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HomeMy WebLinkAbout2024-11-06 CC MIN 216 4th Street N, Stillwater, MN 55082 651-430-8800 www.stillwatermn.gov CITY COUNCIL MEETING MINUTES November 6, 2024 WORKSHOP MEETING 4:30 P.M. Mayor Kozlowski called the meeting to order at 4:34 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna Absent: None Staff present: City Administrator Kohlmann City Attorney Land City Clerk Wolf Interim Community Development Director Gutknecht Finance Director Provos Fire Chief Glaser Human Resources Manager Kroells Library Director Troendle Police Chief Mueller Public Works Director Sanders OTHER BUSINESS Downtown Parking Master Sign Plan Lance Bernard, TC2, gave a brief overview of the proposed Master Sign Plan and two options for signage design. He noted that the Downtown Parking Commission discussed the Plan and concluded that the proposed signs should be simple and consistent with existing signs. The next step will be to design plans that staff can use to produce the signs in-house. He briefed the Council on recommendations for gateway signs, additional pay stations, pay zones, directional signage and on-street regulatory signs. Mayor Kozlowski asked if any of the proposed guidelines will prevent adding flexibility to the parking strategy, for instance certain days free, and Mr. Bernard replied no, this is more about placement of signs throughout the downtown. Councilmember Junker noted year-round parking has just reached the one-year mark and the Downtown Parking Commission will need to analyze the financial impacts. Motion by Councilmember Collins, seconded by Councilmember Junker, to adopt the guidelines and strategies of the Downtown Parking Master Sign Plan. All in favor. Lakeview Hospital Concept Plan Review Mr. Gutknecht led an informal review of HealthPartners’ Concept Plan to develop a new Lakeview Hospital Campus at Manning Avenue and 62nd Street North, a 64.04-acre site adjacent to State Highway 36. Plans include a 400,000-square-foot facility with a 104-foot tower, 935 parking stalls, sustainable landscaping, trails and open spaces. Access points are proposed at Manning Avenue and 62nd Street North with a realignment of 62nd Street City Council Meeting November 6, 2024 Page 2 of 8 North to improve neighborhood connectivity. The applicant proposes construction begin in the second quarter of 2025. The Comprehensive Plan designates this area as a Research and Development Park, and a Zoning Amendment is required to proceed. The City has proactively acquired easements for water and sewer connections to serve both the proposed Lakeview site and the Central Commons development. Mr. Gutknecht summarized the primary staff concerns related to Curve Crest Boulevard connection, access, circulation, and traffic safety: 1. The proposed site access from Manning Avenue North and the realignment of 62nd Street North is inadequate and does not meet goals outlined by previous studies and the 2040 Comprehensive Plan. Additionally, the proposal does not appear consistent with adopted Fire Code requirements for access. 2. The Fire Department also noted that the proposed internal traffic calming measures do not appear compliant with Fire Code and either need to be removed or updated to ensure adequate width and turning radius. 3. From a zoning perspective, he stated that the proposed design appears to have a total height of 124 ’(from garden level) and 104 ’from front elevation grade, which is higher than the allowed 3 stories in the PA district. However, with a Planned Unit Development, there can be flexibility for height. Staff recommends the applicant consider height transition strategies, or a step-back of the façade if the building is adjacent to lower- density residential areas, to ensure compatibility. 4. The proposed 935 parking spaces may be sufficient, but per the parking regulations, the City will need to know how many beds and employees will be working on the busiest shift to determine if the parking is adequate or if there are too many parking spaces. Staff suggests exploring an alternative location for the parking garage further back at a lower elevation, due to the topography and proximity to the Highway 36 right-of-way. Councilmember Polehna stated he would like to make sure the public knows that the existing zoning, Agricultural Preserve, is simply a holding zone for annexed property so it is not seen as doing away with farmland. Mr. Gutknecht added that the underlying land use for that area, according to the Comprehensive Plan, is Research and Development. Councilmember Junker commented that a major goal of the Comprehensive Plan has for many years been the connection of Curve Crest to 62nd or Manning at the time of construction, not later. Brandi Lunneborg, President of Lakeview Hospital and HealthPartners, highlighted the history of Lakeview’s partnership with the community. She gave a presentation on the types of care that will be provided based on Lakeview’s regional strategy. She stated the new hospital will be licensed for 97 beds plus a 20-bed observation unit. Groundbreaking is planned for 2025 with grand opening in late 2027. The hospital today is at max capacity and needs costly infrastructure improvements. Trevor Gruys, Principal Civil Engineer, Loucks, reviewed design concepts. He stated 35% of the 64 acres is restricted for development and the buildable area is about 42 acres. They do not want to mitigate or damage the existing wetlands and will observe the shoreland overlay City Council Meeting November 6, 2024 Page 3 of 8 district for Long Lake of about 1000-foot buffer, making this part of the site design. Existing trail connections and tree stands will be used as natural buffers. Public administration as a guiding zoning district makes the most sense. They are leveraging the topography to create a walkout garden level; the 104-foot height is very important. The number of parking stalls will be fine-tuned. They will try to disperse the amount and type of stormwater management facilities that are used, and will use vegetation and rain gardens. The future traffic signal at 62nd and Manning will be a huge benefit to the campus and the neighborhood. Based on their traffic study, they feel the intersection improvements will be adequate to handle the traffic volumes. Alan Kranzo, VP of Real Estate, Planning and Construction for HealthPartners, discussed the design concept. He stated the six-floor design is necessary 1) to make it easy for patients, visitors and colleagues to access the site, 2) to provide one clear entry point rather than many, and 3) to provide vertical circulation within the building for people to get from floor to floor. An “internal Main Street” allows families and patients to get another service without leaving the building. Vertical stacking is the most efficient way to provide fast access between types of services. He also noted it is important to explore what type of redevelopment options exist for the current campus. Ms. Lunneborg added that they plan to continue using the Curve Crest location long term. Engagement in the community will be important. There will be an open house at The Lakes November 19. They anticipate adding 250-300 jobs within the first five years. Mayor Kozlowski voiced Council consensus that the project is compatible with the surrounding area but stated that he would need to see a scale model of the building before giving feedback on site layout, and that access from Curve Crest will be imperative. Mr. Kranzo responded the hospital team wants to meet the City’s needs but view it as a collaborative effort because they must be cost-conscious. Public Works Director Sanders noted that Washington County will have input on the intersection of 62nd. He will provide the applicant insight on what the City envisions for Curve Crest. Ms. Lunneborg asked if there are funding mechanisms if there are substantial site costs, and Mayor Kozlowski answered the City does not typically build developers’ roads. Mr. Kranzo remarked that a road is one aspect; if the City is talking about extending public utilities, that cost becomes exponential. Mayor Kozlowski, Councilmembers Junker and Polehna noted the City has long planned to run sewer and water from Curve Crest and the south, not from the north side. Ms. Lunneborg pointed out that since the hospital’s original plans, economic conditions have changed significantly and some of what was talked about then would have cost a fraction of it would cost today with the hospital’s expanded scope of making this a regional hub and not having other facilities on site to pass costs on to. Mr. Kranzo reiterated as a nonprofit, they must be cost conscious and not add unnecessary layers of design. Mayor Kozlowski stated the City is not going to be collecting property taxes either so it cannot just absorb the cost of infrastructure. City Council Meeting November 6, 2024 Page 4 of 8 Councilmember Junker remarked this is not additional cost for anybody, this is what was planned originally, to run Curve Crest through there. The City can’t fund the whole road or the whole water and sewer cost. To have just one access off of Manning is not in the City’s scope at all. The additional road connection must be done at time of development. Mr. Gutknecht summarized that the Council needs a better idea of scale and mass of building, and staff will work with the applicants to clarify what is required for engineering, fire and safety standards, and work with the applicant on cost measures and revisiting the alignment of 62nd. Cannabis Businesses/Uses City Attorney Land stated that the Planning Commission discussed the proposed zoning ordinance amendments, held a public hearing and recommended approval of the ordinance amendments with several suggestions which she summarized for the Council. She reviewed the zoning districts of the cannabis uses and buffer zones to confirm the Council concurs with the Planning Commission recommendations. Because these are zoning restrictions, an applicant may always request a variance. She reviewed City code amendments. A first reading is expected at the next meeting, and second reading in December. STAFF REPORTS Public Works Director Sanders noted that the Local Option Sales Tax referendum passed which will give the City $6.2 million to finish the riverbank projects. He informed the Council of a speed limit increase on Highway 36 and status of the street project and downtown lighting project. He stated last week’s Public Works open house went well. Police Chief Mueller updated the Council on personnel, Emergency Management training, and the election which had no problems. Eight officers will participate in the Presidential Inauguration. Library Director Troendle stated there will be a book collection drive November 9, a book sale November 13-16, and the terrace roof project is finished. Human Resources Director Kroells reminded the Council of open enrollment, the 2024 wellness calendar, and performance review system transition. Fire Chief Glaser reported the passing of retired firefighter Leonard Schrade, and provided a staff update. Finance Director Provos gave an update on collection of assessments. Interim Community Development Director Gutknecht stated there was a tour of the Manitou building last week. City Clerk Wolf reported on the mattress collection, board and commission openings, and reminded the Council of the canvas meeting November 12. City Attorney Land gave an update on property-related litigation. City Administrator Kohlmann stated the Council will discuss designation of a Social District at the next meeting. Legislative topics and budget adoption are scheduled for December 3. City Council Meeting November 6, 2024 Page 5 of 8 RECESS Mayor Kozlowski recessed the meeting at 6:52 p.m. REGULAR MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:04 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna Absent: None Staff present: City Administrator Kohlmann City Attorney Land City Clerk Wolf Interim Community Development Director Gutknecht Finance Director Provos Fire Chief Glaser Human Resources Manager Kroells 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 2024 Heritage Preservation Awards Heritage Preservation Commission Chair Matt Thueson explained the history of heritage preservation efforts in Stillwater. He presented the HPC awards for projects at 512 5th Street North (residential remodeling), 205 Walnut Street East (accessory dwelling unit), 101 Pine Street West (Washington County Historic Courthouse rehabilitation), 602 Main Street North (Warden’s House Museum front porch replacement); and recognized Stillwater architect and artist Michael McGuire, 1928-2024 for all his contributions to Stillwater. Honorable Mentions were: The Good Egg food truck, 809 5th Street North, and Manitou Fund Education & Arts Center. OPEN FORUM Brian Carlson, River Siren Brewing Company, requested that the Council allow THC on-sale low-dose consumption in the Central Business District. He explained how the brewery will produce safe, regulated THC beverages for patrons’ consumption. CONSENT AGENDA October 15, 2024 Regular Meeting Minutes Payment of Bills 2025 Street Improvement Project Survey Agreement Amendment Bridgeview Park Courtesy Docks Project Consulting Services Agreement Charter Amendment for Section 15.11 – Ordinance 1st Reading City Council Meeting November 6, 2024 Page 6 of 8 Curve Crest Blvd Utility Extension Project Approve Plans and Advertise for Bids - Resolution 2024‐126 Grant Applications for the Dutchtown Designation Study Project Hotel License for 402 Main St. S. Police Department Purchase Request for Camera System and License Plate Reader Rescind By-laws for Human Rights Commission and Downtown Parking Commission – Resolution 2024‐127 Short Term Home Rental License for 224 Main St S Short Term Home Rental License for 302 Main St S Stormwater Management Facilities Agreement and Access Easement for Mister Carwash Third Amendment to Resolution and Order to Repair Structure at 1309 3rd St S – Resolution 2024‐128 Washington County ARPA Funds Agreement Amendment Water Systems Study and PFAS Water Treatment Plant Facility Plan City Code Amendments for Assessment of Waste Disposal Fees and Abatements of Public Nuisance - 2 Ordinances 1st Reading Motion by Councilmember Junker, seconded by Councilmember Polehna, to adopt the Consent Agenda. All in favor. PUBLIC HEARINGS Assessment of Service Charge to Businesses Located within the Special Service District in Downtown Stillwater Public Works Director Sanders explained that business property owners located in the newly established Special Service District in downtown Stillwater are assessed a service charge to help pay for certain City services to enhance, improve and beautify the District. The estimated cost of the services is $50,500 annually, which is $500 per commercial building within the District (101 parcels). He reviewed 2024 District initiatives that were done or being done as a result of the service charge. Every year the City must hold a public hearing to determine whether to continue the service charge. Staff recommends that Council adopt the proposed assessment of $500 for a service charge to businesses located within the Special Service District. Mayor Kozlowski opened the public hearing. Larry O’Connor, 212 Commercial Street, stated he opposed the service charge. He feels that property taxes should cover all the initiatives and his building does not benefit. His wife and business co-owner asked what would stop the City from doubling the charge next year. Councilmember Junker stated that every business benefits because every building is part of the look of downtown Stillwater. The service charge was a result of a simple majority of downtown business owners who came to the City asking for the services. Brian Carlson, River Siren Brewing Company, stated he was one of the business owners who voted for this assessment. He agreed that keeping the Central Business District clean and safe is better for all businesses. Mayor Kozlowski closed the public hearing. City Council Meeting November 6, 2024 Page 7 of 8 Motion by Councilmember Junker, seconded by Councilmember Odebrecht, to adopt Resolution 2024-129, Adopting Assessment of Service Charges to the Special Service District, L.I. 440. All in favor. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS Chapel Hill Flats Zoning Approval Extension Request Interim Community Development Director Gutknecht stated that Landucci Construction has requested an extension to their Zoning Approval expiration date for Chapel Hill Flats, a 2- story 21-unit market-rate apartment building proposed for vacant property located at the northeast corner of 3rd Street North and Myrtle Street. The planning approvals were to expire 24 months after the approval date unless the action permitted has been completed. The original project approval was granted on October 4, 2022 and expired on October 4, 2024 (deadline for project completion). No alternative timeframes were specified as a condition of approval. On June 18, 2024, the applicant requested, and was denied, a two- year extension from the original expiration date. The applicant has renewed his request for an extension. City staff has already completed plan review for the Building Permit, but the developer did not pay the Plan Review Fee. Mayor Kozlowski commented if the Council granted a 45-day extension, the applicant could pull the building permit and the project would not have to go through the Planning Commission, Heritage Preservation Commission and staff review again. Nathan Landucci, applicant, explained there was a communication gap between him and previous Community Development Director Gladhill. He thought he could apply for the building permit until the end of October, until Mr. Gutknecht informed him on October 11 that the approval had expired October 4. He added that he has a financial partner for the project and was set to close October 31. Councilmember Junker noted Mr. Landucci’s project has been proposed since May 2021 so why couldn’t it be financed without this partner? Mr. Landucci replied there were issues with interest rates, and a question of whether he should do the project or not do it. It’s hard to build a new apartment building these days. Motion by Councilmember Junker, seconded by Councilmember Collins, to deny the request by Chapel Hill Flats for a zoning approval extension. Motion passed 4-1 with Mayor Kozlowski voting nay. COUNCIL REQUEST ITEMS There were no Council request items. ADJOURNMENT Motion by Councilmember Collins, seconded by Councilmember Polehna, to adjourn. All in favor. The meeting was adjourned at 8:23 p.m. City Council Meeting November 6, 2024 Ted Kozlowski, Mayor ATTEST: Beth Wolf, City Cl Resolution 2024-126,Approve Plans &Specifications and Ordering Advertisement for Bids for the Curve Crest Boulevard Utility Extension Project (Project 2023- 11) Resolution 2024-127, Rescinding Resolution 2017-175 Approving Human Rights Commission By-Laws and Resolution 2018-204 Rescinding Resolutions 2017- 096, 2009-95, 2008-36 and Amend Resolution 92-249 Establishing Downtown Parking Commission and By-Laws Resolution 2024-128, Third Amendment to Resolution and Order to Raze and Remove the Hazardous Structures Located at 1309 3rd Street South Resolution 2024-129,Adopting Assessment of Service Charges to the Special Service District, L.I. 440 Page 8 of 8