HomeMy WebLinkAboutCity Council Minutes 03-21-2006 Special 1Adopted Minutes
Special Council Meeting
March 21, 2006
Mayor Johnson called a Special Meeting of the Plymouth City Council to order at 6:00 p.m. in
the Meeting Room A and B of City Hall, 3400 Plymouth Boulevard, on February 28, 2006.
COUNCIL PRESENT: Mayor Johnson, Councilmembers Hewitt, Bildsoe, Slavik, Stein, Willis,
and Bildsoe.
ABSENT: None.
STAFF PRESENT: City Manager Ahrens, Administrative Services Director Hahn, Financial
Analyst Kohn, Community Development Director Hurlburt, Park and Recreation Director Blank,
Public Works Director Cote, Recreation Superintendent Evans, Recreation Supervisor Lauer, and
City Clerk Paulson.
Park Needs and Funding
Park and Recreation Director Blank discussed the immediate need to acquire property for park
development. He illustrated the existing park system plan that was adopted in 1980, and in that
plan it was proposed that there would be 10 playfields. He stated the majority of the funding for
the current playfields has come from park dedication funds. He stated during the past several
years, the City each year has presented purchase offers to property owners in the Northwest
Plymouth area to acquire park property, but no offers have been accepted. In the meantime, the
price of property continues to increase. He illustrated a number of charts regarding school
districts' population trends, participation numbers in youth athletic associations, use of the
current playfields, etc. He stated there has been a 12% increase from 2000 to 2005 on the use of
the playfields as well as an increase in the lacrosse program, which is a fairly new sport.
Currently, that sport isn't sanctioned by the Minnesota State High School League, but once that
occurs, that creates another youth athletic program, which drives the demand for more athletic
facilities.
He spoke of the two areas for discussion this evening, which would be the acquisition of 40 acres
for the 10th playfield and 23 acres for the corridor for the Northwest Greenway. Financial
Analyst Kohn added it would cost approximately $8 million to $12 million to acquire the 40
acres for the 10th playfield and $4.5 million to $7 million to acquire the 23 acres for the corridor.
He stated the price of land continues to increase, and currently property is selling for $200,000-
300,000 per acre. He stated these amounts could increase up to $2 million per year.
He stated that if the Council desires to acquire land for a 10 playfield and Northwest Greenway
in the near future, there are three alternatives that could be considered. Two of the alternatives
involve bond issues and the other would be internal bonding. The first bonding alternative
would be an appropriation revenue bonds. This alternative has the advantage of not requiring a
delay for a November referendum. It would be most appropriate for acquisition of the 10[11
playfield because it would enable the City to use park dedication fees to pay the debt service. On
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Special Meeting of March 21, 2006
Page 2 of 3
the downside, cash flows from park dedication fees could only support approximately $6 million
in bonds. This might not be enough if property needs to be purchased at the high end of the price
range.
He stated the second option would be a general obligation bond that would be used for all the
properties, but would require a question on a general election ballot. Since the Northwest
Greenway is of good benefit to the City as a whole, a general obligation bond would be a good
fit since it is paid by general tax proceeds on all taxable property.
He stated the third option would be internal borrowing. This would be the most appropriate on
the 10`h playfield site because it is immediate and could be paid back in park dedication fees.
The structure of internal borrowing would be more flexible than annual appropriation revenue
bonds but would still be constrained by the cash flow of park dedication fees.
Councilmember Willis asked what sources of funds would be used for the internal funding
option. Financial Analyst Kohn replied staff would borrow funds against the investment pool. It
would basically be a co -mingling of investment funds that are on hand.
Councilmember Slavik asked if there are any drawbacks in increasing the park dedication fee as
there are a number of communities that have a higher fee than the City's. Park and Recreation
Director Blank replied he wouldn't foresee any drawbacks. He added that the acquisition of the
Northwest Greenway was never factored in with the park dedication funds. Therefore, there
needs to be an alternative funding source.
Councilmember Willis stated he would like to review sales transactions of properties in the
Northwest Plymouth area. This could give the Council a feel on where land values aren't
appreciating so rapidly.
Mayor Johnson asked why the City hasn't pursued working with the Wayzata School District on
the 20 -acre site that they own for the l Ota' playfield. Park and Recreation Director Blank replied
staff has evaluated the location, but after one subtracts the 10 acres for the building and the
woods, there would only be 10 acres remaining and that wouldn't meet the City's needs.
Councilmember Hewitt asked if the funds from the community improvement fund could be used
for any of this property acquisition. Financial Analyst Kohn replied there is currently $6.9
million in that fund, and the goal is to maintain a balance of $5 million in that fund. Interest
earnings are the only revenue source for this fund.
Mayor Johnson asked if there could be some type of partnership with either the cities of Medina
or Corcoran for facilities on the east side of their cities since many of their residents currently
use Plymouth's facilities. Councilmember Slavik added that perhaps the recreation fees could be
increased for non-residents.
Park and Recreation Superintendent Blank noted that on the northeast and east sides of
Plymouth, many residents are using the Maple Grove, New Hope, and Golden Valley facilities as
well.
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Special Meeting of March 21, 2006
Page 3 of 3
Councilmember Bildsoe asked if staff has contacted Speak the Word Church on whether there
could be a partnership with their property that they own for a 10`x' playfield. Park and Recreation
Director Blank replied staff needs to know the guiding of that property which would be part of
updating the Comprehensive Plan.
The Council directed staff to prepare a report for the Council on a possible bonding scenario, the
election schedule for the General Elections in 2006 and 2007 as well as the pros and cons of
placing a general obligation bond question on the ballot.
Adjournment
Mayor Johnson adjourned the meeting at 7:05 p.
Sandra R. Paulson, City Clerk