CC Packet 2008 12 01AGENDA
CHANHASSEN CITY COUNCIL
MONDAY, DECEMBER 1, 2008, 5:30 P.M.
FOUNTAIN CONFERENCE ROOM, 7700 MARKET BOULEVARD
EXECUTIVE SESSION:
1. 5:30 p.m. – Discuss Performance Evaluation and 2009 Compensation with City Manager.
2. 6:15 p.m. – Discuss the Future of Historic St. Hubert’s Church.
3. 7:00 p.m. – Truth-in-Taxation Public Hearing.
4. 7:30 p.m. – Discussion of 2009 Budget.
Members of the City Council and some staff members may gather at Houlihan’s Restaurant & Bar, 530 Pond Promenade in Chanhassen immediately
after the meeting for a purely social event. All members of the public are welcome.
1
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen MN 55317
Administration
Phone 952 227 1100
Fax 952 227 1110
Building Inspections
Phone 952 227 1180
Fax 952 227 1190
Engineering
Phone 952 227 1160
Fax 952 227 1170
Finance
Phone 952 227 1140
Fax 952 227 1110
Park Recreation
Phone 952 227 1120
Fax 952 227 1110
Recreation Center
2310 Coulter Boulevard
Phone 952 227 1400
Fax 952 227 1404
Planning
Natural Resources
Phone 952 227 1130
Fax 952 227 1110
Public Works
1591 Park Road
Phone 952 227 1300
Fax 952 227 1310
Senior Center
Phone 952 227 1125
Fax 952 227 1110
Web Site
www ci chanhassen mn us
L
MEMORANDUM
TO Mayor City Council
FROM Todd Gerhardt City Manager
6WDATENovember202008
SUBJ Discuss the Future of Historic St Hubert s Church
BACKGROUND
A lease exists between St Hubert s Church and the City of Chanhassen for the
rental of historic St Hubert s Church next to the old Village Hall The lease
will expire on December 31 2008 at which time St Hubert s will become
responsible for the car and maintenance of the building
HISTORY
During the 1976 78 time frame St Hubert s undertook a process of determining
its needs for the historic building that was vacated when they built a new church
across the street The congregation was split as to whether the building should
remain as a community building or be demolished or moved The issue was
presented to the city and the council incorporated the property into the
downtown redevelopment plan which at the time included a central city park
that would encompass the Pauly s Bar Bottle Shop old Village Hall the vacated
Great Plains Boulevard and the church area
Following this decision the city and St Hubert s Church entered into a long
term lease 20 years which was to be renewed renegotiated at five year
intervals Various community and private groups used the building during
1979 80 Monies received were minor The church had not been maintained for
several years and the city completed some major improvements including a new
furnace rafter repairs re Ieading stained glass windows a new roof etc From
1980 89 the city entered into a sub lease agreement with Family of Christ
Lutheran Church In mid 1989 after Family of Christ moved into their new
facility the city entered into a sub lease agreement with the Colonial Church at
Chanhassen is a Community for Life Providing for Today and Planning for Tomorrow2
Mayor City Council
November 21 2008
Page 2
Heritage Square They moved out in 2002 and the building has been vacant ever
since In 1981 the church was placed on the National Historic Register
SUMMATION
Both St Hubert s Church and the Chanhassen Historical Society CHS have
asked to meet with the City Council to discuss the city s interest in collaborating
on the preservation of the church Staff has discussed the limited role that the
city may play in this collaboration such as providing 13 of the costs of the
utilities but no contribution towards maintenance or capital costs Additionally
the city would require fee title ownership of the church This would allow the
Historical Society to apply for grants and also justify our contribution towards
the utility costs
My expectation for Monday s meeting is for both St Hubert s Church and the
Chanhassen Historical Society to explain their interest vision for the building
and to determine the city s interest in collaborating on the building s
preservation Attached please find St Hubert s and the Historical Society s
interests in historic St Hubert s
ATTACHMENT
1 Interests of St Hubert s and Chanhassen Historical Society
2 Utility Costs for Historic St Hubert s Church
3 Information from Daniel J Hoisington Preservation Consultant
g admin tgst hubert work session 12 1 08 doc
3
Historic St Hubert s Work Session
Facts
Current lease with the city expires on December 31 2008
Once the lease expires no activities may be scheduled in the building due to insurance concerns
No additional rentals or leases can be entered into due to insurance concerns
At time the lease expires payment of utilities will be the responsibility of St Hubert s
Currently St Hubert s doesn t have the funds to update the church in order to meet the insurance
requirements for use of the building
If St Hubert s was not currently in discussions with City and Historical Society representatives it
is likely that after the current winter the building would have its utilities shut down to a minimum
and locked up for an indefinite period of time
It would likely be at least 5 years before St Hubert s would be in a position to update the building
for re use The current debt load would need to be under lM to undertake such a project
Interests of St Hubert
St Hubert has an interest in seeing the building preserved including restoring it
St Hubert is willing to implement a fundraising process for obtaining and securing funds to help
offset the costs of maintaining and restoring the building
St Hubert is willing to pay a portion 1 3 of the on going costs to keep the building running
This would include costs for utilities and maintenance
St Hubert would require that ownership transfer by October 1 2009 If this doesn t occur we
would shut down the building to reduce utility costs for the winter
At such time that either the building is severely damaged or destroyed St Hubert s would like to
see the ownership of the land transfer back to St Hubert s
Any partnership or party agreement that St Hubert s would be a party to would also need to
contain language on what would happen to the property if the partnership disbands or if the
agreement was no longer in force
Interests of Chanhassen Historical Society CHS
CHS considers this structure the most historically significant in Chanhassen
CHS has an interest in seeing the building preserved including restoring it
CHS is interested in raising funds both for preservation and to earmark a portion of funds to help
offset utility and or maintenance costs
CHS would like to help minimize utility costs by first concentrating on efficiencies through grants
to replace the boiler adding window and roof insulation etc
CHS would like to better integrate the building into the greater Chanhassen community through
public events such as but not limited to
o Celebrations similar to the Chanhassen Celebration of History and the Arts held in May
and the upcoming Historical Christmas Celebration scheduled for November 30th
o A Chanhassen Cemetery Walk possibly including a Halloween event
o An Open House in conjunction with Chanhassen s 4th of July events
o Weddings and other private events
CHS would like to build collaborations with existing Chanhassen civic groups
CHS is interested in utilizing part of the space or exhibit space archiving etc
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5
HANHASSEN H STOR eAL OelETY
Meeting 8 00 a m Friday October 10th 2008
Representatives Present From
St Hubert s Church SHC
City of Chanhassen CC
Chanhassen Historical Society CHS
Backaround
The three parties last met August 13th to discuss the future of Historic St Hubert s Church At
that time it was agreed in principle that we should explore in some manner a collaborative
effort to preserve the church it being the centerpiece of historic Chanhassen
Ouline of report attached
The Chanhassen Historical Society commissioned Dan Hoisington a respected local historical
consultant to provide an outline from which we might form a community vision for the Historic St
Hubert s Church to include its preservation restoration and potential re use Mr Hoisington
posited three questions and recommended two steps that we should consider
First should the church be preserved
Second who should own the church SHC CC CHS or private developer
Finally what can be done with the building
Main Hall sanctuary should be maintained as open space to be used for weddings
public functions concerts lectures and conferences
Other inside space could house Historical Society office library archives and storage a
permanent historical exhibit leased office space
Outside space could host special outdoor activities during warmer months similar to the
Chanhassen Celebration or History and the Arts held in May of this year
Step one Draft a master plan build a vision Consider commissioning a re use study Draw
from experiences of other historic buildings such as the Hopkins Depot
Step two Commission an architectural structural assessment to evaluate immediate and long
term needs including a maintenance schedule and long term restoration requirements
Collaborative Partners
Beyond SHC CC and CHS we should involve as much of our community as possible as we
strive to reintegrate the church with the larger Chanhassen community Some possibilities
many other local churches the American Legion the Lions and Rotary Clubs Knights of
Columbus the Chanhassen Chamber of Commerce the Chanhassen Park and Recreation
Department the Fire Department local businesses
Next Steps
I propose these initial steps
begin exploring possible collaborative partners
prepare a presentation for the Chanhassen City Council to illustrate our vision and to
secure an agreement in principle for the preservation of this critical property
Discussion
Next Meetina
Itf eVlt 3
6
Daniel J Hoisington
Preser1Jdtion Consultant
POST OFFICE BOX 13790
ROSEVILLE MN 55113
PHONE 651 415 1034
preservation@edinboroughcom
9 October 2008
Dear Mr Atkins and Committee Members
I enjoyed our meeting last week You have taken the right steps so far in
establishing your organization I offer a few recommendations based on my
experience as a historical society director as a preservation consultant and as the
author of the history of Chanhassen
First should Old St Huberts Church bepreserved
This is very simple This is not just another old building There is not a more
historically significant building in Chanhassen Although the township was
settled years earlier the formation of St Hubert s Parish in 1887 laid the basis for
the village Indeed the original plat showed streets named after saints The social
life of the village where during the 1920s and 30s everyone was a Catholic
except the mayor revolved around the church and school
This building is especially important to Chanhassen because the development
of the community after World War II led to the demise of most local historic
landmarks
Second who should own the building
Based on my discussions the Archdiocese wishes to e building but retain
ownership of the land and the surrounding cemetery This leaves three options
1 the city 2 the historical society or anotherJIolprofit ofanization or 3 a
private developer C i
Because the land will still be owned by the Archdiocese with limited parking
nearby there are significant hurdles to private development My recommendation
is that the city acquire and manage the property This arrangement is not unusual
in suburban communities in Hennepin County
Management can then devolve on a city appointed commission with
representatives from the Chanhassen Historical Society and possibly other
community groups In fact I suggest that the city consider the creation of a
Chanhassen Heritage Preservation Commission similar to those found in Eden
Prairie llinnetonka Excelsior and Chaska This would open the door for further
funding opportunities
7hird what can be done with the building
TIle building will be best served by preserving the main hall sanctuary as
a meeting space Indeed this can become a community asset used for public
functions concerts and lectures It is a perfect space for weddings and with some
work a site for conferences Some space should be allocated to the historical society
for a smalllibrarylarchives office space and storage My recommendation would
7
be to develop a top quality permanent exhibit about Chanhassen s history complete with
an introductory movie TI1is could draw tourists and serve as an important educational
component for local schools
The remaining space can be allocated for either nonprofit organizations or even leased
to small businesses I suggest that you contact some other nonprofits particularly arts
groups
Ifthis type of use agreement goes forward however the historical society will have
to accept the responsibility to maintain a regular hours of operation b consistent
special programming to encourage community use of the building c special outdoor
activities during the warmer months Mter all it should be a true community building that
enhances the quality oflife of all local residents The city and the historical society would
need to negotiate management responsibilities For example who will handle scheduling
promotion onsite supervision and cleanup
This is the vision but how can it be brought into reality I recommend the following
steps
STEP ONE Draft a master plan Gather information hard statistics from other
similar buildings in surrounding towns the Hopkins Depot for example Begin
discussions with other nonprofit organizations Ihis reuse study might run 5 000 to
10 000 Minnesota Historical Society grants can provide matching funds TI1e next
round of grants has a January pre application deadline
STEP TWO Complete a full architecturaVstructural assessment that includes an
evaluation of immediate needs plus a cyclical maintenance schedul This assessment
might run 10 000 to 20 000 with Minnesota Historical Society grants available for
the study and then later restoration work
This is a major undertaking but the alternative is the Ibss of rvitanj k o Chanhassen s
past My experience is that once you have taken these steps building the vision it
opens doors for additional funds
Ifcan help let me know
Sincerely
f
Daniel J Hoisington
8
Daniel Hoisington is fully qualified as a historian under the Secretary of the Intrior s
Professional Standards He received a Bachelor of Arts in history from Greenville Co e
Greenville Illinois where he graduated with honors He earned a Master of Arts in
American history from the University of Virginia and completed all course work for the
Ph D degree For twelve years he worked as a museum director heading institutions in
J1assachusetts Minnesota Alabama and Virginia For three years he served as president
of the Bay State Historical League
In 1992 ltIr Hoisington founded a firm to provide consulting services to local historical
organizations and preservation commissions He is the author oftwelve books and numerous
journal articles In 1998 the Minnesota Society of Architectural Historians honored his
book Heritage Preserving Eden Prairies Past with its David Gebhard Award His most
recent book A German Town A History 0 New Ulm Minnesota received a Certificate of
Commendation from the American Association for State and Local History
J1r Hoisington has served as a consultant on numerous historic preservation projects
including
Recent projects include
Historic properties surveys of residential areas of Lake City under contract with the
Lake City Heritage Preservation mmission
Historic properties survey of the Old frontenac Historic District under contract
with the Minnesota Historical SoGie 1
istoric context repo t and histctrt pe treS Jr ey for Kenyon under contract
wIth the Kenyon Hentage Preservati m mIsslOn
Historic properties survey local historic desJgnations and design guidelines in
Henderson Minnesota under contract with the Henderson Heritage Preservation
Commission
Local historic designations of two historic districts and twelve houses for Winona
Heritage Preservation Commission as well as design guidelines for downtown
historic districts
Historic context report historic properties surveys local historic designations and
nomination of National Register Commercial Center Historic District in New Ulm
Minnesota under contract with the New Ulm Heritage Preservation Commission
National Historic Landmark nomination for the United States Air Force Academy
Cadet Area under contract with the Organization of American Historians
Historic American Buildings Survey recordation of the Strategic Air Command
Headquarters Offutt Air Force Base under contract with the National Park Service
National Register of Historic Places nominations for the Dr George Christie
House Long Prairie the Hewitt Public School Hewitt St Joseph s Church
Meadowlands Crookston Diocese Cathedral Crookston and Alexander
Baker E W Backus Schools International Falls under contract with the
Minnesota Historical Society
National Register of Historic Places nomination for the Kasson Public School
under contract with the Kasson Alliance for REstoration
Project manager and historian Historic Structures Report Turner Hall New Ulm
Minnesota
9
City of Chanhassen2008TruthinTaxationHearingDecember1 20081
10
Required Elements forTruthinTaxationPresenttheproposed2009budgetPresenttheproposed2009taxlevyDiscussmajorchangestothebudgetandlevyHoldthepublichearingforcitizeninputandcommentsDecember1AdoptlevyandbudgetonDecember8 2
11
Budget ProcessPreliminarybudgetssubmitted by DepartmentDirectorsinJulyBudgetreviewedbyFinanceDirectorandCityManagerinAugustPreliminaryTaxLevyAdoptedforTruthinTaxationpurposesonSeptember15DetailbudgetmeetingsheldinOctoberandNovemberTruthinTaxationhearingheldonDecember1BudgetadoptiononDecember8 3
12
Expenditures
2008 2009 ChangeBudgetBudgetfrom20081958200208720066GeneralGovernment2939600310800057LawEnforcement2069600224474985PublicWorks42210045060067CommunityDevelopment1778800187400054ParkRecreation15000015000000TransfersforRoads9318300991454964Total4
13
Revenues
2008 2009 ChangeBudgetBudgetfrom20086563900701439869PropertyTax143780014511009LicensesPermits225000265000177IntergovernmentalRev62110057400076ChargesforServices1575001585006FinesPenalties313000407000300OtherRevenue9318300991454964TotalRevenue5
14
General Fund Expenditure History 9 914 54993183009062400643052 10000000830792086151005637900000078607857860785080000007000000600000050000004000000300000020000001000000020032004200520062007200820096
15
What factors changethebudgetfor2008TotalGeneralFundexpendituresincrease64Wageandhealthcarecostincreases accountfor30670052oftheincreasePolicecontractaccountsfor11940020oftheincreaseIncreasedfuelandutilitycostsaccountsfor12600021oftheincrease 7
16
Tax Capacity Levy Changes
Tax Capacity Levies20072008 ChgGeneralFund6833900722894958CapitalReplacement82400082400000MSASealcoating26787526787500GeneralObligationDebt769873582900243LocalStreetImprovements10000001000EDADebt122703122603008TOTALTAX8918351902632712CAPACITYLEVIES8
17
Market Value Levy Changes
Market Value Levies20072008 ChgParkReferendum425914612387438LibraryReferendum49070049130001TOTALMARKET9166141103687204VALUELEVIES9
18
Debt Service
The debt levy for 2009 remained the same as theprioryearItisourintenttousereservestokeepthedebtlevyflatuntil2010atwhichpointexcesslevybecomesavailabletohelpfundourstreetsrevolvingassessmentfund
10
19
Net Tax LevyEffectsGeneralFundlevyincreaseof58Totaltaxlevyincreaseof295049or3 00
11
20
Effect on HomeownersBelowaresomeexamplesofhowthe2009levywillimpactsomepropertyowners20082009Percent 2008 City 2009 CityPercentValueValueChangePropertyTaxPropertyTaxChangeParcel125300025030011628326184916235490035060012925749089718354740054580031474941515472754654000680200401819761892304059636009646001282153280427612
21
Recommendation
Hold continuation hearing if needed onMondayDecember82008AdoptthetaxlevyandbudgetasshownonMondayDecember82008
13
22
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen MN 55317
Administration
Phone 952 227 1100
Fax 952 227 1110
Building Inspections
Phone 952 227 1180
Fax 952 227 1190
Engineering
Phone 952 227 1160
Fax 952 227 1170
Finance
Phone 952 227 1140
Fax 952 227 1110
Park Recreation
Phone 952 227 1120
Fax 952 227 1110
Recreation Center
2310 Coulter Boulevard
Phone 952 227 1400
Fax 952 227 1404
Planning
Natural Resources
Phone 952 227 1130
Fax 952 227 1110
Public Works
1591 Park Road
Phone 952 227 1300
Fax 952 227 1310
Senior Center
Phone 952 227 1125
Fax 952 227 1110
Web Site
www ci chanhassen mn us
1
MEMORANDUM
TO Mayor and City Council
r T
Greg Sticha Finance Director IJlFROM
DATE December 1 2008
SUBJ Budget and Levy Discussion
Staff has now completed all budget presentations for council consideration Prior
to setting the final levy the council should review the additional information
provided in response to questions or new information that has been received since
the preliminary levy was set back in September
Healthcare and Wages Healthcare costs came in at a 9 increase as opposed to
the anticipated 25 increase which was in the preliminary levy This will save
the general fund 36 000 Staff has set wage increases at 3 5 as instead of
4 5 which saves the general fund 17 000
Fuel Costs We have also revised the line item for fuel costs due to the reduction
in fuel costs we are seeing which results in a 45 000 savings These three
reductions total 98 000
Elections In 2006 the city spent 41 000 on the election and we are estimating
the final cost of the 2008 election to be around 48 000
Utility Costs The Council requested that the utility budgets of city hall and the
library be reviewed In 2008 the library budget for utilities was 67 000 In
2007 we spent 72 000 and we are on track to spend 75 000 in 2008 The
preliminary budget for utilities at the library was 90 000 Based on the
moderation of fuel and gas prices staff feels comfortable lowering this budget
line item by 10 000 to 80 000
In 2008 city hall utility costs are budgeted at 54 600 We spent 52 000 in 2007
and are on track to spend about 56 000 in 2008 Therefore staff feels
comfortable lowering this line item for 2009 to 60 000 down 8 300 from the
original preliminary budget of 68 3 00
Delaying Projects Staff was also asked to review programs and projects that
could either be delayed or re allocated for other higher importance projects and or
to prepare for the shortfall of building permit and other revenues in 2009
Chanhassen is a Community for life Providing for Today and Planning for Tomorrow23
Budget Wrap Up
December 1 2008
Page 2
Staff has prepared a spreadsheet with the list of resources available and the needs
for various projects in the city All of the items listed could be used to either
lower the levy for our street reconstruction costs in the revolving assessment
fund for future utility costs on the new public works building to set up a new
park maintenance reserve fund for maintaining our park and trail systems or for a
contingency in case of revenue shortfalls in the general fund in 2009
RECOMMENDA TION
After reviewing all the needs listed staff recommends the following
The first recommendation is to use 100 000 of the resources cuts available to
maintain the levy at 10 074 565 This results in a levy increase of 2 4 but no
property tax increase for the average home in Chanhassen and in most cases a
property tax decrease
The second recommendation is to use the remaining 16 300 from the previously
noted cuts and the following
Elimination of the Maple Leaf publication
Delaying the Citizen Survey
Delay hiring the police patrol position to 2010
Remaining portion of previously noted cuts
Total
10 000
16 000
20 000
16 300
62 300
This money would be set aside for future increased utility costs associated with
the new public works facility
The last recommendation is to use the 217 000 for sealcoating in 2009 only as a
contingency in case of revenue shortfalls in the general fund
Staff looks forward to reviewing the recommendations listed above as well as any
other ideas City Council has for any of the items listed above or on the attached
spreadsheet
A TT ACHMENTS
1 Wrap up discussion spreadsheet
24
City of Chanhassen
2009 Wrap Up Discussion
Reduction of
Expenses Needed Levy
Levy Goals
Reduction to Get to Preliminary Levy
Reduction to get to Zero Increase on Avg Property Tax Bill
Resulting Levy
Increase
44 551
100 000
Resources Cuts
Adjust Wages from 4 5 to 3 5
Healthcare Costs adjusted from 25 increase to 9 increase
Adjust Fuel Costs
Adjust Utility Costs at Library
Adjust Utility Costs at City Hall
Amount
17 000
36 000
45 000
10 000
8 300
116 300
Resources Cuts with service reductions
Eliminate Maple Leaf
Conduct Citizen Survey every four years rather than every two
Don t do Sealcoating in 2009
1 4 Patrol position in 2009 Delayed until 2010
Catastrophic Reserve Fund
10 000
16 000
217 000
20 000
1 300 000
Needs
Lower Levy
Revolving Assessment Construction Fund
Develop a Park Maintenance Fund for future maintenance and improvements to existing parks
Utility Cost increase for new Public Works Building
Contigency Plan for revenue shortfall in 2009
10 130 014
10 074 565
3 0
2 4
25