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HomeMy WebLinkAbout2010-08-05 CC Packet Special Meeting Packet AGENDA CITY COUNCIL MEETING Council Chambers, 216 North Fourth Street August 5, 2010 SPECIAL MEETING 7:30 A.M. 7:30 A.M. AGENDA CALL TO ORDER ROLL CALL OTHER BUSINESS 1. Discussion on possible purchase of land for armory/fire station 2. Discussion on sidewalk policy ADJOURNMENT Analysis of Fire Hall Service Area Boutwell and 75th St N a , 1 1 1 , J I . 1.5 2 D Miles Service Area Cumulative Time 0.1 minutes 1 -2 minutes -^�-^ 23 minutes N 34 minutes 4 -5 minutes Prepared for the City of Stillwater by UWRF 5-6 minutes August 2010 6-7 minutes 0 0.5 1 Source: Washington County, City of Stillwater, NCompass �^ °^ 7 -8 minutes 8-9 minutes 1.5 2 D Miles Bill Turnblad To: City Council Cc: Larry Hansen; Stuart Glaser; Diane Ward Subject: Armory shared facility savings Councilmembers, While prepping for tomorrow morning's meeting, I noticed that in Col. Jensen's analysis several potential cost savings were not mentioned. The reason they were left out of his analysis was that he did not have good estimates yet for the amount that other shared items could potentially save the city. The shared items that he did itemized were: 1. Shared workout /physical training facilities $161,064 2. Shared locker room facilities $754,182 3. Classroom and auditorium training facilities $698,615 4. Kitchen /dining facilities $261,729 Those shared facilities have a construction value of almost $2 million, which of themselves would offset the city's probable land costs. But in addition, the city could also potentially reduce or save future fire department construction costs in the areas of grading, erosion control, extension of utilities, emergency power generator, site security, and HVAC. Sorry this information is coming to you so late. Hopefully it will help as you deliberate the project. See you tomorrow morning, 494 Bill Turnblad Community Development Director City of Stillwater 651.430 -8821 (direct) r THE BIRTHPLACE OF MINNESOTA TO: Mayor & Councilmembers FROM: Bill Turnblad, Community Development Director DATE: August 3, 2010 RE: New Armory - Potential Cost Savings if a New Fire station were to Share Facilities Col. Jensen, who is directly involved in armory construction management, had his staff look at the potential cost savings to the Stillwater Fire Department if a new fire station were to share facilities with a new armory facility. They based their work on the points that Chief Glaser made in a memo to the Council several weeks ago. Below is their analysis of each of those shared facility points. 1. Backup generator power National Guard (NG) will provide a generator large enough for their facility. Any additional capacity would be paid for by the city. 2. Parking space for a minimum of 50 personnel. NG will be constructing 178 parking spaces (6,230 SY X $30.00 = $186,900.00 or roughly $1,050 /parking space). Any of those spaces that can be shared by the fire department, rather than constructed exclusively for the fire department will save $1,050 per space. 3. Workout/physical training facilities. NG will provide 800 SF. (800 SF X $201.33 = $161,064.00) 4. Locker room facilities. NG will provide 3746 SF divided appropriately between male /female. (3746 SF X $201.33 = $754,182.18) 5. Classroom training facilities with high quality AV /Audio capabilities, capable of seating 100. NG will be providing 3470 SF (2000 SF in an auditorium setting and 1470 SF in classroom). All will be provided with the latest technology. (3470 SF X $201.33 = $698,615.10) 6. Kitchen /dining facilities. NG will provide 1300 SF fully functional kitchen. (1300 SF X $201.33 = $261,729.00). The kitchen would be used to prepare the noon meal on New Armory August 3, 2010 Page 2 of 6 drill weekends and in some cases the public rents the drill floor with kitchen. If this doesn't meet the needs of the fire department — a separate kitchen would need to be built as city sole use space. 7. Site security. NG Readiness Centers must meet all current Antiterrorism Force Protection Standards. 8. Infrastructure. NG will provide utilities large enough to support the Readiness Center requirements. Any additional capacity would be paid for the city. 9. Emergency Operations Center Development. There is the potential to utilize classroom space depending on what the city envisions the configuration of this space to be. If the desire is to have a permanently equipped EOC — this would likely be city sole use space. If the plan is to convert an existing space into an EOC type facility on an as- needed basis — the classroom space may meet this requirement. 10. F.D facility should be a hardened site capable of withstanding severe weather events. Readiness Centers are designed as hardened facilities and many provide emergency shelters for their communities. bt City of Stillwater, Minnesota TAX IMPACT PROJECT NAME Purchase of Land for New Armory Total Projected Project Cost $900,000 Bond Issue Amount of Issue - Rounded (includes issuance fees): $927,000 Interest Rate: 4.5% Term (years): 25 Yearly Principal & Interest (P & 1) Payment: $62,516 Yearly Debt Levy Impact (Yearly P & I Payment plus the required 5% over levy) $65,642 Calculation of Tax Rate (Debt Service only): Debt Service Impact $65,642 2011 City Taxable Tax Capacity 17,848,425 Tax Rate 0.37% Tax Impact: Taxable Tax Market Value Capacity 100,000 1,000 $3.70 200,000 2,000 $7.40 300,000 3,000 $11.10 400,000 4,000 $14.80 500,000 5,000 $18.50 750,000 8,125 1 $30.06 Assumptions: (1) The tax impact on residential homestead properties does not include reduction for homestead credit. (2) Issuance costs are 3% of the funding amount. (3) Tax capacity is estimated for 2011 (5% DECREASE from 2010). (4) Tax Exempt Capital Outlay Bond 11 City of Stillwater, Minnesota TAX IMPACT PROJECT NAME Purchase of Land for New Armory Total Projected Project Cost Bond Issue Amount of Issue - Rounded (includes issuance fees): Interest Rate: Term (years): Yearly Principal & Interest (P & 1) Payment: Yearly Debt Levy Impact (Yearly P & I Payment plus the required 5% over levy) Debt Service Impact 2011 City Taxable Tax Capacity Tax Rate Tax Impact: Taxable Market Value 100,000 200,000 300,000 400,000 500,000 750,000 Tax Capacity 1,000 2,000 3,000 4,000 5,000 8,125 $927,000 4.0% 20 $68,210 $71,621 $71,621 17,848,425 0.40% $4.00 $8.00 $12.00 $16.00 $20.00 $32.50 Assumptions: (1) The tax impact on residential homestead properties does not include reduction for homestead credit. (2) Issuance costs are 3% of the funding amount. (3) Tax capacity is estimated for 2011 (5% DECREASE from 2010). (4) Tax Exempt Capital Outlay Bond City of Stillwater, Minnesota TAX IMPACT PROJECT NAME Purchase of Land for New Armory Total Projected Project Cost $900,000 Bond Issue Amount of Issue - Rounded (includes issuance fees): $927,000 Interest Rate: 3.5% Term (years): 15 Yearly Principal & Interest (P & 1) Payment: $80,487 Yearly Debt Levy Impact (Yearly P & I Payment plus the required 5% over levy) $84,511 Calculation of Tax Rate (Debt Service only): Debt Service Impact $84,511 2011 City Taxable Tax Capacity 17,848,425 Tax Rate 0.47% Tax Impact: Taxable Tax Market Value Capacity 100,000 1,000 $4.70 200,000 2,000 $9.40 300,000 3,000 $14.10 400,000 4,000 $18.80 500,000 5,000 $23.50 750,000 8,125 $38.19 Assumptions: (1) The tax impact on residential homestead properties does not include reduction for homestead credit. (2) Issuance costs are 3% of the funding amount. (3) Tax capacity is estimated for 2011 (5% DECREASE from 2010). (4) Tax Exempt Capital Outlay Bond PURCHASE AGREEMENT This Agreement is made as of , 2010, between the City of Stillwater, a Minnesota Municipal Corporation ( "Buyer ") and Lake Area Bank, a Minnesota Banking Corporation ( "Seller "). In consideration of this Agreement, Seller and Buyer agree as follows: 1. Sale of Property Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, property legally described on the attached Exhibit "A ". 2. Purchase Price and Manner of Payment The purchase price to be paid for the Property is Nine Hundred Thousand and no /100ths Dollars ($900,000.00) (the "Purchase Price "). The Purchase Price is payable as follows: (a) Ten Thousand and no /100ths Dollars ($10,000.00) as earnest money ( "Earnest Money ") to be deposited with Seller in an interest bearing account upon execution of this Agreement. (b) The balance of the purchase price will be paid on the date of closing as follows: Eight Hundred Ninety Thousand and no /100ths ($890,000.00) in cash or wire transfer of funds. 3. Continizencies The obligations of Buyer under this Agreement are contingent upon each of the following which must occur on or before the dates herein set forth: (a) Representations and Warranties The representations and warranties of Seller contained in this Agreement must be true now and on the date of Closing as if made on the date of Closing as defined in Paragraph 4 below. (b) Title Title must have been found acceptable, or been made acceptable, in accordance with the requirements and terms of Section 6 below. (c) Access and Inspection Seller must have allowed Buyer, and Buyer's agents, access to the Property without charge and at all reasonable times for the purpose of Buyer's investigation and testing. Buyer must pay all costs and expenses of any investigation and testing, must restore the Property, and must hold Seller and the Property harmless from all costs and liabilities relating to the Buyer's activities. Buyer must have been satisfied with the results of all tests and investigations performed by it. (d) Survey Seller will, within a reasonable time after acceptance of this Agreement, locate and flag any survey pins on boundary corners of the parcel. This requirement will not require a new survey to be done by Seller. 4. Closing The closing of the purchase and sale contemplated by this Agreement (the "Closing ") will occur on a business day no later than thirty (30) days after satisfaction of all contingencies set forth in Section 3 Contingencies but in no event later than November 1 st, 2010. Seller agrees to deliver possession of the Property to Buyer at the Closing. (a) Seller's Closing Documents On the date of Closing, Seller will execute and deliver to Buyer the following (collectively, "Seller's Closing Documents "): (i) Deed A Warranty Deed conveying the Property to Buyer. Well Certificate A Well Certificate in the form required by law. (iii) Other Documents /Payments All other documents reasonably necessary to transfer the Property to Buyer. (iv) Assignments Assignments of any leases with any third party with respect to the property that is the subject matter of Purchase Agreement and assignment and transfer of any Security Deposit and advance rent payments made by any such tenant. (v) Buyer's Obli ation On the date of Closing, Buyer will deliver to Seller funds representing the Purchase Price. 5. Prorations Seller and Buyer agree to the following prorations and allocation of costs regarding the Agreement. (a) Title Insurance and Closing Fee Seller will pay all costs of the Title Commitment. Buyer will pay all costs and premiums for an owner's Title Policy, if any, and any fees or charges imposed by any closing agent or company. (b) Deed Tax Seller will pay all state deed tax payable in connection with this transaction. (c) Real Estate Taxes and Special Assessments Real Estate Taxes, if any, payable in the year in which Closing occurs will be pro -rated based upon a calendar year based upon the date of Closing. Special Assessments levied and pending on the date of the Closing, if any, will be paid by Seller at the Closing. 6. Title Examination Title Examination will be conducted as follows: (a) Seller's Title Evidence Seller must, within thirty (30) days after the date of this Agreement, furnish to Buyer a commitment ( "Title Commitment ") for ALTA Form B 1970 Owner's Policy of Title Insurance insuring title to the Property subject to standard exceptions in the amount of the Purchase Price. (b) Buyer's Objections Within 30 days after receiving the Title Commitment, Buyer will make written objections ( "Objections ") to the form and/or contents of the -2- Title Commitment. Buyer's failure to make Objections within such time period will constitute waiver of Objections. Any matter shown on the Title Commitment and not objected to by Buyer will be a permitted encumbrance hereunder. Seller will have 100 days after receipt of the Objections to cure the Objections, during which period the Closing will be postponed, if necessary. If the Objections are not cured within the 100 day period, Buyer's only remedies will be the following: (i) Terminate this Agreement and receive a refund of all Earnest Money and accrued interest thereon; or (ii) Waive the objections and proceed to Closing. 7. Operation Prior to Closing During the period from the date of Seller's acceptance of this Agreement to the date of Closing, Seller will operate and maintain the Property in the ordinary course of business in accordance with prudent, reasonable business standards, including the maintenance of adequate liability insurance. Seller will execute no contracts, leases or other agreements regarding the Property that are not terminable on or before the date of Closing without the prior written consent of Buyer, which consent may be withheld by Buyer at its sole discretion. 8. Representations and Warranties by Seller Seller represents and warrants to Buyer as follows: (a) Existence; Authority. Seller is duly organized, qualified and in good standing, and has the requisite power and authority to enter into and perform this Agreement and Seller's Closing Documents; the documents have been duly authorizaed by all necessary action; such documents are valid and binding obligations of Seller, and are enforceable in accordance with their terms. (b) Environmental Issues Neither Seller nor any agent acting on behalf of Seller has made any representations or warranty concerning any environmental or physical aspect of the Property, and the Buyer is relying solely upon its own inspection, investigation and review. 9. Broker's Commission Seller and Buyer represent to each other that they have dealt with no other brokers, finders or the like in connection with this transaction, and agree to indemnify and hold each other harmless from all claims, damages, costs or expenses of or for any other such fees or commissions resulting from their actions or agreements regarding the execution or performance of this Agreement, and will pay all costs of defending any action or lawsuit brought to recover any fees or commissions incurred by the other party, including "attorney's fees. 10. Survival All of the terms of this Agreement and warranties and representations herein contained will survive and be enforceable after the Closing. 11. Notices Any notice required or permitted will be given by personal delivery upon an authorized representative of a party hereto; or if mailed in a sealed wrapper by United States registered or certified mail, return receipt requested, postage prepaid; or if -3- transmitted by facsimile copy followed by mailed notice; or if deposited cost paid with a nationally recognized, reputable overnight courier, Property addressed as follows: If to Seller: Marc Campbell, President Lake Area Bank 1400 East Highway 96 White Bear Lake, MN 55110 If to Buyer: Larry D. Hansen, City Administrator City of Stillwater 216 North 4th Street Stillwater, MN 55082 Notices will be deemed effective on the date of receipt. Any party may change its address for the service of notice by giving notice of such change ten (10) days prior to the effective date of the change. 12. Miscellaneous The paragraph headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement, and are not to be considered in interpreting this Agreement. This written Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreements between the parties regarding the Property. There are no verbal agreements that change this Agreement, and no waiver of any of its terms will be effective unless in writing executed by the parties. This Agreement binds and benefits the parties and their successors and assigns. This Agreement has been made under the laws of the State of Minnesota, and such laws will control its interpretation. 13. Remedies If Seller defaults in its obligation with respect to title in Section 6, then Buyer's sole remedy will be return of the Earnest Money and accrued interest thereon. If Seller defaults in any other obligation under this Agreement, Buyer may terminate this Agreement and recover its Earnest Money from Seller, or bring an action in the District Court of Washington County, Minnesota, for specific performance of the Agreement. IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the date first written above. SELLER: LAKE AREA BANK, a Minnesota Banking Corporation Its: BUYER: CITY OF STILLWATER, a Minnesota Municipal Corporation Its: -5- EXHIBIT "A" Parcel 1: That part of the West 1/2 of the Northwest 1/4, Section 29, Township 30 North, Range 20 West, described as follows: Commencing at the West 1/4 corner of said Section 29; thence Easterly along the East -West 1/4 line, a distance of 460 feet to the hereinafter referred to 'Point B "; thence continuing Easterly, along said East -West 1/4 line, a distance of 295.8 feet; thence Northerly parallel with the West line of Northwest 1/4 to the point of beginning at the point of intersection with the Northerly right of way line 75th Street North as described on Document No. 345261; thence continuing Northerly, parallel with said West line of the Northwest 1/4 to the center line of Boutwell Road North; thence Northwesterly, along said center line of Boutwell Road North to the point of intersection with a line drawn Northerly, parallel with said West line of the Northwest 1/4 from said 'Point B "; thence Southerly, along said parallel line to said Northerly right of way line of 75th Street North; thence Southeasterly, along said Northerly right of way line to the point of beginning. Together with an easement for ingress and egress over, under and across the part of the West 1/2 of the Northwest 1/4, Section 29, Township 30 North, Range 20 West, described as follows: Commencing at the West 1/4 corner of said Section 29; thence Easterly; along the East -West 1/4 line a distance of 755.80 feet; thence Northerly parallel with the West line of said Northwest 1/4, a distance of 1102 feet, to the point of beginning; thence Northeasterly deflecting to the right 5 degrees 40 minutes, a distance of 355 feet, more or less, to the point of intersection with the center line of Boutwell Road North; thence Northwesterly, along said center line of Boutwell Road North to the point of intersection with a line drawn Northerly parallel with the West line of said Northwest 1/4, Section 29 from the point of beginning; thence Southerly, along said parallel line to the point of beginning. ' r Exhibit "A" Parcel 2: That part of the Southwest Quarter of the Northwest Quarter, Section 29, Township 30 North, Range 20 West, Washington County, Minnesota, described as follows: Commencing at the West quarter corner of said Section 29; thence Easterly, along the East -West quarter line, a distance of 755.80 feet; thence Northerly, parallel with the West line of said Northwest Quarter, a distance of 777 feet to the point of beginning; thence Easterly, at a right angle 373 feet, more or less, to the West line of the East 189.75 feet (11.5 rods) of said Southwest Quarter of the Northwest Quarter; thence Southerly, along said West line to the Northerly right -of -way line of 75th Street North as described on Document No. 345261; thence Northwesterly, along said Northerly right -of -way line to the point of intersection with a line drawn Southerly parallel with the West line of said Northwest Quarter, Section 29 from the point of beginning; thence Northerly, along said parallel line to the point of beginning. Parcel 3: That part of the West 1/2 of the Northwest 1/4, Section 29, Township 30 North, Range 20 West, Washington County, Minnesota, described as follows: Commencing at the West Quarter corner of said Section 29; thence Easterly, along the East -West Quarter line, a distance of 755.80 feet; thence Northerly, parallel with the West line of said Northwest 1/4, a distance of 777 feet to the point of beginning; thence Easterly, at a right angle 373 feet, more or less, to the West line of the East 189.75 feet (11.5 rods) of said West 1/2 of the Northwest 1/4; thence Northerly, along said West line to the center line of Boutwell Road North; thence Northwesterly, along said center line of Boutwell Road North to the point Of intersection with a line drawn Northerly parallel with the West line of said Northwest 1/4; Section 29 from the point of beginning; thence Southerly, along said parallel line to the point of beginning. a ter �� THE BIRTHPLACE OF MINNESOTA City Council Special Meeting DATE: August 2, 2010 TO: Mayor & Council Members RE: Private Use of Downtown Public Sidewalks FROM: Bill Turnblad, Community Development Director INTRODUCTION Every few years the private use of public sidewalks downtown becomes an issue. It is once again a topic of discussion. CHRONOLOGY A chronology of downtown sidewalk policy decisions may be helpful as the topic is reconsidered. Feb 17, 1998 License issued to Savories, Stillwater Grill and Marlene's Deli to serve food on the public sidewalk in front of their businesses. Sept 16, 2003 Council voted to discontinue the license and to discontinue allowing businesses to have outside seating for their restaurants on public sidewalks. Oct 7, 2003 Savories asks Council to reconsider their decision. Staff was directed to meet with Savories to review the request. Dec 2, 2003 City Council votes to reaffirm its decision not to allow outdoor seating on public sidewalks. At the same meeting, the Council directed staff to prepare guidelines for [private] use of public sidewalks. Feb 3, 2004 Council adopted policy on newspaper stand use of public sidewalks. Nov 18, 2008 Council adopted policy on sidewalk signage. ADMINISTRATION OF POLICIES Here is a summary of the current policies and how they are administered: 1. Sandwich board signs — Location, number and size are regulated by written policy. When a complaint is received that a sign does not meet the policy, City planning staff investigates. If the sign is non - compliant, the planning staff asks the sign owner to remove it or modify it to be in compliance. If the sign is not brought into compliance within a reasonable period of time, staff sends a letter Use of DT sidewalks Page 2 asking for compliance. If written notice is not effective, planning staff turns the case over to the Police Department. 2. Newspaper dispensers — If a complaint is received, City planning staff investigates. If the dispenser is non - compliant with the written policy, it is removed from public property and the owner is called by City staff to retrieve their property. 3. General use — Based upon minutes of City Council meetings, the following verbal policy exists. Due to the narrowness of downtown public sidewalks, they are reserved for public facilities, pedestrian circulation, and public amenities. They are not to be put to private commercial uses. Private commercial uses include such things as displaying merchandise for sale, displaying sample merchandise for sale, placing tables and chairs for outside restaurant or bar service, etc. If a complaint is received that the policy is not being followed, then City planning staff investigates. If the complaint seems to be inconsistent with policy, City planning staff asks the business owner to bring the item into compliance. If the item is not brought into compliance within a reasonable period of time, planning staff sends a letter asking for compliance. If written notice is not effective, planning staff turns the case over to the Police Department. It is worth noting that a distinction is made between placing private benches or chairs outside on the edge of the sidewalk for general public use, and placing them outside for private commercial use. If everyone walking down sidewalk is welcomed to use the amenity, it is generally acceptable as long as it leaves sufficient room for pedestrians to safely walk down the sidewalk. If the general public is not welcomed to sit there, or if food or drink is served there, then it is not allowed. bt