HomeMy WebLinkAbout05-11-2010 Council Work Session Packet Council Work Session
Tuesday, May 11, 2010, 6:30 p.m.
Orono City Council Chambers
AGENDA
1. CommonBond Discussion—Mike Gaffron/Melanie Curtis/Dick Schieffer
2. Comments Regarding Information Updates—Lin Vee
3. Other Issues of Current Interest
Previous Work Session Topics
Apri127, 2010—Minutes Attached
o CommonBond Discussion
o Processing Complex Zoning Applications-Start To Finish
o Comments Regarding Information Updates
o Other Issues of Current Interest
April 13,2010
� o Pre-meeting Local Board of Review
o Police Department Update
o Engineer's Report
- Lift Station 12 Update(Brown Road North/Old Hwy 12)
- Orono Orchard Road Street Reconstruction Project Update
- State Aid Street CIP Discussion
o Other Issues of Current Interest
o Comments Regarding Information Updates
o CommonBond Discussion
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MEMORANDUM 5-11-10 Work Session
To: Mayor and City Council
From: Mike Gaffron, Asst. City dministrator
Date: May 7, 2010
Subject: CommonBond Project
Attachments
A - May 4 Letter from CommonBond re: Land Sale/Lease Options
B - MHFA Form & Request
C - Apri126 Long Lake Letter of Objection
D - 2002 Sewer & Water Agreement
Pursuant to the direction received at your April 27 work session, staff and Soren conferred with
Amanda Novak regarding options for CommonBond's control & use of the parcel behind the fire
station ("the Outlot"). The attached letter from Amanda dated May 4 discusses a 99-year Lease
option and a 30-year Note option. CommonBond would prefer the lease option.
Amanda's letter also addresses the "difficult to develop" status of their MHFA application. This
category ensures that the 30% basis boost is applied for this 9% tax credit project. Amanda has
also provided the city with an MHFA "Acknowledgement of Receptivity to an LCA Funding
Award" which requires the Mayor's signature.
Because of Long Lake's objections to use of the Outlot for higher-density housing voiced by
Randy Gilbert at the April 26 Council meeting, we advised Amanda that she should confer with
Long Lake specifically regarding the issue of water capacity. She did so, and has advised us that
Terry Post indicated: 1) he believes the 2002 Agreement is no longer in effect because it was
created under a prior council; 2) Long Lake has plans for their own higher density housing and
needs to reserve capacity for future use; 3) the Long Lake water tower has insufficient capacity to
serve this project, so Orono should extend its own water system to serve it. Amanda also
expressed to us that CommonBond is not in a position to force Long Lake to honor the
Agreement. She has indicated that she will be making a presentation about the CommonBond
project to the Long Lake Council on May 1 gcn
Because of these issues, staff met with our Alternate Attorney Dick Schieffer on May 6 and asked
him to address a number of questions related to the Agreement, such as its validity, whether it
contemplates reserving future capacity, who determines whether there is "sufficient capacity",
and who the parties would/could be if we were to seek a declaratory judgment on the validity and
interpretation of the Agreement.
While the Agreement language generally does not support Post's position, we do need to take a
step towards a conclusion. Schieffer suggested that the City Engineer is in the best position to
determine whether there is capacity, and we have asked Tom Kellogg to consider what would be
involved in making such a determination, pending Council review of the issue. Schieffer also
noted that submitting a letter to Long Lake requesting approval for the water units to serve the
CommonBond project is too easy for Long Lake to ignore or delay - it may be prudent for him
and members of staff to appear at a Long Lake Council meeting to get the issues out in the open.
Mr. Schieffer has agreed to attend our May 11 work session to discuss a strategy for resolving the
Agreement issues.
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City Of OrOno � Paul, :�tN `i71i)J-l9OC)
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Caystal Bay, MN 55323 , ,c��_ti��,-� �.�,,
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May 4, 2010
Dear Mayor, Council Members and City Staff,
CommonBond Communities(CommonBond) h1s been working with the City of Orono to develop much
necded quality affocdable housing for residents of Orono and adjacent municipalities. CommonBond, in
partnership with its service partner- Interfaith Outreach Community Pa��tuers- is proposing the
development of a 38 unit townhome community oii the City's Willo�v Drive parcel.
The development will provide lwo, three, and four bedroom to��mhomes for residents earning between
30%and 60%of tfie area median income. The }�roposed housing community will support the area's�ieed
for workforce housing and will provide att opportunity for families to live in quality affordable housing in
the amenity-rich City of Orono.
Afte�•discussions �vith City Staff; CommonBond has been directed ro provide options for land disposition.
The two options that CommonBond is proposing are a land leasc or a note.
Land Lease:
CouimonBond would propose a 99 year lease for the land. For the Willow Commons development,the
City would maintain ownecshi�of thc land. As the owner of the land,the City would have the ability to
place specific criterion on the land, sucl� as required affordability and design aesthetics.
ConunonBond would pay $1.00 for the land lease. As the lease holder, CommonBond Commwiities
would be responsible for paying the taxes on the land.
At the end of 99 years,the City would have the ability to choose to either continue the current lease terms
or transfer ownership to CommonBond Co�nnn�nities for$1.
30 year Note
As a tax credit deal,CommonBond would need to be sensitive to what invcstors will accept for notes. In
the current syndication marl:ct, investors are requiring tliat all notcs, otttsidc of the pei-manent mortga�e,
be soft debt and bc cepaici from available cash flow.
If we were to movc forward with a note, valued at thc lppraised price, CommonBond wou(d requcst that
thc City provide a note for the land with a 30 ycar term and a I% interest rate. CommonBond�vould
makc payments on the note from availablc cash flow. The note would be repaid when ConimonBond
refinances the development.
CommonBond would prcfer a Iznd lease from the City, as opposed to Yhe 30 year note, due to thc
requirements of tax credit inveslors and syndicators.
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In additiort to the land disposition, I would also lilce to address the concerns associated witt�the"difficult
to develop"box in our 402 application. On our application,thc"difficult to develop"box was checked to
ensure tl�at the development receive the 30% basis boost that is available to 9%tax credit projects. The
basis boost,which was approvec3 as part of the 2009 American Recovery and Reinvestment Act, altows
for more equity to be awarded to the project. All of the applications to MHFA have the right to check the
difficult to develop box. This does not mean that the site is difficult to develop;rather it ensw•es that the
basis boost is applied through MHFA's macro formula.
We look forward to continuing to work with the City Council a��d staff on a resolution regarding land
cost. Please let me know if you need any further information.
erely,
Amanda Novak
Senior Project Manager
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Mike Gaffron
From: Novak, Amanda [Amanda.Novak@commonbond.org]
Sent: Tuesday, April 20, 2010 1:45 PM
To: Jim White; Mike Gaffron; Melanie Curtis
Subject: LCA doc Orono.doc
Attachments: LCA doc Orono.doc
I have attached the LCA receptivity form for our upcoming application. It will need to be signed by the Mayor. The form
states that if the Metropolitan Council awards Livable Communities funds to the project,the City will act as a path-
through entity.
Please let me know if you have any questions.
Amanda Novak
Senior Project Manager
CommonBond Communities
(651) 290-6213
1
LOCAL HOUSING INCENTIVES ACCOUNT (LHIA)
ACKNOWLEDGEMENT OF RECEPTIVITY
TO AN LCA FUNDING AWARD
As a participant in the Livable Communities Local Housing Incentives Account Program, the City of Orono
supports the affordable and life-cycle objectives of the Livable Orono (name of city or township)
Communities Act (LCA). Accordingly, it will accept and make available in a timely manner to Request for
Proposal (RFP) applicant - Common8ond Communiries any LCA award to the city/township to assist the
housing program or activity proposed in this application if such an award is made.
By:
(Authorized City Official)
PROPOSED PRO]ECT INFORMATION (Required for grant contracting purposes.)
PROJECT INFORMATION
Willow Commons 340 Willow Drive Orono
Project Name Project Address Project City
Willow Drive and Firestation Road
Street boundaries or ma or intersections
PROJECT CONTACT INFORMATION
Amanda Novak 328 Kellogg Blvd. West Saint Paul 55102
Contact Name Address City Zip Code
651.290.6213 651.291.1003 novak@commonbond.or
Phone Number Fax Number E-Mail Address
CITY/TOWNSHIP CONTACT INFORMATION
Jim White Mayor 952-471-8136 �white@ci.orono.mn.us
Contact Name Title Phone E-Mail Address
AUTHORIZED CITY, COUNTY OR DEVELOPMENT AUTHORITY OFFICIAL(S) CONTACT INFORMATION
Jim White Mayor 952-471-8136 �white@ci.orono.mn.us
Name Title Phone E-Mail Address
1 8/]0/2009
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C I T Y� O F
LONG LAKE
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City of Orono '�pR 2
27�0 Kelley Parkway Cjn, b�010
Crystal Bay, MN 55323 �Fp�,0�0
RE: Comments Regardin� Orono 2030 Comprehensive Plan
To W"nom it Ivlay Concern,
The City of Long Lake �vould like to make the following formal comments regarding the
City of Orono 2030 Comprehensive Plan:
1. We object to tl�e re-guiding of the pcoperties that immediately abut the City of Long Lake
��estern border area immediately south of the TH 12 Bypass to Watertown Road from
the previous single family residential use at a density of 2-3 dwelling units to up to 15
units per acre of inedium and high density mulitifamily use. We believe that there is no
effective transition from the City of Long Lake R-1 singfe family residential zoning to
the proposed higher density multifamily� housing re-guiding.
2. We qtiestion the availability of water to this higher density area. The supply of City of
Long Lake municipal water to the re-guided higher density housing units is contingetlt
upon the City of Long Lake making a determination that there is siffrcieiat capacity in
the City of Long Lake water system to eYpand in this area.
3. Holbrook Parh is a City of Long Lake public facility. We believe the proximity of re-
guided additional housing units to the park will impact the park �vith expanded use and
greater maintenance costs. We are not a�vare of any methods being discussed in tlle 2030
Comprehensive Plan to�nitigate sucll impact.
4. Finallv, a housing buildout of Outlet A, Wildfire Addition, wo�ild preclude any sort of
expanded institutional use immediately adjacent to the existing W'illow Fire Station No.
1. We are not a�vare of any planned e�panded use at this time,just maki��g tl�e
observation that it�vould not even be a future consideration �vith this 2030
Comprehensive Plan Update.
Sincerely,�
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Terrance R. Post
Long Lake City Administrator
cc: Metropolitan Council
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AGREEMENT
This is an Agreement between�the City of Long Lake, Minnesota(Long Lake) and the
City of Orono, Minnesota(Orono), collectively cailed the Parties(the Parties), on certain matters
with respect to the joint development of a fire station situated within the City of Orono.
WHEREAS,the Parties have entered into a previous Agreement on August 8, 2001
(Settlement Agreement) far the joint construction, ownership and operation of a new fire station;
and
WHEREAS,pursuant to the Ageement of August 8, Z001, the Parties have agreed to
purchase property in (Orono for the new fire station site. The fire station site is a portion of a
larger parcel legally described as Lot 1, Blocic 1,Willowfire Addition(the "Parcel"); and
WHERFAS, certain matters have arisen with respect to the development of this Parcel
which the Parties dcsire to resolve and memorialize as an enforceable Agreement;
NOW, THEREFORE, Long Lake and Orono, for good and valuable consideration,
receipt of which is mutually acknowledged, do agrea as follows:
1. The Parties agree that the Parcel will be served by a public road which will �
provide access to the fire station and to the outlot created to the east of the fire station. The
public road is shown on the attached Exhibit A. The construction cost of this road will be funded
from the joint fire station account, as created by the Agreernent of August 8,2001. The fire
station account will be reimbursed for SO%of the construction cast of the road,plus interest at
tl�e annual rate of 4%, wl�en the outlot to the east of the fire station is developed.
2. The Minnesota Department of Transportation has agreed to pay the full cost of
providing a sewer line to seive the fire station. The sewer will cross the Parcel approximately as
shown on Exhibit A. The Parties agree that the sewer l'u�e may be built to specifications which
provide for �eater sewer line depth than the sewer Iine for which the Mimiesota Department of
Transportation has agreed to pay. The Pail:ies estimate the additional expense of the deeper
sewer line to be approximately$70,000.00. Orono agraes to pay the additional costs.
3. The Aarties a�ree that permanent utility easements will be provided over Long
Lake and Orono utilities as shown on the final plat.
HC26DS4/4707126554974.v1 2/2b/2002 page 1 of 3
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4. Long Lake agrees that it will provide 350 units of sewer capacity to serve other
properties in Orono as and when the properties connect to the sewer line. The properties that
connect to this sewer line wi11 be treated in the same way as other properties in Orano that have
cannected to Long Lake sewer lines. Long Lake will charge a connection fee of$3,45d per unit,
which includes a Metro SAC charge of$1,200, to connect to the sewer system. This fee is
consistent with the 2002 Fee Schedule as adopted by the City Council. The Orono properties that
corulect to the Long Lalce sewer line will not pay any other one-tune or on-going fecs. Long
Lake will receive a credit frorn the MCES for the sewer flow from the Orono properties, and
4rono will be charged by MCES for tlus flow. Orono shall be responsible for rnaintenance of a11
of the laterals and service taps and Long Lake shall be responsible for the maintenance of the
primary system.
5. Th�Minnesota Department of Transportation has agreed to pay the full cost of
constructing a watex Izne to serve the fire station. The water line will cross the Parcel
approximately as shown by Exhibit A. The Parties agree that the waterline is available to serve
the autlot on the parcel as shown on Exhibit A. Long Lake will charge a connection fee of
$2,700 per unit for residential properties to connect to the water system. This fee is consistent
with the 2002 Fee Schedule as adopted by�lle City Coimcil. Long Lake agrees to provide water
service to this Iot and charge a quarterly water service fee consistent with the rates established by
the City Council for properties outside of the City of Long Lake. Long Lake also a�rees that if
tliere is sufficient capacity in the Long Lake water system, and water service is requested,water
service will be made available to the properties in Orono on the east side of Willow Drive
between Watertown Road and lhe new Highway 12, to the properties in the Hackberry
neighborhood that ciu-rently receive sewer service through Lang Lake, and to the properties on
Woodhaven Drive. These properties wauld be charged a eonnection fee and quarterly water
service fee consistent with the Fce Sclledule as adopted by the Long Lake City Council at the
time of the connection. Long Lake shall meter water service with a large capacity main line
meter. Orono sha11 be responsible for maintenance of all of the laterals and seivice taps and
Long Lake shall be responsible for the maintenance of the primary system.
6. The Pa.rties agree thai the Parcel has been platted as shown in Exhibit A, and that
the outlot wi11 be under the sole ownership and control of the city of Orono. The Parties agree
that the fu�e station sits on approximately 2.04 acres of land as shown by tl�e plat,that the right of
way for the public road setving the fire station is approximately,42 acres, and that the wetland
initigation area and storm water ponding area provided for the fire station is approxirnately.68
acres. The Parties agree that this configuration is consistent with the Agreement of August $,
2001, in which the Parties determined that the fu•e station site will be"approximately three
acres."
HC26D54/4707/26554974.v1 2l26@002 page 2 of 3
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7. The Parties agree that the joint fire station accotuit created by the Agreement of
August 8, 2001, will pay for 50%of the costs of platling the Parcel, including engineering costs
of the survey and plat. Orono agrees that it will pay the other SO%.
8. The Parties agree that the actual costs of the huilding permit and plan review fees,
and storm sewer tru�lk fees will be paid to Orono froin the joint fire station account.
9. The Parties agree that the City of Long Lake will purchase and carry builder's risk
insurance on the new Fire Station building during the construction of the new Fire Station. The
cost of the builder's rislc insurance will be paid from the Joint Fire Station Account.
10. The Parties agree that this Agreement is a binding obligation, accepted by the
resolution of each City council. The Parties agree that this Agreement may be enforced by the
injunctive order of a court of competent jurisdiction.
Approved by the cities of Orono a��d Long Lake on this day of April,2002.
CITY OF ORONO
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Ron Moorse, City Administrator
CITY OF LONG I.AKE
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Michelle E.Morse, City Administrator
HC2bDS4/4707/2fi5S4974.v1 2/262002 page 3 of 3 .
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�� . ORONO CITY COUNCIL MEETING
MONDAY, SEPTEMBER 9, 2002
*8a. Miscellaneous Equipment—Fire Station
White moved, and Nygard seconded to approve the purchase of miscellaneous
equipment submitted on August 27,2002 for the Long Lake fire station in the
amount of$18,960.00, and to authorize the expenditure from the Joint Fire Station
account.
Vote: Ayes 4, Nays 0.
�- � *9. Fire Station Site Agreement
White moved, and Nygard seconded, to approve the Fire Station Site Agreement,
and to authorize the City Administrator to sign the agreement.
Vote: Ayes 4, Nays 0.
*10. Mn/DOT Request for Right of Entry for Highway 12 Project
White moved, and Nygard seconded, to approve the Temporary Permit to Construct
at no cost to Mn/DOT.
Vote: Ayes 4, Nays 0.
*11. Police Department Vehicle Replacement
White moved, and Nygard seconded, to approve the conversion of a forfeited 2001
Ford F-150 to the police department fleet as a community service officer vehicle.
Vote: Ayes 4, Nays 0.
*12. Request to Dispose of 1997 Crown Victoria Squad Car
White moved, and Nygard seconded, to approve the disposal of Squad #184 through
sealed bid process.
Vote: Ayes 4, Nays 0.
*13. Metropolitan Airports Commission Assistance Agreement
White moved, and Nygard seconded, to approve the assistance agreement for Orono
Police Officers to provide security for the Metropolitan Airports Commission at the
Minneapolis-St. Paul International Airport.
Vote: Ayes 4, Nays 0.
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MEMORANDUM
TO: MAYOR AND COUNCIL MEMBERS
FROM: LIN VEE, CITY CLERK
SUBJECT: COMMENTS REGARDING INFORMATION UPDATES
DATE: MAY 7, 2010
Attached are the Information Update memos from Apri123 and April 30 for reference if Council
wishes to discuss any of these items.
MEMORANDUM
TO: MAYOR AND COUNCIL MEMBERS
FROM: ORONO MANAGEMENT TEAM
SUBJECT: INFORMATION UPDATE
DATE: APRIL 23, 2010
• On Monday night(in addition to a variance for a new home, a sign code amendment and a
preliminary plat review)the Planning Commission reviewed the CommonBond sketch plan and
continued the public hearing for the Comp Plan. All in all I think the meeting went pretty well.
Although there were not many Orono residents present for this application,there was a good showing
of Long Lake residents in the room. Following a presentation from CommonBond the public was
given the opportunity to speak, ask questions and make comments. Their comments ranged from: this
is too many units; we don't want affordable housing; Orono is "shoving this in our faces"; this type of
development will put a strain on LL's City park and our police services; re-guiding this area for
higher density is "mean-spirited"; this development will infringe on the fire department's use of the
property; to many other comments as noted in the Minutes. There were no Orono residents present,
from the directly affected neighborhoods, who expressed support or opposition. Most of the LL
residents left before the Comp Plan discussion was opened. Staff outlined and addressed the issues
brought up at the April 7th Comp Plan open house. Concerned residents (mostly from the Navarre
area) and the owners of the properties discussed were present for the most part. (MC)
• The City posted two Land Use Application signs on the CommonBond site as they made their formal
application Wednesday. (MC)
• The attached letter from the LMC discusses possible aid cuts from the State of Minnesota. Orono
does not receive LGA so has not been affected by the cuts. We have lost our MVHC which
amounted to $15,500. The State is now looking for more areas that they can cut from local
governments. The aids identified in the letter include PERA, Police, and Fire. These are the
amounts that we currently receive in these aids:
PERA- $7,200
Police - $110,000
Fire—Information requested from Long Lake.
• The City received the following attachments from the Hennepin County Department of
Transportation regarding the 2010 anticipated overlay projects:
o Hennepin County Letter
o Overlay Map
o Summary of Contract Overlay Projects
o Spreadsheet of Approved Overlay Program
• The following link will direct you to a PDF of the Hennepin County 2009 Traffc Flow M�. The
map provides Annual Average Daily Traffic (AADT)volumes for the Hennepin County road system.
Any questions concerning the Traffic Flow Map and the AADT volumes should be directed to Stan
Albrecht at 612-596-0256.
• Additional attachments:
o Metro Cities News—Apri123, 2010
MEMORANDUM
TO: MAYOR AND COUNCIL MEMBERS
FROM: ORONO MANAGEMENT TEAM
SUBJECT: INFORMATION UPDATE
DATE: APRIL 30, 2010
• Cleanup Day, Saturday, Apri124—Participation was as follows: approximately 200 from Orono, 30
from Long Lake and 11 from Minnetonka Beach. Participation was down from previous years,
possibly due to weather, but it seems like there is less "junk" overall. Electronics, especially
computers, were down significantly. Staff will consider a shorter timeframe far next year,possibly
8:00 am—Noon.
• At the April 27th Council meeting, Superintendent Borg promised the Council Members that he
would send information on how to receive Westonka's weekly email newsletter. Anyone is welcome
to subscribe to their newsletter,just visit the website at www.westonka.kl2.mn.us and click on GO,
midway down on the left side. Visitors will then be able to enter their email addresses to receive their
weekly newsletter.
• The City received the attached email from the GEARS Board. They are working to define the terms
of its members and to formalize a process for the seating of inembers going forward. They are
requesting feedback on the proposal by May 14th.
• The LMCD has provided their draft 2011 Budget. The proposed Orono levy is $59,393, which
accounts for an increase of$379 or 0.6%over last year. The letter to the member cities does a good
job of pointing out the differences between the 2010 and 2011 budget. It appears they will be slightly
increasing public access inspections and slightly decreasing the milfoil harvesting. Given past
discussions regarding milfoil treatments,the Council may want to note there are no funds allocated to
herbicide treatment(nor have there been in previous years). One area of concern is the LMCD has
used transfers out of reserves to help keep the budget flat. Staff can attend the June 3rd budget
meeting to share your comments. (Draft 2011 LMCD Budget and Letter attached)
• The MCES has responded to our request to take over the Industrial Boulevard sewer line(see
attached letter). They have agreed to investigate the merits of the request. This is less of a
commitment than we hoped for,but it is better than last year's response. In my conversations with
Kyle Colvin,he indicated that the MCES's desire to move forward with taking over the line depends
on Long Lake's desire to be paid far the line. (RO)
• Additional attachments:
o Sun Sailor Newspaper Article—Orono To Investigate Geothermal Energy For Ciry Offices
o Sun Sailor Newspaper Article—Shoreline Rule Changes Continue Along Lake Minnetonka
o Pioneer Newspaper Article—Orono Students Receive Safety Lesson Before Prom
o Friday Fax, a legislative update from League of Minnesota Cities—Apri123, 2010
o Metro Cities News—Apri129, 2010
Orono City Council
Committee of the Whole
April 27,2010,6:30 p.m.
Orono City Council Chambers
Present: Mayor Jim White, Council Members Cynthia Bremer, Doug Franchot, Lili McMillan and Jim Murphy;
City Administrator Jessica Loftus, Assistant City Administrator for Long-Term Strategy Mike Gaffron,
Planning and Zoning Coordinator Melanie Curtis, City Clerk Lin Vee, City Attorney Soren Mattick
1. CommonBond Discussion
• City Attorney Mattick reviewed his discussion with CommonBond regarding project costs.
• Council discussed CommonBond's letter of April 16, 2010 regarding the cost of City land and fees related
to their proposed affordable townhome development.
• Jim Gabler of Gabler Housing Solutions Corporation commented on his financial review of CommonBond's
"Willow Commons" affordable housing proposal.
• Council continued with discussion of finance mechanisms that may be available for the proposed project.
• Council directed Mattick to continue discussions with CommonBond regarding possible financing options
for City land and fees.
2. Processing Complex Zoning Applications
City Attorney Mattick stated he had two items for discussion.
• Neighbor Complaint/Code Enforcement
o Mattick stated he had been working with staff regarding a neighbor complaint related to helicopter
noise.
o Council directed Mattick to respond to the neighbor that the city would not pursue the complaint in
civil court and to offer mediation service provided through the city if they wish to pursue the matter.
• Processing Complex Zoning Applications
o Due to the lack of time to hold an in-depth discussion about processing complex zoning applications,
this item will be scheduled at a future work session.
3. Comments Regarding Information Updates
• None
4. Other Issues of Current Interest
• Council reviewed the action taken at the Council meeting regarding submittal of the Comp Plan Update to
the Met Council. Council directed staff to review the properties designated for mixed use and bring the
Comp Plan Update to the next Council meeting for reconsideration.
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