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City Council Minutes 12-09-1985MINU`T'ES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, December 9, 1985 - 7:30 p.m. Members Present: Arve Grimsmo, Fran Fair, Bill Fair, Dan Blonigen. Members Absent: Jack Maxwell. 2. Approval of Minutes. Motion was made by Bill Fair, seconded by Blonigen, and unanimously carried to approve the minutes of the regular meeting held November 25, 1985. 3. Citizens Comments/Petitions, Requests and Complaints. Mr. Greg Dolphin, owner of the Burger King Restaurant, requested that his variance request for additional height and size on their advertising sign be placed on the agenda for consideration. Mr. Dolphin noted that the Planning Commission was not able to obtain a quorum to make a decision last week and requested that the Council hear his variance request. Motion was made by Bill Fair, seconded by Fran Fair, and unanimously carried to place Burger King's sign variance request on the agenda for consideration because of Planning Commission's inability to act at the last meeting. Mr. Keith Kubert, of West River Street, informed the Council that his mailbox was knocked down by a snowplow during the recent storm and requested that the City pay for the installation of a new mailbox rather than just providing reimbursement for materials as is the City's current policy. It was noted by the staff and Council members that the City crews make an effort to remove snow as close as possible to eliminate the need for the home owner to shovel for access to his mailbox; but occasionally some mailboxes are damaged because of the snow being pushed upon them or being struck by the plow. It was noted that the City crews, during a storm, are usually very busy and would not have the time to replace individual mailboxes that are damaged; but the City policy is to provide for reimbursement of materials to repair damaged boxes. After further discussion on Mr. Kubert's request, it was the consensus of the Council to adhere to the policy in effect of reimbursement for materials only, with the home owner being responsible for actual installation. Mr. John Sandberg appeared before the Council to express his dissatisfaction with the Council's recent decision to eliminate the proposed PZ -R Zone -1- Council Minutes - 12/9/85 along River Street from the public hearing scheduled in early January, 1986. Mr. Sandberg noted that when he purchased a vacant lot on East River Street, property across the street was zoned R-3 (Multiple Family), and it was his intention to propose multiple zoning for his vacant lot. At the time his request was made for rezoning, he was instructed that the City was in the process of revising its Comprehensive Zoning Map to possibly include a type of zone that would allow some multiple dwellings along the river and felt that the City Council's decision to eliminate the PZ -R Zone from the public hearing was in error. Mr. Sandberg felt that many residents along River Street are still in favor of PZ -R zoning and that he intends to conduct a survey for presentation at the public hearing scheduled in January. 4. Public Hearing on a Modification of Tax Increment Finance District #2. Tax Increment District #2 was previously established in the downtown area to encompass the Hass property, K & H Auto, Metcalf & Larson property, and the old Ford Building site, along with the O'Connor Truck Garage and Jones Manufacturing sites. Metcalf & Larson have recently developed an office building within the District, and it was the City's proposal to enlarge the District to include a residence directly north of the Metcalf & Larson building in Block 50 and. three vacant lots owned by the HRA in Block 51, along with Stelton's Laundromat property and the Marie Gustafson property all in Block 51. The intent of the modification is to capture increment that will be generated by the construction of the elderly apartment house project proposed for portions of Block 51. In addition, the enlarged Tax Increment District may be a benefit to the HRA once development occurs on the Hass/K & H Auto property. Hearing no comments from the public, the public hearing was closed; and a motion was made by Fran Fair, seconded by Bill Fair, and unanimously carried to adopt a resolution modifying Tax Increment District #2 enlarging the boundary area. See Resolution 1985 #31. 5. Consideration of a Resolution Awarding the Sale of $350,000.00 in Tax Increment Bonds. Mr. Ron Langness of Springsted, Inc., the City's Bonding Consultant, presented seven bids that were received from various financial institutions on the issuance of $350,000.00 in tax increment bonds which will be used by the HRA to acquire Block 15 for redevelopment. The bids received were as follows: Dain Bosworth Incorporated 1st National Bank of Mpls. Juran & Moody, Inc. Piper, Jaffray & Hopwood, Inc. Allison -Williams Co. Miller & Schroeder Financial, Inc. The 1st National Bank of St. Paul -2- Net Interest Cost & Rate $401,893.34 8.2893% $412,777.92 8.5138% $415,059.58 8.5609% $416,125.42 8.58280 $416,674.17 8.5941% $421,421.25 8.69200 $426,325.00 8.7932% Council Minutes - 12/9/85 Mr. Langness recommended that the City accept the low bid from Dain Bosworth, Inc., in the amount of 8.2893% net interest rate. Motion was made by Bill Fair, seconded by Blonigen, and unanimously carried to adopt a resolution awarding the sale of the $350,000.00 bond issue to Dain Bosworth, Inc. See Resolution 1985 #32. 6. Consideration of Adopting a Resolution Authorizing the Execution of a Pledge Agreement with the Housing and Redevelopment Authority. A motion was made by Bill Fair, seconded by Fran Fair, and unanimously carried to adopt a resolution entering into a pledge agreement with the Housing and Redevelopment Authority which guarantees that the tax increments generated by the project proposed for Block 15 will be turned over to the City for the retirement of the above issued tax increment bonds. See Resolution 1985 #33. 7. Consideration of Encompassing a Request to Rezone to R-3 Within the Overall Zoning Revisions. At the last Council meeting, developer John Sandberg appeared before the Council to present the idea of rezoning a portion of the Meadows Subdivision to R-3 for multiple family dwellings. Before he incurred additional expense in preparing a preliminary replatting of the Meadows, Mr. Sandberg requested an indication as to whether the Council would be receptive to the idea of R-3 zoning in that area. The Council gave their preliminary indication that R-3 zoning in that area was sensible planning, but there were some development concerns to be addressed. Mr. Sandberg proceeded to prepare preliminary replatting plans for the Meadows for Planning Commission review December 3; but due to a lack of a quorum, no action was taken on Mr. Sandberg's preliminary plans. As a result, the timing factor of holding a public hearing on the proposed revisions to the overall City Zoning Ordinance scheduled for January 13 and the consideration of the replatting are in conflict in that the proposed zoning to R-3 in the Meadows would be heard before a preliminary plat is reviewed to address development concerns. If the R-3 zoning occurred prior to the preliminary plat review, the City may lose control on conditions that could be applied to the development since the zoning is already suitable for multiple buildings. If the zoning is not amended to R-3 as part of the overall plan but rezoning is considered after the preliminary plat is reviewed, Mr. Sandberg felt it still leaves him in a position of proceeding with replatting cost and not knowing whether the rezoning will ever occur. An alternative to the problem was presented by the City staff whereas the rezoning request to R-3 could be considered by the Council at the public hearing scheduled January 13 but contain a sunset provision whereby the parcels zoned R-3 could not be -3- Council Minutes - 12/9/85 built upon for a period of 60 days to allow for Mr. Sandberg to complete and get approval of his replatting request. In this case, if the replatting did not occur, the property would revert back to R-2, or single and two-family residential. Mr. Sandberg indicated opposition to the proposal to rezone to R-3 with any type of sunset provision and indicated if this was the City's intent, he may just drop all plans to replat the Meadows and develop as it currently exists. Some Council members felt that the delays in reviewing the preliminary replat were not the developer's fault due to Planning Commission's inability to obtain a quorum and felt that including in the public hearing on January 13 the proposal to rezone to R-3 would not be a detriment to the City having control over development. Councilman Blonigen felt that a sunset provision should be considered if the property is rezoned before a replat is given approval. After further discussion, motion was made by Fran Fair, seconded by Bill Fair to direct the City staff to include on the Comprehensive Zoning Map public hearing scheduled for January 13 the proposed zoning of a portion of the Meadows as R-3 prior to preliminary plat approval. Voting in favor was Fran Fair, Bill Fair, Arve Grimsmo. Voting in the opposition: Dan Blonigen. 8. Consideration of Setting a Date for a Special Meeting for the Express Purpose of Adopting a Resolution Granting Final Approval to the Issuance of Industrial Revenue Bonds - Applicant, Raindance Properties. Motion was made by Bill Fair, seconded by Blonigen, and unanimously carried to set a special meeting of the City Council for 7:45 a.m., December 17, for the purpose of granting final approval for the issuance of Industrial Revenue Bonds for Raindance Properties. 9. Consideration of Bills to Date for the Month of December. Motion was made by Blonigen, seconded by Bill Fair, and unanimously carried to approve the bills for the month of December as presented. 10. Consideration of Sign Variance - Burger King Corporation. Mr. Greg Dolphin, owner of Burger King in Monticello, requested the following three variances relating to their pylon sign. 1. Requested a variance of 56 sq. ft. to allow for a 16 x 16 ft. sign. 2. Requested a variance to increase the height to 75 ft. which would require a variance of 43 ft. 3. Requested a variance to allow the erection of a prohibited sign - a lighted message board consisting of 225 sq. ft. Council Minutes - 12/9/85 In regards to the first issue of sign height, Mr. Dolphin noted that due to the Burger King location, the Highway 25 overpass on I-94 obstructs the view of his sign at the present time. Mr. Dolphin requested the height be increased to 75 feet from the present 50 -foot height to allow for better exposure on the freeway, which would be approximately the same height as surrounding establishments such as Perkins, Country Kitchen, McDonalds, and Wendy's. It was noted by City staff that establishments such as the Silver Fox Motel, the Oakwood Inn Motel, and other restaurants were granted height variances; and it would appear that 75 feet would not be unreasonable in this case. Council members Bill Fair and Fran Fair noted that the bridge does obstruct the view of the Burger King sign and both agreed that the City should treat Burger King the same as the others located in the general area. Mr. Dolphin noted that with the increased sign height to 75 feet, their present 144 sq. ft. sign would seem very small; and the only larger sign that is available is a 16 x 16 or 256 sq. ft., thus requiring a 56 sq. ft. variance. A request was also made by Mr. Dolphin to erect a 225 sq. ft. lighted message board on the pylon sign that would be used to advertise both for Burger King and provide messages on community events, etc. A presentation on the type of sign requested was presented to the Council; but it was noted by the City Administrator that the City's Ordinances presently do not allow any type of lighted message board, and this type of sign is strictly prohibited by City Ordinances. After further review by the Council on the three variance requests, motion was made by Bill Fair, seconded by Dan Blonigen, and unanimously carried to grant two variances to Burger King to allow the sign height to be increased to 75 feet and to allow the placement of a 16 x 16 (256 sq. ft.) sign, but not to allow the message board. Rick Wolfstel er Assistant Administrator -5-