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HomeMy WebLinkAboutCity Council Minutes 07-12-1993 SpecialMINUTES STUDY SESSION JULY 129 1993 A special meeting study session of the Plymouth City Council was called to order by Mayor Bergman at 4:00 p.m. in the Council Conference Room of the City Center, 3400 Plymouth Blvd., on July 12, 1993. PRESENT: Mayor Bergman, Councilmembers Edson, Helliwell, Tierney, and Vasiliou ABSENT: None STAFF PRESENT: City Manager Johnson, Assistant City Manager Lueckert, Acting Community Development Director Ryan, Finance Director Hahn, Public Works Director Moore TAX INCREMENT FINANCING APPLICATIONS Manager Johnson stated in April the City Council approved a resolution inviting tax increment assistance applications within existing tax increment districts which are due to expire over the next several years. About 200 letters were sent to various businesses in these districts and four applications for TIF assistance have been received. The City has also received a TIF application for a location outside of an existing district. He recommended that the City Council develop some criteria for review of these applications based upon legal considerations, prevailing practices, and the City's objectives. He suggested that the Council discuss what types of projects should be assisted, what kind of TIF assistance the City would be willing to provide, what the TIF assistance should be used for, and what standards the City should apply to the "but for" test. He described a number of criteria which could be used to judge applications. Manager Johnson explained the "but for" test. State law requires that the City find that the project would not occur "but for" the assistance provided by TIF. He asked if the Council believed the City should require evidence that the project would not occur in Plymouth but for TIF assistance. Or, the "but for" criteria could be expanded to whether the project would occur within the west suburban area, within the metro area, or within the State of Minnesota. He asked if the test would be met if the project probably would not occur within the next several remaining years of the TIF district, which is how long a project would be assisted. Discussion was held on whether TIF should be used to encourage additional retail. Council Study Session July 12, 1993 Page 2 Councilmember Vasiliou described a TIF situation in another part of the State where TIF was used to compete with existing retail. She stated this was not a good application of the "but for" rule. Councilmember Helliwell stated that TIF could be used in retail situations where there are poor soils. She may be interested in attracting a use such as movie theaters, but she is concerned about using TIF for commercial and industrial with the vacancy rates currently so high. Manager Johnson noted that the City has received one request to create a new TIF district. The Legislature has not been supportive of this. Councilmember Edson stated that he wants to avoid unsettling competition through the use of TIF. Manager Johnson asked if the Council would be interested in using TIF for spec buildings. Mayor Bergman stated there may be some advantage to supporting start-up companies. Councilmember Vasiliou expressed concern about value adjustments resulting from the use of TIF. She asked if TIF could be used for a Harbor Lane type of project and asked if the City could use TIF to develop its own land, such as downtown Plymouth. Councilmember Edson stated that the Council should consider vacancy rates and how the overall community can get an economic benefit from the use of TIF. Councilmember Helliwell asked what type of applications have been received. She would like to review them. Manager Johnson stated the applications range from expansion of existing structures, new retail, spec building, and soils correction. Councilmember Tierney suggested that the Council may be able to rank these types of TIF uses in order to determine a priority. Councilmember Edson felt that the Council needs more response from applicants to the "but for" rule. Council Study Session July 12, 1993 Page 3 Manager Johnson stated some applicants have indicated an interest in bonding, but it may be too short a time frame to accommodate. Bonding may also impact credit rating. A member of the audience indicated they were not referring to bonding, but to a loan from existing TIF funds. Councilmember Edson stated that the use of TIF funds for infrastructure not normally assessed, such as overpasses, is appropriate. He would not support the use of TIF funds for improvements that are normally assessed, such as sewer and water. He indicated concerns about the short time frame involved and the advantage of getting improved property back on the tax rolls. He suggested that the applications be reviewed by the Council on July 19. Manager Johnson stated Plymouth has historically been conservative in the use of TIF. It has been used for public infrastructure improvements, not to support development. ASSESSMENT POLICY FOR NEW COUNTY ROAD 9 AND DUNK RK LANE Public Works Director Moore stated that following the public improvement hearing, the City Council ordered construction of the new County Road 9 and Dunkirk Lane improvement projects. At the same time, the Council scheduled a study session to discuss possible assessment methods. Prior to the hearing held by the Council, staff presented two methods of assessment. It was recognized that there are many alternatives that could be used. The two major developers in the area, U.S. Homes and Forbragd-Harstad indicated that they may suggest alternate assessment methods. He noted that the assessment issue is separate from the construction of the projects. Manager Johnson reminded the Council that they legally cannot assess more than the benefit derived from an improvement. Director Moore stated that the proposed per rate foot for assessment has been reduced since the June 21 meeting based on revised cost estimates. He stated the proposed assessment method is no different from that used for other collector streets. Councilmembers expressed concerns about the proposed assessments for the church property, and asked if the right-of-way dedication could offset a portion of the assessment. Council Study Session July 12, 1993 Page 4 Mayor Bergman stated that if the church property assessment is reduced, someone else will have to pick up the burden. Councilmember Edson stated that the church parcel is unique because it is bordered by streets on three sides. He suggested the Council consider assessing the Dunkirk project on a per foot basis and the County Road 9 project on an area basis. A member of the audience stated that if the Council is considering changing the assessment method, the developers would like more time for discussion. Audience members stated that County Road 9 should be funded and constructed by the county because it doesn't provide benefit for city residents. They suggested that the road could be graded but not constructed. After further discussion, this topic was continued to a study session at 5:00 p.m. on Monday, July 26. PROPOSAL FOR RENOVATION OF CITY COUNCIL CHAMBERS/ CONFERENCE ROOM Property Management Coordinator Tabery and Communications Coordinator LaFave showed a videotape of four comparable city council chambers. Coordinator Tabery stated that with the expansion to a seven member council in January, at least minimal improvements will be needed in the chambers to accommodate Council and staff seating. Mayor Bergman stated there is a definite need for improved audio for residents attending meetings, as well as those watching the video at home. Discussion on the breadth of the project was held. Coordinator Tabery didn't envision that any walls would be moved; but the project could range from major improvements to very minor changes such as moving the Attorney and Clerk to a staff table to accommodate the two new Councilmembers. Coordinator Tabery suggested that the Council solicit requests for proposals from firms experienced in designing and renovating council chambers. The Council concurred and directed staff to request proposals. PROCEDURE FOR CITY MANAGER EVALUATION Manager Johnson stated that Harry Brull, PDI, has provided a questionnaire that could be used for a six month city manager evaluation. Manager Johnson also provided an evaluation form used in Shoreview as an alternate to the format Council Study Session July 12, 1993 Page 5 provided by Mr. Brull. The Council concurred with the proposed process for City Manager evaluation, and directed staff to distribute the appropriate forms for completion by Councilmembers and staff members. The meeting was adjourned at 6:45 p.m.