HomeMy WebLinkAboutCity Council Minutes 06-13-1994 SpecialMINUTES
STUDY SESSION
JUNE 139 1994
A study session of the Plymouth City Council was called to order by Mayor Tierney at
7:05 p.m. in the Public Safety Training Room, 3400 Plymouth Blvd., on June 13, 1994.
PRESENT: Mayor Tierney, Councilmembers Edson, Morrison, Lymangood,
Helliwell.
ABSENT: Councilmembers Anderson and Granath
STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Community,
Development Director Hurlburt, Public Works Director Moore,
Public Safety Director Gerdes, and City Clerk Ahrens.
DISCUSS CITY ECONOMIC DEVELOPMENT POLICY
Manager Johnson presented background information on the need for an economic
development policy and a brief discussion of existing policies and programs. He
suggested that the Council address the following areas in order to provide
direction to staff: Goals, Industrial Parks, Financial Incentives, Downtown
Plymouth, Marketing, and Communications and Relationships.
Councilmember Helliwell stated she is particularly interested in development of
Downtown Plymouth. She would like to see the Council concentrate on this, and
noted that Downtown Plymouth will become even more valuable when northwest
Plymouth develops. She asked what Maple Grove is doing to get so much recent
development.
Manager Johnson stated that Maple Grove has a staff person designated for
economic development. Also, Maple Grove is more aggressive in using tax
increment financing to directly assist developers. Maple Grove only has about
8,000 jobs, compared to Plymouth's 40,000, and he is unaware if the rate of
growth is really greater.
Director Hurlburt stated that Plymouth also has very little remaining retail guided
land in areas where there is interest in retail development.
Manager Johnson stated there has been a lot of interest in purchase and
development of the Cavanaugh parcel. He stated that cities must be careful in the
use of tax increment funds, and cited as an example that the Legislature was
critical of the use of tax increment funds for development of a movie theater by the
City of Apple Valley.
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June 13, 1994
Page 2
Councilmember Helliwell asked what staff needs in order to assist developers who
indicate an interest in locating in Plymouth.
Director Hurlburt stated it would be helpful for staff to have a good understanding
of the Council's development philosophy. Staff receives requests for information
about vacant land, as well as buildings. Staff is working on tracking this
information, possibly through a subscription service with the Twin West Chamber
of Commerce and/or private company.
Councilmembers discussed each of the six areas in the report and submitted
individual written responses to staff.
Mayor Tierney asked if there is some optimal number of jobs the City is trying to
achieve?
Director Hurlburt responded that Plymouth proportionately has more jobs per
capita than most metro cities.
A brief discussion was held on the allowable uses of tax increment financing.
Director Hurlburt stated it can still be used for industrial purposes, but not for
retail development.
Councilmember Edson stated the use of tax increment assistance for industry can
be justified because industrial development will provide a continued stable tax base
for school districts and the City in the future. He has concerns with efforts by
some cities to attract businesses away from other metro cities. He would be
supportive of a state law change whereby tax increment could be used only for
attracting businesses from out of the state.
Director Hurlburt asked if the Council would consider the establishment of new
tax increment districts if it resulted in the City losing a portion of its Local
Government Aid.
Councilmember Edson stated he probably would not support this unless the
business was willing to make up the difference.
Director Hurlburt cited as an example that the City has a current potential project
of about $3 to $4 million. The City could assist with about $500,000 in tax
increment; however, the City would lose about one-third of that amount in HACA
funds. In the long run, it would be a net gain to the City.
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June 13, 1994
Page 3
Manager Johnson stated it could take up to 20 years for the City to recover the
loss of HACA, but the citizens would realize savings much sooner because of the
increased tax support to school districts.
Councilmember Edson stated the Council would have to be selective and need to
see the financial plan and recovery period on a specific project in order to
adequately consider this option. Mayor Tierney stated the Council will also need
to determine how to select which projects it assists in order to be fair.
Councilmember Lymangood stated that target development for the City should be
to retain and expand businesses.
Councilmember Edson agreed that he would rather spend tax increment money for
expansion of existing business than to attract a new business from another metro
community.
Councilmember Helliwell said the City should attempt to attract businesses and
jobs irrespective of where they are currently located.
The Council discussed the future of Downtown Plymouth and all members agreed
that quality development should be a high priority. Some discussion was held
about whether the future development will be retail, civic/cultural, or some
combination.
Councilmember Edson and Mayor Tierney stated they would like to see a
development concept similar to Centennial Lakes in Downtown Plymouth.
Director Hurlburt stated that development of the Cavanaugh parcel will likely set
the tone for the development of the remainder of Downtown Plymouth in the
future. She suggested that the City could conduct a design competition for the
Cavanaugh parcel later in the year.
Councilmember Lymangood stated he would like it be a goal of this Council to
tastefully develop Downtown Plymouth. The development should be rapid, but
needs to be quality.
Councilmember Edson stated that someone should do a report for the Council on
how the City could plan and facilitate the development of Downtown Plymouth. If
the staff does not have the time or expertise to assemble this, the Council should
be advised what outside resources are needed. This should be done in 1994.
Councilmember Edson stated the City needs to participate with other cities and
organizations. About five years ago, Plymouth refused to participate in the cost of
developing a brochure with Twin West Chamber of Commerce.
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June 13, 1994
Page 4
Councilmember Lymangood suggested that Plymouth should be proactive in
establishing an alliance of western cities organization.
Mayor Tierney suggested that major businesses could be featured in the Plymouth
News.
Councilmember Helliwell stated the Plymouth News could include a regular article
on new businesses or major expansions.
Mayor Tierney supported including business news in the Plymouth News rather
than a separate business newsletter. She stated this will send the message that
businesses are a part of the total community.
Councilmember Lymangood stated he would like the Council to address the tax
abatement issue and decline of commercial property values. The Council needs
additional data on this issue, such as whether particular types of businesses or
buildings are affected, history of vacancy rates, and how the City might address
this issue.
Councilmembers submitted to staff their individual ratings of various issues
relating to economic development policy as contained in the staff report. It was
noted that Councilmember Granath had provided written comments on this issue
as well that will be included.
PROCEDURE FOR EVALUATION OF CITY MANAGER
The Council discussed a procedure for evaluation of the City Manager.
Councilmember Edson stated that prior to 1989, two members of the City Council
tabulated the results from Councilmembers for evaluation of the City Manager. He
is unsure what value a consultant lends to the process, and stated the Council
should adopt a system that is easy to complete and tabulate, and that is consistent
so it can be used from year to year if future Councils so desire.
Councilmembers Helliwell and Lymangood said they are not satisfied with the
evaluation form currently used.
Following review of various cities' evaluation forms, the Council indicated they
generally liked the form used by St. Louis Park. The form previously used for
evaluation of the City Manager is too business oriented.
Councilmember Lymangood suggested that the City Manager draft a proposed
form based on the evaluation form used by St. Louis Park for review by the
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June 13, 1994
Page 5
Council by July 15. During scheduled review in August, Councilmembers will
individually complete and sign the evaluation form, and the forms will be tabulated
by a subcommittee of two Councilmembers. The entire Council will then meet to
discuss the results with the City Manager.
The Council discussed who would be involved in the evaluation process.
Mayor Tierney suggested that only the Council be involved in the evaluation
process with the City Manager. If during a future review the Council wants staff
involved, that can be added.
Councilmember Lymangood asked if it would be the City Manager's intention to
gain staff input via a survey. He believes that evaluations are a healthy process and
that a Council and staff evaluation of the City Manager should be on a regular
schedule.
Councilmember Edson agreed that the staff evaluation of the City Manager could
be a regular process once each year, similar to the Council evaluation.
Mayor Tierney stated the Council and staff evaluation of the City Manager should
be implemented this August.
Councilmember Morrison suggested there may be a better format for staff input
than the evaluation form used by the City Council. She would like the City
Manager to develop proposed evaluation forms by July 15 for Council and staff,
based on the St. Louis Park survey.
MOTION was made by Councilmember Lymangood„ seconded by Councilmember
Morrison, to adjourn the meeting at 8:35 p.m.
City Clerk