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.