HomeMy WebLinkAbout2017-10-03 CC MIN 216 4th Street N, Stillwater, MN 55082
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CITY COUNCIL MEETING MINUTES
October 3, 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
Public Works Director Sanders
Finance Director Harrison
City Clerk Ward
OTHER BUSINESS
Discussion on Special Event Policy
City Administrator McCarty summarized proposed changes to the Stillwater Event Policy which
relate to fee structure, submittal dates, and application materials. He explained that the policy does
not address limiting the total number of events.
Mayor Kozlowski asked if the $500 or $1,000 per-day fee is for any park; and Mr. McCarty
replied that the per-day fee is intended to apply to Pioneer Park and Lowell Park, not the smaller
parks. He added that most events with contracts have a base fee structure with individually
negotiated fees instead of a per-day fee.
On a question by Councilmember Weidner about the purpose of the per-day fee, Mr. McCarty
replied that it is to assist with costs of maintaining the turf and other wear and tear on facilities.
Councilmember Weidner remarked that there are many smaller events that do not warrant a
$1,000 fee; and City Administrator McCarty responded that many events would not incur the fee
under the proposed policy. The proposed policy sets triggers for determining which events require
a permit application.
Councilmember Junker remarked that the proposed fees are a good start but may need to be fine-
tuned.
Councilmember Menikheim agreed, and added that the City needs to determine whether it wants
to be known as an event city. He suggested an event coordinator may be needed.
Councilmember Polehna noted that for 20-25 years,the Council has discussed the issue of whether
or not to limit the number of events. He agreed that smaller gatherings, such as a neighborhood
street party should not be required to apply for a permit and incur a fee.
City Council Meeting October 3, 2017
Councilmember Weidner inquired how to safeguard against strict application of the policy, and
allow individual interpretation and changes when necessary. City Administrator McCarty
suggested allowing staff to have flexibility in dealing with issues that come up, and have a process
for appeal if necessary. He likes the idea of hiring an event coordinator who could coordinate all
these elements. He noted that the City budgeted for a facilities manager for later in 2018 whose
scope of responsibilities has not been determined yet. He agreed to take the proposed policy back
to staff to look at some of the questions that were raised during the discussion.
White Bear Lake Level Ruling
City Administrator McCarty reported that on August 30, 2017, Ramsey County District Court
issued a decision regarding the lake level on White Bear Lake, that potentially impacts the City
of Stillwater. The Court's decision requires the Department of Natural Resources(DNR)to review
appropriation permits for groundwater wells within a 5 mile radius of White Bear Lake to verify
compliance with state statutes and codes relating to groundwater usage. The DNR has stated it
will appeal the Court's decision. City staff and Water Board staff will monitor the status of the
Court ruling and update the Council as necessary.
Discussion on Second Street Ramp
City Administrator McCarty indicated that a local development team comprised of Mark Sweet,
Mike Hoefler and Jim Boo have submitted a concept plan for a new municipal parking ramp on
Second Street between Olive Street and Chestnut Street.
Mike Hoefler explained that his firm moved to a new Hudson office park and would like to return
to Stillwater. He would propose a partnership with the City for a four-level ramp on the west side
of Shorty's property that would net the City about 250 parking stalls. Part of Shorty's building
would be developed into a 7,200 square foot retail area on the first floor, offices on the second
floor, six custom apartments on the third floor, and the fourth floor would be the City's parking
area with air rights. He presented schematics showing the plan. He stated that the ramp would
have access off Second, Olive, and Chestnut Streets.
Councilmember Weidner asked if Mr. Hoefler's group would pay for the ramp; Mr. Hoefler
replied no, his group would pay for building the 60 stalls needed for the Shorty's redevelopment.
Councilmember Junker pointed out that considering the 48 stalls in the current city lot that would
be lost for construction of the ramp, and the 60 needed for Shorty's redevelopment, the proposal
would net roughly 150-160 spaces for the City.
Mr. Hoefler explained that at approximately $20,000 per stall the ramp would cost approximately
$5 million for the infrastructure with the building uses, this project is estimated to cost about $7
million.
Mayor Kozlowski stated the proposal looks good but much discussion is needed about how to
fund the construction of the ramp.
Councilmember Polehna stated the City also needs to calculate how many parking spots are
needed.
Councilmember Weidner added that another factor to consider is the change of use and ownership
of the former Armory, which has virtually no parking.
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City Council Meeting October 3, 2017
Councilmember Junker commented that it seems to be a great site for parking,being built into the
hill, with three exits. There seems to be no other site for a parking garage. However, the building
looks massive stretching from Olive to Chestnut Streets. Mr. Hoefler responded that the building
is about 250 linear feet and that,from a design standpoint,the team intends that half of the building
would have its own identity and the parking ramp would have a different look to it. The building
would be built into the hill.
Councilmember Weidner stated it's an interesting concept, but he does not know where it would
be in the City's plan to develop that property or where the funding could come from.
Councilmember Menikheim agreed it is an intriguing idea that warrants more discussion.
Discussion on Old Armory
City Administrator McCarty explained that CVII Holdings, LLC of Woodbury has a purchase
agreement for the former Armory building on Chestnut Street. A principal challenge for
redevelopment of the site may be parking. Prior to closing on the property, the corporation is
vetting redevelopment potential and tenant possibilities. The group is requesting Council input.
Matthew Wolf, attorney, CVII Holdings, LLC, stated that the proposed closing date is
November 7. Developers would like to discuss the parking problem. There are six on-site parking
spots. There is some additional land on the parcel they are acquiring that is not needed for
redevelopment, which they could contribute to get more spots out of the parking garage as
proposed during the previous agenda topic. He explained that the main building would likely be
converted to offices (general and/or medical) or an event center. The attached high ceilinged
garage would be either a gym/fitness center or a micro-brewery/craft distillery with a rooftop patio
over the garage. He stated that the development is not feasible without the use of historic tax
credits, which require leaving much of the interior in tact. If converted to an event center, there
would be a parking deficiency according to City staff. Other uses would have lower parking
requirements than the previous Armory use considering weekend drills.
Councilmember Junker stated tha he was surprised with the parking calculations. He is excited
about the potential uses, but curious how parking mitigation could be worked out.
Councilmember Weidner agreed with Councilmember Junker in questioning the parking needs as
stated. He suggested the developers contact the HAF Group to figure out how to contribute to a
parking ramp.
Mr. Wolf responded that most discussions with possible tenants have centered around parking.
His team will need to determine how to partner with the HAF Group and with the City. However
he does not think there is enough room in their proforma to contribute capital for the ramp. He
added that if there is no clear solution for parking or how to get a tenant for the building, there is
still time for his team to step out of the way.
Brian Larson, architect working with the development team, reminded the Council that the
Armory is an existing historic building and an asset to the community. He continued by stating
that its use may be intensified but the building is there already and should be supported. Any reuse
of the building will require more parking.
Mr. Wolf added that he would like to see something worked out where the building can be put
back into use in the near term.
Page 3 of 10
City Council Meeting October 3, 2017
STAFF REPORTS
Councilmember Sanders reported that the National Weather Service has forecast the St. Croix
River to rise seven feet in the next five to six days. There are two planned events in Lowell Park
the next two weekends which may require Chestnut Street for their staging area.
Motion by Councilmember Weidner, seconded by Councilmember Polehna, to approve the use of
Chestnut Street and support the application for a MnDOT permit for its use. All in favor.
Mayor Kozlowski recessed the meeting at 6:10 p.m.
RECESSED MEETING 7:00 P.M.
Mayor Kozlowski called the meeting to order at 7:06 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
Public Works Director Sanders
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 September 19, 2017 regular meeting minutes
Motion by Councilmember Menikheim, seconded by Councilmember Junker, to approve the
September 19, 2017 regular meeting minutes. All in favor.
PETITIONS,INDIVIDUALS, DELEGATIONS & COMMENDATIONS
Proclamation: Fire Prevention Week
Mayor Kozlowski read a proclamation designating October 8-14, 2017 Fire Prevention Week.
Fire Chief Glaser reported on 2017 Fire Prevention Week activities and invited the public to a
Fire Department open house on Saturday, October 7.
Badge Presentation/Oaths to Firefighters - Dan March, Ian Perkins, Aaron Johnson and Matt
Richardson
Fire Chief Glaser gave the oath to new firefighters who have passed their one-year probationary
period.
Page 4 of 10
City Council Meeting October 3, 2017
Ice Castles - Amanda Roseth (Possible approval of Ice Castle Event and Contract)
City Administrator McCarty explained that Ice Castles proposes to build their structure in Lowell
Park in roughly the same location as last year. He indicated provisions that differ from last year,
including hours of operation, and clean-up and removal of related structures. He stated that the
fee structure is similar to 2017. Staff recommends approval of the proposed contract.
Amanda Roseth, Ice Castles, stated the event was well received last year.
Mayor Kozlowski asked if the organizers could clean up the area more expeditiously after the event
is over, and Ms. Roseth responded that they will look at options to see if there is a way to expedite
the thawing of the ice and possibly leave Sam Bloomer Way open to access the gazebo.
Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to adopt Resolution
2017-198, resolution approving the Ice Castles Agreement.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna
Nays: None
Art Sculpture - Anastasia Shartin, The Phipps
Public Works Director Sanders stated that staff has been working with the Phipps Center on an
art bench to be installed in Pioneer Park. The Parks Commission recommends approval.
Anastasia Shartin,Phipps Center for the Performing Arts, and artist Allen Christian explained the
art bench project. The bench would honor the work of Red Cross Director Jan George.
Motion by Councilmember Menikheim, seconded by Councilmember Junker, to approve the
placement of the Art Bench in Pioneer Park as proposed.
Music on the River on Sundays in 2018 - Woody McBride
Woody McBride, Genius of Fun Events, explained his concept for a new summer concert series
at Lowell Park on 12 Sunday afternoons in 2018.
Councilmember Junker asked if Mr. McBride had considered less frequent concerts, for instance
twice a month, and Mr. McBride replied that in order to get momentum and interest, the concerts
need to follow a regular schedule; attendance drops fast when people are confused about the dates.
Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to approve the
concept of Music on the River as proposed. Motion passed 4-1 with Councilmember Junker voting
nay.
OPEN FORUM
Bill Howell, the Goodman Group, representing ILHC, the Lakes of Stillwater, thanked the
Council for their support and reminded the Council of the groundbreaking ceremony this Friday
morning.
Robin Anthony, Executive Director of the Greater Stillwater Chamber of Commerce, thanked the
Council for their flexibility regarding the art fair location, given the predicted flooding.
CONSENT AGENDA
Resolution 2017-183, directing payment of bills
Page 5 of 10
City Council Meeting October 3, 2017
Resolution 2017-184, approval of Assignment, Assumption and Novation Agreement
between the City of Stillwater and Geronimo Energy LLC; BHE Renewables LLC;
Gemini CSG1, LLC, Gemini CSG2, LLC, and Gemini CSG3 LLC
Resolution 2017-185, approval of agreement for Museum Services [Police Department]
Resolution 2017-186, approving business name change (DBA/Trade Name) of Rafter's to
Portside
Resolution 2017-187, resolution adopting assessments for water service for various resident
project (L.I. 414-1 & L.I. 414-2)
Resolution 2017-188, approval of cooperative agreement regarding Public Safety related to
2018 National Football League (NFL) Super Bowl Security
Resolution 2017-189, approving employee health insurance plan effective January 1, 2018
Resolution 2017-190, resolution approving contract with Hoisington Koegler Group, Inc. for
professional services to update the Stillwater Comprehensive Plan
Resolution 2017-191, approving the Certified Local Government (CLG) grant acceptance
form from the Minnesota Historical Society
Possible approval Lowell Park Lights
Possible approval quote to repair of Triangle Park steps
Resolution 2017-192, approval of Development Agreement relating to the Lakes of Stillwater
Resolution 2017-193, approving the 2017 Stillwater Harvest Fest Special Event and Contract
Resolution 2017-194, Appointing member to Human Rights Commission
Resolution 2017-195, adopting delinquent cleanup services charges
Resolution 2017-196, adopting delinquent parking mitigation fees
Resolution 2017-197, authorizing the Census 2020 registration and entering into Local
Update of Census Addresses Operation (LUCA) Confidentiality Agreements
Motion by Councilmember Junker, seconded by Councilmember Weidner, to adopt the Consent
Agenda.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna
Nays: None
PUBLIC HEARINGS
There were no public hearings.
UNFINISHED BUSINESS
Possible approval of funding for Main Street Stairs and approval of Addendum No. 2 to Development
Agreement with Stillwater Caves, LLC.
Public Works Director Sanders reported that staff looked at the total cost estimate of$177,000
for repair of the stairs and the wall, and felt there were some costs included for which the City is
not responsible, for instance storm sewer and roof drain costs. Of the $177,000, staff feels the
City should be responsible for about $121,000.
Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to adopt Resolution
2017-199, a resolution approving an amendment to a Development Agreement, authorizing the
advancement of Tax Increment Funds for the repair of damage to a building that is currently being
redeveloped with Tax Increment assistance, and authorizing a loan of funds to TIF District 11 from
other Tax Increment Districts.
Page 6 of 10
City Council Meeting October 3, 2017
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna
Nays: None
Possible second reading of Ordinance 1097, an Ordinance amending the Stillwater City Code Chapter
31, entitled Zoning Ordinance, by amending the Zoning Map of the City to rezone certain property
within the AP-Agricultural Preservation District by adding them to the RA-One Family Residential
District.
Motion by Councilmember Junker, seconded by Councilmember Weidner, to adopt second reading
of Ordinance 1097, an ordinance amending the Stillwater City Code Chapter 31, entitled Zoning
Ordinance, by amending the Zoning Map of the City to rezone certain property within the AP-
Agricultural Preservation District by adding them to the RA-One Family Residential District.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna
Nays: None
NEW BUSINESS
Request by Sterling Black for reconsideration of planning variance for Hazel Place
City Administrator McCarty stated that On September 5, 2017 the Council approved the
preliminary plat for Hazel Place. Approval was for seven lots instead of the eight shown on the
plat. The reason for the smaller number of lots was that a cul-de-sac length variance was granted
by the Planning Commission in January of 2017 for this project, and the variance approval
stipulated that the maximum number of lots could not exceed seven. Sterling Black would like
the Planning Commission to reconsider the reduction to seven lots. Because a variance can only
be asked for once within a 12 month period and this variance was granted in January 2017,
reconsideration prior to January of 2018 would require City Council permission to go back to the
Planning Commission.
Motion by Councilmember Weidner, seconded by Councilmember Polehna, to deny the request for
reconsideration by the Planning Commission in January of 2017 for Hazel Place.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna
Nays: None
Possible approval of Cub Event Permit on private property
Community Development Director Turnblad stated that Cub Foods is proposing to use a portion
of their parking lot for a special event to be held on October 19. Staff recommends approval with
four conditions.
Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt Resolution
2017-200, a resolution approving an outside sales and event permit for Cub Foods located at 1801
Market Drive, Case No. 2017-51.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna
Nays: None
Possible approval of City Facilities ID/Key Card Security Policy
City Administrator McCarty stated that the City Hall/Police Department remodeling project
includes security upgrades which include key card access locks on all external facility doors and
Page 7 of 10
City Council Meeting October 3, 2017
internal doors. Staff has developed a draft ID Card/Key Card policy and requests Council approval
of the policy.
Motion by Councilmember Junker, seconded by Councilmember Polehna,to adopt Resolution 2017-
201,resolution approving identification and key card policy.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna
Nays: None
Possible approval of plans and specifications and authorizing advertisement for bids for Marine Circle
lift station
Public Works Director Sanders explained plans and specifications for the Marine Circle Lift
Station Project and requested that the Council approve the plans and specs and order
advertisement for bids for the project.
Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt Resolution
2017-202,approving plans and specifications and ordering advertisement for bids for the 2017 Marine
Circle Lift Station Improvement Project#2017-07.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna
Nays: None
Possible approval of permission to enter (right-of-entry) to grade for Midnight Real Estate Group
City Attorney Magnuson explained that the developer of the Crosby Hotel would like to begin the
demolition of the former Associated Eye building and begin grading of the site. An agreement for
the public use of the parking deck in the ramp has been reviewed by staff and sent to the
developers for review, but is not completely ready to submit to the Council for consideration.
However, staff sees little risk in allowing the grading to occur and recommends granting the
developer a right of entry.
Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to adopt Resolution
2017-203, approval of permission to enter (right of entry) for Midnight Real Estate Group.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna
Nays: None
COMMUNICATIONS/REQUESTS
There were no communications/requests.
COUNCIL REQUEST ITEMS
Councilmember Polehna mentioned that the Stillwater Human Rights Commission is working
with the Stillwater Area Chamber of Commerce,the Stillwater Independent Business Association
and City Administrator McCarty to arrange for dementia training to make Stillwater a dementia-
friendly community.
Page 8 of 10
City Council Meeting October 3, 2017
ADJOURNMENT
Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adjourn the meeting
at 8:27 p.m. All in favor.
Ted Koz owski, Mayor
ATTEST:
9. 749744,it
. Thomas McCarty, ting City Clerk
Resolution 2017-183, directing payment of bills
Resolution 2017-184, approval of Assignment, Assumption and Novation Agreement
between the City of Stillwater and Geronimo Energy LLC; BHE Renewables LLC;
Gemini CSG1, LLC, Gemini CSG2, LLC, and Gemini CSG3 LLC
Resolution 2017-185, approval of agreement for Museum Services [Police Department]
Resolution 2017-186, approving business name change (DBA/Trade Name) of Rafter's to
Portside
Resolution 2017-187, resolution adopting assessments for water service for various resident
project (L.I. 414-1 & L.I. 414-2)
Resolution 2017-188, approval of cooperative agreement regarding Public Safety related to
2018 National Football League (NFL) Super Bowl Security
Resolution 2017-189, approving employee health insurance plan effective January 1, 2018
Resolution 2017-190, resolution approving contract with Hoisington Koegler Group, Inc.
for professional services to update the Stillwater Comprehensive Plan
Resolution 2017-191, approving the Certified Local Government (CLG) grant acceptance
form from the Minnesota Historical Society
Resolution 2017-192, approval of Development Agreement relating to the Lakes of
Stillwater
Resolution 2017-193, approving the 2017 Stillwater Harvest Fest Special Event and
Contract
Resolution 2017-194, appointing member to Human Rights Commission
Resolution 2017-195, adopting delinquent cleanup services charges
Resolution 2017-196, adopting delinquent parking mitigation fees
Resolution 2017-197, authorizing the Census 2020 registration and entering into Local
Update of Census Addresses Operation (LUCA) Confidentiality Agreements
Resolution 2017-198, resolution approving the Ice Castles Agreement
Resolution 2017-199, a resolution approving an amendment to a Development Agreement,
authorizing the advancement of Tax Increment Funds for the repair of damage to a
building that is currently being redeveloped with Tax Increment assistance, and
authorizing a loan of funds to TIF District 11 from other Tax Increment Districts
Resolution 2017-200, a resolution approving an outside sales and event permit for Cub
Foods located at 1801 Market Drive, Case No. 2017-51
Resolution 2017-201, resolution approving identification and key card policy
Resolution 2017-202, approving plans and specifications and ordering advertisement for
bids for the 2017 Marine Circle Lift Station Improvement Project#2017-07
Page 9 of 10
City Council Meeting October 3, 2017
Resolution 2017-203, approval of permission to enter (right of entry) for Midnight Real
Estate Group
Ordinance 1097, an ordinance amending the Stillwater City Code Chapter 31, entitled
Zoning Ordinance, by amending the Zoning Map of the City to rezone certain
property within the AP-Agricultural Preservation District by adding them to the R-
One Family Residential District
Page 10 of 10