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Home My WebLink AboutCity Council Minutes 12-28-1983 SpecialMINUTES SPECIAL COUNCIL MEETING DECEMBER 289 1983 A speelal meting of the Plymouth City Council was called to order by Naycr Davenport at 6:00 p.m. In the Council Chambers of the City Center at 3400 Plymouth iloulevard on December 28, 1983. PRESENT: Ndyor Davenport, Councllmembers Nplls, Moen, and Schnetdev. Assistant City Manager Boyles, Moore, Planner Tremece, Park Director Bldnk, Clerk Houk, ABSENT: None Th re.l nen, Enqlneer and Cl ty MOTION was adde )y Councllmember Schneider, seconded by Councilmimber Threlnen to approve the minutes of the reqular meeting of December 19 as submitted. Motion carried on a Roll Gill vote, five ayes. PU13LIC HEARINGS Mayor Davenport noted that the public heari,^ WAS advertised In the Clty's official newspdper ds well as the Minneapolis Star, Assistant Pity Mdnager Boyles stated that the hearinq ! ji to consider the issuance of $6.700,000 of lndustrldl development revenue bonds for Lynddle Terminal Compdny (Holiday Warehouse) to construct a 125,000 square foot building on a site locdted north of County Rodd 9 at 4445 Ndthan Lane. Lynddle Terminal Company has submitted the required mdterldls. The Council has reculved a repuct from the City Mar:dger regarding that submittal. Mayor Davenport opened the public hedring dt 6:07 p.m. Jerry Jensen, Lyndale Termind,l, Introduced members of the oapany s staff, Robert Flotten, attorney representinq Lynddle Terminal COMp,:ny, isatethatteCity's policy on issuance of IDRp's contains eleven standdrds. It is their position that the compony has complied In all respects In each dnd every one of these standards. Having done so, they believe the Council should grdnt their request. He sumnarized how Lynddle Terminal met each stdndard. MINUTES - REGULAR MEETINGS OF DECEMBER 19 Item 4 PUBLIC HEARING - IDRB REOUEST FOR LYNDALF TERMINAL HOiL.IDAY WAREHOUSE) Item S-A is/ / Specidl Council Meeting December 289 1983 K.je 268 CounctlmeAber Threlnen dsked If the company Intended to build with or without 1DRH flndncing. Mr. Flotten answered that they will. Councllmember Threinen dsked why this request was submitted after the site p.ldn dpprovdl dnd not before ds is the usual procedure. Mr. Flotten answered that the Initial sippositlon by the nelghbors occupied their time. Their representdt.lve discussed the mdtter with the City's staff shortly Oerediter. Counellenember Schneider stdted that d city usudl!y offers IDRR's as do Inducement f%r compdnles to loedte In their city and this seems In re%erse. Mr. Jensen stated the idea of lower findnclnq casts wds not what Induced them to come to Plymouth. He p(%Inted out that tr,ls !s the first t:.me the; Council hds been faced with d request from d retell estdbilshment. He added that the Council's detlon would mdke d stdtement to other reLdil businesses on how they would be treated In the City. Mr. Jensen summarized the be slefits to the City If they would approve the f lndnc.lnq. Counclimember Hells asked if the employees were unionized. Mr. i,enst,n dttswered that they werv, Councilme;mber Nel.ls dsked what Ls the nature of the $2,000,000 request for equipment. Mr. Mickelson answered that the rewiest will cover plpinq, freezer room, display cases; irfrintsratton, meat room equipment, counters, dnd misceilaneous. Mayor Ddve liport Stdteed that Lhls Is the firs;. time 11Wt do exclusively retdl l store has dsked for IDRB f lndncInq. !•lei dddeal he is reatuetdnt to approve this because of the percentage of part time employees anti kite wOtat• scale of the dverdge employee. Mr. Jensen stdted that 50 - 100 employees would be full time. Mdyatr Ddvanport asked the• pdy sed Lt. f r the part time employees. Mr. Jensen answered that their wdges dre: compdrdble and probdbiy better that their competitors, ldrget and K -Mart. ApptoxlmateLy 15% of the employees would be vt minimum wdge. Mayor DdvenpurL stdted that one of the redsnns the Council ha,s not considered IDRB ftndncing for retdit stems In the pdst is bec&.ise3 of the .low wage: sedle. Mr. Jeiiseii stdted that the City's written stdtement does not state this. Mdyor Ddvenport stated he Is concerned about the stdtement the City would send if It were to approve this request In 110t of the federal govectiment's revlrw and possible cutbdek in this type of flndttclnq. Mr. Jensen stdteei thitt It the City has do lnforma- policy reayarding retdi.l business, they should formallze it for everyone's benefit. ISI/ Speclal. Council oketing Dec. -ember 269 11183 Page 269 Councilrember Threinen pointed out that nothlnq In the policy addressts the wages paid nor the hours employees work. Councllmember dells sta%Akd that It is only recently that the State has required titles to have written policies regardtnq IDRB Issuance. Many other cities have adopted similar policies to PlyMouth's and they hove been granting 1DRB's to retail businesses. The dlscusslol should be does the City want to Issue bonds to retall estdbllshments or n+ot. Councllgmber Threlnen stated that bonos should be used to Induce new business and although Holiday Warehouse will build anyway, he would encourage the Council to be liberal In Its Interpretation of the policy and suggested the pulley be Chdnged to reflect the Inclusion of retail business. Counellmember Schneider stated he should be limited to retail or not. used ds an Inducement dnd It Isn't doesn't agree the dlseussion He believes bonds should he necessdry in this case. Cduncilmember Threlnen pointed out that It would be unfair to deny Holldosy's request and give IDRD's to a competltot dt some future date. Mayor Davenport stated he is comfortable with relylnq on the City's history of not approving retail requests. Councllmember Threlnen stated dgdln that If the Cotuicl1 were to Interpret the policy in Its restrictive sense, they should do so In all cases and cldrify the policy's langtldge to .lndlcdte It. Mayor .davenport closed the ;iedr.lnq dt 7:00 p.m$ MOTION was made by Councl.lmember Threlnen, seconded by Councllmember Wells, to adopt RESOLUTION NO. 83-706 GIVING ONELIMINARY APPROVAL TO A PROSECT AND ITS FINANCING UNDER THE MUN,ECIPPt .ENDUSTRIAL DEVELOPMENT ACT; RE,FFRR.INC TME PROPOSAL TO THE MINNESOTA ENERGY ANU ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL; AND AUTHORUING PREPARAT.IOM OF NFL-1,SSARY DOCUMENTS FOR LYNWE TERMINAL COMPANY (HOLIDAY WAREHOUSE) .IN THE AMOUNT OF S5,7bJ9000 to reflect d reduction of $1,000.000 from the original request for display cases, stordye rdcks and cdshler equipment which dre not part of the bulldlnq, Motion carrled oi d Roll Call vote, three dyes. Mdyor DJvrnport and Councllmember Schneider voted nay. Mdyor Devenport exprt:3&ed his dlsfdvor with the votes Councllmember Hells stated the Council still has the criterion n the policy which can be uses% to judqe dpplledtlons from other retdll establishments. RESOtOTION NO.A3-706 APPR k7 REQUEST FOR LYNDALF IERM1NAL (HOLIDAY WARF:1OUSE ) Item 5-A Ilsit Special Council Meeting December 261 195) P,rge 270 MOTION *,as mdde by Mdyor Davenport, seconders by Neils, to dmend the policy to stete: "The Council such flndncing for certain types of lndustrldl projects, exclusive of retd,l projects, may coffmnity." Counellmember Is dwdre that dnd commercial benefit tl,e Counclimember hells diked If gine Council should ddaress profess.iondl buildings now or some time In the Nture. SUBSTITUTE WAION wds made by Couacllmember Threlnen, seconded by Counelivimber Koen, to direct the staff to review the IDRB policy, consider revistons which would benefit the City dnd dddress professlondl buildings, service operdtifns, retdlI estdblishments, or uther possible exclusions. Cldr flcdtion is to be provided rcgdrdlnq the Intent of pdrdrtrdph 10 or the policy dnd the Council's idtttute to «se this provlsimm. Motion cdrrled, rive dyes. Asslstdnt Clty H,101c,yer Boyles stated this is d request from Dominlun Croup, Inc. for $1300,000 U dequire dnd construct a frcllity dt 3105 Empire Lane. He poi zed out thdt the DoF;io lum Group currently employs fifteen people at Its Plymouth office and five in Wisconsin. They Intend to move these five to PI)mouLh ds well ds ddd five more employees. Ap,wroxlmdtely 10% of the project n i l l be P+ndnce:d by the Croup. He stdted he belleved the City would be wdrrdnted In dskInq that the Croup furnish 20% a qultt I.n the project. Mdyor Ddvenport opened the public hedrinq dt 7:10 p.m. ddck Sdfdr, generdI pdrtner In Dominlum Croup, stated that they have been refining their flqures and they now only require 7001(11)0. They will be Prov ialnq $246,000 which Is dpprOXIMM.ely a5% of the peoJiLct costs. He sUited thd,t this would be their heddqudrters. The hulldlnq +sill be 16,000 square feet. they currently occupy 3,000 sq. ft. In the Fox Meadows office bulidLog. The dddltiondl 13,000 of new bull(linq will be bdsement dnd some rentdbler space on the mdln finor. Of the totdl building size they will be occupylnq the entire 7,1300 bd5ement dnd 4,500 of the first floor. Couricllmember Schneider: dsked how the City could prevent I)ominlum from occupyinq only d smdll portion of the buildlnq and reiitenq out the rest. Pi ginner Tremere culswere.d that would be hdbltabie based upon the first floor were :Ndsea, reaguldtC the dmount, little, if dny, hdsement room dporoved pldnsl dnd, if some of Ne didn't think the Clty ro,lld Mr. Sdfdr stdted It is their Intention to occupy the entire hulldlnq withbi two years. PUBLIC HEARING • lura® RECRIFST FOR DOMUNIUN CROUP, .INC. Item S -R C r%1%1 gpeolal Counoll Meeting Deceiftr 28, 1") P 27t PIdnAer Trewere stated again that the basement spdce would b%• us4ble for support facilities but not habitable as pidnned. It. could be wade so if the pldns were changed to include exits. mVt Flotten, attorney for Dominlum Group, Inc., stated that t e project s flnaneed with a bank which prohlblts any changes In. the plans without their dpproval. Mdyor Davenport stated thdt this !s d specu.lative use of IDRR ilndneing end that this !s d further llberdlltatiOn of the City's polley and that he Intends to vote dgalnst It. Nyor Ddvenport closed the public hedrinq dt 7:20 p.m. H0110N Nds made by Counel.lmember Schnelder, seconded by Coundlmember Moen, to adopt RESOLUTION N0. 63-707 DENYING THE RF,QUEST OF D014INIUM GROUP, INC. FOR INDUSTRIAL DEVELOPMENT REVENK BOND FINANCING. Mnt1414 carrled on a Roll Cdll vote, four ayes. Threiren voted ndy, CouncIImemhe^ Mayon Davenport stated that the City had received representatives of Alpdnd Aluminum Products, Inc. request for Industrldl Development Revenue Bond wlthdrdwn, REPORTSOF OFFICERS BOARDS AND COMMISSIONS MOTION ods mdde by Councllmember Schneider, Councllmmber Moen, to adopt RESOLUTION NO. 83-706 THE MAYOR AND CITY 14ANACER TO EXE.CU1F. AN AGREEMENT WAGES AND CONDITIONS OF EMPLOYMENT FOR PLYMOUTH EMPLOYEES FOR (HE YEARS 1994-86. Motion carrLed on d moll CdL1 vote, five dyes. The meeting adjourned at 7:22 p.m. 0 Jj City e: notice from that their Mlndnclnq is seconded by AUTHORIZING ESTABLISHING MAINTENANCE. FA RESOLUTIO" NN83-707 OF"VIR 10911 RE -IM FROM OUMINIUM GROUP, INC. Item S-A PUBLIC HEARING - IDRR REQUEST FROM ALPANA ALUMINIUM Item S -C RF.SOLUIXAN N0*8)-708 CONDITIONS FOR MA.ItITENANCE EMP, 1984-8R Item 6-A