Loading...
HomeMy WebLinkAbout2016-06-07 CC MIN il ater TNF IIRTN/LACE OF MINNESOTA CITY COUNCIL MEETING MINUTES June 7, 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 City Planner Wittman Public Works Director Sanders Police Chief Gannaway Fire Chief Glaser Engineering Secretary Wolf OTHER BUSINESS Discussion of Undergrounding Project - Xcel Energy Public Works Director Sanders introduced Colette Jurek, Xcel Local Government Relations Manager, and Deb Fedor, Xcel Area Electric Engineer. Ms. Jurek and Ms. Fedor reviewed four options for undergrounding Lowell Park utilities, along with cost estimates. They stated two of the options are not viable based on vegetation, dense tree population, and national electric safety code standards. Cost estimates for the other two options range from$1.3-7 million depending on the route chosen and whether crews hit rock. They added that if the City would like to further consider either option, the next step would be to obtain a detailed cost estimate. Councilmember Weidner suggested reviewing the options with the Downtown Plan update committee. Discussion of request from Stillwater Area Scholastic Cycling Association to allow for limited use of bicycles in Brown's Creek Park City Planner Wittman explained that SASCA has requested permission for the high school mountain bike team to ride one day a week in the Brown's Creek Park Trail during the fall of 2016. Because the park plan calls for passive recreational uses, an amendment would be needed to allow the use. Councilmember Junker expressed concern about the potential for other members of the public to bike on the trail if SASCA is allowed, which could detract from its original intent as a passive walking trail. City Council Meeting June 7, 2016 Councilmember Polehna noted that similar concerns were brought up 25 years ago about Lake Elmo Regional Park, but having the different uses there has worked well. He stated he would like to open it up to all mountain bikers, not just the team. Mayor Kozlowski commented he has no problem with the request, and Councilmember Weidner agreed. City Planner Wittman concluded that staff will bring back a resolution for an amendment to the park plan allowing the mountain bike team to use the trail for the fall of 2016. Downtown Trail Update City Administrator McCarty led discussion about safety concerns due to conflicts of use that have occurred on the loop trail near St. Croix Boat and Packet,namely vehicles using the trail as a road. The Council discussed ways to make it known that the trail is only for pedestrians and bicycles, including additional signage and possibly a physical barrier at the Nelson Street entrance point. Staff agreed to check into different options and report back to the Council. 4th of July Event Update - approval of additional activities City Administrator McCarty reviewed the 4th of July fireworks budget and informed the Council there is enough positive cash flow to fund the cannons and bands like last year if desired. Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt Resolution 2016-116, authorizing the expenditure of up to $5,500 for the addition of cannons and bands for the 2016 4th of July fireworks celebration. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna Nays: None Councilmember Polehna mentioned that the Beyond the Yellow Ribbon committee would like to reserve the pedestrian plaza for seating for veterans to view the fireworks. Council consensus was in favor. Informational Update - Croix Bay Darren Lazan of Landform Professional Services, representing Northland Real Estate, informed the Council that since the last meeting, developers met with adjacent property owners and revised the design. They have reduced the number of units, reduced some building heights and preserved more open space. He also reviewed changes that cannot be made if the project is to remain viable, such as dramatically reducing the scope of the structures while preserving a large area of open space to the east; reducing all buildings to two stories; eliminating all views of the buildings; or building all single family homes. They have reduced the number of units from 268 to 230, moved the buildings further to the north, reduced frontage on the bluffline, and changed the character of the components adjacent to the neighbors with the greatest concern to make them one story walkouts. The new design would cover about 13 acres of the 52 acre site. If the plan is acceptable, developers would deed the natural space to the City. He added that they plan to reapply by July 15 for preliminary plat approval and would like an early grading permit to get foundations in this fall. Councilmember Polehna asked what would happen with the design if Washington County does not allow the second access, and Mr. Lazan responded that they believe they are entitled to the second access and intend to pursue it with the county; however at this point they feel the Page 2 of 9 City Council Meeting June 7, 2016 development can be served off one access point. They are in the process of having a traffic engineer do an analysis. Councilmember Weidner remarked he generally is not in favor of the height variances. Mayor Kozlowski acknowledged concessions have been made. He added that he understands the aesthetic reasons for the height variances but feels it is a little bit of a tough pill to swallow. Mr. Lazan stated they cannot take the top floors off and move them to the ground because then the project would exceed the maximum impervious surface coverage of 25%. Brian Farrell,Northland Real Estate, stated it was felt that the natural space being deeded back to the City would be appealing,but if it is not,they have another plan that would develop that natural space. Councilmember Weidner recognized that neighbors would like to see short buildings and lots of open space, and that it is hard to do both without planting houses all over the property. Neighbors need to know developers are doing something to benefit the public, but are also intensifying the use on the northern portion of the property. He stated he is still not in favor of the plan, but feels it is a better model for the community. Councilmember Polehna asked if developers invited residents of Mid Oaks and Croixwood to the public meeting, and Mr. Lazan replied that a notice was sent to every one of those homeowners associations, and HOAs were asked to disseminate to their members. Mr. Farrell stated that significant dollars have to be spent in the next step. The developers are hoping to gain some level of comfort that they are on the right path. Councilmember Weidner reiterated that that he does not like the variances or the height, and he would prefer the design better fit the residential character of the neighborhood. Councilmember Menikheim remarked that he is generally in favor of senior housing and is comfortable with the direction the project is taking. Mayor Kozlowski stated that he has heard many positive comments in the last several weeks and would encourage the application. He still needs to think about the variances, but he would rather see the current project than a bunch of single family homes. Councilmember Junker stated he likes the new project design better than the original one. Councilmember Polehna stated the new design looks a lot better and has a lot less impact on the neighbors, but he would like to hear more from residents. STAFF REPORTS Sergeant Jeff Stender, head of the investigative unit, provided the Police Department Annual Report. City Administrator McCarty noted that staff continues gathering information on the possible purchase of the Armory building downtown.He also reported that the Sculpture Tour is underway, and updated the Council on the compensation classification project. RECESS Mayor Kozlowski recessed the meeting at 6:32 p.m. Page 3 of 9 City Council Meeting June 7, 2016 RECESSED MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:00 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim, Junker, Polehna Absent: Councilmember Weidner Staff present: City Administrator McCarty City Attorney Magnuson City Planner Wittman Public Works Director Sanders Police Chief Gannaway Engineering Secretary Wolf PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of May 17, 2016 regular meeting minutes Councilmember Junker requested that the minutes be changed to reflect that, under Open Forum, Mike Robinson referred to short term lodging operations, not B & Bs and the minutes should be corrected as follows: "enforce zoning regulations affecting short term rental lodging operations" rather than "enforce zoning regulations affecting Bed & Breakfast operations." Motion by Councilmember Junker, seconded by Councilmember Polehna, to approve the May 17, 2016 regular meeting minutes as amended. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS There were no petitions, individuals, delegations or commendations. OPEN FORUM Mike Robinson, 801 Pine Street West, provided a copy of the lodging tax ordinance and a draft letter the City might use to inform short term lodging businesses that are operating in residential areas contrary to city code. He requested that the City take more steps to advise these businesses they are in violation of local zoning and tax laws. He also requested that Council correct the May 17th meeting to reflect that it should read "enforce zoning regulations affecting short term rental lodging operations" rather than "enforce zoning regulations affecting Bed & Breakfast operations." CONSENT AGENDA Resolution 2016-112, directing payment of bills Possible approval of temporary liquor license—Church of St. Mary— September 11, 2016 Resolution 2016-113, approving the abatement of certain special assessments Resolution 2016-114, approving 2016 Summer Tuesdays special event & contract Resolution 2016-115, approving application to conduct off-site gambling—Knights of Columbus 1632 (Lumberjack Days) Page 4 of 9 City Council Meeting June 7, 2016 Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt the Consent Agenda. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Polehna Nays: None PUBLIC HEARINGS A public hearing to consider a request from Dave Najarian of The Lion's Tavern, for consideration of an appeal to the Planning Commission's decision regarding a request for an amendment to an existing Special Use Permit to allow for outdoor music, as a form of outdoor entertainment, at the structure located at 324 Main Street South in the CBD— Central Business District. The Council will also consider the applicant's request for a waiver to City Code Section 38-3, Subd 3 to allow for sound producing or reproducing equipment to be used outdoors past 10:00 p.m. City Planner Wittman stated that there are two requests: appeal of a Planning Commission conditional approval to allow for limited live amplified outdoor music; and a waiver to the noise ordinance. The applicant would like permission to have live amplified outdoor music Tuesday through Sunday, and to have the amplified music playing past 10 p.m. on weekend nights. Ms. Wittman reported that the Planning Commission approved the SUP with six conditions and a 90 day review. A written public comment was received from residents of the Runk Condominium Association concerned about the noise. Mayor Kozlowski opened the public hearing. Applicant Dave Najarian, 4569 McDonald Drive, told the Council he does not want to have loud music like Shanghai Bistro had. He wants to have small groups of one to four people playing music on the patio of the restaurant, Tuesday through Sunday until 11 p.m. Amplification is needed because it allows the musicians to use a softer voice and save their voice. He added that he is willing to abide by required decibel levels and would buy a decibel meter if needed. Patricia Kalinoff,428 South Broadway Street,stated decibel levels should be checked up the Main Street stairs from downtown. To hear music seven nights a week would mean she cannot sit on her deck and enjoy a quiet evening. Fred Kalinoff added that he could go along with the Planning Commission's determination if the music ends at 10 p.m. Jim Buggert, a resident of the Runk Building on Olive Street, commented that last summer's loud music was very annoying. Having the music as proposed from 7 p.m. to 10 p.m. might be acceptable if it is not too loud. His concern is just being able to enjoy his residence. Councilmember Junker acknowledged the residents' concerns, adding that he lives downtown, right behind PD Pappy's. Mayor Kozlowski commented he was surprised at a couple of the bands featured at Shanghai Bistro last summer that were really loud. Michelle Plocher, a resident of the Runk Building,expressed concern that the application is vague and open ended in terms of the nature of the music, loudness and so on. She suggested requiring that the issue be revisited after 90 days, not just a quiet behind-the-scenes review by staff. She added that the applicant came up to residents after the Planning Commission meeting and invited them to call him if there is any concern. She felt they had reached a fairly decent compromise with the 90 day review. She remains concerned about allowing music after 10 p.m. during the week. Page 5 of 9 City Council Meeting June 7, 2016 Mayor Kozlowski closed the public hearing. Councilmember Menikheim remarked that he would be comfortable allowing background music Thursday through Saturday, with a 90 day review, but questions if it really needs to be amplified. Councilmember Polehna stated he would not have a big problem allowing the outdoor music until 11 p.m. on weekends, but feels that after 10 p.m., there should be no amplification. Councilmember Junker commented he would have no problem allowing music Tuesday through Sunday, allowing it to play until 11 p.m., Friday and Saturday, but requiring it be un-amplified after 10 p.m. Mayor Kozlowski agreed, and that he is not in favor of music being amplified after 10 p.m. Motion by Councilmember Polehna, seconded by Councilmember Junker, to approve the SUP for Lion's Tavern for live outdoor entertainment Sunday through Thursday 7-10 p.m., Friday and Saturday 7-11 p.m.,with no amplification after 10 p.m.,with conditions#1 and#3-6 as recommended by the Planning Commission, and with a modification to condition#2 that the music be allowed May 1 through Labor Day including Memorial Day, Independence Day and Labor Day, and with a 90-day review with formal resolution of approval at the June 21, 2016 meeting. All in favor. UNFINISHED BUSINESS Possible approval of resolution authorizing COPS grant City Administrator McCarty presented a resolution authorizing application for the COPS Grant. Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt Resolution 2016-117, approving Stillwater Police Department application for U.S. Department of Justice Community Oriented Policing Services (COPS) Grant for $258,727 to hire additional police patrol personnel. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Polehna Nays: None Possible approval of second reading of Ordinance 1087, an Ordinance amending the Stillwater City Code Section 31-300 entitled Establishment of Districts by rezoning approximately fifteen acres to RB, Two-Family Residential (Heifort Ponds) Motion by Councilmember Polehna, seconded by Councilmember Junker, to approve second reading of Ordinance No. 1087,amending the Stillwater City Code Section 31-300 entitled Establishment of Districts by rezoning approximately fifteen acres to RB, Two-Family Residential. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Polehna Nays: None NEW BUSINESS Discussion on TIF Agreement amendment for the conversion of the former Wolf Brewery Block to a boutique hotel City Attorney Magnuson reported that in December 2013,the Council reinstated, by amendment, the TIF agreement that had been put in place for development of the Luna Rossa hotel. He explained that the proposal was for the renovation of the old Wolf Brewery and Luna Rossa Page 6 of 9 City Council Meeting June 7, 2016 structure into a 35-room boutique hotel, 60-80 seat restaurant, and retail space. The agreement called for an up-front loan and pay-as-you-go amortization of remaining increment over the life of the TIF district. Certain conditions were imposed in the agreement that had to be met before the up-front loan would be funded. The conditions had to be fulfilled by August 2014. The conditions were not met and the deadline was extended to December 21, 2014. That deadline was not met. On January 5, 2015 the Council voted to terminate the contract. The first increment was received by City in 2015, which started the 25-year life of the TIF District. The developers now request that the contract be reinstated, and be assigned to the Elevage Hotel Group (EHG). Councilmember Junker asked if anyone has researched the identity of EHG and who its principals are. He also pointed out that the City has not seen the loan commitment yet. Corey Burstad of Elevage Hotel Group, LLC stated that he represents Tim Chies who owns Stillwater Caves,LLC,which started the project in 2013 and which still exists.He told the Council that EHG is the new entity, created at the request of additional investors. He indicated that the team worked on the project for about a year, but the sale of Central Bank killed the momentum. The developers took a year off and found a new partner, Provenance Hotel Management group, which will be the third party management group as well as investing in the project. They found a local bank, Venture Bank, and have submitted the SUP application for a 40-room boutique hotel and 150-seat restaurant with a retail component. He stated that TIF is a critical component of the project. Councilmember Polehna commented that he would like to see the project go forward but is uncomfortable with the lack of communication from developers. He would not want to proceed until the Council gets a recommendation from the City Attorney and City Administrator. Councilmember Menikheim agreed, and asked Mr. Burstad what is different about the project now, and Mr. Burstad referred to communication that he was told had taken place, but then was told had not been not received, and that is frustrating. He added that he has been keeping up with the Community Development Director. Redevelopment needs to start this summer in order to meet the goal of opening the hotel next year. Noting that the contract provided for an assessment agreement of$9.333 million, City Attorney Magnuson asked if the project will still price out at that amount, and Mr. Burstad responded yes, and the cost will far exceed that. Mr. Magnuson suggested that two conditions should be satisfied before granting an extension: proof of mortgage financing; and a binding construction contract. Attorney Mike Mergens, representing the developers, told the Council that the operating agreement is still going back and forth between his law firm and Venture Bank, and the team would be happy to provide that when completed. He stated that the project ownership is very similar as before. EHG cannot sign the binding construction contract without knowing they have money to pay the construction costs. If the extension is not granted, the bank will not finalize the loan. Tonight, the team would like the Council to authorize City staff to negotiate any changes needed in the Developer's Agreement so it can come back for a Council vote. Mayor Kozlowski pointed out there have been many communication breakdowns. He would like to know that will not happen again. He feels the hotel will be a wonderful entity for the City. Councilmember Junker stated he finds it interesting that the agreement has been terminated for a year and now developers are asking the Council to rush to grant the extension. He acknowledged Page 7 of 9 City Council Meeting June 7, 2016 the developers are trying to be accommodating, but feels they are catching a lot of people off guard. Councilmember Polehna remarked that City Administrator McCarty was not on the staff when the proposal came forth before and he would like to see the entire proposal go back to staff for a recommendation and answers to all the questions. City Attorney Magnuson agreed to meet with the City Administrator and City Planner to decide what is needed to verify the developers' existence and will then get in touch with them. Consideration of a Joint Powers Agreement with the Department of Natural Resources for certain public improvements located adjacent to the Brown's Creek Trail in the Park and Preserve land City Planner Wittman described that the joint powers agreement would allow the City to continue to maintain walking paths on DNR lands, to build a new future connection to a new parking lot and to jointly manage this area with the DNR. Motion by Councilmember Polehna, seconded by Councilmember Junker,to adopt Resolution 2016- 118, approving a Joint Powers Agreement with the Minnesota Department of Natural Resources for the continued maintenance of City trails on DNR lands. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Polehna Nays: None Possible approval of bank stabilization feasibility study Public Works Director Sanders explained that the study will involve the whole area from the Dock Cafe down to City limits near Sunnyside Marina, to generate conceptual ideas for stabilization. Motion by Councilmember Menikheim, seconded by Councilmember Junker, to adopt Resolution 2016-119, accepting quote for bank stabilization feasibility study. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Polehna Nays: None Possible approval of bike tuneup station in partnership with PedalMN and HealthPartners City Administrator McCarty indicated that the City was approached by PedalMN and HealthPartners about placing bike tuneup stations along City trails,beginning with a station at the corner of McKusick Road and Owens Street. PedalMN and HealthPartners would provide the funding for the acquisition and installation of the equipment and maintain it for two years. After two years it would become the City's responsibility. Staff recommends approval. Motion by Councilmember Polehna, seconded by Mayor Kozlowski, to adopt Resolution 2016-120, approving PedalMN and HealthPartners sponsored bike tuneup station agreement for a bicycle tuneup station on the City trail system at the southwest corner of McKusick Road and Owens Street. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Polehna Nays: None COMMUNICATIONS/REQUESTS There were no communications or requests. Page 8 of 9 City Council Meeting June 7, 2016 COUNCIL REQUEST ITEMS There were no Council request items. ADJOURNMENT Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adjourn the meeting at 8:52 p.m. All in favor. - 411111111111 411 Tee • ozlowski, . 'or ATTEST: att.' J. homas McCarty, Acting,ty Clerk Resolution 2016-112, directing payment of bills Resolution 2016-113, approving the abatement of certain special assessments Resolution 2016-114, approving 2016 Summer Tuesdays special event & contract Resolution 2016-115,approving application to conduct off-site gambling—Knights of Columbus 1632 (Lumberjack Days) Resolution 2016-116, authorizing the expenditure of up to $5,500 for the addition of RES Pyrotechnics, cannons, and band for the 2016 4th of July fireworks celebration Resolution 2016-117, approving Stillwater Police Department application for U.S. Department of Justice Community Oriented Policing Services (COPS) Grant for $258,727 to hire additional police patrol personnel Resolution 2016-118, approving a Joint Powers Agreement with the Minnesota Department of Natural Resources for the continued maintenance of City trails on DNR lands Resolution 2016-119, accepting quote for bank stabilization feasibility study Resolution 2016-120, approving PedalMN and HealthPartners sponsored bike tuneup station agreement for a bicycle tuneup station on the City trail system at the southwest corner of McKusick Road and Owens Street Ordinance No. 1087, amending the Stillwater City Code Section 31-300 entitled Establishment of Districts by rezoning approximately fifteen acres to RB, Two-Family Residential Page 9 of 9