Loading...
HomeMy WebLinkAbout11-26-18CITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES November 26, 2018 1. Mayor Anderson called the meeting to order at 6:01 p.m. in the Lake Marion Conference Room. Members present: Mayor Anderson, Council Members Davis, Hellier, LaBeau, and Wheeler Members absent: None Staff present: Justin Miller, City Administrator; Allyn Kuennen, Assistant City Administrator; Dave Olson, Community & Economic Development Director; John Hennen, Parks Director; Jerilyn Erickson, Finance Director; Tamara Wallace, Deputy Clerk 2. Citizen Comments: There were no citizen comments regarding non -agenda items. 3. QA1 Precision Products Tax Increment Financing Request Mr. Olson provided background on QA1 Precision Product's application request for Tax Increment Financing or TIF. Rachel Gradner with CBRE Advisory & Transaction Services as well as Travis Scoles, Executive Vice President of QA1 showed a brief video on the manufacturing and supply company which specializes in shock absorbers and accessories. The company, presently based out of Lakeville, is looking to develop a new 100,000 square foot facility in the Interstate South Logistics Park that would replace two existing adjacent buildings owned by QA1. The expansion would see a job growth of 44 new positions in the next five years with an average salary of $40,600. The estimated cost of the new facility would be approximately $11,459,000; $2,809,000 is eligible for TIF assistance. The TIF application has identified a financing gap and specifies the project would not be feasible if not for TIF financing. QA1 is also exploring two additional funding sources offered through the Minnesota Department of Employment & Economic Development (DEED) - the Job Creation Fund (JCF) and the Minnesota Investment Fund (MIF). The Council reviewed the request for TIF application and discussed several items including what would happen if the guaranteed job creation was not achieved. Kylle Jordan with the Minnesota Department of Economic Development clarified the State would not process payments until one year after the tenth position was created. The Council gave staff direction to move forward with QA1's TIF application. City Council Work Session Minutes, November 26, 2018 Page 2 4. Avonlea/ East Community Park Master Plans At the June 25 City Council Work Session meeting, staff was given Council direction to bring back updated concepts, and estimated construction costs, for the development of Avonlea Community Playfield and East Community Park Phase II. Following a community presentation and feedback from citizen surveys, staff alongside the Parks, Recreation, and Natural Resources Committee (PRNRC) worked with design consultants to incorporate the resident input received into the new design concepts. Candace Amberg with WSB presented the East Community Park Plan which included several amenities such as: a trailhead/ shelter, canoe/ kayak boarding docks and racks, stone overlook areas, shoreline and fishing pier opportunities, pollination garden areas, trails/ trail lighting, and a 40 -car parking stall. The estimated cost of the project is $2,000,000. Tom Wold with SRF Consulting Group, Inc. presented the Avonlea Community Playfield Master Plan which included two design concepts with the primary difference in the plans being a dome facility in Concept A versus an athletic deck with artificial turf in Concept B. The estimated cost for Concept A is $17,600,000; the cost for concept B is $11,900,000. The Antlers Park Master Plan expansion was previously reviewed by the Council at both the October 2017 and May 2018 Work Session meetings. The cost for this project expansion is approximately $7,500,000 between both of the proposed phases. Tom Goodwin - PRNRC Committee Member, 12100 - 175th Street West Indicated the PRNRC felt the plans accurately exemplified the feedback of the community based on the survey results. Reiterated that the Avonlea Master Plan would accommodate the field demands expressed by the associations for years and consider the growth of these sports. Dan Bergstrom - Lakeville Lacrosse, 23119 Hytrail Avenue Wondered why there were not more parking stalls included in the plans and outlined the Lakeville Lacrosse field needs in response to a Council question regarding how many fields were needed at this time between the sports. Chris Beumer with Lakeville Baseball Association, 17314 Greenview Circle Responded to a Council question regarding why the Avonlea Community Park plans account for only one large baseball field versus having multiple fields to accommodate potential tournament needs. Mr. Beamer indicated there is a huge demand/ need for a large, 90 -foot field geared to the older children as they currently share fields with other high schools that are already over -utilized. In situations in which there are larger tournaments the Association has had to rent fields from neighboring communities large enough to host the event. City Council Work Session Minutes, November 26, 2018 Page 3 Dave Tobias - Lakeville Baseball Association, 8729 - 1891 Street West Added that given the age range of the children who are utilizing the larger fields, traveling to nearby fields in a tournament is traditionally not a problem as most of the players drive. By installing another large baseball field, Lakeville baseball would be able to expand tournaments and allow more children to utilize the fields. Also commented that while it would be cost- effective to place the dome at Hasse Arena, he has concerns about the dome project moving forward should the City not be able to come to amenable terms with the School District. Michelle Volk - Current School Board Member, 16452 Kenosha Avenue With respect to placing the dome at Hasse Arena, Ms. Volk commented that the current school board members would look to sell versus donating the land to the City. Furthermore, she wanted the Council to strategically evaluate how a park referendum should be packaged to the residents should the dome be attached to Hasse arena versus a separate standalone facility. Joshua Lee - Council Member Elect, 20640 Kaiser Way Wondered if there has been any additional thought/ research as to the economic impact to downtown Lakeville having the dome at Hasse Arena versus on Cedar Avenue; any potential financial benefits to one site over the other. The Council reviewed the plans, discussed current community field needs, a potential joint powers agreement with neighboring communities, how much field should be turfed within the plans, current acreage of the sites, how the North Creek Greenway would align, and priorities/ possible phasing opportunities within each of the plans. After weighing out the option of placing the dome at Avonlea Community Playfield as outlined in Concept Plan A, the general consensus of the Council was to move forward with the more cost-effective solution of attaching the dome facility to the existing Hasse Arena. (Break from 7.33 - 7.42 p.m.) 4a. Park Referendum Discussion Staff presented eight different scenarios reflecting combinations of the park projects, the financial impact of each on the median valued home, and the financial impact on commercial/ industrial properties. Included were also three options which offered potential timelines to hold a Special Election to go out for Park Bond Referendum: • Option 1 - May 14, 2019 (Council approval by February 19 City Council Meeting) • Option 2 - August 13, 2019 (Council approval by March 18 City Council Meeting) • Option 3 - November 5, 2019 (Council approval by the April 15 City Council Meeting) City Council Work Session Minutes, November 26, 2018 Page 4 Staff is proposing the City Council would then work with Springstead Inc. to determine what residents are willing to pay annually towards park improvement projects to set the total amount the Park Bond Referendum would request of residents. The Council reviewed the three scenarios and determined they would favor moving forward with the first option to hold a Special Election on May 14, 2019. Staff will move forward with contacting Springsted to move forward with an initial community survey; as well as contacting the School District to begin discussions on acquiring the additional land needed at Hasse Arena to construct the sports dome. 5. 2018 Yearend Preview & Final 2019 budget/ Tax Levy Discussion Ms. Erickson provided an overview of the revised 2019 proposed General Fund budget, and the property tax levy to support general services. The new plan reduces the property tax increase from 8.00% to 7.75%, maintains the 2019 fund balance ratio at 44.2% (which is in the middle of the required range of 40-50%), and accounts for the personnel changes that were included in the preliminary budget. The proposed tax levy would result in an estimated increase of $85 on the median valued home. Ms. Erickson outlined how the tax levy was ultimately reduced as well as the challenges staff would need to address in 2020 to include: union contracts expiring, impacts from the compensation study, new positions, need to issue debt for equipment replacement, and parking lot repair needs at area parks. The Council thanked staff for their work in reducing the preliminary tax increase and finding additional spending cuts. They spoke extensively about alternative ways to reduce the tax levy down below 7 - 7.25% before the public hearing at the December 3 City Council meeting. 6. Legislative Priorities Mr. Kuennen presented the draft 2019 Legislative Priorities, a document intended to communicate the City's legislative position on a variety of issues such as transportation, local control, municipal revenue/ taxation, development, and housing. The document has been updated and reflects three legislative priorities the City feels will receive the greatest attention in the legislature: State mandates on local authority, infrastructure fees, and expansion of wine and strong beer sales in grocery/ convenience stores. Michelle Volk, Councilmember-elect Wanted clarification on how the legislative priorities were determined and who authored the document. She did not feel that infrastructure fees or the expansion of wine/ beer sales in City Council Work Session Minutes, November 26, 2018 Page S grocery/ convenience stores should be considered a priority as she felt competition was healthy from a business standpoint. The Council reviewed the list and decided to expand the original three priorities to five, adding on the Metro Orange Line Extension and Metro Mobility; as well as updating the language to the infrastructure fees item. The document will remain a draft copy that will be presented to state legislators at a joint December 10 City Council work session meeting to gain feedback and input on how the priorities align with the legislator's agenda for the upcoming session. The Council will look to adopt the document at the December 17 City Council meeting. 7. Committee/ City Administrator Updates Councilmember Davis reminded the Council about Mr. Miller's upcoming performance evaluation. Councilmember LaBeau gave an update on the liquor stores which continue to do well as they hire and train more part-time employees. Councilmember Hellier reported the Broadband Board put out an RFP (Request for Proposal) for the executive director position. Also indicated there are close to 30 applications that have been received for the open Public Works Director position with the City of Lakeville. Mr. Miller added interviews for the Public Works Director would likely start in January, provided a draft schedule of the 2019 City Council/ Work Session meetings, and reminded the Downtown Tree Lighting ceremony would take place tomorrow Tuesday, November 27 at 6 p.m. Councilmember Wheeler stated that negotiations/ conversations continue with the Lakeville Hockey Association regarding a renewal of their agreement. Mayor Anderson updated there would be a small celebration before the December 17 City Council meeting at 6 p.m. honoring Councilmembers Davis and LaBeau for their service on the Council. Their current terms end on December 31, 2018. 8. The meeting adjourned at 9:50 p.m. Respectfully submitted, Deputy City Clerk F,.Ja��-r-Anderson, Mayor Respectfully .-