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HomeMy WebLinkAboutItem 06.bCITY OF LAKEVILLE COUNCIL MEETING MINUTES OCTOBER 17, 2011 Mayor Bellows called the meeting to order at 7:00 p.m. Webelo Pack 1 1 1 presented the colors and led the pledge of allegiance to the flag. Present: Mayor Mark Bellows Council Member Matt Little Council Member Colleen Lc Council Member Kerrin Swe Council Member Laurie Rie Also Present: Roger Knutson, City Attorney Steve Mielke, City Administra #or Tom Vonhof, Police Chief Zach Johnson, Acting City Engihe Dennis Feller Fihdh e Director Steve Michaud, Parks &Recreation Director Chris Pefree, Operations &Maintenance Director Daryl Morey, Planning Director Chartene Friedges, Cify Clerk Citizens' C ENO ns lielke provided revised minutes of the and a revised delinquent utility Fire Chief Mike Meyyr introduced newly appointed Lieutenants Brian Kluck and Chad Ubl and administered the oath of office to the new lieutenants. Lieutenanf,Steve Glinski was unable to attend the Council meeting. Chief Meyer presented the Fire Department third quarter report. Steve Michaud introduced Brian Roseen, Lakeville Baseball Association Miracle League Director. Mr. Roseen recognized and introduced the major sponsors of the South Metro Miracle League Baseball Field. He thanked these major sponsors and the many other companies and individuals who helped make this project possible. CITY OF LAKEVILLE COUNCIL MEETING MINUTES OCTOBER 17, 201 1 Page 2 Mr. Michaud introduced Dave Martinson, owner of Helm Electric, recognizing his many years of volunteer service and donations to the City of Lakeville. Helm Electric donates electrical service and equipment for many large community events and provides electrical and consulting services to the City's maintenance departments at no cost to the City. Mr. Michaud presented the September monthly Recreation Department. Chief Vonhof presented the September report. Mr. Olson requested the City Council pt Manufacturers Week. Council Member Emond, Sr. accepted the proclamation Development Commission. Consent Agenda Council Member Little asked agenda for discussion., port of the Parks & 3artment monthly tober 24- 28.Minnesota the proclamq # ion. Jim of the Economic from the consent by Rieb; seconded by Little to approve the consent follows 3, 2011 City Council meeting. ptember 26, 2011 Council work session. 1 -109 accepting donations to the Heritage Center. o. 1 1 -1 10 calling public hearing to assess weed /grass f. Resolution No. 11 -1 1 1 authorizing the sale of liquor store premiums and other city assets. CITY OF LAKEVILLE COUNCIL MEETING MINUTES OCTOBER 17, 2011 Page 3 g. Resolution No. 11 -112 approving the final plat of Crescent Ridge Second Addition; and Crescent Ridge Second Addition Escrow Agreement. In. Resolution No. 11 -113 approving the final plat of Spirit of Brandtjen Farm 8'" Addition. (Removed from consent agenda.) Resolution No. 1 1 -114 calling public hearing orgy the imposition of a service charge in Special Service District No. 1. Roll call was taken on the motion. A Item 61- Electrical Inspection Services Council Member Little voiced,his opposition to eliminating the City's electrical inspector position. He`was concerned that a contracted inspector would not provide the high'abolity,service that an in -house inspector provides. He stated he wished to'abtain some feedback from other cities that have gone to a contracted electrical inspection service before issuing a;Requestfor Proposals: 11.66 Motion was made by LaBeau, secondied by Swecker to authorize staff to issue a Request for Proposals for contracted electrical inspection services. cil Member Swecker pointed out that the City Council could go to a staff inspector, if it determined in the future that the contractual Bement is not working,, The City Attorney and City Administrator ned that a termination clause would be incorporated into the Ict. Roll caliwas taken on the motion. Ayes, Bellows, Swecker, LaBeau, Rieb. Nay, Little Item 7 - Certification of Delinquent Utilities Mayor Bellows opened the public hearing on the certification of unpaid water, sanitary sewer, storm sewer and street lighting charges. The City Clerk attested to legal notices being duly published and mailed. CITY OF LAKEVILLE COUNCIL MEETING MINUTES OCTOBER 17, 201 1 Page 4 Mr. Feller presented the list of delinquent accounts. The total amount proposed to be assessed is $173,120. (Any credit card payments received on October 17th will be processed, and those accounts will be removed from the certification list before it is forwarded to Dakota County.) There were no public comments. 11.67 Motion was made by Rieb, seconded by Little to close the public hearing. Roll call was taken on the motion. Ayes, unanimous :,. 11.68 Motion was made by Swecker, seconded byRieb to approve Resolution No. 11-1 15 certifying unpaid water, sanitary sewer, storm serer and street lighting charges to the County TreasureryAuditor tt be collecfed with other taxes on said property. Roll call was taken on the motion. Ayes, unanimous. Item 8 - Liquor Operations Economic Imioact Study Liquor Director Brenda Visnovec introduced Shehehon Company President Bob Strachot6and Vice President Scot Torkelson, who presented an exec utive,15ummary of4he Lakeville Liquors Economic Impact Study. He indicated that Shenehon Company was asked to study: 1. Economic impa6 - i" ,�etoil,development from operation of municipal liquor stores in the city; 2: Financial impact comparison of Lakeville with municipal liquor operations to the alternative of licensed private liquor stores; and 3. Economic impact on Lakeville's revenue from liquidation of municipal liquor stores (real estate and businesses) and improved ..tax base with potential new development. Mr. Torkelson presented the results of their study, highlighting the following points: Of the 15 top retailers located in the Twin Cities Metro Area, seven were already located in Lakeville. Of the top 15 retailers, every one had retail locations in a city with municipal liquor. CITY OF LAKEVILLE COUNCIL MEETING MINUTES OCTOBER 17, 201 1 Page 5 Municipal liquor stores do not impact retailers locating in the city. The most important driver of retail locations is demographic. Lakeville has a higher per capita retail build -out space (19.1 square feet per capita) than other edge of MUSA cities, which average 16.7 square feet per capita. Municipal stores have a lower per capita sq private liquor stores and serve more people tend to be located further from residential ,r In a private liquor store licensure scenario, it is like) new stores would locate in existing shoppping coral generally operate smaller facilities with ncarrow.rn< contributions or philanthropic endeavors bylocal be limited. Municipal licensing, should not be view source of revenue. In Minnesota, license fees mu direct and indirect costs in issuing the license and activities. presence than nicioal stores y, that a h idjority of any ers. Privateliquor stores trgins, and any "financial liquor retailers tend to (ed as a significant ;f approximate the oolicina the licensed Considering the +loss of municipal liquor store contribution of income to the city, the average residential property; owner would pay approximately $46 more, and an'average commercial- industrial property owner would pay approximately $223 more, in property taxes. City of Lakeville's three stores provide annual cash flows estimated at 175,000. An amount equal to an estimated $112,000,000 of retail nstruction would .be needed to replace these cash flows. The net proceeds qii the sale of the three municipal liquor businesses and two buildings are estimated to be $6,490,339. Under rules governing city investments, the rate of return for the foreseeable future would be 1 %. This comparesto the 18% rate of return achieved by the existing municipal liquor stores Council Member Little asked Mr. Torkelson to address Costco and Trader Joe's. Mr. Torkelson explained that Costco siting criteria is very focused on super regional shopping centers. Costco has located in Eden Prairie, where municipal liquor stores preclude private off -sale liquor. CITY OF LAKEVILLE COUNCIL MEETING MINUTES OCTOBER 17, 2011 Page 6 Trader Joe's tends to develop smaller neighborhood stores, ideally within communities of couples with no kids. Lakeville's demographics would not currently attract a Trader Joe's. In response to Council Member Little's question, Mr. Strachota stated Lakeville does not have the demographics to support an estimated $112 million in additional retail construction (20 to 40 large., commercial developments). Ms. Visnovec reported that the City's Finance Comm #tee reviewed and recommended that the analysis was adequate and suffd_pient to reach the conclusions presented. Mayor Bellows stated he is strongly biased toward private sector versus public sector sale of liquor. He stated he' Oe j feel the study addressed the questions regarding Costco; and he he(4; ery recently that there is another big box retailer interested in the 1- 35/CRs70 intersection and that the liquor issue is going to surfacp'once again. He felt the study was short- sighted in that it did not address the viability of leasing buildings and entertaining lease options with rnajor retcnlefs . -..... Tim Ross, 7770 -202nd Street W., asked if communities with private liquor stores receive a percentage of the proceeds from liquor sales. Mr. Mielke responded thatin a community that does not have municipal liquor, it is not legal to take :a percentage of the profits. Council Member Swecker stated she felt the study was extremely thorough and that Shenehon Company was very well qualified. She stated the study confirms the profitability of Lakeville's liquor operation. Cbuncil Member LaBeau stated she is concerned with spending money for land to expand'the City's liquor operation and felt that the study did not address thattssue. She also felt that the study should not have compareddhe value on the sale of the existing stores to a private liquor business. Council Member Little stated the City has very few options to replace the $1.1 million revenue that the liquor operation currently generates. The study reiterates his initial position that the liquor operation is profitable and reduces property taxes for Lakeville residents and businesses. CITY OF LAKEVILLE COUNCIL MEETING MINUTES OCTOBER 17, 201 1 Page 7 Council Member Rieb stated she felt the study was well done and made the bottom line very clear. She explained that while it is something the Council will need to discuss, it has not yet been determined what the next step in this process will be. 11.69 Motion was made by Swecker, seconded by Little to accept the Lakeville Liquor Economic Impact Study. Roll call was taken on the motion. Ayes, una Item 9 - Sale of Senior Center, 20732 Holt Mr. Olson presented a resolution author)[Ar Senior Center property, located at 207321 explained that the property was appraise on that appraisal, staff recommends a lists will advertise this property on several com along with City newsletters and,the Gity's Mayor Bellows asked if the sale Wou review of the bids for the Heritage C stated the sale would be contingera and specifications and an estimate explained that, the bids will include that the project is flexible and rema the listing of the Lakeville t Aveii6e, for sale:', ,He a Mbrch of this year: Based price of $380,000. The City real real estate websites conti0gent upon the Council's r construction project. Mr. Mielke n the Council's approval of plans ject cost for Heritage Center. He ates and contingency plans so thin the budgeted amount. 11.70 Motiori vas made by Rieb, seconded by Swecker to approve Resolution No: l 1 -116 authorizing the listing of the Senior Center property, 20732 Holt T. Avenue, for sale. Rofl call was taken on the motion. Ayes, Rieb, Swecker, Little, LaBeau. Nay, Bellows. Mayor Bellows stated his vote is consistent with his opposition to a project that he feels lacks vision for the community. Unfinished business None New business Council Member Rieb announced that she and Council Member Swecker have submitted a request for a special meeting of the City Council to CITY OF LAKEVILLE COUNCIL MEETING MINUTES OCTOBER 17, 2011 Page 8 discuss meeting decorum and processes. Staff will schedule a meeting for some time after October 31st. Announcements - Haunted Forest, October 22nd at North Park Next regular City Council meeting, November 7rh Council work session, October 24th Mayor Bellows adjourned the meeting at 8:45 p Respectfully submitted, Charlene Friedges, City Clerk Mark Bellows, Mayor