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HomeMy WebLinkAboutCity Council Minutes 03-20-1996MINUTES REGULAR COUNCIL MEETING MARCH 20, 1996 The regular meeting of the Plymouth City Council was called to order by Mayor Tierney at 7:00 p.m. in the City Center, 3400 Plymouth Blvd., on March 20, 1996. COUNCIL PRESENT: Mayor Tierney; Councilmembers Wold, Lymangood, Preus, Granath, and Black. ABSENT: Councilmember Anderson. STAFF PRESENT: City Manager Johnson, Assistant City Manager Lueckert, Public Works Director Moore, Finance Director Hahn, Community Development Director Hurlburt, Public Safety Director Gerdes, Park Director Blank, City Attorney Knutson, and City Clerk Ahrens. ITEM 3 PLYMOUTH FORUM No one appeared for the forum. ITEM 4-A RECOGNITION OF SERVICE Fire Chief Kline presented a plaque to retiring Firefighter Chuck Veflin recognizing his twenty-three years of service to the Fire Department. ITEM 5 APPROVE AGENDA Mayor Tierney requested addition of Item 9-A, Update on Public Meeting regarding proposed Medicine Lake trail. MOTION was made by Councilmember Preus, seconded by Councilmember Black, to approve the agenda with the addition of Item 9-A. Motion carried, six ayes. ITEM 6 CONSENT AGENDA Items 6-F, 6-N, and 6-W were removed from the Consent Agenda. MOTION was made by Councilmember Black, seconded by Councilmember Preus, to approve the Consent Agenda as amended. Motion carried, six ayes. Regular Council Meeting March 20, 1996 Page 2 ITEM 6-A APPROVE CITY COUNCIL MINUTES MOTION was made by Councilmember Black, seconded by Councilmember Preus, to approve the minutes of the March 6 Special Council Meeting, and the March 6 Regular Council Meeting. Motion carried, six ayes. ITEM 6-B APPROVE DISBURSEMENTS MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-155 APPROVING DISBURSEMENTS FOR THE PERIOD ENDING MARCH 7, 1996. Motion carried, six ayes. ITEM 6-C APPROVE SITE PLAN TO RELOCATE AMPHITHEATER (96016) MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-156 APPROVING A SITE PLAN FOR THE CITY OF PLYMOUTH FOR PROPERTY LOCATED EAST OF PLYMOUTH BOULEVARD AND NORTH OF THE PLYMOUTH CITY OFFICES (96016). Motion carried, six ayes. MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-157 ADOPTING BUDGET FOR RELOCATION OF AMPHITHEATER. Motion carried, six ayes. ITEM 6-D APPROVED SITE PLAN AMENDMENT FOR ORCHIDS LIMITED 95138 MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-158 APPROVING SITE PLAN AMENDMENT FOR JERRY LEE FISCHER FOR "ORCHIDS LIMITED", 4630 FERNBROOK LANE NORTH (95138). Motion carried, six ayes. ITEM 6-E AMENDED PUD PLAN FOR SKYLINE DESIGN (96002) MOTION was made by Councilmember Black, seconded by Councilmember Preus to adopt RESOLUTION 96-159 APPROVING AMENDED RESIDENTIAL PLANNED UNIT DEVELOPMENT (RPUD) PLAN AND CONDITIONAL USE PERMIT FOR SKYLINE DESIGN, INC., FOR PROPERTY AT 994 ZANZIBAR LANE NORTH (RPUD 76-3) (96002). Motion carried, six ayes. Regular Council Meeting March 20, 1996 Page 3 ITEM 6-G WESTBRANCH 4TH ADDITION. ORRIN THOMPSON HOMES 95139 Y MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-160 APPROVING RESIDENTIAL PLANNED UNIT DEVELOPMENT (RPUD) PRELIMINARY PLAN/PLAT AND CONDITIONAL USE PERMIT FOR ORRIN THOMPSON HOMES FOR PROPERTY LOCATED NORTHEAST OF DUNKIRK LANE NORTH AND ROCKFORD ROAD (95139). Motion carried, six ayes. ITEM 6-H WELCH COMPANIES, PLYMOUTH BUSINESS CENTER (96006). MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-161 APPROVING MPUD PRELIMINARY PLAN AMENDMENT, CONDITIONAL USE PERMIT, AND FINAL SITE PLAN FOR WELCH COMPANIES FOR PROPERTY LOCATED NORTHEAST OF ANNAPOLIS LANE AND 34TH AVENUE 96006). Motion carried, six ayes. ITEM 6-I RENEW GARBAGE HAULER LICENSES MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-162 RENEWING GARBAGE HAULER LICENSES. Motion carried, six ayes. ITEM 64 RENEW CONSUMPTION AND DISPLAY LIQUOR LICENSES MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-163 APPROVAL OF CONSUMPTION AND DISPLAY LICENSES. Motion carried, six ayes. ITEM 6-K APPROVE TOBACCO LICENSE MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-164 APPROVING TOBACCO LICENSE FOR DENNIS O. EBERT DOING BUSINESS AS LOBBY SHOP, 13001 BASS LAKE ROAD. Motion carried, six ayes. Regular Council Meeting March 20, 1996 Page 4 ITEM 6-1 APPROVE PURCHASE OF ROTARY MOWER MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-165 APPROVE PURCHASE OF 72 INCH, 4 -WHEEL DRIVE HYDROSTATIC ROTARY MOWER Motion carried, six ayes. ITEM 6-M REDUCTION IN DEVELOPMENT CONTRACT FINANCIAL GUARANTEES MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-166 REDUCING REQUIRED FINANCIAL GUARANTEE, FORESTER PRESERVE PLAT TWO (94057). Motion carried, six ayes. MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-167 REDUCING REQUIRED FINANCIAL GUARANTEE, COURTYARDS OF FRENCH CREEK ADDITION (93034). Motion carried, six ayes. MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-168 REDUCING REQUIRED FINANCIAL GUARANTEE, SHORES OF KRAETZ LAKE ADDITION 94135). Motion carried, six ayes. MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-169 REDUCING REQUIRED FINANCIAL GUARANTEE, BASS LAKE ESTATES THIRD ADDITION 95065). Motion carried, six ayes. ITEM 6-0 SET HEARING ON EASEMENT VACATION MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-170 ORDERING PUBLIC HEARING ON THE PROPOSED VACATION OF DRAINAGE AND UTILITY EASEMENT IN LOT ONE, BLOCK FOUR, PLYMOUTH OAKS ADDITION AND LOT EIGHT, BLOCK ONE, COURTYARDS OF PLYMOUTH OAKS. Motion carried, six ayes. Regular Council Meeting March 20, 1996 Page 5 ITEM 6-P APPROVE CERTIFICATE OF EXEMPTION FOR WETLAND CONSERVATION MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-171 AUTHORIZING THE MAYOR TO SIGN THE CERTIFICATE OF EXEMPTION FROM THE 1991 WETLAND ACT, MARFIELD, BELGARDE AND YAFFE COMPANIES. LOT ONE, BLOCK ONE, MINNEAPOLIS INDUSTRIAL PARK FIFTH ADDITION. Motion carried, six ayes. ITEM 6-0 WETLAND REPLACEMENT PLAN FOR PLYMOUTH AMPHITHEATER MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-172 APPROVING FILLING WETLANDS AND THE WETLAND REPLACEMENT PLAN FOR CITY OF PLYMOUTH AMPHITHEATER RELOCATION PROJECT, PROJECT 96016. Motion carried, six ayes. ITEM 6-R MISSION STATEMENT FOR PLYMOUTH WATER RESOURCES MANAGEMENT PLAN MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt the following mission statement for the Plymouth Water Resources Management Plan, as developed by the Environmental Quality Committee: "The City of Plymouth envisions a community in which the quality of life is enhanced by a natural and healthy environment, and by an infrastructure designed and maintained to protect property investment. Toward that end, the Plymouth Resources Management Plan provides a single, comprehensive strategy which addresses the City's existing and future water resources needs in a proactive manner. The plan development promotes citizen and industry participation and education, and provides clear direction for properly managing our local water resources." Motion carried, six ayes. ITEM 6-S APPROVE CHANGE ORDER TO CITY COUNCIL CHAMBERS RENOVATION MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-173 APPROVING CHANGE ORDER NUMBER ONE, CITY CENTER COUNCIL CHAMBER RENOVATION, PROJECT 506. Motion carried, six ayes. Regular Council Meeting March 20, 1996 Page 6 ITEM 6-T AWARD PROPOSAL FOR NEW INFORMATION SYSTEMS MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-174 IMPLEMENT NEW INFORMATION SYSTEMS. Motion carried, six ayes. ITEM 6-U APPROVE LAWN MAINTENANCE BID MOTION was made by Councilmember Black, seconded by Councilmember Preus, to adopt RESOLUTION 96-175 APPROVAL OF BID FOR THE 1996 LANDSCAPE MAINTENANCE PROGRAM. Motion carried, six ayes. ITEM 6-V AUTHORIZE APPLICATION FOR STATE DIVISION OF EMERGENCY MANAGEMENT GRANT MOTION was made by Councilmember Black, seconded by Councilmember Preus, to authorize the Public Safety Department to work with the Minnesota Division of Emergency Management in order to apply for a Volunteer Resource Collaboration Service Sharing Grant. Motion carried, six ayes. ITEM 7-A PUBLIC IMPROVEMENT HEARING ON 1996 STREET RECONSTRUCTION PROGRAM, PROJECT 602 Public Works Director Moore stated that this is the eighth year of the Street Reconstruction Program, and he showed a video on the program. He described the two areas proposed for reconstruction in 1996 -- District 29: Orleans Lane from the cul-de-sac south of 47th Avenue to the cul-de-sac north of 49th Avenue, Quaker Lane from 47th Avenue to the cul-de-sac north of 49th Avenue, Pilgrim Lane cul-de-sac north of 47th Avenue, Pilgrim Lane cul-de-sac north of 48th Avenue, 47th and 49th Avenues from Orleans Lane to Quaker Lane, 48th Avenue from Nathan Lane to 160 feet west of Quaker Lane; and District 33: Pilgrim Lane from 32nd Avenue to 36th Avenue, Kilmer Lane from 34th Avenue to 36th Avenue, 34th Avenue from Pilgrim Lane to West Frontage Road State Highway 169, the West Frontage Road State Highway 169 from 34th Avenue to 35th Avenue, and 35th Avenue from the West Frontage Road State Highway 169 to Kilmer Lane. He stated that this is the public improvement hearing and special assessments will not be considered at this meeting. Director Moore stated that the estimated project cost is $1,433,000. Single family residential homes have estimated amount to be assessed of $949 per lot, multi- family residential is proposed at an equivalent of $949 per unit, townhomes are estimated at $770.47 per unit, and commercial areas at $717 per unit. He explained that the unit cost is determined by factoring traffic density. Regular Council Meeting March 20, 1996 Page 7 Mayor Tierney opened the public improvement hearing at 7:23 p.m. Larry Kelner, 4750 Ori..ans Lane North, stated he understands the need for the reconstruction and does not oppose the project. However, he asked the Council to be mindful that there is a limit to residents' income to pay for the improvements. No one else appeared, and the hearing was closed at 7:25 p.m. Mayor Tierney explained that the Council has adopted a policy that for the entire Street Reconstruction Program, 30 percent of the cost will be assessed to the benefiting properties and 70 percent will be paid by the City. Public Works Director Moore stated that at the completion of the project, the City Council will conduct an assessment hearing. Typically, the special assessment for this type of project would be spread over five years, with one-fifth of the principal paid each year, along with interest on the unpaid balance. He estimated that the assessment hearing for this project would be conducted in October, 1996, with the first payment due in 1997. He added that property owners can avoid interest by paying the entire assessment amount within 30 days of adoption. Director Moore stated that the resolution ordering this project requires six Council votes for adoption since the project was initiated by the City. MOTION was made by Councilmember Lymangood, seconded by Councilmember Granath, to adopt RESOLUTION 96-176 ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS, 1996 STREET RECONSTRUCTION PROGRAM, CITY PROJECT NO. 602. Motion carried, six ayes. ITEM 7-B PUBLIC HEARING ON GRANT APPLICATION FOR VALUE Rx PROJECT Community Development Director Hurlburt introduced Leonard Kirscht, 4205 Lancaster Lane North, Suite 1100, Public Resource Group, Inc. Mr. Kirscht presented the request for the City to apply for a grant under the State of Minnesota's Economic Development Grant Program. The application would be for $500,000 to provide loan funds to assist Value Rx Pharmacy in its location and equipment acquisition project. All of the funds to be loaned to the Company will assist its purchase of new equipment to be paced in the Miles Homes facility at 4700 Nathan Lane. Ryan Construction will be renovating the existing 60,000 sq. ft. building, as well as constructing the proposed 60,000 sq. ft. addition. It is anticipated that Value l:x will ultimately employ 200 new employees. The total project cost is estimated as $2 million, of which $1.5 million relates to telephone, generator system, furniture, and fixtures. He explained that this program is funded Regular Council Meeting March 20, 1996 Page 8 through two sources: federal CDBG funds and State funds. If the grant funds are federal monies, then the City may retain all the repayments. If the grant funds are state monies, then the City may retain the first $100,000 in principal repayments, including accrued interest to that point. These funds can then be loaned to other eligible businesses. Financing for the remainder of the project will come from $1.5 million in Value Rx Pharmacy equity. No projects costs would be assessed to community residents. Mayor Tierney asked how the project would benefit low and moderate income persons. Mr. Kirscht explained that at least half of the new jobs created will be available to persons of low and moderate income. Creation of 200 new jobs would potentially result in 102 persons of low and moderate income hired for a total combined salary of about $2,120,000. If creation of 200 new jobs resulted in all the new jobs being filled by persons of low and moderate income, then the combined salary of the 200 low and moderate income persons would be in excess of $4.1 million. He explained that jobs such as customer account and customer service representatives, and marketing representatives would be created and would pay a minimum of $10 per hour. Councilmember Lymangood corrected an error in the staff report, stating that upon verification that the company has created the 200 new jobs projected, the second $250,000 originally given to the company will be granted to the company as a forgivable loan with no repayment required. He welcomed the firm to Plymouth. Mayor Tierney opened the public hearing on the application for Minnesota Department of Economic Development Recovery Fund Grant for the Value Rx Project at 7:40 p.m. No one appeared, and the hearing was closed. MOTION was made by Councilmember Lymangood, seconded by Councilmember Wold, to table consideration of this item to a future meeting, as recommended by staff. Motion carried, six ayes. ITEM 8-A-1 (6-W) MNDOT HIGHWAY 12 CORRIDOR ALTERNATIVES AND IMPACT ON FERNDALE ROAD Councilmember Wold stated that he requested that this item be considered by the Council. He attended a recent neighborhood information meeting on the MnDOT Highway 12 Corridor Alternatives and impacts on Ferndale Road. He said the Plymouth City Council previously adopted a resolution opposing a half -diamond intersection at Highway 12 and Ferndale. He believes that the City Council should Regular Council Meeting March 20, 1996 Page 9 clarify that it is opposed to any change in the character and function of Ferndale Road and to any interchange at Ferndale Road and Highway 12. Mayor Tierney stated ,.';at a letter was also received from the Wayzata Community Church on this issue. Martin Gardener, 320 Brockton Lane, represented the North Ferndale Road Residents' Committee. He thanked the Mayor and City Council members for their support on this issue. He said that the informational meeting was attended by over 200 residents from Plymouth, Orono, and Wayzata. Ninety-four percent of the residents in attendance opposed an interchange at Ferndale Road, and 97 percent of the Plymouth residents were opposed to an interchange. He presented a copy of a letter sent to Ferndale Road residents about the issue. MOTION was made by Councilmember Wold, seconded by Councilmember Lymangood, to adopt RESOLUTION 96-177 MNDOT HIGHWAY 12 CORRIDOR ALTERNATIVES AND IMPACT ON FERNDALE ROAD, with an addition that the City Council establish a subcommittee to study issues relating to Ferndale Road. Councilmember Wold explained that the Minnesota Department of Transportation is considering what to do with Highway 12 west of Plymouth. One of their options is to construct an interchange at Ferndale Road. He believes that the City should be proactive on this issue and collaborate with the cities of Orono and Wayzata. Councilmember Preus supported the motion. He noted that about 200 people recently attended an informational meeting on the topic. The interchange proposal would substantially change the abutting neighborhoods. He stated that there are several general issues of study: 1) Stopping the effort for an interchange; 2) Improving Ferndale Road; and 3) Safety issues of the trail abutting Ferndale Road. He asked the Public Works Director to comment on the status of upgrading of Ferndale Road. Public Works Director Moore explained that Ferndale Road improvements are currently proposed for 1998 in Plymouth's adopted Capital Improvement Program. He has written to the City of Orono requesting clarification on whether Ferndale Road improvements are still proposed for 1988. He stated that half of Ferndale Road is in each community, requiring a joint construction effort. The City of Plymouth had previously proposed the project for 1997; however, the City of Orono did not have sufficient state aid monies available for the project until 1998. Councilmember Wold stated that he would like the Council to establish a certain year when the project will be accomplished. Regular Council Meeting March 20, 1996 Page 10 Manager Johnson stated that a letter has already been sent to the City of Orono requesting clarification. He believes that if Orono could move the project to 1997, Plymouth could be flexible and meet that schedule. Councilmember Preus suggested an amendment to the motion to direct City staff to meet with staff representatives of Wayzata, Orono, and if appropriate, other cities to see if a consensus can be developed for presentation to the Minnesota Department of Transportation (MnDOT) on their Highway 12 Corridor Study alternatives, as well as a timetable for the upgrading of Ferndale Road. Councilmember Wold accepted this as a friendly amendment to his motion. Councilmember Lymangood supported the motion as amended. He requested that the six residents on the Ferndale Road Residents' Committee be notified of any upcoming Council consideration on this issue. Mayor Tierney stated that residents are also working on establishment of the trail as a designated bike route. Councilmembers Preus and Wold, and Mayor Tierney will serve as members of the subcommittee. Motion carried, six ayes. ITEM 8-A APPROVE CONTRACT WITH LIFE TIME FITNESS City Manager Johnson presented the staff report on the proposed contract with Life Time Fitness. He said that a City-wide sports facilities task force met throughout 1995 and identified indoor ice and swimming facilities as top priority needs in the City. The City and Life Time Fitness began specific discussions about a public-private partnership during the fall, 1995. Subsequently, the City was awarded $250,000 in "Mighty Ducks" Grant funds to build ice facilities. District 284 became interested in participating in a swimming complex. The City Council approved the Letter of Intent with Life Time Fitness on December 19, 1995. He stated that on February 6, voters approved, by a 3 to 1 margin, the use of Community Improvement Funds for indoor ice and swimming facilities. Manager Johnson presented contract highlights. He said that the City is contracting for the construction and operation of pools. The swimming complex includes an outdoor leisure pool, an indoor leisure pool, and an eight -lane competition pool. Life Time Fitness will build and operate the pool complex as a part of its fitness club. The agreement centers upon a 40 -year ground lease, and Life Time has agreed to substantial covenants governing access to the facility for Regular Council Meeting March 20, 1996 Page 11 Plymouth residents, including daily rate user fees ranging from $3 to $8. The covenants remain in force even if Life Time sells its interest to someone else. He explained the capital costs involved in the project. The City's direct contribution to Life Time to build the pools is $1.6 million. The City is also providing land valued at about $300,000 and a portion of the site improvement costs. The City's overall project budget for ice arena, pool complex, and site work is $7 million, after grants and contributions from other agencies. The sources of funds are the Community Improvement Fund and the Project Administration Fund. There will be no tax levy increase required for capital costs. Manager Johnson presented advantages of the proposed agreement. There would be lower capital costs for the City compared with building solely a City facility 480,000 per year). There would be no operating costs for the City (estimated at 250,000 per year based on experience of other cities). Life Time Fitness will pay local taxes (estimated at $200,000), and there will be lower construction management and facility design costs. The recreation complex may encourage other development in the immediate area, and Plymouth residents will be guaranteed facility access. Manager Johnson stated that disadvantages of the proposed agreement include that the City will not control the Life Time Club area. Some residents would like the range of daily fees to be lower, especially the adult rate. Life Time Fitness may choose to sell the facility or may someday face economic problems, and Life Time Fitness may not have a "public character" as a community center. He said that there could be the perception that the City is competing with existing businesses. City Manager Johnson stated that several changes were recommended today to the proposed contract based on meetings with Life Time Fitness. The scholarship program has been increased to 1,000 passes and will include adults. Contract language was added to clarify how and when the City will receive notice of any possible sale. In the event that Life Time would contemplate selling, there is new language on how much they would reimburse the City. If a sale were done during the first five years, the City would be reimbursed $200,000, with $100,000 reimbursement thereafter. Manager Johnson stated that consideration of a construction management agreement with Life Time Fitness is also on the agenda. He recommended that the Council delay consideration of that item because neither party has had sufficient opportunity to review it. He stated that tabling the item to the next meeting will not delay the start of coestruction on the project. Regular Council Meeting March 20, 1996 Page 12 Manager Johnson stated that he was contacted by Councilmember Anderson today indicating that he supports the ground lease and development contract with the proposed changes. Attorney Knutson stated that the proposed contract changes were made several hours ago. He requested that if the Council is inclined to approve the agreement, that he be granted authority to make non -substantive changes to the contract language. Mayor Tierney read her statement in favor of the project. She stated that, as Mayor, she supports this project. It is an opportunity and issue of leadership for the Council. She believes that the advantages greatly outweigh the risks involved. Councilmember Granath stated that he will support the ground lease and development contract. He stated that this project has been underway for five months, and initially he had serious reservations about the issue. He served on the subcommittee to develop the contract with Life Time Fitness, and his primary concern has been to ensure that there is financial accessibility for all Plymouth residents. He stated that residents support the City with tax dollars and all individuals should benefit from the project. He believes that substantial progress has been made on this issue in the past few weeks and that the risks are worth taking. He noted that financial accessibility has been enhanced by the City rejecting monthly subscriptions, attaining a $3 daily rate for children and no initiation fee for children. He said that daily adult rates were provided, as well as expanded family hours, and a special agreement on programs to enhance opportunities for seniors and other individuals on fixed incomes. Also, up to 1,000 subsidized summer pool passes may be available at a rate to be determined by the City. He asked the Finance Director to explain the source of the Community Improvement Fund. Finance Director Hahn explained that the Community Improvement Fund was established under the City Charter. The source of the funds is that all monies left in bond sinking funds or debt service funds after payment of special assessment bonds, were rolled over into this fund. He said that many special assessment payments were made before the City needed money, and these funds were invested at high interest rates in earlier years. He stated that none of the monies in the Community Improvement Fund are from taxes -- they are entirely from prepaid special assessments and interest earnings. MOTION was made by Councilmember Lymangood, seconded by Councilmember Wold, to adopt RESOLUTION 96-178 APPROVING A GROUND LEASE AND DEVELOPMENT AGREEMENT WITH FCA, LTD., DOING BUSINESS AS LIFE TIME FITNESS AND AUTHORIZING THE MAYOR AND CITY MANAGER TO SIGN THE AGREEMENTS. Regular Council Meeting March 20, 1996 Page 13 Councilmember Lymangood stated that he believes this will be a magnificent facility at a fraction of the cost to the City. Tax revenues will be generated, rather than annual operating c,-,sts. He stated that it was at his initiation that the Council established a sports facilities subcommittee to study indoor and outdoor sports facilities. He recognized contributions toward the project of Councilmember Granath who pursued the issue of accessibility to Plymouth residents, Councilmember Wold and Mayor Tierney who served on the Sports Facilities Subcommittee, Councilmember Black who attended a number of meetings on the proposed contract, and Councilmembers Anderson and Preus for providing their legal perspective on the contract. He also thanked the City Attorney, City Manager, and Park Director for their efforts, along with Mr. Akradi and Life Time Fitness representatives for enduring the public process involved. Councilmember Black stated she believes this project is an opportunity for the City. The project should be a draw for the City Center area, and she believes that the risks are acceptable. Councilmember Wold thanked the Plymouth -Wayzata and New Hope -Plymouth Hockey Associations for their financial and other support of the project. He clarified that the City will solely own and operate the ice facilities. Councilmember Preus tated that about a year ago when planning the City Center area, the concept of a sports facility was discussed. He said that many people thought about it, but hesitated supporting or pursuing the project. He stated that Councilmember Lymangood's comments and leadership on the issue helped the project gain momentum and support. Councilmember Preus stated that he initially shared the early concerns expressed by Councilmember Granath. However, details have been provided through the proposed contract. He commended the City Attorney for doing exceptional work on the contract. He would like to see access to a facility at lower rates, but that would result in a tax increase which is not acceptable. Brian Golden, 3932 Orchid Lane, asked how a scholarship could be received. Park Director Blank responded that when the facility is scheduled to open, the City Council will adopt a policy on how the scholarship program will be administered. Harold Golden, 3932 Orchid Lane, stated he voted in the referendum in favor of the project. He thanked the Mayor and Council for the amount of time put into this project. He asked about impact to property values and traffic patterns in the vicinity of the facility. Public Works Director Moore responded that the City Center area road system has been designed to serve this and other large uses. He stated that the majority of Regular Council Meeting March 20, 1996 Page 14 traffic in neighborhoods abutting the City Center area will be neighborhood residents traveling to the facility. He stated that the most convenient access to the facility will be via County Road 9 or Highway 55. The study for the area indicates that there will ultimately be traffic signals at County Road 9 and Vicksburg Lane, and at Plymouth Blvd. and County Road 9. No other signals are proposed in the area, with the possible exception of 34th Avenue and Plymouth Blvd. Manager Johnson added that the entire City Center area will have excellent trail access. He stated that the City hopes this project has a positive impact on surrounding property values and that it stimulates development on surrounding properties. Bahram Akradi, President of Life Time Fitness, thanked everyone involved in the project. He looks forward to making this project work for the residents, City, and School District. He particularly thanked Manager Johnson and Park Director Blank for their efforts. Motion carried six ayes. MOTION was made by Councilmember Wold, seconded by Councilmember Preus, to table the construction management agreement for consideration to the April 3 council meeting. Motion carried, six ayes. ITEM 8-B CITY OF PLYMOUTH AND LIFE TIME FITNESS SPORTS COMPLEX (96003) Planning Supervisor Senness presented the staff report on the request of the City of Plymouth and Life Time Fitness for Preliminary Plat, Site Plan, Conditional Use Permit, and Variances for an ice arena and fitness center including indoor and outdoor swimming pools and indoor competition pool and diving well, located east of Plymouth Blvd. bets ,een 35th and 37th Avenues North. Vicki Hooper, representing Shea Architects, described the site plan. She stated that the building is set back from the street in order to lessen the visual mass of the building. Fencing is proposed around the site near the street to meet the City Center Plan. There will be some parking in front of the building. She stated that the proposed landscaping exceeds the City requirements, and the landscaping will be done in a phased manner. Minimal landscaping requirements will be met by the spring of 1997, and lower priority landscaping will be completed in future phases. There is also the possibility of adding a community garden landscaping amenity in the future. She stated that a different paving element will be used in order to emphasize the entry, and described the exterior materials proposed for the buildings. Regular Council Meeting March 20, 1996 Page 15 Brian Golden suggested that one ice sheet could be used solely for hockey and the other sheet could be used for figure skating and free skating. Director Blank explained that both ice sheets are multi-purpose. The ice is programmed every hour, and the ice can be removed from one sheet part of the year to allow additional activities such as basketball, volleyball, or in-line skating. Mayor Tierney asked that staff address the possibility for a future activity center. Park Director Blank explained that there is an area at the end of the Life Time Fitness facility that could allow for a possible future activity center facility of 12,000 to 14,000 sq. ft. He showed the trails proposed near the facility and stated that the Planning Commission has suggested that the Plymouth Blvd. trail enter the site near the amphitheater. MOTION was made by Councilmember Lymangood, seconded by Councilmember Preus, to adopt RESOLUTION 96-179 APPROVING PRELIMINARY PLAT, VARIANCES, CONDITIONAL USE PERMIT, AND SITE PLAN FOR THE CITY OF PLYMOUTH AND LIFE TIME FITNESS FOR PROPERTY LOCATED EAST OF PLYMOUTH BLVD. BETWEEN 35TH AND 37TH AVENUE NORTH (96003). Motion carried, six ayes. Manager Johnson stated that detailed design of the facility will be developed in upcoming weeks. He suggested that it may be useful for the Council to establish a subcommittee to consider issues related to interior design. MOTION was made by Councilmember Lymangood, seconded by Councilmember Wold, to establish a subcommittee (consisting of Councilmember Lymangood, Councilmember Black, and Mayor Tierney), to consult with staff regarding the interior design considerations related to the project. Motion carried, six ayes. ITEM 8-C APPROVE SITE PLAN FOR TEMPORARY SALES OFFICE FOR LIFE TIME FITNESS MOTION was made by Councilmember Wold, seconded by Councilmember Lymangood, to adopt RESOLUTION 96-180 APPROVING A SITE PLAN AMENDMENT FOR LIFE TIME FITNESS FOR PROPERTY LOCATED AT 3550 N. VICKSBURG LANE (96026). MOTION was made by Councilmember Wold, seconded by Councilmember Lymangood, to move the previous question. Motion carried, six ayes. Motion carried, six ayes. Regular Council Meeting March 20, 1996 Page 16 ITEM S -D (64) CARLSON REAL ESTATE (95133) Community Development Director Hurlburt introduced the request of Carlson Real Estate Company for Land Use Guide Plan Amendment for Reguiding, Rezoning, preliminary Plat, and Variance for the creation of five lots, and a Site Plan for the construction of five multi -tenant office/warehouse buildings, located in the 100 block of Cheshire Lane. Councilmember Lymangood stated that this parcel of land was before the City Council approximately two years ago when Carlson requested a zoning change from commercial/industrial to retail to allow a Sam's Club on the site. He showed a February 23, 1994, Plymouth Sailor article where Dean Riesen, representing Carlson Company, stated in an interview that Sam's Club was a certainty. In the article, Mr. Riesen threatened legal action against the City in the amount of 4,250,000 million if the City did not rezone the property as requested. Councilmember Lymangood stated that Carlson Company is now requesting that the property be zoned back to allow an industrial use. He noted that this action is what Carlson Company representatives threatened the City not to do two years ago, and a land taking issue was threatened again by Carlson Company while this request was under consideration. Matt VanSlocan, Carlson Real Estate, stated that he oversees industrial property for Carlson Real Estate Company. He stated that after the City Council's approval of the rezoning, Sam's Club decided they were no longer interested in the site. He stated that two years ago, Carlson would have preferred the site to be retail, but agreed it would be a Sam's Club or it would be an industrial use. He stated that Carlson Company recently reviewed the site and concluded that this is a good location for an industrial use. Carlson wants to develop the site as an industrial park for the company's long-term ownership. He described the proposed buildings and said the exterior will have a quality finish that will look good from I-494, Cheshire Lane, and the surrounding abutting residential neighborhood. Councilmember Lymangood stated that he supported an industrial use for this site two years ago. He asked if Carlson has assurances from tenants. Mr. VanSlocan responded that there are no tenants yet; Carlson is developing this for speculative use. Councilmember Granath referenced the newspaper article shared by Councilmember Lymangood. He stated that he was shocked two years ago when Carlson representatives issued public threats relating to the rezoning issue. He believes that threats create a counterproductive relationship. Councilmember Granath stated that a Carlson representative again threatened litigation relating to this proposal without the plan being submitted. He suggested that Carlson try to Regular Council Meeting March 20, 1996 Page 17 improve relations with the City. He stated that if this is another situation of legal pressure, he will be a dedicated opponent to the project. He fully appreciates the property rights of Carlson, but stated that affected residents also have rights. Mr. VanSlocan stated he will convey the comments to Carlson Real Estate Company. In response to a question from Mayor Tierney, he said that Carlson has applied for a grading permit for the site. Their intention is to construct the three buildings on the northerly portion of the site and complete two additional buildings at a later date. Councilmember Lymangood echoed Councilmember Granath's comments and stated that much more can be accomplished when working together. He noted that the Carlson proposal exceeds the minimum requirements established in the tree preservation ordinance. MOTION was made by Councilmember Lymangood, seconded by Councilmember Granath, to adopt ORDINANCE 96-7 AN ORDINANCE AMENDING THE ZONING ORDINANCE TO CLASSIFY CERTAIN LANDS LOCATED AT THE SOUTHWEST OF CHESHIRE LANE AND CARLSON PARKWAY 95133), RESOLUTION 96-181 APPROVING LAND USE GUIDE PLAN AMENDMENT CARLSON REAL-ESTATE COMPANY FOR PROPERTY LOCATED SOUTHWEST OF THE INTERSECTION OF CHESHIRE LANE AND CARLSON PARKWAY (95133), and RESOLUTION 96-182 APPROVING PRELIMINARY PLAT, VARIANCE, AND SITE PLAN FOR CARLSON REAL-ESTATE COMPANY FOR PROPERTY LOCATED SOUTHWEST OF THE INTERSECTION OF CHESHIRE LANE AND CARLSON PARKWAY 95133). Councilmember Black stated she has one area of concern on this proposed development relating to the proposed loading dock which faces residences on the northerly end of the parcel. She stated that loading dock noise has become a significant problem in her ward, and she cautioned the applicant to do whatever is needed to alleviate noise associated with the loading dock. Motion carried, six ayes. Regular Council Meeting March 20, 1996 Page 18 ITEM 8-D (6-N) PHOSPHORUS -FREE FERTILIZER SALE MOTION was made by Councilmember Lymangood, seconded by Councilmember Granath, to adopt an alternate RESOLUTION 96-183 DIRECTING THAT PROCEEDS FROM THE SPRING 1996 PHOSPHORUS FREE FERTILIZER SALE GO TO THE TREE PRESERVATION FUND/COUNTY ROAD 9 BEAUTIFICATION PROJECT. Councilmember Lymangood stated he has been interested for some time in providing phosphorus -free fertilizer to residents. He supported the previous sale and the educational video. He explained that Plymouth soils do not require additional phosphorus, and the phosphorus tends to wash off and create algae problems in lakes and ponds. Councilmember Lymangood suggested it would be appropriate to direct the proceeds from the sale toward an environmental purpose. Mayor Tierney stated that the Communities in Collaboration Council (CICC) had suggested that the spring, 1995, phosphorus -free fertilizer be their project for fund-raising purposes. The CICC is interested in participating in the upcoming sale, with proceeds going toward their Connect project which delivers services to multi -family residents. She prefers to continue the upcoming sale with the CICC, but stated that the proceeds of future sales could appropriately be directed toward environmental projects. Councilmember Lymangood stated that this issue relates to being good stewards of the land. He initiated the original project and the informational video would not have been done without his follow through. He stated that the concept for the original phosphorus -free sale was not pursued by the Water Quality Committee, and he supports the motion. Mayor Tierney stated that the spring phosphorus -free fertilizer sale was initiated by the CICC, and the organization also received funds from the sale. The revenues from the fall sale went to the City. She is concerned that the CICC would be losing a source for funds. MOTION to amend was made by Councilmember Lymangood, seconded by Councilmember Wold, to add, "be it further resolved that the staff, through the City Manager, is directed to report back to the Council within 30 days on the history of the phosphorus -free fertilizer issue, including the exact timetable, who initiated the concept and when it occurred, and how the issue was brought to the City Council." Councilmember Lymangood stated that he believes it is important to clarify the record since there are different views on how and when the issue was initiated. Regular Council Meeting March 20, 1996 Page 19 Mayor Tierney stated that she and Manager Johnson were members of the CICC when they initiated the project, and the sale was set up by the City's recycling coordinators. Councilmember Black asked about the amount of money raised with the previous sales. Mayor Tierney estimated that the CICC received about $2,000 from the spring sale. Councilmember Lymangood stated that there are unallocated budgeted social service funds that the Council could make available to CICC for the Connect project. He intends to make that motion when this item is completed. Councilmember Black stated that this is not an either/or situation. It may be possible to direct the proceeds from the sale toward an environmental purpose, while still funding the CICC social service request. MOTION was made by Councilmember Preus, seconded by Councilmember Lymangood, to call the question. Motion carried, six ayes. Motion to amend carried: five ayes; Tierney nay. Manager Johnson noted that the motion directs the project revenues; it does not foreclose cooperation with other cities or agencies on the sale. Motion as amended carried, five ayes; Tierney nay. MOTION was made by Councilmember Lymangood, seconded by Mayor Tierney, to direct staff to report back to the Council in a timely manner on funding alternatives for the CICC Connect project. Councilmember Black commented that she would support a minimum amount similar to that gained in last year's fertilizer sale. Motion carried, six ayes. MOTION was made by Councilmember Granath, seconded by Councilmember Lymangood, to adjourn the meeting at 9:40 p.m. Motion carried, six ayes. Laurie Ahrens City Clerk