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HomeMy WebLinkAbout2018-02-20 CC MIN 216 4th Street N, Stillwater, MN 55082 j — 651-430-8800 The Birthplace of Minnesota J www.cl.stillwater.mn.us CITY COUNCIL MEETING MINUTES February 20, 2018 REGULAR MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:03 p.m. Present: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski Absent: None Staff present: City Administrator McCarty City Attorney Magnuson Police Chief Gannaway Community Development Director Turnblad Finance Director Harrison Public Works Director Sanders Public Works Secretary Wolf PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of the January 30, 2018 regular and recessed meeting minutes Motion by Councilmember Weidner, seconded by Councilmember Junker, to approve the January 30, 2018 regular and recessed meeting minutes. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Request for consideration of"No Wake Zone" - Bill Buth and John Koch Bill Buth, Mulberry Point Yacht Harbor, and John Koch, Portside Restaurant, discussed the need for a No Wake Zone on the St. Croix River to allow boats to tie up or anchor without being upset or damaged by the wakes from passing boats. Councilmember Menikheim voiced support. Councilmember Weidner stated that he would support a No Wake Zone in front of the levy wall, and questioned the need to extend it further. Councilmember Polehna agreed that a No Wake Zone in front of the levy wall would help. However, he finds some of the No Wake Zones in communities to the south to be too large and cumbersome for boaters and anglers. Mayor Kozlowski agreed that a No Wake Zone would increase public safety and make the City more boater-friendly. City Council Meeting February 20, 2018 Councilmember Junker stated that he might be interested in a longer No Wake Zone than just in front of the levy wall, now that the City owns the Aiple property, which could be a location for public dockage in the future. Councilmember Weidner indicated that he would rather establish a smaller No Wake Zone now and expand it if needed later on. Councilmember Menikheim remarked that the City also should move the bollards on the levy closer to the water so people can tie their boats up there without creating a hazard. City Administrator McCarty informed the Council that a local unit of government, which holds a public hearing and then takes some action, must initiate the process. The Department of Natural Resources will not approve it unless the Sheriff's Department concurs. The National Park Service and other entities may be involved as well. He suggested that Mr. Buth and Mr. Koch bring back information that is more detailed. OPEN FORUM Alex Gridders, Students Nora Steinmetz, Matthew Bolig, Sophie McDonald, and Chloe Bailey gave a presentation about ArtSpoke, a five-day summer adventure program for children age 5 to 11 that is being offered to the Stillwater community by First Presbyterian Church of Stillwater. Steve Meister,901 South Fourth Street,requested lighted flashing stop signs be installed at Fourth and Churchill Streets. He stated that vehicles frequently fail to stop and pedestrians have been hit in the crosswalk. Mayor Kozlowski pointed out the intersection has many pedestrians due to its proximity to St. Michael's Church and School and Stillwater Junior High. Public Works Director Sanders indicated that he could investigate costs and bring information back to Council. STAFF REPORTS Community Development Director Turnblad informed the Council that the first set of community survey questions have been released via civic engagement software that allows for different analytics and collection of demographic information from participants. City Administrator McCarty apprised the Council of the following. Two Councilmembers will go to Washington, DC, March 11-14 for the National League of Cities Legislative Session. The League of Minnesota Cities will host a legislative conference March 21-22 in St. Paul. Students from the Augsburg University MBA Program are reviewing the City's logo and branding policies, as part of the Comprehensive Plan update. Staff is working with Washington County to draft an Emergency Operations Plan. Vital Aging Network works with communities to enhance the ability of people 50+ to be engaged in their community and will host a kickoff meeting February 26 at Stillwater Public Library. CONSENT AGENDA Resolution 2018-025, Directing the Payment of Bills Possible approval of sanitary sewer adjustments Resolution 2018-026, approving 2018 event and contract Farmers Market Resolution 2018-027, resolution amending Resolution 2018-022, 2018 Fee Schedule Resolution 2018-028, approving the 2018 retainer adjustment for the City Attorney Page 2 of 8 City Council Meeting February 20, 2018 Resolution 2018-029, approving transfer of On-sale and Sunday Liquor Licenses to MAV Hospitality LLC, DBA: Pearl & The Thief(formerly Pub 112) Resolution 2018-030, Resolution approving Construction Management Agreement with Contract with Kraus-Anderson for St. Croix Recreation Center Possible approval to replace the Storage Area Network(SAN) - MIS Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adopt the Consent Agenda. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None PUBLIC HEARINGS Case No. 2017-62. A public hearing to consider a request by Brown's Creek West LLC, property owner, for the consideration of a CUP and Variances to build a new residential condominium at the property located at 107 Third Street North in the CBD district(continued from January 16, 2018). Community Development Director Turnblad reviewed the case. The property owner, Jon Whitcomb, requests: 1) Pursuant to the appealed Planning Commission decision, approval of a Conditional Use Permit to allow the construction of an 11-unit condo complex at 107 Third Street North; 2) Pursuant to the appealed Planning Commission decision, approval of setback variances for the condominium; 3) Approval of the height variance to allow the condominium building to have four stories. Comments have been received from eight neighbors expressing concern for the height of the proposed structure, increased traffic and the concern that HPC design review had not occurred prior to the use permit and variance proceedings. Staff finds that multiple family residential uses in the Central Business District are consistent with the Comprehensive Plan. While the applicant is requesting numerous variances to accommodate the proposed structure, many of the variances requested are common in the historic downtown district. The building use and its setbacks appear to be defensible. However, the Planning Commission found the combination of setback variances and the height variance unacceptable. Staff recommends: 1) conditional approval of the use permit; 2) denial of the height variance; and 3) approval of the setback variances with 15 conditions of approval. On a question from Councilmember Junker regarding if the height variance is not approved,could the developer redesign the building to 35 feet; and Community Development Director Turnblad responded that the penthouse is independent so perhaps it can be removed without redesigning the entire building but he would want the architect to answer the question. Councilmember Menikheim asked if tonight's deliberations include the request for financial assistance for on-site parking mentioned in the staff report; and Mr. Turnblad explained the public benefit that would result if tax increment financing(TIF)were utilized in regard to on-site parking. The previous property owner, Trinity Lutheran Church, had negotiated the right to use 40 public parking spaces in the municipal parking ramp in order to meet parking requirements of a development that was being considered for the property at the time. If the City offers TIF for this project to facilitate construction, including on-site parking, and removes the right of access to those 40 spaces, the public would regain 40 spaces in the municipal parking ramp that could be considered a public benefit. Councilmember Junker referred to the June 2008 development agreement between the City and Trinity, asking if the references to a future Trinity development had been revised to reflect the Page 3 of 8 City Council Meeting February 20, 2018 purchase of the property by the current developer; and City Attorney Magnuson replied that the rights of Trinity were assigned to the present owner. Councilmember Junker questioned if the Council would have had to sign off on that as a City; and City Attorney Magnuson answered yes. Councilmember Weidner asked if this had come before the Council; and Mr. Magnuson replied that he is not sure if it did. Mayor Kozlowski opened the public hearing. Roger Tomten, ARCHNET, explained why he and the developer feel residential is the best use for this site. After looking at many different configurations for parking considering the challenges of topography,the access off Myrtle into the underground parking seemed to be the most efficient layout for the site. The variances requested are very common in the downtown area,as is building closer to the street. There might still be a possibility of doing some mixed use on the main level if they can work out the heights for the lowest level. The plan deals with the topography in the most efficient way possible. Jon Whitcomb, developer, stated that he had assumed that there was communication between all levels at the City relative to the previous development agreement and the parking garage. He subsequently learned that not everyone was informed on the previous agreement; He understood that in purchasing the four lots, he gained the assignment of the 40 parking stalls in the City ramp and would be able to construct a project on the site. Mr. Whitcomb noted that small infill sites present challenges, especially when building something of quality, so he feels they had to push the envelope sideways and that is where the fourth floor came in. He referred to his previous request before the Council to have the property rezoned so a variance would not be needed for the penthouse unit, which is critical to the end project. In looking at other alternatives, he could have utilized the 40 assigned parking spaces but he felt the City would not want to see a residence built with no parking. While he would prefer do a high quality project with all parking on-site, if the fourth floor is unpalatable, however he is open to discussing alternatives. On a question from Councilmember Weidner regarding if the project has gone before the Heritage Preservation Commission (HPC); and Community Development Director Turnblad responded that if variances and the use permit are granted, then it must go before the HPC for design review before a building permit is issued (this is one of conditions of approval). However if the HPC requires substantial design changes,variances could be impacted, so it is a dilemma. If the project had gone to the HPC first, it would have required a level of architectural design that could be difficult to produce if the project approvals have not yet been granted. Mark Balay, 110 Myrtle Street, noted that he and his wife are happy that a project is being proposed on this corner, but it does create some issues. The most dramatic variance to the side yards is on their property line. He is not convinced that the building can be built five feet from the property line without encroaching his property for the excavation. From his perspective,it will look like a five story building because the parking ramp on that side is out of the ground. He would be much more amenable if the developer could reduce the size of the building by five feet. He feels there is no practical difficulty to justify the granting of the variance, it only represents the desire to have more space to sell. Mary Russell, 921 North Second Street, voiced concern about the massiveness of the building. She favors residential housing for the site,but feels this proposal ignores the neighborhood around Page 4 of 8 City Council Meeting February 20, 2018 it and interferes with the view lines. She would like to see the proposal go through design review. She also is concerned about traffic going onto Myrtle Street in the middle of Myrtle Street hill. Mayor Kozlowski closed the public hearing. Councilmember Junker commented that he likes the use however, his major issue is with the height and massing of the building; and felt the site is too small for the building as designed. He also is concerned about the parking entrance 3/4 of the way up Myrtle Street near one of the worst intersections in town. Mayor Kozlowski stated that he could envision cars going down the hill waiting to take a left into the parking garage and backing up the whole intersection. Councilmember Menikheim stated that he shares Councilmember Junker's views. The proposal is for high-end housing that he is not sure the City needs right now. He feels the current design alters the essential character of the locality, the height variance is not consistent with the Comprehensive Plan, garage access as designed is unacceptable, and the massiveness of the building substantially changes the view-shed. He cannot support the project as designed. Councilmember Weidner stated that he would support some residential use based on certain conditions, but not the variances requested. Councilmember Polehna remarked that he favors residential use, but opposes the height and setback variances. Mayor Kozlowski summarized that the Council considers the CUP is acceptable, but not the height or setback variances. City Attorney Magnuson informed the Council that they could deny the request without prejudice, which gives the developer the opportunity to bring revised plans before the Council without waiting a year. Otherwise, if it denied, they cannot come back for a year. Motion by Councilmember Junker, seconded by Councilmember Menikheim, to deny without prejudice the CUP and Variances to build a new residential condominium at the property located at 107 Third Street North. Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski Nays: Councilmember Weidner UNFINISHED BUSINESS Possible approval of second reading of Ordinance 1103, an ordinance amending the Stillwater City Code Section 31-300 Entitled Establishment of Districts by rezoning approximately 15 acres to RB, Two-Family Residential - Heifort PUD Phase II (Case No. 2017-67). Community Development Director Turnblad stated that Todd Ganz,Integrity Land Development, is proposing to develop Phase Two of the 26.1 acre Heifort Hills Planned Unit Development (PUD). The second phase has 24 home sites spread across 10.9 acres of land that will be platted as Heifort Hills Estate. The City Council approved the Final PUD, preliminary plat and the first reading of the rezoning on January 30. Staff recommends approval. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt second reading of Ordinance 1103, an ordinance amending the Stillwater City Code Section 31-300 Entitled Establishment of Districts by rezoning approximately 15 acres to RB, Two-Family Residential - Heifort PUD Phase II (Case No. 2017-67). Page 5 of 8 City Council Meeting February 20, 2018 Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None Possible approval of second reading of Ordinance 1102, an ordinance amending the Stillwater City Code Section 31-325,Allowable Uses in Non-Residential Districts- 1815 Greeley Street South(Case No. 2017-68). Community Development Director Turnblad stated that Michael McGrath, 1815 Greeley, LLC, applied for a Zoning Text Amendment to allow for the continued use of a tenant space in 1815 Greeley Street South as a retail store. The property is zoned BP-I, Business Park — Industrial, which only allows for retail sales of products manufactured on-site. The business in question does not qualify for this allowance. Therefore, the building owner is asking to allow limited retail sales of products not manufactured on-site. On January 30, the Council approved the first reading of this ordinance with the note that the limited retail in this request should be combined with the current allowance for retail sales of products manufactured on the site. Staff recommends approval. Mayor Kozlowski stated that he would not want to open up the potential for 4,000 square feet of retail unrelated to products that are manufactured on site. During the previous discussion, he thought it would be a manufacturer selling items that are associated with the business. Councilmember Junker clarified that this case involves a new tenant whose business is unrelated to the manufacturing. They teach sewing classes and sell sewing related items. Community Development Director Turnblad stated that if the desire is to allow only retail related to items already being manufactured on-site, that would require different wording. Motion by Councilmember Polehna, seconded by Councilmember Weidner, to deny second reading of Ordinance 1102, an ordinance amending the Stillwater City Code Section 31-325,Allowable Uses in Non-Residential Districts - 1815 Greeley Street South (Case No. 2017-68). Ayes: Councilmembers Weidner, Polehna and Mayor Kozlowski Nays: Councilmembers Menikheim and Junker NEW BUSINESS Possible ordering of preparation of feasibility report for the Third Street South project. Public Works Director Sanders informed the Council that Washington County is planning to replace concrete on Third Street South and some costs will be charged to the City. Staff recommends doing a feasibility study to consider charging those costs to the affected property owners. The Armory building currently has only a 1" water service coming in from Third Street so this would be a good opportunity to upsize the water service to 6". The retaining wall along Third Street by the Armory will be affected by the reconstruction of the sidewalk and staff would like to look at assessing that cost to the Armory property. Motion by Councilmember Polehna, seconded by Councilmember Junker,to adopt Resolution 2018- 032, resolution ordering preparation of feasibility report for 2018 County Road 23 Improvement Project, Project 2018-09. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None Page 6 of 8 City Council Meeting February 20, 2018 Possible approval of contract for lobbyist services City Administrator McCarty explained that quotes have been received from lobbyist firms and a small group will interview the top firms. Due to the short timeline with the legislative session beginning, he asked the Council to pass a resolution authorizing the small group to interview the top firms, select the firm and authorize the Mayor to sign the contract. Councilmember Weidner noted the cost range from$25,000 to $60,000. Mr. McCarty replied the range among the top three being considered is $25,000 to $45,000. He stated that once the firm was chosen it would be brought back for ratification by the entire Council. Motion by Councilmember Menikheim, seconded by Councilmember Weidner, to adopt Resolution 2018-031, Resolution approving Legislative Consulting Services for the City of Stillwater. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None COMMUNICATIONS/REQUESTS There were no communications or requests. COUNCIL REQUEST ITEMS Councilmember Polehna reported there would be a Yellow Ribbon pheasant hunt March 17. Councilmember Weidner asked if there has there been any review of the leases or agreements involving the gas docks. City Administrator McCarty replied that staff have been working on a list of all City properties that are being leased. It will be brought to the Council. ADJOURNMENT TO CLOSED SESSION TO CONSIDER OFFERS FOR THE PURCHASE OF REAL ESTATE, PURSUANT TO MINN. STAT. §13D.05 (121 CHESTNUT E) Motion by Councilmember Junker, seconded by Councilmember Polehna, to adjourn the meeting to closed session at 9:27 p.m. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None d Kozlowski, Mayor ATTEST 741v Ad; J. homas McCarty, Actinty Clerk Resolution 2018-025, Directing the Payment of Bills Resolution 2018-026, approving 2018 event and contract Farmers Market Resolution 2018-027,resolution amending Resolution 2018-022, 2018 Fee Schedule Resolution 2018-028, approving the 2018 retainer adjustment for the City Attorney Resolution 2018-029, approving transfer of On-sale and Sunday Liquor Licenses to MAV Hospitality LLC, DBA: Pearl &The Thief(formerly Pub 112) Page 7 of 8 City Council Meeting February 20, 2018 Resolution 2018-030, Resolution approving Construction Management Agreement with Contract with Kraus-Anderson for St. Croix Recreation Center Resolution 2018-031, Resolution approving Legislative Consulting Services for the City of Stillwater Resolution 2018-032, resolution ordering preparation of feasibility report for 2018 County Road 23 Improvement Project, Project 2018-09 Ordinance 1103, an ordinance amending the Stillwater City Code Section 31-300 Entitled Establishment of Districts by rezoning approximately 15 acres to RB, Two-Family Residential - Heifort PUD Phase II (Case No. 2017-67) Page 8 of 8