City Council Minutes 03-12-1990MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, March 12, 1990 - 7:00 p.m.
Members Present: Ken Maus, Fran Fair, Warren Smith, Shirley
Anderson, Dan Blonigen
Members Absent: None
2. Approval of minutes.
Motion was made by Warren Smith, seconded by Shirley Anderson,
to approve the minutes of the regular meeting held
February 26, 1990. Motion carried unanimously.
3. Citizens comments/petitions, requests, and complaints.
None forthcoming.
4. Consideration of approving preliminar_•y and final plat -
Remmele addition.
Assistant Administrator O'Neill explained that the plat cannot
be recorded at this time, as Remmele Engineering has been
unable to acquire all of the land affected by the proposed
plat. He went on to inform Council that Remmele hopes to
acquire the necessary property in time for the Council meeting
scheduled for March 26, 1990.
After discussion, motion was made by Dan Blonigen, seconded by
Warren Smith, to table consideration of the preliminary and
final plat of the Remmele addition until the proper names and
signatures of the affected property owners are placed on the
plat. Motion carried unanimously.
5. Public hearing - Consideration of vacation of Fallon Avenue
between Chelsea Road and I-94 and consideration of vacation of
utility easements.
Mayor Maus opened the public hearing. Assistant Administrator
O'Neill explained that this item should be tabled pending
finalization of the Remmele addition plat.
After discussion, motion was made by Warren Smith, seconded by
Fran Fair, to continue the public hearing. Motion carried
unanimously.
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6. Public hearing and consideration to adopt a resolution
relating to the modification by the Housing and Redevelopment
Authority in and for the City of Monticello of the
redevelopment plan relating to Redevelopment Project No. 1,
the modification of the Tax Increment Financing Plans relating
to Tax Increment Financing District Nos. 1-1 through 1-9, and
the establishment of Tax Increment Financing District
No. 1-10, all located within Redevelopment Project No. 1, and
the approval and adoption of the Tax Increment Financing Plan
relating thereto.
Mayor Maus opened the public hearing. Staff informed Council
that approval of this TIF district has been rescheduled to
March 26, 1990. The added time will allow the City to fully
meet the public notice requirements.
After discussion, motion was made by Shirley Anderson,
seconded by Warren Smith, to continue the public hearing on
this matter to the regular meeting scheduled March 26, 1990.
7. Public hearing - Consideration of a resolution adopting tax
increment financing plan - The Lincoln Companies/K-Mart.
Mayor Maus opened the public hearing. Council was informed by
staff that the public hearing on this matter should be
continued to the next regular meeting of the City Council.
The delay will provide time to complete all the necessary
public hearing requirements. In addition, the delay will not
substantially affect the project schedule.
After discussion, motion was made by Dan Blonigen, seconded by
Shirley Anderson, to continue the public hearing on this
matter to the next regularly scheduled meeting of the City
Council on March 26, 1990.
8. Consideration of purchase of the Pratt property - a portion of
land necessary for the 7th Street alignment.
Assistant Administrator O'Neill asked Council to authorize
purchase of property owned by Larry and Debra Pratt for the
sum of $68,000. O'Neill informed Council that the City
originally expected to purchase the property for $61,000;
however, the owners of the property have failed to make any
payments on their loan. As a result, interest penalties have
been increasing to the point where principal and interest
costs may amount to as much as $7,000. O'Neill went on to
inform Council that the City Attorney indicates that clear
title to the property can only be obtained if the City pays
the original purchase price and the additional interest and
penalties.
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Finally, O'Neill informed Council that acquisition of the
property at this time is critical to the timely installation
of 7th Street improvements. Council could consider
condemnation of the property in order to obtain the necessary
right-of-way; however, the time required to complete the
process creates a problem, and there is no guarantee that the
City would be able to obtain the property at a lesser price.
Therefore, staff and the City Attorney recommend that the
property be purchased at this time.
Shirley Anderson noted that purchasing the property at a
higher price is a bitter pill to swallow; however, it looks as
though the City has no other alternative. Ken Maus requested
that City staff and the attorney make every effort to limit
the amount the City must pay beyond the original agreed upon
price of $61,000.
After discussion, motion was made by Fran Fair, seconded by
Shirley Anderson, to authorize purchase of the Pratt property
at an estimated purchase price of $68,000. Motion carried
unanimously.
9. Consideration of request to rezone R-1 (single family
residential) to PZM (performance zone mixed). Applicants, Tom
Holthaus, Matt Holker, and Steve Holker, owners of West Side
Market.
Assistant Administrator O'Neill reviewed the planning case and
informed Council of Planning Commission's recommendation that
the rezoning request be denied based on the Planning
Commission's view that the request was inconsistent with the
comprehensive plan, the added traffic created by the
development will negatively impact the area as an R-1 or
residential zone, a PZM (high density residential/ limited
commercial zone) imbedded in an R-1 zone is not consistent
with the character of the R-1 zone, allowing an R-1 zone to be
rezoned to PZM would set a poor precedent and constitute spot
zoning, and the applicant failed to demonstrate that a need
exists for the rezoning.
Shirley Anderson indicated her opposition to the development
of a car wash in the area; however, she could accept a concept
of a deli being developed at the site.
Mayor Maus noted his concern over the definition of a deli.
In this particular instance, the developers are proposing to
develop an addition with booths seating 20-30 people. A case
could be made that what's being proposed is not really a deli
but something more akin to a restaurant. Fran Fair asked the
developers if they could divide the property and sell off a
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portion of it for housing. Tom Holthaus stated that that
option does not seem feasible, as it is a bad spot for
housing. Holthaus noted that most of the homes along
Highway 75 do not sell as fast as other homes.
Ed Solberg of 1204 Sandy Lane indicated his opposition to the
proposed rezoning. Solberg reminded Council that in 1987
Council allowed a restaurant/supper club to be changed to a
convenience store under the logic that a convenience store is
less non -conforming than the supper club. Solberg went on to
say that the developers knew the rules regarding the zoning in
the area and that the rules should not be changed. In fact,
the R-1 rules were kept in place in 1987 to prohibit this very
request.
Tom Holthaus stated his support for the rezoning. He noted
that there has always been a business use at this location.
He also noted that there are other PZM zones in the city with
similar characteristics to this area. Holthaus noted that the
property has been taxed commercially. Finally, Holthaus
mentioned that the facility will draw a business from existing
traffic associated with the NSP center, the elementary school,
Riverside Terrace Park, and the neighborhood. The business
will not create traffic from outside and will benefit only
from traffic that already exists. Holthaus also went on to
describe the operation of the deli. He noted that it will not
be a restaurant with food cooked on the site; however, fresh
sandwiches and pizza will be served.
Diane Peters noted that three years ago the residents were led
to believe that this convenience store would be the only
commercial development allowed on the corner. She went on to
note that some of the landscaping requirements have not been
kept, and the screening fence was not painted.
Steve Johnson spoke to the issue and noted that in 1987 the
City Council made the best of a bad situation when they
allowed the convenience store to be developed in replacement
of the supper club. It was a logical decision that the
Council made at that time, as they opted for the lesser of two
evils. Johnson went on to note that the developers knew full
well what to expect regarding the use of that land. Johnson
went on to state that the PZM zoning is not appropriate in
this area, as it was not intended to be a transitional zone
from a business district and a residential district. In
summary, Johnson concurred with the Planning Commission's
recommendation on this matter.
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Ken Maus asked if the landscaping plan was completed. Gary
Anderson responded by saying that the screening was put in
place as requested. Some of the trees originally planted may
have died due to drought conditions. Anderson also noted that
the screening fence along the eastern border of the property
was not installed at the request of the adjoining property
owner.
Fran Fair noted that it was her recollection that the original
decision was intended to allow a convenience store as a lesser
of two evils. It was her view that the intent was not to
create a business zone. Fran Fair was opposed to the concept
of rezoning this site, as it would constitute spot zoning.
Shirley Anderson concurred with this view.
Dan Blonigen noted that there is a considerable amount of
property at this site that will be unusable if the Council is
not flexible on this matter. Blonigen noted that conditions
change and that the City needs to be willing to modify its
zoning accordingly.
Warren Smith agreed with Shirley Anderson that a car wash is
not appropriate at this site. In terms of the deli, he might
be for it depending on the nature of the deli. He also agrees
with Dan that the best use of the land might be for commercial
use; however, he did note that it is important that the
Council be consistent with the decision made three years ago.
At that time, it was intended that this convenience store be
allowed to develop in an R-1 district on a limited basis with
no further expansion contemplated; therefore, Warren Smith was
not in favor of the zoning amendment.
After discussion, motion was made by Dan Blonigen to rezone
the property to B-1 which would allow convenience stores,
laundromats, beauty parlors, barber shops to operate in a
neighborhood commercial zone. Motion seconded by Shirley
Anderson. During the discussion, Warren Smith again noted
that the intent at the time that the convenience store was
developed was to not allow further development. That is why
the land wasn't rezoned at that time. Fran Fair agreed with
Warren Smith's recollection of the events in 1987. Voting in
favor of the motion: Dan Blonigen, Shirley Anderson.
Opposed: Ken Maus, Warren Smith, Fran Fair. Motion fails.
Motion was then made by Warren Smith, seconded by Fran Fair,
to deny the rezoning request based on the finding that the
rezoning is inconsistent with the comprehensive plan because
the comprehensive plan discourages commercial development in
residential areas, the added traffic created by the
development will negatively impact the area as an R-1 or
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residential zone, a PZM (high density residential/ limited
commercial) zone imbedded in an R-1 zone is not consistent
with the character of the R-1 zone, allowing an R-1 area to be
rezoned to PZM would set a poor precedent and would constitute
spot zoning, and the applicant failed to demonstrate that a
need exists for the rezoning. Voting in favor of the motion:
Shirley Anderson, Ken Maus, Fran Fair, Warren Smith.
Opposed: Dan Blonigen.
10. Update: Status of conditional use permit which would allow
development of a car wash and deli at the site of the West
Side Market. Applicants, Tom Holthaus and Matt and Steve
Rn 1 ker.
This item was withdrawn from the agenda due to Council's
decision to deny related rezoning request.
11. Consideration of a variance request to allow no curbing or
hard surfacing in certain areas of a driving area and
loading/unloading area. Applicant, Martie's Farm Service.
Staff informed Council of the Planning Commission's
recommendation that the variance request be granted which
would reduce the amount of blacktop and curbing associated
with the development.
Shirley Anderson noted that she is concerned that an
insufficient hardship has been demonstrated in this case and
that a variance from the ordinance is only appropriate when a
hardship exists. Ken Maus also noted that by allowing the
development to occur without the level of curbing and
blacktopping as required by ordinance would set a precedent
and that a variance in this case may not be appropriate. Maus
went on to say that allowing a variance in this case could
open the door to similar requests by other developing
manufacturing plants. Maus noted that it might make more
sense to modify the ordinance in this case rather than allow
a variance.
Mr. Martie asked why Simonson Lumber is allowed to operate
vehicles in areas where there is an unpaved surface. In
response to Martie's question, staff reported that the
Simonson Lumber parking lot design will be reviewed in terms
of City ordinance requirements. If there is a problem at this
site, Council will be informed, and the City can respond
accordingly.
Council Minutes - 3/12/90
After discussion, it was the general consensus that the hard
surfacing and curbing requirement as outlined in the City
ordinance needs to be reviewed. Staff informed Council that
it would begin work on modifying the hard surface and curb
requirement in a manner that would accommodate special
circumstances as noted in the Martie Feed Store development
and the Simonson Lumber development.
After discussion, motion was made by Fran Fair, seconded by
Shirley Anderson, to deny the variance request based on the
finding that the applicant failed to demonstrate a sufficient
hardship associated with meeting the requirements of the
ordinance. In the motion, staff is directed to prepare
potential amendments to the hard surface and curbing
requirements of the ordinance which would provide the City
with more flexibility in determining hard surface and curb
requirements at each development site. Motion carried
unanimously.
12. Consideration of replacing overhead doors at the public works
building.
After discussion, motion was made by Fran Fair, seconded by
Shirley Anderson, to replace the doors with the steel rimmed
doors from Automatic Garage Door Company for the amount of
$5,242. Motion carried unanimously.
13. Consideration of holding annual junk amnesty day on June 1,
1990.
After discussion, motion was made by Shirley Anderson and
seconded by Warren Smith to schedule the annual junk amnesty
day for May 19, 1990. Motion carried unanimously.
14. Consideration of hiring receptionist/utility billing clerk.
Assistant Administrator O'Neill informed Council that the
staff's selection process is complete and staff recommends
Wanda Kraemer for the position of receptionist/utility billing
clerk. O'Neill noted that the City received 210 applications
for the position. Due to the high number of qualified
candidates, the selection process was particularly difficult;
however, Wanda Kraemer rose to the top by virtue of her
experience as a receptionist for the City of Plymouth. In
addition, she received excellent references.
After discussion, motion was made by Shirley Anderson,
seconded by Warren Smith, to authorize hiring of Wanda Kraemer
for the position of receptionist/utility billing clerk at a
salary of $8.71 per hour.
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15. Consideration of granting a seasonal 3.2 beer license to the
Monticello Softball Association.
After discussion, motion was made by Warren Smith, seconded by
Shirley Anderson, to grant the license contingent upon receipt
of necessary insurance documents and fees. Motion carried
unanimously.
16. Consideration of gambling license application renewals -
Monticello Jaycees.
With no action being taken in opposition to the license
applicant, the license application is renewed.
17. Consideration of liability insurance Coverage Waiver of
Immunity.
The City Council was informed that the City's insurance
carrier, The League of Minnesota Cities Insurance Trust,
offers the cities the option of waiving the statutory
liability limits to the extent of the excess liability
coverage purchased. The City has a basic liability coverage
of $600,000 and has purchased an additional $1,000,000 in
excess liability coverage. The Council discussed the
feasibility of choosing to waive the statutory liability
limits which would allow all claims to be covered by the
higher liability limits of $1.6.
The Administrator noted that if the City Council chose to
waive its statutory limit of $600,000, the additional premium
cost would amount to over $1,900 per year; and a
recommendation was made to not waive the statutory limits.
The Council also discussed the merits of increasing the excess
liability coverage from $1,000,000 to a higher limit but felt
that the protection provided by the state statutues limiting
most claims to $600,000 should be adequate protection with an
excess liability coverage of $1,000,000.
As a result, motion was made by Dan Blonigen, seconded by
Shirley Anderson, and unanimously carried to inform The League
of Minnesota Cities Insurance Trust that the City did not wish
to waive its statutory liability limit and to continue
purchasing an excess liability coverage amount of $1,000,000.
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18. Consideration of request for one -day setup/3.2 beer license
for Ducks Unlimited Banquet and one -day 3.2 beer license for
July 1 Riverfest celebration - Lions Club.
After discussion, motion was made by Fran Fair, seconded by
Warren Smith, to approve the liquor licenses as requested.
Motion carried unanimously.
19. Other matters.
Council was informed by Roger Mack that the Lions Club is
interested in assisting with development of a park shelter at
Ellison Park.
After discussion, it was the general consensus that the City
would work cooperatively with the Lions Club toward
development of such a shelter. It was suggested that City
staff meet with the Lions Club and develop preliminary plans
for the park shelter for further review by Council.
Motion was made by Dan Blonigen, seconded by Shirley Anderson,
to establish May 9 as the annual Board of Review meeting.
Motion carried unanimously.
Peg Zoccoli of the Elk River Builders Association requested
that Counc i consider partipating in the Home Magazine which
previews homes for sale in the northwest metro area. Council
was informed that the cost to run a full page ad is $1,650.
After discussion, it was the consensus of Council that there
is not enough support for placement of an ad in this issue of
the magazine; however, next year with support from local
builders, there is a good chance that the City and the
builders can work cooperatively toward development of a joint
ad.
A general discussion regarding the City's public nuisance
ordinance developed. No action taken.
There being no further discussion, the meeting adjourned.
Respectfully submitted,
v
Jeff O'Neill
Assistant Administrator