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HomeMy WebLinkAbout2016-04-05 CC MIN .11Water IMF MIATNALAGE OF MINNESOTA CITY COUNCIL MINUTES April 5,2016 REGULAR MEETING 4:30 P.M. Mayor Kozlowski called the meeting to order at 4:30 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna Absent: None Staff present: City Administrator McCarty City Attorney Magnuson Community Development Director Turnblad Public Works Director Sanders Police Chief Gannaway Fire Chief Glaser Deputy Chief Ballis City Clerk Ward Engineering/Public Works Secretary Wolf PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Council Service Award - Christie Rosckes Councilmember Polehna presented Christie Rosckes an award honoring Discover Stillwater for being named Best Small CVB in Minnesota. CVB President Jerry Helmberger and Ms. Rosckes thanked the Council. OTHER BUSINESS Valley Friendship art installation proposal and request for pedestrian plaza restroom Community Development Director Turnblad reported that the Valley Friendship Club has partnered with local artists Jimmy Longoria and his wife Connie Fullmer to propose a collaborative community art project for installation on the City's pedestrian plaza. When completed the fabric panels would be installed into the east facing recessed panels designed for this purpose on the restroom building. If the Council approves the concept,the Valley Friendship Club would seek a grant from the St Croix Valley Foundation. If awarded the grant,Longoria and Fullmer would return to the Council with project details for formal approval. Staff recommends concept approval. Kristin Klemetsrud and Susan Kane of Valley Friendship Club explained the concept. Motion by Councilmember Polehna, seconded by Councilmember Junker, to approve the concept of art installation on the pedestrian plaza restroom. All in favor. City Council Meeting April 5, 2016 Possible approval of St Croix Boat& Packet plan to separate parking from trail south of their ticket office Public Works Director Sanders reminded the Council that at the last council meeting, a proposal was presented to have the owner of St. Croix Boat and Packet construct a retaining wall and install a paved driving surface on property that is City owned and leased to St. Croix Boat and Packet. The proposed plan is to install a retaining wall into the slope south of the Boat and Packet office, increase the gravel parking area by three to four feet and install an eight foot asphalt drive for vehicles. The new asphalt surface would be adjacent to the new trail but delineated with paint. When the time arises for the improvement of the park, it could be determined whether the proposed work could remain or be replaced. Staff would be involved with the oversight, tree removal, construction of the wall and the paved surface. Staff recommends approval. Councilmember Junker applauded St. Croix Boat and Packet for their willingness to do the project, but voiced objections to using versa lock material for the wall; he would like to see a more aesthetically attractive material such as limestone. Public Works Director Sanders pointed out that the bigger block that is used, the more it would disturb the slope and the higher the wall would have to be constructed. Councilmember Polehna agreed that he would also like to see a more aesthetically pleasing material used. Councilmember Weidner expressed safety concerns about having the driving lane next to the walking path, suggesting that the two uses should be better delineated from each other, for instance by using gravel for the parking and driving areas. Police Chief Gannaway confirmed the area is congested, especially in peak boating season; he agreed that better delineation of the trail would be preferable. Councilmember Menikheim asked if the City cost-share for a more attractive wall; consensus was generally that without knowing the cost difference, it would be hard to commit to cost-sharing. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to approve the project using more attractive materials for the retaining wall and a gravel parking surface. All in favor. STAFF REPORTS Deputy Chief Ballis presented the Annual Fire Department Report. He summarized the department's 2015 activities and recognized long-time staff members. Community Development Director Turnblad reviewed the Downtown Plan project schedule,with Phase Ito begin next week. City Administrator McCarty reminded the Council of the League of Minnesota Cities conference in June. Mayor Kozlowski recessed the meeting at 5:28 p.m. RECESSED MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:00 p.m. Page 2 of 14 City Council Meeting April 5, 2016 Present: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna Absent: None Staff present: City Administrator McCarty City Attorney Magnuson Community Development Director Turnblad Public Works Director Sanders Police Chief Gannaway Fire Chief Glaser Deputy Chief Ballis City Clerk Ward Engineering/Public Works Secretary Wolf PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of March 22, 2016 regular meeting minutes Motion by Councilmember Weidner, seconded by Councilmember Polehna, to approve the March 22, 2016 regular meeting minutes. All in favor. OPEN FORUM There were no public comments. CONSENT AGENDA Resolution 2016-073, directing payment of bills Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt the Consent Agenda. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna Nays: None PUBLIC HEARINGS Case 2016-13. A public hearing to consider a request by Brian Farrell for consideration of a concept Planned Unit Development,Zoning Text and Zoning Map Amendments for Northland Senior Living, a proposed 50 acre, multi-use Senior Care Living Facility to be located at 12525 75th Street North, currently located in the LR and AP Zoning Districts (continued from March 22, 2016 meeting) City Planner Wittman provided background on the proposal. She stated that at the last regularly- scheduled City Council meeting, the Council continued the public hearing. The Planning Commission recommends conditional approval of the concept Planned Unit Development, ZAT, and ZAM. Staff recommends confirming the Planning Commission findings and Page 3 of 14 City Council Meeting April 5, 2016 recommendations, adopting the associated Resolution and approving the first reading of the Ordinances. At the request of Mayor Kozlowski, Ms. Wittman explained that at issue tonight are the concept PUD, which does not require a public hearing; a zoning text amendment and zoning map amendment, which are the subjects of tonight's public hearing. There will be at least one more public hearing at the time of final PUD when the final plat is submitted. Asked by Councilmember Weidner, Ms. Wittman stated the site is the only parcel in the LR district that is of sufficient size to allow for a senior housing facility in the comprehensive plan. There are a couple of undeveloped properties near Long Lake that could be proposed in the future but they are not of this size. The LR zoning district is the only district in the City that allows for senior care living facilities. Darren Lazan, Landform Professional Services, representing the applicant, gave a presentation describing the proposal. He summarized the three requests at issue tonight. He introduced Northland Real Estate Group and owner Brian Farrell,Landform Professional Services firm,Pope Architects, Welsh Construction, and Ebenezer. Susan Farr,Vice President of Ebenezer, explained the philosophy of Ebenezer.They want to make the project unique and are very open to hearing what community members want. Mr. Lazan addressed the market demand for senior housing in Stillwater. He recapped the history of previous plans for the parcel. He reviewed the benefits of the 52-acre site for the proposed facility and stated that roughly 16 acres or 1/3 will be used for building, with development to be concentrated on the far northern part of the site,preserving the rest as a natural amenity. A variety of types of care is proposed. 100 stalls of underground heated parking is included; they are proposing to share parking with Grace Baptist Church. Access would be from the north; no improvements to 72nd Street are proposed. He stated that a three-story building is proposed. A small portion of the building on the east face is proposed to be four stories for walk-out units. The church is part of the campus plan with the potential for future church expansion to 8,000 square feet. A public trail connection going south to 72nd Street is planned. No public boat access is proposed. They would create a conservancy easement over the western slope of the site on each side of the trail to prevent further development. Tree impacts would be fairly minimal. Mr. Lazan provided sight line studies showing what neighbors will see. The height flexibility is needed to get a sloped roof;otherwise it would be a flat roof,which they feel is not conducive to a residential area. He also explained plans for utility connections to the site. Mayor Kozlowski re-opened the public hearing on the Zoning Text and Map Amendments. Tara Gilbertson Serle, 800 Nightingale Boulevard, expressed concern about environmental impacts especially runoff, the discharge of water north to the Brown's Creek Watershed, the migratory bird nesting areas around the lake, light pollution, and traffic impacts. She urged the Council to require an environmental impact study. Mayor Kozlowski emphasized that tonight's approvals do not approve the project. Dionne Meisterling, 12550 72nd Street North, stated she is opposed to the project due to height and density. She noted the structures will extend over the treetops with little or no screening. She objected to the classification as residential housing, saying it is a commercial business, not residential, whose residents will be staring into her home and backyard. She asked the Council to limit the height and density of the development. Page 4 of 14 City Council Meeting April 5, 2016 Philip Manger, 12525 72nd Street North, spoke in opposition, saying the development is too big, too dense, and comes too close to Long Lake. It will destroy the beauty of the area and decrease home values. It is in opposition to the 2030 comprehensive plan calling for low density residential in the area. He requested the Council deny the development. Brian Klemenhagen, 3174 Summer Fields Green, stated he feels it is a poor concept, and the process has broad implications for rezoning that affect the entire community. He feels the project is excessive in its magnitude. Carrie Koelzer, 3180 Summer Fields Green, characterized the approval process as underhanded and not above board because she understands that fewer than five neighbors were notified about it due to a property distance technicality. She is opposed to the massive height and size of the project. She urged the Council to hold community-wide discussion on the proposed amendments. Chris Koelzer, 3180 Summer Fields Green, stated they are not opposed to development on the property but object to the project's height and density. He feels property values would decrease and City standards would be lowered. He asked the Council to require the developers to modify the proposal. Nolan Barrios,444 Harvest Green,objected to the proposal. He feels the approval process appears to be well underway. He asked why the earlier projects did not move forward, why this project is being proposed now, why it is so big, why developers are not considering other sites, what the current census says about Stillwater demographics, how these data points impact zoning decisions, and what the City Planner's role is regarding future zoning needs. He questioned why the City Planner and Councilmembers did not recognize the need for senior housing four years ago when the previous project was being planned. Carl Blondin, 617 Sunrise Avenue, expressed concerns about traffic and whether the facility will be affordable for Stillwater people. He feels that if the project proceeds, the three lots zoned for parks and open space should be deeded over to the City for parks so the next owner of the facility may not change their mind and block the property off from the public. Fritz Knaak, lawyer representing property owners on Long Lake, offered that it is never easier for a Council to say no than at this point in the proceeding. He sees the rezoning from Agricultural Preserve to high density housing as a radical change. The comprehensive plan calls for lower density residential housing. Residents are entitled to the protection of Ag Preserve zoning and if the City intended it as a holding zone it should have been named something that does not have legal meaning. Mr. Knaak noted there are other, smaller types of senior living housing popping up all over. Jim Wolfe Wood, 220 Pineridge Lane, stated that the proposed zoning change is unwise as it could result in a drastic change in use for the property before adequate public view and comment. He objected to the suggestion that the former Jackson Wildlife Management property had been managed well in private hands. He echoed concerns about Brown's Creek wildlife, and asked that the Council give residents more time to review the project before they give up their leverage of a zoning change that he feels is premature and has not had adequate review. Melissa Klemenhagen, 3174 Summer Fields Green, stated she does not oppose a senior housing development being placed on the land. She is opposed to the size and density of the proposed facility. It is a business that brings many employees, pollution, traffic and noise. She asked the Council to reject the amendments. Page 5 of 14 City Council Meeting April 5, 2016 Todd Remely, president of the Liberty on the Lake Home Owners Association, told the Council the association members he spoke with are generally supportive of senior housing but have many concerns, particularly about the scope and height of the project being too large for the site. He stated many feel that project approval is a foregone conclusion. He urged Councilmembers to walk the land, consider feedback and review the developer's pro forma income statements before voting on the zoning text amendment. He feels that there is a belief that approving the zoning so early in the project reduces the City's leverage. Rob MacSwain, 203 Northland Avenue, commented that the previous plan for 100 units was one that the community could accept, but the current project is too large and ignores the preservation area. He asked that the Council take more time to think about the project and find a way to make it better fit the environment. Mayor Kozlowski closed the public hearing. City Attorney David Magnuson provided history on the AP designation, stating that in the 1970s it was common in Stillwater and other communities that any property that was annexed into a City was zoned agricultural and therefore would have to be rezoned. In 1996 the ordinance was amended to provide for Liberty, Legends and Millbrook, so that what was called Agricultural under old zoning was then called Agricultural Preserve,but the concept was the same, so the City was not stuck with the zoning that it came in with. He further stated that AP is not the state designation, but rather, a holding zone. The confusion stems from the fact that it has the same name, AP. Councilmember Junker asked if the rezoning is approved to go from AP to LR, does the zoning stay with the development, or if the project does not proceed, would the zoning go back to AP. City Planner Wittman responded that staff recommends, as a condition of approval, that the zoning map amendments would not be effective until the final PUD and plat are approved. Mayor Kozlowski asked if it is typical to do these kinds of amendments at the conceptual stage of a project. Ms. Wittman replied that the Council is voting on a concept approval. The developer could not move forward without knowing whether there would be conceptual approval of the PUD and the zoning amendments, because the zoning text amendment would allow for the needed flexibility in the density and height of senior care living projects when in a PUD. Under present zoning,any development would be limited to two units per acre,two and a half stories, and 35 feet. On a question by Mayor Kozlowski about the comments referring to the comprehensive plan,Ms. Wittman responded that the City's future land use map identifies future densities throughout the entire City. The LR district, which is one of the low density residential districts, allows for senior care living facilities. Councilmember Polehna referred to previous comments suggesting the development take place instead at Highway 36 and Manning. Ms. Wittman stated that parcel is private property and not under consideration. She continued by stating that the proposal is market-driven and not a City-initiated development. The corner of Manning and 36 is zoned campus research development, a zone that is desirable for more high density, commercial uses. Mayor Kozlowski concurred that the City did not seek out the development or developers. Page 6 of 14 City Council Meeting April 5, 2016 City Planner Wittman reviewed the Council's options for a vote. The PUD permit is what allows for flexibility with the zoning code, such as looking at relationships between buildings, parking requirements and so on. If the concept PUD is not approved, developers would have to come back with a development application that meets all existing zoning regulations. City Attorney Magnuson pointed out that if the text amendment is passed and it is rezoned to LR, a developer would need to get variances, through establishing practical difficulty, for density and height. If it is part of the PUD process, there's a presumption of validity that would follow a variance regarding height. The PUD allows for the additional height without a variance. Councilmember Weidner stated he would like to see the building restricted to 35 feet. He feels this type of land use was anticipated for that property when the prior Council added senior housing to the ordinance. He continued by stating that he was on the planning commission when the concept of Liberty on the Lake was brought before the City and it also was not without controversy. Many neighbors felt it should never be built and now that beautiful land has turned into homes. He told the residents their home sites were trees and pastures at one point as well. Development of this area was anticipated long ago when the township and the City came to an agreement that this would all be developed. The City is trying to plan the community in a respectful way. Councilmember Polehna stated he understands the City needs senior housing but he also walked the property and feels it would be too dense from the perspective of existing residents. It would change the character of the neighborhood. He also understands that Mr. McKenzie has a right to sell or develop his property. Motion by Mayor Kozlowski to approve the concept Planned Unit Development for Croix Bay with the 30 conditions recommended by the Planning Commission,and to table the zoning text amendment and zoning map amendment. Community Development Director Turnblad pointed out that the vote should be done in two motions. Since application was made for the text amendment and rezoning, the Council has to come to a decision within 120 days unless the developer withdraws the application himself. City Attorney Magnuson stated it can be extended another 60 days for a total of 120 days. The extension of the 60 days must be in writing. Mayor Kozlowski rescinded his motion. Motion by Councilmember Polehna, seconded by Councilmember Junker, to deny first reading of an ordinance amending the Stillwater City Code Section 31-300 entitled Establishment of Districts by rezoning approximately thirty-eight acres from AP - Agricultural Preservation; and to deny first reading of an ordinance amending the Stillwater City Code Section 31-210, Planned Unit Development Permit. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna Nays: None Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt Resolution 2016-074, approving a concept Planned Unit Development for Croix Bay, Case No. 2016-13. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna Nays: None Page 7 of 14 City Council Meeting April 5, 2016 UNFINISHED BUSINESS Consideration of preparation of a Designation Study of the residential structure located at 816 4th St South(continued from January 19,2016 meeting)-Request by Rodney DeReu to demolish the house City Planner Wittman stated that at the January 19 regular meeting,the Council received a request for the preparation of a designation study for the structure located at 816 4th Street South. The Council continued the consideration of the designation study preparation for 90 days and advised the property owner to actively market the property for sale. The owner has retained an Edina Realty agent and posted a 'for sale' sign on the property, but the property has not been listed on the MLS nor on the Edina Realty website. At the direction of the Heritage Preservation Commission, and per the process outlined in the Demolition Ordinance, staff is requesting the Council's authorization to prepare a designation study for the house, determined to be a Historic Resource by the Heritage Preservation Commission. The son in law of Rodney and Mary DeReu, property owners, told the Council the DeReus plan to move forward and sign the realty papers to sell the house. He asked who bears the cost of the designation study, a cost of about$5,000. City Planner Wittman explained it would be the responsibility of the property owner. Staff recommends to the Council that after 60 days if the house is not sold,the demolition permit would automatically be approved as long as the two properties are tied together before demolition takes place. Brenda DeReu, daughter of the property owners, stated they would like to move forward with demolition. The top offer has been $16,000. The value of the land is $70,000 and tax value is $113,000. Councilmember Weidner stated before proceeding with demolition,he would like to see property owners try to actively sell the property. Councilmember Menikheim countered that he does not favor extending it 60 days and have gone through 90 days of having it offered up for sale. He would prefer a motion to allow demolition to happen so they can get on with their life. He feels there is a weakness in the demolition ordinance which puts citizens in a difficult position. The City needs to preserve its old housing stock, but not at all costs. Mayor Kozlowski shared that one of his concerns is if the two properties are joined,there will be a gaping hole on the block. He would like to exhaust all possibilities of selling the property. Councilmember Junker pointed out the lot is long and narrow and shares a commercial driveway with the lot next door. Brenda DeReu commented there has been a for sale sign on the house. The expense to remodel the house and make it livable again would not be worth it. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to extend 60 days to actively market the house on MLS and if not sold, then to issue the demolition permit with the condition that prior to issuance of the demolition permit, the two lots are combined into one. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Weidner, Polehna Nays: Councilmember Junker Page 8 of 14 City Council Meeting April 5, 2016 Possible approval of second reading_of Ordinance 1085, an ordinance amending the Stillwater Zoning Map by rezoning approximately eight acres from AP—Agricultural Preservation (Richlind) Motion by Councilmember Polehna, seconded by Councilmember Junker,to approve second reading of Ordinance 1085, an ordinance amending the Stillwater Zoning Map by rezoning approximately eight acres from AP—Agricultural Preservation. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Polehna Nays: Councilmember Weidner Possible approval of second reading of Ordinance 1086, an ordinance extending the corporate limits of Stillwater into certain unincorporated territory that is completely surrounded by the City of Stillwater(Stillwater Country Club) Motion by Councilmember Junker, seconded by Councilmember Menikheim, to approve second reading of Ordinance 1086, an ordinance extending the corporate limits of Stillwater into certain unincorporated territory that is completely surrounded by the City of Stillwater. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna Nays: None NEW BUSINESS Possible approval of Zephyr Theatre request for a variance from Downtown Height Overlay District standards City Planner Wittman summarized that Only a Dim Image Productions is proposing adding onto the Zephyr Depot building and renovating the structure into a 332 seat stage theatre and bakery/coffee shop. The Planning Commission approved the following: 1) a 15' variance to the 15' Front Yard Setback; and 2) a 20' variance to the 20' Rear Yard Setback; and 3) a 4.7% variance to the 80% maximum impervious surface coverage. The Planning Commission found the proposed 13' height variance was not in keeping with the purpose and intent of the CBD Height Overlay district and recommended denial of the height variance. Since the Planning Commission's recommendation, the applicant has determined they may be able to get the height variance down to 7.3', from the 13' variance originally requested. The Heritage Preservation Commission on a 5-1 vote approved the Design Permit, leaving only the height variance to be acted upon by the Council. Staff recommends approval of the 13' variance to the 37' maximum height. Calyssa Hall. artistic director of Zephyr Theatre, gave an overview of the proposed theatre productions and professional goals for the theatre. Franz Hall, applicant, explained why they felt the site is appropriate. He provided a presentation on the proposed building renovation, floor plan, and needed fly loft space. He stated they plan to have six productions per year with five performances per week. There would be an anticipated 40,000 guests per year. They also would host national and local music and dance groups, and include a bakery to service the theatre which also would be open to the public in the mornings. He recapped the issues the Planning Commission had with the plan: 1) the building size and massing;2)the height variance.After the Planning Commission meeting,he met with the architect Page 9 of 14 City Council Meeting April 5, 2016 to try to reduce the massing as much as possible and came up with a different design to reduce the mass on the front and flatten the roof Learning they are outside the flood plan area meant they may reduce the height of the building approximately four feet due to the new ability to dig into the flood plain level. Mr. Hall addressed the height variance being requested and reminded the Council of other local height variances which have been approved. He explained the fly system and why the additional height is needed to get backdrops and items out of sight of audience members. He added that Zephyr Theatre has formed a 501(C)(3) nonprofit. Roger Tomten, ARCHNET, gave a presentation on the history of large manufacturing-type buildings in this area of downtown. He explained how the building roofline has been flattened to reduce impacts on neighbors' views. Councilmember Junker asked Mr. Hall if the 501(C)(3) will be the holder of the real estate. Mr. Hall responded yes. Mayor Kozlowski asked if payment in lieu of taxes has been discussed. Ms. Wittman replied no, but with the Special Use Permit,the development team will need to come back before the Council to negotiate a development agreement. Additionally, the City has first right of refusal on the sale of the property and also needs to explore the transfer of the lease of the parking lot to the north. Mayor Kozlowski clarified that a public hearing is not required, but he opened the floor to public comments, asking that they be kept to the topic of the height variance. Dana Tonrey, co-owner of Stillwater Investment Management at 423 South Main Street and resident of Lake Elmo, stated she is very excited about the development because it will help develop the north Main area and bring business to the City. She stated she is sympathetic to the neighbors, but believes the benefits of the theatre outweigh the concerns. She urged the Council to approve the height variance. Tom Kraemer, 2030 Oak Glen Trail, a member of the theatre board of trustees, offered support for the theatre development. He feels that a professional theatre will be a great addition to the City. As a trail user, he feels the property is the first thing trail users see when they come into the City. James Rickson, 650 North Main Street, applauded the theatre but stated he is opposed to the height, as it would block residents' views. He added that last night's HPC approval was conditioned upon the City's approval of the height variance. Ms. Wittman clarified that the condition of approval was that if the variance is not granted,the design would go back to the HPC. John Grzybek, 730 Winslow Avenue, St. Paul and member of the theatre board of trustees, submitted a petition signed by downtown Stillwater building owners in support of the theatre. In St. Paul he worked with the Council to restrict heights along the Mississippi River corridor, and helped defeat a number of multi-million dollar projects based on mass or height issues. He is very sensitive to people's line of sight but he also feels the developer has done everything possible to make it less intrusive by lowering the building at a cost of well over $200,000 to dig down. Orwin Carter, 1029 3rd Avenue South, also property owner at 650 North Main Street, spoke in opposition to the height variance. He added that only 22 of the 37 residents of 650 North Main received notices of the Planning Commission hearing. He feels a theatre is a great idea but the height and mass of the building is excessive. Peter Smith, 650 North Main Street, a member of the 650 Association board and president of an architectural firm that presents before the Council often, reminded the Council that the City has Page 10 of 14 City Council Meeting April 5, 2016 already granted variances to the project for front and backyard setbacks, parking, and surface coverage. If his firm were to bring an application like that, he feels the Council would tell them they were putting ten pounds of poop on an eight pound site. Joanne Mrosak,650 North Main Street, expressed concern about the proximity to the trail and the road. The structure will block the river view of many visiting the area and 22 residents will lose their river view. In addition,the runoff will degrade the river and there will be water table issues. She addressed the history of theatres, and questioned the stability of this nonprofit, which she believes started in 2013. She asked how it will be demonstrated that the seats will be filled. Councilmember Weidner challenged that the comments do not relate to height. Trevor Holien, 1007 Jamison Street, St. Paul, who has played for numerous theatres, told the Council that the justifications for the height variance are necessities for a thriving theatre. Without the extra 7' and the fly loft,the theatre cannot happen, which would be a large loss to the City. Richard Crumb, Terra Springs resident,noted that the theatre does not have to be in this building. He feels the digging down will essentially create a boat like the Titanic. The mass facing Main Street will be huge. All he will see is a huge wall. There will be an economic impact on all residents of Terra Springs. The project is not viable for the site. He urged the Council to deny the variance. Mary Ann Sandeen, 650 North Main Street#308, concurred with concerns previously expressed. She does not like the proposed addition. Her property value will go down in many ways. She asked that the Council deny the project as presented. She noted that the Armory is going to be vacant and would make a better site for a theatre. Gladys Ritter, 650 North Main Street #202, stated the challenge is to have a theatre but not hurt people around it. She feels there has to be a way to figure this out. It has been represented that the theatre owners have made attempts to meet with the people who are affected in building 650 but no one has been contacted. She would like to meet with them. Mayor Kozlowski closed the public comment period. Councilmember Weidner stated, given all the variances that would be required, the theatre does not seem to fit the site. Councilmember Junker stated he appreciates the fact that everyone wants the Zephyr building to become a great part of downtown. The prospect of having the theatre excites him. If residents want guaranteed views,they should buy something on top of the river so they're guaranteed-that is common knowledge about properties. At the same time, he struggles with the variance. He realizes a fly loft is needed but has a problem with the height. Mayor Kozlowski stated even if the variance were not needed,the project would impact everyone who spoke and the variance makes it a little worse overall. If a variance were not required, he suspects the Council would hear the same arguments. Whether a theatre or other use comes in, it will have an impact on the residents. Anything coming into the building could be 37 feet high all the way across without any variance, and that is the reality of the site. He feels the 7' variance does not seem that much to ask for and wo not have that much impact to the residents across the street. Councilmember Weidner noted the question still stands whether a 13' or 7' variance is being requested. Page 11 of 14 City Council Meeting April 5, 2016 City Planner Wittman replied it is a 13' variance before the Council but that the roof has been lowered and that the Council can always grant less of a variance. Councilmember Menikheim stated that the City needs an anchor at the north end - that is part of progress and growth. He feels the City should take advantage of improving the downtown area. He recognized there will be residents who will be disappointed. He would tend to support the variance because it serves the community as a whole. Councilmember Polehna stated theatre is a cultural activity that has been sought for 20 years in Stillwater. It would be a good amenity. He feels the marina and the boats that are shrink-wrapped are a lot uglier than a nice looking building. Councilmember Weidner pointed out that the Council is not arguing the need for a theatre but the regulations. He agrees that theatre is great, but feels that the issue at hand is whether a big blocky building is appropriate at the entrance to downtown. City Attorney Magnuson pointed out the legal test for a variance is whether a property owner proposes a reasonable use that is prohibited by the regulations and whether the regulation presents practical difficulties. City Planner Wittman added that staff has determined that the fly loft is a reasonable use and that the essential character of the neighborhood would be retained. Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to approve Resolution 2016-075 a resolution approving a height variance for Zephyr Theatre, Case No. 2016- 12. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Polehna Nays: Councilmembers Junker and Weidner Possible approval of City request to order a TIF District study for the Water Street Inn property Community Development Director Turnblad explained that Chuck Dougherty, owner of the Water Street Inn, is planning to proceed with the addition that was approved several years ago by the City. As part of his financing, he has asked if the City would be willing to approve the use of TIF. Before the question can be brought to the Council for consideration, an analysis of the Inn's current condition needs to be conducted to determine whether the project would even be eligible for TIF. He stated that City Attorney Magnuson has inquired with Michael Fischer of LHB, who is well versed in conducting the necessary inspections and analysis. Mr. Fischer would do the work for$5,000, which is a reasonable price. If the TIF analysis reveals that the Water Street Inn is eligible for TIF financing, Mr. Dougherty would then submit a formal application requesting it. The $5,000 for the analysis would be paid for from funds in TIF District 1 and if a TIF project materializes, the $5,000 would be reimbursed from the newly created district. Staff recommends approving the expenditure of$5,000 from TIF District 1 for the analysis of Water Street Inn. Councilmember Weidner asked why the applicant would not pay for the analysis. City Attorney Magnuson stated that often, a deposit sufficient to cover such costs is required as a condition of the application. Councilmember Junker asked about the precedent that might be set by the City paying for the TIF district study. He wondered how many properties are on the TIF roles for 50 years on two renewals. Page 12 of 14 City Council Meeting April 5, 2016 City Attorney Magnuson told the Council the reason an expert is needed is that he has to do analysis inside the building to determine whether there are code deficiencies and to determine whether the cost of correcting those code deficiencies would exceed 15% of the cost of original construction. It is so costly because it has to be done by an architect versed in this area and 50% of the buildings in the district would have to be substandard. Motion by Councilmember Weidner, seconded by Councilmember Junker, to deny approving expenditure for TIF analysis services on Water Street Inn project. Ayes: Mayor Kozlowski, Councilmembers Junker, Weidner, Polehna Nays: Councilmember Menikheim Consideration and discussion of St. Croix Boat Show event permit Community Development Director Turnblad stated that Tim Wojtas of St. Croix Marine&Power (Somerset)has submitted a special event permit application for a boat show. The business would display up to ten of their boats and pontoons for sale on Mulberry Point on May 20-22. Due to Public Safety concerns with the preferred location, St. Croix Marine & Power has instead requested eleven spaces in Municipal Parking Lot 9 as an alternate. Staff believes that events primarily intended to solicit private sales, such as this event, should occur on private property,not on public roads or in public parks. Staff recommends denial of the special event permit. Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to deny the Special Event permit for St. Croix Marine & Power. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna Nays: None Possible approval of plans&specifications and authorizing bids for 2016 Street Improvement Project Public Works Director Sanders reported that plans and specifications for the 2016 Street Improvement Project are near completion and staff is requesting authorization to bid. Staff has been working with Oak Park Heights to complete the streets which share a common border, Orleans, 64th and Ozark. These streets will be included in the bid proposal as an alternate. Once bids are received, staff will send the bid results to Oak Park Heights, who will then determine if they want to proceed with those streets. Bid opening is scheduled to be May 3, 2016. Bid results will be presented to Council at the May 17 meeting. Motion by Councilmember Weidner, seconded by Councilmember Junker,to adopt Resolution 2016- 076, approving plans and specifications and authorizing bids for 2016 Street Improvement Project (Project 2016-02). Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna Nays: None COMMUNICATIONS/REQUESTS There were no communications/requests. COUNCIL REQUEST ITEMS There were no Council request items. Page 13 of 14 City Council Meeting April 5, 2016 ADJOURNMENT Motion by Councilmember Menikheim, seconded by Councilmember Junker,to adjourn the meeting at 11:48 p.m. All in favor. fqf 41111110 Ted Ko owski, Ma : - ATTEST: CL71 /1 Diane F. Ward, City Clerk Resolution 2016-073, directing the payment of bills Resolution 2016-074, a resolution approving a concept Planned Unit Development for Croix Bay, Case No. 2016-13 Resolution 2016-075 a resolution approving a height variance for Zephyr Theatre, Case No. 2016-12 Resolution 2016-076, approving plans and specifications and authorizing bids for 2016 Street Improvement Project (Project 2016-02) Ordinance 1085, an ordinance amending the Stillwater Zoning Map by rezoning approximately eight acres from AP—Agricultural Preservation Ordinance 1086, an ordinance extending the corporate limits of Stillwater into certain unincorporated territory that is completely surrounded by the City of Stillwater Page 14 of 14