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HomeMy WebLinkAbout20150713 CCM WSROSEMOUNT CITY COUNCIL WORK SESSION PROCEEDINGS JULY 13, 2015 CALL TO ORDER Pursuant to due call and notice thereof a work session of the Rosemount City Council was held on Monday, July 13, 2015, beginning at 6:32 p.m. in the Conference Room at City Hall, 2875 145th Street West, Rosemount. Mayor Droste called the meeting to order with council members Weisensel, DeBettignies, Demuth, and Nelson in attendance. Staff members in attendance included City Administrator Johnson, Director of Public Works Wrase, Finance Director May, Parks & Recreation Director Schultz and City Clerk Hadler. Community members Dan Corley (RAAA), Craig Nelson (RAHA) and Paul Theisen (RAAA) were also in attendance. City Administrator Johnson asked that “Updates” be added to the agenda. DISCUSSION 2.A. Recreational Facilities Discussion City Administrator Johnson gave an overview of how the city currently stands financially with regard to capital funds. The building CIP receives $1,050,000 each year from SKB revenues. After necessary maintenance projects, the fund would have approximately $16,000 after 2015. He provided a list of current possible future projects. Mr. Johnson provided a list of anticipated park development fund projections. The fees for this are collected at the time the development is platted. The remaining funds after the planned parks are built are approximated at $34,000. Council member Weisensel inquired about the Tax Levy and Building Loan. Finance Director May explained it was part of the financing structure created when the old fire station was retrofitted to become the public works maintenance garage. Mr. Johnson gave examples of how the City might assist the various organizations and how the monies available might be spent if the Council wishes to proceed. Mayor Droste spoke about past efforts attempting to bring the YMCA to the city. There was a study performed in 2010 that showed strong support for a field house. The most recent city survey also showed strong support for a running track and a pool. He stated it seems to make sense to consider this option. He stated that there was not support for the ice arena, based on the 2014 survey. It was voted on twice and was not supported. Council member Nelson stated concerns regarding not knowing the cost of maintenance between one facility and another and wondered what the value of the asset is. Staff responded that the city does have maintenance costs information on most facilities. Mayor Droste stated he heard complaints for 10 years about not having a senior center. He stated the surveys don't show that ice arenas are a significant driver in new home purchases. Council member DeBettignies explained the history of the Steeple Center, explaining the purchase was for the Robert Street Library and that the Steeple Center was kept because the residents preferred that choice over destroying it. He stated that it has become a benefit to the community. Mayor Droste discussed Inver Grove Heights rink. Their hockey association subsidized the rink with $100,000 in addition to ice fees for some time. The association used to use gambling money to pay this. 6.c. ROSEMOUNT CITY COUNCIL WORK SESSION PROCEEDINGS JULY 13, 2015 Council member Demuth inquired about asking Mr. Corley to add a sheet of ice to his proposed project. Mr. Corley responded that through over two years of research, they have come to the current design as the best option and he doesn't want to complicate it with ice. They would like to land bank 5 acres for future expansion. Council member DeBettignies stated he had spoken with Community of Hope Church about space they have available and wondered if that location is large enough for a 2nd sheet of ice. Mayor Droste responded that the church had spoken with groups in the past and it hadn’t moved forward. Mayor Droste stated the field house makes the most sense at this point to pursue. Council member Weisensel stated we need more specifics on the City's role in that plan, but this is the plan that is the furthest along. Mayor Droste stated it seemingly had the least tax impact, as well. Council member DeBettignies inquired of Mr. Corley whether any of his investors had a sunset clause. Mr. Corley stated that none did. He discussed "Founders Memberships" as options for funding the project. Council member Demuth inquired if the property by Dakota County Technical College had electricity supplied by Xcel or Dakota Electric. She stated Xcel has a lot of energy credits they could take advantage of. Council member Weisensel would like information on how the land purchase would be structured if the City as involved. Mr. Corley said that all options are on the table, and any opportunities would be taken to the investors. Weisensel stated that Council needs to give staff direction which information to track down. Council member Demuth noted that she would like the property to create tax revenue. Mr. Corley stated there is a need for adaptive athletics in the community, and that this facility would be able to accommodate children with special needs. Council member DeBettignies inquired about the facility in Eagan that did not succeed. Corley stated that that facility was dependent on hourly rents, while the current proposal is more membership based. Council member Weisensel inquired about the timeframe. Corley stated 2017. Finance Director May stated that Council would need to give staff direction on the financial support that the City discussed. City Administrator Johnson stated most of the discussions right now are concentrated on the upfront costs; land purchase and improvements, rather than the guaranteed income option. Council member DeBettignies asked if they needed both. Mr. Corley stated they would like to start there and see if both are possible. Council member Weisensel asked if the Council needed to take a formal action. Mr. May stated it didn't, but staff needs to know if they should explore the option. Mayor Droste said the issue needs to be reviewed by legal staff. Mayor Droste stated he does not support taking a referendum during the school election. Council member DeBettignies asked what the tax impact would be on a median household. Mr. Johnson stated each $110,000 of taxes is equal to about a 1% of the City share of taxes. Council member Nelson stated he would support putting the other two items, soccer and hockey, on a referendum. Mayor Droste asked Mr. Johnson if the soccer project might work with the Corley project without a referendum given the capital budget. Mr. Johnson said it would be tight. ROSEMOUNT CITY COUNCIL WORK SESSION PROCEEDINGS JULY 13, 2015 Council member Nelson asked what the tax impact would be with a $6.5 million referendum. Mayor Droste showed figures that show tax rate compared to other cities, and Rosemount is still high in comparison to some. Council member Weisensel stated he would like to see Council direct staff to explore the turf field further and how the $1 million contribution from Dakota REV would be implemented. He considers the dome to be an upgrade, but feels the turf might be similar to a grass field, which is already planned for. Parks and Recreation Director Schultz stated he has concerns about allowing Dakota REV to monopolize the turf field in exchange for the contribution. Currently, fields are only charged when there is a tournament. Council member Nelson stated he agrees with Mr. Schultz. He feels the City should explore this opportunity, because Flint Hills donated the land for this purpose. Mr. Schultz stated the turf field would benefit the parks system of the City. Mayor stated he would like to explore costs of finishing the complex with or without the Dakota REV contribution. Mayor Droste discussed the relationship between the cities and hockey associations in Mendota Heights and West St. Paul. Council member Demuth asked if we have the costs of maintaining the fields. Schultz stated staff can develop numbers to that issue. Council member Weisensel asked if the hockey rink could be explored as a private option and put two sheets of ice together. Mayor asked about upgrades to the current facility or selling it to the high school. Council member Weisensel stated frustrations that the school district has not been involved enough in these discussions. Council member Nelson stated that maybe in other cities the school districts might help out more with gym space, and the cities' contribution to sports has been hockey facilities. Parks and Recreation Director Schultz stated that if there was a second sheet of ice, we would actually sell more than what we currently sell on the first sheet. Council member Demuth asked if practices might be longer. Council member Nelson stated that we should let the voters decide. Mayor Droste stated the survey doesn't show support, so we should not pursue it at this time. Council member DeBettignies stated concerns about a second sheet of ice impacting the Pond rentals. Craig Nelson, of RAHA, stated that teams are looking for more individual ice time, that RAHA is struggling to get time at the Pond and they are paying a premium to get the ice time that they do get. Mr. Nelson stated that they would still like to use the Pond for younger kids. He also stated that the Farmington hockey association has stated that they are interested in committing to a certain number of hours of ice time. Council member Demuth inquired about the possibility of a joint ownership of some kind. Craig Nelson stated that their board is currently exploring that as an option. Council member Nelson inquired about why the city is subsidizing other sports and doesn't want to do the same with hockey. Council member Weisensel stated that hockey is more specialized and a much smaller percentage of the population. Council member Weisensel asked about other things that might be affected by putting a sheet of ice at the community center. Mr. Schultz discussed where the addition might be located. Mayor Droste stated that adding it at the community center might be short-sighted, as in 20 - 30 years from now, there may be a need for a third sheet. ROSEMOUNT CITY COUNCIL WORK SESSION PROCEEDINGS JULY 13, 2015 Council member Nelson asked about park land adjacent to the community center. Schultz stated that was funded with federal dollars and has tight restrictions on future use. City Administrator Johnson stated the need to look at type of arena, location, cost, etc. Council member Weisensel stated he would like to see a private proposal. Council member DeBettignies asked about an hourly rate based on the projected use and asked if RAHA would be able to commit. Mr. Schultz showed operating expenditures of $296,000 and revenues of $311,000. In addition, the debt service would cost approximately $398,000 annually. The Mayor stated that he has a problem subsidizing the activities of residents of other cities, as only 60% of RAHA participants are residents of Rosemount. Council member DeBettignies asked if we would be building this prior to when other cities built theirs based on tax base. Mayor Droste gave statistics on other cities' tax base. Council member Demuth asked Craig Nelson about charging non-residents a higher fee, or would they get angry and start another league. Mr. Nelson stated that they are mandated to participate based on high school boundaries by the leagues they participate in. Demuth asked if RAHA has approached Ames Construction to donate funds. Mr. Nelson stated they have not. Council member Nelson asked if there was room at the UMore ball fields. Parks and Recreation Director Schultz responded there is some unused recreational space; however, there are plans for a future fields in that location. Mayor Droste suggested doing a survey instead of a referendum. Council member Nelson speculated the survey might cost more based on past survey costs as comparted to the costs of a referendum. Mr. Johnson stated the cost of the survey would be partially based on the number of questions. Council member DeBettignies stated that the referendum would probably fail if it was voted on immediately without educating the public. Mayor Droste stated that these types of issues need to be systematically pursued over years in order to be accomplished. Shaun Nelson stated that he would like to like to put it to a vote to see if it could go to a referendum. Mayor Droste and Council member DeBettignies disagreed. Council members discussed the difficulty in explaining the additional cost to taxpayers, even if a referendum does pass. Council member Demuth asked about the difference between potentially subsidizing the field house and subsidizing ice arena. Mayor stated there's not an initial capital outlay. Council member Weisensel added that they will be paying taxes. Council member Nelson stated that he would like to see the school district involved and to come closer to a decision on potential locations. Mayor Droste asked Craig Nelson directly what he would do; go directly to a referendum or create a story and take it to the voters later. Mr. Nelson replied that there is an urgent need. In addition, the board will change over time and the drive and energy might be lost. Mr. Schultz noted Apple Valley's idea of surveying their residents and asking "how much are you willing to pay?" They were successful in passing their referendum. Mayor added that it was just barely passed. Mayor strategized ideas on how to move forward. ROSEMOUNT CITY COUNCIL WORK SESSION PROCEEDINGS JULY 13, 2015 Council member Demuth inquired about what future expansion would be at Dakota Fieldhouse. Mr. Corley stated that it would be an indoor park and outdoor pool. Council member Weisensel stated the recreational facility projects are at different stages, and he's having an issue with the hockey. Mr. Schultz stated staff would work with RAHA to get more solid numbers. He stated it might be good to think in terms of a potential sports complex with shared infrastructure. Council member DeBettignies suggested the southwest corner of Akron and County Road 42 at UMore and that the owners of the Pond should be involved in the conversation. Council indicated staff may work to obtain an initial site study to determine if the community center site would be suitable for a second ice rink. UPDATES Council member Weisensel asked about items we should be discussing at work sessions; such as Open Data, Capital Buildings, budget visibility / transparency, public engagement, etc. to discuss policy issues. Council members discussed various potentially topics for discussion. Mayor suggested doing a survey at Leprechaun Days. Council member DeBettignies stated he had a conversation with potential hotel investors that they need the updated hotel study. Mr. Johnson stated that Community Development was working on the issue. Mayor Droste discussed dog parks and the other cities that are building them. They are social and safe environments with strong support from residents. Mayor Droste stated that he heard from a property owner that would like to build a $4,000,000 rental housing development. The property was previously rezoned commercial at the request of the land owner. Staff feels that it should stay commercial at this time but could be reviewed in a couple of years prior to the Comprehensive Plan Update. Mayor Droste made note of various events hosted by businesses in the near future. ADJOURNMENT There being no further business to come before the City Council and upon a motion by Droste, second by DeBettignies, the meeting was unanimously adjourned at 10:14 p.m. Respectfully Submitted, Clarissa Hadler, City Clerk