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HomeMy WebLinkAbout2016-09-06 CC MIN illwater TME IIMTNOLACE OF MIMMEIOTA CITY COUNCIL MEETING MINUTES September 6,2016 REGULAR MEETING 3:30 P.M. Mayor Kozlowski called the meeting to order at 3:37 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim, and Polehna Councilmember Weidner arrived approximately 4:00 p.m. Absent: Councilmember Junker Staff present: City Administrator McCarty City Attorney Magnuson Community Development Director Turnblad Finance Director Harrison Public Works Director Sanders Police Chief Gannaway Fire Chief Glaser Engineering Secretary Wolf OTHER BUSINESS Budget Workshop -Review of Preliminary 2017 City Budget Proposals City Administrator McCarty led discussion of three options for reducing the tax levy increase for 2017. Staff recommends Option 3, which includes a net tax levy increase of 4.172%. Finance Director Harrison explained the recommended debt service levy reduction. Mr. McCarty reported that Option 3 assumes that the City does not get the COPS grant money and funds the police officer position fully from the property tax levy, consisting of$44,605, plus $39,000 match. It also includes a$50,000 reduction in the library levy increase. Council consensus was that they were comfortable with Option 3. STAFF REPORTS Community Development Director Turnblad informed the Council there will be a focus group meeting September 14 on the concept plan for the future park property (Aiple property) north of downtown. The study of short term lodging rentals is underway and a stakeholders' meeting will be held September 27. City Administrator McCarty reminded the Council of the annual St. Croix River education session September 14. RECESS Mayor Kozlowski recessed the meeting at 4:18 p.m. City Council Meeting September 6, 2016 RECESSED MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:00 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim, Weidner, Polehna Absent: Councilmember Junker Staff present: City Administrator McCarty City Attorney Magnuson Community Development Director Turnblad Public Works Director Sanders Police Chief Gannaway Fire Chief Glaser Engineering Secretary Wolf PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of August 16, 2016 regular and recessed meeting minutes Motion by Councilmember Menikheim, seconded by Councilmember Weidner, to approve the August 16, 2016 regular and recessed meeting minutes. All in favor. PETITIONS,INDIVIDUALS, DELEGATIONS & COMMENDATIONS Oath of Firefighters Sal DiStefano and Seth McCauley Chief Glaser swore in Firefighters DiStefano and McCauley. Their families pinned on their badges. Resolution 2016-163, Certificate of Appreciation - Jeff Dionisopoulos - Public Works Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt Resolution 2016-163, Certificate of Appreciation- Jeff Dionisopoulos - Public Works. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Weidner, Polehna Nays: None OPEN FORUM There were no public comments. CONSENT AGENDA Resolution 2016-164, directing the payment of bills Resolution 2016-165, approving the transfer of the On-Sale and Sunday Liquor Licenses from Shanghai Bistro to Cabone's LLC, DBA: Lion's Tavern Resolution 2016-166, approving the transfer of the On-Sale and Sunday Liquor Licenses from Cabone's LLC, DBA: Lion's Main to Tilted Tiki, Inc. DBA: The Tilted Tiki Resolution 2016-167, identifying the need for funding to complete its 2040 Comprehensive Plan update and authorizing an application for planning assistance grant funds Page 2 of 9 City Council Meeting September 6, 2016 Resolution 2016-168, approving Development Agreement for The Ponds at Heifort Hills Possible approval of sanitary sewer adjustments Possible approval of Letter Agreement with AFSCME regarding on-call pay for non-exempt Information System staff Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to adopt the Consent Agenda. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Weidner, Polehna Nays: None PUBLIC HEARINGS Case No. 2016-27 A public hearing to consider a request from Cecilia Loome and Jonathan Moler of the Old Swedish Church for consideration of an appeal to the Planning Commission's decision regarding a request for consideration of a Special Use Permit for a Type III Home Occupation license, and associated variances, for the structure located at 320 Fourth Street North in the RB -Two Family Residential District. Community Development Director Turnblad reviewed the appeal and stated that on July 13,2016, in a 4-2 vote, the Planning Commission denied a Special Use Permit (SUP) and three associated variances for Cecilia Loome and Jon Moler to host events in the Old Swedish Church in their single-family residence at 320 4th Street North. Ms. Loome and Mr. Moler are appealing the Planning Commission's decision. Mayor Kozlowski opened the public hearing. Donald Empson, 1206 North Second Street, Stillwater historian,pointed out that the City Council usually gets involved in the preservation of historic buildings at the end of the cycle, when a building owner requests a demolition permit, because a building is too dilapidated to repair, but tonight marks the beginning of the cycle. He added that existing building codes and zoning really do not fit the church. He understands the building has been offered for sale, but cannot be economically converted to a single family residence. He urged the Council to allow a few events to provide income to preserve the church. Jaana Nystrom, 1990 Oak Glen Trail, voiced support for the SUP, saying it would bring new business and is aligned with the City's identity. Tim Paskvan, 314 Fourth Street North, expressed that the crucial issue is whether unrestrained commercial interests should be allowed to be the principle by which neighborhoods are made of Jane Paskvan, 314 Fourth Street North, stated as next door neighbors, they have talked with the applicants at length about the proposal. They do not wish to have an event center within 10 feet of their house; however the applicants are sweet, wonderful people who need to make money on the place to stay there. Other than the preservation of the church and their relationships with neighbors, there is no real benefit to them or the neighborhood. She expressed concern about property values and the future ability to sell her home. She added that she believes Jon and Cecilia will do anything in their power to minimize any problems, but she is worried that if granted, a variance would go with the building and a new property owner could do the same thing. She stated they are willing to let the applicants hold events in their home with limitations. Deanne Wessel, 14160 - 107th Street North, indicated she feels it is honorable that the applicants want to retain the property. She supports the SUP. Page 3 of 9 City Council Meeting September 6, 2016 Catherine Hobbs, 811 Fifth Street South, stated she supports the variances. She moved to Stillwater because of it beautiful, historic character. Chris Lentz, 718 North Third Street, stated he worked in the church building for 15 years when it was a bookstore. He recalled that, as a busy bookstore, there were never any complaints from neighbors about traffic. Calling it an event center is a misnomer because it is a very small venue. He added it has always been a mixed use neighborhood. He urged the Council to find a creative way to accommodate the request. Bruce Bell-Myers, 821 Fourth Street North, remarked that the building is a perfect small performance space with fantastic acoustics. Converting it to apartments would not work. He envisions peaceful gatherings of people listening quietly to something of importance to them, like a wedding or a quartet. James Smith, 1324 Fifth Street South, pointed out that the building itself speaks to the character of Stillwater; it would be a shame to not have access to that. He is very much in favor of the SUP. Kim Barnhart, 1103 South Second Street, told the Council she supports the use of the property for the purpose intended. Karen Loome, 522 Maple Street West, reported that her family lived at the back when it was a bookstore. The new roof installed three years ago cost $30,000. She read a letter on behalf of Sheryl Weitzel, 121 Cherry Street West, endorsing the proposal. Ms. Loome added that the few gatherings hosted so far have been quiet and respectful. There are many mixed uses in neighborhood. The church was never intended to be used solely as a residence;the building needs to sustain itself if it is to be maintained. She urged the Council to approve the use. Jerry Helmberger, 303 Fourth Street North, stated that he believes in a person being able to use their property any way they want, as long as it follows the rules and the ordinances set forth by the City. He expressed concerns about the possibility of over 50 events taking place in a one- block area in a five-month period if the request is granted. He feels Jon and Cecelia will try to get people to park where they are supposed to park, but from experience, he knows that patrons do not. He is concerned about spillover from events. He reminded the Council that the neighborhood is still zoned residential. He does not want to argue against having an event center at the Old Swedish Church, but he feels there need to be restrictions that go along with it. George Ghanem, 324 Fourth Street North, indicated that as a next door neighbor to the church, he never had any issue when the bookstore was in operation. He is worried that turning the property into apartments would not be feasible and he would not like to see the property fall into disrepair or be subject to demolition. He asked the Council to let the applicants use the property the way they suggested. Barbara Champlin, 217 Linden Street West, commented that Jon and Cecilia are good neighbors, she has never heard loud disruptive noise from the property, and appreciates the work they have done to the building. She feels the proposed use would fit in well in the neighborhood. She also feels the applicants are entitled to the same access to parking,whether on the street or in the ramp, that other businesses and public institutions have. Patty Hooley, 2250 Oak Glen Court, voiced support for the SUP. She pointed that out the church has always had a visiting public, so allowing the owners to rent out their home for occasional private events in a controlled manner is very much in keeping with the neighborhood. Page 4 of 9 City Council Meeting September 6, 2016 Jonathan Moler and Cecilia Loome, applicants, shared the history of the neighborhood. They reminded the Council that the church building has never been a single family residence. For 30 years as a bookstore, it was open to the public eight hours a day, six days a week. They feel their proposal makes it more residential and less commercial than it ever has been in its 112 year history. They also feel there is a big difference between a full time event center and an owner occupied home that is rented out a few times a year. The church is their home and they want it to continue to be their home. This summer there have been three paid events. They do not want loud, rowdy parties, but low key gatherings. Cathy Helmberger, 303 North Fourth Street, stated she made the City aware the church intended to have weddings and events and they should have permits just as she and her husband do for the Aurora Staples Inn.The Inn has hosted weddings over the years, so she understands the difficulties of controlling adults, keeping them quiet, and keeping them from parking where they want or wandering into neighboring yards. She requested that if granted, the permit have restrictions to protect the neighbors. Terri Brine of Stillwater Township, a real estate agent for 25 years, reported that when the church building was for sale,many buyers considered it, but with the flooring and ceiling, it could not be made into apartments or condos. She believes that the use being suggested will not diminish nearby property values. Nancy Kiolbasa, 1920 Oak Glen Trail, expressed support for the proposal. She recognized complaints about events at the library and thinks this proposal should not bear the burden of that issue. Kristen deLeon, 704 Fifth Street North,told the Council she supports the proposal. Monty Brine, Stillwater Township, reiterated Terri Brine's comments. John Harrington, 13020 - 94th Street North, stated he supports the Loomes and the SUP. Brad Lindberg, 108 Stillwater Avenue, expressed support for the SUP. John Argiro, 409 Willard Street West, stated he supports the Loomes. Suzi Quaderer, 304 North Third Street, who shares a driveway with the library, stated there is a real safety issue with parking on the street, making it dangerous to pull out. Because of parking and problems with events at the library, she is against the proposal in its current form. She appreciates the historical significance of the building, the work the applicants have done, and the unique nature of the events other than weddings. She agrees with the Planning Commission's decision to deny the proposal. She asked the Council to consider the compromise of approving a one-year SUP to allow activities, to be held to the exact guidelines and restrictions as the Aurora Staples Inn. Randy Ralston, 518 Maple Street West, pointed out the applicants' willingness to come up with ways to deal with parking issues. He would like to see the City help businesses grow and grant the SUP. Joe Rice, 510 St. Croix Avenue West, reminded the Council that the church is 112 years old and was designed to house scores of people and did so for about 70 years. He feels that common sense dictates that a building which is large, historic and made to function as a business should be allowed to do just that. Page 5 of 9 City Council Meeting September 6, 2016 Melvin`Buzz" Kriesel, 1782 - 38th Street, Somerset, Wisconsin, stated growing up in Stillwater in the 1940s and 50s, he was proud of all the steeples in town. He would not like to run the risk of losing one of those steeples. He supports the SUP. Don Wessel, 14160 - 107th Street North, stated he supports the variances because a big part of Stillwater is its beautiful historic buildings. Aaron Wessel, 14160 - 107th Street North, voiced support for the SUP. Tim Jozefow, 515 Fourth Street North, stated parking issues are simply a part of living in Stillwater. He believes property values will increase based on how the property has improved dramatically in the time that Jon and Cecilia have been there. Darcy Rodriguez, 308 Third Street North, voiced support for the SUP. Living behind the Aurora Staples Inn means weddings occur adjacent to her backyard relatively frequently. She feels the benefits of having these types of celebrations in the community absolutely outweigh the disadvantages.It would be disingenuous to allow one venue to provide celebrations and weddings without allowing another that is across the street. Nanette Pederson, 316 South Grove Street, told the Council she totally supports the variance and proposal. Trevor Stolber, 55670 Penfield Avenue North, stated he supports the SUP. Caleb Majerus, 504 Owens, voiced support for the proposal. Mayor Kozlowski closed the public hearing. Mayor Kozlowski noted that separating the neighborhood stress about the library and its events from the current request is a big issue. He has met with Cecilia, gone through the property, and agrees there is no other earthly use for the building. There needs to be a way to minimize complaints about the events. Councilmember Menikheim pointed out he is also on the Library Board. He feels that the City needs to resolve neighborhood complaints about library events before adding another venue to the neighborhood. Councilmember Weidner reminded the Council they are not voting on whether or not to destroy a building, but the use of a building that is currently prohibited. He feels that zoning creates controls that should be followed. The CUP being requested runs with the land, not with individuals. He pointed out the B&B ordinance requires 900 feet between B&Bs to maintain the residential use of a neighborhood. Lack of parking is a major concern. He does not support overturning the Planning Commission's decision. Councilmember Polehna noted that he managed all the weddings at the historic courthouse for 15 years. His biggest concern with the proposal is parking. Mayor Kozlowski suggested trying to negotiate restrictions to address the concerns brought up while granting the SUP. City Attorney Magnuson explained the implications of denying the SUP without prejudice,which would allow the applicants to bring back an amended proposal in less than a year. He confirmed that variances are tied to the land and that a special use permit is really a conditional use permit, in effect until the conditions are no longer met. It is very difficult to revoke a CUP once there is a substantial investment and expectation of continued operation of the facility. Page 6 of 9 City Council Meeting September 6, 2016 Mayor Kozlowski asked if the issue should go before the Heritage Preservation Commission, and Community Development Director Turnblad responded that no changes are being proposed to the outside of the building, so there is no reason for the case to go to the HPC. Mayor Kozlowski stated he struggles with what to do with this building. Councilmember Polehna commented that denying the SUP without prejudice would not help the situation because the proposed use does not fit the zoning. Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to call for a straw vote to deny the appeal of the Planning Commission decision,and to direct staff to bring back findings for adoption at the next meeting. Ayes: Councilmembers Menikheim, Weidner and Polehna Nays: Mayor Kozlowski A public hearing to consider the assessments for Stillwater Oak Park Heights Street Project (Project 2014-03, L.I. 407). Public Works Director Sanders reviewed that the project consisted of reconstructing streets in the southeast area that share a common border with Oak Park Heights. The project was done in conjunction with the City of Oak Park Heights. The final cost of the project totaled $210,919.35, an amount considerably lower than the feasibility estimate of$347,520. Mayor Kozlowski opened the public hearing. There were no public comments. The public hearing was closed. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt Resolution 2016-169, adopting assessment for the Stillwater Oak Park Heights Street Project, Project No. 2014- 03, L.I. #407. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Weidner, Polehna Nays: None UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS Possible approval of Lighting Maintenance Agreement for Lift Bridge Conversion Project Public Works Director Sanders reported that as part of the Lift Bridge Conversion Project, the Minnesota Department of Transportation (MNDOT) will be installing a lighting system on the concourse that matches the original lighting from when the bridge was built. Along with the installation, MNDOT will be responsible for the maintenance of the system, including poles, lamping and the service lines. MNDOT is requesting that the City pay for the lighting of this system. Staff recommends approval. Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt Resolution 2016-170, entering into Agreement No. 1026159 with Minnesota Department of Transportation. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Weidner, Polehna Nays: None Page 7 of 9 City Council Meeting September 6, 2016 Possible adoption of budget resolutions Finance Director Harrison explained the resolutions based on Option 3, discussed earlier this afternoon. This represents a 4.127% increase over the 2016 levy. Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adopt Resolution 2016-171, adopting the proposed tax levy for the payable year 2017. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Weidner, Polehna Nays: None Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to adopt Resolution 2016-172, adopting the proposed budget for the year 2017. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Weidner, Polehna Nays: None Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adopt Resolution 2016-173, setting payable 2017 Truth in Taxation meeting date. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Weidner, Polehna Nays: None COMMUNICATIONS/REQUESTS There were no communications/requests. COUNCIL REQUEST ITEMS There were no Council request items. ADJOURNMENT Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adjourn the meeting at 9:17 p.m. All in favor. Ted • ozlowski, Mayor ATTEST: t�- 109- 7).7104t4V . Thomas McCarty, City/erk Resolution 2016-163, Certificate of Appreciation - Jeff Dionisopoulos - Public Works Resolution 2016-164, directing the payment of bills Resolution 2016-165,approving the transfer of the On-Sale and Sunday Liquor Licenses from Shanghai Bistro to Cabone's LLC, DBA: Lion's Tavern Resolution 2016-166,approving the transfer of the On-Sale and Sunday Liquor Licenses from Cabone's LLC, DBA: Lion's Main to Tilted Tiki, Inc. DBA: The Tilted Tiki Page 8 of 9 City Council Meeting September 6, 2016 Resolution 2016-167, identifying the need for funding to complete its 2040 Comprehensive Plan update and authorizing an application for planning assistance grant funds Resolution 2016-168, approving Development Agreement for The Ponds at Heifort Hills Resolution 2016-169,adopting assessment for the Stillwater Oak Park Heights Street Project, Project No. 2014-03, L.I. #407 Resolution 2016-170, entering into Agreement No. 1026159 with Minnesota Department of Transportation Resolution 2016-171, adopting the proposed tax levy for the payable year 2017 Resolution 2016-172, adopting the proposed budget for the year 2017 Resolution 2016-173, setting payable 2017 Truth-in-Taxation meeting date Page 9 of 9