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031698 CC WS Min . , . CITY OF SHOREWOOD CITY COUNCIL WORK SESSION MEETING MONDA Y, MARCH 16, 1998 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION Mayor Dahlberg called the meeting to order at 7:07 p.m. A. Roll Call Present: Mayor Dahlberg; Councilmembers O'Neill and Garfunkel; Planning Commissioners Kolstad and Champa; Administrator Hurm; Planning Director Nielsen Absent: Councilmembers Stover and McCarty B . Review Agenda The agenda was approved as presented. 2. DISCUSSION OF LAND CONSERVATION ISSUES AND CITY'S INVOLVEMENT Administrator Hurm distributed handouts relative to protecting the community's natural resources. . The group then viewed a video tape relative to "Keeping Open Spaces for Tomorrow." Dean Riesen, 20030 Excelsior Boulevard, President and General Partner of Carlson Real Estate Company, spoke relative to conservation contribution and easements. Mr. Riesen distributed a handout to the group relative to this issue. Mr. Riesen stated a conservation easement was utilized in the Harbor Woods development in Plymouth. He explained this particular parcel was irregularly shaped. Half of the property was guided for multi family and half for single family residential. All of the surrounding property had been developed years prior. The City ultimately allowed higher density on the single family portion of the property. In addition, a portion of the multi family space was utilized for single family. A donation of a conservation easement was made on the remaining property which was designated multi family. This allowed a substantial tax deduction equal to the full market value minus the value of the property with the conservation easement. Mr. Riesen stated the property has minimal value given the perpetual conservation easement which was placed on it. He felt this experience was positive for the city, the property owner and the surrounding neighborhood. Mr. Riesen reviewed the IRS guidelines relative to conservation contributions and easements. He also reviewed various conservation purposes. Mayor Dahlberg inquired whether stormwater management would qualify as a conservation purpose. Mr. Riesen felt stormwater management would qualify as a purpose. . . . . CITY COUNCIL WORK SESSION MINUTES MARCH 16, 1998 - PAGE 2 Commissioner Champa inquired what would happen to the easement in the event the property were sold. Mr. Riesen stated this becomes a part of the deed, is permanent and cannot be revoked. In exchange for a tax deduction, the property owner would lose development rights to the property and it would have to be left in its natural state. These rights do not expire at any point in the future. Mayor Dahlberg inquired whether the property owner would still have the ability to mow and maintain the property. Mr. Riesen explained a provision such as this could be included in the easement document. The property could be sold, however, the easement would stay with the property and the new owner would not be able to do anything contrary to the easement. Nielsen inquired whether the City could at some point release the development rights since the City is the beneficiary of the easement. Mr. Riesen explained to qualify for the IRS tax deduction, the City would have to give up the right to reverse this. Mr. Riesen felt one of the most important pieces of the conservation easement to be the educating of property owners and the willingness of the City to assist property owners through the process. Councilmember O'Neill stated this is one tool and he felt a variety of tools should be made available to address an assortment of situations which exist in Shorewood. Mayor Dahlberg felt the two most valuable tools to be conservation easements and land acquisition. Councilmember O'Neill felt there to be other options available as well. Mayor Dahlberg felt the City could help residents understand and apply the tools which are available. Commissioner Champa felt the tools must be marketed to the community to determine whether there is an interest in this type of program. Mayor Dahlberg suggested the programs could be made known to the community and anyone wishing to utilize one of the tools available could receive assistance from the City. Mr. Riesen suggested targeted marketing may be appropriate. Mayor Dahlberg felt a good communication strategy would be for someone such as himself to go through this process publicly. Councilmember O'Neill noted the Park Commission would like to obtain more park land and one way to achieve this would be for the neighborhoods to purchase the property, giving the first option to the City in the event they wish to sell the property at some point in the future. Mayor Dahlberg raised the issue of the golf course and stated his belief everyone would like to see the corporation which owns the golf course benefit to the fullest possible market driven extent. He felt there may be tools available in which the City could plan in advance for what might happen with the golf course in the future. Mayor Dahlberg explained as property values in Shorewood increase, there will be a point at which the property will be worth more developed than being utilized as a golf course. He suggested the Planning Commission review the matter. Hurm noted the IRS places limits on the use of deductions so that in any single year, the taxpayer can claim a deduction for an amount only up to 30 percent of the taxpayer's adjusted gross income. Excess deduction amounts can be carried forward over the next five years. He pointed out this could be beneficial to people with a $40,000 or $50,000 deduction. Mayor Dahlberg pointed out for a property owner who is many years away from retirement, they would receive the net present value of the funds at this time, however, they must be disciplined and committed to investment. CITY COUNCIL WORK SESSION MINUTES MARCH 16, 1998 - PAGE 3 . Councilmember O'Neill noted there had been discussions in the past relative to holding a referendum to ascertain whether the residents would be in favor of paying an additional tax for the next couple of years which would allow the City to purchase green space. He felt a referendum should be carried out as quickly as possible. Mayor Dahlberg noted his agreement stating his belief the residents of Shorewood are interested in preserving as much green space as possible of what is remaining. Mayor Dahlberg suggested formulating a committee which would address this issue and formulate a plan as quickly as possible. Mr. Riesen felt possible a CPA as well as other professionals should be included on this committee. Mayor Dahlberg felt the Planning Commission could work with staff to develop the makeup of the committee. He explained his management objective in this regard would be to speed up the process as much as possible. Hurm reminded the Comprehensive Plan must also be taken into consideration and a determination made whether this matter fits into that plan. Mayor Dahlberg felt the residents could immediately be educated on this process through articles in the Sun Sailor as well as the monthly newsletter. In addition, he would be willing to publicly work through the process himself as an example to the citizens. Hurm inquired if the City were to reject the idea of an easement being donated to the City, would the property owner have the option of donating .an easement to an entity such as the Park Foundation. Mr. Riesen noted this would be another option. Hurm stated the City may want to establish some criteria in this regard. Mayor Dahlberg did not feel the current Council would reject any conservation easement which would be offered. Nielsen pointed out the City would not incur any costs through the conservation easement process. . Commissioner Kolstad suggested looking at ways to change the zoning ordinances to maintain the characteristics of Shorewood through the use of green space, setbacks and percentage of hardcover among other things. Mayor Dahlberg stated the Planning Commission will need to research this matter and provide recommendations for the consideration of the Council. Mayor Dahlberg felt the issues which need to be addressed by staff and the Planning Commission include fine tuning the ordinance, coordinating the changes with the Comprehensive Plan as well as the committee which is being established and its efforts. Mayor Dahlberg felt setting up a small committee and beginning the planning of an educational process should take place as soon as possible. Mr. Riesen stated he would be happy to volunteer as the chair of the committee which is to be established. Mayor Dahlberg expressed his appreciation to Administrator Hurm for his interest and work on this issue. . . . . , (' t. CITY COUNCIL WORK SESSION MINUTES MARCH 16, 1998 - PAGE 4 3. ADJOURNMENT Garfunkel moved, O'Neill seconded to adjourn the City Council Work Session Meeting at 8:55 p.m. Motion passed 3/0. RESPECTFULLY SUBMITTED, Cheryl Wallat, Recording Secretary TimeSaver Off Site Secretarial, Inc. YOR