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HomeMy WebLinkAbout02-25-13 WSCITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES February 25, 2013 Mayor Little called the meeting to order at 6 p.m. in the Marion Conference Room at City Hall. Members Present: Council Members Swecker, LaBeau, and Davis, and Mayor Little. Council Member Anderson participated via videoconference. Staff Present: Steve Mielke, City Administrator; Chris Petree, Public Works Director; Brett Altergott, Parks and Recreation Director; Judi Hawkins, Deputy City Clerk 2. Citizen Comments School Board member Bob Erickson stated that he was attending for the CR 50 presentation on behalf of the KTMS principal, who was unable to attend this meeting. He stated he had also been contacted by business owners regarding timing for the Kenrick Ave. overlay. Kenrick was last overlaid to repair excessive wear and tear resulting from an I -35 diversion. 3. Commercial /Industrial Park Dedication Rates Parks and Recreation Director Brett Altergott stated that in January the Parks, Recreation and Natural Resources Committee, Planning Commission, and Economic Development Commission reviewed the report by The Planning Company (TPC) in regards to the Commercial /Industrial Park Dedication Fees. Based on the findings of the report, the City of Lakeville could justify an increase in the fees; however, all three committees recommended that the fees stay the same for 2013. The Parks, Recreation and Natural Resources Committee recommended a 5% increase in 2014; the Planning Commission and Economic Development Commission recommended an annual review as part of the budget process. Dan Licht of TPC stated that the report is the result of Council's direction to determine a formula for calculating the residential park dedication fees and attribute it to various land uses within the city. The County Assessor's information shows a consistent pattern in market value changes for residential properties, but a reliable indicator of the average fair market values does not exist for undeveloped commercial and industrial properties. In June 2012 Council accepted the recommendation of the Parks, Recreation and Natural Resources Committee and EDC to engage an appraiser to determine the fair market values of commercial and industrial properties. The appraiser looked at properties in Dakota, Scott, Carver and Washington counties to try to determine mean and median values for unplatted, undeveloped, commercial /industrial properties. Using median values, the appraiser recommended a fair market value of $4.58 per square foot for commercial properties and $2.36 per square foot for industrial properties. The EDC believed those estimates were realistic for similar properties in Lakeville. Based on that City Council Work Session Minutes -2- February 25, 2013 information and the state statute the City of Lakeville would be within its legal framework to substantially increase the park dedication fees up to $11,965 per acre for commercial and $6,168 per acre for industrial and office, a 56% and 35% increase, respectively. Past practice recognizes the competitive trade area of commercial and industrial properties not only for park dedication but for other development fees as well. Staff and the EDC also recognize that parks and trail development needs to be balanced with the City's economic development goals. Staff and the advisory committees recommend that the C/I park dedication fees be kept the same for 2013 and be reevaluated during the budget process for a possible increase in 2014. Staff is asking for direction from City Council on how to proceed. The EDC also recommended that a comprehensive review of all development fees be conducted to assure economic competitiveness. Council Member Anderson stated he recognizes the importance of keeping Lakeville attractive for development while balancing park dedication fees to ensure that there will be adequate funds for park and trail development and agrees with reevaluating the fees for 2014. Licht added that additional flexibility can sometimes be achieved by using certain fees as a development incentive or a negotiating point. Steve Mielke stated that the guidelines for future park development also need to be reviewed. The draft Park and Trail Plan will be readdressed this fall following the Community Vision Plan. He agreed that this is one area where the City can provide incentives to developers. Council Member Swecker supports keeping the park dedication fees the same for 2013 and reevaluating them as part of the 2014 budget process. She also agreed the City needs to keep a balance of remaining attractive for developers and supporting the park system. Council Member LaBeau said she hears from the development community that this is a fee for something they really don't use; however, there is an appreciation for the amenities it provides. She is concerned about the cost for maintaining parks and trails to the high standards that have been set and also is wondering where the appraiser collected data since there have not been a lot of sales of commercial and industrial properties. Mr. Licht stated that he appraiser used all of the data that was available in the metro area. Mr. Mielke stated that Lakeville is one of the few cities that have adjusted their fees downward to take residential land values into consideration. Mayor Little asked if there is a way to determine maintenance costs for added park development. Mielke stated that some maintenance estimates could be made based on the type of amenity. Council Member Davis also believes it is very important to be knowledgeable about future costs for maintenance of new park development. Little believes polices should be adopted before any discounts are offered. City Council Work Session Minutes -3- February 25, 2013 Council directed staff to place this item on a regular Council agenda for consideration. 4. 2013 Transportation Project Update Public Works Director Chris Petree introduced County Commissioner Paul Krause, Dakota County Engineer Mark Krebsbach, Assistant County Engineer Brian Sorenson, and City Engineer Zach Johnson. Petree highlighted several upcoming City projects including Highview and Dodd improvements and roundabout and street reconstruction projects in Valley Park, Clays Acres, and 204 Street. Bids for the bridge replacement at 168th Street and Gannon Avenue will be opened in March. This project is being rebid due to higher than estimated bids last fall. The trail on the west side of Dodd Blvd. from Holyoke south to 208th Street is a joint project with the County. Plans are anticipated to be completed in the next couple of weeks and advertised for bids for 2013 construction. Improvements in the area of 205 Street and Kenrick Avenue will include a roundabout, mill and overlay from the park and ride on 185th Street, and a trail on the east side of Kenrick from 205th to the park and ride. The City is working with the businesses and property owners in that area to minimize impacts to them. Zach Johnson stated that the roundabout on 205th Street will be a single lane but will be designed for large vehicles. The project will begin in early to mid -June and is anticipated to be complete in early August. Construction will take place under traffic. It is hoped that the project will be completed before closure of one lane of I -35 takes place this summer. The mill and overlay will follow the roundabout construction and the reopening of I -35 in order to avoid damage to the new surfaces. Swecker believes the roundabout might be premature based on existing traffic but she continues to support the project, especially the trail. Mielke added that planned development in the area will bring increased traffic and that there is a financial incentive to build it now with assistance from Walmart. Mielke added that a left turn lane has been added to the project so that the businesses can be more easily accessed. Dakota Electric will install standard street lighting at the roundabout. Z. Johnson also noted that improvements to Kenrick will include widening and paving both shoulders. Bids will be opened on March 8. Council will receive the bids at their March 18 meeting and set an assessment hearing in mid - April. Swecker appreciates that 204th Street is included. Bob Erickson stated that most Walmart traffic seems to be from the south and west and he believes the Kenrick overlay portion of the project should be paid for by the State. LaBeau asked if staff had checked with MnDOT about funding for the overlay. Petree stated he will speak to them about contributing to the cost. LaBeau also asked if there has been feedback about the Highview /Dodd roundabout being constructed at the same time as the 205 Street / Kenrick. Petree stated that all the business owners were invited to a meeting recently and were supportive of the Kenrick/205th Street project. Staff is working to coordinate the timing of City of Lakeville projects with Dakota County and MnDOT projects. City Council Work Session Minutes -4- February 25, 2013 5. County Road 50 Corridor Study Preliminary Report Public Works Director Chris Petree updated Council on the County Road 50 Corridor Study. County Engineer Mark Krebsbach stated that he appreciates the challenges that Lakeville's staff is facing in working with other agencies to coordinate the timing of projects. The county is facing similar challenges with improvement projects throughout Dakota County. Brian Sorenson, Assistant County Engineer, provided an overview of the scope of the Highview/ Dodd reconstruction improvement project. This project will require a total closure to traffic at that intersection. The Dodd Blvd. four -lane divided roadway will be extended east from 183 Street to Hayes Avenue, just east of Highview. The roundabout at Highview will consist of two through -lanes for east /west traffic on Dodd and one lane for north /south traffic on Highview. Highview Ave. will be reconstructed to a fully urban section from Dodd to 175th Street. The east /west corridor study recommends a new alignment for County Road 9 which will curve to the south and connect to 170 Street at the Central Maintenance Facility. Sorenson stated that since there are no major transportation problems at this time this section of roadway will be delayed until development creates the need for utilities. Mielke provided background on the east /west corridor study and its recommended connectors, which are all development- driven. Council members expressed a desire to extend Dodd improvements to Cedar Ave. instead of just to Hayes as part of this project. Anderson asked if it would be possible for the County to construct the new section now and be reimbursed by the developers later. Krebsbach does not believe traffic counts warrant the extension at this time and expressed concern that a substantial change would greatly delay the project. Anderson suggested a temporary roadway be built. Mielke stated that the construction of the roadway could make development more feasible. LaBeau stated that with several new developments planned in the area they might think about completing the realignment sooner than was planned. Krebsbach said the county has committed to working with developers on roadway alignments. Mielke showed the future planned alignment and connections of 179 Street near the CMF water tower. Early development would require sewer access from a temporary lift station and extension of water into the property. The property is in the current MUSA and the owner wishes to develop. Mielke stated that this realignment might be a more permanent solution and a better use of funds than completing the four -lane divided section further east on Dodd. Krebsbach stated that this is an important connection and if the opportunity arose he would anticipate approval for the CIP by the County Board. Sorenson discussed traffic flow and detours during the Dodd and Highview construction. Not having direct resident accesses onto Dodd will be helpful during the closure. Access will need to be provided for the new development on the NW side of Dodd. Impact will be minimized by waiting until school is out to begin the construction. The marked detour will be Cedar to CR 50. County representatives have met with emergency police and fire personnel. Updates will be City Council Work Session Minutes -5- February 25, 2013 provided to area residents through the county's newsletter and website with a link on the City's website. Swecker asked about the impacts to the Pan- O -Prog events. Petree stated that the POP board is coordinating with the County to minimize challenges, but most events will not be impacted. Davis stated that there will be additional traffic past Aronson and Quigley -Sime Park. He suggested a City list -sery that residents could sign up for to receive weekly project updates. Anderson stated that this could also add a lot of traffic along Ipava, in front of Steve Michaud Park. Mielke stated that this project highlights the lack of adequate east /west corridors. Sorenson stated that Phase I of the County Road 50 Corridor Study includes 185t Street to Dodd Blvd. Phase II will include Dodd to Cedar. The study focused on the roundabout at 185th Street and Kenwood Trail and whether this would change the gaps in the traffic pattern. Part of the study also looks at Kenwood Trail Middle School (KTMS) and their internal traffic operations. Modeling is being done based on traffic counts at various times and scenarios to help predict future traffic. In discussions with the county, CP Rail indicated that they are not interested in selling their portion of the railroad along Kenwood Trail. An open house will be held the week of March 18 to officially present the model and both short term and long term possible solutions. Sorenson disclosed that the model shows very little change in the gapping at KTMS and Jaguar Ave. as a result of a roundabout at 185 Street. Modeling a traffic signal at 192 Street also shows an insignificant change in the gapping but could be beneficial to the school during periods of heavy school traffic. City Council will receive the study for consideration in April and County Board will consider it in May. Anderson stated that it is the responsibility of the City and the County to insure the safety of the children at the school, as well as the Jaguar neighborhood and the businesses along Kenwood Trail. He believes a signal at 192 Street would be justified. Mielke pointed to a common thread of the problem areas being exclusive access onto Kenwood Trail; alternate outlets need to be explored as part of the short and long term planning where possible. Sorenson stated that a signalized intersection is not always the safest solution as it creates other challenges. Krebsbach added that the goals of the County are the same as the goals of the City. to identify solutions for both the short term and long term to effectively meet the challenges of the traffic situation. 6. Council Committee Appointments Annually the City Council reviews appointments to Council committees and representation to inter - agency joint powers and membership organizations that meet regularly or occasionally. Council discussed the various opportunities available and their individual desires and availability. Based on discussions and selections, staff will prepare a resolution for consideration at the March 4 City Council meeting. City Council Work Session Minutes February 25, 2013 7. Board and Commission Application Review El Seven applications were received as a result of two articles in Messages advertising openings on the various advisory boards and commissions. City Administrator Mielke provided an overview of existing term expirations and openings. Council discussed the process for reappointment of existing committee members whose terms are expiring. The consensus was to solicit input from board chairs and staff regarding performance and attendance. Swecker would like to wait until feedback has been received from the chairs before deciding on reappointments. Davis also feels that feedback from the chairs and department directors is a very important part of the process and should be taken into consideration. LaBeau believes that reappointments should not be automatic and that more people could get involved if there were term limits. Council will interview the seven new applicants before determining whether more recruitment and advertising is needed. Staff will contact Council members to determine availability for interviews. Council is scheduled to make appointments at their March 18 meeting. Council Member Anderson logged out of the videoconference at 8:45 p.m. 8. Economic Development Incentive Program Review Community and Economic Development Director Dave Olson stated that one of the goals of the approved 2011 -2013 Strategic Plan for Economic Development was to create a toolbox of incentives for businesses. Cities in Minnesota most commonly use Tax Increment Financing (TIF) as a business incentive. The second most used incentive is Tax Abatement. The EDC has reviewed the TIF and Tax Abatement policies and is recommending both policies be considered by the City Council. Both incentives capture taxes and redistribute them to support development efforts. TIF allows local control and has been used many times by the City of Lakeville. Tax Abatement gives other agencies such as the school districts an opportunity to express their opinions. This tool has not been used previously by the City of Lakeville. TIF captures the tax base from new development and pays for public improvements related to that development. It is for a fixed amount of time, depending on the type of project, up to eight years. TIF requires that the project would not take place if not for the incentive. There is more flexibility in the use of Tax Abatement since improvements can be done to private property, including existing buildings, and taxes can be used to offset some of the costs. Tax Abatement must be used for a public benefit which can include community facilities such as recreation centers or senior centers, or for blight cleanup. The amount of the Tax Abatement must be added to the tax levy with a limit of 10% of the tax capacity in every tax year or a maximum of $200,000. Staff believes it is important to have TIF and Tax Abatement policies in place to provide general guidelines and direction in the event a project is submitted for consideration. Each project can still be considered on its own merits. LaBeau stated that incentives such as these help to gain the support of the business community. City Council Work Session Minutes -7- February 25, 2013 The Tax Increment Financing and Tax Abatement policies will be presented to Council for consideration at an upcoming meeting. 9. Other Steve Mielke reported that the Vision Task Force held its first meeting on February 21. The business school student representative's schedule does not allow him to participate but he will assist in finding a replacement. Member Paul Mahrzan will also not be able to serve. Council would like to look for a replacement representative from the non - profit faith community. City Council and board and commission members will be invited to the next meeting on March 25. LaBeau asked to reevaluate the scope of the Finance Committee. Mayor Little asked if that could be put on the March work session agenda. LaBeau requested that Council meeting minutes be sent out earlier to allow more review time. LaBeau also asked about the Legislative Priorities section regarding cities' ability to create local utilities. Mielke explained this was part of the revenue toolbox available for cities but has not been used in Lakeville. Since there are new Council members it was suggested that security measures be reviewed. Staff will get this scheduled before an upcoming Council meeting. 10. Adjourn Mayor Little adjourned the meeting at 9:25 p.m. Respectfully submitted, J d' Hawkins, Deputy Clerk Matt Little, Mayor