HomeMy WebLinkAbout01-28-19CITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
January 28, 2019
1. Mayor Anderson called the meeting to order at 6:02 p.m. in the Lake Marion Conference Room.
Members present: Mayor Anderson, Council Members Hellier, Lee, Volk, 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 & Recreation
Director; Daryl Morey, Planning Director; Tamara Wallace, Deputy Clerk
2. Citizen Comments:
There were no citizen comments.
3. QA1 TIF Update
Mr. Olson presented an update on QA1 Precision Product's application request for Tax
Increment Financing or TIF. 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, of which $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.
Staff is recommending the project receive 95% of the captured increment for a period of seven
years; in exchange QA1 will complete the project by the end of 2019/ early 2020 and will add 19
jobs over the next two years with a starting wage of $29,100 to $72,100 plus benefits. The City
Council and EDC previously recommended proceeding forward with the application, and a
public hearing is tentatively scheduled for the Tuesday, February 19 City Council meeting for
formal consideration.
The Council clarified whether the present seven-year term could be extended should there be an
opportunity for future expansion of the new building, and if there is an established philosophy
for how many positions a TIF project should generate to qualify for application. The Council
directed staff to move forward with next steps for the QA1 TIF application.
City Council Work Session Minutes, January 28, 2019
Page 2
4. Solar Subscription Proposal
The City is presently under two separate solar subscription agreements with Oak Leaf Partners
and US Solar, and has recently been approached by a third company, ReneSola. Under
ReneSola's proposals the City is projected to have a 25 -year savings of approximately $1.9 million
to $2.1 million depending on which option the City moves forward with:
• Option 1 increases subscription rates over the course of 25 years seeing higher savings in
early years that taper off,
• Option 2 is a fixed subscription plan with lower savings early on but a higher value
throughout the agreement.
If approved, all City facilities under Xcel Energy territory would receive credits through solar
energy production; these facilities include City Hall, the Heritage Center, Ames & Hasse Arenas,
and the Lakeville Area Arts Center. Representatives from Renasola were present to provide
background information on how each subscription plan would work; the Council clarified the
program is only beneficial if Xcel does not change usage charges for customers.
The Council reviewed the two proposals from ReneSola and decided to move forward with the
fixed rate subscription plan which saw a higher value throughout the agreement.
5. Park Referendum Discussion
Staff worked with Springsted, Inc. to conduct a park survey to determine what residents were
willing to pay each year towards funding various park improvement projects including: Antlers
Park reconstruction, improvements to Ames Arena, as well as the construction of Avonlea
Community Park, East Community Park, and a Dome Facility. The City Council reviewed the
results at the January 7, 2019 work session meeting with the preliminary idea to go out for Park
Bond Referendum in May 2019. Survey results indicated the maximum tax increase should not
exceed $85 per year for the median valued house, which would fund $27 million of the proposed
$33,675,000 in park projects. Staff, along with the Parks, Recreation, and Natural Resources
Committee (PRNRC) reviewed the proposed projects and were able to eliminate the $6.7 million
difference in costs.
However, recently the City was approached by a private firm, Dome Partners, LLC, with the
proposal to partner with the Lakeville Area School District to build a dome facility at Hasse
Arena. Staff has reached out to the Lakeville Area Public Schools regarding adjacent land at
Hasse currently owned by the school district and would like direction from the Council on
whether to continue next steps towards a Park Bond Referendum, and if so, clarification on
which projects would be included.
City Council Work Session Minutes, January 28, 2019
Page 3
Bob Swan, PRNRC Member, 16675 Lakeview Court in Lakeville
Commented that he would like to see Lakeville parks as progressive and thriving as the vision
statement for the City, and added that if the Council does decide to move forward with the
private firm to construct the dome, the PRNRC would like to see the reductions they found added
back in to the plan for funding.
Jim Storms, PRNRC Member, 17125 Franchise Way in Lakeville
Should the dome be privately constructed, he wanted the Council to consider how flexible/ usable
the dome facility would be to various groups/ organizations within the community. Also wanted
clarification on the Lifetime Fitness benefits Lakeville residents currently have if any, and felt a
separate evaluation should be conducted to determine whether the community at large can afford
the average cost of a Lifetime Fitness gym membership.
Holly Weberg, PRNRC Member, 7584 -170`' Street West
Wanted clarification on the Lifetime Fitness benefits available to Lakeville residents as well, and
what specifically needed to be said to obtain those incentives.
The Council reviewed the proposed project reductions, and asked staff whether there were any
initial concerns with the private company not accommodating local groups/ organizations,
discussed both the Vadnais Heights and Dundas sports domes, outlined the improvements to
Ames Arena, and clarified whether park dedication fees could be used to cover the costs of the
Avonlea project. A final decision to move forward with a May Park Referendum must be made
by the end of February, the Council directed staff to continue conversations with the private
company option in hopes that more information would be provided before the February 4 City
Council meeting. In the interim, staff will research whether there is any statistical data on voter
turn out for a May election versus a November General Election, rework the numbers to include
East Lake project costs in a potential bond referendum, and obtain more information on whether
a bond referendum can be cancelled after it is officially set.
6. 2040 Comp Plan Update/ Fleet Farm Property - Apartment Discussion
As part of the final steps in the 2040 Comprehensive Plan review, staff held public input meetings
in which the community could provide comment/ concern on specific land use requests. Dan
Licht, with the Planning Company, compiled a list of the requests which were reviewed by the
Planning Commission at their January 17 work session meeting. Mr. Licht presented the five
significant property owner requests to change the MUSA Staging Plan Map and/ or the 2040
Land Use Plan Map to the Council for review and discussion.
The Council talked extensively about the Mills Properties LLC request which is located at the NE
quadrant of Kenrick Avenue/ 1731 Street - the Fleet Farm property. The property owner seeks to
City Council Work Session Minutes, January 28, 2019
Page 4
change the use to Commercial for the construction of a 200 unit multi -family development; staff
and the Planning Commission are recommending it be changed to Corridor Mixed Use
development (CMU).
The Council reviewed the request and expressed concerns with current traffic/ congestion in this
area, density, and changing the land use without informing residents in advance.
Dennis Cornelius with Amcon Construction, 6121 Baker Road in Minnetonka
Addressed the preliminary traffic concerns and acknowledged the Council's desire to have a
traffic study completed. Expressed the developers were not opposed to a corridor mixed use to
accommodate the project but would have concerns on how easy it would be to amend the land
use after the Metropolitan Council has adopted the 2040 Comprehensive Plan.
The Council was comfortable changing the Fleet Farm property to a Corridor Mixed Use with the
requirement of a conditional use permit for high density residential within the district.
7. LHA/ Heritage Figure Skating Club Agreement
The City's current agreement with the Lakeville Hockey Association (LHA) for access to 2000
hours of ice time at Ames and Hasse ice arenas will expire February 2019. Under the current
arrangement the LHA contributes $95,000/ year towards the improvements to Ames Arena; staff
and LHA representatives have worked to negotiate new terms that would be beneficial to both
parties. The proposed agreement includes the following terms: LHA annual contribution of
$70,000/ year, a 10- year agreement, LHA will have pre -draft access to 700 hours per ice season,
LHA will retain naming rights/ revenue (with city veto authority) of ice sheets at Ames, and LHA
will be able to provide input into use of funds for capital improvements at both arenas.
Staff has also been approached by the Heritage Figure Skating Club for additional ice time and
has preliminarily outlined a similar agreement that includes: a contribution of $10,000/ year for
10 years and 100 additional hours before the ice draft process begins.
Jon Ross, President of the Heritage Figure Skating Club
Expressed the growth of the club acknowledging the additional ice time would allow the
organization to keep up with neighboring communities, and the growing local interest in the
sport; and added the figure skating club invested in the current sound system at Ames Arena.
The Council directed staff to move forward with the proposed agreements with both the Lakeville
Hockey Association and Heritage Figure Skating Club.
City Council Work Session Minutes, January 28, 2019
Page 5
8. Committee/ City Administrator Updates
Council Member Hellier indicated the City's personnel committee met to interview a candidate
from Chanhassen for the Public Works Director position.
Mayor Anderson attended a Mayor/ Manager meeting which provided a legislative preview.
Mr. Miller stated the Lakeville Public Safety Committee would be meeting in February to
preliminarily review the policy for police body cameras, passed out the upcoming schedule for
the advisory board interviews, placed a copy of the City Council Rules of Procedure in Dropbox
for the Council's review, informed he is participating in testimony for Metro Mobility, and
reminded the 2019 Municipal Legislative Breakfast would be held on Friday, February 15.
Council Member Lee will be attending the upcoming Hamburg community neighborhood
meeting to listen in to resident concerns and questions about the development.
9. The meeting adjourned at 9:18 p.m.
submitted,
City Clerk Douglas P. Anderson, Mayor