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City Council Minutes 07-10-2000MINUTES - REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, July 10, 2000 - 7 p.m. Members Present: Roger Belsaas, Roger Carlson, Clint Herbst, Brian Stumpf Members Absent: Bruce Thielen Mayor Belsaas called the meeting to order at 7 p.m. and declared a quorum present. 2. Approve minutes of June 26, 2000 regular council meeting. BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE JUNE 26, 2000 REGULAR COUNCIL MEETING. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of adding items to the agenda. These items were requested to be added to the agenda: 1) Bondhus sewer connection, 2) Transient merchant ordinance, 3) Carwash facility, 4) State Aid Variance Board, 5) Parks Tour and 6) Ordinance amendment. 4. Citizen comments/petitions, reauest and complaints. None 5. Consent Agenda A. Consideration of a request for a conditional use permit allowing a planned unit develop- ment containing a multi -family structure with more than 12 residential units. Applicant: Silver Creek Real Estate Development. Recommendation: Approve concept plan for a PUD as a townhome project including a recommendation for the necessary ordinance amendments to accommodate townhomes of the proposed density in the R-3 and CCD Districts. B. Consideration of rezoning from I-1 to I-1 A, Construction 5, Outlot A. Applicant: City of Monticello Planning Commission. Recommendation: Adopt an ordinance amendment to approve the rezoning of Outlot A, Construction 5 Addition from I-1 to I-1 A. Clint Herbst requested removal of Item #5A from the consent agenda. ROGER CARLSON MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEM #5A. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 1 Council Minutes - July 10, 2000 6. Consideration of items removed from the consent agenda for discussion. The Council discussed Item #5A a planned unit development for townhomes on property located along 7" Street. While both townhomes and multiple family dwellings are allowable uses in the R-3 Zoning District, their density requirements are different. The Council was being asked not only to approve the concept plan for a planned unit development but also consider an amendment to the zoning ordinance that would set density requirements by zoning district rather than by type of housing. Clint Herbst explained that at the Planning Commission meeting reviewing this proposal the Planning Commission thoroughly discussed parking for the proposed development. The consensus of the Planning Commission was that there should be a minimum garage space of at least 400 sq. ft. per unit. While there is no garage space requirement in the ordinance for the R-3 Zoning District, because this is a planned unit development a garage space requirement could be imposed on the development. The Planning Commission had also addressed non-resident parking and traffic flow patterns through the development. Roger Carlson agreed that garage space was an important issue noting that a one car family was something of a rarity in todays society. CLINT HERBST MOVED TO APPROVE THE CONCEPT PLAN FOR A PUD AS A TOWNHOME PROJECT INCLUDING A RECOMMENDATION FOR THE NECESSARY ORDINANCE AMENDMENTS TO ACCOMMODATE TOWNHOMES OF THE PROPOSED DENSITY IN THE R-3 AND CCD DISTRICTS. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 7. Consideration of proposals for sale of S1,64-5,000 G.O. Improvement Bonds, Series 2000B. Mark Ruff from Ehlers and Associates reviewed the results of the proposals that were received for the sale of $1,645,000 in general obligation bonds. Five proposals were received with Dain Rauscher, Inc. having the low bid with an interest rate of 4.99%. Mark Ruff felt the interest rate was reasonable and recommended approval of the bond sale. BRIAN STUMPF MOVED TO ADOPT A RESOLUTION AWARDING THE SALE OF $1,645,000 G.O. IMPROVEMENT BONDS, SERIES 2000B TO DAIN RAUSCHER, INC. AS RECOMMENDED BY THE CITY'S FINANCAL CONSULTANT. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 8. Consideration of authorizing execution of a letter of acknowledgment for TIF assistance for redevelopment of the Klucas property. 011ie Koropchak briefly summarized the agenda item explaining that in January, 1999 the Council had authorized excution of the Letter of Acknowledgment for TIF assistance for this site. The requested TIF assistance would be for reimbursement for soils correction in the amount of $10,000 and include 50% of the annual tax increment over a period of five years to buy down the rents. However, the applicant at that time did not receive funding from the Minnesota Housing Finance Agency and the project did not proceed. The current proposal consists of the development of 32 units of townhouses with single garages and the developer 2 Council Minutes - July 10 2000 would be applying to the City for approval of a planned unit development for this site. Larry Olson from Metro Plains Development was in attendance and gave a slide presentation on the proposed development and other properties developed by the firm. The question was raised if approving the Letter of Acknowledgment for TIF assistance when there is not an approved concept plan would bind the Council to the proposal presented. Clint Herbst stated that he had reservations about using tax increment financing for housing. Brian Stumpf noted that while this development would clear up a blighted area, he doubted whether any upscale housing would be established on the site because of its proximity to the industrial area and the other multiple family structures in the area. BRIAN STUMPF MOVED TO AUTHORIZE EXECUTION OF A LETTER OF ACKNOWLEDGMENT FOR TIF ASSISTANCE FOR REDEVELOPMENT OF THE KLUCAS PROPERTY. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED WITH CLINT HERBST VOTING IN OPPOSITION. 9. Consideration of making an offer to purchase the Jim Eisele property. Previously the Council had discussed the acquisition of this property but did not proceed with making an offer to the property owner. The owner is considering putting the property on the market and the Council was being asked to consider the purchase of the property. It was noted that there is need for the space by the Fire Department, Building Department and storage of equipment for the Community Center and some possible use by the National Guard. There was discussion on the use of the property, the earlier property appraisal and the market value of the site. The Council also questioned whether its present use conformed with the zoning ordinance and if the City did purchase the property whether the City's proposed use of the site would comply with the ordinance. The Council discussed whether the appraisal on the property should be updated. It was estimated that updating the appraisal would run about $500-$600. Clint Herbst stated his belief that instead of spending this money for additional storage space for the Fire Department the City might be better off applying this money towards a satellite location for the Fire Department. BRIAN STUMPF MOVED TO MAKE AN OFFER OF $130,000 FOR PURCHASE THE EISELE PROPERTY. ROGER BELSAAS SECONDED THE MOTION. MOTION CARRIED WITH CLINT HERBST VOTING IN OPPOSITION. 10. Consideration of authorizing preparation of a study examining_ potential development of a second municipal liquor store at CSAH 75 and East County Road 39. Deputy City Administrator, Jeff O' Neill, updated the Council on the discussions that have taken place with the Brenni group regarding the development of the Ferrell Gas site and the proposed expansion of the liquor store. Because the time frame needed for making decisions on the expansion of the liquor store would not coincide with the development of the Ferrell Gas site, it is unlikely that the liquor store expansion will take place as part of this development. The staff was requesting the Council to consider authorizing a market study to determine whether it was more feasible economically to expand the existing liquor store facility or 3 Council Minutes - July 10. 2000 develop a second liquor store site. Roger Belsaas felt that existing liquor store site was not conducive to traffic coming off CSAH 75. There was also discussion on whether it would be more cost effective to expand the site as opposed to constructing a second site. The Council briefly discussed the various options of renting, lease/purchase or owning the site directly. The general feeling was that it would be more beneficial for the City to own the site. The Council reviewed the general area that they thought would be appropriate for the location of a second store. Fred Patch suggested that staff should bring back to the Council options for purchasing for certain parcels as possible sites and that the Council should designate money to be used to hold the purchase options open. The Council also addressed the interchange at County Road 18 and the impact that would have on properties in that area. CLINT HERBST MOVED TO AUTHORIZE CITY STAFF TO RESEARCH SITES FOR A SECOND LIQUOR STORE LOCATION AND BRING BACK PROPOSED PURCHASE AGREEMENTS TO THE COUNCIL AT THE NEXT COUNCIL MEETING. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 11. Update and discussion on land exchange negotiations with John Chadwick. City Engineer, Bret Weiss, summarized discussions on the proposed land exchange between the City and the property owner. Bret Weiss presented drawings showing the areas of the property where the fill material was proposed to be mined. He noted that there was approximately 130 acres of usable land, 18-19 acres of ponding area and 13 acres of right-of-way. The questions that were discussed included: 1) How much material is on site and how long would it take to mine it; 2) What area of the site would the City propose to market first, and 3) How soon after a site was marketed could utilities and streets be brought to the site. The Council concurred with the IDC in that the property should be able to be developed in the near future and that may not allow for mining operations on the entire site to be completed prior to development. Bret Weiss noted that utility construction for the site would be impacted by which portion of the site was developed first. Clint Herbst asked about the Gold Nugget site. He felt that since there was no mining activity being conducted there, it was a more marketable site. Not only could prospects see an area that would be similar to the developed site but also there would be no mining activity that would restrict or slow the installation of utilities to the site. Negotiations on the land exchange will continue with the property owner being made aware of the City's timetable for development. Items added to theagenda: John Bondhus had contacted the City regarding the Council's action on the sewer line affecting his property. He questioned why the Council felt the need to take action on the sewer line at this time. Mr. Bondhus would be in agreement with doing the work if the school wants to 11 Council Minutes - July 10, 2000 proceed with the project. The Council wants the staff to proceed with obtaining all the easements necessary to complete the construction of the line so that the alignment of pipe can be laid out even though it may not be constructed immediately. The Council discussed the update from the City Administrator regarding the transient merchant ordinance as it applies to vegetable/produce stands. Clint Herbst asked about parking space requirements for the produce stands and if the ordinance would allow use of parking spaces for a given business to be used for a separate business use on that same property. City Administrator, Rick Wolfsteller, indicated that while the City could not impose license fees on vegetable/produce stands it was not clear in the statutes whether the City could impose other reasonable restrictions relating to traffic and zoning issues on the them or whether they are exempt from all restrictions. Proposed revisions to the ordinance will be brought back at the next Council meeting. The Mayor reviewed information that was received from the League of Minnesota Cities regarding appointments to the State Aid Variance Committee and asked if someone from the City Council would be willing to serve. Clint Herbst indicated that he would serve. The Council discussed the use of the carwash facility at the Monticello Ford dealership. It was noted that the carwash is considered an accessory use to the dealership and has not been opened to the public for general use. Should that use change, not only would the City be collecting additional sewer and water service availability charges, but the use would have to meet the provisions of the City ordinances. The staff updated the Council on blight/nuisance enforcement and informed the Council that the staff would be meeting with the City attorney to discuss the nuisance ordinance and blight procedures. Staff also requested that the Council call for a public hearing to be conducted by the Planning Commission dealing with vehicles in excess of 9,000 lbs in residential areas. ROGER CARLSON MOVED TO CALL FOR A PUBLIC HEARING TO BE CONDUCTED BY THE PLANNING COMMISSION ON AUGUST 1, 2000 RELATING TO VEHICLES IN EXCESS OF 9000 LBS IN RESIDENTIAL DISTRICTS. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. The Council was informed that the area that was being considered for a possible second liquor store site was zoned PZM and that off -sale liquor was not an allowable use in a PZM Zoning District. 12. Approve payment of bills for July, 2000. BRIAN STUMPF MOVED TO APPROVE PAYMENT OF THE BILLS. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 5 Council Minutes - July 10, 2000 13. Adjourn. CLINT HERBST MOVED TO ADJOURN AT 9:15 P.M. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary I