changes to Chapter 28 - Utilities to implement
recommendations from the utility rate study initiated by the City and conducted by the City's financial
advisor, Ehlers. The changes were intended to meet the goals of promoting water conservation, pay for
reinvestment in the aging utility system and expanding system capacity, and make water and sewer more
affordable for lower volume consumers. The rate study included setting a new multifamily water fee of
$3.62 for all water consumption; however, this fee was erroneously missed from Ordinance 2022-20. By
approving Ordinance 2023-04, multifamily properties would be charged $3.62 per 1,000 gallons of water
consumed instead of paying based on the 2022-tiered rate structure. The rate study also recommended all
property types to be charged the same rate structure for sanitary sewer, which was based upon water usage.
It was the lesser of the winter quarter (November 1 to March 1) or actual usage, but no less than the new
minimum of 8,000 gallons, with the fee to be $6.86 per 1,000 gallons of water consumed.
The Council asked questions and provided feedback.
Minutes/Edina City Council/April 18, 2023
Page 6
Finance Director McAndrews clarified State law required tiered system for multi-family had to be per unit
and confirmed this charging was possible within the current software. She said staff would review data after
the first year but noted in the previous structure units were charged on a per unit basis and rarely did the
City charge beyond year 1 and was ultimately a flat rate charge.
Member Agnew moved to grant Second Reading adopting Ordinance No. 2023-04 amending
Chapter 2 of the Edina City Code, Section 724 Section A Setting the Multi-Family Water Fee
for 2023. Member Jackson seconded the motion.
Roll call:
Ayes: Agnew, Jackson, Pierce, Risser, Hovland
Motion carried.
VIII.G. RESOLUTION NO. 2023-20; CERTIFICATE OF APPROPRIATENESS APPEAL, 4630 DREXEL
AVENUE – ADOPTED
Assistant City Planner Bodeker stated Scott Busyn, the applicant, was appealing denial of an amended COA
by the HPC. The proposed COA amendment was for approval of the rebuilt chimney (as the chimney was
built today) without the previously approved stone detailing. The HPC heard the amendment request at
their January 9, 2023, meeting and denied the amendment. The public hearing comments closed on April 10
and an option for upholding the appeal and approving the request was included. The original certificate of
appropriateness was approved September 8, 2020, and at the time the chimney was to remain and was
therefore not discussed by the HPC but during construction it was discovered the chimney was not stable
and needed to be removed. She said the HPC reviewed the amendment in June 2022 and approved building
materials and reconstruction without the exterior gas fireplace insert and with stucco and stone fireplace
surround to match the original structure. She stated upon inspection the lack of material detail was
discovered and the applicant sought an amendment without the stone detailing, which was denied by the
HPC.
The Council asked questions and provided feedback.
Mr. Kendall confirmed the plan of treatment procedure for construction in the district and standards for
mass, sizing, etc., and stated the plan of treatment still applied for maintaining the general historic character
of the entire district and just because the chimney was no longer a contributing resource did not mean it
was no longer subject to plan of treatment and still required view by the HPC.
Member Jackson introduced and moved adoption of Resolution No. 2023-20 to uphold the
HPC recommendation denying an amended certificate of appropriateness request to approve
the rebuilt chimney without the previously approved stone detailing at 4630 Drexel Avenue.
Member Risser seconded the motion.
Roll call:
Ayes: Agnew, Jackson, Pierce, Risser
Nays: Hovland
Council took a short recess at 9:05 p.m.
VIII.H. SKETCH PLAN FOR 7235 FRANCE AVENUE – REVIEWED
Mr. Teague said the City Council was asked to consider a sketch plan review from Enclave Companies for
redevelopment of the Macy’s Furniture store site at 7235 France Avenue. The proposal was to tear down
the existing structure and construct two 150,000-square foot office buildings (10 and 11 stories) on France
Avenue connected by skyway to two 7-story multifamily residential buildings, 230 units in each building, on
the east side of the site adjacent to the Promenade. He said the project would include 10% affordable
housing units and would require rezoning and an EAW due to project size. He noted the building height of
the proposed office buildings were above the 84-foot height guidelines at 150 feet and if allowed should be
stepped in further.
Minutes/Edina City Council/April 18, 2023
Page 7
Patrick Brama, Enclave, shared more about Enclave and thanked staff for the process to provide developers
feedback to refine their vision and direction. He said they served as a multi-faceted development firm and
would be the property manager and partial owner with a vested interest in achieving City goals which
resulted in better outcomes and partnerships. He spoke about the assets nearby and their intent to create
more engagement with the community and access to those assets.
Nate Enger, ESG Architects, shared his history with the challenging site then spoke about design experience
guidelines similar to the 7250 France site. He shared their goal to build upon existing assets, improve access,
and create walkability within a human-scaled project. He said the four building project would be
architecturally varied with mixed-uses and be family friendly and incorporate greenery. He outlined the
podium projects with portions dedicated to parking and how they intended to break smaller blocks into grid
patterns and align appropriate uses with the site. He stated the residential would be on the east side as it
would be appropriate along the promenade with offices along France Avenue but still open for pedestrian
areas for active dynamic areas. Mr. Enger explained the one layer of parking under the site but the need for
a 5-story podium of parking under the office building that would be screened and two levels under the
residential area screened as well. He shared the proposed residential quality materials and how the office
building would not be built on spec and likely need some sort of tenancy which would include branding
requests but would be a high level of sophistication and connect across France Avenue for a pedestrian
realm with lots of landscaping.
The Council asked questions and provided feedback.
IX. COMMISSION CORRESPONDENCE (MINUTES AND ADVISORY COMMUNICATION) -
Received
IX.A. MINUTES: PARKS AND RECREATION COMMISSION, MARCH 14, 2023
X. MANAGER’S COMMENTS – Received
X.A. RAILROAD SAFETY LEGISLATIVE POSITION STATEMENT – APPROVED AS AMENDED
Mr. Neal shared that at the April 4, 2023, Edina City Council meeting, Council requested staff draft a
legislative position statement on railroad safety and emergency response for consideration and approval.
Member Jackson made a motion, seconded by Member Pierce, to approve the proposed
Railroad Safety Legislative Position Statement.
The Council asked questions and provided feedback.
Ayes: Agnew, Jackson, Pierce, Risser, Hovland
Motion carried.
X.B. FOLLOW-UP FOR PLANNING COMMISSION WORK PLAN ITEM
X.C. PREP MEMO APRIL 18, 2023
XI. MAYOR AND COUNCIL COMMENTS – Received
XII. ADJOURNMENT
Member Jackson made a motion, seconded by Member Agnew, to adjourn the meeting at
11:34 p.m.
Ayes: Agnew, Jackson, Pierce, Risser, Hovland
Motion carried.
Minutes/Edina City Council/April 18, 2023
Page 8
Respectfully submitted,
Sharon Allison, City Clerk
Minutes approved by Edina City Council, May 2, 2023.
James B. Hovland, Mayor
Video Copy of the April 18, 2023, meeting available.