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City Council Agenda Packet 06-25-2001 . . . AG NDA REGULAR MEETING - MON ICELLO CITY COUNCIL Monday, June 5,2001 - 7 p.m. Mayor: Roger Belsaas Council Members: Roger Carlson, Clint Her st, Brian Stumpf and Bruce Thielen 1. Call to Order 2. Approve minutes of June 11.2001 regul r Council meeting. 3. Consideration of adding items to the agel da. 4. Citizen comments/petitions, request and omplaints. 5. Consent agenda. A. Consideration of ratifying new hir s MCC, liquor store, parks and public works. B. Consideration of approving one d y charitable gambling license for Monticello Youth Hockey Association for Jul 6,2001 at Hawks Bar & grill. 6. Consideration of items removed from the onsent agenda for discussion. 7. Public Hearing to consider appeal of Plam ing Commission denial of a request for variance to setbacks to allow construction of drive ay - James Herbst 8. - Consideration of accepting 2000 Audit Re ort. ~ 9. Consideration of a request for a conditiona use permit to allow a 2,500 sq. ft. restaurant in a shopping center in the CCD. Applicant: Siver Creek Real Estate Development. 10. Consideration of approving plans and spec fications and ordering advertisement for bids for Cedar Street Improvement, Project No. 20 0-ISC. 11. Consideration of adopting resolution decla ing cost to be assessed and setting a public hearing on adoption of an assessment roll fi r the Cedar Street Improvement Project No. 2001-1SC. 12. Consideration of accepting petition for imp ovements, ordering plans and specifications, accepting plans and specifications and auth rizing advertisement for bids - Dan Mielke 13. Review proposal for development of a mix d use residential development at Wildwood Ponds by Farr Development. 14. Consideration of adopting joint City/Towns ip agreement establishing MOAA Board. IS. Approve payment of bills for June. 16. Adjourn. . . . MIN TES REGULAR MEETING - MO TICELLO CITY COlJNCIL .June 11,20 1 - 7 p.m. Members Present: Roger Bclsaas. Rage Carlson, Clint J-Ierbs1. Brian Stumpf and Bruce Thielen. Members Absent: None 1. Call to Order. Mayor Belsaas called the meeting to order a 7 p.m. and declared a quorum present. 2A. A rove minutes of Ma '29 2001 re ular Council meetin . ROGER CARLSON MOVED TO APPRO E THE MINUTES OF THE MA Y 29,2001 REGULAR COUNCIL MEETING. CLINT HERBST SECONDED TI"iE MOTION. MOTION CARRIED UNANIMOUSL Y. 28. A rove minutes of reconvened Board of eview. BRUCE THIELEN MOVED TO APPROVE THE MINUTES OF THE RECONVENED BOARD OF REVIEW HELD ON MAY 29. 001. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIM USL Y. 3. Consideration of addin items to the aoen Brian Stumpf requested that agenda item #8 e included with the consent agenda. He noted that the lIRA had seriously negotiated with tl e property owner and latest counteroffer of the property owner was unrealistically high. H did not believe that any additional discussion of the item would change the fact that conden nation would be required. Items added to the agenda were: 1) Dan Mielke development; 2) Klein Farms 3rd Addition; 3) Augsburg College River Study and 4) City owned property on Cedar Street. 4. Citizens comments/ None. 5. Consent Agenda: A. Consideration of approving a revised a mual pension amount for the volunteer firefighters relicf association mcmbers. Recommendation: Revise the pension increase ii'om $2.125 per year of service to $2J)85 per year of service. Council Minutes - 6/11/01 . cxpandcd parking based on its ob -ervation of park ing demand which may cause the use of on-street parking at any time. 3. The use of the subject property w II be during normal school hours only. H. Consideration of a request for preliI inary and final plat approval of the Monticello Commerce Center 5th Addition. Ap licant: Monticello Industrial Park, Inc. Recommendation: Approve the pI' liminary and final plat of the Monticello Commerce Center 5th Addition. 1. Consideration of a Conditional Use Permit to allow the expansion of an animal hospital in the B-3 Zoning District. Applicant: Monticello-Big Lake Pet Hospital. Recommendation: Approve the conditional use permit based on a finding that the site complies with the B-3 District requirements. J. Consideration of a request for dcvcl pment stage Planned Unit developmcnt for two 2 unit townhouses. Applicant: RA Associ tes. Recommendation: Recommend approval of the development stage Planned Unit Development for Maple Street Townhomes with conditions relating to sidewalk plac ment and fencing as follows: Place a shOJi segment of sidewalk to Broadway from the fro t door and to install a small open fcnce along the front propcrty line between the two drive ays. . K. Consideration of a request to amen the zoning ordinance to allow a second freestanding sign on certain properties in the b-3 Highway Business District. Applicant: Monticello Dodge. Recommendation: Appro e the amendment to the sign regulations allowing a second freestanding sign on certain roperty in the B-3 District based on the finding that allowing a secondary freestanding s gn as proposed is consistent with the comprehensive plan. L. Consideration of a request for devel pment stage Planned Unit Development allowing multiple structures on an industrial ite. Applicant: Blue Chip Development. Recommendation: Approve the de elopment stage Planned Unit Development for Blue Chip as proposed with the conditio that the buffer yard be intensified with fencing and that lighting is consistent with the comn ents in this report. Motion is contingent on site plan modifications necessary to comply ith restrictions relating to the storm sewer casements on the site. M. Consideration of approval of final p at and development agreement for Klein Farms Estates 2nd Addition. Applicant: Eagle Cre t. Recommendation: Move to approve final plat and development agreement for the Klei Farms Estates 2nd Addition. . N. Tahled Until Next Meeting. .., -, O. Council Minutes - 6/11/01 . Consideration of a conditional use permit to allow a multiple family structure with ground floor residential units in the CCD District. Applicant: Silver Creek Development. Recommendation: Move to approve the conditional use permit \vith the proposed site plan reducing the unit count to mcet ordinance requirements. P. Consideration of ordering a public hearing for abatement of hazardous sidewalk at 507 East River Street. Recommendation: Move to order a public hearing to be scheduled for June 25.2001 to discuss the abatement ofa hazardous sidewalk located at 507 East River Street. Q. Consideration of approving issuance of an on-sale 3/2 beer license for China Buffet. Recommendation: Approve the on-sale 3/2 beer license for China Buffet to run one year from July 1,2001 to June 30, 2002. Jeff O'Neill clarified that for item #5H final approval was contingent upon review and approval of the ponding by the City Engineer. BRUCE THIELEN MOVED TO APPROVE THE CONSENT AGENDA INCLUDING THE ADDITION OF AGENDA ITEM #8, SUPPORTING A RESOLUTION ADOPTED BY BRA TO AUTHORIZE EMINENT DOMAIN PROCEEDINGS TO ACQUIRE THE PROPERTY LOCATED AT 218 FRONT STREET. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. . 6. Consideration of items removed from the consent a2:enda for discussion. None. 7. Public Hearing - Consideration of the proposed adoption of the modification to the Development Pro2:ram for Central Monticello Redevelopment Proiect No.1 and the proposed establishment of TIF District No. 1-28 therein and the adoption of the TIF Plan therefor. Economic Development Director, Ollie Koropchak briefly provided background on the proposed TIF district for Integrated Recycling Technologies, Inc. Mayor Belsaas then opened the public hearing. There was no one present who spoke for or against the proposed establishment of the TIF District. Mayor Belsaas then closed the public hearing. BRIAN STUMPF MOVED TO APPROVE A RESOLUTION ADOPTING THE MODIFIED REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. I. AND ESTABLISHING WITHIN CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 TIF DISTRICt NO. 1-28 AND ADOPTING THE RF::LA TED TIF PLAN THEREFOR. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED. UNANIMOUSL Y. Res. No. 2001-42. . 4 . . . Council Minutes - 6/1l101 8. esolution ado ted by the HRA to authorize e ro ert" located at 218 Front Street. Included with consent agenda. Added Agenda Items: Mielke Property: The Council discussed the prop sed Cedar Street project affecting this property and also the relocation of utility lines. Clint Herbst stat d that before the final plans and specifications for this project were completed and presented to the Counc I for approvaL he felt that the Council should look at the proposed street design. it was the opinion of r. Mielke that the traffic that would be generated by his development did not warrant the street expansion to the extent it was being designed. Clint Herbst suggested that the City should look at some metho of gauging the development traffic and when certain levels were reached it would trigger the next phase f street expansion. Mayor Belsaas suggested that the staff set up a meeting with the City Engineer to rev ew this issue. Deputy City Administrator, Jeff O'NeiIL asked how to handle the changing of the pans from what the Council had approved at a previous meeting. Dan Mielke stated the reason this issue c me up was because it is proposed to assess his property $80,000 more than the other side of the st eet. The City Engineer's explanation for the assessment was that the widening of the street was ecessary to accommodate his development and provide full acccss. Dan Mielke questioned why a esign similar to the one by McDonald's could not be utilized. The Council directed the staff and engit eel' to meet and bring the matter back at the next meeting. Dan Mielke also questioned the relocation of the ut lity lines on his property. He felt this work could be done separately from the street work. At a previo s Council meeting, he had requested the City to consider tax abatement. Instead the city indicated hat they would relocate the existing water main on his property. Mr. Mielke indicated that the sanitary s wer line lies within the same easement so it would seem logical to relocate the sewer line as well and e was of the understanding that the City would relocate all utility lines. Mr. Mielke explained how the line would be relocated so that the water main would be looped. He also stated that they would pick up the xcavation costs for relocating the lines if the City would pick up the cost for materials. The staffwa directed to check the minutes on what lines the City had agreed to relocate and bring this information b ck to the Council. AU'lshUrI! Colle5!e Group: Mayor Belsaas indicat d that a group of Augsburg students would be doing an ecology study on the river and would like to meet ith representatives of the City on June 18,2001 at 4 p.m. Rick Wolfsteller. City Administrator and Co ncilmember Bruce Thielen were designated to meet with the group. Klein Farms 31'd Addition: "l'he Mayor indicated h had been contacted by some residents in the area who \vere concerned about deviations from the landsca ing plan. Jeff O'Neill reported that the City had recei\"Cd a re\ised landscaping plan and there was bond in place to cover the landscaping work. City staff was directed to get back to the residents addressing their concerns. Bruce Thielen added that he had been contacted by residents in the River Forest development about the co\'enants being changed. The 5 . covenants is an issuc that needs to be resolved between the dcveloper and property owner. However, the the issue of lot sizes and building sizes need to be considered. The Council wants to give residents some assurancc that what the developers actuaUy constructs matches what \-vas approved by the City. Council Minutes - 6/ll/01 Bli5!ht: Clint Hcrbst asked about the status of blight violations on the Monell property. Jeff O'Neill stated that a letter had been. Clint Herbst felt that the City needs to be aggressive in bringing the property into compliance. The Council also questioned whether the iJJegal sign on the Peterson property had been resolved. Jeff O'Neill stated that a certified letter had been sent to the property owner but there has been no response. Cedar Street Prooertv: City Administrator, Rick WolJsteller, stated that hc has been receiving inquiries about the 5 acre parcel that the City owns by Cedar Street. The Council discussed the property and the conSensus of the Council was that it should not be sold for speculation but if someone came with a specific proposal, then the Council would consider sale of the property. LiOllor License: Clint Herbst asked about the number ofJiquor licenses that were remaining. City Administrator, Rick Wolfsteller, indicated that three remained and of those three. two were designated for the CCD District and one for olltside the CCD District. 9, Approve payment of bills for June, BRUCE THIELEN MOVED TO APPROVE PAYMENT OF BILLS FOR JUNE. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. . 10, Adjourn BRIAN STUMPF MOVED TO ADJOURN AT 7:50 P.M. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary . 6 . . . SA. Consideration of a rovin new hires works and communitv center. (R W) A. REFERENCE AND BACKGROUND: Council Agenda - 6/251/01 u blic The Council is asked to ratify the hiring 0 new employees that have occurred recently at the the liquor store, parks, public works and c mmunity center.. As you recall, it is recommended that the Council officially ratify the hiring of all new employees including part-time and seasonal workers. B. AL TERNA TIVE ACTIONS: 1. Ratify the hiring of the part-time mployees for the liquor store, parks, public works and community center as identifie on the attached list. C. SUPPORTING DATA: Lists of new part-time employees. . employee council list xis: 06/19 I NEW EMI LOYEES Title Department Hire Date Class summer help Parks 6/11/01 Temp summer help Parks 6/4/01 Temp summer help Parks 6/4/01 Temp summer help Streets dept 6/12/01 Temp summer help Water dept 5/30/01 Temp slide attendant MCC 6/2/01 PT slide attendant MCC 6/3/01 PT custodian MCC 6/6/01 PT lifeguard MCC 6/8/01 PT slide attendant MCC 6/8/01 PT summer help Streets dept 6/9/01 Temp summer help Streets dept 6/11/01 Temp summer help Streets dept 6/11/01 Temp clerk Liquor Store 6/13/01 PT TERMINA TING MPLOYEES Reason Department Last Day Class voluntary Liquor Store 6/10/01 PT voluntary MCC 6/2/01 PT voluntary MCC 6/10/01 PT voluntary MCC 6/6/01 PT voluntary v1CC 3/31/01 PT work for PW v1CC 6/14/01 PT voluntary v1CC 5/27/01 PT voluntary ACC 5/1 /0 1 PT /2001 :;A -- -- --- --- . . . c. D. Council Agenda - 6/25/01 5B. Consideration of resolution authorizino- t c issuance of a one day charitable license for the Monticello V outh Hockev ssociation. (R W) A. REFERENCE AND BACKGROUND: The Monticello Youth Hockey Association s requesting approval of a one day charitable gambling license in order to conduct a fund aising raffle. The Monticello Youth Hockey Association will be applying to the State G mbling Control Board for issuance of a gambling license to conduct a raffle. Befor a license can be issued by the State Gambling Control Board, a resolution needs to be pass d by the City either supporting or denying the applicant's request. B. AL TERNA TIVE ACTIONS: 1. Adopt a resolution authorizing the St te Gambling control Board to issue a gambling license. STAFF RECOMMENDATION: It is the recommendation of the City Admini trator that the resolution be adopted. SUPPORTING DATA: · Copy of Application · Copy of Resolution . . . RESOLUTIO NO. 2001-43 RESOLUTION AUTHO IZING THE ISSUANCE OF A CHARITABLE AMBLING LICENSE WHEREAS, the Monticello Youth Hockey Ass ciation has submitted an application to the City Council of Monticello for the issuance of a chari able gambling license to conduct a raffle on July 6, 2001 at the Hawk's Bar and Grill in Mon icello, Minnesota WHEREAS, upon review of the organization's tivities, the City Council is not opposed to the gambling license being issued by the State Gam ling Control Board. NOW THEREFORE, BE IT RESOLVED BY T E CITY COUNCIL OF MONTICELLO, MINNESOTA that the Monticello Youth Hocke application for license issuance listed above is hereby approved, and the State Gambling Contr 1 Board is authorized to process the application. Adopted by the City Council this 25 th day of Ju e, 2001. ATTEST: Rick Wolfsteller, City Administrator Rog r Belsaas, Mayor 5~ . . . JUN-20-2001 10:07 FlI R CURE 7637920344 P.002/002 ._--- -- --.........--. -:-.-.--- -- ._- --' -- -. . Minnesota Lawful Gambling ForBoardU" Only Application to Conduct One-Day Off lte Gambling - LG230 . Licensed Organization Infomraation (pi.... . 1111 nformatlon) Organization Name' . LIcon&e Number(S dlgilS~ License Expiration Date \~ I). \ I "QO~ lass of Organization License (A. B,C. or D) -r"' Daytime Phone Name of Chief Executive Officer \ I Number . ( ., '- ~ .) Do not list the g....bllng. mIIn.ger) Gambling Premises Infonnatlon Name of establllihrnent where gambling activity will be conductliJd one. Example: 3 mllel eat d Hwy. e3 on County ACed 42) Type of Gambling Activity. Check thebOx(es) which Indlcate(S) the type of gambling ac::tivity your organization will be conducting for this one-day off..slte activity. j. Bingo C)PaddleWheels . Pull- Taba CJ TlpbOards Raffles NOTE. Yau may only conduct activity authoriZed by the claM of our 0 aniZatlon license. Date of one..ciay off-alteactivi~'; ~-':zJ~. If you are conducting a raffle. enter the datect the raffle drawing. The gambling activity conducted on this day ay not exceed 12 hours. Street Address and City (Co not Ull8 . ~0IIt oI'Ilce boK. If no street :adcha. wrlla In the road Dpes your organization own the gambling. premises? c::J lfyes, no lease Is required. 1XI1f no, a lease agreement must be attached (you may use lease form LG224. available from the Board). However, no least Is required If the only gambling activity to be conducted is a raffle. Local Unitof Government Acknowledgmen If the gambltn preml... Is within city limit&, the c: must Ilgn thl. application. On behalf of the city t.1 acknowle1dge that this appllcatlonwlllbeforwarded to lhe appropriate city . ~ officials, the. city mu.pa.sa a fIJSOlutlon speclllcM/y approving or dent'ngthg eppllcatlOn,and a.copy Of the resolution will be forwarded to the applying organization. Itle Date I I If the u-rnbllng prem.... Is located In I townahlp, bo Ole county & township muat sign this application. Far the town.hID:On behalf'of the township, I acknowteclge that the organIZatiOn is applying for one-<tay,dff-slte gambll"g activity within the township limits. Atownship has nostetutory authority to approve or d~"y an appllcatlon(Mlnn.Stat.i 349;213, subd. 2). Title name of at'! Signature of city peraonnell1!lQ8\vlng lIf)plication) Print name of towMhlp (Signature of township offldaI ~ appucaucn) Date for the county: On behalf otthe county. I acknowl- edge that thll application wi \I bo forwarded to the appropriateoounty officials., tbe county' mu. pass. ruolutlon apeclflCflllyapprovlng or denying thIS application, and a copy of theresoJution will be fofVlarded to the applying organization. Print name of county (Slgnal.Ule of county personnell'8C8lvingappllcatlon) Title Date I Chief executive Offlcer(CEO) Oath I have read this application. al1d all information Is true, ccurate, and complete. CEO Signature Date .t, ..1/.0 /f:)! page 10f 2 rB .) TOTAL P. 002 JUN-21-2001 07:15 AIR CURE 7637920344 P.002/002 -'-- ------ --- MInnesota Lawful Gambling Lease forOne..oay01J-SiteGambling Activity .. LG224 N~ of L8Qal owner of Property. StnI8t hid-- c.ti State Zip Daytime. Phone CAtutt AI. fill'; Ch~fJ 'S~fi;ii'- Name of l.e18Ol' . Sm_ Addrfil CIty Slate Zip Daytime phone (lfllllme _ .ga1 owner. <MIte in "SAME") . .- street JI.ddfeS&. or road cIeSlgnatlonS City DaytIme phone.JlK'4 JIJb . N8meofL.eaaed ~l.' .. , .. Activity Date . Date of one-day off.site actlvity: _J_L..kw-El The gwnbllng activity conducted on ~ day may not exceed 12 hours. Type of Gambling Activity Checl<. theboX(ea) which indlcate(a) the type of gambling activity that will 'be conduded for tills one-day off~8iWl activity. BlngoO FtlfflM Paddl.wheelsD pul\.oTabs'S TIPbolrdsO Rent Infonnatlon Rent to be paid for the leasecl arlta: ~. .-wri.",' >21~ . Rent may not be based ona percentage of receipts, profits from lawful gambling, or the number of participants attending a bingo occasion... . An orgBnlzatlonmay not pay renUoitself arlO.Bnyof Its afflllates for space used for the conduct of lawful . gambling. I.. OTHEROBUGAl'IONSANDAORl!SENTS-AttaChfnIIIl AU obligations and agreements between the organlz1Ulon and the lessor are li&teO betow or attached to this lease. (AtteCh additional sheets if necessary. Any attachments to this lease must be dated and signed by. both the lessor and lessee.) This lease Is the total and only agreement between the lessor and the organization conducting lawful gambling activities..n..re i. no _ agreement and no _ _"",lion lOqulred batwean the paI1ie. aa to the lewful g?lg and otherm"'- toUU.laose. &!!71M fle/ol fJA/ZU'3 /J1Hv)..rr Prim Name of Leuor . Dlte Questions onthi$ form should be direeled to your licensing speCialist at the Gambling Control Board at 651-639-4000. Hearing Impaired individuals using a TrY may call the Minnesota Relay Service at .1.8C)().627.3529 and ask to place a call to 651..639-4000. .. rint Name and Title of person Signing on Behalf of Organization The information requested on this 10m will become public information when received by the aoard. and will be used to determine YOll compliance with Minnesota statutes and rul. governing lawful gambling activities. ... .. _ __...... .......11..... in 1Il1tA",BtlVe format (i.e. 7/98 5~ TOTAL P.002 . . . City Council Agenda - 06/25/01 L Consideration of a an a eal of the Plannin Commission's denial for a variance to the side vard setback re uircments to allows c nstruction of a new driveway. (.TO) REFERENCE AND BACKGROUND The City Council acting as the Board of A peals is asked to consider overturning the Planning Commission's decision to deny a ariance request by Jim Herbst which would have allowed his driveway setback to be es ablished at- 1 foot versus 3 feet. The report to the Planning Commission, al ng with the meeting minutes, are attached for your revIew. The Planning Commission denied the requ st because a hardship was -not demonstrated. The presence of the trees did not create a h rdship according to the Planning Commission and therefore granting the variance without adequate cause wopld create a bad precedent. Please visit the site to help you form your 0 n opinion. ALTERNATIVE ACTION 1. Motion to overturn Planning Comm ssion to grant the variance based on the presence and associated interference created by existing trees. 2. Motion to uphold Planning Commis ion denial of variance based on the finding that a driveway can be constructed i keeping with city codes and that a true hardship does not exist. Approval 0 a variance in this case is against the intent of the ordinance and as stated would cr ate a bad precedent. STAFF RECOMMENDA TJON After additional reyiew of the site, it appear feasible to install a driveway on the house side of the Maple tree, thereby meeting setb cks. 'rherefore an argument exists that no hardship exists and the variance should not e granted. However, the driveway, ifmoved to avoid the tree, would be forced against th sidewalk alongside the house and generally be in a less desirable location for the Herbst residence. It is up to the Board of Appeals to determin whether or not there is a valid hardship/finding to support the variance req est. SUPPORTING DATA Planning Commission report and attachmen s Draft minutes from 6/5/0 I . . . L Planning Commission Agenda - 06/05/01 Puhlic Hearine - Consideration of a ree est for a variance to the sidevard sethack rec uirements to allow construction of a 1eW dri\'cwav. A )licant. .Tim Herbst. (FP) REFERENCE AND BACKGROUND The prope11ies located at 519 and 531 West Broadviay shared a drive\vay for several decades. Last year the property located at 531 We t Broadway \\'as sold and both the propel1y owner of 531 and Mr. Jim Herbst, the property ow 1er of 519 West Broadway, decided to discontinue the sharing of the driveway. The shared riveway was an existing non-conforming use in that residential driveways are required to be s tback at least 3 feet from sideyard propery lines. That portion of the shared driveway located on the 531 side of the property line \vill remain as is \vithout expansion or intensification of the non-conforming use. HO\vever. Mr. Herbst intends to widen and pave that portion of the shared driveway that \vill remain on the 5] 9 side of the property line. Widening and pavil g of the driveway on the 519 side of the propel1y line is an expansion and intensification 0 the non-conforming use and is not allowed without providing for the required 3 foot sideyard setback. Mr. Herbst is seeking a variance to allow two (2) foot reduction in the width of the sideyard setback for his driveway. Mr. Herbst WOl Id like to preserve the two large maple trees on the driveway side of his house. By reducing the sideyard setback for his driveway to one foot, Mr. Herbst will be able to install a paved riveway nine feet in width. one foot away from the trees and one foot from the property line. AL TERNA TIVE ACTIONS' ]. Motion to allow a t\\;O (2) foot red ction in the sideyard setback from the west property line at 5] 9 West Broadvia I to allow the construction of a paved driveway based on the folloyving findings: a. The installation of a paved driveway in the \vidth and location proposed will preserve the laree maple trees on the \vest side of the Herbst residence. b. Paving of the dl:ive\\ay will conform to the subdivision regulations of the City. c. The new location of he drive\\'ay will be more in conformance with the Zoning Code than th previously shared driveway. 2. Motion to deny the request for a val' ance from the required sideyard setback for driveways. 7A Planning Commission Agenda - 06/05/0 I STAFF RECOMMENDATION Staff is recommending that the Planning Commission allow the two foot variance, Alternate 1 above. SUPPORTING DATA Sketch of the site plan of the prbperties showing the location of the existing shared driveway and trees. Aerial photo. 2 . . . 10 I II , ' I' t' .' ',,~: Ir ~ , I .. Ir ~II. ',~' (' /" '~"'-,/ / "'--.1. '~.j / "I"~ / "" / ......; I, "'-; ,7 I I .' I ,/~-;-~'~1:~l- --.---. / . , / / -"~. ! ; . N t ./......' / 0C--- ~ <t ~~ \1lUJ ct.'::} .cJ ~ ~Q.~ \. ~u1 ~t.V' u.....;,j, <\"i ~ :t:<t:r. ~\J \I) ..... - -- <t ~ q 'II(' ~ Q.l o ?t-~ \....: i.. . ~ l 1,.. f' -~ ~ (l')c.d (;:()V\ Q/ :i w \) :::t..::t:. .'. -":~~. .... G"d ,. ..,......, t.~ \\.\."':2 0- ...J 0-4. 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Public Hearin - Consideration of a re ues re uirements to allow construction of a ne Planning Commission Minutes- 06/05/01 It was noted that Richard Carlson, Plannin Commission member, abstained from this item stating a conflict of interest. Fred Patch, Building OfficiaL provided the staff report stating that the properties located at 519 and 531 West Broadway shared a dr veway for several decades. Last year the property located at 531 West Broadway was sold anti both the property owner of 531 and Mr. Jim Herbst, the property owner of 519 est Broadway, decided to discontinue the sharing of the driveway. The shared drive ay was an existing non-conforming use in that residential driveways are required to b setback at least 3 feet from sideyard property lines. That portion of the shared driveway locate on the 531 side of the property line will remain as is without expansion or intensification oftbe non-conforming use. However. Mr. Herbst intends to widen and pave that ortion of the sbared driveway that will remain on the 519 side of the property line. Widen' ng and paving of the driveway on the 519 side of the property line is an expansion an intensification oftbe non-conforming use and is not allowed without providing for th required 3 foot sideyard setback. -3- '7 t Planning Commission Minutes- 06/05/01 Mr. Herbst is seeking a variance to allow a two (2) foot reduction in the width of the sideyard setback for his driveway as he would like to preserve the two large maple trees on the driveway side of his house. By reducing thc sideyard sethack ft)r his driveway to one foot, Mr. Herbst will he ahle to install a paved driveway nine feet in width, one foot away from the trees and one foot from the property line. It was stated that Herbst can only pave ifhe removed a tree. Chair Frie opened the puhlic hearing. Richard Carlson, property owner of 531 W. Broadway. provided pictures of the property as well as some information regarding an easement which was obtained previously. Carlson stated that he is looking for a clarification, as well as a contradictory statement on this agenda, where it stated that both parties decided on the discontinuing of the driveway. He did not decide to discontinue the shared driveway. Carlson stated both parties did sign an agreement that in the event of a 30 day written notice, a fence could be erected, but that this has nothing to do with the driveway. Carlson also asked Patch for clarification regarding green space noting that he had spoken to Patch previously regarding a new driveway and Patch stated that he would have to meet the 5 ft setback requirement for driveways. Carlson also listed his reasons for his desire to maintain the 5 foot green space stating that this would maintain the aesthetics along Broadway, adding that this may give public perception that if the variance is allowed and ifthere is a minimum of a 1 ft variance allowed, you are not going to have a green space. It was noted that Herbst would like to put in a 20ft driveway with a split rail fence running down the center of it. Carlson also added that he did not believe that 5 feet of green space . . IS excessIve. It was also noted that there had been some pine trees removed already. Carlson stated that if the setback is adhered to, there would he ample room to the east between the house and driveway, more so than on the west. Carlson's recommendation would be to pursue continued joint use of the driveway as he fecls that it has served both property owners for well over 60 years and cannot see why that can't continue. Carlson also added that he would be willing to accommodate a turn-around to serve both properties. Also, there is a grandfather situation which he consulted legal]y, and stated he was able to maintain his portion of the property along the properly line; just asking for at least the minimum of green space and if that cannot he met, that the property owner has an alternative to put the driveway on the other side of the trees to preserve the trees. It was noted that placing the driveway on either side would include the elimination of approx. 10ft of curb cut. Carlson also noted that there are several shared driveway situations in Monticello and he felt that if this variance is allowed, then possibly those properties would put up a split rail fence down the middle of a driveway and does the city want to set that precedence. -4- . . . If . Planning Commission Minutes~ 06/05/0] Jim Herbst applicant and owner of 5 1 9 . Broadway. advised that he has always wanted to have his own driveway and had intende to do so once the property was sold by the original owners. I-Ie also stated he did not agree with putting the driveway on the cast side. Again he states that he wants a 2 ft ariance to get away from the trees. He also advised that he has been in touch with Car son all along working with him to try to save them both money, He also advised that h was told by his attorney that he could indeed put up a fence where he is proposing. The public hearing was closed. It was c1ar'fied that the current shared driveway is on both properties. Dragsten asked if Herbst as to get his own driveway, would there be anything to prevent him from also putting p a fence and Herbst stated that it just simply states that who ever puts up the fence has t put it up on their own property. Carlson added that the property lines do not run pe pendicular to Broadway so there is a situation where Herbst has less property at the front han at the rear. and vice versa with Carlson's property. Dragsten also asked Herbst why he did not want to put the driveway next to his house and Herbst stated that there is a side alk there currently. It was advised that the distance between Herbst' house and the pr perty line was approx. 25 ft, with trees in between. Dragsten also asked if Herbst wa planning to hard surface his driveway and if so, there would need to be 3 ft of green spa e, would have to be put next to the house, and the driveway would then be 9 ft wide. . Smith asked Carlson ifhe was sure he wou d want the neighbors car driving in and out right in front of the front porch and Carlson stated it was probably not ideal, but the driveway is there and has been for a very 10 g time. Clint Herbst, Council Liaison, felt that poss'bly the planning commission was getting off track and the real issue is that there is a fen e going up on the property line and can the applicant get a 2 ft variance. Frie clarified t lat the application is indeed for the driveway, not the fence. Smith asked what the applica t felt was the problem with a shared driveway and Mr. Herbst explained that this has been an issue for many years but that they had decided years ago that they would ait until the property was sold by their neighbor before putting in their own drivew y, He stated he will not take out any trees, but wi II put in gravel if he has to if the varia lce is denied. Chair Frie address both Herbst and Carlson dvising that the main ingredient for providing a variance is finding a hardship a d he cannot find a hardship in this case. Herbst did state that he was !( ld by Patch th t the preserving of trees may be found a hardship in this case. Frie also pointed out t 1at he saw three potential options, one being granting of a variance; second is to put in a 10ft driveway with a straight shot to the garage with a turnaround; and the 3rd option s to expand to a ] 2 ft driveway with a turnaround and leave the approach as it is. . hey then discussed the second option again and Herbst stated there is going to be a fenc put up regardless of the outcome of the meeting. It was also noted that Carlson \vill laVe the same amount of space. Richard . -5- IG Planning Commission Minutes- 06/05/01 clarified that the fence would be in the driveway, not the grass area. Frie did question Patch as to justifying a hardship in this case and Patch stated there may not be a hardship, but preserving trees is in our code and that could be used as an argument. Grittman stated that in looking at a variance, the hardship is in putting the property to a reasonable use and if defining that as for the owners to have individual drives, would that be what the City intends. Also stated that if the City doesn't feel that separate driveways is a reasonable use, then what is the hardship. Chair Frie closed the public hearing. The commissioners discussed that having separate driveways may be a desirable option, also that possibly moving the Herbst driveway east of the trees would work, although Herbst did not like that option. It was stated that the Carlson driveway would end up next to his house as well; they were in favor of preserving trees and green space, and perhaps the Herbst driveway would line up better with his garage. A MOTION WAS MADE BY ROD DRAGSTEN AND SECONDED BY ROBBIE SMITH TO DENY THE REQUEST FOR A VARIANCE TO THE SIDE YARD SETBACK FOR DRIVEWAYS AS NO HARDSHIP COULD BE DEMONSTRATED. Motion carried with Roy Popilek abstaining due to his arriving after this item had been in discussion and Richard Carlson abstaining due to a conflict of interest. ~6- . . . ,* . . . B. 8. Council Agenda - 6/25/01 Consideration of acce tino- the 2000 aud t re ort. (R W) A. REFERENCE AND BACKGROlJND: Mr. Rick Borden of Gruys Borden Carlson ssociates will be present at the meeting Monday night to present a brief overview 0 the 1 999 audit report that has been recently completed by their firm. A copy of the report has been included with the agenda [or Council review. I realize that this lengthy report may be hard for the Council t review and analyze in such a short period of time but the report needs to be accepted by the Cty Council prior to the end of June. as it has to be submitted to the state auditor by June 30, 20 1. After the brief presentation, if the Council fi els they would like additional time to review the repOli, this item can again be scheduled at a uture council meeting for more discussion. In reviewing the preliminary draft copy with Mr. Borden, it appears that the City"s finances are in good shape with increasing fund balances in most areas. Mr. Borden will review with the Council the financial condition of the City a d highlight any specific points during his presentation. In the meantime. if anyone has any specific questions prior to Monday night, feel free to contact me or Mr. Borden at Gru s Borden Carlson. AL TERNA TIVE ACTIONS: l. The Council should accept the 2000 a dit report as presented so it may be submitted to the state auditor by the required June oth deadline. C. SUPPORTING DATA: Copy of the 2000 audit report. . . . 9. Special Planning Commission and City Council Agendas -6/25/0 I Consideration of an amendment to the owne Centre Conditionalllse Permit allowino a restaurant to re lace retail s ace in a sho ino center. A licant: Silver Creek Development. (NAC) A. REFERENCE AND BACKGRO D: Silver Creek Development is requesting an amendment to the Towne Centre Conditional Use Permit to accommodate a restaurant. The parking issues on the block require the amendment, since the site is already reI ing on oft:'site parking, and the restaurant will further increase the parking demand. Sta f has estimated that an additional 29 spaces will be needed to accommodate the requireme ts of the zoning ordinance. The applicant is proposing to work with th City to expand the Library parking lot, and add on-street angle spaces along Walnut Stre t. Staffs estimate of new parking would be 85 total spaces, slightly less than the applican 's estimate of91 total spaces in these two areas. The Library parking lot would include 69 spaces, with] 6 spaces along Walnut. It is estimated that the Library would requi e 40 spaces following an expansion doubling its size. This would leave 29 "undesignated" paces in that lot, plus the 16 on-street spaces. It should be noted that the Library lot expansi n had been identified as a potential overflow site under the original Towne Centre plan. It Iso appears that 6 or 7 spaces could be added in 4th Street since the Library expansion (bas d on file concept plans) would still be set back from the street. While this supply is tight, there may be re son to consider approval of the plan. First, the restaurant use would be a desirable use in the Towne Centre project. Second, peak usage hours for the restaurant and library would n t likely conflict, especially since the community center will serve for meeting rooms and other common library peak activities, such as elections. From a numbers standpoint, the Towne Centre project and the expanded library should require approximately 120 spaces nder the code. In areas where cross-parking is used efficiently, this total can be expected to be reduced to as little as 60% to 65%. As a result. it would be reasonable to expect pea parking accumulation between the two projects at around 75 to 85 spaces. The on-site To ne Centre parking and the expanded Library lot would accommodate this demand, with a ditional overflow in Walnut Street and Fourth Street. B. AL1TRNATIVE ACTIONS ]. Motion to recommend approval of he CUP amendment for Towne Centre. subject to an acceptable arrangement regal' ing cost sharing on the parking improvements. ""l' Special Planning Commission and City Council Agendas -6/25/01 . and that the Towne Centre project is redesigned to provide a clear. architecturally pleasing, and direct entrance to the restaurant from the nOlih/northwest side of the project. 2. Motion to recommend denial of the CUP amendment for Towne Centre, based on a finding that the parking supply will likely be inadequate for the area in question. 3. Motion to table action on the CUP amendment, pending additional information. C. STAFF RECOMMENDATION Staff can recommend approval of the CUP amendment, based on an expectation that peak usage of the restaurant, retail, and library uses will offset each other, and that parking accumulation will not be as high as the three uses would generate independently. This recommendation would be contingent on a design for the shopping center that would show a "front face" to the north, where much of the parking will be provided. Since this area is less than 100 feet from the north wall of the center, it should be easily accessible and convenient. It should be highlighted that this use will put pressure on parking spaces nearest to the . shopping center. The liquor store, and perhaps the City Hall, may wish to designate some parking for short-term users, especially during peak restaurant hours. The recommendation from the special Planning Commission meeting preceding the City Council meeting will be presented at the City Council meeting. D. SUPPORTING DATA Concept Library Lot Site Plan 2 . ,5-01 Mahle '-/ -t. l, --0):;Y(I (Prr!re- P_Ol 02:0SP Graeme H_O. 320 2S9-4074 :5r//~(.t -S V) .v u: .F> c c .j \[J I- W W oc l- t.? I- ~ ...J <l: > . I I tI . - 7 'SfC<.c..es A:.-:<1 I I , ~,'" p<, ( :' /" '- " " I" ! r r::Fc:) 0 I ,_,) ;:,:., I' 'P<A~, k'. ",r l 6 < fr' -' l j ~" r, I ....' ~.,jt, t;! I'., I ,rl (~J ~.:;/ ~ C ~. '. :./.' ( W~ /1s ; bro.f'Q J. Rv k. "0 p,. . oR- . t ~ .6~c<~ ( 2.. P"-/'h rU0 dQ d ave-if? r/o UJ B Oe ve 10 '? 3 (\/L:...>> v f. ~i-(', '.. " ' It A &~J( l/"" , o/&"l-UesICCfvUL1 " i "/-, ~'\,~, , :,......1,"5' II .....:v. ''\. ( c;,,-'- v ' 7 18 J~ 14 6 I TOtAL. C\ \ (1i5") .'~r! ~ 16 I I I I I., I ,., -- f t , , I I I I I ,. I l ! I I 1t=f:P:t ++-+_+_-i-+++-H-I-+++-t-+--1-++:r -4MIIII ~ SITE PLAN (ALT.) .I "-..1- ~ II\- .~ ~0 s" ') . . ~SITE ,5-01 02~05P Graeme H.D_ Mahler I- W W CI:: l- V) I- :::> z ...J <It: ~ 320 259-4074 --l -7(VfLL C'fifrIre- P.OI i :':.., I I,">'" of", ii' I' r....J \, \ \, I, .' I J t--A" I' /'/':",r : s: ,', 'e .' . ~.', " r ~ c: 'j,_, (" ,.. : I J ...... i~~' , , 7 Jf ~ 14 16 16 LI ., ' " I ,. ~..J',"S ~\ i ~ >C v,~, (~<. l.. ,--v" '4 I I I 'j '1"-,1 I I I I I I I I I I I I f I ,. j., o "-'{of' IIIIII'II,! I . I L--'- +-1-1-+-++ H--1-++t-I-+++H-I + +-+'+'-1-+ ++-l-+-I-++,t-t+--1-++4JPr4-4 1'1 11 1\ I I PLAN ;.;,;~ ~ (ALT,) !f\ ~ !.~ ' { \-..,.... q . . . ill City Council Agenda 06/25/0 I Consideration of a Jrovin lans and s ecifications and orderinS! ad\'ertisem~nt for bids for Cedar Street 1m rovement Pro' ect No. 2000-] Sc. (.10) J} P REFERENCE AND BACKGROUND City Council is asked to consider approving plans and specifications and order advertisement for bids for Cedar Street 1m rovement Project. As you recall, some months ago the City ouncil reviewed the Cedar Street design which was designed to accommodate the conveni nee store access drive located at close proximity to the corner. The access drive t this location created the need to develop an additional lane. This concept plan was ap roved and the final plans and specifications were developed based on this approval. A the same time, cost estimates were prepared which were reviewed by Mielke and other roperty owners. At the recent council meeting during discussion of an item adde to the council agenda, Mielke expressed objections to the cost distribution. It was is view that the road system supporting his development was over-built and cost savin s could be incurred if modifications were made. In response to Mielke's concerns, s affwas directed to review the plans and discuss the plans along with the cost distri ution with Mielke. Clint Herbst requested to be involved in the discussions. I passed th s information on to Bret Weiss. I believe he handed this responsibility to Ron Bray. I 0 not think Bray has had a chance to meet with Mielke and Herbst. For the sake of time, council is asked to re iew both the design of the plans and the financing package this time as a formal ag nda item. ALTERNATIVE ACTIONS 1. Motion to approve plans and speci cations as prepared and order advertisement for bids for Cedar Street improvem nts. Under this alternative the City COUl ciI is satisfied with the plan as it exists and is willing to move forward on the con truction of the project as designed. Motion contingent on developer su port for project and associated funding program to be discussed with the ne t agenda item. 2. Motion to approve plans and specifications with amendments as approved by City council, and order advertisem nt for bids for Cedar Street improvements. ':'::,.i.,. """'1 City Council Agenda 06/25/0] . Under this alternative Council would approve adjustments to the plans based on discussion at the Council meeting and authorize advertisement for bids. Motion contingent on developer support for project and associated funding program to be discussed with the next agenda item. 3. Motion to table approval of plans and specifications and again request a meeting between the City Engineer, Mielke and Herbst. 4. Motion to deny authorization to proceed on the project. This option should be selected if there is complete disagreement between City Council and Mielke regarding road design/site access, and if there is no agreement on cost. If this option is selected, the Cedar Street Vacation is not longer valid as the street vacation was contingent on completion of the development project. STAFF RECOMMENDA nON It is recommended that the City Council either table the matter to allow time for the . Engineer/Mielke/Herbst meeting to discuss the plans further or review the plans at the meeting and make a decision regarding modifications immediately. Also, a full discussion and review of the cost distribution plan should be conducted at this time or with the next agenda item. If there is no agreement, council should table or deny authorization to proceed with this project. SUPPORTING DATA Additional data to be provided at meeting 2 . . . . A. 11. Council Agenda ~ 6/25/01 Consideration of ado tin resolution dec arinu cost to be assessed and settinu a ublic hearin on ado tion 0 an assessment rol for the Cedar Street 1m rovemcnt Pro' ect - 2001-18C. / \(,~ REFERENCE AND BACKGROlJND: Assuming that plans and specifications hav been approved by the Council on a previous agenda item and that approval has been giv n to advertise for bids on this project, it is recommended that the City Council adopt a resolution calling for a public hearing on adoption of an assessment roll for this improvement 0 be held the same day that bids are reccived, July 23, 2001. It has been our normal procedure to hold an assessment hearing after the completion of an improvement project but recently we have e perienced some difficulty in property owners contesting the amount of their assessments nd it may be beneficial for the Council to know in advance whether the planned project is feasible and that there will be no appeals of proposed assessments to benefitting properties. Man communities have found it beneficial to conduct the public hearing on adoption of an assess ent roll in advance of awarding a contract for the improvement in order to be assured that ass ssments will not be appealed after the project has already been awarded. The Cedar Street Improvement is basically i itiated because of the proposed Mielke planned unit development. Assessments are pro po ed to the Silver Fox Motel property in addition to the Mielke development. If the property 0 ners are going to be contesting or appealing assessments for this project, the Council ma want to know this in advance so that a decision can be made as to whether the improvement should even be completed. Preparing an assessment roll for this project ased on the lowest bid received should provide fairly accurate assessment numbers. Prior t completing the assessment roll, direction will be needed from the Council on how much, if al y. of the street reconstruction cost will the City be picking up in order for WSB. Inc. to prep re the assessment roll. Previous workshop sessions have supported the concept of the ity picking up at least 20% of any reconstruction street work. but any new improvements such as storm sewer, curb and gutter, or additional road width for such items as turn lanes woul be assessed at 100% to the affected propeliies. Dcpending on what assessment policy the C uncil wants to use. the public hcaring can be held on July 23rd, at the same meeting that the bid are reviewed by the Council. The property owners would have up to 30 days after adopfon of the assessment roll to appeal an assessment to district comi, therefore, the City would ho d the contract for 30 days before accepting the low bid to ensure that no appeals can take pIce. If an assessment appeal is filed, the Council could decide at that time not to award thecol tract and cancel the project. If that happened, ,the Mielke planned unit dcvelopment would 1ave to be redesigned to accommodate existing Cedar Street. which would likely to include' ccess alterations on their design. ,.. r::',:l ,~'!'1':', l Council Agenda - 6/25/01 . B. ALTERNATIVE ACTIONS: 1. If the plans and specifications have been approved and advertisement for bids authorized, the resolution could be adopted to set the public hearing on adoption of assessment roll for this project on the July 23rd Council meeting. As part of this motion. Counci I should direct city staff and city engineer on the assessment policy that will be used for this project for the reconstruction items of the improvement. 2. Do not adopt a resolution setting the public hearing at this time. C. STAFF RECOMMENDATION: It is the recommendation of the City Administrator that the public hearing for adopting the assessment roll under Alternative # 1 be adopted. Because the assessments for the Mielke development will be substantial because of the additional street work that is necessary to meet the development plans, and because of concerns raised by Mr. Mielke on the cost of the improvements, I believe it is reasonable for the City to determine in advance whether the . assessments are going to be acceptable to the property owners before the project is constructed. This information is also necessary in determining how the improvements can be financed especially if a future bond sale is required. When bond sales are structured assuming a certain amount of assessment income, and if those assessments change, it can create difficulty in establishing future financing. D. SUPPORTING DATA: Copy of resol ution. . . . . RESOLUTJO NO. 2001- RESOLlJTION DECLARING COS TO BE ASSESSED, ORDERING PREP ARA TION OF PROP SED ASSESSMENT AND SETTING HEARING ON P OPOSED ASSESSMENT CEDAR STREET I PROVEMENTS PROJECT N .2000-18C WHEREAS, costs have been determined for the i provement of Cedar Street between Chelsea Road and Oakwood Drive by the redesign and installatio of street improvements, sidewalk, pathway an realigning of existing water main, storm sewer and other appurtenant work and the contract price for such improvement is $ and the expense, incurred or to be incurred in the making of such improvement amount to $ so that the tot I cost of the improvement will be $ NOW THEREFORE, BE IT RESOLVED BY T E CITY COUNCIL OF MONTICELLO, MINNESOT A: 1. The portion of the cost of such improvemen to be paid by the City is hereby declared to be $ and the portion of the cost to be assessed against benefitted property owners is declared to be $ 2. Assessments shall be payable in equal annu I installments extending over a period of ten years, the first of the installments to be pay ble on or before the first Monday in January, 2002 and shall bear interest at the rate of _ % pe annum from the date of the adoption of the assessment resolution. 3. The City Administrator with the assistance fthe City Engineer, shall forthwith calculate the proper amount to be specially assessed for s ch improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and the City Administrator shall file a opy of such proposed assessment in his office for public inspection. 4. The City Administrator upon the completiOl of such proposed assessment, notify the City Council thereof. 5. A hearing shall be held on the 23rd day of Ju y, 2001 in the City Hall at 7 p.m. to pass upon such proposed assessment and at such time nd plaee all persons owning property affect by such improvement will be given an opportu ity to be heard with reference to such assessment. 6. The City Administrator is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the offic'al newspaper at least two weeks prior to the hearing. and shall state in the notice the tota cost of the improvement. He shall also cause mailed notice to be given to the owner of ea h parcel described in the assessment roll not less than two weeks prior to the hearings. 7. The o\"'ner of any property so assessed may, at any time prior to cel1ification of the assessment to the county auditor, pay the whole of the a sessment on such property, with interest accrued to the date ofpaymcnt. to the City. except th-t no interest shall bc chargcd if the cntirc _ .:.._.t assessment is paid within 30 days from the adoption of the assessment. He may at any time thereafter, pay to the City the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. Adopted by the Monticello City Council this 25th day of June, 2001. Roger Belsaas, Mayor ATTEST: Rick Wolfsteller, City Administrator . . . I ( . . . City Council Agenda ~ 06/25/0] 12. REFERENCE AND BACKGROUND With regard to the Mielke sanitary sewer a d water project, City Council is asked to authorize preparation of plans, approve pI ns and specifications. and authorize advertisement for bids. Under the current p an, the city will install the utilities and assess the cost to the benefitting property. Mielk has deposited funds sufficient to cover the cost o[the plans, so for the sake oftime st ffproceeded with the work to develop the plans prior to actual Council authorization. The main question that Council is asked to onsider is the financing plan which according to the original understanding, the City wou d pay for the cost to relocate the watermain. See the attached meeting minutes for detail Mielke is requesting that the City also pay for the cost to relocate the sanitary sewer Ii e which is located in the same casement as the watermain. According to the City Eng'neer there is no justification in paying for the relocation of the sanitary sewer line becaus the current line serves only the properties on the development site and a new line is need d anyway. In essence, if the city pays for the sanitary sewer line relocation it would b paying for a development expense normally paid by any developer. Attached you will find a break down of the ost distribution. Council is asked to review this cost distribution and authorize staifto p 'oceed further only after Mielke has agreed to the distribution and signed a form waiving t e public hearing process and accepting the assessment. At TERNATIVE ACTIONS 1. Motion to authorize preparation of plans, approve plans and authorize advertisement for bid. Motion contil gent on Mielke signing agreement waiving hearing process and accepting assess lent. Estimated assessment amount established in motion. 2. Motion to deny or table matter pendi g additional study or discussion. ,,",,)':'""':"'.' City Council Agenda - 06/25/01 STAFF RECOMMENDATION Staff recommcnds that Council review previous action and discuss matter further with Mielke. If an agreement can be reached on distribution of cost then staff recommends alternative 1. SUPPORTING DATA Meeting minutes, Engineer cost data. 2 . . . . . . 13. Council Minulcs - 12/] ] /00 Consideration of orantino financial assi. tance to the Mielke commercial develo ment. JelT O'Neill summarized the stail report ellphasizing the rcqucst 1'01' improvements to Cedar Street and also the request for financial ass stance from the City. The dcveloper is requesting City assistance for relocation of the water I lain, demolition of structures on the property. and forgiveness of trunk utility assessments. 'r,e developer had proposed that a tax abatement program be employed 10 fund this request. It was noted that the development will generate approximately $28.000 through the abatem nt program. The recommendation of the City staff WaS that if tax abatement is utilized as a development tool. the City should have in place guidelines and procedures for its use prior t it being implemented. / ) . The Council discussed the relocation of the \vater main. which John Simola. Public Works / Director estimated would run approximatel. $20.000. possibly more if the sidewalk is "-......disrupted. At this time Bret Weiss of WSB & Associates provided design information from the feasibility study being done on Cedar St 'eet. WSB \vas asking for feedback from the Council on the options. Design Option #] 'ould allow for the] ) I of right-of-\.vay to be vacated as requested by the developer and tl at was the option the Council ielt should be pursued further. Dennis Zylla representing the Mielkes spok to the Council stating the follo\ving: ]. The cost of demolition of the houses at $9 250 was the bid amount not an estimate. 2. The trunk utility fees were not being forgi ten as stated by city staff but \vould in fact be repaid. 3. The amount of the recaptured value \~'as n t c;.alculated with the consultant's software. At the present time the market alue is $400.000. rfth~ project proceeds the market value would be in excess of $] .000.000. 4. They didn't object to the five lane street d sign as long as the right-of-\vay vacated was a minimum of II' as they were very much oncerned about the overlapping of curb into The public right-of-way. Mr. Zylla stated that what they are requesting are eligible costs if this \vould be a tax increment district but he indicated a willingness to work with the City in this area. 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C=;:: ""'= :: ~ ::: .2 ~ ~--. ~. ~ ; I, Q n n '..-J ::j t'T1 '..-J -< 0 , .)> ;:-; 0 ;::0 ,- "'ll (/l $: -I o ;::0 z [T1 -l [TI n ::2 t'T1 $: r t'T1 r r o r: [T1 o [T1 < [T1 r o -0 s: [T1 Z -l C -I r ::j m (/l n ~ 0. ~ S .~ .~ .~ ~.1. (? (? (1l n U !:l Z Z Z ~ ~ 0 g 'T DC n -l o - .. r-:: if ~ '"' " t; [ i~' 3.. .~ .~ ~ ~ ::: '"C ::; s: e N Z Z -;;" ,.., - ~ LT: Z a - Z rn CT: to r../: o '"'0 - Z - o z i '"'0 ~ o co > co e- rn n o C/'J ~ . . . . ]3. City Council Agenda - 06/25/01 Review )ro osal for develo ment of ami ed use residential deve]o _ ment at Wildwood Ponds by Fan Development. A. REFERENCE AND BACKGRO The City Council is asked to comment on' Farr Development proposal to develop a mixed use residential neighborhood at the 38 acre alph Hermes property. The original preliminary plat/development concept for this site prep red by the developer envisioned development of single family homes. Due to extraordinary evelopment costs associated with this site, there is the need to increase density from approxi ately 2.7 units per acre to just less than 4 units per acre. Please note that 4 units per acre falls within the category oflow density residential. The proposal calls for 27 single family lots, 8 detached townhomes, 38 attached townhome units and 40 units in 5 eightplex structures. As part of the research on this matter, Dick rie and Steve Grittman participated in a tour of similar developments. Generally staffsupp rts a mixed use concept including single family and townhomes when there are strong restr ctive covenants that can not be changed by the developer. We are not supportive of the pr posal for eight-plex units. B. ALTERNA TIVE ACTIONS Discussion only, no motion is requested as consideration should occur only after a public hearing. If the applicant feels that there may be su port for the concept, then a preliminary plat app]ieation may be pursued. The majority of the Planning Commissio reviewed the concept for mixed residential development as long as the density is equal r less than 4 units per acre. Dick Frie felt that the comprehensive plan for the area as low ensity residential means single family only. C. STAFF RECOMMENDATION Staff supports this concept if eight-plex nits removed only if strong design and site maintenance standards are adopted. D. SUPPORTING DATA Exhibit A - Preliminary Plat Exhibit B - Steve Grittman' s repOli . NORTHWEST ASSOCIATED CONSULTANTS; INC. 5775 Wdvzata Boulev<Hd, uite 555, 3t L.ouis Park, Mhl 55416 'Telo!=lhone: 952,595.9636 Facsin iie: 952.595.9337 plnnnCTs)i)nacplanning,corn MEMORANDUM TO: Jeff O'Neill FROM: Stephen Grittman DATE: June 20, 2001 RE: Monticello - Housing Den ity FILE NO: 191 .06 . At the last Planning Commission meeting, Farr Development requested consideration of a mixed residential project on property it is purch sing in the City's southeast area adjacent to it's Wildwood Ridge development. The co cept they are pursuing is a planned unit development that includes approximately twic the number of residential units they had estimated would be in an exclusively single fa ily project. A number of issues came up at the Planning Commission meeting rela ing to density, annexation, and the Comprehensive Plan. I have attempted to add ess them below. The issue generating the developer's request r lates to higher than normal development costs expected on the new site, and (somewh t) lower than expected lot prices in the previous development. As we have discuss d, the City would be best served by considering whether the proposed request meet its land use plan and its expectations for new development in the area. Development coss and land prices can be a relatively short term issue that may be best addressed through arket forces rather than manipulation of densities on a project by project basis. . A portion of the Commission's discussion relate to the proposed density of the project, and compliance with the City's land use plan. lanning staff had related an expectation that residential densities would not exceed fou units per acre in areas guided for low density residential land uses. The Planning Com ission raised an issue as to whether this land use category includes only single family de ached housing. ,3 fA Traditionally, planners discuss housing density without reference to the type of structure . containing the units. The type of structure (e.g. single family, twin-home, townhouse, etc.) is most commonly addressed in the zoning ordinance language. As a result, a project can be low density, even if it is made up of townhouses, and another project can be medium density with single family homes. Density and unit type are also measured differently. Density is measured in units per acre, whereas unit type is measured by lot size. Thus, residential density may be expressed as 3.0 units per acre, and single family lots are expressed as 12,000 square feet per lot. The net residential density of single family (attached and detached) development at the time of the Comprehensive Plan was approximately four units per developed acre. Planning staff has used this number in interpreting a project's compliance with the land use plan. Because a project must show compliance with the land use plan as a pre-condition for annexation, this calculation is important. We have used developable land as a basis for the calculation - therefore, wetlands are not included in the density allowance, but streets are a part of the calculation. This equalizes the calculation between projects with public and private street construction. In summary, a project that is no greater than four dwelling units per net developable acre would meet the definition of low density residential, even though it may be made up of varying unit styles, including townhouses. It is important to note, nonetheless, that the City . still retains its zoning authority. As a result, just because a townhouse project is proposed at four units per acre, the City is not compelled to approve it. For a project to proceed, the City must find that the project meets the character of the area in which it is proposed. /3B . . . . City Council Agenda - 06/25/0 I l1. Consideration of ado (10) REFERENCE AND BACKGROUND Attached you find the Court of Appeals ru ing on the Gold Nugget Case along with the comments by Paula Caulies, the attorney r presenting the City/Township/MOAA. You will find in the ruling that the Appeals Co rt found that the comprehensive plan established by the MOAA was invalid due to an error in the process for establishing the plan. The Court in sum suggests that the OAA go back and complete the plan following the proper process. In her note 0 the City/Township, Caulies mentions that the 1998 agreement between the city and t wnship was predicated on completion of a comprehensive plan by July 8, 1999. Acc rding to Callies and Dennis Dalen, since a plan was not properly established by this d te the MOAA board does not exist because the terms of the 1998 City/Township agree ent were not met. In essence, as of to day's date no valid agreement exists, and therefo e the city is now operating under state statutes in terms of the annexation process. Any a nexation request by a township property owner would be considered by the city foIl wing the state law which allows land to be annexed to the city by ordinance after a pu lic hearing. The township may make comments at the public hearing but has no uthority to otherwise stop an annexation effort initiated by a property owner. ALTERNATIVE ACTIONS City Council is asked to consider the follow ng options 1. Motion to adopt a new agreement wi h the township similar to the] 998 Orderly Annexation Agreement. Under this alternative, the City Coun il would move to enter into a new agreement thereby reestablishing the MOAA, appoint representatives and begin the shared City/Township/County pr cess of establishing a comprehensive plan for the city's boundaries. Recently t e annexations have been fairly smooth. The current and future difficulty relates to the major differences between the city and the MOAA plans. As you know, due to the differences between the MOAA plan and the city comprehensive plan, ther are major land areas that are left in land use limbo due to the conilicting desig]ations. Similarly, in cases where land Lise designations between City/MOAA ar the same it may be difficult to update land Lise plans because both entities must a 'hi eVe a super-majority vote for any change to OCCLlr. City Council Agenda - 06/25/01 . 2. Motion to table adoption of a new agreement similar to the original agreement and renegotiate the terms of the agreement or research other possibilities for governing annexation and land use planning. As you recall, a major reason for entering into the 1998 agreement in the first place was the oPP0l1unity to set a sunset date for the MOAA agreement established in the 1970's. With the decision by the Court of Appeals, the city at its discretion may be free from or significantly alter the orderly annexation agreement/process and move into a new era today. Council may view this development as an opportunity to establish a new method for dealing with planning and annexation issues. Before simply entering into a new agreement Council may wish to explore options that could include one or more of the following. A. Follow state statues governing annexation which require that land annexed to the city first be initiated by a property owner followed by a public hearing by the city at which time the city may simply annex the parcel by ordinance. At the time of annexation, the land use must match the city" s comprehensive plan. Planning decision around city borders prior to annexation follows county rules which prohibits development in city expansion areas. According to Dennis Dalen, this is the current situation. Also, there is no requirement that the city annex land based on a property owner request even if it follows the city's comprehensive plan. . B. Develop a simplified orderly annexation aQreement that more closely resembles orderly annexation agreements found in other areas of the state. Such an agreement might limit the area that the city may annex by ordinance. In exchange, the township/county gives the city complete planning authority in the orderly annexation area even before the annexation occurs. One land use plan would then govern orderly annexation as opposed to the current situation where two opposing plans exist. Under this alternative a process could be established for obtaining township input on the plan developed by the city. C. Review recent decisions made bv cities and townships facing growth issues and examine the results. Such areas include St. Michael/Franklin Township, Forest Lake/Forest Lake Township, St Cloud/Area Township, Elk River/ and others. Perhaps there is a good model to follow. . 2 . City Council Agenda - 06/25/01 STAFF RECOMMENDATION SUPPORTING DATA Court ruling/comments from Paula Caulie . . 3 . . . HOFF, BARRY & UDERER, P.A. PROFESSIONAL TELEPHONE (952) 941-9220 1.80Q..989-9220 FAX (952) 94]-7968 PAULA A. CLUES e-mail pac@wintemet.com June 19. 001 . CONFIDENTIAL - ATTORN Y/CLIENT PRIVILEGE JeffO'Neill City of Monticello 505 Walnut SL Suite 1 Monticello.MN 55362 Tom Salkowski Joint Planning Board Wright County 10 2nd Street N.W. Buffalo. MN 55313 Clint Herbst 9801 Gillard Ave. N.E. Monticello. MN 55362 Re: Roger Belsaas 2620 Meadow Oak Lane Monticello. MN 55362 Franklin E. Denn Monticello Township Chairman 7397 Eisele Ave. N.E. Monticello. MN 55362 Gentlemen: Enclosed please find the decision of the Court of A peals in this matter. The Court of Appeals determined th:lt the Joint Planning Board was form din accorda.l1ce with stap..ltory procedures and is valid. However. they determined that the Co prehensive Plan is invalid due to improper notice of the public hearing. Because of their findi that the Comprehensive Plan is invalid. the Court of Appeals reversed Summary Judgment on t e issues of estoppel and taking, and remands those to the District Court for further proceedings. The Court of Appeals' Opinion is somewhat uncle . because it does not specifically address all of the issues considered on Summary Judgment. H wever. as we interpret the Opinion, Summary Judgment is affirmed in favor of the City naIl of the issues. except the validity of the Comprehensive Plan, estoppel and taking. By hold. g that the estoppel and taking claims were premature, the Court of Appeals seems to recognize that the Comprehensive Plan would come back before the Joint Planning Board for adoption. nti! the Joint Planning Board takes final 7901 FLYING CLOUD DRIVE. #260-EDEN G:\WPDA T A\3200-698\c1iel619Itr.doc: 14~ Page 2 June 19,2001 action with regard to the Comprehensive Plan, after proper Notice and Hearing, the Court of . Appeals finds the estoppel and taking claims of Plaintiff would not be ripe. I think there was a sufficient legal basis for the Court of Appeals to decide these claims in favor of the City now, but that is not the approach they took. There is another issue that this Opinion raises. Under the Joint Resolution, the Planning Board was to adopt a Land Use Plan within one (1) year of the Agreement, or the Agreement is considered "null and void." Resolution 98-7, Paragraph 3. The deadline for adopting a Land Use Plan was subsequently extended to July 8, 1999, by an amendment to the Joint Resolution. The Joint Board did adopt the Comprehensive Plan on July 17, 1999, within the extension deadline, but that Land Use Plan has now been declared invalid by the Court. Therefore, the conservative approach to protect against further challenges to the validity of the Board, based on its failure to adopt a valid Land Use Plan within the required time period, is to readopt the Joint Resolution establishing the Board and allowing for time to adopt the Land Use Plan. In order to adopt the Land Use Plan, it will be necessary for the Joint Board to conduct a Public Hearing and publish Notice of the Hearing in accordance with the statute. Also, it is the Joint Resolution that currently sets out the requirements for annexation to the City of Monticello. In particular, the requirements are that: 1) the land be contiguous with the City's border; and 2) the proposed use for the land is consistent with the Land Use Plan adopted by the Joint Planning Board. As long as the Joint Resolution is in effect, there is a good argument that Gold Nugget cannot prevail in their estoppel claim, because this would require the City to violate its own Agreement For Orderly Annexation. (Assuming the Gold Nugget land is designated . Industrial by the Joint Board in the Land Use Plan). Presumably, the City would agree to annex the property if the land is designated Residential. You do have the right to petition the Minnesota Supreme Court to review the Court of Appeals' Opinion within thirty (30) days. A review of any decision of the Court of Appeals is discretionary with the Supreme Court and it is unlikely that they would accept review in this case. The Court of Appeals' Opinion is unpublished and does not seem to meet the other criteria for Supreme Court Review, such as where there are inconsistent Court Opinions, or constitutionality of a statute. Please give me a call if you have any questions, or would like me to discuss this further at a joint meeting of the parties. Sincerely, ~Q.~~ Paula A. Callies HOFF, BARRY & KUDERER, P.A. PAC:baj Enclosure cc: Dennis Dalen, Esq.; Brian Asleson, Esq.; Michael Couri, Esq.; Mark Rossow, BRAC #11030161 . 7901 FLYING CLOUD DRIVE, #260-EDEN PRAIRIE, MINNESOTA 55344-5382 I L\ A EJ..lS ~T PARTNERS, INC . . . (612) 474-854-7 06(19/01 11:57A P.001 This opinion will be :published and may nOI be ciled e:xce t as provided by Minn. SIal. S 480A.08. subd. 3 (2000)_ STATE OF SOTA IN COURT OF PPEALS C3..o1- Gold Nugget Develop enl. Inc.. c( aI., Appell is, vs. The City of Monti clIo, C( aI., Responde IS. Filed June 1 , 2001 Aftlnned. in part, reversed i part, and remanded Klaphake, udge Karen E. Marty. 3601 Minnesota Drive, Sui e 880. Bloomington. MN 55435 (for appellants) George C. Hoff, Paula A. CalliC$. Hoff, Barry Kuderer. PA.. Suite 260, 7901 Flying Cloud Drive. Eden Prairie, MN 55344 (for resp ndenl"i) Considered and decided by Crippen, residing Judge, Klaphake, Judge. and Stoneburner, Judge. UNPUBLISHED OPINION KLAPHAKE, Judge In this dispute over enactment of a camp chcnsive land use plan. appellants Gold Nugget Development. Inc.. Oeello. LLC. and E & K Development, LLC. challenge the district court's grant of summary judgment to rc. pandents City of Monticello and others. ) Ll A EHS f'1ANA(;EMENT PARTNERS, I NC (612) 474-6547 06/18/01 11:57A P.00Z The district court concludcd that the joint planning board, which drew up me comprehensive plan, was properly created by the city and township, and that the board had followed statutory procedures in formulating an orderly annexation plan. thus denying appellants' motion for a partial summary judgment on these issues. The district court further ruled that the decision of the board designating appellanto;' property for furore industrial zoning wac; not arbitrary and capricious or an unlawful taking of appellants' propcrty, and that the city should not be equitably estopped from refusing LO annex appellanlS' property in accordance with the plan. Because the joint planning board was formed 10 accordance with Stalutory procedures, we atfirm on this issue. However, because the board failed to give public notice prior to enactment of the comprehensive plan as required by statute, wc reverse the district coun's ,grant of summary judgment to respondents and its denial of sumImlIj' judgment to appeJ]ants on this issuc and hold, as a matter of law, that the comprehensive plan is invalid_ In light of this, we reverse the dilarict court's summary judgment on the issues of estoppel and taking, and rcmand these issues to the district court for further proceedings. DECISION On an appcal from a summary judgment, we examine whether there are any genuine issues of material fact and whether the district eourt crred in its interpretation of the law. Cummings v. Koehnen, 568 N.W.2d 418,420 (Minn. 1997). Where, ao; here, the parties do nO[ dispute the facts, we review whether the moving party is entitled to 2 I Lf ~ . . . EHS MANAGEMENT PARTNERS, INC <61Z> 474-6547 06/19/01 11:57A P.00S . . . judgment as a matter of law. Fisher v. Co nty of Rock, 596 N.W.2d 646. 651 (Minn. 1999). L Composition of J int Planning Board Appellant'i allege a number of mL"tak s in the city and township joint resolution of M~eh 5, 1998, which created the plannin board. MUnicip,ilities and townships are authorized to create joint boards to handle nnexation issues. Minn. Stat ~ 414.0325, subo. 5 (1998). Such a board is created by joint resolution under Minn. Stat. * 471.59. subds. 2-8. Id. Appellants argue that the arch 5 joint resolution failed to address the requirements of Minn. Stat. ~ 471.59. subds. 2, 3, 5 (1998). Minn.. Stat. ~ 471.59, subd. 2, requi es joint boards to be "representative of the parties to the agreement." AppellantS urge at because one member is appointed by the county. a non-parry to the agreement, the b ard is not representative. However, both the cily and township are equally rcpresenred. c term urepresentativc" is not defincd in the stanltc. but subdivision 6 of the same s officeholders need not bc residents of the governmental unit in which ey hold office. Minn. Stat. ~ 471.59. subd. 6. This suggest'i that urepresentativc" is to broadly defmed. Minn. Slat. ~ 471.59, subds. 3 d 5 concern disbursement of funds and distribution of property. No mention of ,=h se issuc~ i~ contained in thc joint resolution, but the board does not control fund disburse ent or own property; rather. its cxpenses are paid on an equal basis by the city and t wnship. Under the doctrine of substantial compliance, technical defccts of a minor na re. which do nor undermine "the purpose of I q C1 EJ-jS ~T PARTNERS, INC <S12) 474-6547 06/19/01 11:57A P.004 the procedures. or prejudice the rights of those intended to be protected by lhe procedure::;," CmI be waived. Manco of Fairmonr, Inc. v. Town Bd. of Rock Dell Towfl.'ihip, 583 N.W.2d 293, 295 (Minn. App. 1998) (quotation omitted). review denied (OCl. 20, 1998). The district court did not err in granting summary judgment on this issue. II~ Notice of Public Hcarin2 A joint planning board has the authority to create a comprehensive land use pJllCl in an orderly annexation area. Minn. Stat. * 414.0325, subd 5 (1998). Before adoption of a comprehensive plan, the planning agency must hold at least one public hearing and publish 3. notice of "the time, place and purpose of the hearing'" * '" in the official newspaper of the municipality at least ten days before the day of the hearing." Minn. Stat. ~ 462.355, subd. 2 (1998). Appellanto;; point oul that the public hearings held in August and October /998 precede the formulation of the plan thal changed the tentative designation of their property from residential to industrial zoning. The board's decision adopting that portion of the comprehensive plan designating appellants' propeny for future industrial zoning occurred al 3 meeting in May 1999. withouL the required SlaLutory notice and public hearing. The final adoption of the plan in July ] 999 concerned only a. portion of the plan. which did Dot include appel1ant~' property. The notice for the public hearing held prior to the July vote on adopting me plan referenced only that portion of the plan and not appellant')' properly. 4 14A . . . EHS MANAGEMENT PARTNERS, INC <812> 474-8547 06/18/01 11:57A P.005 . Notice requirements have been stricti construed in zoning and land USe matters. Glen Paul Court Neighborhood Ass'n. v. aster, 437 N. W.2d 52. 56 (Minn. J 989). "Administrative convenience does not ou weigh the right of property Owners to statutorily mandated due process." /d. "Ie minor dcfects in notice can be waived, notice that lacks indication of subject matter is insufficient. Jd. at 57; Pilgrim v. City of Winona. 256 N.W.2d 266, 270 (Minn. 1977. In this matter, ,tppcllants were given no opportunity for a public hearing after a ch nge in the proposed designation of their property. In the absence of substantial c mpliance with notice and public hearing requirements, the adoption of the comprehc sive plan is "invalid and a nullity:' Glen Paul CQurt. 437 N.W.2d at 57. The disU'ict c un erred in granting summary judgment on this issue. . In light of our holding that the campr hensive plan is invalid. the district court's summary judgment on the rem..1.ining issues 'nvolving equitable estoppel and taking are premature. We remand these issues to the dis rice court. Affirmed in part, reversed in part, a d remanded. 5 . ) Ll A . . 0'" "'''' ",,,; "''' UO: H'" b> zo o OJ :.: 0 """,, 0 vo ~o b> H' UlfJO:::: HO 00 ",..., "''''' l) 0"' "'''' m "'''' .,'" <0'" --< 0 '" "" H QJ ,.., "'" '""' ---- '" .0 '" '" ;>, Cf) ., m '" l! 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Ul H ;;i~~","'6;::~",,,,tJiQ 0 <( b '" '" '" '" ZH '" U ~g5~~~~~;~~~~ '" '" '" 00 <( Ul ..:l < ~ Z ..:l 00 U '" "'H'" 0;< 0"; "''';'''OH ;;] U '" ..:l UN '" 0 LIJ..J::r:lfJo.(,JUlJ'\3::UJ~Q::; '" Z " <( U...... t:>: t:>: <H ..:l ..:l N C> '" < '" '" ..:l ,,; C/)...... Z Z ~t-1f""'\-:t'ul\.COr-1r-lNO\r-1 b :i! ~ z t; U", 0 0 01""'i,...jN0IN~\.DOCOlf1 0 '" <(0 '" '" -iNNNNNf\loq-<l,Dl,D\..D1.D b OJ OJ '" f-< " TO: Mayor Belsaas & City Council Members FROM: Dan Mielke RE: Pre-Council Meeting Informati n DATE: June 22, 2001 For any business development project to be co petitive in the market, any others, or ours, the financial impact numbers have to wo k. If this can be accomplished in a mutually benefiting way, all parties benefit. T e city benefits by way of tax base and redevelopment of deteriorating properties. Th business ( or businesses) within the development benefit because they can survive mancially. Failing businesses benefit no one. Because of to day's excessive costs for develo ment, many development projects seek city financial assistance (TIF, tax abatement, e c.). Without it the numbers do not work and there is no project. We (the Mielke Development, as the city refer to it) need to make our numbers work as well. We can not just absorb any and all costs. In our efforts to attract tenants for our develop ent we have to be competitive with our (their) costs, not only in Monticello but with 0 r neighboring cities and developments. Examples - - retail and food outlets such as Ou lets at Albertville, Clearwater, Becker, Buffalo, Rogers and to some extent Maple Gro e, St. Cloud and Elk River. This is why we are so concerned with: (1) costs relating to utility issues (particularly he need to relocate the city water & sewer lines laying in an easement across our pro erty) (2) proposed assessments relating to the upgra e of Cedar Street (3) CCD developments, most notably the Tow e/Centre development. Our project has already absorbed assessments ssociated with the development of Highway 25 and Chelsea Road. Following you will find expanded information elated to the three items listed above. (1) UTILITIES The issue of the city easement containing wate and septic lines angling across the development site needs to be resolved. At an earlier council meeting it was our unders; anding the city offered to relocate these lines instead of a tax abatement program as we had proposed. Some city staff thought it was a water line onl . Why would we agree to that? And does it even make sense, when the septic would als have to be relocated? The lines need to be relocated because we can ot build over functional water and septic lines. The question is: a) who absorbs the cost for relocation. b) do the existing lines need to be rem ved, or can they be filled and capped? Filling and capping, we believe, is less expensi e and we would be open to that if the city can assure us we are not going to have issues ith building permits because the lines still exist. In regard to relocating the septic line, we woul prefer the city participate with us and relocate it down our site's main traffic spine, hich could save both the city and ourselves money. (2) ASSESSMENTS RELATING TO CED STREET UPGRADE fA;td Jfi J JI /j/' ~ {' (~ ~h I A- I q ([., p"?) 1 ~~ If the city feels the street needs to be engineere as proposed (large), that is OK with us except for the percentage of the assessment ap lied to us. Our development does not require that size of road. We expect to participate in costs of upgrades, but at a percentage that is appropriate to the needs of 0 r development. Benefit to the city, and other anticipated traffic, needs to be factored i and covered by the city. We are also concerned that it is proposed we b assessed $80,000 more than the property owners on the other side of Cedar Street. Othe considerations: a) their benefit is the same as ours; th ir traffic will increase as a result of our development b) we will be locating a $1.5 to $2.0 illion restaurant next to Cedar Street. It is entirely possible that a few months ater a $2 million restaurant could be built across the street on their vacant lot. The assessments need to be equitable. (3) TOWNE CENTRE / CITY LIOUOR EXP ANSION IS THE CCD DISTRICT CREATING AN UNHEALTHY BUSINESS ENVIRONMENT IN MONTICELLO? DEVELOPMENTCONWARISONS: CO ~SIDER COSTS VS. INCOME GENERATING POTENTIAL FACTORS TOWN CENTR ~/LIQUOR MIELKE EXPANSION DEVELOPMENT Size of Parcel Approximately 2 acres 3.5 acres Proposed Income Parcell - - l5,3! 5 Producing Building Parcel 2 - - 6,0! o retail Space M jlliquor Total = 30,9 05 sq. ft. Total = 16, 091 sq. ft. # Parking Spaces Parcel 1 - - 46 191 spaces plus Parcel 2 - - 63 stacking lanes for Total = 109 s laces lube, washes & gas Access <30,905 sq. ft. n tail space <16,091 sq. ft. retail <traffic access d reedy on and <traffic primarily on off State Hwy 2~ and off Cedar St <no costs for ad( itional turn <2 intersections lanes, etc. removed from State <no consideratio n for traffic Hwy 25 congestion or sa ety <recommended we have special turn lanes for congestion and public safety City Participation <Financial AJ( Ne <Financial ??? "-y10 T}r ~ <Reduced requir ~ments <Significant 1f~ (setbacks, landsc apmg, requirements parking) (setbacks, parking, landscaping) )~f2 · L;. - /I~""J...-:t sKI/- Assessments ?? f.t)(l.c.1o'I f>r: ?Jv.j!A Significant I I Development Costs/Fees ?? >;\"~ k< ~I ~'1~ Significant ...-- ..- ------.,.-.. --.. . -.- J;jc;l 'J/)ou1 -ft.' L I h;(... (i,yx. ~ / I r " \....-11 A- f;, Ii! liS.'!) r r (-"-l'e' ~(')t F;// . ---- 7 vt((lf r. . A healthy business environment is played on level playing field; one where businesses compete on the basis of product and service. t should not be based on who can extract the most assistance from the city financially a d in reduced requirements or fees. This directly affects the lease rates offered and the uality of product the businesses have to deliver. The business environment will dictate the kin of development Monticello experiences. Maple Grove's business district has a level pI ying field - - very healthy and attracting many high quality businesses because they ca compete with product and service. We personally want to see business growth in onticello, whether direct competitors or not. But we want to compete on the basis of p oduct & service. Respectfully submitted, 9 <Xfi'--7IJ'JdJ~ Dan Mielke P.S. Do you have any concern that too much ongestion in the Towne Square/Liquor Development will harm the city liquor sales p tential? 06/22/01 FRI 12:15 FAX 6128784517 Dan d Linda Mielke III 007 ""'rJ WAlE Ct;.A/TR6./t..IQU..o .........i.. EXHIB1'7 E "'.... '. ",~ " , "::-"~':''''.i..:;.;, ..:;;.0-.'. ~'I \ ; .:.. ~.:'::'., - ',~,. ": - /' 0%/18/%001 FaI %0:05 F4I 183 S91 0984 D15t71e.D~1 .P.C. iii DOl/DOl ~ -~ - i) . - -- . i. IsH --- -- _........... ~ -- - - -- . ......-- -- -... --- -- r j!1 ~I!II ! r~ ;=., !~ 1.5i II ' l-q~J I I I,,=- =>j I ii )E!ilil o;Q I I . ill =ill= I I ;tS I,"!.i~ I I I . . I . ~ Wllil I I jl !!= I ! !~lti ~ . I 'I - '=' 1= 1!11l1 il~ :~.II. I l!!s " 0 0 ~ !II.I ; 51!11 i 1e.1! J . 800 III a~IalN apUl' pua a LTSt8L8ZT9 YVd ST:ZT I~ TOIZZ/90