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HomeMy WebLinkAbout2013-07-30 CC MINat THE OINTNSLACE Of MINNESOTA CITY COUNCIL MEETING MINUTES July 30, 2013 REGULAR MEETING 4:30 P.M. Mayor Harycki called the meeting to order at 4:41 p.m. Present: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Absent: None Staff present: City Attorney Magnuson Fire Chief Glaser Police Chief Gannaway Public Works Director Sanders Finance Director Harrison Community Development Director Turnblad Administration Secretary Manos OTHER BUSINESS Discussion on use of TIF for reconstruction of Wolf Buildings as a Boutique Hotel Community Development Director Turnblad introduced developers interested in purchasing the Joseph Wolf buildings for use as a boutique hotel and possible brewery. Mark Finneman, architect, provided an overview of the development plans. The goal is to use as much of the existing building as possible. The development includes everything but the corner shop which is under different ownership. The courtyard between the two original buildings will be filled in to provide more guest rooms. There will be valet parking with as many onsite parking spaces as possible. The concept will be presented to the HPC on August 5. Troy Hoekstra, financial consultant, stated that because historic reconstruction is more expensive than new construction, $1.15 million in TIF is being requested. If nothing is done with this property in the next 18 -24 months, it will no longer make economic sense to renovate. The development team is looking at a 37 -room hotel; if they lose more than two or three rooms, it would not work, economically. This is a $9.4 million project. Some form of city, state or federal financial assistance is needed to make the project bankable. City Attorney Magnuson reminded the Council that the developers have not yet submitted a formal proposal or pro- forma. City Council Meeting July 30, 2013 Mr. Hoekstra responded that the developers will be happy to provide pro -forma once they get firm construction costs. Mayor Harycki commented that he would need more information in order to evaluate the request. He continued by stating that he wants to be careful not to subsidize one group while other groups are struggling through conventional financing. Councilmember Menikheim agreed that the project is interesting and he wants more information. He added that the ongoing downtown revitalization will require entrepreneurs who are ready and willing to invest in our downtown. He felt that this project would be beneficial for Stillwater to become more of a 12 -month city. Councilmember Kozlowski stated that it is a great project; he just wants to make sure there is a benefit to providing TIF. City Attorney Magnuson pointed out that these types of development are notoriously risky, so what the City has done historically on bigger projects is create a separate redevelopment district with pay -as- you -go assistance to reimburse for certain expenses. This eliminates risk to the City. Mayor Harycki added that he would like to hear more about the existing structural situation, what is at risk, and felt that a tour would be beneficial. STAFF REPORTS Police Chief Gannaway reminded the Council and audience of Night to Unite, Tuesday, August 6 with events at Washington Square Park. Fire Chief Glaser informed the Council that July has been an active month for fires. Also the Department will conduct live fire training this weekend. Community Development Director Turnblad reported that a soft rollout of the downtown walking tour podcasts of historic properties will be on the City's YouTube channel this summer; two state grants are pending for residential neighborhood walking tours. Public Works Director Sanders reviewed progress on the Corps of Engineers downtown project which is expected to be completed at the end of August, and when completed the parking lots should be reconstructed from Nelson to Mulberry Streets. The parking lot north of Mulberry has raised issues with the MPCA so it has been eliminated from the project and may be constructed in the spring. He indicated that the permit to harvest milfoil on Long Lake was denied by the DNR; algae on McKusick Lake is not that bad right now so there has not yet been any treatment. He also stated that the Brown's Creek Watershed District is beginning work in the annexation area on Morgan Avenue where there are two ponds, one of which needs excavation for sediment, and they have asked the City to cost -share for about $2,300. Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to contribute $2,300 for the excavation of the pond. All in favor. City Attorney Magnuson noted that the unit on the corner of the proposed boutique hotel project is his client. If the potential for conflict of interest arises, he will inform the Council. Page 2 of 6 City Council Meeting July 30, 2013 ADJOURNMENT The meeting was recessed at 5:38 p.m. RECESSED MEETING 7:00 P.M. Mayor Harycki called the meeting to order at 7:05 p.m. Present: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Staff present: 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. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Human Rights Commission Award Presentation - Sara Damon Mayor Harycki read the proclamation commending Sara Damon, H2O for Life /Water for South Sudan. Motion by Councilmember Kozlowski, seconded by Councilmember Polehna, to adopt Resolution 2013 -116, Stillwater Human Rights Award — Sara Damon. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Nays: None APPROVAL OF MINUTES Motion by Councilmember Kozlowski, seconded by Councilmember Polehna, to approve the July 16, 2013 regular meeting minutes. All in favor. OPEN FORUM Mike Robinson, 801 West Pine Street (The Elephant Walk B & B), commended the Engineering Department on the street improvement project. He asked for more aggressive policing in regard to the problem of motorcycle and vehicle noise in town. Chief Gannaway stated the City has recently begun doing additional motorcycle enforcement. Page 3 of 6 City Council Meeting July 30, 2013 CONSENT AGENDA Resolution 2013 -117, directing payment of bills Board of Water Commissioners Financial Statement Possible approval to purchase of cutting edges for plows Resolution 2013 -118, accepting work and ordering final payment for Main Street Pedestrian Walkway Possible approval to purchase computers — various departments Possible approval of Sanitary Sewer adjustments Resolution 2013 -119, approving estimate for grading of Millbrook Park Ballfield Resolution 2013 -120, approving estimate for Lowell Park Amphitheater grading Councilmember Menikheim requested that the Board of Water Commissioners Financial Statement be removed from the Consent Agenda. Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt the Consent Agenda, without the Board of Water Commissioners Financial Statement. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Nays: None Councilmember Menikheim commended the Water Board and Department for its excellent service. Motion by Menikheim, seconded by Kozlowski, to accept the Board of Water Commissioners Financial Statement. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Nays: None PUBLIC HEARINGS There were no public hearings. UNFINISHED BUSINESS Consideration of Chamber of Commerce's request for Downtown studies Mayor Harycki summarized City Administrator Hansen's memo to the Council, in which he recommended against establishing a formal entity such as an Economic Development Authority, Housing Redevelopment Authority, or Port Authority. He continued that the memo went on to state it is the City Administrator's belief that the City could benefit from an advisory group lacking formal power, such as an economic development commission, if it is temporary and authorized for a two -year time period. The memo also stated that the City Administrator agrees that now is an opportune time to plan for changes that Stillwater is about to undergo, but does not recommend awarding a contract for data studies to Buxton as requested by the Chamber. Councilmember Menikheim stated he would like to hear more from each potential vendor to hear these ideas developed further. Page 4 of 6 City Council Meeting July 30, 2013 Councilmember Weidner suggested voting on the request for funding of the Buxton study, since it has been before the Council twice before. Councilmember Menikheim responded that he is not in favor of contracting Buxton for the study, but he would like the staff recommendation to be more objective. He would like to use the next three weeks for Downtown Revitalization Committee and staff to start working together as a partnership. Mayor Harycki commented that staff could be directed to keep progressing on this and come back with some recommendations. He disagreed with Mr. Hansen's recommendation that the committee should be temporary for two years. Councilmember Kozlowski expressed a preference that recommendations to the Council come from a formalized Economic Development Commission. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to deny the request for funding for downtown studies as previously presented by the Chamber. Menikheim asked that the record note that he is okay with voting in favor of the motion as long as the study is still an open possibility in the work to be done in the next three weeks. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Nays: None Discussion on RFP for Community Festival Community Development Director Turnblad presented an RFP for a summer community festival. Comments from Councilmembers have been included. He will try to get it distributed this coming week. Councilmembers Kozlowski, Polehna and Weidner agreed that it should include local civic and nonprofit groups. Councilmember Menikheim urged the Council to think of Stillwater as a 12 -month city and that maybe events could take place each season to draw visitors year - round. He views a summer event as a first step. Councilmember Polehna stated he would like to see an event encompass all of Lowell Park. Mayor Harycki asked if there is consensus on whom the event will be marketed to, and Community Development Director Turnblad responded that he intended to concentrate on the greater Stillwater area, but not ignore the metropolitan area. He will reword it as discussed and send it out next week. NEW BUSINESS There was no new business. COUNCIL REQUEST ITEMS Mayor Harycki commended Public Works Director Sanders and the Department on the street projects. Page 5 of 6 City Council Meeting ADJOURNMENT July 30, 2013 Motion by Councilmember Kozlowski, seconded by Councilmember Menikheim, to adjourn the meeting at 7:59 p.m. All in favor. ATTEST: Nancy Manos, inistration Secretary Micha 1 Polehna, Vice Mayor Resolution 2013 -116, Stillwater Human Rights Award — Sara Damon Resolution 2013 -117, directing the payment of bills Resolution 2013 -118, accepting work and ordering final payment for Main Street Pedestrian Walkway Resolution 2013 -119, approving estimate for grading of Millbrook Park Ballfield Resolution 2013 -120, approving estimate for Lowell Park Amphitheater grading Page 6 of 6