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The Birthplace of Minnesota www.ci.stillwater.mn.us
CITY COUNCIL MEETING MINUTES
May 1,2018
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
Fire Chief Glaser
Police Chief Gannaway
Community Development Director Turnblad
Finance Director Harrison
Public Works Director Sanders
City Clerk Ward
OTHER BUSINESS
Urban Area Plan Development
Community Development Director Turnblad informed the Council of increasing pressure to
develop the Minar Neighborhood,which has 2.5 acre lots,on-site septic systems and private wells.
The Comprehensive Plan envisions splitting the lots into smaller parcels and servicing them with
sanitary sewer and municipal water. However, no strategy has been developed yet for extending
those utilities. With the help of a civil engineer, four property owners in the neighborhood have
created a concept development plan for their lots, which is a series of cul-de-sacs branching off
of Minar Avenue and Minar Lane. Sanitary sewer and water would be extended from Boutwell
Road. However,without the participation of the property owners on the opposite side of the street,
it is not economically feasible for the four property owners to extend sewer and water.
Consequently, without City coordination of the extension of these utilities, the Comprehensive
Plan is not feasible to implement as envisioned. Therefore, staff believes it is necessary to adopt
a strategy for future development of this neighborhood.
Mr. Turnblad then discussed the two general development options: 1) development with
municipal utilities, or 2) development without municipal utilities. If the City can find funds to do
the project, then as property owners want to develop, then they can pay their share. It could be
decades before some of them want to develop, so the City would still be carrying that charge. Or
the City could justify allowing the on-site septic systems to remain because this neighborhood
pre-existed development. A development moratorium may be advised. The Met Council has
agreed that pre-existing neighborhoods would not have to meet the five units per acre urban
density standard required for redevelopment and new development. Mr. Turnblad stated he feels
the most efficient plan is do a public project if the City can find a way to finance it.
Councilmember Weidner asked if the Water Department's approval would be needed to extend
the utilities. He feels it is ridiculous to have a separate Water Department. Mr. Turnblad replied
City Council Meeting May 1, 2018
the City would likely fund both sewer and water via a bond. Staff would consult the Water
Department if the Council agrees.
City Attorney Magnuson confirmed that with large projects, the City customarily bonds for both
water and sewer, and other utilities as a matter of efficiency. The City would not be able to assess
any property owners until after the City's Joint Powers Agreement with Stillwater Township
expires in 2020.
Councilmember Junker stated he feels extending public utilities is the best long term option.
Mr. Turnblad suggested enacting a moratorium to prevent property owners from splitting their
lots prematurely. Staff will initiate a feasibility study, to include neighborhood meetings, and
investigate the possibility of a development moratorium.
Update on 4th of July Celebration
City Administrator McCarty reported that planning for Stillwater's 2018 July 4th Celebration is
well underway. He credited Councilmember Polehna for his fundraising and organizing efforts.
Fundraising has outpaced the budgeted amount ($10,000 budgeted and $25,500 pledged).
WDGY-FM may simulcast the event(costing$500). St. Croix Jazz Orchestra is requesting$2,600
support from the City. Staff is working with Jim Coughlin, Battery I, 1st US Artillery for civil
war cannons(costing$2,100)and Paul Barber of BAM! Productions for bands at the amphitheater
prior to fireworks (costing $4,000); and preparing an application for a potential US military
aircraft flyover.Mr.McCarty also stated that Councilmember Polehna was contacted by Universal
Studios regarding rights to play music from an upcoming movie. He requested Council action
authorizing payment for the St. Croix Jazz orchestra, cannons and bands.
Motion by Councilmember Junker, seconded by Councilmember Weidner, to approve the additional
activities for the July 4th celebration and associated costs as presented. All in favor.
Badge Presentation- Chris Zeuli
Fire Chief Glaser announced the promotion of Captain Chris Zeuli to Assistant Fire Chief,noting
Mr. Zeuli has over 27 years of service to the community.
STAFF REPORTS
Police Chief Gannaway reminded the Council of the Bike Rodeo Saturday, May 5. He also stated
the pay lots are now functioning. Mayor Kozlowski informed Chief Gannaway of calls about
motorcycle noise.
Public Works Director Sanders stated the Phipps Art Center's art bench will be installed in Pioneer
Park for a May 30 unveiling ceremony. He updated the Council on the removal of Ice Castle
materials. He reported the river should crest today at 686.5 feet.
City Administrator McCarty reported that the City's request for State funding for the St. Croix
riverbank restoration and integrative walkway is proceeding in the House and Senate, and the
City's lobbyist is tracking it. A resolution regarding the proposed slow/no wake zone is being
prepared and staff is waiting for the DNR to advise who it goes to next.
Councilmember Polehna stated that a master plan for the St. Croix Valley Rec Center would help
facilitate fundraising efforts, as foundations usually want to see a master plan.
Fire Chief Glaser updated the Council on the strategic planning process; planning sessions will
be held May 16-18. Councilmember Weidner responded that without involving the Council, a
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City Council Meeting May 1, 2018
strategic plan is premature. He would like to have community standards in place and determine
what staffing is needed before continuing with a strategic plan. Fire Chief Glaser stated he will
talk with the consultant to outline a game plan involving the Council.
Mayor Kozlowski recessed the meeting at 5:22 p.m.
RECESSED MEETING 7:00 P.M.
Mayor Kozlowski called the meeting to order at 7:03 p.m.
Present: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna
Absent: None
Staff present: City Administrator McCarty
City Attorney Magnuson
Police Chief Gannaway
Public Works Director Sanders
Community Development Director Turnblad
City Clerk Ward
PLEDGE OF ALLEGIANCE
Mayor Kozlowski led the Council and audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
Possible approval of minutes of the April 17, 2018 regular meeting
Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to approve the
minutes of the April 17, 2018 regular meeting. All in favor.
PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS
Proclamation: 2018 U12B Girls Hockey State Champions
Motion by Councilmember Polehna, seconded by Councilmember Weidner,to proclaim May 1,2018
U12B RED Girls Hockey Team Day. All favor.
Councilmember Polehna read the proclamation and congratulated the team.
Denise Pontrelli, Superintendent of Stillwater Area Schools
Denise Pontrelli, Superintendent, shared strategic plan accomplishments and upcoming initiatives
toward transforming the schools for the new economy.
Pollinator Friendly Alliance - Laurie Schneider
Laurie Schneider, Pollinator Friendly Alliance, presented an overview of activities of the
Alliance.
Proclamation: PowerUp 4 Kids Week
Marna Canterbury, PowerUp 4 Kids, explained the PowerUp program. Mayor Kozlowski read a
proclamation designating May 5-12 as PowerUp 4 Kids Week.
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City Council Meeting May 1, 2018
Service Awards: Kim Swanson - Charter Commission, Jared Prom - Traffic Safety Committee and
Marcela Kelton, Human Rights Commission
Mayor Kozlowski recognized Kim Swanson for over nine years of service on the Charter
Commission, Jared Prom for nine years of service on the Traffic Safety Review Committee, and
Marcela Kelton for three years of service on the Human Rights Commission.
Bike to School Day - Roger Tomten
Roger Tomten, Sustainable Stillwater, updated the Council on initiatives to advance biking in the
community. He noted that Wednesday, May 9 is Bike to School Day. Rick Heidick, Sustainable
Stillwater, reported on a bike giveaway held in conjunction with Bikes for Kids.
2018 Lumberjack Days Update - The Locals
No representatives were present.
OPEN FORUM
There were no public comments.
CONSENT AGENDA
Resolution 2018-090, directing payment of bills
Resolution 2018-091, approval of 2018 Sculpture Tour Contract with ArtFarm LLC
Resolution 2018-092, approval of 2018 Stillwater Criterium Event and Contract
Resolution 2018-093, approving new tobacco license for Fog E-Cig Stillwater, LLC, DBA: Fog
E-cig
Resolution 2018-094, approving license agreement with ILHC of Stillwater(Lakes at
Stillwater)
Resolution 2018-095, a resolution approving a single taxing district for a lot combination
Resolution 2018-096, approving cooperative agreements with Washington County for
maintenance of traffic control signals on Manning Avenue
Possible approval of NILMDTS Event—September 8, 2018
Resolution 2018-097, resolution accepting cash donations
Resolution 2018-098, resolution authorizing the execution of Tax Increment Revenue Note,
Assignment of Rights under Development Contract, Amended and Restated Parking Use
Agreement and First Amendment to Assessment Agreement and Assessor's Certificate—
Crosby Hotel Project
Possible approval of sanitary sewer adjustment
Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt the Consent
Agenda.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna
Nays: None
PUBLIC HEARINGS
Case No. 2018-14. A public hearing to consider a request by the City of Stillwater, applicant, for the
consideration of a Zoning Text Amendment(ZAT)to regulate wireless facilities in City Code Section
31-101: Definitions, 31-209: Design Permit, 31-400: Floodplain Overlay District, and Section 31-
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City Council Meeting May 1, 2018
512: Regulation of Radio and Television Towers. The aforementioned Case will also affect City Code
Section 22-7 Heritage Preservation Commission and Chapter 24 Streets, Alleys and Public Property.
City Administrator McCarty requested that the public hearing be tabled to the May 15, 2018
meeting.
Mayor Kozlowski opened the public hearing.
Motion by Councilmember Menikheim, seconded by Councilmember Junker, to table to May 15,
2018 the public hearing to consider a request by the City of Stillwater, applicant,for the consideration
of a Zoning Text Amendment (ZAT) to regulate wireless facilities in City Code Section 31-101:
Definitions, 31-209: Design Permit, 31-400: Floodplain Overlay District, and Section 31-512:
Regulation of Radio and Television Towers. All in favor.
Case No. 2018-11. A public hearing to consider a request by Stillwater Mills Commercial Partners,
LLC,property owner and Patrick Juetten,applicant,for the consideration of a Conditional Use Permit
amendment(2003-83)to remove the condition requiring public use of the commercial parking garage
after business hours and on weekends for the property located at 350 Main Street North in the CBD
district. PID 2803020130183.
Community Development Director Turnblad stated that in November 2003, the City Council
approved a Special Use Permit for Stillwater Mills on Main, which included Condition 6(J)
requiring that all commercial parking be available for use by the general public during the hours
when the commercial properties are not open for business. The 72-space commercial parking area
is located on the ground level of the parking garage. The parking area for the condominium
residents is separated from the commercial parking area and has a separate entrance. The 72
commercial spaces have not been made available to the general public after hours as required in
Condition 6(J). When this condition was brought to the attention of the current representative for
the Mills on Main commercial property owners, he stated that his group acquired the property
through foreclosure and the condition was not disclosed to them. City staff explained that either
the 72 spaces would have to be made available to the general public after hours, or the owner
would have to request that the City Council delete Condition 6(J) from the Special Use Permit.
Patrick Juetten, Chief Manager of Stillwater Mills Commercial Partners, has submitted an
application requesting deletion of Condition 6(J) from Special Use Permit Resolution 2003-241.
Mr. Turnblad stated that the City has received numerous emails from residents of Stillwater Mills
on Main supporting the removal of the condition. The Downtown Parking Commission on
April 19, 2018 unanimously recommended removing the condition because 1) public parking
improvements have been made in the immediate neighborhood of the Mills on Main facility;
2)the project meets or exceeds all of its parking requirements; and 3) no parking mitigation was
required.
Councilmember Weidner asked, if it was required to be open to the public, why wasn't it built as
such? Mr. Turnblad stated the parking garage was built per the design that was approved by the
Council.
Mayor Kozlowski opened the public hearing.
Patrick Juetten, Manager of Stillwater Mills Commercial Partnership, which owns the leasable
office space and the commercial garage at 350 Main Street, stated his company purchased the
property from two different owners and re-parceled it back under one ownership structure in 2012.
He was given no information from the sellers as to public use of the parking garage. As of today
the commercial space is 100%leased to two tenants. He stated he first became aware of the public
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City Council Meeting May 1, 2018
parking condition about 16 months ago when the Crosby Hotel proposal came forward. The
garage is taxed as a separate parcel at approximately$6,500 a year. Mr. Juetten further stated it is
a competitive advantage to have exclusive parking for the commercial businesses. They have 54
out of the 72 stalls. The extra stalls that are not used for business are available to the residents for
guests, essentially taking cars off the street. If RBC continues to expand, they may require the
remainder of the parking. He asked to delete this condition because the garage is not designed for
public use. It is an L shaped, dead-end garage with small automatic doors, lots of sharp corners,
recesses for electrical, and one entrance and one exit. He expressed concerns about the potential
for crime with public use, because it is heated in winter and has no windows. He added that the
concrete post beam building was built to support load structures above, but was not designed to
support impact into the posts. He has not found this type of arrangement in any other building
downtown. If the condition is enforced, he will see an increase in costs for maintenance and
upkeep. Pay machines and a surveillance system would cost about$250,000 or about$83,000 out
of pocket annually to accommodate this provision. They would have to charge $15-20 for two-
hour use to break even.
Dave Luth, 350 Main Street North, President of Stillwater Mills on Main Homeowners'
Association, spoke for residents of the 92 homes. He presented concerns about the City's intent
to enforce the requirement about public parking. He summarized residents' concerns about
security, guest parking, impact on residences and public bathrooms. He asked the Council to
approve the request to delete the condition.
Dennis Moline, 350 Main St., Unit 348, Vice President of the Board, representing the
Homeowners' Association, discussed the layout, security and safety of the garage and the
vulnerability of building security. He explained several scenarios that could happen: vandalism
to mechanical, water supply, sewage system, fire suppression system, and most importantly, gas
lines that run the entire length of the garage. Someone could come in with a truck with a cutting
logging chain and vandalize the gas lines, causing an explosion that would take out the whole
front of the building and damage surrounding buildings. Mr. Moline asked the Council to amend
the Conditional Use Permit to remove the condition.
Jerry Regan,resident of Unit 318, stated that the original building plans were approved as part of
the CUP. The City should have some responsibility for telling the original developer to redo the
public parking if it was to be public parking. He feels that public safety demands that it not be
public parking because it will become an attractive nuisance to people who want to get out of the
cold weather. People have been accosted in public parking lots. He feels it is not in the interest of
public safety to allow the space to be open to the public at all hours of the day.
George Nelson, resident of Unit 456, stated that the new owners were not aware of the condition.
The property is fully developed and 100% occupied, is a lovely place to live and a great asset to
the City. Without eliminating the requirement, the City has the potential of destroying the
residents' lives.
Mayor Kozlowski closed the public hearing.
Councilmember Junker stated that he was on the City Council when Mills, Terra Springs and the
Lofts were developed.They were controversial because downtown condos were new to Stillwater.
He thinks that the original developer came to the City and offered that the public could park in
the garage when the businesses were not operating to eliminate some of the concerns about the
building of the condos. In hindsight,the condition should not have been included. The commercial
businesses bring clients to downtown Stillwater 365 days a year and take parking pressure off
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City Council Meeting May 1, 2018
Main Street. Councilmember Junker recalled when he managed US Bank in downtown Stillwater
for about 10 years, they opened the parking stalls under the bank to the public on nights and
weekends and one year later they had to install a gate due to the damage from graffiti and
vandalism.
Councilmember Weidner stated he views it as a condition that existed when the property owners
purchased the property, including the commercial side. He feels the condition should remain and
how the property owners turn it into a public parking lot is their decision.
After comments from the audience, Mayor Kozlowski reminded the audience that the public
hearing is closed.
Councilmember Menikheim commented this is the first he has heard about the issue. He questions
what problem the Council is trying to solve by denying the request. He agrees with
Councilmember Junker and supports eliminating the condition.
Councilmember Polehna noted he is torn.He understands the safety concerns.He called the City's
previous development director who reminded him the condos were supposed to include a public
bathroom, but did not. He would prefer a compromise. He is not willing to totally delete the
condition tonight, but would like to sit down and talk with the property owners.
After comments from the audience, Mayor Kozlowski again reminded them the public hearing is
closed.
Mayor Kozlowski stated he feels similar to Councilmember Polehna. He recognized the garage is
not equipped for public parking. In his time on the Council, he has seen numerous developers
come in, list a bunch of things they are going to do for residents, and then swiftly forget all of
them. He sees the Council's job is to hold the developers to these conditions. He is not willing to
give up the public parking without first meeting with property owners and coming to an
agreement. He recognized that anybody could drive into the building during the day and do the
sort of damage that worries the residents about night and weekend parking. He feels the residents
should consider themselves lucky that this issue is just coming up now and they have not had to
deal with this for 14 years.
Mayor Kozlowski reminded the audience the public hearing is closed.
Motion by Councilmember Polehna, seconded by Councilmember Junker, to table the request by
Stillwater Mills Commercial Partners, LLC, property owner and Patrick Juetten, applicant, for the
consideration of a Conditional Use Permit amendment (2003-83) to remove the condition requiring
public use of the commercial parking garage after business hours and on weekends for the property
located at 350 Main Street North in the CBD District, and to meet with the owner of the building and
possibly with homeowners to try to work out an agreement.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker and Polehna
Nays: Councilmember Weidner
UNFINISHED BUSINESS
Discussion on Ordinance amendment to allow outside events in PA, Public/Institutional Zoning
District
Community Development Director Turnblad presented the first draft of an ordinance that would
add the PA, Public/Institutional Zoning District to the list of districts that allow outside events
with a Special Use Permit. The BP-I, Business Park— Industrial Zoning District was also added
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City Council Meeting May 1, 2018
in anticipation of the Lift Bridge Brewery facility being planned for the BP-I property just west
of the Lakeview Clinic. He asked for general comments on the amendment.
Mayor Kozlowski remarked the amendment memorializes what the City is trying to do.
Councilmember Weidner stated he would prefer to address the inclusion of the BP-I Business
Park district later. Councilmember Menikheim agreed.
Mr. Turnblad replied he will delete the BP-I district and further refine the amendment.
NEW BUSINESS
Possible approval of 2018 Summer Tuesdays Event and Contract
City Clerk Ward reported that Summer Tuesdays is proposed to take place on seven Tuesdays
from July to August, from 4:00 p.m. to 11:00 p.m. They have requested a waiver of the noise
ordinance to 11:00 p.m. The application for 2018 is the same as 2017, which entails doing the
movie in the new amphitheater, using parking lot 5 for food vendors, and the retail vendors will
be in the park instead of a parking lot. Staff recommends that a minimum of$500 be charged to
be consistent with other 1-day events, even though the event will take place on seven Tuesdays.
There have not been any issues in the past, therefore staff recommends approval of the noise
waiver until 11:00 p.m. and payment of fees by June 15, 2018.
Cory Buettner, Summer Tuesdays, requested the park use base fee be waived. He pointed out the
event is free and operates on a very small budget.
Motion by Councilmember Weidner, seconded by Mayor Kozlowski,to adopt Resolution 2018-099,
approval of 2018 Summer Tuesdays Special Event, Contract and Waiver to the City's Noise
Ordinance, and to waive the $3,500 base fee.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski
Nays: None
Possible approval of plans and specifications for 2018 Street Improvement
Public Works Director Sanders stated that plans and specifications for the 2018 Street
Improvement Project are near completion. Staff requests approval for the plans and specifications
and authorization to request bids. Bid results will be presented to Council at the June 5 meeting.
Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt Resolution
2018-100, approving Plans & Specifications and Ordering Advertisement for Bids for 2018 Street
Improvement Project(Project 2018-02).
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski
Nays: None
Possible ordering preparation of feasibility report for the 2018 Sidewalk Rehabilitation Project
Public Works Director Sanders reported that $100,000 is budgeted for a sidewalk project this
year, to include downtown and the north hill. He requested authorization to prepare a feasibility
study.
Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to adopt Resolution
2018-101, resolution ordering preparation of Feasibility Report for 2018 Sidewalk Rehabilitation
Project (Project 2018-03).
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski
Page 8 of 10
City Council Meeting May 1, 2018
Nays: None
Possible approval of appointments to the Downtown Parking, Heritage Preservation, Human Rights,
Parks and Recreation and Planning Commissions and the Traffic Safety Review Committee
City Clerk Ward provided a list of recommended appointments to the commissions per the chairs
and liaisons.
Motion by Councilmember Polehna, seconded by Councilmember Junker,to adopt Resolution 2018-
102, approval of appointments to the Commissions of Downtown Parking, Heritage Preservation,
Human Rights, Park and Recreation, and Planning.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski
Nays: None
Request for a Special Meeting on May 15, 2018 —4:30p_m.
City Clerk Ward stated that because of the number of items scheduled for the monthly 4:30
meetings staff is requesting a special 4:30 meeting on May 15 to discuss the updating of the City
Code Chapter 30 — Garbage, Chapter 22 — City Administration, adding a youth member on the
Human Rights Commission and Council/Boards and Commissions Handbook (part of the
Strategic Plan).
Motion by Councilmember Junker, seconded by Councilmember Polehna,to set a special meeting for
4:30 p.m. on May 15.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski
Nays: None
COMMUNICATIONS/REQUESTS
There were no communications/requests.
COUNCIL REQUEST ITEMS
There were no Council request items.
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 Menikheim, to adjourn the meeting
to closed session at 9:21 p.m. All in favor.
Teoz owski, Mayor
ATTEST:
0/tZ/1./ �1,7•
Diane F. Ward, City Clerk
Resolution 2018-090, directing payment of bills
Resolution 2018-091, approval of 2018 Sculpture Tour Contract with ArtFarm LLC
Resolution 2018-092, approval of 2018 Stillwater Criterium Event and Contract
Page 9 of 10
City Council Meeting May 1, 2018
Resolution 2018-093, approving new tobacco license to Fog E-Cig Stillwater, LLC, DBA: Fog
E-cig
Resolution 2018-094, approving license agreement with ILHC of Stillwater(Lakes at
Stillwater)
Resolution 2018-095, a resolution approving a single taxing district for a lot combination
Resolution 2018-096, approving cooperative agreements with Washington County for
maintenance of traffic control signals on Manning Avenue
Resolution 2018-097, resolution accepting cash donations
Resolution 2018-098, resolution authorizing the Execution of Tax Increment Revenue Note,
Assignment of Rights under Development Contract, Amended and Restated Parking Use
Agreement and First Amendment to Assessment Agreement and Assessor's Certificate—
Crosby Hotel Project
Resolution 2018-099, approval of 2018 Sumer Tuesdays Special Event, Contract and Waiver to
the City's Noise Ordinance
Resolution 2018-100, approve Plans & Specifications and Ordering Advertisement for Bids for
2018 Street Improvement Project(Project 2018-03)
Resolution 2018-101, resolution ordering preparation of Feasibility Report for 2018 Sidewalk
Rehabilitation Project(Project 2018-03)
Resolution 2018-102, approval of appointments to the Commissions of Downtown Parking,
Heritage Preservation, Human Rights, Park and Recreation, and Planning
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