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HomeMy WebLinkAbout2019-02-05 CC MIN i1 lvvater 216 4th Street N, Stillwater, MN 55082 651-430-8800 The Birthplace of Minnesota J www.ci.stillwater.mn.us CITY COUNCIL MEETING MINUTES February 5, 2019 REGULAR MEETING 4:30 P.M. Vice Mayor Polehna called the meeting to order at 4:34 p.m. Present: Vice Mayor Polehna, Councilmembers Collins, Junker and Weidner Absent: Mayor Kozlowski Staff present: City Administrator McCarty City Attorney Land Police Chief Gannaway Fire Chief Glaser Community Development Director Turnblad Public Works Director Sanders Finance Director Provos Library Director Troendle City Clerk Wolf OTHER BUSINESS Gypsy Moth Presentation Marissa Streifel, Plant Protection specialist with the Minnesota Department of Agriculture, explained a proposed treatment program for Gypsy Moths which have been found in the Croixwood area. The affected areas will be treated with BTK, an organically certified biological insecticide that will be applied aerially in May when the caterpillars first come out. The insecticide is highly "order-specific" and will not harm reptiles, pets or other mammals, nor will it harm pollinators because of the timing of the treatment in the very early spring. The chemical is water-based, and after treatment is completed, residents may water their gardens and rinse the product off the leaves. Next year monitoring traps will be placed to determine whether treatment was successful. The Department of Agriculture will send information to residents in the treatment area. An open house will be held 5-7 pm on February 26, at City Hall. Residents may subscribe to text messages or email updates,view online alerts, or call a hotline number for updated treatment information. Joint Meeting with Water Board on Smart Irrigation Controller Pilot Program Shawn Racine, Safe Water Commission, reviewed the Smart Irrigation Controller Pilot Program. 100 smart controllers will be offered to residents at a reduced cost. The controllers analyze weather patterns in order to determine an anticipated amount of water that a yard needs every day. They can save up to 30,000 gallons of water in one residential yard. Robert Benson, Water Department Manager, explained that Brown's Creek Watershed District and the Water Board are each contributing $9,000 to reduce the residents' cost for a controller to about$30. The total cost for the program will be $39,301. The program will City Council Meeting February 5, 2019 help the City reach its goal of reducing water usage by 20% over the next 10 years. The number of irrigation systems in use is unknown. A survey will be done on backflow preventers to determine how many irrigation systems are in the City. Councilmember Weidner asked if the controllers would be made mandatory after the grant funding is exhausted; and Mr. Benson replied they have not had that discussion. If all 100 controllers are put in use this year, they may consider offering another 100 in 2020, or possibly start a program for commercial systems which would be more expensive but save more water. Water Board Commissioner George Vania added that Woodbury and the University of Minnesota have seen a benefit in using the controllers. The Water Board will have to determine if the savings is worth the investment. STAFF REPORTS Community Development Director Turnblad informed the Council that VistaTech has satisfied their renewable loan of $250,000 because they have met full time employment requirements. Library Director Troendle informed the Council about two upcoming Saturday reading programs. City Administrator McCarty pointed out that Brian McDaniel with Fransen-Moore is available to assist once again with lobbying this session. Mr. McCarty will bring back a list of possible lobbying projects, including the Highway 36/Manning project, which is a high priority for Washington County. Motion by Councilmember Weidner,seconded by Councilmember Collins,to retain the services of the lobbyist.All in favor. Vice Mayor Polehna recessed the meeting at 5:23 p.m. RECESSED MEETING 7:00 P.M. Vice Mayor Polehna called the meeting to order at 7:07 p.m. Present: Vice Mayor Polehna, Councilmembers Collins,Junker, and Weidner Absent: Mayor Kozlowski Staff present: City Administrator McCarty City Attorney Land Community Development Director Turnblad Police Chief Gannaway Fire Chief Glaser Public Works Director Sanders Finance Director Provos City Clerk Wolf PLEDGE OF ALLEGIANCE Fire Chief Glaser led the Council and audience in the Pledge of Allegiance. Page 2 of 9 City Council Meeting February 5, 2019 PETITIONS, INDIVIDUALS, DELEGATIONS &COMMENDATIONS Certificates of Appreciation - Stillwater Winterfest Vice Mayor Polehna presented Certificates of Appreciation to Judd Sather, Emily Tweed, Anissa Raleigh, Taylor Curley, and Sara Jespersen for organizing Stillwater Winterfest. OPEN FORUM GreenStep Cities Presentation Sheila Maybanks and Ann Martin showed information on Stillwater's participation in the GreenStep Cities program.The six-member committee has met twice and identified the best practice areas they hope to work on.They will report back to the Council as work progresses. CONSENT AGENDA January 22, 2019 special and regular meeting minutes Payment of bills 2019 Pay Equity Report Planning Commission New Member Appointment-John Dybvig Fire Departments of Washington County&St Croix County Mutual Aid Agreement Liquor License Licensee Name Change - Pearl &Thief to Lolito RESOLUTION 2019-018, approving the 2019-2020 Labor Agreement between the City of Stillwater and AFSCME Council 5 Maple Island Brewery July 4th Event RESOLUTION 2019-019,a resolution approving a Design Permit for the Crosby Hotel allowing for full-depth balconies (HPC Case No. 2018-29 & HPC Case No. 2018- 33) RESOLUTION 2019-020,approving Minnesota Premises Permit for Lawful Gambling for Bayport American Legion, Post 491 at Maple Island Brewery Motion by Councilmember Weidner, seconded by Councilmember Collins,to adopt the Consent Agenda.All in favor. PUBLIC HEARINGS CPC Case No. 2018-68. A public hearing to consider a request by Mark Guenther of Fenway Land Company. LLC. property owner, for the consideration of a Preliminary Plat for 11 single family lots and a rezoning of the property to RB. Two-Family Residential for the property located at 8393 and 8313 Marylane Ave N in the AP District. Community Development Director Turnblad reviewed the case. Mark Guenther, Fenway Land Company, plans to develop two parcels at 8313 and 8393 Marylane Avenue North, totaling 4.49 acres, into 11 single family lots. The applicant has requested that the Council approve the preliminary plat for the project, to be known as Marylane Meadows. The Planning Commission unanimously recommended approval. The Parks Commission unanimously recommended that the developer be required to construct a bituminous trail on Outlot A connecting the Settler's Glen trail system to Marylane Avenue, and that the cost of the trail construction be credited against the required park and trail fees of$22,500. Staff recommends tabling the request until the Joint Planning Board reviews the case. However, if the Council wishes to approve the preliminary plat, staff would recommend adding a Page 3 of 9 City Council Meeting February 5, 2019 condition that the Joint Board review the preliminary plat before application is made for the final plat, and any changes requested by the Joint Board be reviewed by the Council. Councilmember Weidner asked about impacts of previous flooding and repair work in this area; and Mr. Turnblad answered that all stormwater will be treated on site and released into an overflow. In a large storm event it will run into the system that was just completed. The development should not affect the subregional system that was just corrected. Vice Mayor Polehna opened the public hearing.There were no public comments.Vice Mayor Polehna closed the public hearing. On a question by Councilmember Weidner about what would happen if the Joint Board denies the preliminary plat; and Mr.Turnblad responded that the Joint Board does not have authority to deny the preliminary plat, only to review and comment. However they do have authority to deny the rezoning. In that event, perhaps there should be another condition that the preliminary plat shall not become effective until the rezoning is approved. Motion by Councilmember Collins, seconded by Councilmember Junker, to adopt Resolution 2019-021, a resolution approving the Preliminary Plat for Marylane Meadows, Case No. 2018- 68,with the 13 conditions in the staff report and the added condition that the preliminary plat shall not become effective until the rezoning is approved.All in favor. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS Historic Armory Site Review Conditional Use Permit Community Development Director Turnblad reported that the owners of the Historic Armory property on Chestnut and Third Streets are requesting approval of a site review Conditional Use Permit (CUP) to remodel and convert the property to eight market rate apartments, office space, and perhaps a craft distillery or brewery. There are two options for layouts: with a distillery or without. If no distillery is located in the building, the space proposed for that use would be office space instead. The historic integrity of the building's exterior will be maintained.The eight apartments require 15 parking spaces,a requirement which is met on site. There would be seven standard 9' x 18' outside parking spaces for guests of the residents, and eight compact 8'x 16' inside parking spaces for residents of the apartments. The parking requirements for the existing building's use is 41 spaces. The parking load for the proposed use, Option A or B, does not exceed 45.A four-space increase is allowed for these grandfathered buildings, so Option A and B meet the City's parking requirements. The Parking Commission recommended approval of the parking plan. The Heritage Preservation Commission has not yet reviewed the Design Permit. Since exterior changes will be minimal, staff would recommend that approval of the Design Permit be a condition of approval. The Planning Commission approved both the Special Use Permit amendment for the craft distillery space and the Special Use Permit for the eight apartment units.The Planning Commission also recommended that the Council approve the site review CUP. The owners are requesting that the Council consider $500,000 pay-as-you-go Tax Increment Financing (TIF) assistance for construction of basement parking, to reduce the cost per parking space by 50%, to about$32,000. If there is conceptual support for the TIF Page 4 of 9 City Council Meeting February 5, 2019 request, an application to create the TIF District and begin the formal TIF review process would be submitted by the property owners. Councilmember Weidner pointed out that if the inside parking spaces were designed to standard size,the project would fall short of the parking requirements because fewer spaces would fit. Councilmember Junker inquired if substandard parking is allowable; and Mr. Turnblad replied that public parking spaces must be 9 x 18', but the City allows private spaces to be more compact on the basis that the same people park there every day and are familiar with the smaller space. Vice Mayor Polehna asked how the 41-space grandfathered parking load was calculated; and Mr. Turnblad answered that the calculation was very conservative and did not include drill weekends. Only a normal gymnasium, office and storage uses would have this type of parking need. Under the CUP proposed, the parking load with the distillery would be 41; without a distillery,the parking load would be 45. On a question by Councilmember Weidner if all the parking spaces for the apartments had been designed to standard size,would the project have qualified for a CUP;and Mr.Turnblad responded that it would still qualify for a CUP but they would have to mitigate for parking, either by paying a mitigation fee or leasing additional private parking nearby. Councilmember Weidner expressed that the idea of TIF to help with the cost of underground parking is ridiculous because the building was purchased with the knowledge there was almost no parking. Vice Mayor Polehna indicated that he does not like the idea of approving something that is substandard just to make it work. Councilmember Junker stated he did not recall discussing the parking stall size at the Downtown Parking Commission meeting. Councilmember Collins acknowledged that the Planning Commission unanimously approved a favorable recommendation. They did not pay too much attention to what size the spaces were but felt it was a good use of space and a way to preserve the structure. Councilmember Weidner expressed amazement that there is zero parking for a business to go in there,that all the parking spaces are taken up by the residential tenants. Councilmember Junker pointed out there was zero parking for the building's prior use. He added that he definitely does not want to consider TIF money. Vice Mayor Polehna agreed the City should not be giving the project TIF money. He supports the concept of the use but not the parking plan. Councilmember Collins commented that using TIF would have to result in a bigger benefit to the community. If there were a way to mitigate parking, he thinks the project is reasonable. Councilmember Junker stated that as a condo owner downtown, underground parking is crucial. If there are two people in these apartments, one person would be parking outside which is a drawback.Another drawback would be having to have a small car. Page 5 of 9 City Council Meeting February 5, 2019 Motion by Councilmember Weidner, seconded by Vice Mayor Polehna, to deny the CUP due to the substandard parking. City Attorney Land pointed out that once the application is denied, if the applicant brings back a substantially different project that corrects the reason for the denial, it may be considered a new application and may be brought before the Council at any time. Motion failed 2-2. Ayes: Councilmember Weidner and Vice Mayor Polehna Nays: Councilmembers Junker and Collins Motion by Councilmember Collins, seconded by Councilmember Junker,to add a condition that the applicant mitigate the substandard parking by removing one of the spaces, and find a way to rent a parking space from a private landowner. Councilmember Weidner inquired why the City would allow substandard parking spaces at all,why not mitigate all of the parking spaces. Councilmember Collins offered an amendment to the motion that the applicant be required to mitigate all substandard parking spaces.As the seconder, Councilmember Junker concurred. Councilmember Weidner stated he would rather see the CUP application come back with a parking plan because he does not trust that mitigation will happen if it is a condition of approval. Councilmember Junker described that he thought the motion consisted not of going out and finding their own mitigation, but rather, reconfiguring the underground parking design to get full size spaces and then potentially mitigating the difference. Vice Mayor Polehna and Councilmember Weidner agreed that they prefer to see the parking plan before it is approved. City Attorney Land noted that the parking plan is too integrated into site plan review; she is not sure it could be separated out. If the Council feels comfortable trusting staff to determine whether parking mitigation is sufficient, the applicant could be required to construct eight more standard parking stalls, resulting in 15 standard parking spaces, with the Council leaving it to staff to determine if they've met the Council's intent. Motion failed. Ayes: Councilmember Collins Nays: Vice Mayor Polehna, Councilmembers Weidner and Junker Motion by Councilmember Weidner, seconded by Councilmember Junker, to deny the CUP and direct the applicant to come back with a plan for 15 standard parking spaces.All in favor. Concept PUD Amendment in Liberty Village Community Development Director Turnblad explained that Todd Konigson of livwell.design would like to construct four residential units on Outlot D, at the corner of Settler's Way and New England Place. The proposed units would have a first floor home office facing Settler's Way with a private garage in the back, facing the tennis courts. The residence would be located above the home office space, on the second and third stories. This necessitates the following requests: 1) a Special Use Permit (SUP) for residences in the Village Commercial Page 6 of 9 City Council Meeting February 5, 2019 district; 2) amendments to the Concept/Preliminary PUD to allow for: a. a reduction in the total number of shared parking spaces; b. three stories (as opposed to 2.5) while remaining under the maximum 35' height restriction; c. a flat roof as opposed to a gable roof; and d. turning the building so that it faces Settler's Way.The Planning Commission approved a SUP for live-work townhomes on this site with six conditions, and recommends approval of the Concept PUD. Staff further finds that with certain alterations, the three story design would substantially conform to PUD 1997-70 and 2003-14; staff would prefer to see a gabled roof and a front presence toward Liberty Square.Staff recommends approval of the Concept PUD amendment with three conditions. Councilmember Weidner suggested asking the applicant to come back with the alterations right now rather than making them conditions of approval. Councilmember Junker pointed out that for 20+years the original concept has been the plan for that area, and the Council is now being asked to change it to fit something in that does not quite fit the rest of the neighborhood. Councilmember Weidner added that the PUD at that time stated it was intended to have that New England square feel. This proposal does not fit the spirit of the original PUD. It represents a drastic change for a prominent piece of property. Community Development Director Turnblad reported that the City received a letter from the president of the Liberty commercial owners' association supporting this design. Vice Mayor Polehna indicated that as a courtesy, the request should go before the Liberty homeowners' association also. Mr. Turnblad pointed out that the City sent notice to all property owners within 350 feet and to the homeowners association. Councilmember Weidner reiterated that the proposal does not meet the requirement for a gabled roof and is not facing the right direction, so it should be denied. Motion by Councilmember Weidner, seconded by Councilmember Junker, to deny the CUP amendment.All in favor. Demolition Designation Study for 709 2nd Street South Community Development Director Turnblad informed the Council that on October 17, 2018, the Heritage Preservation Commission (HPC) considered a request from Scott and Rebecca Johnson for the demolition of their residential structure located at 709 2nd Street South. The HPC denied the demolition permit on the basis there was a feasible alternative to demolition of this historic resource. On November 13, 2018, the Council upheld the HPC's decision and ordered the preparation of a Demolition Designation Study. The Study was prepared by Streamline Associates, LLC, and submitted to the City on December 21, 2018. The Study finds the structure is not a historic resource and not eligible for local listing as a Historically Significant Structure. However, as previously indicated by staff,the structure is eligible to be considered as a designating structure in the City's eligible East Half, Churchill, Nelson, and Slaughter's Addition Local Historic District. On January 16, 2019, the HPC discussed the acceptance or rejection of the Demolition Designation Study. The HPC determined that without a specific plan for reconstruction in the Neighborhood Conservation District, accepting the Study would conflict with the purposes and intent of Page 7 of 9 City Council Meeting February 5, 2019 the HPC. Therefore, the HPC deferred acceptance/rejection to the City Council on the basis that: The HPC has already determined the structure is a local historic resource, potentially eligible to be considered a contributing building in an eligible local district; and there may not be protections in place for those buildings that are considered contributing in a local district; and demolition is contrary to the purposes of the HPC, the Neighborhood Conservation District and the Comprehensive Plan; and the concern for demolition is not exclusive to historic preservation purposes but that demolition prevention aids the City in meeting other community goals, such as affordable housing. The Commission further requests a legal opinion from the City Attorney regarding the flaws and deficiencies of the current demolition ordinance and request; and requests that the City Council work with the HPC to update the demolition ordinance to better reflect all community policies. Mr. Turnblad explained the impacts of the Council's options to accept or reject the Study. Councilmember Weidner inquired if the structure is demolished,are there design guidelines governing what may be built there; and Mr. Turnblad replied yes,any new home built in the RB zoning districts require HPC design review before a building permit may be issued. Vice Mayor Polehna asked if the City has authority to enforce the design guidelines; and Mr. Turnblad answered that if the HPC denies the permit, it may be appealed to the Council, but the HPC has the authority to approve or deny a design. Councilmember Junker stated the Study ordered by Council found that the structure is in a historic neighborhood, but that the house itself is not historic. City Planner Wittman would need to take actions to initiate the designation of the neighborhood as historic, which she did not think could be done before time on this application runs out. Mr.Turnblad added that the City created its first local residential historic district about eight years ago over the neighbors' objections. Although this neighborhood is eligible to become a historic district, it is not a historic district at this time. If it were to become a historic district,this property would be eligible to be considered a contributing building but it is not eligible to be individually listed as a historic property. Councilmember Junker remarked that the firm that conducted the Study is on the City's approved vendor list, so rejecting the study would be going against a firm that the City itself deemed qualified to perform such studies. Councilmember Weidner stated he is considering how much control the City would have over whatever would replace the structure. Mr. Turnblad stated if the house is demolished, any new building has to go through the design review process. Designation of the historic district so that this building may be considered contributing,would exceed the 180-day time limit on this application. Motion by Councilmember Weidner, seconded by Councilmember Collins, to accept the Demolition Designation Study and allow the homeowner to demolish the structure.All in favor. St. Croix Valley Rec Center donation City Administrator McCarty reported that the Stillwater Blueline Boosters Club wishes to donate $25,365 for improvements to high school boys locker room space at the St. Croix Valley Rec Center. Page 8 of 9 City Council Meeting February 5, 2019 Motion by Councilmember Weidner, seconded by Councilmember Collins,to adopt Resolution 2019-022, a resolution authorizing the City of Stillwater to accept a donation from the Stillwater Blueline Boosters Club. All in favor. COMMUNICATIONS/REQUESTS There were no communications/requests. COUNCIL REQUEST ITEMS There were no Council request items. ADJOURNMENT Motion by Councilmember Junker, seconded by Councilmember Collins,to adjourn.All in favor. The meeting was adjourned at 8:27 p.m. \f:i. Michael Polehna,Vice Mayor ATTEST: Beth Wolf, City Cle Resolution 2019-018, approving 2019-2020 Labor Agreement between the City of Stillwater and AFSCME Council 5 Resolution 2019-019, a resolution approving a Design Permit for the Crosby Hotel allowing for full-depth balconies (HPC Case No. 2018-29 & HPC Case No. 2018- 33) Resolution 2019-020, approving Minnesota Premises Permit for Lawful Gambling for Bayport American Legion, Post 491 at Maple Island Brewery Resolution 2019-021, a resolution approving the Preliminary Plat for Marylane Meadows, Case No. 2018-68 Resolution 2019-022, a resolution authorizing the City of Stillwater to accept a donation from the Stillwater Blueline Boosters Club Page 9 of 9