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City Council Minutes 07-22-1991MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, July 22, 1991 - 7:00 p.m. Members Present: Shirley Anderson, Brad Fyle, Ken Maus, Dan Blonigen, Clint Herbst Members Absent: None 2. Approval of minutes. After discussion, a motion was made by Brad Fyle and seconded by Dan Blonigen to approve the minutes of the regular meeting held July 8, 1991. Voting in favor: Shirley Anderson, Brad Fyle, Ken Maus, Dan Blonigen. Abstaining: Clint Herbst. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. 4. Public hearing and consideration to adopt a resolution relating to modification of 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 TIF District Nos. 1-1 through 1-12, and the establishment of Tax Increment Financing District No. 1-13, all located within Redevelopment Project No. 1, and the approval and adoption of TIF plans relating thereto. (Shingobee, Inc.). Ken Maus opened the public hearing. 011ie Koropchak reviewed the concepts behind the establishment of the TIF plan for the Shingobee development. She noted that the proposed project will not be constructed until a leasee is found. Establishment of the TIF plan and preparation of all construction pre -planning will allow a potential project completion time to be reduced by 60 to 90 days. The reduction in construction time will enhance the ability of the City to market the site to companies that are interested in renting rather than owning an industrial facility. Koropchak also noted that the use of tax increment financing is not designed to benefit the developer; but instead, TIF benefit will carry through to the leasee in the form of a rental reduction cost. This factor also enhances the ability of the City to market the project to a potential renter. Ken Maus noted that the developer, Shingobee Builders, has tied up the necessary land for at least one year and has accepted the financial risk associated with City preparation Page 1 Council Minutes - 7/22/91 of the finance plan. Maus also noted that this marketing technique has also been used by other communities, and he believed it was worth a try. There being no comments from the public forthcoming, the public hearing was closed. After Council discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to table adoption of the resolution relating to modifications for establishing TIF plans and District No. 1-13 until such time that a qualified leasee is found. At such time a leasee is found, then adoption of the resolution shall be considered. Motion carried unanimously. 5. Consideration of issuing a negative declaration, Environmental Assessment Worksheet, Cardinal Hills residential subdivision. Assistant Administrator O'Neill informed Council that in accordance with State Statutes, an Environmental Assessment Worksheet (EAW) was prepared for the Cardinal Hills residential subdivision. The EAW was printed in the Environmental Quality Board Monitor on June 10, 1991, and it was distributed to numerous local, state, and federal agencies. In response to the EAW, the City received questions and comments from the MPCA, the Minnesota Department of Natural Resources, and the City received a letter from the State Historical Society. O'Neill went on to review the letter submitted and the corresponding response made by the City. In summary, O'Neill reported that it appears that an Environmental Impact Statement is not necessary, as significant environmental issues have not been raised in response to the Environmental Assessment Worksheet. After discussion, a motion was made by Dan Blonigen and seconded by Shirley Anderson to declare that the environmental impacts of the Cardinal Hills residential subdivision are sufficiently understood based on the findings noted in the EAW and based on the input provided by other agencies via the EAW process. Therefore, preparation of an Environmental Impact Statement is not necessary. Motion carried unanimously. Page 2 Council Minutes - 7/22/91 6. Consideration of approving developers agreement governing City/developer installed improvements - Cardinal Hills Phase I. Assistant Administrator O'Neill reviewed the developer agreement governing City/developer installed improvements for Cardinal Hills Phase I. O'Neill noted that the agreement is very similar to the previously -approved agreement between the City and Prestige Builders which governs the understanding regarding improvement to the Briar Oakes Estate area. O'Neill noted that the Cardinal Hills agreement requires the developer to provide 40% of the total cost of the project in the form of a letter of credit and to provide the City with 1-1/2 times the value of each lot sold, with this payment made at the time each home is developed. The surplus funds collected with the payment of the additional assessment amount will be placed in a fund and be allowed to accumulate until such time that enough funds have been collected to finance the payment of the remaining assessments. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to adopt the developers agreement for City/developer installed improvements for Cardinal Hills Phase I. Motion carried unanimously. 7. Consideration of preliminary and final plat request entitled Phase I, Cardinal Hills residential subdivision. Applicant, Value Plus Homes. Assistant Administrator O'Neill informed Council that the Planning Commission reviewed the preliminary plat of Phase I of Cardinal Hills residential subdivision and recommended that Council approve the preliminary plat. O'Neill noted that the preliminary plat of Phase I of Cardinal Hills includes development of 24 lots on 10 acres of land located directly south of the proposed elementary school site and adjacent to Fallon Avenue. Phase I represents 10% of the total land owned by the Value Plus developers. The remaining 90% of the Cardinal Hills subdivision area will be platted at a later date. O'Neill informed Council that the Value Plus development plan calls for marketing homes to the first-time home buyer market. It is likely that most of the homes developed at this site will be financed through the MFHA housing program, which limits the price of homes to $70,000. Page 3 Council Minutes - 7/22/91 Brad Fyle asked if turn-arounds might be necessary at the termination point of the roads leading to the balance of the property. John Simola noted that it appears that the project will move forward into phase II relatively soon; therefore, it does not make sense to require improved turn-arounds. In addition, City vehicles are able to turn around in the space that is available within the right-of-way. The developers informed Council that six of the lots have buyers and that it is expected that six more buyers may be forthcoming by winter. Shirley Anderson noted her concern regarding the method used for establishing street names. She suggested that the City develop a committee to work toward establishing a standardized street naming and numbering system. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to approve the preliminary and final plat of the Cardinal Hills Phase I residential subdivision. In addition, development of subsequent phases of the Cardinal Hills subdivision should be designed in a manner such that 1) "double fronting" or lots fronting two streets should be limited. If it is not possible to completely eliminate double fronting lots, such lots should have added depth as required by the Planning Commission. 2) Cardinal Hills park plan should not be impacted by the availability of nearby school/park facilities. Future park development must comply with the park dedication requirement of 1 acre of park land for each 10 acres of developed land. Motion carried unanimously. 8. Consideration of request to rezone 10 acres located south of the proposed elementary school site and adjacent to Fallon Avenue. Request is to rezone from AO (agricultural) to R-1 (single family residential). Applicant, Value Plus Homes. Jeff O'Neill reported that in order to develop the property associated with the preliminary plat of Cardinal Hills residential subdivision, the land area involved needs to be rezoned from agricultural to an R-1 designation. It is proposed at this time to rezone only that portion of the land area developed with phase I of Cardinal Hills Estates. After discussion, a motion was made by Dan Blonigen and seconded by Clint Herbst to rezone the north 1/2 of the south 1/2 of the south 1/2 of Section 13, Township 121, Range 25, in the city of Monticello from AO to R-1. Motion is based on the finding that the proposed zoning district is consistent with the comprehensive plan of the city, consistent with the geographic area, and there is a need to establish an R-1 zone in this area. Motion carried unanimously. SEE AMENDMENT NO. 212B. Page 4 Council Minutes - 7/22/91 9. Consideration of a request to amend Section 3-2, General Building and Performance Requirements, by adding a provision requiring a two -car garage be constructed along with construction of each single family dwelling unit. Assistant Administrator O'Neill informed Council that Planning Commission recommended approval of the ordinance amendment requiring all single family dwellings to be constructed to include a garage with a minimum floor area of 400 sq ft (two - car garage). O'Neill noted that the proposed ordinance amendment stems from citizens' input regarding concerns that development of lesser valued homes with single -car garages in established neighborhoods would result in the depreciation of neighborhood land values. It was suggested that a two -car garage requirement is necessary, as a one -car garage is not sufficient area to store a vehicle and other items commonly found in most homes such as bikes, lawn mowers, lawn chairs, grills, etc. It was suggested that under the current ordinance, most of these items would need to be stored outside, which could result in depreciation of existing home values in the neighborhood. By amending the ordinance as proposed, there is an opportunity to assure development of two -car garages at the outset of the development of the Cardinal Hills development and the Evergreens development, thus avoiding problems the City has had in the past with other neighborhoods where sufficient garage space was not constructed with the original dwelling. Clint Herbst was in favor of the proposed ordinance amendment, as there is no record of any individual wishing to build a home without a garage in the last five years; therefore, he did not feel that by adopting this ordinance the City would be somehow eliminating a potential home owner from building a home in Monticello. Dan Blonigen opposed the ordinance. He noted that even though no applications have come in by home owners wishing to build a home without a garage, this additional restriction may someday result in such a problem. He went on to note that if we make it mandatory that two -car garages are required, then we should allow living space in homes to be reduced in order to keep the overall cost of the home as reasonable as possible. After discussion, a motion was made by Brad Fyle and seconded by Clint Herbst to approve the ordinance amendment requiring that all single family dwellings be constructed to include a garage with a minimum floor area of 400 sq ft. Motion is Page 5 Council Minutes - 7/22/91 based on the finding that a minimum requirement of garage area of 400 sq ft is reasonable and proper given the large percentage of families owning two cars, and the added storage area provided by a two -car garage provides space for storage of household articles in an enclosed area rather than outside, thereby improving the appearance of neighborhoods and contributing toward maintaining property values. Voting in favor: Brad Fyle, Ken Maus, Shirley Anderson, Clint Herbst. Opposed: Dan Blonigen. SEE ORDINANCE AMENDMENT NOS. 210, 211, AND 212. 10. Consideration of a request for a conditional use permit which would allow public school use in an R-1 (single family _residential) zone. Applicant, Monticello School District #882. Assistant Administrator O'Neill reviewed the proposed elementary school site plan. Ken Maus noted that on occasion parking can be a problem at Pinewood Elementary School and at the high school, and he requested that the City Engineer take a close look at the number of stalls required so as to assure the City that adequate parking will be available on site. He went on to note that the design of Fallon Avenue is such that it will be very difficult for vehicles to park safely on Fallon Avenue in the event that the on-site parking is insufficient. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve the conditional use permit which would allow school use in an R-1 zone subject to the following conditions: 1. The site plan should be amended to show sidewalk along the driveway that provides access to the proposed School Boulevard. Sidewalk should be installed at such time that residential development neighboring this site warrants development of the sidewalk. 2. The site plan should be amended to show sidewalk along the driveway providing access to Fallon Avenue. 3. The drive area leading to the service dock and loading area should be modified to include space for a turn -around near the loading dock area. Page 6 Council Minutes - 7/22/91 4. Prior to issuance of a building permit, all final parking lot design and grading plans must be approved by the City Planner and City Engineer. The motion to approve the conditional use permit is based on the finding that development of the school facility as proposed is consistent with the comprehensive plan and is compatible with the character of the existing future neighborhoods. Motion carried unanimously. 11. Consideration of a request to rezone 120 acres of land from AO (agricultural) to R-1 (single family residential), which would allow development of an elementary school facility as a conditional use. Applicant, Monticello School District #882. After discussion, a motion was made by Clint Herbst and seconded by Brad Fyle to approve the request to rezone 120 acres of land from AO (agricultural) to R-1 (single family residential), which would allow development of an elementary school facility as a conditional use. Motion is based on the finding that the rezoning is consistent with the comprehensive plan and is consistent with the character of the area. Motion carried unanimously. SEE ORDINANCE AMENDMENT NO. 212A 12. Consideration of a resolution accepting bid and ordering City Projects 91-1, Fallon Avenue, 91-2, Briar Oakes Estate, and 91-3, Cardinal Hills Phase I. Assistant Administrator O'Neill reported that the City received seven bids, with the low responsible bidder being LaTour Construction, Inc. LaTour submitted a bid security of 5% and a total bid of $513,354.47. O'Neill noted that the engineer's estimate on the project was $594,860. O'Neill informed Council that staff is not recommending that the project be ordered at this time, as some of the provisions of the development agreements associated with the Briar Oakes Estate and Cardinal Hills projects have not been executed. It was recommended that the Council take action to award the bid subject to the complete execution of the development agreements. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen accepting the bid from LaTour Construction in the amount of $513,354.47 subject to execution of the provisions of the development agreements associated with the Cardinal Hills development and the Briar Oakes Estate development. Motion carried unanimously. SEE RESOLUTION 91-24. Page 7 Council Minutes - 7/22/91 13. Consideration of resolution authorizing the issuance of general obligation improvement bonds for Projects 91-11 91-21 and 91-3. Rick Wolfsteller informed Council that in order to obtain funds for the anticipated construction cost payments, Council should authorize the issuance of bonds. Funds will not be available until late September, but this should not cause a problem with our cash flow. The bond issue amount should be adjusted to reflect the actual bid prices and any funds provided by the developer and school. In summary, the cash requirements associated with this project require an estimated total project cost of $730,000, which would include the construction cost and legal, engineering, administrative, and finance charges. Of this amount, a portion will be paid up front by the school district and by the Value Plus developers, which will result in a net bond issuance need of $515,000. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to authorize issuance of bonds for $515,000 over seven years contingent upon bids being awarded under the previous agenda item. Motion carried unanimously. SEE RESOLUTION 91-26. 14. Consideration of outside storage of construction equipment. Applicant, Floyd Kruse. Assistant Administrator O'Neill reported that in response to Council's request, the Planning Commission reviewed the use of the Floyd Kruse property and recommended that Council take legal action to enforce the ordinance based on the Planning Commission's finding that outside storage of equipment and use of the site as a staging area for the asphalt paving process is inconsistent with the zoning ordinance and inappropriate at the site. The Planning Commission did not see the need to establish an interim ordinance which would provide for short- term use of the property in a manner inconsistent with the present rules governing the zoning district in which this property is located. Brad Fyle stated that all sorts of materials such as garbage cans and 5 -gallon pails filled with oil are still on site. The person leasing the site from Kruse shows no interest in cleaning it up. Floyd Kruse noted that cleaning up the barrels is not a big deal. It could be taken care of easily. Page 8 Council Minutes - 7/22/91 Ken Maus also noted the renter has made no effort to maintain the site. If this is the intent of the renter, then the City is probably not interested in allowing this use to continue at the site. Dan Blonigen suggested that many of the vehicles could be moved to the back of the site to take advantage of the screening effect provided by the existing vegetation. Ken Maus informed Kruse that he should be concerned about the potential for oil spillage on the site, as the marketability of his property in the future could be greatly reduced if there is any indication that an environmental problem might be present at the site. Clint Herbst concurred that he would like to see improvements made to the site to improve its appearance or that action will be taken to enforce the zoning ordinance. Ken Maus asked that City staff examine the ordinance to determine if the provisions regulating parking lots might be interpreted to allow this type of use on an existing parking lot. Staff is to also again explore the development of an ordinance allowing interim use of land in the event that the parking lot requirements do not clearly allow this type of use. After discussion, a motion was made by Brad Fyle to ask for removal of the vehicles and other debris stored on site within 90 days. Motion died for lack of a second. A motion was then made by Clint Herbst and seconded by Dan Blonigen to table taking legal action until staff reviews the ordinance governing parking lots. In the interim, Kruse is asked to remove all barrels of oil, remove all vehicles that are not currently licensed or operable per the City's public nuisance ordinance, remove all garbage stored on site, grade all piles of clean fill, and park the vehicles stored on the site in the rear of the property so as to improve the screening of the vehicles using existing foliage. Voting in favor: Dan Blonigen, Shirley Anderson, Ken Maus, Clint Herbst. Opposed: Brad Fyle. 15. Council Update --Review status of Evergreens residential subdivision. Assistant Administrator O'Neill reviewed the status of the development of the Evergreens subdivision. O'Neill noted that the preliminary plat was approved in May of 1989; however, the Page 9 Council Minutes - 7/22/91 final plat was never recorded. The total area of phases I through V proposed by the preliminary plat encompasses approximately 90 acres and includes development of 236 lots. The original plan called for development of the Evergreens subdivision over five phases. O'Neill noted that the approval period for phases II through V has lapsed, which means that these phases must go through the preliminary platting process again. O'Neill noted, however, that a development agreement was established with phase I which links phases I to phases II through V; therefore, according to the City Attorney, the development agreement signed requires that the City abide by the terms, which in effect means the City has indirectly granted final plat approval of phases II through V. O'Neill also noted, however, that the developer purchasing phase I property wishes to amend the agreement which binds the City to approval of phases II through V. Because the development agreement needs to be modified, the City now has the opportunity to make changes of its own to the agreement. Specifically, O'Neill noted that the Council may be interested in taking this opportunity to suggest changes to the park design and to the east/west collector roadway that passes through the development. John Peterson of Good Value Homes was present to outline his interest in the property. He noted that it is his company's first experience in the third ring of suburbs. He stated that Monticello has a lot of appeal, the school system is wonderful, and the city services are exceptional. He would like to have his company involved in the area. He also noted he recognizes the dilemma that the City faces and wishes to work cooperatively with Kjellberg and the City toward a resolution of problems associated with the design of phases II through V. With reference to the park design, Ken Maus noted that it would be nice to move the park toward a central position on the property; however, this option may not be totally viable. Curt Kjellberg was in attendance. He noted that the development agreement was initiated two years ago, and Kjellbergs relied on it in their marketing of the project and incurred significant cost associated with development of the property in conjunction with the agreement. Page 10 Council Minutes - 7/22/91 Ken Maus noted that he would support maintaining the park in its position as originally contemplated; however, it was his view that the east/west collector street should be straightened, and the lots fronting the street should be eliminated. Dan Blonigen noted that the developer has not completed what he agreed to do. There was a big push to get the project through for the sake of rectifying the pollution problem at the Kjellberg East Mobile Home Park. Blonigen did not feel that the City is obligated to comply with any portion of the agreement if the developer wishes to change it. Clint Herbst stated that he understands the park issue and that perhaps the City could continue to allow the park to remain in its position as proposed; however, he felt that it was important that the roadway alignment problem be corrected. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to amend the development agreement governing the Evergreens subdivision to allow the first phase of the Evergreens to be divided into two smaller phases (A and B) and to require that the design of phases II through V include realignment of the east/west collector street in a manner that straightens the roadway and eliminates individual lot access to the roadway. It was determined that the park location is to remain the same. The City would consider sharing in payment of expenses associated with changing the design of phases II through V. Voting in favor of the motion: Ken Maus, Brad Fyle, Clint Herbst, Shirley Anderson. Opposed: Dan Blonigen. 16. Consideration of establishing animal impound fee schedule. Wolfsteller reported that City staff has researched fees charged by other communities for the service of holding dogs captured by animal control officers from other communities. He noted that typically veterinarians will provide the service for their clients on a limited basis primarily for kennel service for vacations. Their charges range from $8 to $10 per day. Therefore, it was his view that increasing the City's charge from $7.25 per day to a higher amount is reasonable given the amount that veterinarians charge for essentially the same service. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to increase the daily charge from $7.25 per day to $8 per day. Motion carried unanimously. Page 11 Council Minutes - 7/22/91 17. Consideration of Wright Count StateonBank Hi hwa request in their streetsca e brid e railin sections al parking lot. After discussion, a motion was made by ShirleyAnderson two seconded by Brad Fyle to allow the bank o refurbished bridge railings along Highway 25 in conjunction The bank would not with development of their newparking lot. The was paid for be charged for the bridge g as the via the original streetscape project assessment roll. In work addition, the City shall sell three panels to be taken from the old river bridge. Theinto latticesparking lot refurbished by the bank and incorporated n panel. design. The cost of the lattice work is $75 per p Motion carried unanimously. 18. Ap roval of bills. After discussion, a motion seconded by Brad Fyle, to Motion carried unanimously. 7Neil is nt Administrator was made by Shirley Anderson and approve the bills as submitted. f Page 12