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HomeMy WebLinkAbout2019-08-20 CC MIN ii(Water 216 4th Street N, Stillwater, MN 55082 651-430-8800 The Birthplace of Minnesota www.ci.stillwater.mn.us CITY COUNCIL MEETING MINUTES August 20, 2019 REGULAR MEETING 3:00 P.M. Mayor Kozlowski called the meeting to order at 3:03 p.m. Present: Mayor Kozlowski, Councilmembers Collins,Junker,Weidner and Polehna Absent: None Staff present: City Administrator McCarty City Attorney Land Community Development Director Turnblad Police Chief Gannaway Fire Chief Glaser Deputy Fire Chief Ballis Public Works Director Sanders Finance Director Provos Human Resources Director Robole Library Director Troendle MIS Manager Holman City Clerk Wolf OTHER BUSINESS Lambert Pre-Annexation Agreement Community Development Director Turnblad informed the Council that Central Commons, LLC has purchased approximately 32 acres in Stillwater Township south of State Highway 36 and east of Manning Avenue. The owner plans to petition the City to annex the property and develop the site as a mixed use Planned Unit Development (PUD). The PUD would include residential use,an apartment complex,as yet undetermined office or commercial, a grocer (HyVee is interested), and closer to Highway 36, retail pads and a retail store/gas station. Stillwater Township and the City's 2040 Comprehensive Plan both support the annexation of the property into the City. Prior to annexation, the owner of the property would like to enter into a pre-annexation agreement. If the City Council finds the pre- annexation agreement to be generally acceptable,then it would be placed on the September 3 Council agenda for possible approval. Mr. Turnblad explained two aspects of the proposed pre-annexation agreement: 1) zoning and 2) potential tax abatement. The Highway 36 corridor is currently zoned as highway mixed use which is inappropriate for the proposed PUD. Staff is considering establishing a new zoning district based on the City's business park commercial zoning district with a modification to state that if developed by PUD, a project may include residential as part of the mix. Five story buildings would be allowed; setbacks would be lowered; and allowable impervious surface could increase slightly because stormwater treatment areas could be consolidated. The developer is asking the Council to consider tax abatement to cover the City Council Meeting August 20, 2019 extra costs associated with extending services. More details will be brought to the next meeting. Councilmembers Collins and Junker noted that five story buildings may have too great an impact in the corridor. Councilmember Junker noted the tallest building along Highway 36 is the Washington County Courthouse. Mr. Turnblad replied that the five story building will be offset, lessening the visual impact. Councilmember Weidner remarked it looks like it will be staggered with buildings in front of it so realistically it will look like just one additional story. Mayor Kozlowski stated he has no problem with five stories in that area. Councilmember Junker stated he would like to see different scenarios for possible tax abatement and the financial impacts on the City. Mr. Turnblad replied that City Administrator McCarty has already begun studying that with the financial consultants and more detail will be provided soon. Budget Workshop City Administrator McCarty provided a presentation on the preliminary 2020 budget. He reviewed budget factors contributing to an overall proposed levy increase of 6.4%. Finance Director Provos reviewed the debt service and general operating levy numbers.She explained how the property tax rate is calculated. Mr. McCarty summarized all the departmental requests, including new staffing positions, their levy impacts, and which positions are being recommended by himself and Finance Director Provos. MIS Manager Holman offered justification for a GIS position to assist various departments with organization of data,files,mapping,and to support systems involving badges, cameras and other equipment. Police Chief Gannaway informed the Council this will be his last budget session. He stated that 42% of shifts last year were covered by only two officers; the department really needs three officers to cover a shift, especially at night. He recommends hiring two FTE starting in January. Fire Chief Glaser explained that he would like to establish a paid on call duty crew who will be required to spend 12 hours per week in the station. Currently, there are two people on duty at the station only 35% of the time which is inadequate. Mr. McCarty referred to the request by the building inspection department for a .5 FTE administrative assistant intern position. Mr. Turnblad stated the intern's task would be to digitize a roomful of City records. Mr. McCarty went on to discuss emergency management, engineering, library, parks and street department requests. Public Works Director Sanders explained the parks and recreation manager and the environmental technician positions requested. Page 2 of 10 City Council Meeting August 20, 2019 Mr. McCarty discussed the Community Beautification Fund, the County Recycling Grant, Lodging Tax, proposed Capital Outlay budget,and proposed street projects. Further budget discussion will take place at the next meeting. RECESS Mayor Kozlowski recessed the meeting at 6:04 p.m. RECESSED MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:03 p.m. PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. Present: Mayor Kozlowski, Councilmembers Collins,Junker,Weidner and Polehna Absent: None Staff present: City Administrator McCarty City Attorney Land Community Development Director Turnblad Finance Director Provos Police Chief Gannaway Fire Chief Glaser Public Works Director Sanders Library Director Troendle City Clerk Wolf PETITIONS, INDIVIDUALS, DELEGATIONS&COMMENDATIONS Youth Service Bureau Budget Request- Robert Sherman. Executive Director Robert Sherman, Executive Director of the Youth Service Bureau, explained the work that YSB does in the areas of diversion services,mental health and chemical health programs. He requested $12,000 in City support for 2020. OPEN FORUM There were no public comments. STAFF REPORTS City Clerk reminded the Councilmembers of the Boards and Commissions picnic Thursday. Community Development Director Turnblad asked for questions for the monthly Polco community survey. Public Works Director Sanders urged drivers to use caution because Lake McKusick is starting to overflow on McKusick Road. He informed the Council the ADA plan is being completed. Page 3 of 10 City Council Meeting August 20, 2019 CONSENT AGENDA July 30, 2019 regular meeting minutes Payment of Bills Lift Bridge Bike, Run, Belch Event Resolution 2019-086, a resolution amending Resolution 2018-173, adopting 2019 Fee Schedule Knights of Columbus Temporary Liquor License Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt the Consent Agenda.All in favor. PUBLIC HEARINGS CPC Case No. 2019-26: Zoning Text Amendment (ZAT) for the creation of a Rural Residential Zoning District. Community Development Director Turnblad stated that on October 5, 2018,the City Council enacted a one-year moratorium on all new subdivisions and lot splits in the "Minar Neighborhood", an area including Minar Avenue North, Minar Lane North, 75th Street North, 77th Street North, and 77th Street Court North,to determine the appropriateness of increased density and to develop a corresponding Rural Residential zoning district classification. The Planning Commission held a public hearing and recommended the minimum lot size for a new parcel in the Rural Residential district be one acre. Almost half the existing lots could physically do a lot split if the lot size were one acre.Staff recommends approval of the ZAT. Mayor Kozlowski opened the public hearing. There were no public comments. Mayor Kozlowski closed the public hearing. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt first reading of an Ordinance creating Article 31-301, Rural Residential District, and amending Article 31-315, allowable uses in residential districts, of the City Code of the City of Stillwater. All in favor. CPC Case No. 2019-36: request by Robert Hill. property owner and Todd Konigson, applicant, for a PUD Amendment, Special Use Permit. Vacation Easement, and Preliminary Plat for the property located at XXX New England Place. Community Development Director Turnblad stated that Todd Konigson of livwell.design would like to construct six residential units in two separate buildings on Outlot D, at the corner of Settlers Way and New England Place. The proposed units would have a first floor home office, each facing the respective streets, with a private garage in the rear. The residence would be located above the home office space, on the second and third stories. This necessitates the following requests: 1) a Preliminary Plat for the development of six townhome units on two parcels of land to be known as Liberty Village 5th Addition; 2) an amendment to the Concept/Preliminary PUD to allow for three stories (opposed to 2.5) while remaining under the maximum 35' height restriction; 3) a Special Use Permit for residences in the Village Commercial district; and 4) a (partial) easement vacation request. He stated there is concern in neighborhood about the design. Staff is recommending a revision to Condition #3,regarding building design, requiring that the developer meet with Page 4 of 10 City Council Meeting August 20, 2019 both the Liberty on the Lake Homeowners'Association and the Liberty Village Commercial Association to discuss building design; and also requiring that before the application is considered complete, the presidents of each association must submit a letter to the City supporting the design. This is because staff understands that the private guidelines and concerns of the neighborhood are more detailed than those of the City. Staff recommends approval of the Preliminary Plat, Concept PUD amendment, and SUP with 17 conditions. Furthermore, staff recommends tabling consideration of the easement vacation and requiring that a shared parking and driveway easement agreement shall be developed and approved by the City Attorney prior to the submittal of the Final PUD and plat. Councilmember Weidner asked if the associations, or only their presidents, must approve the building design. Mr. Turnblad replied the intention is that the associations approve the building design. He reiterated that in addition to the revised Condition#3,staff would like to table action on the easement for the parking and bring it back with the final plat application. Mayor Kozlowski opened the public hearing. Todd Remely, president of Liberty on the Lake Homeowners'Association, stated that while the association members would like to see the land developed and support the concept of rowhouses, they are concerned that the aesthetic and design of the development do not fit the architectural standards of the neighborhood, which was carefully developed with a central New England design theme. He urged the Council to not allow a single developer to enter late in the game and take away what so many people created.He asked that the Council table action until an appropriate design is submitted, and to facilitate the scheduling of a 30 minute meeting with each Councilmember over the next week to discuss the concerns. Dr. Ginger Garley, owner of Rivertown Animal Hospital, 135 New England Place, stated she opposes the development. She agreed with Mr. Remely's comments but is also opposed to condos and would prefer to have it remain as a business site. She feels the scale, style and proportions of the proposed buildings do not fit the New England theme. She is extremely concerned about parking challenges. She has heard it stated that the business association supported this but they have not had a meeting about it or discussed it as an association. Darren Senn stated the original Liberty developers were very intent about creating something special that would stand the test of time. He commended the developer for bringing this creative housing type to the neighborhood, but questioned the design aesthetic. He would like to meet with each Councilmember about the design and how it does not fit with Liberty on the Lake. Isabella (no late name given), Ralph Bell's sister, stated she would like to see more cameras put up around the Stillwater area because her brother went missing and cameras may have helped. Mayor Kozlowski clarified that the public hearing is for a neighborhood development. He encouraged her to come back and speak during the open forum portion of a meeting. Todd Konigson, developer, stated he hopes the associations have had the chance to review colored renderings. He oriented the buildings toward the square per Council direction. He changed to a gabled roof design which is like every other house in Liberty. He had included a standing seam metal roof but if the community would prefer shingles he does not have a Page 5 of 10 City Council Meeting August 20, 2019 problem using shingles. He will do anything to make the project succeed. He intends to use the same roof pitch design, lap siding and color scheme which every house in the development has. The buildings would be 35',the same as Patriot's Tavern which is not out of scale. Regarding parking, the original PUD called for a commercial building. He is proposing a dedicated public parking area that he would not use so he is actually providing more improved parking for the local businesses. He stated that Michael Oreck, president of the commercial association, has been involved and has had all the information for several months now. Mr. Konigson understands they were supportive. He also understands that the proposal did not have to go to homeowners' association because it is going into the commercial area. Instead of denial, he asked that the Council approve the project with contingencies. He would prefer not to have a whole neighborhood meeting. Mayor Kozlowski asked for clarification on neighborhood design regulations versus the City's design guidelines. Mr. Turnblad replied that the concept PUD involves a fairly abbreviated design guideline that is the guiding document. Technically, the residential design guidelines do not apply to the commercial zone. Brent Pilrain, co-owner of Patriot's Tavern, stated commercial association meetings are scarce and this proposal has not been discussed. He knew it was being developed. He is excited to see this developed as a commercial property to complement the business district. His concerns are with basic look, style, size and footprint that do not seem to fit anything else that's in the neighborhood. John Abbott, Liberty on the Lake resident and a registered architect in Minnesota, agreed with Mr. Remely's and Mr. Senn's comments. His main concern is height and design. The images and renderings do not look at all like anything else in Liberty Square. Mayor Kozlowski closed the public hearing. Mayor Kozlowski stated the requirements about association approval are confusing. He would like to make sure the developer knows what is required. Councilmember Junker stated he would love to see the lot developed but the developer should stick to a 2.5 story design. Councilmember Weidner remarked that the 2.5 story restriction has a purpose. He appreciates the new design better than the flat roof but feels three stories is out of character. He does not support the vacation of the parking easement. Councilmember Polehna stated he agrees with the 2.5 story restriction that other buildings were held to. Mayor Kozlowski stated he struggles to identify where the actual regulations are that tell the developer what size windows, what color siding, what color scheme and what design elements are acceptable for Liberty Village. Motion by Councilmember Weidner,to deny the PUD Amendment,Special Use Permit,Vacation Easement, and Preliminary Plat for the property located at XXX New England Place. Mr. Konigson asked what he needs to do to make this project successful. He stated the reason for the three stories is square footage and the price point. He is willing to go to 2.5 Page 6 of 10 City Council Meeting August 20, 2019 stories even though it will decrease the value of the units because the master bedroom will have a vaulted ceiling. He will change the windows to double hung. The building will have the same siding as Patriot's Tavern. He again asked the Council to approve the project with contingencies. He added that he will be developing parking that has not been there for 20 years and there will be more parking for adjacent buildings than if a commercial building came in taking all the parking. Councilmember Collins asked if the Council could table action to give the applicant more time. Mr. Turnblad replied there is a time issue but the deadline can be extended to 60 days. City Attorney Land reminded the Council this is the preliminary concept plan and preliminary plat, the first step. If they want to add more conditions, they may do so. The developer may not apply for the final plat until he can comply with all the conditions. Councilmember Polehna seconded the motion for denial. City Attorney Land asked that the Councilmembers who are asking for denial please put their statements for denial in the record so staff can prepare a resolution. Councilmember Weidner noted that the proposed design does not conform to 2.5 stories. Motion passed. Ayes: Councilmembers Collins,Junker,Weidner and Polehna Nays: Mayor Kozlowski CPC Case No. 2019-37: an appeal by Sally Studtman, property owner and Nancy Millard, applicant, for the reconsideration of a Variance request to the maximum allowed building coverage and a Variance to lot size for second lot for the property located at 1422 Martha Street. Community Development Director Turnblad explained that the Edmund H. Studtman trustees would like to sell their homestead at 1422 North Martha Street.The home was built in 1888 and is situated on a parcel across Moore Street from Stillwater Country Club. The property is composed of 2 1/2 platted lots that were combined into a single parcel. The trustees hope to reconfigure the property into two parcels. Parcel 1 (the northern one with the existing house) meets the required 7,500 square foot minimum lot size, but it requires a building coverage variance, since there would be 27.3% coverage and only 25% is permitted. Parcel 2 needs a size variance, since it has only 6,337 square feet of area. The Planning Commission denied both variances in July on a 4-1 vote. The applicants appealed the Planning Commission decision on the variances and are requesting the Council to approve the variances and the resubdivision.Staff finds the resubdivision and the variances are consistent with the Comprehensive Plan, and with the key lot development pattern in the neighborhood. Therefore, staff recommends conceptual approval of the requested variances and resubdivision with six conditions. Mayor Kozlowski opened the public hearing. Lindsay Millard, daughter of Nancy Millard, stated the family understands that staff recommended the variances be granted because they are consistent with the Comprehensive Plan. Her family is seeking a variance because her grandparents' lot is bigger than many of the lots around it. She understands the Planning Commission had Page 7 of 10 City Council Meeting August 20, 2019 concerns that the variance was solely for economic benefit. It is sought for variety of non- economic reasons. No one in her family wants to see her grandparents' house torn down and a larger house built on the lot. They are trying to be thoughtful about what happens to the property. Mayor Kozlowski closed the public hearing. Councilmember Collins stated he has concern about creating a substandard lot. Mayor Kozlowski asked if there are other substandard lots in the neighborhood. He does not think the lot split would negatively impact the neighborhood. Mr. Turnblad replied yes there are other substandard lots in the neighborhood. Motion by Councilmember Weidner, seconded by Councilmember Collins, to uphold the Planning Commission's denial of the variance request to the maximum allowed building coverage and a variance to lot size for second lot for the property located at 1422 Martha Street. Motion passed. Ayes: Councilmembers Collins, Junker,Weidner and Polehna Nays: Mayor Kozlowski UNFINISHED BUSINESS City of Stillwater General Obligation Capital Outlay Bonds, Series 2019A Elizabeth Bergman, BakerTilly, stated the City got a very competitive rate on the bonds. She recommends approval of the sale of$3 million GO Capital outlay bonds for streetscaping, street improvements and general capital outlay. Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt Resolution 2019-088, resolution accepting proposal on the competitive negotiated sale of $3,065,000 General Obligation Capital Outlay Bonds,Series 2019A,providing for their issuance and levying a tax for payment thereof.All in favor. NEW BUSINESS Driveway Surface at 2005 Hazel Court Public Works Director Sanders stated that a requirement of a temporary Certificate of Occupancy is that the driveway be surfaced in concrete,bituminous,or pavers.The property owner is requesting the Council waive the requirement to allow for crushed rock surfacing on the new driveway. Staff recommends the Council deny the waiver request to use aggregate material for all or any portion of the driveway. However, staff would further recommend the Council authorize city staff to approve an alternative design that includes a portion of improved surfacing materials such as grass geo grid or turf block concrete pavers. Motion by Councilmember Polehna, seconded by Councilmember Junker, to deny the waiver and authorize staff to approve an alternative design for a driveway surface at 2005 Hazel Court. All in favor. GreenStep Cities Workplan Community Development Director Turnblad reviewed the GreenStep Cities workplan. Page 8 of 10 City Council Meeting August 20, 2019 Agreement between the City of Stillwater and Mahtomedi Youth Hockey Association City Administrator McCarty stated that the City of Stillwater and the City of Mahtomedi entered into a 20-year agreement in 1999 whereby Mahtomedi agreed to contribute $700,000 toward the construction of a second sheet of ice at the Rec Center in exchange for guaranteed ice time over the next 20 hockey seasons. That agreement expires on April 1, 2020.The City and Mahtomedi Youth Hockey Association ("MYHA") now desire to enter into a long-term agreement whereby MYHA secures ice time at Lily Lake and at the Rec Center for its programs,and the City is able to rely on the sale of a minimum number of hours of ice time as well as receiving some revenue to assist with funding its Capital Improvement Program at the ice arenas. Doug Brady, manager of St. Croix Valley Rec Center, reviewed the general terms of the agreement which would start a year from now and continue for five years. Motion by Councilmember Polehna, seconded by Councilmember Collins, to adopt Resolution 2019-089, a resolution approving the agreement between the City of Stillwater and the Mahtomedi Youth Hockey Association for ice time at St. Croix Valley Recreation Center and Lily Lake Ice Arena.All in favor. COUNCIL REQUEST ITEMS Councilmember Polehna noted that the City lost a true patriot when the "last man" of the "Last Man's Club" passed away last week. He also stated the Yellow Ribbon Pheasant Hunt is scheduled for December. CLOSED SESSION Motion by Councilmember Collins, seconded by Councilmember Junker, to recess to Closed Session pursuant to Minn. Stat. §13D.05 subd. 3(b) to discuss attorney-client privileged communication regarding 121 Chestnut Street East. All in favor. The meeting was recessed to closed session at 9.04 p.m. Present: Mayor Kozlowski, Councilmembers Collins,Junker,Weidner and Polehna. Also present: City Administrator McCarty, City Attorney Land,Attorney Peter Mikhail and Community Development Director Turnblad. Motion by Councilmember Junker seconded by Councilmember Collins to re-open the meeting. ADJOURNMENT Motion by Councilmember Junker seconded by Councilmember Collins to adjourn. All in favor. The meeting was adjourned at 9:40 p.m. Ted Kozlo i, Mayor ATTES • Beth Wolf, City Clerk Page 9 of 10 City Council Meeting August 20, 2019 Resolution 2019-086, a resolution amending Resolution 2018-173, adopting 2019 Fee Schedule Resolution 2019-088, resolution accepting proposal on the competitive negotiated sale of$3,065,000 General Obligation Capital Outlay Bonds, Series 2019A, providing for their issuance and levying a tax for payment thereof Resolution 2019-089, a resolution approving the agreement between the City of Stillwater and the Mahtomedi Youth Hockey Association for ice time at St. Croix Valley Recreation Center and Lily Lake Ice Arena Page 10 of 10