03-09-2010 Council Work Session Minutes

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Orono City Council Committee of the Whole March 9, 2010, 6:30 p.m. Orono City Council Chambers • If the system were abandoned, the pipes in the loop field would need to be filled, similar to wells. • The soil in this area is conducive to the geo-thermal system and generates high BTUs. 48 degrees is the common ground temperature. • Council directed staff to move forward with a feasibility study. 2. CommonBond Discussion • Gaffron reviewed the documents included in the packet outlining the CommonBond proposal. • The City Attorney is reviewing a draft purchase agreement. Council will need to determine how they want to make the city property available to CommonBond. Options include sale at fair market price, below market price, at no cost (donation), long-term lease similar to Orono Woods Senior housing, or some other method. White stated the city needs to get an appraisal and should consider a redevelopment agreement instead of a business subsidy. • Amanda Novak, representative from CommonBond, expressed her appreciation for the letters of support provided by the city. Their next major application for tax credits is due June 17`h. They need some sort of site control as part of the application. It is a competitive application based on point criteria. Points could be acquired by items such as a land donation or reduction of fees. o If CommonBond is required to pay the full $600,000 in development fees, they would need to reduce the number of affordable units. • McMillan asked what percentage of occupants would be from Orono. Novak estimated 65-70%would be people who would move from outside Orono from communities such as Plymouth, Long Lake, Maple Plain, and Wayzata. • Murphy questioned how the public would become informed about the project. Gaffron responded that the Comp Plan public hearing will provide an opportunity for the public to discuss properties that are proposed to be reguided. Staff has committed to send notice to individual property owners whose property is affected, but could consider a larger area for notification. Reguiding doesn't guarantee this project would be approved and developed. • Rezoning follows Comp Plan approval by Met Council. The rezoning process involves a complete review process and notification of neighbors within a specific distance. • Gaffron noted there would be very few homes that would be affected by the CommonBond project. • McMillan expressed concern about the timing of the project. People are concerned about tax increases. They want to be able to stay in Orono and helping others to move into Orono may have a negative perception. People have very little patience for government and the city may get a backlash from the larger community in addition to the neighbors. • White stated they will need to provide information and justification to the public and show financial impacts. • Novak suggested they could distribute flyers to the neighborhood presenting the project concept. � Council agreed that CommonBond should submit an application that would follow the normal review process, including Planning Commission and Council meetings. • Novak stated an application could be submitted for the April Planning Commission meeting with Council review in May and asked if the city would want a purchase agreement before the rezoning occurs. White stated they could be worked on concurrently. • McMillan commented that the public will be asking if the city has been doing financial due diligence. CommonBond can provide an analysis. • The Planning Commission reviews parking, etc. but not necessarily bigger issues. • Council discussed experience of the Planning Commissioners, especially in relation to larger development applications, and how Council could be involved. • Curtis suggested that Novak attend the Comp Plan public hearing to answer questions about the CommonBond proposal for the property that is being reguided by the fire station. Page 2 of 5