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HomeMy WebLinkAbout2016-07-19 CC MIN • Met ¶II 111TH►L/C!Of NOMMEN/IA CITY COUNCIL MEETING MINUTES July 19,2016 REGULAR MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:05 p.m. Present: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski Absent: None Staff present: City Administrator McCarty City Attorney Magnuson Police Chief Gannaway Fire Chief Glaser Public Works Director Sanders Community Development Director Turnblad Finance Director Harrison City Clerk Ward PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of July 5, 2016 regular and recessed meeting minutes Motion by Councilmember Polehna, seconded by Councilmember Junker,to approve the minutes of the July 5, 2016 regular and recessed meeting. All in favor. PETITIONS,INDIVIDUALS, DELEGATIONS & COMMENDATIONS Comprehensive Financial Report Audit—Chris Knopik, ClifftonLarsonAllen Chris Knopik, ClifftonLarsonAllen,reviewed the City's 2015 audit. Territorial Springs and Lofts of Stillwater Tax Increment Bonds Dave MacGillivray, Springsted & Associates, reviewed the details of a negotiated bond sale for the Territorial Springs and Lofts of Stillwater projects, which he stated generated some savings for the City. City Attorney Magnuson explained the resolutions associated with the tax increment bonds. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt Resolution 2016-146A, authorizing the restatement of Development Agreement and the termination of certain assessment agreements(Territorial Springs, LLC and The Lofts projects), Series 2016C Bonds. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski Nays: None City Council Meeting July 19, 2016 Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to adopt Resolution 2016-146B,authorizing the sale of Tax Increment Revenue Refunding Bonds(Territorial Springs and The Lofts of Stillwater projects) Series 2016C and providing for their issuance. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski Nays: None Pivot Stillwater- Robert Molenda Bob Molenda explained the Pivot Stillwater application for iPhones, for which he received a grant from the Stillwater Foundation. Based on technology developed in Boston,the app allows people to visit a scene in Stillwater and view that same location as it looked historically. John Runk photographs and historical text will be used. The app will start with five sites and can be easily expanded.He added that Stillwater will be the first community in the region to use the technology. He will work with the City on installation of several instructional signs. OPEN FORUM Patrick Nelson, 1118 1st Street North, informed the Council that since 2004 he has been picking up litter, cutting grass and controlling weeds in Kolliner Park, but recently the lock has been changed. Councilmember Junker suggested Mr. Nelson work with the Parks Commission and City staff to get into the park. Ryan Smith, 815 Maple Street, voiced concern about a new parking lot entrance created last year for Stillwater Collision which abuts his lot line,making it very convenient for the business to use the area for dilapidated cars and other junk. He asked why city code requiring a fence and setback is not being enforced. He expressed that he basically has a metal scrap transfer spot in his backyard.Mr. Smith also expressed concern about the release of volatile organic compounds from the business. City Administrator McCarty responded that City staff has discussed the issue and will address the concerns later, during the Executive Session of the meeting. City Attorney Magnuson added that the site is regulated under both a CUP and a settlement agreement from a lawsuit the City brought against the use a number of years ago. Community Development Director Turnblad stated he would keep Mr. Smith informed on the discussions. Mike Robinson, 801 Pine Street West, Elephant Walk Bed & Breakfast, addressed the issue of enforcement of special use permits. He also thanked Councilmembers for their service. Rob San Cartier, 216 Owens Street, told the Council that residents overwhelmingly do not want their freedoms restricted by a yard parking ordinance. He presented a petition with the rest of the names (100)that were not turned in previously. He added that having a lot of restrictions equates to communism. He feels it is totally wrong to have the government telling everybody what to do. Mr. San Cartier proposed a code change that would allow coverage of 75-100% of the front yard for parking if needed. For new construction, the Council could set a minimum of parking spaces required, not a maximum, increase the size of all parking spots, and make garages mandatory to hide vehicles. For instance, a new four bedroom home should be required to have a 2.5 car garage and four parking spots. He added these restrictions could be enforced for new construction,but to require them of existing old homes is not right. Page 2 of 7 City Council Meeting July 19, 2016 STAFF REPORTS Police Chief Gannaway reported that Lumberjack Days went very well with a little over 50 service calls for the weekend. Fire Chief Glaser echoed Chief Gannaway saying the weekend went well. Councilmember Polehna asked about the status of the sport court in the new Armory. Community Development Director Turnblad responded that he will check on it. CONSENT AGENDA Resolution 2016-140, directing payment of bills Resolution 2016-141, approving transfer of an on-sale and Sunday Liquor License to Stillwater Holdings LLC, DBA: Rafters Possible approval of new special event—Faster than the Pastor on November 12, 2016 Resolution 2016-142, approving the 2016 Fall Colors Art Festival special event and contract and temporary liquor license Resolution 2016-143, approving amendment to the Summer Tuesdays special event contract Resolution 2016-144, appointment of Karen Jensen to Board of Water Commissioners Resolution 2016-145, approving amendment to the contract with Wenck Construction for construction management services Possible approval of sanitary sewer adjustments Motion by Councilmember Menikheim, seconded by Councilmember Polehna,to adopt the Consent Agenda. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski Nays: None PUBLIC HEARINGS There were no public hearings. UNFINISHED BUSINESS Discussion on TIF Agreement amendment for the conversion of the former Wolf Brewery Block to a boutique hotel City Attorney Magnuson reported that, since the last meeting, staff has negotiated a very tight schedule for the developers to fulfill the obligations under the development contract if it is reinstated. Essentially the developers would have to have a construction contract and funded mortgage financing by August 31 and begin construction by September 30.The developers appear confident they can meet that schedule. Mr. Magnuson stated that staffs review of the pro-forma and financial package finds that the project is a lot more feasible and on better footing than it was previously. He explained the TIF Agreement amendment. Councilmember Weidner commented that he loves the project,but is concerned about past missed deadlines. Michael Mergens, corporate advisor for Elevage Hotel Group, responded that the investment group,architect,land use counsel and bank are now all different.The parcel has immense potential and developers are ready to close on the properties before the end of the month. Page 3 of 7 City Council Meeting July 19, 2016 Councilmember Menikheim echoed Councilmember Weidner's concerns. Mr. Magnuson reiterated that there are different investors, a different bank, and liquidity providers, representing a substantial change from the last development group. He explained that the taxes on the project would fund the balance of the increment over a period of years. Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to adopt Resolution 2016-147,reinstating a Development Contract. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski Nays: None Armory Update City Administrator McCarty reminded the Council that the City must notify the National Guard of its intent to purchase the Armory Building at the offered price of$1.2 million, by August 1, 2016. He added that a lot of information has been received from the National Guard about the history of the property,but a number of due diligence items remain: the City may wish to conduct its own appraisal of the Armory property; a Phase I Environmental Analysis should be conducted; and there has been no formal discussion with developers to consider what possible reuse and development alternatives might exist for the building. Mr. McCarty outlined the options for proceeding. Councilmember Junker stated he has always wanted to see an appraisal of the property followed by a Phase 1 environmental study. Councilmember Menikheim stated he feels the Council does not have enough information to make a decision, other than to ask for another extension; and Councilmember Weidner noted the an extension of time does not appear to benefit the City. Council consensus was to let the August 1 deadline run its course. Motion by Councilmember Weidner, seconded by Councilmember Junker, to send a letter to the General thanking him for the courtesy of the extension and notifying him the City does not intend to request another extension. All in favor. Motion by Councilmember Polehna, seconded by Councilmember Junker,to order an appraisal of the Armory. All in favor. NEW BUSINESS Proposed hotel and parking mitigation plan-Joseph Wolf Block 8 Community Development Director Turnblad explained that developers of the boutique hotel at 402 Main Street South are asking for approval of a parking mitigation plan and four valet parking spots, two on Main Street and two on Nelson Street. The Downtown Parking Commission unanimously recommended approval of the use of the two easternmost parking spaces on Nelson Street for valet parking, but recommended denial of the two spaces on Main Street. The annual cost for the two spaces on Nelson Street at 2016 rates would be $4,026. In order for on-street parking spaces to be reserved for the hotel, the Council must decide whether or not to grant that request. Councilmember Junker stated that the Downtown Parking Commission intended to review this again in terms of the Main Street spots. Mr. Turnblad explained the Parking Commission realizes Page 4 of 7 City Council Meeting July 19, 2016 traffic patterns on Main Street will change after the bridge is constructed,which is the reason for reviewing it in a year. Councilmember Weidner asked why not grant the hotel the use of the Main Street spaces, and if it causes a problem, take action. He feels developers have asked for a creative solution to the parking problem. Community Development Director Turnblad indicated how the parking requirement for the hotel was calculated. Councilmember Junker agreed with Councilmember Weidner, adding that he would love to see valet parking spots on Main Street, but the DTPC felt the first year would be hard to do that. Mayor Kozlowski stated he understands the DTPC's reluctance to reserve on-street spots for a private business, but he feels this is different because it is helping the parking situation. Councilmember Weidner remarked that Nelson Street seems too steep to use for valet parking spots. Corey Burstad, developer,responded that asking for the Nelson Street valet parking spaces was a compromise, but they were hoping for the Main Street spots to be approved. They would be fine with giving up the Nelson Street valet parking,but would like to retain the existing loading zone on Nelson. Motion by Councilmember Weidner, seconded by Councilmember Menikheim,to approve two valet parking spots on Main Street, eliminate the two valet parking spaces on Nelson, and approve the mitigation plan in a formal resolution at the August 3, 2016 meeting. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski Nays: None Possible approval of planning consultant contract with HKGi Community Development Director Turnblad reminded the Council that earlier this year, the Council approved the use of planning consultants to assist with two projects: a study of short term (vacation) rentals; and a concept park plan for the Aiple property. Staff received proposals from three Twin Cities consulting firms and recommends contracting with HKGi. Councilmember Weidner asked why a consultant is needed, and Mr. Turnblad replied that there are many moving parts involved in determining which options are best for the City, and staff does not have time to do the work. Referring to the lengthy process for the yard parking ordinance, Councilmember Weidner asked what if the study process takes a year. Mr. Turnblad replied that the study itself would take a couple of months, then there would be public discussion about the details of the ordinance. Meanwhile, staff has already notified people who now take rentals on a short term basis to take no more reservations. Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt Resolution 2016-148, approving contract for professional services related to planning projects. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski Nays: None Page 5 of 7 City Council Meeting July 19, 2016 Possible approval of assessments for Brown's Creek Cove impact fees PP P City Attorney Magnuson informed the Council that developers are exercising the option to request that the City certify the traffic adequacy impact fees on the real estate taxes over three years. The first installment for collection would be in 2017. Motion by Councilmember Polehna, seconded by Councilmember Junker,to adopt Resolution 2016- 149, adopting assessment- Brown's Creek Cove (Project 2016-07, L.I. 411). Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski Nays: None Discussion on possible Site Plan Review Ordinance Community Development Director Turnblad pointed out that on a number of occasions the Council has discussed whether a site plan review process should be required of large downtown projects that would not otherwise be subject to a formal review. As a follow-up to those discussions, planning staff has outlined the main elements of a potential ordinance to require this formal review. Council consensus was to direct staff to draft a Site Plan Review Ordinance and forward it to the Planning Commission for a review and public hearing. COUNCIL REQUEST ITEMS Discussion on placement of bridge section in Bridgeview Park Councilmember Junker indicated that last week he learned that MnDOT has no use for the casting mold for one of the smaller sections, that was inaccurately poured. He felt it would be a great conversation piece to place in Bridgeview Park. An answer is needed by September 1. Councilmember Polehna suggested referring it to the Parks Commission to discuss ideas on how to use the structure. Motion by Councilmember Polehna, seconded by Councilmember Junker, to refer the issue to Parks Commission. All in favor. Olive Street Project Councilmember Junker stated that neighbors want the City to consider a four-way stop at South Sixth and Olive Streets; and Public Works Director Sanders agreed to look into the issue. Beyond the Yellow Ribbon Update Councilmember Polehna thanked all who participated in the Lumberjack Days Parade and Beyond the Yellow Ribbon. The Locals Councilmember Weidner and the other Councilmembers thanked The Locals, and stated that they exceeded expectations, overcame adversity, and hosted a wonderful Lumberjack Days. Page 6 of 7 City Council Meeting July 19, 2016 ADJOURNMENT TO EXECUTIVE SESSION TO DISCUSS LITIGATION STRATEGY Motion by Councilmember Junker, seconded by Councilmember Polehna, to adjourn the meeting to Executive Session at 9:48 p.m. All in favor. 411 Ted ,'owski, Mayo ATTEST: ,4 a2 &-Za,--- ___... Diane F. Ward, City Clerk Resolution 2016-140, directing payment of bills Resolution 2016-141, approving transfer of an On-sale and Sunday Liquor License to Stillwater Holdings LLC, DBA: Rafters Resolution 2016-142, approving 2016 Fall Colors Art Festival Special Event with Contract and temporary liquor license Resolution 2016-143, appointment of Karen Jensen to Board of Water Commissioners Resolution 2016-145,resolution approving amendment to the contract with Wenck Resolution 2016-146A, authorizing the restatement of Development Agreement and the termination of certain assessment agreements (Territorial Springs, LLC and The Lofts projects), Series 2016C Bonds Resolution 2016-146B, authorizing the sale of Tax Increment Revenue Refunding Bonds (Territorial Springs and The Lofts of Stillwater projects) Series 2016C and providing for their issuance Resolution 2016-147,reinstating a Development Contract Resolution 2016-148, approving contract for professional services related to planning projects Resolution 2016-149, adopting assessment-Brown's Creek Cove (Project 2016-07, L.I. 411) Page 7 of 7