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HomeMy WebLinkAboutCity Council Minutes 04-29-2003 SpecialAdopted Minutes Special Council Meeting April 29, 2003 Mayor Johnson called a Special Meeting of the Plymouth City Council to order at 7:30 p.m. in the Public Safety Training Room, 3400 Plymouth Boulevard, on April 29, 2003. COUNCIL PRESENT: Mayor Johnson, Councilmembers Hewitt, Slavik, Black, Bildsoe, and Neset. ABSENT: Councilmember Stein. STAFF PRESENT: City Manager Johnson, Assistant City Manager Ahrens, Housing Manager Barnes, Finance Director Hahn, Community Development Director Hurlburt, Public Works Director Faulkner, Planning Manager Senness, and City Clerk Paulson. Discuss with CSM Dana Spicer PropertV Community Development Director Hurlburt stated the purpose of tonight's meeting is to discuss the possible redevelopment of the former Dana Spicer site at 15905 Highway 55. She stated CSM Corporation has a purchase agreement with Dana Spicer and is seeking City direction prior to preparation of formal applications, including traffic studies, for a possible commercial or mixed-use redevelopment of the site. John Gelderman, from CSM Development, stated they are a retail developer, and they have been looking at various retail options for this property since October 2002. They have considered the possibility of a lifestyle center, which is an open-air specialty mall. Maple Grove and Woodbury have this type of mall, and it's an alternative to a regional type mall. He stated it's very difficult to attract the typical retailers to this site due to the close proximity to Ridgedale and Maple Grove. He provided a copy of a detailed marketing list and discussed businesses that have expressed a gh degree of M".,SE iii the Site (loin"s, Wall -T ,art, SOam's Chub, lwiarStiaii'S, Walgreen's, and Lowe's Home Improvement). Community Development Director Hurlburt stated at the previous Study Session when this property was discussed, it was mentioned that perhaps Cub Foods, which is currently located in City Center, could be interested in relocating to this site. Mr. Gelderman stated that Cub Foods has a 20 -year lease with Super Valu, and there are approximately eight to nine years remaining ($800,000 per year). Therefore, that isn't an option unless the City would buy out the contract. Adopted Minutes Special Meeting of April 29, 2003 Page 2 of 7 Mr. Gelderman discussed four redevelopment options for the site. Option 1 contained Kohl's, two big boxes, and five acres of affordable housing. Option 2 contained Kohl's, three big boxes, and two acres of Commonbond's affordable senior housing. Option 3 contained Kohl's, Lowe's and two acres of Commonbond's affordable senior housing. Option 4 contained Kohl's, Lowe's, and no housing. He noted that for Options 1-3, there would be a funding gap due to the difference between the cost to purchase the land and the value of the land as well as developing housing which increases the cost considerably. Ted Simons, from Lowes Companies, stated they would like to be located in the community. They are a community -oriented company, and the employees own a very significant portion of the company. He stated they pride themselves in selling high quality merchandise for people who want to improve their homes. Councilmember Black asked who their competitors are. Mr. Simons replied Menard's and Home Depot. He noted that there would be an outdoor garden area, and 30% of their sales are attributed to the garden area. Councilmember Hewitt asked about their store hours. Mr. Simons replied they are open early in the morning until approximately 9:00 p.m. However, the hours are dependent upon the market situation. Councilmember Bildsoe asked what type of flexibility they have with the exterior of their store. Mr. Simons replied they are very flexible. There would be certain signage that would identify their company. He added their typical customer is the female shopper, rather than contractors. There would be 160 employees, but during the winter months there would be 120 employees. They desire to locate in an area where their competitors are located. Councilmember Neset stated one of the biggest concerns for this type of use at this location would be the light and sound projections to the adjacent neighborhood to the south of Medina Road. Therefore, he asked what type of measures they would take to minimize the impact. Mr. Simons replied they would adjust the lighting downward, and there would be restrictions regarding loudspeakers. Kathy Anderson, from KKE Architects, added that there would be also be berming and screening. Councilmember Neset asked where the loading docks would be located, and if the outdoor garden area could be relocated to the other side of their building closest to Kohl's. Mr. Simons replied their loading area would be located near the front of the Adopted Minutes Special Meeting of April 29, 2003 Page 3 of 7 store, and it would be designed so that it would be less intrusive. He stated the garden area would be located on the Kohl's side. Councilmember Black asked what the salary range would be for the employees. Mr. Simons replied they would be very competitive, and they would pay whatever it takes in order to attract high quality employees. Councilmember Slavik asked if they have a loudspeaker system outside their building. Mr. Simons replied they typically don't use one. However, sometimes they utilize more of an intercom system in their garden area. Jim Willis, 16511 26th Avenue North, expressed concerns that if there is only one access to Vicksburg Lane from this development, there would be stacking problems at the Highway 55 intersection. Community Development Director Hurlburt stated there would be an extensive traffic study if the Council desires to pursue retail development of the property. Councilmember Slavik indicated her desire to delete Medina Road adjacent to this property from the Comprehensive Plan. Community Development Director Hurlburt commented that a Comprehensive Plan amendment requires 5/7 vote of the Council. Mayor Johnson commented that this is probably the last opportunity in the City for retail development, and it could assist in expanding the City Center area. She asked if improvements to Vicksburg Lane, such as turning lanes and lights, would be paid by the developer. Community Development Director Hurlburt replied yes. Councilmember Neset stated he likes Option 4; however, there would need to be screening on the backside of Lowe's to the neighborhood. Councilmember Hewitt stated her issues with any retail development involve traffic and noise. Councilmember Bildsoe stated he envisions a retail development for this property. He reiterated that this property is the only remaining large parcel in the City where there could be a retail use. He acknowledged that there are lighting, traffic, and noise issues that need to be addressed. He stated a retail development would give residents another option rather than traveling to Ridgedale and Maple Grove. Adopted Minutes Special Meeting of April 29, 2003 Page 4 of 7 Mayor Johnson stated she would like to incorporate housing opportunities as well as retail at this site. She stated she is also concerned about the extension of Medina Road. Councilmember Hewitt suggested that there be a buffer of housing between the retail development and the neighborhood to the south. She stated she would also like to remove Medina Road from the Comprehensive Plan. She noted that she doesn't live very far from this property, and there is a lot of traffic on Vicksburg Lane. The proposed stop sign location would be very close to Highway 55. Mayor Johnson asked if there would be any HRA funding available for senior housing on this property. Community Development Hurlburt stated she is unsure if there are funds available. She indicated that unless this site would be redeveloped for retail, senior housing wouldn't be an option. Councilmember Black stated she agrees with the issues that have been raised with traffic and noise and removing Medina Road from the Comprehensive Plan. She stated she is concerned how Lowe's would affect other businesses such as Dundee Nursery. She stated if this property would be developed as retail, the property to the east would also probably redevelop as retail in the future. Councilmember Slavik stated this property isn't guided the same as the City Center, and she doesn't feel there is a good "flow" to the City Center. There are no commonalities to tie the two together. She is unsure if the noise and traffic issues could be mitigated to the satisfaction of the adjacent neighborhood. Mr. Simons acknowledged traffic would be a concern. However, their store would complement traffic patterns as their busy time of the year is in the spring and on the weekends, while the Christmas season is usually the busiest time for other retailers. Councilmember Bildsoe stated he prefers Option 3 that would include senior housing, but he would be open to Option 4. He stated regarding Medina Road, he would prefer that this process for this property be completed first, before any action would be taken to remove it from the Comprehensive Plan. Councilmember Bildsoe asked Mr. Simons where they would tend to attract their customers. Mr. Simons replied from the general area and to the west of the City. Mayor Johnson asked if this site has been considered for a hotel. Adopted Minutes Special Meeting of April 29, 2003 Page 5 of 7 David Carland, from CSM Corporation, replied there wouldn't be enough exposure from I-494 for that type of development. Mr. Gelderman stated the next step in the process would the traffic analysis. Councilmember Hewitt stated she wouldn't support the development without the housing component. She stated she wouldn't desire a Wal-Mart, but there is no assurance that there couldn't be a Wal-Mart there in the future once the property is rezoned. Mr. Gelderman stated that they highly scrutinize the tenants that would be located there, and they are looking for tenants who desire to be there for a long time. Mr. Simons that Lowe's is a Fortune 40 company, and they would be investing approximately $20 million to open the store in Plymouth. Jenny Hibbard, member of the HRA, asked if it has to be a dual big box retail site, or if there could be more housing. Mr. Gelderman replied they have considered a variety of options. However, the more housing on the site, the bigger the financial gap. He stated the problem is that there is an industrial vacant building on the site that adds cost to the project. Mayor Johnson asked if Federal funding is a necessity for the Commonbond housing component. Mr. Gelderman replied yes. Mayor Johnson asked if there could be housing on the southern portion of the site if the property remained industrial. Mr. Gelderman replied that could be an option. Councilmember Slavik if they considered constructing a larger retail store similar to HOM Furniture. Mr. Gelderman replied it would cost more to reuse the building as the entire floor and roof would need to be replaced, and new windows would need to be installed. Motion was made by Councilmember Slavik, and seconded by Councilmember Hewitt, to provide no specific direction to CSM this evening. With all members voting in favor except Bildsoe and Black who abstained, the motion carried. Councilmember Bildsoe stated he would prefer to give more specific direction to the developer so they have something to work with. Adopted Minutes Special Meeting of April 29, 2003 Page 6 of 7 Councilmember Neset stated he supports Option 4 because it's closer to filling the funding gap, and also the City doesn't have the funds to assist in filling the gap. He noted that he would like to see housing on the site as well. Housing Manager Barnes stated they could review County, State, and Federal levels for housing funding. Councilmember Bildsoe stated he would prefer some housing on this site, but if that weren't possible, he would prefer Option 4. City Manger Johnson added that staff would need to review further the housing options and funding. The Council took a five-minute break. Future Study Sessions Motion was made by Councilmember Bildsoe, and seconded by Councilmember Hewitt, to schedule a Special Meeting for the purpose touring the Hazelden facility on May 22 at 5:00 p.m. With all members voting in favor, the motion carried. Motion was made by Councilmember Bildsoe, and seconded by Councilmember Neset, to conduct the Youth Service Awards on May 19 at 7:00 p.m. With all members voting in favor, the motion carried. Mayor Johnson, and Councilmembers Black and Hewitt, requested to add the Bassett Creek Management Organization to the pending Study Session list. Councilmember Slavik requested to schedule a Study Session for the purpose of discussing whether Medina Road should be removed from the Comprehensive Plan. The Council at this meeting would decide whether to initiate it and send it to the Planning Commission for their review. Councilmember Bildsoe stated he would prefer to wait and see how the former Dana Spicer site is developed and after the traffic analysis is completed. Mayor Johnson commented if the development on the former Dana Spicer property has to rely on that road, it may not be a good use for the property. Adopted Minutes Special Meeting of April 29, 2003 Page 7 of 7 Community Development Director Hurlburt added that the traffic analysis on what would occur on Highway 55 is more influential on Medina Road than what occurs with the former Dana Spicer property. The Council needs to consider the trips that this would generate versus Highway 55. It is more of a regional issue. Councilmember Hewitt stated since Medina Road is a State aid street, she would like to know how much funding the City would lose. Motion was made by Councilmember Slavik, and seconded by Councilmember Hewitt to add this item to the agenda for the May 20 Special Meeting at 7:00 p.m. With all members voting in favor, the motion carried. Adiournment Mayor Johnson declared the meeting adjourned a l : 38p in andra R. Paulson, City Clerk