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Home My WebLink AboutCouncil Information Memorandum 04-26-2018CITY OF PLYMOUTH COUNCIL INFO MEMO April 26, 2018 EVENTS / MEETINGS Planning Commission Agenda for May 2nd ........................................................ Page 2 AMLAC's Aquatic Invasive Species Meeting on May 2nd ......................................... Page 3 Official City Meeting Calendars .................................................................... Page 4 Tentative List of Agenda Items ..................................................................... Page 7 CORRESPONDENCE 2018 Street Sweeping ............................................................................. Page 10 Preliminary Plat for Lake West Development LLC (2018019) ................................ Page 11 REPORTS & OTHER ARTICLES OF INTEREST Christopher & Banks Selling Its Headquarters, but Will Stay Put, Minneapolis/St. Paul Business Journal ................................. Page 12 Tech VC Firm Rally Ventures Seeking $150 Million for Third Fund, Minneapolis/St. Paul Business Journal ........................................ Page 13 Real Estate Experts Weigh in on a Condo Comeback, the Brewery Bubble and Why Co-Working Space Is Here to Stay, Minneapolis/St. Paul Business Journal ....... Page 15 Page 2 From: Patrick Anderson <anderick1@gmail.com> Sent: Tuesday, April 24, 2018 7:17 AM To: Patrick Anderson <anderick1@gmail.com> Subject: AMLAC Meeting on Aquatic Invasive Species From: AMLAC To: All Area Residents who frequently visit Medicine Lake Zebra mussels have arrived in Medicine Lake! Zebra mussels steal nutrients needed by desirable fish, animals and plants. They pose safety hazards to swimmers and boaters. And, they spread quickly. They were first reported last year and urgent action is needed to prevent harm to the lake. What are next steps? The Association of Medicine Lake Area Citizens (AMLAC) invites those who live on, near, or frequently visit the lake and its parks to discuss actions we can take with leaders from the MN DNR, the Bassett Creek Watershed Management Organization, the Three Rivers Park District, the Village of Medicine Lake, and the City of Plymouth. We will discuss plans and volunteer opportunities to monitor and manage zebra mussels, and other invasive aquatic species such as starry stonewort. Creation of a strong prevention plan, and support and action from area residents, is needed to protect Medicine Lake. Wednesday May 2, 2018 7 to 8:30 pm PLYMOUTH CREEK CENTER – Black Box Theater 14800 34th Avenue, Plymouth, Minnesota, 55447 Hope to see you there! Page 3 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 May 2018 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room 7:00 PM PARK & REC ADVISORY COMMISSION MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Medicine Lake Room SUN TUES MON WED THUR FRI SAT MEMORIAL DAY CITY OFFICES CLOSED 5:30 PM COUNCIL/EQC MEETING Organics Recycling Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 6:00 PM Walk with the Mayor Plymouth Creek Center 5:00 PM SPECIAL COUNCIL MEETING Fire Dept. Update Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 10:00 AM Bark in the Park Hilde Performance Center 8:00 AM-12:30 PM Plymouth Crime & Fire Prevention Fund Waffle Breakfast Fire Station III Page 4 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 7:00 PM PLANNING COMMISSION MEETING Council Chambers 21 22 23 24 25 26 27 28 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Medicine Lake Room 29 30 June 2018 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 5:30 PM SPECIAL COUNCIL MEETING TwinWest Up- date/Budget Goals Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room 7:00 PM PARK & REC ADVISORY COMMISSION MEETING Plymouth Creek Center 7:00 PM PLANNING COMMISSION MEETING Council Chambers SUN TUES MON WED THUR FRI SAT CHANGES ARE NOTED IN RED 5:30 PM SPECIAL COUNCIL MEETING State of the Streets in Plymouth Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers Absentee Voting begins for State Primary Election Page 5 SUN MON TUE WED THU FRI SAT 1 2 3 4 INDEPENDENCE DAY CITY OFFICES CLOSED 5 6 7 8 9 10 11 12 13 14 15 16 17 18 7:00 PM PLANNING COMMISSION MEETING Council Chambers 19 20 21 22 23 24 7:00 PM REGULAR COUNCIL MEETING Council Chambers 25 26 27 28 29 30 31 July 2018 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room CITY COUNCIL FILINGS OPEN Mayor, At Large, Ward 2 and Ward 4 SUN TUES MON WED THUR FRI SAT 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Medicine Lake Room 5:30 PM - 10:30 PM Music in Plymouth Hilde Performance Center Page 6 Tentative Schedule for City Council Agenda Items May 8, Special, 5:00 p.m. Medicine Lake Room • Fire Department update • Legislative update May 8, Regular, 7:00 p.m. Council Chambers • Announce Plymouth Creek Center community engagement process (HGA Victor Pechaty) • Consider Rezoning, Preliminary Plat, and Subdivision Code Variance for “The Woods at Taylor Creek” for property located at 5364 and 5370 Vicksburg Lane and Outlot B of Hampton Hills South Plateau (David Hackenmueller and Tim Hidani – 2017110) (Tabled from April 24, 2018) • Adopt resolution advising the disposition of tax forfeited land • Order and Accept Preliminary Engineering Report, Order and Accept Plans and Specifications, Approve Joint Powers Agreement with Three Rivers Park District, Call for a Public Hearing, Order Advertisement for Bids, Declare Costs to be Assessed, and Set Public Improvement and Assessment Hearings for the Fernbrook Lane Mill and Overlay Project (ST189002.001) and Schmidt Lake Road at I-494 Expansion Project (ST180003) • Approve modified Wetland Replacement Plan application for Hampton Hills • Approve Plans and Specifications and Order Advertisement for Bids for Medina Road Trail Project (PR189001.001) and Revere Lane Trail Project (PR189001.002) • Approve Final Payment for the Flashing Yellow Arrow Project, Phase II (15008) • Approve a Site Plan Amendment for exterior lighting at East Medicine Lake Park located at 1740 East Medicine Lake Boulevard (City of Plymouth – 2018028) • Approve Site Plan Amendment, Conditional Use Permit and Variance for a coffee shop with drive-through on property located at 4090 Annapolis Lane (Ryan Company US, Inc. - 2018015) • Public improvement and special assessment hearing and award contract for the Kilmer Park Street Reconstruction project (189001.001) • Public improvement and special assessment hearing for the 2018 Public Works Mill and Overlay project (ST189004.001) • Public hearing on providing host city approval for the issuance of Health Care Facilities Revenue Refunding Bonds for Presbyterian Homes • Consider Rezoning and Preliminary Plat for McConn parcel on property located at 18550 County Road 47 (R & R Island View, LLC – 2018014) • Consider Reguiding and Sketch Plan for a residential subdivision to be called "Greenway North" on property located at 18405, 18515 and 18535 County Road 47, 6035 Troy Lane and 5945 Troy Lane (Pulte Homes of Minnesota – 2018022) • Legislative update May 22, Council/EQC Meeting, 5:30 p.m. Medicine Lake Room • Organics recycling May 22, Regular, 7:00 p.m. Council Chambers • Proclaim June 2 as “Arbor Day” • Project and assessment hearing for the State Highway 55 frontage road construction project (13002) • Legislative update • Quarterly City Manager’s update following regular meeting June 12, Special, 5:30 p.m. Medicine Lake Room Page 7 • TwinWest update • Budget goals June 12, Regular, 7:00 p.m. Council Chambers • Public improvement and special assessment hearing for the Troy Lane reconstruction project (ST180002) June 26, Special, 5:30 p.m. Medicine Lake Room • State of the Streets in Plymouth June 26, Regular, 7:00 p.m. Council Chambers • Appoint election judges for the 2018 Primary and General Elections • Public improvement and special assessment hearing for the 2018 Mill and Overlay project (ST189004.002) July 24, Regular, 7:00 p.m. Council Chambers August 21, Special, 5:30 p.m. Medicine Lake Room • Budget and CIP • If necessary, conduct regular meeting at 7 p.m. and then recess back to study session August 28, Special, 5:30 p.m. Medicine Lake Room • Budget and CIP August 28, Regular, 7:00 p.m. Council Chambers September 4, Special, 6:00 p.m. Medicine Lake Room (if needed) • Budget and CIP September 11, Regular, 7:00 p.m. Council Chambers • City Manager’s 2018 Financial Overview • Consider 2019 proposed budget, preliminary general property tax levy, HRA levy and setting budget public hearing date September 25, Regular, 7:00 p.m. Council Chambers October 9, Regular, 7:00 p.m. Council Chambers October 23, Regular, 7:00 p.m. Council Chambers November 13, Special, 5:30 p.m. Medicine Lake Room (if needed) • Budget and CIP November 13, Regular, 7:00 p.m. Council Chambers • Canvass 2018 General Election results November 27, Regular, 7:00 p.m. Council Chambers December 11, Regular, 7:00 p.m. Council Chambers • Recognize Police Citizen Academy graduates • Public hearing on 2019 budget, general property tax levy, HRA levy, and 2019-2023 Capital Improvement Program Page 8 BUDGET PROCESS Budget Calendar 2018-2019 Biennial Budget Preparation & 5-yr Capital Improvement Plan Date Category Description April 23, 2018 Budget Departments receive budget instruction June 12, 2018 Budget Council Study Session – Budget Goals April – June 2018 Budget Departments prepare budgets May 7, 2018 Budget Personnel changes submitted to HR June 11, 2018 Budget Budgets submitted to Finance July 9 – July 13, 2018 Budget Department meetings August 10, 2017 Budget Council receives budget materials for upcoming meeting August 21, 2018 Budget & CIP Council study session (Budget & CIP meeting #1) August 28, 2018 Budget & CIP Council Study Session (Budget & CIP meeting #2) Council Regular Session (Financial Overview) September 4, 2018 Budget & CIP Council Study Session (Budget meeting #3) (if needed) September 11, 2018 Budget Council adopts preliminary levies & budget (Budget meeting #4) October 3, 2018 CIP Planning Commission public hearing November 13, 2018 Budget Council Study Session (Budget meeting #5) (If needed) December 11, 2018 Budget & CIP Budget Public Hearing, CIP, Budget & Levy Adoption December 26, 2018 Budget Levy is certified with Hennepin County Page 9 On Monday April 30th, staff anticipates delivery of a replacement broom street sweeper and staff will be trained on the new machine as soon as possible. The broom sweeper will be deployed to begin sweeping the City Center area as early as next week. The 2018 contracted full city street sweeping is scheduled to begin no later than Monday May 7th in the northeast quadrant of the City where streets can be swept ahead of hydrant flushing. The contractor, Reliakor, will work counterclockwise through the City until all City streets have been swept. This sweeping typically takes three weeks and therefore completion of the first of three City wide sweeps is expected by the end of May. The second contracted full city sweep is scheduled to begin in early June and the third in mid to late August. Memorandum To: CIM From: Derek Asche, Water Resources Manager Date: April 26, 2018 Item: 2018 Street Sweeping Page 10 Page 11 4/23/2018 Christopher & Banks selling its headquarters, but will stay put - Minneapolis / St. Paul Business Journal https://www.bizjournals.com/twincities/news/2018/04/23/christopher-banks-selling-its-headquarters-but.html?s=print 1/1 From the Minneapolis / St. Paul Business Journal: https://www.bizjournals.com/twincities/news/2018/04/23/christopher-banks- selling-its-headquarters-but.html Christopher & Banks selling its headquarters, but will stay put Apr 23, 2018, 6:53am CDT Christopher & Banks Corp. said Monday it has agreed to sell its Plymouth headquarters building in a deal worth $13.65 million. The retailer didn't name the buyer for 2400 Xenium Lane N., saying only that it had signed a purchase agreement with a "private, unaffiliated investor group." Christopher & Banks (NYSE: CBK) plans to remain as a tenant in the building, which also houses the company's distribution operations and sole data facility, according to securities filings. CEO Keri Jones, who took over at Christopher & Banks earlier this year, said that the deal, "once completed, will provide greater financial flexibility as we execute on our strategic initiatives to drive improved performance." Christopher & Banks has struggled in recent years to refocus its stores. It axed former CEO LuAnn Via in January after a disappointing holiday quarter. Mark Reilly Managing Editor Minneapolis / St. Paul Business Journal FOR THE EXCLUSIVE USE OF BLANDHAUSER@PLYMOUTHMN.GOV MENU  Account  Page 12 4/24/2018 Tech startup investor Rally Ventures is seeking $150 million for its third fund - Minneapolis / St. Paul Business Journal https://www.bizjournals.com/twincities/news/2018/04/24/tech-vc-firm-rally-ventures-seeking-150-million.html?s=print 1/2 NANCY KUEHN | MSPBJ Jeff Hinck is a general partner at Rally Ventures, which has an office in Minnetonka. From the Minneapolis / St. Paul Business Journal: https://www.bizjournals.com/twincities/news/2018/04/24/tech-vc-firm-rally- ventures-seeking-150-million.html Tech VC firm Rally Ventures seeking $150 million for third fund  SUBSCRIBER CONTENT: Apr 24, 2018, 1:42pm CDT Rally Ventures, one of the most active investors in Twin Cities tech startups, is raising $150 million for its third fund, according to a regulatory filing. The venture firm backs business-to-business tech companies and is led locally by General Partner Jeff Hinck, who has an office in Minnetonka. The firm also has operations in Silicon Valley led by Charles Beeler. Hinck couldn't immediately be reached for comment on the new fund. Rally has invested in several Twin Cities tech companies in recent years, including several that were sold or went public. Among its exited portfolio companies are Minneapolis-based SportsEngine, which was sold to NBC Sports in 2016, and enStratius, which Dell bought in 2014. Rally's most recent fundraising effort comes about three years after it started seeking $120 FOR THE EXCLUSIVE USE OF BLANDHAUSER@PLYMOUTHMN.GOV MENU  Account  Page 13 4/24/2018 Tech startup investor Rally Ventures is seeking $150 million for its third fund - Minneapolis / St. Paul Business Journal https://www.bizjournals.com/twincities/news/2018/04/24/tech-vc-firm-rally-ventures-seeking-150-million.html?s=print 2/2 million for its second fund. The firm didn't announce the launch of that fund, but remained an active investor in the following years. In 2017, Rally put capital into at least two Minnesota companies: Plymouth-based data-storage startup Atavium Inc., which raised $8.65 million, and Minneapolis- based food-delivery venture Foodsby Inc., which closed on $5.9 million. Part of Rally's business model is to connect startups with a network of technology partners, including executives at large companies. Rally, then called Icon Venture Partners, raised $100 million for its first fund five years ago. The University of Minnesota's endowment has invested in the firm's funds in the past. Arthur Ventures, another active Minnesota tech investor, has also been trying to refill its coffers. The firm, which has offices in Fargo, N.D., and Minneapolis, started raising a $50 million fund last year. Katharine Grayson Senior Reporter Minneapolis / St. Paul Business Journal Page 14 4/26/2018 Twin Cities commercial real estate experts weigh in on a condo comeback, the brewery bubble and why co-working space is here to stay … https://www.bizjournals.com/twincities/news/2018/04/26/real-estate-experts-weigh-in-on-a-condo-comeback.html?s=print 1/3 NANCY KUEHN Kelly Doran (left) gets laughs from other panelists at the Minneapolis/St. Paul Business Journal's CRE Update forum. From left are Brent Erickson, Chris Garcia, Bill Katter and Jeff Mitchell From the Minneapolis / St. Paul Business Journal: https://www.bizjournals.com/twincities/news/2018/04/26/real-estate-experts-weigh-in-on-a-condo-comeback.html Real estate experts weigh in on a condo comeback, the brewery bubble and why co-working space is here to stay  SUBSCRIBER CONTENT: Apr 26, 2018, 4:00am CDT The future of Twin Cities real estate includes a whole lot more apartments and co- working space, fewer breweries and perhaps a condo boom. That’s according to a panel of experts who spoke at the Minneapolis/St. Paul Business Journal’s annual Commercial Real Estate Update breakfast last week at the Renaissance Depot in Minneapolis. The panelists included: Kelly Doran, CEO of Bloomington-based Doran Cos. Bill Katter, president and chief investment officer at Minneapolis-based United Properties Chris Garcia, founding principal of the Twin Cities office of Lee & Associates, an industrial brokerage Brent Erickson, an office broker and senior managing director of Newmark Knight Frank’s Minneapolis-St. Paul office Jeff Mitchell, a retail and restaurant broker and vice president of Minneapolis-based Hoyt Properties Here's a recap of the discussion: Condo comeback Doran and Katter are two heavyweight Twin Cities developers, so audience members took note when they offered differing opinions on a potential condo comeback. Condo development has stalled for several years. One exception is a large-scale condo project in the Mill District called The Legacy that was started by the late Jim Stanton and his company, Shamrock Development. However, a few new proposals have cropped up, mainly Alatus' 40-story condo tower near St. Anthony Main and Ryan Cos. US Inc./Arcadia’s 41- story condo tower on West River Parkway. Doran has 2,500 apartments either in planning or under construction and doesn’t have any short-term plans of jumping into the condo game. Despite some changes the Minnesota Legislature enacted last year to reduce the risk of litigation for developers of condos, building them is still too risky, Doran said. “Most contractors and architects still can’t get insurance to design and build condos,” he said. “So it’s very difficult to do that.” The other issue, Doran said, is whether or not the market will support prices of $700 to $900 per-square-foot for a condo. “There’s not a lot of examples in Minneapolis of people paying that kind of dollar for a condo,” he said. “Will someone pay $600,000 for a one-bedroom condo in downtown Minneapolis? I wouldn’t want to build a lot of those, put it that way.” Katter's company is planning a 33-story building at Nicollet Mall and Washington Avenue with 18 condos on the top floors. He said Stanton’s units are selling at strong prices. FOR THE EXCLUSIVE USE OF BLANDHAUSER@PLYMOUTHMN.GOV MENU  Account  Page 15 4/26/2018 Twin Cities commercial real estate experts weigh in on a condo comeback, the brewery bubble and why co-working space is here to stay … https://www.bizjournals.com/twincities/news/2018/04/26/real-estate-experts-weigh-in-on-a-condo-comeback.html?s=print 2/3 “For Stanton, there was a significant margin on that project, probably more then he would have made on apartments,” Katter said. “Whereas if you’re building apartments, you have a lot of competition. So I would say the profitability of condos has risen to the point where there’s a unique margin and there will be developers that are willing to take the risk of construction defect.” One reason the demand for condos is increasing is that downsizing empty nesters don’t want to go from a 5,000-square- foot home in the suburbs to a 900-square-foot apartment, Katter said. Apartment units are shrinking while condos tend to be larger, with higher-quality finishes. “If you look, condo prices have crept up really fast,” Katter said. “If you look at the Carlyle … those units are selling at or above today’s replacement cost.” Doran pointed out that buyers of condos in a new building have to wait 10 years before they gain equity. “The buyer loses money. You have to commit yourself for 10 years typically before you can get your money back out. That’s not every building, but that’s on average," he said. Katter replied: “I think you lose money if you build a new home in Edina today, too. I think that’s a fundamental shift in home ownership. It’s almost impossible to create equity in building a home.” Co-working here to stay It seems these days like every office building is adding a floor or two of co-working space, with operators like WeWork, Industrious and CoCo expanding in the market. Erickson said the trend is here to stay. A driving force is that construction costs are on the rise, and that means that companies wanting to build out a new office space have to shell out big bucks. “Companies and employers looking to deliver this cool and unique space are either signing longer-term leases so they get a bigger tenant improvement allowance from landlords … [or] the alternative is to do something short term," he said. "But when you’re signing short-term leases, you don’t get that funding from the landlord and it’s more challenging for a tenant to pay for all those improvements.” Thus the rise in co-working spaces, which usually have all the amenities of a high-class office with less of a commitment required from tenants. “That’s where co-working is really hitting the mark, by producing cool and unique space and not having to sign a long-term lease,” Erickson said. Breweries not so much The proliferation of breweries across the Twin Cities hasn’t just been a blessing for beer drinkers, it’s also helped fill space in industrial buildings at higher rents. Garcia worked on a deal to backfill a former North Minneapolis industrial building with a brewery last year. “The building was industrial, historically with rates of $4.25 per square foot,” he said. “These … breweries, they are paying rates closer to $8. If you’re an industrial owner and you can all of a sudden double your value, that makes more sense. Your improvements are a little higher, but ultimately that is attractive.” But here’s the looming concern: After building owners and breweries have shelled out hundreds of thousands of dollars on brewing equipment and taproom buildouts, what happens if the bubble bursts? Signs are already showing up as Summit Brewing Co. laid off several employees and a couple breweries have closed. “Just like with every retail concept, I think we have gone a little too far,” Mitchell said of the brewery boom. “The competition for taps, shelves in liquor stores [is tough], and I think you’ll see … places closing down.” So what will backfill the breweries? Page 16 4/26/2018 Twin Cities commercial real estate experts weigh in on a condo comeback, the brewery bubble and why co-working space is here to stay … https://www.bizjournals.com/twincities/news/2018/04/26/real-estate-experts-weigh-in-on-a-condo-comeback.html?s=print 3/3 “Distilleries might be the next thing to pick up,” Mitchell said. “The margins are good. I don’t think we’ve hit the peak.”’ The death of the big box retailer With the recent bankruptcy of Bon-Ton stores, leading locally to the demise of the Herberger's chain, and ongoing struggles at Macy’s Inc., J.C. Penney and Sears, many malls and shopping centers are losing their anchors. It’s about time, said Doran, who spent much of the 1990s developing shopping centers. “Twenty years ago, most retailers had room temperature IQs and they bought a bunch of s*** and put it on the shelves, and it all got sold,” he said to laughs. “It’s much more complicated, and some of these retailers are just not very good at their business and they need to die.” While malls in strong trade areas like Southdale Center in Edina are having luck backfilling with a Life Time fitness location and other Amazon-proof concepts, landlords, particularly in weaker trade areas, will need to readjust their expectations, Mitchell said. “If you’re in a good market where the baby boomers are moving out and the Gen Xers and millennials are moving in, it’s a good solid market. They’ve had no problem backfilling those,” Mitchell said. “[But] they aren’t getting the same rent. There’s TI [tenant improvements], downtime and brokers' [fees], so to refill that space, the rent number may be a lot different.” Retail's loss is industrial's gain As Amazon and other e-commerce companies beef up, it may come at the expense of bricks-and-mortar retail, but it may be to the benefit of industrial developers and landlords. “Industrial has definitely benefited from the e-commerce movement, and the trend will continue for a long time,” Mitchell said. “We will be seeing more warehouses and … last-mile [facilities]. Amazon is trying to get down to hourly delivery, which [needs space] in the core urban area.” But e-commerce companies are having trouble finding warehouse space in core urban areas. “In Edina, for example, industrial has been pushed out,” Katter said. “The last mile is really a challenge. I know the Amazons and Walmarts want to get closer to the consumer base, but it’s really hard to find industrial sites [in the inner ring].” Nick Halter Staff Reporter/Broadcaster Minneapolis / St. Paul Business Journal Page 17