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HomeMy WebLinkAbout2021-05-04 CC MINThe Birthplace of Minnesota 216 4th Street N, Stillwater, MN 55082 651-430-8800 www.ci.stillwater.mn.us CITY COUNCIL MEETING MINUTES May 4, 2021 REGULAR MEETING 4:30 P.M. Mayor Kozlowski called the meeting to order via Zoom at 4:30 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Dunker, Odebrecht, Polehna Absent: None Staff present: City Administrator McCarty City Attorney Land Administrative Assistant Manos Community Development Director Turnblad City Planner Wittman Finance Director Provos Deputy Fire Chief Ballis Police Chief Mueller Public Works Director Sanders Library Director Troendle OTHER BUSINESS 3rd and Myrtle Street Landucci Apartment Project Request Community Development Director Turnblad explained the request that Nathan Landucci is planning to construct an apartment building at the corner of Myrtle and 3rd Streets. At the Council work session in April Mr. Landucci asked if the City Council would sell him a portion of City land to facilitate the project. The Council denied the request. Mr. Landucci is now asking the Council to: consider selling less City property for an apartment building with a smaller footprint; or reconsider the sale of the originally requested amount of City property, stating that it would likely create a safer and more efficient traffic pattern on Myrtle Street. Mr. Turnblad reviewed each option in detail. Mayor Kozlowski requested clarification on Trinity Church's past agreement for use of the surface parking adjacent to this site; and Mr. Turnblad responded that the development agreement with Trinity, when the City acquired the land for the parking ramp, included a commitment entitling Trinity to 40 spaces in the parking ramp, no matter how the site is developed. That entitlement was transferred to Jon Whitcomb when he bought the site, which is now the site of Mr. Landucci's proposed project. Councilmember Dunker stated he is not interested in selling any City land right now. He feels there is a huge difference between using 40 spaces for church parking and using 40 spaces for resident parking 365/24/7. He would like to research that stipulation further. City Attorney Land stated she was unaware of the stipulation and will look into it. City Council Meeting May 4, 2021 Mayor Kozlowski remarked he would not oppose selling the piece of City property to facilitate a project that has safe entrances, appropriate massing, and does not require a lot of variances. He is unsure if the proposal fits those parameters at this point. Nathan Landucci, Landucci Homes, Inc., stated his goal is to determine whether the Council would favor the proposal at all before going further. He looked into acquiring the adjacent Balay property so its driveway could be used as the apartment's entrance and right turn out of the garage, approximately where the garage was in the previous Whitcomb proposal. He has had the Balay property under contract for 5-6 months and does not want to keep that parcel tied up if the project is not going to proceed. He also asked if the Council likely will never allow any units on the 4th floor, but only common space. If he cannot buy any City land, the Balay piece is divided by a strip of land that does not work. He would like to build something here either way. The numbers work with a smaller building, too. Councilmember Junker remarked that even with the smaller project, the developer shows only 25 parking spaces available for a 36 unit building, so the project would absolutely need that 40 spaces. Councilmember Odebrecht advised the applicant to avoid a fourth floor and to talk to the Heritage Preservation Commission, Downtown Parking Commission and Planning Commission before proceeding further. Mayor Kozlowski complimented the developer on the draft design, but advised that he work with staff to reduce the number of variances needed. Mr. Landucci stated the larger building would need a parking variance. The smaller building would have a surplus of two parking spaces, considering that the use of those 40 spaces is grandfathered in, as he has been told. He asked if a separate exit and entrance are important to the Council. Councilmember Collins stated having traffic go in one way and out the other may look out of place. He would be more comfortable discussing a more developed concept plan. He appreciates the developer trying to deal with traffic because that is one of the worst intersections downtown. Mayor Kozlowski suggested something be done to soften the visual aspect of the house against the huge apartment building. Councilmember Polehna voiced concern about compromising the structural integrity of the parking ramp. Mr. Landucci replied there was an extensive study done by Herzog, stating there would be no structural impact from this project. The City hired Herzog and Mr. Landucci paid for the study. Councilmember Polehna stated he would like to make sure City staff concurs with the statement about no structural impact. CentraI Commons Tax Abatement Community Development Turnblad led discussion of a possible tax abatement scenario proposed for Central Commons to facilitate the development of a number of public infrastructure improvements including: the grade separated interchange at Manning Page 2 of 15 City Council Meeting May 4, 2021 Avenue and State Highway 36; the frontage road connecting St Croix Trail with Manning Avenue; an oversized stormwater treatment pond; and the extension of trunk sewer and water from their current terminus at Curve Crest Boulevard to the perimeter of Central Commons Addition. Based on the developer's estimates and assumptions, a committee of two council members, several staff members and consultants believes that the project presents value to the City both in the short and long term and would therefore recommend: 1) Charge the full standard $945,027 in City development fees.; 2) Enter into a tax abatement agreement for up to an estimated $3.5 million of City real estate tax abatement over 15 years with a not -to -exceed actual amount of City tax generated during term of abatement. Using the development assumptions provided by the developer and based upon calculations performed by Mikaela Huot of Baker Tilly, it is reasonable to expect this project to generate sufficient real estate tax revenue to cover up to $3.8 million in City tax abatement; 3) County may abate $750,000 of their portion of the real estate tax. Based on provided assumptions, calculations show sufficient revenues would be generated to support this; 4) Total abatement assistance may be up to $4,277,235, including City and County; 5) City tax abatement will exclude $66,600 from annual abatement to cover City service costs (this is offset by including existing land value in abatement calculation). The developer has asked that he be allowed to abate the assessment interest as well. The committee did not agree with that, which is the major difference between the committee and the developer; 6) City tax abatement includes land and new building value (base value effectively $0); 7) County tax abatement calculations include only new building value (land calculated as 'base'); 8) City tax abatement is not reduced for fiscal disparities, therefore generating maximum revenues possible; 9) County tax abatement is reduced for fiscal disparities, consistent with County Tax Abatement Policy application; 10) Maximum 15-year term; and 11) Taxes for Outlots A & B (future development lots) not to be abated with this tax abatement agreement. Mr. Turnblad added that as of today, due to lower street project costs, the City real estate tax abatement is reduced to $3.14 million and the total abatement from $4.2 million to $3.9 million. Mikaela Huot, Baker Tilly, provided an overview of the proposal. The property owners are still responsible for paying all taxes due on their property, but the taxing entities are able to redirect a portion of those property tax revenues for identified eligible project expenses. Mark Lambert, developer, stated he agrees with the numbers in the original staff report, $4.2 million. The project costs went down significantly, so there is no need to raise new money, but he would like interest to be considered and use the $4.2 figure to pay actual costs. Councilmember Polehna pointed out the goal is basically for public utilities to get to the Central Commons site and to the future hospital site. He thinks there is a public misconception that this is a subsidy to a business coming into town. Mr. Turnblad summarized the developer's request to allow interest to be abated. Councilmember Junker noted that if City money were to be used, the City would charge 1.5% interest. So he feels the interest should not be waived on abatement. Council consensus was to include the interest charges at 1.5% and not allow that to be abated. Page 3 of 15 City Council Meeting May 4, 2021 Mr. Lambert again requested that the Council support the estimates in the original staff report. Every day the costs are going down, but he cannot obtain more money than what the utilities actually cost. Public Works Director Sanders stated that the cost for trunk utilities could be higher because that estimate was done a year or two ago. The other estimates were given to the City by the developer. Ms. Huot stated the Council may elect never to modify the agreement or let it be modified every other year. A not to exceed dollar amount can be established with some flexibility to build into what is allowed. Mayor Kozlowski summarized that Council consensus is to build some flexibility into what is allowed. City Administrator McCarty indicated that the next step will be to hold a public hearing on the tax abatement request. Lowell Park Pavilion & Levee Wall Historic Structure Report City Planner Wittman reviewed a Historic Structure Report done by Collaborative Design Group on the Lowell Park Pavilion and Levee Wall. The report found that overall, the 98- year old Pavilion is in relatively good condition, although component conditions vary. If temporary and permanent rehabilitation efforts are implemented, the total project cost would be approximately $350,000; it is recommended to conduct this work in the next two years. While some routine maintenance could be done in partnership with the local Rotary groups, the foundation and roof are in poor condition and need replacement. The foundation replacement cost is estimated at $135,000. Additionally, temporary shoring of the foundation wall is estimated at $34,000. Other repairs, including roof replacement and wood and metal repairs are estimated at $167,000. Staff recommends the Council use the $6,500 budgeted in 2021 for the development of footing and foundation plans; and commit $35,000 in lease reserves for the stabilization of the foundation. If the Council agrees, staff will work toward submission of a September, 2021 Minnesota Historical Society grant application submission, and explore private foundation options for a grant match. Motion by Councilmember Polehna, seconded by Councilmember Collins, to authorize staff to proceed with emergency repairs, and develop a plan for all recommended repairs for the Lowell Park Pavilion (Gazebo). All in favor. Predatory Offender Ordinance Review City Attorney Land reviewed a proposed ordinance that prohibits Level II and III convicted predatory offenders from residing within 1200 feet of a school or daycare. Motion by Councilmember Junker, seconded by Councilmember Collins, to adopt first reading of an Ordinance Enacting Chapter 52, Section 52-19 Regarding Predatory Offenders of the City Code of the City of Stillwater. All in favor. Terra Springs Easement Discussion City Attorney Land stated that the City's Redevelopment Agreement with Territorial Springs, LLC included the requirement that the developer provide future public easements for sidewalks, park and trail features to recognize the historical significance of the property. Page 4 of 15 City Council Meeting May 4, 2021 The easements were never prepared, but the Park Maintenance Fund was established and has a fund balance of $132,621. The original agreement stated that the City would administer the funds, which were not to be used for ongoing maintenance. For the City's maintenance obligations of the wall, the City will require several easements in order to access the wall. The City can use the Park Maintenance Fund for the improvements, however the current balance of the funds will not be sufficient. The estimated cost of the improvement project is $400,000. The City has $577,210 in its park dedication funds which can be used for new projects such as this one (park dedication funds cannot be used for ongoing maintenance), but the funding source is ultimately up to the Council. For the public access to the sidewalk, trails and reflective pond, additional easements will be required. While the easement for the wall repair is necessary, the sidewalk/trail easement is a requirement the City could reconsider, given the close proximity of a portion of the sidewalks to the buildings. If the City were to modify the public easement condition, perhaps a combination of easement plus park dedication fees could be required. In 2003 the Council chose to waive park dedication fees in exchange for this public access. The current monetary value of park dedication fees for 227 residential units would be $454,000, but that does not include the commercial component of the development. Staff recommends that the Council engage a surveyor to define a permanent access for wall maintenance and determine funding sources, and consider whether the sidewalk/trail easement is still desired. Mayor Kozlowski remarked that the last time this issue was discussed, the Homeowners' Association (HOA) asked that the City remove the public access easement, and the Council responded that they would consider that if the HOA would pay the park dedication fees that were previously waived. The HOA chose not to do that. He realizes that the trail gets very close to private patios, but there are some important historic features on the site that should be publicly accessible. At present, all the City's taxpayers are paying the cost of wall maintenance. Councilmember Junker stated back in 2003 there were a lot of good intentions for this property. Almost 20 years later there have been a number of blunders. He suggested convening a group of residents from Terra Springs, himself, the City Attorney and Public Works Director to discuss several items including easements, park dedication and parking of boats, and come back more prepared from all sides to put the right agreements in place. Mayor Kozlowski stated he is concerned that the taxpayers are forever responsible for the maintenance of the massive 150-year old wall, under a major concession made by the City to the developer. He would like to make sure there is a clear list outlining responsibilities. Councilmember Odebrecht added that the territorial prison is very important historically. He would oppose anything that would block public access to the site. Councilmember Junker added there is a lot of water runoff that comes onto Terra Springs property from City streets and eventually runs to the river. He would like to hear more from the ownership group and present a package that satisfies everyone. Mayor Kozlowski stated he would also like an update on condition of the wall. STAFF REPORTS Public Works Director Sanders reported that the 2021 street improvement project started yesterday. The Rec Center parking rehabilitation will start May 17. The Neal Avenue project Page 5 of 15 City Council Meeting May 4, 2021 should be finished this month. Staff is working with a consultant to develop traffic calming measures for Maryknoll, and will have a neighborhood meeting soon. Police Chief Mueller informed the Council that this week there have been many significant mental health crisis issues. Despite a lot of activity downtown with the nice weather, there have not been any significant issues, just increased traffic. Tomorrow is the second round of police officer interviews. The youth bike safety rodeo is May 15. He thanked City Attorney Land for her ongoing assistance. He discussed protest activity and stated every exercise of first amendment rights has been peaceful. Personnel have handled themselves with compassion and restraint, and feedback from residents has been good. Councilmembers Polehna and Odebrecht complimented Police Chief Mueller, Councilmember Junker and Mayor Kozlowski who went door to door talking to residents. Community Development Director Turnblad stated outdoor seating areas opened Saturday. City Administrator McCarty told the Council that the American Recovery Act funding for local governments is on hold until distribution guidance is available. The City's allocation will be about $2.25 million. Recruitment for the Community Development Director position is moving along. Library Director Troendle reported the library is hosting a webinar about anxiety and stress. In collaboration with ArtReach, the library's lawn will feature stories from two children's books May 17-23. Registration for the summer reading program opens May 17. RECESS Mayor Kozlowski recessed the meeting at 6:21 p.m. RECESSED MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order via Zoom at 7:00 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna Absent: None Staff present: City Administrator McCarty City Attorney Land Administrative Assistant Manos Community Development Director Turnblad City Planner Wittman Finance Director Provos Deputy Fire Chief Ballis Police Chief Mueller Public Works Director Sanders PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. Page 6of15 City Council Meeting May 4, 2021 RECOGNITIONS OR PRESENTATIONS Presentation of Council Service Awards to Jeff Johnson (Downtown Parking Commission): Reggie Krakowski (Heritage Preservation Commission): Larry Panciera (Human Rights Commission); Sandy Snellman (Parks & Recreation Commission); Mike Kocon and Chris Lauer (Planning Commission); and Stan Miller (Traffic Safety Review Committee), Mayor Kozlowski presented Council Service Awards to outgoing Commissioners Johnson (12 years on Downtown Parking Commission), Krakowski (12 years on Heritage Preservation Commission), Panciera (31/z years on Human Rights Commission), Snellman (20+ years on Parks Commission), Kocon (121 years on Planning Commission), Lauer (9+ years on Planning Commission) and Miller (5 years on Traffic Safety Review Committee). Oath of Duty Presentation for Officer Brandon Gunderson and Officer Brian Tennessen Police Chief Mueller gave the oath of duty to Officers Gunderson and Tennessen who were hired last year. Their family members pinned on their badges. Proclamation - Stillwater Area High School Team that competed in the NASA Human Exploration Rover Challenge Mayor Kozlowski read a Proclamation recognizing the accomplishments of the Stillwater Rover Team: Ben Abbott, Addie Foote, Vincent Ramirez, Jocelyn McBride, James Daum and Ethan Foote, and Coach Tina Walski. Presentation by New Heights School on future playground Tom Kearney, New Heights Principal, presented a proposal for a partnership between the City and Hew Heights School, 614 Mulberry Street West, to co -renovate the playground area. New Heights and the City partnered on a similar project about 20 years ago. He stated that the school has recently formed a relationship with the Madison Claire Foundation and Flagship Recreation for the purpose of renovating the space to create an all-inclusive play space that will allow children with disabilities to play alongside their peers. They feel the partnership would demonstrate the City's belief in equal access to safe play areas and will save the taxpayers and the school by cost -sharing. It could be phased over several years. Mayor Kozlowski asked about the approximate cost; and Mr. Kearney answered that the cost would be in the $1 million range. Councilmember Junker inquired about potential neighborhood impacts such as parking; and Mr. Kearney pointed out the New Heights parking lot has 20-25 spaces, plus there is parking on Everett and Mulberry Streets. Councilmembers Collins and Odebrecht and Mayor Kozlowski voiced support. OPEN FORUM There were no public comments. CONSENT AGENDA April 20, 2021 regular meeting minutes Payment of Bills Annual Boards and Commissions Appointments Page 7 of 15 City Council Meeting May 4, 2021 Community Active Living SHIP Grant Service Contract with Washington County Cruisin on the Croix 2021 Car Show Event Contract Diversion Tributary Stabilization Project BCWD Cooperative Agreement Resolution 2021-060, Resolution Approving the Addition of Additional License Premises Owned by La Carreta, LLC Resolution 2021-061, A Resolution Approving the Lot Line Adjustment Between 12950 75th Street North and & 12960 75th Street North (Case No. 2021-21) Resolution 2021-062, Resolution for Temporary Outdoor Dining Permit Northland Park New Playground Equipment Pro Utility Locator Purchase Approval Server Room Replacement Cooling System Subscription Agreement with Lexipol Washington County Municipal 2021 Recycling Grant Agreement Water Department SCADA Upgrade Bid Award Councilmember Junker pointed out that for Cruisin' on the Croix car show this year, the City will not close off Lot 8b until 3 p.m., but will close the other lots used for the car show at 6 a.m. Parker Shook, Cruisin' on the Croix asked permission to close the other lots at midnight; and Councilmember Junker replied to go ahead and do it at midnight and see if it generates complaints. Motion by Councilmember Polehna, seconded by Councilmember Odebrecht, to adopt the Consent Agenda. All in favor. PUBLIC HEARINGS CPC Case No. 2021-13 to vacate portion of public drainage and utility easements located upon, Lot 1. Block 1, of Rivard Addition. City Planner Wittman stated that on April 6, 2021 the City Council held a public hearing to consider a preliminary plat request from Jeff and Missy Hause to develop 8483 Marylane Avenue North into Marylane Gateway Addition, a six lot residential subdivision. A part of the request was for consideration of the vacation of drainage and utility easements associated with the existing property, as the developer is proposing new drainage and utility easements to be associated with the new plat. There were errors in the noticing of the hearing specific to the easement vacation. Thus, the City has conducted a new legal noticing process to be compliant with statutory requirements. Both the Planning Commission and City staff recommend approval. Mayor Kozlowski opened the public hearing. There were no public comments. Mayor Kozlowski closed the public hearing. Motion by Councilmember Collins, seconded by Councilmember Odebrecht, to adopt Resolution 2021-063, A Resolution Vacating a Public Drainage and Utility Easement Located Within the City of Stillwater, Minnesota (Case No. 2021-23). All in favor. Page 8 of 15 City Council Meeting May 4, 2021 CPC Case No. 2021-18, request by ion Whitcomb, property owner. for a Zoning Map Amendment to rezone the property to RA. Property located at 12950 75th St N. Ms. Wittman stated that Jon and Ann Whitcomb had submitted an application (Case 2020- 54) for rezoning, preliminary plat and associated variance approval of a 14-lot single family development to be known as White Pine Ridge. Originally the rezoning for this lot was from AP, Agricultural Preservation, to TR, Traditional Residential. After embarking on this project the developer has noticed that a majority of the houses they intend to build would need variances. In lieu of granting each property a variance, changing the district to RA will bring the proposed houses into conformity and no longer needing multiple variances. The applicant has requested the Council consider rescinding their TR, Traditional Residential Zoning District approval, and rezoning the AP district to the RA, single-family district. Staff recommends approval. Mayor Kozlowski opened the public hearing. There were no public comments. The public hearing was closed. Motion by Councilmember Odebrecht, seconded by Councilmember Junker, to adopt first reading of an Ordinance amending the Stillwater City Code Section 31-300 entitled Establishment of Districts by rescinding Ordinance No. 1158 and rezoning approximately nine acres to RA, One -Family Residential, Case No. 2020-54. All in favor. CPC Case No. 2021-15, request by Linda Countryman. representing Sustainable Stillwater and Chair of the Green Steps Committee. applicant. for a Zoning Text Amendment to allow Accessory Dwelling Units within the RA zoning District. Mayor Kozlowski tabled Case No. 2021-15 to May 18, 2021. UNFINISHED BUSINESS CPC Case 2020-60, request by Joel Hauck and 200 Chestnut Partners. LLC, for a Conditional Use Permit, associated variances and an appeal to HPC's decision to not permit a 4th story on a proposed residential building in the Central Business Height Overlay Historic District at 200 Chestnut St E. (Tabled from April 20. 2021 Council meeting.) City Planner Wittman reviewed the ,case that 200 Chestnut Street Partners, LLC has purchased the 200 East Chestnut blocland are developing a plan to demolish the block and construct a market rate apartment building with 61 apartments and 73 underground parking spaces. To develop the property as proposed, the Council would need to approve: 1) a Conditional Use Permit; 2) a variance to the maximum allowable height; 3) either a variance from the required parking, or a mitigation plan for the deficit parking spaces; and 4) appeal of Design Permit conditions imposed by the Heritage Preservation Commission. The City Council tabled the case on March 2 for further work on the parking request. Subsequently, the Downtown Parking Commission revisited the parking deficit mitigation policies. Staff has worked with the development team to reach a parking solution. At this time, the applicant is requesting consideration of: 1) Conditional Use Permit for 61-unit multi -family structure in the CBD Zoning District; 2) Conditional Use Permit for Short Term Rental Units on the property; 3) Variance from the required on -site parking; 4) One-story variance to the three-story maximum height in the Central Business District Historic Height Overlay District; 5) 11.5' variance to the 37' maximum allowable height in the Central Page 9 of 15 City Council Meeting May 4, 2021 Business District Historic Height Overlay District; 6) Variances to the 20' (Combined) Side Yard and 20' Rear Yard Setback in the Central Business District; and 7) Appeal to conditional approval of Design Permit 2020-32. Staff recommends approval of the following, with 15 conditions: a Conditional Use Permit for 61-unit apartment building project in the CBD Zoning District; an 11.5'variance to the 37' maximum allowable height as measured from the average elevation of Chestnut Street East to the top edge of the parapet; a one-story variance to the three-story maximum height in the Central Business District Historic Height Overlay District; variances to the combined Side and Rear Yard to accommodate the building setbacks as designed and proposed; the Design Permit appeal; and mitigation for a 17-space parking deficit, with revised conditions. Councilmembers asked Ms. Wittman to clarify what staff and the City Commissions are recommending; and she explained that the Heritage Preservation Commission is recommending approval of the design proposal, which does not include a fourth story. The Planning Commission is recommending approval of a 3.5' height variance, but not an 11.5' height variance. The Downtown Parking Commission is recommending denial of the parking variance, but approval of the proposed mitigation plan. She reviewed the parking mitigation plan as follows: In exchange for use of the public parking system for the deficit spaces, the developer would pay the fee of $20,000 per deficit space and building management or guests would buy residential permits to use in the permissible public parking lots. $40,000 of the fee for deficit spaces would be deposited in the City's Downtown Parking Enterprise Fund prior to issuance of a building permit for the project, the remainder according to the schedule established in the Tax Increment Financing (TIF) Agreement for the project. Conceptually the payment of the balance would be in fifteen $20,000 annual increments beginning in year 5 of the TIF Agreement. Each of the one bedroom and larger units must have at least one parking space reserved for it in the building's garage, and half of the alcove units must have a reserved parking space in the garage. If there are no available parking spaces in the building's garage for guests, then guests would pay standard fees to park either in the City parking ramp or purchase a residential permit from the City to park in a public lot in which overnight residential parking is allowed. Councilmember Odebrecht asked City Attorney Land to compare this proposal with the "Woodbury Decision;" and she replied that the Woodbury Decision revolved around requiring the developer to pay for infrastructure in the general vicinity. This is a different formula in that the City is requiring the developer to provide for specific parking arrangements. It is specific to the project and meets the elements of the development agreement as opposed to the Woodbury Decision. Councilmember Junker pointed out that, as the Downtown Parking Commission worked on the mitigation plan, it acknowledged that if 100% of the resident parking requirement were met on site, then mitigation would be for guest parking, not for the standard 1.5 parking spaces per residential unit. Guest parking is 1 for every three units. The DTPC agreed that mitigation could be used based on the City's current parking ratio requirements. The 17 number is coming from an independent parking study based on the peak parking demand for urban, rather than suburban parking needs. Under the City's current parking ratio parameters, the project could be considered to be short by 39 parking spaces rather than 17. Page 10 of 15 City Council Meeting May 4, 2021 Councilmember Odebrecht stated the design is great for downtown and he appreciates all the revisions. However he is concerned about the parking challenge. Councilmember Junker stated that the last 5 downtown residential developments have provided 761 parking spaces on site for 346 units, equaling a ratio of 2.2 spaces per unit. If that ratio had been 1.2 per unit, there would be 346 cars parked on downtown streets right now due to those residential developments. There would have been a dramatic parking mess had those residential developments not provided for all the needed parking on site. Therefore he feels this 61-unit development with 73 on -site parking spaces has a deficit of 39, which places a great parking burden on the downtown. Also, one-third of the 73 on -site parking spaces are compact. Using a ratio of 1.5 parking spaces per unit, there should be 92 parking spaces on site for residents (73 proposed) and so the proposal is short 19 spaces for residents and 12 short for guests. Councilmember Polehna commented the Council has never discussed tax increment financing for this development, yet it is written into the proposed mitigation agreement; and Mr. Turnblad explained that any approvals the Council makes tonight need to be contingent on approval of TIF. The developers have applied for TIF and the project is eligible for TIF due to code compliance issues. There is progress toward a TIF agreement, but it has not yet come to the City Council because it is not ready for review. It is not unusual to approve portions of the project before approving a TIF agreement. This application has been extended once and may not be extended again. Councilmember Junker reiterated his opinion that the parking deficit is 39 spaces, so at $20,000 per space the total should be $780,000. He did some number crunching and found that another ramp replicating the present ramp with 250 parking stalls would cost about $6-8 million. $340,000 of that (the parking mitigation cost for 17 spaces as indicated in the staff recommendation) equates to about 4%, essentially very little of the total needed to build a parking ramp. Plus it would put a 39 space deficit burden on the City for the next ten years because he does not see a parking ramp being built for at least ten years. Mayor Kozlowski inquired if the parking mitigation plan guarantees the use of those spaces in the ramp; and Mr. Turnblad replied no, it just pays for use of the system. The users would still have to come to City Hall and buy a monthly pass. Mayor Kozlowski stated he loves how the building looks and the idea of having this housing in downtown Stillwater. The developer is very well respected. However the City works very hard to accommodate parking demands downtown and he would really hate to take a step in the wrong direction. He does not think the parking variance is an option and he is not certain the parking deficit is truly 17 spaces. Councilmember Polehna voiced concern about setting a precedent by granting the height variance. Councilmember Junker agreed that Stillwater is a three story city. There are higher structures, but that is due to building elements, not a fourth story. Mayor Kozlowski stated he wants to see this project work, but he too struggles with the top story. If parking were not an issue the fourth story would not be so difficult. Councilmember Junker stated his other issue is the six short term rentals (10%). Page 11 of 15 City Council Meeting May 4, 2021 Councilmember Odebrecht remarked the short term rental regulations would be enforced through the short term rental ordinance. There is high incentive to abide by the rules or the City will revoke the short term rental permit. Nick Walton, developer, commented that the last time the proposal was before the Council, there seemed to be consensus that the height was OK, so the focus shifted to parking. The City came up with a plan for $20,000 per stall. He agreed to that, even though it was mid application. He thought the conversation tonight would be about whether mitigation would be for 17 stalls or some other number. The number 39, referenced at the DTPC in February, was based on a 50-60 year old parking policy. The current study, done independently, says the project will have a 17 space deficit. He feels like this is being derailed. Councilmember Odebrecht noted that he made the motion to table last time because he felt the Council was not close to approval. He can get past the height, but is struggling to get past the parking issue. The mitigation plan really helps and is a big asset but he recognizes that the City is going to be floating those spaces for a few years till a parking ramp is built. Mayor Kozlowski pointed out there is no public transportation in Stillwater. He does not feel the proposal includes enough parking for the residents. He thinks they will have more cars than what the study is saying. Mr. Turnblad stated he feels that this is a different project than the previous 5 condo projects, and that the residents in a rental unit have a different profile than condo owners. He believes the International Transportation Engineers study is accurate because its formulas are based on thousands of case studies. Councilmember Junker pointed out the project rents are on the higher end so if two people are living there, they are very likely to have two cars. Mayor Kozlowski asked if any Councilmembers are willing to apply the parking mitigation payments over the course of the TIF agreement or should they be paid up front? Mr. Walton stated if the payments are charged up front, they cannot start the project. Since the parking ramp will not be built for a number of years, he would prefer to pay the parking mitigation fees around the time when the City would be spending it to build a ramp. The idea of starting payments in year five was that the project would be stabilized then and would be in a position to pay. Councilmember Junker remarked he would not even consider a 17 space deficit. Mayor Kozlowski asked if mitigating anything above 17 spaces kills the project; and Mr. Walton replied it depends on the timing. If there is time, he could look at increasing the number. Redevelopment TIF is allowed 26 years. He did not plan to ask for 26 years but if there is time to work with it, he would consider a bigger number. Mayor Kozlowski commented he does not know how the City will ever build this ramp unless it enters partnerships with developers like this. Stillwater gets 10,000 visitors for the fourth of July and they all somehow find a place to park. It is clear the City must build a ramp at some point and the way to do that is by working with developers. If the City does not look for ways to creatively finance that ramp with help from private developers, it will never get built. The Armory is another example of a building that will never have the parking needed on site. Page 12 of 15 City Council Meeting May 4, 2021 Councilmember Junker stated it is clear the City needs another parking garage. But he would like a parking garage to support a growing downtown and not have the parking garage be one-fourth filled up with permits for residents. Councilmember Polehna noted that a number of businesses contribute nothing to parking mitigation because they were in business prior to the mitigation policy going into effect. He views this project as an opportunity to start to build up the funds for a parking ramp. He asked if the developers considered using TIF to try to mitigate some of the site problems and put more parking on site; and Mr. Walton responded that it is physically impossible to add more parking on site without getting into the water table. Councilmember Junker pointed out that 73 parking stalls would accommodate 36-37 units. The City's 50 year old formula is roughly 1.8 stalls per unit. If this were a 50 unit building based on the current policy, it would require 75 stalls on site plus 16 guest parking spaces. Under that scenario, he would support the proposed 73 on -site parking spaces that would fit the City's current parameters of 1.5 spaces per unit, along with mitigating the guest parking deficit as recommended by staff. Mr. Walton pointed out that the parking needs study was done by engineering experts using solid data, versus Councilmember Junker's gut feeling. As a developer, he followed the process and would like to know why the City would prefer to use the 50 year old parking policy over the engineering study. Councilmember Odebrecht stated he understands the City will have to be in debt for a while to get a parking garage built. He can support the staff recommendation but still cannot shake the feeling that the project is being shoehorned into a space. Councilmember Collins stated he would be more comfortable using the 39 space deficit. Councilmember Polehna agreed with using the 39 space deficit and eliminating the top floor. Mayor Kozlowski stated he agrees but he thinks that effectively kills the project. Motion by Councilmember Polehna, seconded by Councilmember Odebrecht, to deny the parking variance and approve mitigation for the 39 space deficit per option 3 in the staff parking mitigation options (for a portion of mitigation charges up front and the balance over 15 years). Motion passed 4-1 with Councilmember Junker voting nay. Motion by Councilmember Polehna, seconded by Councilmember Collins, to adopt Resolution 2021-065, Resolution Approving Setback Variances Associated with a 61-Unit Apartment Building to be Located at 200 Chestnut Street East (Case No. 2020-60). All in favor. Motion by Councilmember Junker, seconded by Councilmember Odebrecht, to adopt Resolution 2021-066, Resolution Approving Height Variances of 3' 5" Associated with a 61- Unit Apartment Building to be Located at 200 Chestnut Street East (Case No. 2020-60). All in favor. Motion by Councilmember Odebrecht, seconded by Councilmember Collins, to adopt Resolution 2021-067, A Resolution Denying a Design Permit Appeal for the Proposed 61-Unit Apartment Building to be Located at 200 Chestnut Street East (HPC Case No. 2020-32). Motion passed 3-2 with Councilmembers Junker and Polehna voting nay. Page 13 of 15 City Council Meeting May 4, 2021 Ms. Wittman summarized that, with the passing of the 11.5' variance, the design permit appeal was upheld. So the Council may now vote on the CUP for the 61 unit apartment complex with 10% short term home rental and parking mitigation. Motion by Mayor Kozlowski, seconded by Councilmember Collins, to adopt Resolution 2021- 064, Resolution Approving a Conditional Use Permit for a 61-Unit Apartment Building to be Located at 200 Chestnut Street East (Case No. 2020-60), removing the short term rental language. Motion passed 3-2 with Councilmembers Junker and Polehna voting nay. NEW BUSINESS Final Plat and Development Agreement for White Pine Ridge City Planner Wittman explained that Jon Whitcomb, Metro East Commercial Real Estate, Inc. is requesting Final Plat approval and Development Agreement approval for White Pine Ridge, a 14-lot residential subdivision at 12950 75th Street North. The Council approved the Preliminary Plat in January of 2021. Staff finds the Final Plat to be acceptable and recommends approval, however the Development Agreement is still being fine-tuned so staff recommends tabling the Development Agreement. Motion by Councilmember Odebrecht, seconded by Councilmember Junker, to adopt Resolution 2021-068, A Resolution Approving Final Plat for White Pine Ridge (Case No. 2021- 14), and to table the Development Agreement. All in favor. Great River Greening Partnership Ms. Wittman explained that part of the North Aiple (Lumberjack Landing) Plan is a 10-year vegetation management plan. Great River Greening (GRG), a nonprofit organization, has expressed interest in assisting the City in vegetation management for the first five years. GRG would like to contract with the City to conduct all Year 1 action items to include inventorying all management unit flora and groundwater seeps, assessing riverbank stability, and preparing species removal and site restoration plans. GRG would then apply on behalf of the City for a Minnesota Legacy Outdoor Heritage Fund (OHF) grant to implement future phases. The City's cost in Year 1 would be $13,500 and $3,800 per year in Years 2-6. Staff believes there is public benefit to the GRG partnership proposal and would recommend the Council direct staff to continue to work with GRG on memorializing the agreement. Motion by Councilmember Collins seconded by Councilmember Junker, to direct staff to move forward with a partnership with Great River Greening on a 10-year management plan for Lumberjack Landing. Motion passed 4-1 with Councilmember Polehna voting nay. Hwy 36 and Greeley Street MnDOT Conveyance Community Development Director Turnblad stated that the Minnesota Department of Transportation (MnDOT) is offering to sell 1.25 acres of property at the northeast quadrant of Hwy 36 and Greeley Street to the City of Stillwater at a price of $367,000. The Washington County CDA has offered to work with the City to market the property. It is also considering funding a portion of the purchase price to reduce the City's carrying burden until it is re- sold to a developer. Staff finds the property is a high visibility site at a prominent Page 14 of 15 City Council Meeting May 4, 2021 intersection and it would be advantageous to the City to own it for the purpose of controlling what is developed there. Motion by Mayor Kozlowski, seconded by Councilmember Odebrecht, to direct staff to identify potential funding sources for the possible purchase of 1.25 acres of property at the northeast quadrant of Hwy 36 and Greeley Street. All in favor. COUNCIL REQUEST ITEMS There were no Council request items. ADJOURNMENT Motion by Councilmember Polehna, seconded by Councilmember Junker, to adjourn. All in favor. The meeting was adjourned at 9:31 p.m. if--.F--- Te Kozlowski, Mayor ATTEST: homas McCarty, Acting City Clerk Resolution 2021-060, Resolution Approving the Addition of Additional License Premises Owned by La Carreta, LLC Resolution 2021-061, A Resolution Approving the Lot Line Adjustment Between 12950 75th Street North and & 12960 75th Street North (Case No. 2021-21) Resolution 2021-062, Resolution for Temporary Outdoor Dining Permit Resolution 2021-063, A Resolution Vacating a Public Drainage and Utility Easement Located Within the City of Stillwater, Minnesota (Case No. 2021-23) Resolution 2021-064, Resolution Approving a Conditional Use Permit for a 61-Unit Apartment Building to be Located at 200 Chestnut Street East (Case No. 2020- 60) Resolution 2021-065, Resolution Approving Setback Variances Associated with a 61- Unit Apartment Building to be Located at 200 Chestnut Street East (Case No. 2020-60) Resolution 2021-066, Resolution Approving Height Variances Associated with a 61- Unit Apartment Building to be Located at 200 Chestnut Street East (Case No. 2020-60) Resolution 2021-067, A Resolution Denying a Design Permit Appeal for the Proposed 61-Unit Apartment Building to be Located at 200 Chestnut Street East (HPC Case No. 2020-32) Resolution 2021-068, A Resolution Approving Final Plat for White Pine Ridge (Case No. 2021-14) Page 15 of 15