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HomeMy WebLinkAbout2023-11-08 CC MIN Changed Due to Election 216 4th Street N, Stillwater, MN 55082 651-430-8800 www.stillwatermn.gov CITY COUNCIL MEETING MINUTES November 8, 2023 WORKSHOP MEETING 4:30 P.M. Mayor Kozlowski called the meeting to order at 4:30 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna Absent: None Staff present: City Administrator Kohlmann City Attorney Land City Clerk Wolf Community Development Director Gladhill Fire Chief Glaser Police Chief Mueller Public Works Director Sanders Natural Resource Technician/Arborist Coyne St. Croix Recreation Center Manager Brady Library Director Troendle OTHER BUSINESS Recreation Center Expansion Feasibility Update Community Development Director Gladhill summarized a request from multiple stakeholder groups to discuss options to expand the St. Croix Valley Recreation Center. The assumption is that the project would be funded by a split of State bonding dollars and private capital fundraising dollars. A financial pro-forma indicates that operating revenue will cover operating expenses. However, when factoring in depreciation, there is a risk that the expansion would operate at a deficit of approximately $100,000. Staff believes the level of risk is reasonable and recommends that the Council affirm its support for a Capital Fundraising Campaign based on the updated materials. The stakeholder group, including the Curling Center, is seeking confirmation that they may commence capital fundraising. Councilmember Junker pointed out there is no debt service in the pro-forma. The biggest unknown is how much revenue a restaurant would bring. The expansion could cost $26-46 million depending on fundraising and State bonding. Mayor Kozlowski stated the pro-forma shows that if done right, this could be feasible. Councilmember Odebrecht agreed, however for the record he would like the minutes to show he will not vote for something that does not operate in the black, and right now it does not look like it would operate in the black. Mr. Gladhill stated the deficit from factoring in depreciation could be made up either through running in the positive in existing operations that could even out, or fundraising above and beyond the initial capital that accounts for future depreciation. cStillwater ~~ ......, ' The Birthplace of Minnesota J City Council Meeting November 8, 2023 Page 2 of 8 Mayor Kozlowski remarked that a $20-$40 million facility, that costs the City $120,000 a year to operate, seems a small price to pay for an amazing amenity. Councilmember Polehna stated he understands the risks, but sees an economic benefit for the whole community. He also views it as an opportunity to improve the parking lot. Mr. Gladhill noted the parking lot could be improved as a standalone project. Council direction is not needed at this point; the project is back on the stakeholders for fundraising. Hazardous Building Determination at 1309 3rd St S City Attorney Land stated that City staff is requesting that the Council initiate a 463 action to remove a hazardous garage and retaining wall, located at 1309 3rd Street South owned by Richard A. Ames, Robert M. Ames, and Cheryl E. Ames. Attorney Aaron Price explained the 463 process. He summarized findings of a City inspection in June 2023, when the Building Official concluded that the garage and retaining wall are hazardous structures. A portion of the retaining wall crosses over the property line of 1314 2nd St S. The Code Enforcement Officer was informed by the neighboring property owner on 2nd Street that he attempted to work with Mr. Ames on both the retaining wall and the garage, but Mr. Ames did not express interest in finding a timely solution to the problems. When the Code Enforcement Officer sent Mr. Ames a copy of MN Statute §463 and relevant portions of City Code, Mr. Ames expressed an interest in trying to address the hazardous conditions. In September he informed the City there is a lot of work being done to the residence and an architect was hired to design a new garage, but nothing was done to the garage or rear yard retaining wall at that point. The order calls for the removal or repair of the retaining wall and removal of the garage by December 31, 2023. If they fail to do so, the City would file an order in District Court, obtain a judgment and assess the property the cost of doing the work. Councilmember Polehna asked if it is a joint retaining wall, why is the City trying to force one of the residents to take care of the whole problem;and City Attorney Land replied that the long part of the wall is owned by 1314 Second Street, so the 1309 owner can do nothing about that, he can only repair the 1.8 feet that is on his property, but he has to trespass on 1314 to get to it, so they need to work together to repair the wall. If the Council orders the 463 process, they will be forced to work together with the Building Official. The garage must be demolished first. Councilmember Junker commented that March to November seems like a long time to act on a dilapidated building that is very hazardous, and Ms. Land agreed that code enforcement usually is a long process due to all the steps involved. The property owner gave a history of work her parents have done on the home, and her mother’s deteriorating health prior to her passing in February. She stated that Bob has been working to get things accomplished. They will remove the garage, but they need more time. Another family member reiterated the impacts of her mother-in-law’s sickness and death, and stated they are willing to work with the neighbor, but must prioritize. She stated the structural engineer was not present for the inspection and when the official assessor assessed the garage property, they were not there because they were not notified. They have been working on painting and electrical work in the home. She showed a picture of the neighbor’s garage with a falling roof. City Council Meeting November 8, 2023 Page 3 of 8 Ms. Land indicated that the neighbor’s garage is next up for potential action by the City. Mayor Kozlowski told the property owners this work must be their top priority. Motion by Councilmember Collins, seconded by Councilmember Junker, to adopt Resolution 2023‐149, Resolution and Order to Raze and Remove the Hazardous Structures Located at 1309 3rd Street South. All in favor. Emerald Ash Borer Presentation Natural Resource Technician Coyne gave an update on the Emerald Ash Borer, which has killed 30-40% of the ash trees in Stillwater. He gave an overview of management options and costs. The City currently spends about $30,000 every two years to treat trees. Another option is removal and replacement which costs $1,650 per tree. For 291 trees, the cost would be $480,000. The City can educate and empower citizens to be the eyes and ears of the forestry department. There also are many grants available to help manage the problem. Affordable Housing Policy Work Plan Request Councilmember Odebrecht gave a presentation on developing an Afford able Housing Policy. Of roughly 8,000 homes in the City, only about 300 of them are affordable to those who make 30% or less of the area median income. However, 51% of households in Stillwater fall below the 30% threshold. He led discussion on existing resources, potential projects and partnerships, and affordability thresholds. The Comprehensive Plan states that the City should have a housing action plan by 2022, but it is not done yet. The MN Legislature has dedicated an additional $1 billion in their biennium budget, which presents an opportunity for Stillwater. He recommends creating a citizen team to make a recommendation to the City and to Washington County. Consensus of the City Council was to move forward with the program. STAFF REPORTS Public Works Director Sanders stated the 72nd Street trail is done. Washington County will hold an open house November 16 on the 58th Street/Manning Avenue project. Neighborhood meetings on the 2024 Street Project will be held November 28 and 30. Staff is working with a consultant on a request for a $1.5 million grant for Myrtle Street. Police Chief Mueller reported that the Pink Patch fundraiser raised $3,325. There is a missing children awareness display in the Police Department lobby. The department is doing retail theft education for businesses and residents. Fire Chief Glaser gave updates on staffing, upcoming events and holiday safety tips. The Department is supporting high school teams. Community Development Director Gladhill stated two new staff members started this week. City Clerk Wolf gave an election update and thanked all who assisted. City Attorney Land stated another demolition case will be coming in December. City Administrator Kohlmann gave project updates and stated the City’s Facebook page reached over 1 million hits in October. City Council Meeting November 8, 2023 Page 4 of 8 Library Director Troendle reported on Congresswoman Betty McCollum’s visit and other activities. RECESS Mayor Kozlowski recessed the meeting at 6:20 p.m. REGULAR MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:00 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna Absent: None Staff present: City Administrator Kohlmann City Attorney Land City Clerk Wolf Community Development Director Gladhill Fire Chief Glaser Planning Manager Gutknecht Police Chief Mueller Public Works Director Sanders PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. RECOGNITIONS OR PRESENTATIONS Municipal Separate Storm Sewer System (MS4) Reporting Annual Meeting Rebecca Hauge, WSB Project Manager, gave the annual presentation on the City’s MS4 permit compliance. She explained activities included in the minimum control measures to keep only rainwater going into the stormwater system. Certificate of Appreciation for Dawn Thoren, Administrative Assistant Mayor Kozlowski presented a Certificate to Dawn Thoren for serving the City for 9+ years. OPEN FORUM There were no public comments. CONSENT AGENDA October 17, 2023 Regular Meeting Minutes Payment of Bills All Hazard Mitigation Plan to Maintain FEMA Grant Eligibility – Resolution 2023‐150 Appointment to Human Rights Commission and Parks and Recreation Commission Deferred Assessment for 2023 Street Improvement Project – Resolution 2023‐151 Downtown Stillwater Holiday Lights Agreements Employer Paid Covid-19 Leave for 2024 – Resolution 2023‐152 Fee Schedule Amendment for Credit Card Fees - Resolution 2023‐153 City Council Meeting November 8, 2023 Page 5 of 8 Fire Department Purchase Request for Fire Truck Apparatus Hwy 95 Monument Sign Design Services Contract Agreement LRIP Lakeview Easement Acquisition – Resolution 2023‐154 Myrtle Street Reconstruction Project Funding Support – Resolution 2023‐155 Rivertown Commons Request for Letter of Support for Financing Applications Therapeutic Massage Business and Individual Massage Therapist Licenses – Resolution 2023‐156 Well House #12 Pump Repair Project Contract Agreement 2024 Street Improvement Project Traffic Study Agreement Motion by Councilmember Collins, seconded by Councilmember Junker, to adopt the Consent Agenda. All in favor. PUBLIC HEARINGS Case 2022‐19 to consider an appeal to variance denial for yard setbacks for an apartment building located at 107 3rd St N. Mr. Gladhill explained that the developer applied for a setback variance in order to add balconies. The Heritage Preservation Commission believed that the introduction of balconies will improve the design of the proposed building. However, the Planning Commission unanimously denied the variance because the applicant failed to meet the practical difficulty test. The applicant has appealed the denial. Mayor Kozlowski opened the public hearing. There were no public comments. Mayor Kozlowski closed the public hearing. Motion by Councilmember Odebrecht, seconded by Councilmember Collins, to uphold the denial of the variance to yard setbacks for a building located at 107 3rd St N. All in favor. Ordinance Amendment to establish a special service district in the Downtown Stillwater area for purposes of imposing a service charge within the district – Ordinance 2nd Reading & Resolution City Administrator Kohlmann reviewed efforts to engage downtown business owners regarding the creation of a Special Service District, a defined area within the City where special services are rendered and the costs of the special services are paid from revenues collected from service charges imposed within that area. 102 commercial properties are proposed to receive a $500 Special Service Charge per commercial building. The anticipated $51,000 annual revenue will be allocated to the district in various services and improvements. An advisory committee of 5-9 commercial property owners will recommend how the funds shall be used. The committee will be created in early 2024. Mayor Kozlowski opened the public hearing. Larry O’Connor, Larry’s Floor Covering, spoke in opposition to the Special Service Charge. He feels it will not benefit him as a business owner on a side street. He does snow removal better than the City will do it. Mayor Kozlowski responded that the City is not allowed to exempt a particular property. He believes the Special Service District will benefit Mr. O’Connor’s business. Mayor Kozlowski closed the public hearing. City Council Meeting November 8, 2023 Page 6 of 8 City Administrator Kohlmann stated vendors would be hired to do whatever is required downtown whether shoveling snow, removing snow, etc. Councilmember Polehna questioned the idea of removing snow for the businesses. He thought this was more for the amenities like maintaining the bathroom buildings. Mayor Kozlowski clarified this is for services above and beyond what the City already provides. Councilmember Junker noted that people are coming to Stillwater like never before to enjoy the amenities. The levy dollars that the City collects from commercial buildings and residents do not keep up with the needs brought about by the high number of people who visit downtown. The City is looking for a strong partnership with the downtown property owners, who will make the recommendation annually to the City on how they want to spend that $51,000 to make Stillwater great every day. Councilmember Odebrecht commended Administrator Kohlmann, Councilmember Junker and downtown businesses, saying this is a really clear commitment from the Chamber and businesses to continue to maintain and beautify downtown. Motion by Councilmember Junker, seconded by Councilmember Odebrecht, to adopt Ordinance No. 1207, an Ordinance Enacting Stillwater City Code Chapter 56, Section 6 - Special Service District, and to adopt Resolution 2023‐157, Resolution Authorizing the Imposition of a Service Charge to the Stillwater Special Service District. All in favor. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS Drive-Through Request in Neighborhood Commercial District Planning Manager Gutknecht reported on a request to allow a drive-through at Art’s Coffee located at 920 Olive Street West. An amendment to City Code would be required. The Planning Commission concluded that they would be disinclined to entertain a Zoning Text Amendment to allow drive-throughs in the Neighborhood Conservation District due to traffic concerns both on site and pressures to local streets, and that drive-throughs would likely be an incompatible neighboring use with the residential properties. Mayor Kozlowski agreed with concerns about putting extra stress on the intersection. Councilmember Junker remarked that neighborhood commercial areas are intended to remain walkable and not automobile-centric. A drive-through lane changes the traffic flow within the parking lot and in the neighborhood. Consensus of the Council was not to pursue a Zoning Text Amendment. Zoning Map Amendment to rezone from Agricultural Preserve District to CTHR (Cove Townhouse Residential District for a Townhouse Development (Sundance Stillwater) - Ordinance 1st Reading Mr. Gutknecht explained the case. The City received an application from Timberland Partners for a Zoning Map Amendment, Preliminary Plat, and Final Plat to facilitate the City Council Meeting November 8, 2023 development of a 179-unit townhome development at the southeast intersection of Manning Avenue and 80th St N (also connects to Boutwell Road N). The City Council reviewed an earlier concept of this plan in the spring and summer of 2023. Council noted concern with the original concept as it did not conform to all requirements in an existing available medium density zoning district, nor did it meet required building setbacks to public roadways. The applicant has submitted an updated proposal that appears to be consistent with an existing medium density zoning district, indicates compliance with required setback requirements, has increased the net developable area by 5.31 acres with inclusion of an additional lot, increased the number of physical buildings from 14 to 17, but has decreased overall density from 10.82 units per acre to 7.95 units per acre. At tonight's meeting the City Council will only be acting on the Zoning Map Amendment request. The Preliminary and Final Plat action will be taken at the same time as the Zoning Map Amendment's second reading. The Planning Commission held a public hearing and recommends approval of the Zoning Map Amendment, the Preliminary and Final Plat. The Planning Commission's approval was for the updated Preliminary Plat, showing two site access points on Boutwell Road/80th Street. Based on guidance of the Comprehensive Plan, staff finds it appropriate to approve the request as presented. Councilmember Junker asked about private versus public streets in this development; and Mr. Gutknecht replied they will be public roads. Councilmember Odebrecht noted the roads are narrow and asked if Public Safety is comfortable with this plan; and Fire Chief Glaser replied Public Safety staff were involved in plan review and the roads meet the requirements of City Code. Councilmember Polehna pointed out the Ag Preserve classification is only a holding zoning district intended to hold land for future development as determined by the City. Motion by Councilmember Polehna, seconded by Councilmember Junker, to approve first reading of an Ordinance Amending Chapter 31, Article 3, Section 31-311, of the City Code of the City of Stillwater Regarding Cove Townhouse Residential Zoning. All in favor. COUNCIL REQUEST ITEMS Mayor Kozlowski noted Councilmember Polehna will be receiving an award for his commitment to servicemembers at the Lake Elmo Prayer Breakfast November 9. ADJOURNMENT Motion by Councilmember Junker, seconded by Councilmember Collins, to adjourn. All in favor. The meeting was adjourned at 7:54 p.m. ATTEST: Joseph Kohlmann, Acting City Clerk Ted Kozlowski, ayor Page 7 of 8 City Council Meeting November 8, 2023 Page 8 of 8 Resolution 2023‐149, Resolution and Order to Raze and Remove the Hazardous Structures Located at 1309 3rd Street South Resolution 2023‐150, Resolution Adopting the 2023 Washington County All-Hazard Mitigation Plan Resolution 2023‐151, Adopting Deferred Assessment for 2023 Street Improvement Project (Project 2023-02, L.I. 436.2) Resolution 2023‐152, Approving Employer Paid COVID-19 Leave for 2024 Resolution 2023‐153, Resolution Amending Resolution 2022-172 to Establish Merchant Credit Card Processing Fee Resolution 2023‐154, Resolution Authorizing Easement Acquisition for the Installation of Utilities in the Northeast Corner of the Intersection of Manning Avenue North and State Highway 36 in Stillwater, Minnesota Resolution 2023‐155, Resolution Authorizing the Pursuit of 2023 Local Road Improvement Program Funding for the Myrtle Street Reconstruction Project Resolution 2023‐156, Approving Issuance of New Therapeutic Massage Business Licenses and Individual Massage Therapist Licenses Resolution 2023‐157, Resolution Authorizing the Imposition of a Service Charge to the Stillwater Special Service District Ordinance 1207, an Ordinance Enacting Stillwater City Code Chapter 56, Section 6 - Special Service District