HomeMy WebLinkAbout11/20/2012 CITY OF APPLE VALLEY
Dakota County, Minnesota
November 20, 2012
Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota,
held November 20, 2012, at 7:00 o'clock p.m., at Apple Va11ey Municipal Center.
PRESENT: Mayor Hamann-Roland; Councilmembers Bergman, Goodwin, Grendahl, and
Hooppaw.
- ABSENT: None.
City staff inembers present were: City Administrator Lawell, City Clerk Gackstetter, City
Attorney Hills, Public Works Director Blomstrom, Associate City Planner Bodmer, Recreation
Superintendent Breuer, Assistant City Administrator Grawe, Human Resources Manager Haas,
Finance Director Hedberg, City Planner Lovelace, City Engineer Manson; Community
Development Director Nordquist, Police Chief Rechtzigel, and Fire Chief Thompson.
Mayor Hamann-Roland called the meeting to order at 7:00 p.m. Everyone took part in the Pledge
of Allegiance to the flag.
APPROVAL OF AGENDA
MOTION: of Bergman, seconded by Hooppaw, approving the agenda for tonight's meeting, as
presented. Ayes - 5- Nays - 0.
AUDIENCE
Mayor Hamann-Roland asked if anyone was present to address the Council, at this time, on any
item not on this meeting's agenda. No one requested to speak.
CONSENT AGENDA
Mayor Hamann-Roland asked if the Council or anyone in the audience wished to pull any item
from the consent agenda. Councilmember Grendahl requested an item be moved to the regular
agenda.
MOTION: of Bergman, seconded by Grendahl, moving item 4.I.2 — Kimley-Horn and
Associates, Inc., to Conduct Red Line/Cedar Avenue BRT Market and
Development Standards Study, to the regular agenda, and approving all remaining
items on the consent agenda. Ayes - 5- Nays - 0.
CONSENT AGENDA ITEMS
MOTION: of Bergman, seconded by Grendahl, approving the minutes of the regular meeting
of November 8, 2012, as written. Ayes - 5- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
November 20, 2012
Page 2
MOTION: of Bergman, seconded by Grendahl, approving the minutes of the special meeting
of November 13, 2012, as written. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Grendahl, adopting Resolution No. 2012-217 accepting,
with thanks, the donation of $210.00 from William VanderBie and family in
memory of Elizabeth VanderBie, for the beautification of Lebanon Cemetery.
Ayes - 5 - Nays - 0.
MOTION: of Bergman, seconded by Grendahl, approving issuance of a lawful gambling
exempt permit, by the State Gambling Control Board, to Apple Valley American
Legion, Squadron 1776, for use on January 12, 2013, at the Apple Valley American
Legion, 14521 Granada Drive, and waiving any waiting period for State approval.
Ayes - 5 - Nays - 0.
MOTION: of Bergman, seconded by Grendahl, approving issuance of a lawful gambling
exempt permit, by the State Gambling Control Board, to Valley Athletic
Association, for use on February 11, 2013, at Buffalo Wild Wings, 14658 Cedar
Avenue, and waiving any waiting period for State approval. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Grendahl, appointing Planning Commission Chair Tom
Melander to fill the vacancy on the Economic Development Authority (EDA)
Board. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Grendahl, adopting Resolution No. 2012-218 approving
the Public Works Department Policy Manual, Section 1.09 - Driver Feedback
Equipment Policy. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Grendahl, adopting Resolution No. 2012-219 approving
a two-year extension of Cobblestone Lake Senior Complex Addition preliminary
plat. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Grendahl, adopting Resolution No. 2012-220 approving
reauthorizing issuance of a building permit for Cobblestone Lake Senior Complex,
with conditions, as originally listed in Resolution No. 2008 246. Ayes - 5- Nays -
0.
MOTION: of Bergman, seconded by Grendahl, adopting Resolution No. 2012-221 approving �
an Interim Use Permit to allow crushing and temporary storage of concrete material
at Menards-Hanson property, with conditions as recommended by the Planning
Commission. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Grendahl, adopting Resolution No. 2012-222 approving
plans and specifications for AV Project 2012-108, Water Treatment Facility
expansion, and authorizing advertising for receipt of bids, at 10:00 a.m., on January
29, 2013. Ayes - 5- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
November 20, 2012
Page 3
MOTION: of Bergman, seconded by Grendahl, approving the contract for AV Project 2012-
131, Well Pumps 6, 11, 13 and High Zone Pump 4 maintenance, with Keys Well
Drilling, in the amount of $87,502.00, and authorizing the Mayor and City Clerk to
sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Grendahl, accepting Liquor Store No. 2- Cooler poor
Replacement Project, as complete and authorizing final payment on the contract
with AA Equipment Company, in the amount of $15,916.63. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Grendahl, accepting AV Project 2012-102, 2012 Micro
Surfacing, as complete and authorizing final payment on the contract with Asphalt
Surface Technologies Corporation, in the amount of $52,052.69. Ayes - 5- Nays -
0.
MOTION: of Bergman, seconded by Grendahl, approving hiring the full time employees, as
listed in the Personnel Report dated November 20, 2012. Ayes - 5- Nays - 0.
END OF CONSENT AGENDA
RED LINE/CEDAR AVENUE BRT MARKET STUDY
Councilmember Grendahl questioned the $200,000 grant agreement to study the Cedar Avenue
BRT market and development standards and the density of development. Everything she is seeing
is referencing higher density. She does not believe that is what residents want.
Ms. Bodmer said the HUD Sustainable Communities Regional Planning Grant is available to the
City through its Partnership with Corridors of Opportunity. The study involves four cities and two
counties. Apple Valley will co-lead the study with Dakota County. On June 9, 2011, the City
Council approved the sub-recipient grant with the Metropolitan Council, who is administering the
grant.
Councilmember Grendahl said she thinks the development will occur without government needing
to study it. Considering the current deficit, she has concerns spending this much money on
another Cedar Avenue study.
Discussion was held.
MOTION: of Goodwin, seconded by Hooppaw, approving the Agreement to conduct the Red
Line/Cedar Avenue BRT Market and Development Standards Study, with Kimley-
Horn, and authorizing the Mayor and City Clerk to sign the same. Ayes - 4- Nays
- 1 (Grendahl).
CITY OF APPLE VALLEY
Dakota County, Minnesota
November 20, 2012
Page 4
2013 ON-SALE LIOUOR AND W1NE LICENSE RENEWALS
Ms. Gackstetter reviewed her memo regarding renewal applications for On-Sale Intoxicating
Liquor, Club, Wine, and 3.2 Percent Malt Liquor licenses for 2013. City Code requires a public
hearing on all On-Sale liquor renewal applications. She noted receipt of the affidavit of
publication of the hearing notice and stated no comments have been received. The Finance
Department checked Dakota County tax records and confirmed all taxes are paid. The City Clerk
checked the Minnesota Department of Revenue's delinquent taxpayers list and none of the
licensees are listed. She also confirmed with the Minnesota Department of Agriculture that the
licensees are in compliance. The Police Department reviewed its contacts and incident responses
and only had concerns regarding one of the licensees. Therefore, it was requested the public
hearing on Spoon, Inc., d/b/a Spoon be conducted separately. Ms. Gackstetter stated that although
the On-Sale 3.2 Percent Malt Liquor renewal licenses are included in the public hearing this
evening, there will be no action requested for them. Action on a113.2 Percent Malt Liquor licenses
will take place at the December 13, 2012, meeting.
Mayor Hamann-Roland called the public hearing to order at 7:22 p.m. to consider renewal
applications for all On-Sale Intoxicating Liquor, Club, Wine, and 3.2 Percent Malt Liquor licenses
for the year 2013, except for Spoon, Inc., d/b/a Spoon. The Mayor asked for questions or
comments from the Council and the audience. There were none and the hearing was declared
closed at 7:23 p.m.
MOTION: of Bergman, seconded by Goodwin, approving renewal, for 2013, of On-Sale
Intoxicating Liquor, On-Sale Club Intoxicating Liquor, Special License for Sunday
Liquor Sales, and On-Sale Wine licenses, subject to receipt of the necessary fees
and documents, by adopting Resolutions No. 2012-223 for Apple Minnesota, LLC,
d/b/a Applebee's Neighborhood Grill & Bar; No. 2012-224 for Apple Valley Grill,
LLC, d/b/a Wild Bill's Sports Saloon; No. 2012-225 for Blazin Wings, Inc., d/b/a
Buffalo Wild Wings Grill & Bar #28; No. 2012-226 for El Azteca Apple, Inc.,
d/b/a El Azteca Mexican Restaurant; No. 2012-227 for El Toro of Apple Valley,
Inc., d/b/a El Toro Mexican Restaurant; No. 2012-228 for GSTL Investment, LLC,
d/b/a Valley Tap House; No. 2012-229 for H.O.C., Inc., d/b/a Rascals-Apple
Valley Bar & Grille; No. 2012-230 for Hiraku Japanese Restaurant, Inc., d/b/a
Kami Japanese Restaurant; No. 2012-231 for Lancer Food Service, Inc., d/b/a
Lancer Food Service; No. 2012-232 for Osaka AV, Inc., d/b/a Osaka Seafood
Steakhouse; No. 2012-233 for Red Robin International, Inc., d/b/a Red Robin
America's Gourmet Burgers & Spirits #631; No. 2012-234 for Rich Management,
Inc., d/b/a Bogart's/Apple Place Bowl; No. 2012-235 for RT Minneapolis
Franchise, LLC, d/b/a Ruby Tuesday; No. 2012-236 for UASanders, LLC, d/b/a
Panino Brothers; No. 2012-237 for Wadsworth Old Chicago, Inc., d/b/a Old
Chicago; No. 2012-238 for Water's Edge Restaurant, LLC, d/b/a Enjoy!; No. 2012-
239 for Apple Valley American Legion, Post 1776; No. 2012-240 for Chipotle
Mexican Grill of Colorado, LLC, d/b/a Chipotle Mexican Grill; No. 2012-241 for
D& D of Minnesota, Inc., d/b/a Famous Dave's BBQ Shack; and No. 2012-242 for
CITY OF APPLE VALLEY
Dakota County, Minnesota
November 20, 2012
Page 5
The Noodle Shop, Co. - Colorado, Inc., d/b/a Noodles & Company. Ayes - 5-
Nays - 0.
Ms. Gackstetter then reviewed the information regarding the renewal application for On-Sale
Intoxicating Liquor for Spoon, Inc., d/b/a Spoon. She noted legal counsel for the licensee has
requested a continuance of the public hearing.
Mayor Hamann-Roland called the public hearing to order at 7:25 p.m. to consider the 2013
renewal application for the On-Sale Intoxicating Liquor license and Special License for Sunday
Liquor Sales for Spoon, Inc., d/b/a Spoon. The Mayor asked for questions or comments from the
Council and the audience.
Councilmember Goodwin said he is perplexed that the licensee is opting not to speak this evening.
Councilmember Hooppaw stated he does not want this to drag out past the next meeting and
prefers to have all the discussion at one meeting.
Mayor Hama.nn-Roland stated the City Council takes this matter seriously.
MOTION: of Hooppaw, seconded by Goodwin, to continue the public hearing on the 2013
renewal application for the On-Sale Intoxicating Liquor License and Special
License for Sunday Liquor Sales for Spoon, Inc., d/b/a Spoon to the regular City
Council meeting of December 13, 2012. Ayes - 5- Nays - 0.
TAX INCREMENT FINANCING DISTRICT 15
Mr. Hedberg said the Council is requested to hold a public hearing on a new Tax Increment
Financing (TIF) District. TIF District No. 15, also known as Parkside Village, is located north and
east of 153rd Street and Galaxie Avenue. He described various details of the housing district,
which requires 20% of its units to be occupied by renters whose income does not exceed 50% of
the household median income threshold. He then reviewed the prior Memo of Understanding with
IMH Special Asset NT 176-AVN, the property owner. He also reviewed the Parkside Village
Master Plan, the Tax Increment Financing Plan, the revenue sources and use statement, county and
school input, future actions, and requested actions. He noted that the action this evening creates
the tool, and additional action would be required to use the tool.
Councilmember Bergman asked if the City is intending to create additional TIF housing districts.
Mr. Nordquist responded this is the first and only housing district proposed by the City of Apple
Valley.
Discussion was held.
Councilmember Grendahl said according to her research on the State Auditor's website,
affordability is the driving force of a housing district. She noted Apple Valley already meets its
CITY OF APPLE VALLEY
Dakota County, Minnesota
November 20, 2012
Page 6
affordable housing requirements. She does not believe this was the Council's vision for this site.
She asked how much assistance the developers would get.
Mr. Hedberg said the TIF note would be for $5,350,000. Based on various assumptions and
depending on the increments generated and the other criteria, it is estimated the developers would
get up to $8,400,000 including interest.
Councilmember Grendahl questioned spending that amount on 60 units. She then commented on
other properties that are in foreclosure.
Mayor Hamann-Roland asked about the taxes.
Mr. Hedberg stated one of the requirements of the Memo of Understanding was that they become
current on their property taxes, which they have done.
Councilmember Grendahl commented on the federal ta� code and its potential impact on
apartment buildings.
Councilmember Hooppaw asked if the City is contemplating bond issuance as part of this project.
Mr. Hedberg said na
Councilmember Hooppaw asked what security the City would have if the project did not move
forward.
Mr. Hedberg responded that the security is still being negotiated; however, the City is seeking a
Letter of Credit that would be held until the building is occupied.
Councilmember Goodwin said when the project was first proposed, the apartments were supposed
to be market rate. He asked for clarification regarding the income that would qualify for the
affordable housing units.
Mr. Nordquist stated it is 50% of the median income, or approximately $41,000 or less, based on
family size.
Mr. Tony Patinella, of Titan Development, said the affordable and market rate units will be built
with the same finishes and amenities.
Mayor Hamann-Roland noted the property has a lot of assessments. This tool gives the City an
opportunity to deal with the assessments as well as get a quality development.
Discussion continued.
Mr. Nordquist added the Planning Commission unanimously approved both the land use proposal
and use of Tax Increment Financing assistance for this type of development at this location.
CITY OF APPLE VALLEY
Dakota County, Minnesota
November 20, 2012
Page 7
Councilmember Grendahl questioned the amount of the assistance.
Mr. Hedberg said the assistance is the amount needed to address the delinquent and current
assessments on the property.
Councilmember Grendahl said that means the City would be subsidizing all the housing in this
development, not just the affordable housing, and that is something she cannot support.
Councilmember Goodwin stated that the project will not get built without TIF.
Mayor Hamann-Roland called the public hearing to order at 8:25 p.m. to consider amendments to
the Master Development District to include the establishment of Increment Financing District No.
15 — Parkside Village. The Mayor asked for questions or comments from the Council and the
audience. There were none and the hearing was declared closed at 8:26 p.m.
MOTION: of Goodwin, seconded by Hooppaw, adopting Resolution No. 2012-243 approving
amendments to the Master Development Program for Master Development District,
the establishment of Tax Increment Financing Dis'trict No. 15, and approving the
T� Increment Financing Plan therefor.
Councilmember Bergman stated he still has concerns regarding the area to the west. He
wants the City to be judicious in its use of TIF.
Action was taken on the motion. Ayes - 4- Nays - 1(Grendahl).
ORDINANCE AMENDING FEES CONTAINED 1N CITY CODE
Mr. Grawe gave the second reading of the proposed amendments to the Fee Schedule Appendix of
Title III of the City Code. Fee adjustments are proposed for the cemetery, City fees and materials,
consultant and engineering services, building inspections and permits, licenses and permits,
subdivision and development fees, and utility fees. The fees would be effective January 1, 2013.
He noted the proposed rates more accurately reflect the City's costs. Some changes were also
recommended as a result of increased fees being charged the City and some were increased
according to the Consumer Price Index and En ing eerin� News-Record indices. No comments
from the public have been received regarding the proposed changes.
MOTION: of Hooppaw, seconded by Goodwin, passing Ordinance No. 937 amending the Fee
Schedule Appendix of Title III, Chapter 35, of the City Code by adjusting certain
fees and charges effective January 1, 2013. Ayes - 5- Nays - 0.
COMMUNICATIONS
Mayor Hamann-Roland welcomed Barry Bernstein who was hired as the Parks and Recreation
Director.
CITY OF APPLE VALLEY
Dakota County, Minnesota
November 20, 2012
Page 8
CALENDAR OF UPCOMING EVENTS
MOTION: of Grendahl, seconded by Hooppaw, approving the calendar of upcoming events as
included in the City Clerk's memo dated November 20, 2012, and noting that each
event listed is hereby deemed a Special Meeting of the City Council. Ayes - 5-
Nays - 0.
Mayor Hamann-Roland wished everyone a happy Thanksgiving.
CLAIMS AND BILLS
MOTION: of Grendahl, seconded by Hooppaw, to pay the claims and bills, check register
dated November 15, 2012, in the amount of $617,206.38. Ayes - 5- Nays - 0.
CLOSE MEETING. LABOR NEGOTIATIONS
Ms. Hills reviewed exceptions to the open meeting law and advised the Council that it could hold a
closed session, under the provisions of M.S. 13D.03, to discuss labor negotiations.
MOTION: of Goodwin, seconded by Bergman, to enter into a closed meeting and convene in
closed session to discuss LELS and AFSCME union labor negotiations. Ayes - 5-
Nays - 0.
The Council convened in the Regent Conference Room at 8:37 p.m. In attendance were Mayor
Hamann-Roland; Councilmembers Bergman, Goodwin, Grendahl, and Hooppaw; City Administrator
Lawell; City Clerk Gackstetter; Human Resources Manager Haas; Public Works Director Blomstrorn
and Police Chief Rechtzigel. The meeting was tape recorded as required by law. The Council
reconvened in open session at 9:11 p.m.
MOTION: of Hooppaw, seconded Goodwin, to adjourn. Ayes - 5- Nays - 0.
The meeting was adjourned at 9:12 o'clock p.m.
Respectfully Submitted,
OI.C�?i��
Pamela J. Ga stetter, City Clerk
Approved by the Apple Valley City Council on 12-13- I 2