CC Minutes 6-13-05
05-0\
CHANHASSEN CITY COUNCIL
WORK SESSION
JUNE 13, 2005
Mayor Furlong called the work session to order at 5:35 p.m.
COUNCIL MEMBERS PRESENT: Mayor Furlong, Councilman Peterson, Councilman
Labatt, and Councilman Lundquist
COUNCIL MEMBERS ABSENT: Councilwoman Tjornhom
ST AFF PRESENT: Todd Gerhardt, Justin Miller, Kate Aanenson, Paul Oehme, Todd
Hoffman, and Greg Sticha
SAND COMPANY HOUSING DISCUSSION.
Justin Miller reviewed the staff report and gave a power point presentation showing the location
and layout of the project. Sand Companies Inc. is asking the city for their support in providing
TIF for this project. Jamie Thielen, President and Jim Sand with the Sand Companies Inc.
explained why they liked this site for tax credit possibility from the Minnesota Housing Finance
Agency (MHFA) 2005 Housing Tax Credit Program. Sand Companies Inc. is looking for the
level of interest from the City Council on providing TIF for this site and submitting a letter of
intent. Todd Gerhardt asked for clarification on what SCI meant by letter of intent. Jamie
Thielen provided examples from other cities of what's included in similar letters of intent. Justin
Miller asked Mr. Thielen to explain how the tax credits work. Todd Gerhardt asked if the
applicant has explored reducing the size of units to lower the rental cost, and if they will meet the
State's "but for" clause. Mr. Thielen stated he was comfortable that they could meet the "but
for" analysis. Councilman Peterson asked the applicant to explain the rationale in choosing to
build apartments versus townhomes and ownership versus rental, stating his preference for
ownership versus rents. Mr. Thielen explained that Sand Companies Inc. doesrental housing
and own and manage their properties long term. Councilman Peterson asked Mr. Thielen to
explain what feedback they got at the neighborhood meeting. Mayor Furlong asked about their
experience with turnover in similar projects in other cities. Councilman Lundquist asked what
would happen if Sand Companies Inc. did not receive the tax credit. Mr. Thielen explained the
units would be market rate and not affordable at that point. Councilman Labatt asked for
clarification of the point system on the MHFA application and how the City providing TIF will
affect the total points. Todd Gerhardt asked about income restrictions and amenities involved
with the project. Mayor Furlong asked for feedback from council members. Councilman
Lundquist stated he would support the request if the affordable piece was included. Councilman
Labatt stated he would support the request but would like to see more information on the point
system. Councilman Peterson stated concern with being pushed to make a decision without
enough information so could not support the request at this time. Mayor Furlong stated he could
support the request but would like additional information over the next 2 weeks. Councilman
Peterson challenged staff to get architectural interest with the building design. Mayor Furlong
invited council members to direct any questions to Justin Miller. Mr. Thielen stated again he
was looking for the general consensus from the council. Mayor Furlong asked that they continue
City Council Work Session - June 13,2005
to work with Justin Miller and staff over the next 2 weeks and would see the item at their next
meeting.
SOUTHWEST METRO TRANSIT .JOINT POWERS AGREEMENT.
Bonnie Carlson, Administrative Services Director reviewed the proposed changes to the joint
powers agreement. Mayor Furlong felt it was a fair and reasonable formula. Councilman
Peterson explained that Eden Prairie and Chaska have already approved the agreement. The City
Council had consensus for approval of the agreement.
CONSIDER PROPOSALS FROM THE CHANHASSEN ATHLETIC ASSOCIATION
FOR:
A. DONA TE AND INSTALL SCOREBOARDS.
B. AMENDED PROPOSAL FOR ADVERTISING SIGNS ON BALL PARK
FENCES.
Todd Neils, Vice President of the Chanhassen Athletic Association Little League provided
background information on the program and it's projected growth. Todd Hoffman presented
information from staff's perspective. Mayor Furlong asked if Mr. Neils had provided the
additional information requested by staff. Mr. Neils stated the manufacturer did not provide
information on the manual scoreboards being requested. Todd Hoffman stated his concern was
with long term maintenance of the scoreboards but at a cost of $900, the scoreboards can be tom
down if they become unsightly or not functional. Councilman Lundquist expressed concern with
gawdy sign age and what happens if the program fails. Councilman Peterson stated he would
support the scoreboards, but was not in favor of the signage request stating he would prefer to
see the city fund the needed improvements. Mr. Neils stated the revenue generated from the
signs is for capital improvements, i.e. dugouts, scoreboards, lighting, etc. rather than asking the
city for money. Todd Gerhardt asked if the Chanhassen Athletic Association has looked at
charging a fee to participants for maintenance and improvements. Mayor Furlong expressed
concern with the expectations this was setting up for future city councils and the affect on
contributions to the city from the business community. Councilman Labatt explained how the
arena fund program works with the Chaska Hockey Association and how that could work with
the Chanhassen Athletic Association. Mayor Furlong asked that there be more discussion on this
item. Todd Gerhardt stated staff would bring back additional information at a future work
seSSIon.
The work session was recessed at 7:00 p.rn.. It was reconvened at 8:25 p.rn..
PRELIMINARY BUDGET DISCUSSION. INCLUDING 2006 CALENDAR AND
BUDGET FORECASTS.
Greg Sticha reviewed the staff report which outlined the time line for approvals, a snapshot of
the 2005 budget versus actual revenues and expenditures in the city's general fund, debt service
needs and Key Financial Strategies general fund revenue and expense projection worksheet for
2004 through 2010. Staff stated they were looking for feedback from the council regarding the
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