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HomeMy WebLinkAbout2017-08-02 CC MIN Aillwater 216 4th Street N, Stillwater, MN 55082 651-430-8800 The Birthplace of Minnesota www.ci.stillwater.mn.us CITY COUNCIL MEETING MINUTES August 2, 2017 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 and Polehna Absent: None Staff present: City Administrator McCarty City Attorney Magnuson Police Chief Gannaway Fire Chief Glaser Community Development Director Turnblad Public Works Director Sanders Finance Director Harrison City Clerk Ward OTHER BUSINESS Possible approval of development agreement for TIF District#12 City Attorney Magnuson explained the purpose of the development agreement for TIF District #12. The District has been established so that tax increment financing may be provided to the developer of the Crosby Hotel project for reimbursement of costs associated with the building of the parking ramp, to be built adjacent to the hotel, partially on City property. Staff has proposed the project be awarded $1 million in TIF, but the developers maintain that the cost of building the ramp,over and above what it would cost them to build a surface lot,is$2.4 million,based on a$3 million estimated cost of a two-level parking deck and subtracting $600,000, which is the estimated cost of a surface lot. Mr. Magnuson continued that the City owns approximately 1/2 of the square footage of the area of the parking lot and the developer owns the other half. As part of the development proposal, ownership after the parking ramp is built would be converted to a horizontal ownership, with the developer owning the surface portion and the City owning the parking deck, as a condominium unit arrangement. The City would have the right to build upwards with housing or another ramp level. Daniel Oberpriller, CPM Companies, introduced the contractor, Troy Wenck, Reuter Walton Construction. Mr.Wenck explained the difference between the cost of an approximately 60- stall surface lot and a two-level parking structure,which would require additional supports, heat, stairwells, and other elements. The parcel has loose sand and groundwater, making it more complicated to put the weight of a two story ramp on that parcel rather than a surface lot. City Council Meeting August 2, 2017 Mayor Kozlowski asked what the costs would be if the soils were in good condition; and Mr. Wenck replied that the cost of ground improvement is roughly $300,000. The ground improvement will be a little cheaper than conventional pylons. They will use geo piers, drilling a hole and then driving aggregate base into compacted columns. The piers will be 20 feet deep,with approximately 150 of them in groupings of 3,4 or 5 depending on loading. Councilmember Junker questioned if the structure as planned would support a third deck. He feels that the potential for a third deck should be considered in designing the base; and Mr.Wenck answered that, considering the size of the plate with only about 50 stalls on each level, it would be fairly expensive to build a ramp to get up to a third level for only 50 stalls. He believes that a third level may be better suited to housing. Matt Hoefler, HAF Architects, confirmed that the structure is not designed to support another parking deck, but it would be adequate to put housing above. Councilmember Weidner inquired if the developers expect the Council to negotiate the amount of TIF from the dais today; and Mr. Oberpriller responded it is his understanding that the amount of TIF would be agreed upon so the development agreement could be approved. Community Development Director Turnblad acknowledged that from the City's point of view there is no deadline,but the property owners and developers may be under a timeline. Councilmember Weidner asked if he understands correctly that the developers feel the project requires $2.4 million TIF, or there is no deal; and Mr. Oberpriller replied that is correct. Councilmember Junker pointed out that City staffs recommendation is $1 million TIF. Mr. Oberpriller stated that amount came from a previous discussion about per-stall costs. The difference is having to build a structured ramp, not just a surface lot. Mayor Kozlowski commented that when the Council discussed it, it was not based on cost per stall. The suggested TIF amount was a number that the Council felt comfortable with. Chris Diebold, Midnight Real Estate, stated it is not the developers' intention to draw a line in the sand. They are here to explain all the costs involved in building the ramp. The structure will cost$3 million.The hotel could get by with a$600,000 lot. He pointed out that the negotiation has been ongoing and the developers want to form a working relationship with the City on the parking ramp. Councilmember Weidner stated he would like to avoid negotiating as a group from the dais. He would prefer to go to closed session for any further negotiations.Mr. Diebold replied that the developers have always maintained the amount of TIF needed is $2.4 million, while the City has suggested $1 million and perhaps the developers and the City have to renegotiate. Councilmember Junker stated when the project was first proposed he was enthusiastic because there was no TIF involved.When the concept of the City having one deck above the surface was mentioned, that intrigued him. He would like the developers to negotiate more with the City to reach an agreement. Mr. Oberpriller agreed that the Council meeting seems to be the wrong forum to discuss TIF money. Page 2 of 8 City Council Meeting August 2, 2017 Mayor Kozlowski stated more interactions are needed between the developers and City staff. He would like to help the project, but also sees the need to preserve and increase parking. Councilmember Weidner stated he welcomes further negotiation because he feels it is a good project. Motion by Councilmember Menikheim, Weidner to table the Contract for Private Development between the City of Stillwater and Midnight Real Estate, LLC.All in favor. Discussion on layout for Close the Bridge Event-August 12, 2017 Councilmember Polehna led discussion of the August 12 Bridge Closing Party. The Downtown Parking Commission recommended closing Chestnut Street from the bridge promenade to Water Street only. Councilmember Polehna would like to close Chestnut Street from the bridge to Main Street(Concept No. 2) to prevent cars coming too close to the event. Motion by Weidner seconded by Kozlowski to support Concept No. 2, the closing of Chestnut Street from the bridge promenade to Main Street for the August 12 Bridge Closing Party. All in favor. STAFF REPORTS Police Chief Gannaway reported that Night to Unite went well with over 20 block parties. He stated that staff will meet next week to discuss an Enhanced Mutual Aid Memorandum of Understanding with St. Croix County for responding across the river. Community Development Director Turnblad stated that the list of volunteers for the Comprehensive Plan advisory committee is up to 40. He recommends seating 24 members, and he will bring the list to the next meeting for help selecting alternates. Public Works Director Sanders informed the Council with the bridge closing,MnDOT will be adjusting the timing of the traffic signals and will monitor and make future adjustments over the next few weeks. City Administrator McCarty reminded the Council of the 3:30 p.m. August 15 budget work session. Mayor Kozlowski recessed the meeting at 5:14 p.m. RECESSED MEETING 5:30 P.M. Vice Mayor Polehna called the meeting to order at 5:35 p.m. Present: Vice Mayor Polehna, Councilmembers Menikheim,Junker, and Weidner Absent: Mayor Kozlowski Page 3 of 8 City Council Meeting August 2, 2017 Staff present: City Administrator McCarty City Attorney Magnuson Police Chief Gannaway Fire Chief Glaser Community Development Director Turnblad Public Works Director Sanders Finance Director Harrison City Clerk Ward PLEDGE OF ALLEGIANCE Vice Mayor Polehna led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of July 11. 2017 regular and recessed meeting minutes and July 18. 2017 regular meeting minutes Motion by Councilmember Weidner, seconded by Councilmember Junker, to approve the July 11, 2017 regular and recessed meeting minutes and the July 18, 2017 regular meeting minutes.All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS &COMMENDATIONS Comprehensive Financial Report Audit- Chris Knopik, CliftonLarsonAllen Chris Knopik, CliftonLarsonAllen, reviewed the 2016 audit. He reported the audit identified one significant deficiency: record keeping on in-kind contributions which the Library Foundation donates to the library. Overall the audit result was very favorable. Expenses are outpacing revenues in the sanitary sewer fund. He suggested the City consider increasing rates at a minimum to keep up with rate increases from the Metropolitan Council. OPEN FORUM There were no public comments. CONSENT AGENDA Resolution 2017-145, Directing the Payment of Bills Resolution 2017-146, approving the 2017-2018 Labor Agreement between the City of Stillwater and American Federation of State, County and Municipal Employees Minnesota Council No. 5, Local 517 Possible approval of Temporary Liquor License -August 12, 2017 - The Locals - Closing of the Bridge Resolution 2017-147, approving the 2017 Rivertown Fall Art Festival special event, contract and temporary liquor license Possible approval of utility bill adjustments Resolution 2017-148, a resolution vacating the Drainage and Utility Easements in Lot 1, Block 1, Lake Hill Acres, Case No. 2017-08 Possible approval of letter of support for Economic Development program funding for the TH 36/CSAH Manning Avenue Interchange Project Page 4 of 8 City Council Meeting August 2, 2017 Motion by Councilmember Weidner, seconded by Councilmember Junker,to adopt the Consent Agenda. Ayes: Vice Mayor Polehna, Councilmembers Menikheim, Junker and Weidner Nays: None PUBLIC HEARINGS There were no public hearings. UNFINISHED BUSINESS Possible approval of concept PUD for senior living housing facility- Ecumen Councilmember Weidner recused himself from discussion and voting due to a conflict of interest. Vice Mayor Polehna reminded the Council this is not a public hearing; if concept approval is passed,there will be a public hearing in the future. Community Development Director Turnblad stated that Anne Stanfield of Ecumen has requested approval of a Concept Planned Unit Development (PUD) for a future 10,000 square foot expansion of Our Savior's Lutheran Church (OSLC) and the development of an approximately 50,000 square foot, 145-unit Senior Living Care Facility to be located at 114 Brick Street South and 1616 Olive Street West. The Planning Commission held a public hearing on July 12, 2017, which drew input about the need for more detailed analysis of potential traffic impacts,and the aesthetics and massing of the facility and visual impacts on surrounding properties. Mr. Turnblad continued that the Planning Commission ultimately recommended approval with 10 conditions.The next step would be for Ecumen to apply for final PUD,SUP and platting,which requires another set of public hearings.Staff recommends approval of the concept Planned Unit Development with 10 conditions. Anne Stanfield, Ecumen Director of Business Development, introduced Ray Valley, co- applicant and board president of Our Savior's Lutheran Church. Mr. Valley voiced support for the application, and that the church cares about its neighbors and feels Ecumen is the perfect candidate to fulfill Stillwater's need for more senior housing. He added that there is no viable alternative for the present land to remain open space. Ms. Stanfield provided background on Ecumen. She described intergenerational programming through extension of existing walking paths on site and direct connections with church to facilitate engagement between residents and church ministry. She stated the proposal meets setback and height requirements. Ecumen hosted two neighborhood meetings and incorporated feedback into the design proposal regarding mitigating light and sound pollution, water runoff and landscape improvements to screen the building. Architects are also exploring options to reduce mass on the west side. If approved, they will work with the City and County to evaluate pedestrian access around the site. Ms. Stanfield went on to explain how the proposed project supports the goals of Stillwater's Comprehensive Plan, provides housing options for seniors to stay in Stillwater, addresses market demand, and creates new jobs. Page 5 of 8 City Council Meeting August 2, 2017 Mindy Michael, Kaas Wilson Architects, gave an overview of site elements. She stated the building footprint is being kept as compact as possible to keep it pulled back from the property lines. The height is 33'6" and Our Savior's Church is 34'. She provided sketches showing all sides. She noted that the Deer Path neighbor is about 25' lower than the site, so architects propose to introduce as much screening on that side as possible.The building will have low maintenance, highly durable quality exterior materials with true four sided architecture with plenty of decks and residential features. Councilmember Junker asked if the main entrance will be off Brick Street. Ms. Michael replied yes,it comes off Brick aligning with Ramsey.There is a shared agreement for parking access with the church. Vice Mayor Polehna stated he is not opposed to senior living centers but this is his Ward and he wants to make sure everyone works together. He asked how the facility could be stepped back from the neighborhood to reduce impacts,especially in winter when leaves are not on the trees. Ms. Stanfield replied designers have started looking at options to reduce massing on the west side to have less visual impact to those neighbors. Vice Mayor Polehna asked how to mitigate noise impacts on neighbors. Ms. Stanfield responded there are individual air handling units for each apartment and it is not a loud system. Vice Mayor Polehna pointed out there are major concerns from neighbors about traffic. Deer Path has always been a problem, and ten years ago the City looked at ways to remove traffic from Brick.He feels the situation needs to be addressed and engineers need to do a thorough job of determining whether turn lanes and other mechanisms are needed. Ms. Stanfield stated that a condition of approval requires the developers to work with the City and Washington County on traffic safety. Councilmember Menikheim recalled previous projects that drew a lot of emotion, but were ultimately accepted. He would like to keep the emotions and the need for senior housing separate so as not to slow the process down.Vice Mayor Polehna stated he does not disagree but he also represents people in his Ward who have real concerns. Motion by Councilmember Menikheim, seconded by Councilmember Junker, to adopt Resolution 2017-149, a resolution approving a concept planned unit development for Our Savior's Lutheran Church and Ecumen, Case No. 2017-25. Ayes: Vice Mayor Polehna, Councilmembers Menikheim and Junker Nays: None Abstain: Councilmember Weidner NEW BUSINESS Request for Proposals - 2018 Comprehensive Plan Community Development Director Turnblad asked the Council to approve the release of the RFP for planning consultant services for the remainder of the Comprehensive Plan. By consensus, the Council approved the release of the RFP. Page 6 of 8 City Council Meeting August 2, 2017 Possible acceptance and approval of the Main Street Stairs Informational/Interpretive Signage Community Development Director Turnblad reminded the Council that Sara Jespersen was awarded a Stillwater Foundation Great Ideas grant to beautify the Main Street stairs and work has been underway throughout the past few weeks. One component of the project is the installation of an informational/interpretative sign at the base of the stairs. The HPC reviewed the sign at their July meeting and provided recommendations for modifications. Based on the HPC discussion and staff comments, Ms. Jespersen has modified the design of the sign and has met onsite with City Engineer Sanders and Assistant Public Works Superintendent Moore to finalize the location. Sara Jespersen explained the sign and stated she would like to recognize donors somewhere, perhaps with plaques on benches or a light post midway up the stairs. Council consensus was that it would be appropriate to post a plaque recognizing donors on a light post. Motion by Councilmember Menikheim, seconded by Councilmember Junker, to adopt Resolution 2017-150, a resolution accepting an Information/Interpretive Sign and approving its installation at the base of the Main Street Stairs. Ayes: Vice Mayor Polehna, Councilmembers Menikheim, Junker, and Weidner Nays: None COMMUNICATIONS/REQUESTS Transition from CTIB to Washington County Transportation sales tax City Administrator McCarty stated that businesses in Washington County are receiving a form letter from the MN Department of Revenue indicating that the 0.25 percent transit improvement sales and use tax funding the Counties Transit Improvement Board (CTIB) will be ending,with an effective date of September 30, 2017.The Washington County Board of Commissioners have authorized a 0.25 percent sales tax for transportation and transit purposes to begin October 1, 2017, so the sales tax rate in Washington County will not change. COUNCIL REQUEST ITEMS There were no Council request items. ADJOURNMENT Motion by Councilmember Menikheim, seconded by Councilmember Junker, to adjourn the meeting at 6:59 p.m.All in favor. 7 , 111P - Mic ael Polehna,Vice Mayor ATTEST: ,azez:eu Diane F.Ward, City Clerk Page 7 of 8 City Council Meeting August 2, 2017 Resolution 2017-145, directing the payment of bills Resolution 2017-146, approving the 2017-2018 Labor Agreement between the City of Stillwater and American Federation of State, County and Municipal Employees Minnesota Council No. 5, Local 517 Resolution 2017-147, approving the 2017 Rivertown Fall Art Festival special event, contract and temporary liquor license Resolution 2017-148, a resolution vacating the Drainage and Utility Easements in Lot 1, Block 1, Lake Hill Acres, Case No. 2017-08 Resolution 2017-149, a resolution approving a concept planned unit development for Our Savior's Lutheran Church and Ecumen, Case No. 2017-25 Resolution 2017-150, a resolution accepting an Information/Interpretive sign and approving its installation at the base of the Main Street Stairs Page 8 of 8