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HomeMy WebLinkAbout2013-02-19 CC MIN' 1�vater 1YF YIYTY ►IA CE •f YIYYEIOOA CITY COUNCIL MEETING MINUTES February 19, 2013 REGULAR MEETING 4:30 P.M. Mayor Harycki called the meeting to order at 4:32 p.m. Present: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Staff present: City Administrator Hansen City Attorney Magnuson Fire Chief Glaser Police Chief Gannaway Public Works Director Sanders Finance Director Harrison Community Development Director Tumblad Administration Secretary Manos OTHER BUSINESS VistaTek TIF assistance proposal Community Development Director Tumblad explained that the City has been working with Vista Technologies (VistaTek) of Vadnais Heights to encourage them to relocate their expanding injection molding company to the vacant UFE site on Greeley Street. As an incentive to the manufacturing company to move to Stillwater, staff has offered (contingent upon City Council approval) a Tax Increment Financing loan of $250,000. The loan would be forgivable if after five years the level of employment stays at or above 35 full -time equivalent employees. The highlights of the proposal include: 1) By July 1, 2013, VistaTek expects to employ the equivalent of 28 full time people on site. By July 1, 2014 this would increase to 35; 2) On January 1 of 2015 and each subsequent year until 2019, VistaTek will report the number of FTE employees it has on site. If the 35 minimum FTE jobs are maintained that year, then no payment to the City would be required. If in a given year employment falls below the minimum requirement, then a pro -rated portion of that year's $50,000 TIF loan value would have to be repaid to the City. 3) On January 1, 2019 if VistaTek still owns the building and employs the required minimum number of employees, then the loan is forgiven in full. 4) A check for $250,000 would be provided at the time of closing to the title company. Councilmember Weidner asked if the economic impact is quantifiable, and Community Development Director Turnblad responded that the kinds of economic impacts the City will experience are not only a re -used building, but also building improvements which will increase the tax value, future company expansion, and high paying jobs. City Attorney Magnuson added that former City Planner Pogge did an analysis estimating each job is worth $8,200 to the community annually. City Council Meeting February 19, 2013 Community Development Director Turnblad explained there are environmental issues, with estimated clean -up costs of $1 million which the current landowner is funding. If the property is not sold, there is less incentive to clean up the site. If the City does not provide support, the proposal will fall apart because banking institutions are seeking reassurance that the project will proceed. City Attorney Magnuson stated that the TIF incentive is justifiable by State law, since the industrial site has been vacant or underutilized for many years and the vacancy is due in part to environmental issues associated with industrial contaminants. With clean -up efforts underway and the proposed TIF loan, VistaTek would be able to obtain financing to purchase the building and relocate here. Councilmember Menikheim asked if the deal could fall through if the money for the clean-up is not available. Dan Mishek, one of three family owners of VistaTek, explained that the TIF financing would help with renovations such as making the building handicapped accessible and repairing the roof. He stated it will cost around $200,000 to move equipment to the site. The MPCA is involved with the pollutant clean -up which is now underway due to the interest in the sale of the site, and will continue to follow up with the present property owners. Councilmember Kozlowski asked why not use a future tax abatement rather than a loan, and why tie the number of jobs into this agreement, and Community Development Director Turnblad responded that jobs are relevant because the City's TIF policy links TIF to job creation. For every job that the company fails to create of the target number of 35, staff is suggesting the penalty be pro -rated to whatever percentage of the 35 jobs is failed to be met that year. The bigger risk is that they would go out of business, and then no one would be employed, and the City would get 100% of the guarantee. Councilmember Weidner inquired if the spirit of the TIF policy regarding jobs is about creating jobs in Stillwater or bringing skilled workers to live in the community, and Community Development Director Turnblad answered that it is all those things - bringing good jobs and people to the City, rather than having vacant buildings. Mayor Harycki noted that if an employer comes into the region or the valley, all surrounding communities win. Councilmember Weidner indicated that he is happy someone is looking at the building but concerned about the upfront risk to the City. He asked how the company anticipates adding 35 jobs in a year. Mr. Mishek responded that in general, jobs are coming back to the U.S., boosting local manufacturing which is alive and well. He believes the estimated numbers are conservative estimates. He referred to the current push to get kids involved in engineering and manufacturing. They give tours of the facility, scholarships, work with robotics in high schools and try to be involved with the community. Ideally they would be in the facility by July. City Administrator Hansen reminded the Council that all economic development for cities and states comes with risk. Staff has tried to minimize the risk by tying the loan to a mortgage and a personal guarantee. Councilmember Weidner pointed out that he understands risk and is seeking more quantifiable answers to how this will enhance the community. He would love to have the business here and is simply asking questions to get more information before deciding. Page 2 of 9 City Council Meeting February 19, 2013 Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adopt Resolution 2013 -022, Authorizing a Loan Agreement with MAVACK, LLC. Ayes: Councilmembers Polehna, Menikheim, and Mayor Harycki Nays: Councilmembers Weidner and Kozlowski Presentation of Special Event Survey - Readex Michele Hanson of Readex presented the views of respondents toward a new community event to replace Lumberjack Days. A stratified sample was done to look at results by business versus resident and within different zones. 66% of the community members support the creation of a replacement event for Lumberjack Days; 16% oppose it. About half the community stated they want a celebration that is smaller than Lumberjack Days and the other half stated they want something the same size or larger. Residents were slightly more likely than businesses to want something smaller. Mayor Harycki noted the City used the proceeds from the CVB tax to pay for the survey. ADJOURNMENT The meeting was recessed at 5:55 p.m. REGULAR MEETING 7:00 P.M. Mayor Harycki called the meeting to order at 7:01 p.m. Present: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Staff present: City Administrator Hansen City Attorney Magnuson Fire Chief Glaser Police Chief Gannaway Public Works Director Sanders Finance Director Harrison Community Development Director Turnblad Administration Secretary Manos PLEDGE OF ALLEGIANCE Mayor Harycki led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Motion by Councilmember Kozlowski, seconded by Councilmember Menikheim, to approve the February 5, 2013 regular and recessed meeting minutes. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Presentation of Miss Teen Washington County - Heather Huna Mayor Harycki introduced Miss Teen Washington County, Heather Huna. Page 3 of 9 City Council Meeting February 19, 2013 Gabby Taylor, Miss Teen Minnesota International 2012, presented Ms. Huna with her banner and crown. Ms. Huna indicated her platform is "Music Matters." She thanked the community for supporting school music programs. Proclamation: John W. Jackson, aka Bud Fowler Day Brent Peterson, executive director of the Washington County Historical Society, explained the history of John W. Jackson, aka Bud Fowler, the first professional black baseball player, who played in the Northwestern League with the Stillwater, Minnesota Club in 1884. Mayor Harycki read a proclamation honoring the pioneer spirit and the determination of John W. Jackson, aka Bud Fowler, and proclaiming February 26, 2013 as John W. Jackson, aka Bud Fowler Day. St. Croix River Crossing Update - John Chiglo Engineer John Chiglo informed the Council that the first letting for the bridge is a week from Friday. Work will start mid to late April. He presented simulations of how the bridge will look. Highway 95 will be realigned to the west and will have more direct access from Highway 36 for eastbound traffic. Frontage roads along Highway 36 will be reconstructed beginning sometime in April. When Highway 36 and 95 are under construction there will be a single lane of traffic in each direction. MnDOT is committed to maintaining access to businesses and homes. Intersection closures (north -south only) at Osgood and Oakgreen/Greeley will be allowed for 12 calendar days. MnDOT has identified timeframes that the frontage roads may be under construction: 50 calendar days for the north frontage road, 70 calendar days for the south frontage road. MnDOT will coordinate with emergency services throughout the process to minimize service disruption to the greatest extent possible. Wisconsin is about to start purchasing right of way. MnDOT is in the process of constructing the parking lot at Club Tara. The Scenic Overlook will be rehabilitated this summer. Signals from 694 along Highway 36 all the way to Stillwater will be connected by fiber optic. Later this year, landscaping contracts will be coordinated with the cities and counties involved in the project. Final contract completion with conversion of the lift bridge and completion of the loop trail in Wisconsin will occur in 2017. To date approximately $57 million has been spent on the project. The new contract was bid at $52 million which is in addition to the $57 million spent to date. Final design for the bridge is about 60% complete. Visuals will be done to show what people can expect to see on the river when the bridge is built. There will be public meetings and extended office hours at least one evening a week. He urged the Council to tell any frustrated constituents to call MnDOT to get their concerns addressed as soon as possible. Councilmember Weidner expressed concern about getting people downtown in the summer, and Mr. Chiglo acknowledged there will be congestion with a single lane in each direction. No detours are planned. Councilmember Weidner asked if there is anything that can be done with the bridge schedule to alleviate congestion. Mr. Chiglo responded that MnDOT could look at it, but getting the lift bridge schedule changed would be very difficult because there are many agencies that determine the schedule. Mayor Harycki recognized there are alternative ways to get into Stillwater. He commended Mr. Chiglo for his open communication with business owners. Page 4 of 9 City Council Meeting February 19, 2013 Mr. Chiglo stated MnDOT anticipates opening the bridge to traffic in the fall of 2016; the date probably won't be known till late summer of 2016. He added that open houses and meetings will be held with local groups; MnDOT also is coordinating with the science, technology, engineering and math curriculum (STEM) with the school districts in the area to expose the students to real -world applications of STEM curriculum. OPEN FORUM There were no public comments. STAFF REPORTS Police Chief Gannaway informed the Council that Wold Architects have the initial design nearly completed and will present it to the Council at the 4:30 session of the next meeting. Fire Chief Glaser reported that he attended the Governor's Homeland Security and Emergency Management Conference last week. The National Weather Service forecast does not indicate great concerns for St. Croix River flooding this year; however, the MN DNR reported that the potential for wildfire is high as the whole state is in a severe drought condition. He acknowledged the snowmobile tragedy on the St. Croix River this weekend. Personnel worked for three and a half hours trying to recover the individual that went into open water and did everything they could to revive him. It was a very sad day for the City of Stillwater. Community Development Director Tumblad informed the Council that Melissa Douglas, the interim city planner, is available Monday 10 a.m. to 2 p.m., Wednesday all afternoon, and Thursday mid - morning through the afternoon, and by voice mail. Her number is 430 -8829. Public Works Director Sanders stated the Corps of Engineers plans on opening bids March 7 and awarding the contract April 8 for construction to begin mid - April, with an August 30 completion date. There will always be access to the park and to the riverfront. He also noted that Thursday, February 28 will be Wenck's last group meeting with the lake association on the aquatic management plan. In addition, Brown's Creek Watershed District will filter water on the west tributary of Brown's Creek through an iron filter to remove the phosphorus. This requires a cooperative agreement, which is on the Consent Agenda, because it involves City property. CONSENT AGENDA Resolution 2013 -023, directing payment of bills Resolution 2013 -024, approval of Cooperative Agreement between City of Stillwater and BCWD for Settlers Glen Iron -Sand Filtration Project Possible approval to purchase new truck - Engineering Department Resolution 2013 -025, approval of architectural services for Lowell Park Bathroom Project Resolution 2013 -026, approval of 2012 -2014 Labor contract between the City of Stillwater and American Federation of State, County and Municipal Employees Minnesota Council No. 5, Local 517, AFL -CIO , Motion by Councilmem ber Menikheim, seconded by Councilmember Kozlowski, to adopt the Consent Agenda. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Nays: None Page 5 of 9 City Council Meeting PUBLIC HEARINGS February 19, 2013 Case No. 2013 -06. A public hearing to review a request from the City of Stillwater to consider a minor revision to Chapter 34 related to building demolitions. Community Development Director Turnblad reviewed the request. To alleviate the problem of inadequate time to complete a local designation study, staff and the HPC recommends that the current 180 -day time limit be extended to 270 days, giving the City sufficient time to hire a firm to complete a designation study within a reasonable budget. This is the first reading. There were no public comments during the public hearing. Councilmember Menikheim expressed concern about the possibility of holding up someone who wants to demolish something on their property. He stated he understands the purpose of the ordinance but questions the burden to the property owner. Mayor Harycki indicated that he feels strongly about preserving properties. If a structure has stood for 100 years and an owner believes it should be knocked down, the City should be given some time to decide if that is best. Councilmember Kozlowski reminded the Council that it will only stretch it out if the Council does not approve the demolition permit. Councilmember Weidner asked what a designation study costs, and Community Development Director Turnblad replied it shouldn't cost more than $3,000 to $6,000. The bid got to over $12,000 per house on the St. Paul Lutheran case due to the rushed timelines. The $5,000 escrow required of the property owner should cover the studies most of the time. Councilmember Polehna expressed concern with making a homeowner pay $5,000 to be allowed to tear down a structure on their property. He added he was uncomfortable with the St. Paul Lutheran homes demolition request because he does not like to oppose commissions' recommendations. City Administrator Hansen commented that he worries about putting people in charge of the decision who are predisposed to think everything has historical value. Councilmember Weidner noted this could hold up an entire project for up to 270 days if, for instance, there is one potentially significant home involved in a large development. He asked if there are options for the property owner to choose their own firm to do the designation study, for a faster review. City Attorney Magnuson stated he suggested to former City Planner Pogge, when drafting the ordinance, to allow the City Planner to make some threshold determination of whether a property might have significant historical value which could shorten the process. Mayor Harycki noted that having only the extreme cases, where it's too close to call, trigger the study, might be better for citizens since it is not as time consuming or expensive for clear cut cases. Community Development Director Turnblad responded that staff wants to avoid having to make judgment calls that could be debated about whether a structure is worth saving as that would put a controversial decision at an administrative level. City Attorney Magnuson reminded the Council there is a right to appeal any administrative decision. Page 6 of 9 City Council Meeting February 19, 2013 Councilmember Menikheim suggested returning the ordinance to the HPC to ask them to rework it and include the points discussed during the meeting. Motion by Councilmember Menikheim, seconded by Councilmember Weidner, to table the ordinance and send it back to the HPC. All in favor. NEW BUSINESS Discussion concerning options for using event survey results Mayor Harycki explained that the City Council commissioned ReadEx Research to conduct a survey of Stillwater residents and businesses to sample the community's opinions on events. The two main objectives were: 1) To gauge whether Stillwater wants a community event to replace Lumberjack Days, and if so, what activities would be preferred; and 2) To determine the level of support for events in general. He noted that results indicated about two - thirds of Stillwater residents favor some sort of summer event. Now it falls upon the Council to determine what that should be. Councilmember Menikheim stated he doesn't think there is any way to hold an event this summer due to timing. He feels the City should slow down and do it right. He suggested a group should be formed to be charged with coming up with a festival. Mayor Harycki noted a downtown business owner called him earlier today offering to underwrite a summer festival for this year if the City wants to do it. His bigger concern is that there will not be a park if the Corps of Engineers project proceeds. Councilmember Polehna reminded the Council that the parking lots are going to be redone and there will be work on the grass and irrigation systems. He suggested the Council have a workshop and talk about it as a group. Councilmember Weidner agreed a workshop may help determine if Stillwater should be in the event - planning business. He found survey results interesting and wants the public to understand the potential for having a well -run event. Councilmember Polehna stated he would like some research on what such events bring into the community and how other communities handle events. Mayor Harycki recalled staff did a report on other communities' events a few years ago. City Administrator Hansen observed that Minneapolis, St. Paul, and Duluth probably have some RFPs for events which City staff could request as examples. Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to authorize a workshop for the second meeting in March on whether and how to have a Citywide festival. All in favor. Possible approval of Iron Man Special Event Community Development Director Turnblad reported that Hostelling International, USA wants Stillwater and the St. Croix Valley to be the venue for its 47th annual charity cycling event in Minnesota. There would be an estimated 4,000 -6,000 participants with some of the looped routes going through Stillwater spread out throughout the day. City staff feels no contract is necessary because City services are not impacted other than the need for traffic control at several key intersections. As this would be the only City resource used, Police Chief Gannaway can work out a price for traffic control without the need for a contract. Page 7 of 9 City Council Meeting February 19, 2013 Motion by Councilmember Menikheim, seconded by Councilmember Weidner, to approve the Iron Man Special Event with the condition that organizers work with Police Chief Gannaway. All in favor. Possible approval of feasibility study and calling a hearing on 2013 Street Improvement Project (Project 2013 -02) Public Works Director Sanders explained the project involves for mill and overlay: Churchill from Third Street South to Greeley Street; Pine Street from Third Street South to Greeley Street; and Myrtle Street from Main Street to Third Street South. Street reconstruction areas are Pine Street from Broadway to Third Street South, Pine Street from Holcombe to Greeley Street, William Street from Willard to Pine Street, and Martha Street from Willard to Pine Street. The total estimated cost of the project is $1,263,400.92 including design, survey, inspection, administration, and contingencies. The project will be financed through City funds and street assessments at 50150. The proposed schedule is: public hearing March 19; approve plans April 2; award bid May 7; construction May through August; and assessment hearing September 17. Mayor Harycki asked if it would be possible to include sidewalks on the portion of Everett Street near the junior high athletic field in this project. Public Works Director Sanders agreed to talk with the contractor about this. Councilmember Polehna noted he is hearing lots of complaints about bump -outs at intersections. Public Works Director Sanders replied that rain gardens are the best options for meeting water quality requirements. They have to be done someplace, and will be put in locations where they are visible to drivers. Councilmember Weidner asked about the cost - effectiveness of assessments. City Administrator Hansen replied the City is working with TIF funding which may last another five years but this mechanism will need to be adjusted in the future. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt Resolution 2013 -027, Receiving Report and Calling Hearing on 2013 Street Improvement Project (Project 2013 -02). Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Nays: None Possible approval of feasibility study and calling_ for a hearing on County Road Improvement Project Project 2013 -04) Public Works Director Sanders explained the feasibility study. The County is planning on doing Orleans Street from Fourth Avenue South to Fourth Street South. Project estimate is $350,000. The cost to the City will be $39,000 after assessing property owners for their portion of costs. Motion by Councilmember Kozlowski, seconded by Councilmember Polehna, to adopt Resolution 2013 -028, Receiving Report and Calling Hearing on County Road Improvement Project (Project 2013 -04). Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Nays: None Page 8 of 9 City Council Meeting COMMUNICATIONS/REQUESTS February 19, 2013 Mayor Harycki noted that Interim Planner Douglas has previous experience working on a sign ordinance in another community. He would like to have Ms. Douglas review the City's sign ordinance for possible revisions in the industrial park and Highway 36 area. COUNCIL REQUEST ITEMS Councilmember Polehna noted the passing of Police Officer Josh Lynaugh who grew up in Stillwater, which was a tragic loss for Officer Lynaugh's family, the community and the City of St. Paul. He would like to send a sympathy card from the City Council to Off cer Lynaugh's family. ADJOURNMENT Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adjourn the meeting at 9:08 p.m. All in favor. ATTEST: Larry D. Hansen cting City Clerk Resolution 2013 -022, Authorizing a Loan Agreement with MAVACK, LLC Resolution 2013 -023, Directing the payment of bills Resolution 2013 -024, Approval of Cooperative Agreement between City of Stillwater and BCWD for Settlers Glen Iron -Sand Filtration Project Resolution 2013 -025, Accepting proposal from Larson Architects for architectural services for Lowell Park Bathroom Project Resolution 2013 -026, Approval of 2012 -2014 Labor Contract between the City of Stillwater and American Federation of State, County and Municipal Employees Minnesota Council No. 5, Local 517, AFL -CIO Resolution 2013 -027, Receiving Report and Calling Hearing on 2013 Street Improvement Project (Project 2013 -02) Resolution 2013 -028, Receiving Report and Calling Hearing on County Road Improvement Project (Project 2013 -04) Page 9 of 9