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City Council Minutes 09-26-1994MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, September 26, 1994 - 7 p.m. Members Present: Brad Fyle, Clint Herbst, Shirley Anderson, Warren Smith, Dan Blonigen Members Absent: None 2. Auuroval of minutes of the regular meeting held September 12, 1994. Mayor Fyle requested that item #7 on page 4, first paragraph, be amended to include detail on what alternative #3 states regarding street width requirements. After discussion, a motion was made by Warren Smith and seconded by Dan Blonigen to approve the minutes of September 12, 1994, as amended. Motion carried unanimously. 3. Consideration of adding additional agenda items. No agenda items were requested to be added to the meeting. 4. Citizens comments/ etitions re nests and cam laints. Dave Gilles, owner of the residence at 212 East River Street, explained that the driveway of this home adjoins the driveway of the neighboring property at 206 East River Street. There have been problems with the neighbor's car being parked directly on the property line, which has created difficulties with snowplowing. Gilles noted he would like to install a divider in the driveway to separate the two and asked for Council's input on how he can solve this problem. After discussion, it was the consensus of Council that staff should meet with Gilles and obtain the necessary information, review and define the issues, and bring this item back for Council review at a subsequent meeting. 5. Consideration of a eal of Plannin Commission denial of variance to the front and setback re uirement. A licant General Rental. Assistant Administrator O'Neill reviewed the variance request appeal by Ron Chihos of General Rental to build a 50' x 56' cold storage building on the west side of his existing 40' x 60' building. The building as proposed would intrude 12 ft into the 30-ft setback requirement, leaving only 1$ ft from the Sandberg Road right-of--way. Page 1 Council Minutes - 9/26/94 O'Neill went on to note that the Planning Commission denied this request at their September 6 meeting with the finding that no unique hardship or circumstance existed. He also noted that letters have been received from Dr. Erlandson, Hart Clinic, and Minnesota Land Partnerships, all stating opposition to this variance request. Ron Chihos, owner of General Rental, explained that he would like to store items inside rather than stacking them higher outside. He also noted that the new building would reduce the amount of snow to remove, and since customers stay only a short time, there is not much congestion in the area. Chihos added that he is willing to install additional parking as required. After discussion, a motion was made by Dan Blonigen and seconded by Warren Smith to deny the variance request appeal. Motion carried unanimously. Reason for denial: No hardship has been found, as a smaller building could be constructed within ordinance requirements, and approval of the variance would set a precedent that would impair the intent of the ordinance. 6. Consideration of amendments to the official zonin ma than 'n zonin district desi ations from a combination of R-1 and A "cultural to a combination of R-1 R-2 B-3 and PZM zonin district desi ations. A licant Robert Krautbauer Rick Murra and Joe Abbat. AND 7. Consideration of an amendment to Cha ter 13 of the Monticello Zonin Ordinance which would establish restaurants taverns cafes tea roams and off-sale li uor as a conditional use in a B-3 zone if located within 300 ft of a residential district. A licant Monticello Plannin Commissian. AND 8. Consideration of a roval of relimina lat of the River Mill subdivision. Applicant, Robert Krautbauer, Rick Murray,. Joe Abbot. AND 9. Consideration of canoe t a roval to utilize tax increment financin in conjunction with reclamation of avel it and develo went of the River Mill residential subdivision. A licant Rick Murra Residential Develo ment Inc. Assistant Administrator O'Neill reviewed the two ordinance amendment requests and noted that they are proposed in conjunction with development of the River Mill subdivision. The current zoning of the property within city limits is R-1 (single family residential), and the property located in Monticello Township is zoned Agricultural. Proposed is a zoning map amendment changing the R-1 and Agricultural areas to a combination of R-1 (single family residential), R-2 (single and two-family}, B-3 (highway business), and PZM (performance zone mixed) zoning districts, which would be contingent on annexation of the township area to the city. Page 2 Council Minutes - 9/26/94 O'Neill went on to explain that the second ordinance amendment Council is asked to consider would add a provision allowing restaurants/taverns as a conditional use in a B-3 zone if located within 3D0 ft of a residential district. Currently, taverns are allowed as a permitted use at any location in the B-3 zone. The reason for the amendment is to provide additional site control over Hawks Bar, which, when it is annexed to the city under the B-3 zoning district designation, will be located near the proposed residential area. Councilmember Herbst asked if the ordinance amendment allowing a tavern in the B-3 zone required a distance of 300 ft from the property or a residential building. Assistant Administrator O'Neill stated that the tavern use must be 300 ft from the property to be a permitted use, and would need to obtain a conditional use permit if it is located within 300 ft. Rick Murray, developer of the River Mill subdivision, reported that Joe Abbot, owner of Hawks Bar, recently told Murray that he would like to move the existing Hawks Bar kitchen and add on to the building in a northerly direction; however, Abbot would like to know if a parking lot would be allowed in the PZM zone. Assistant Administrator O'Neill responded by stating that he would talk to the City Planner and get back to Murray regarding parking lot development in a PZM zone. Assistant Administrator O'Neill went on to review the zoning plan and proposed preliminary plat of the River Mill subdivision. A PZM zone is proposed to surround the B-3 area where Hawks Bar is located. Forty-eight (48) twin home lots are proposed for the R-2 area surrounding the PZM zone, and 70 single family (R-1) dwellings are proposed to be constructed next to the R-2 zone and adjacent to the gravel pit area. Due to extreme grade separation, Outlot D is proposed to be developed when the Norell property develops. Street access to Outlot D will be gained through the Norell property and will remain undevelopable until the Norell property is developed. O'Neill noted that a study completed by the developer and reviewed by the City Engineer indicates that it is acceptable to provide full access to CSAH 75 as proposed; however, a median will need to be installed to limit access to right turn in and right turn out at such time that the frontage road (Hart Boulevard) is extended westerly to connect the River Mill area to County Road 39, or the median would be installed if five or more accidents occur at this location in one year. Assistant Administrator O'Neill also informed Council that Lot 6, Block 2, would need a variance or the plat would have to be adjusted to meet conformity, as the plan as proposed shows only 25 ft of right-of--way frontage, and the ordinance requires 54 ft. of right-of--way frontage. It was Page 3 Council Minutes - 9/26/94 noted by the developer that this lot contains 22,000 sq ft, which is almost the size of 2 lots. He stated that he could adjust the road design to meet code and not lose any lots; however, doing so would require building a longer road, which would result in the home pad areas shifting into the wooded hillside area. He preferred to preserve the wooded hillside if possible. O'Neill then reviewed the proposed park area for the River Mill subdivision. The park as proposed by the developer is a total of 7 acres, with almost 2 acres being relatively flat. There is a slight grade change separating the park from homes on the north. A storm water pond is located on the east side of the park but is not included in the park dedication requirement. A trail system is also proposed to lead from the cul-de-sac area in the R-2 zone to the park area and to the Norell property. O'Neill noted that the Parks Commission reviewed the park plan and recommended that some of the sloped trail area be combined with abutting lots, as the trail system would not require the amount of unusable sloped area as proposed. Parks Commission also recommended that Lots 18-211ocated north of the park be converted to park area to allow for 510 ft of right-of--way access to the park. They felt this change would reduce the sense of the park being "private." This configuration would also provide land area that would allow development of both a soccer and baseball field. Councilmember Smith stated that he didn't believe that converting the four residential lots to park area would change the perception of the park from a neighborhood park only to a city park available to all residents. Councilmember Anderson noted that a sign should be installed stating "Monticello City Park," which would help make it known that everyone is welcome to use the park. Ray Erickson, resident at 401 Riverview Drive, stated his concerns regarding the number of driveways this development will create on County Road 39, who will pay for installation of larger sewer and water lines if necessary, and the fact that one of the proposed roads accessing County Road 39 is directly across from his residence, which will result in headlights aimed directly at his house. Erickson was informed that only two streets will access County Road 39, the developer would be required to pay any additional cost relating to larger sewer and water lines, and that the proposed roadway across from Erickson's residence was designed to line up with the lot line in order to avoid headlights being aimed directly at homes. At this point, it was the consensus of Council to discuss item #9 of the agenda prior to voting on items 6-8. Page 4 Council Minutes - 9/26/94 Administrator Wolfsteller explained that in conjunction with the River Mill residential preliminary plat approval, Council is being asked to consider providing conceptual approval for the use of tax increment financing to assist in the soil correction cost for reclamation of the gravel pit area prior to the developer continuing with the project. He noted that the developer has estimated the additional grading cost associated with the gravel pit at an additional $132,000; however, the previous landowner (Krautbauer) has agreed to lower his price of the land by $30,000 to cover some of the general grading cost, which would bring the total TIF request to $102,000. Wolfsteller went on to note that the requested tax increment assistance would be apay-as-you-go plan whereby payments to the developer would only occur if the homes are actually built; however, Council was also informed that tax increment assistance to the developer will result in a loss of City HACA aid equal to approximately 25°10 of TIF assistance given the developer. In this case, the general fund of the City would lose an anticipated $25,000 in state aid. Wolfsteller also informed Council that this information has been presented to the HRA, and the HRA has given preliminary approval for use of TIF to help defray the additional cost of reclamation of the gravel pit. Developer Rick Murray noted that correcting the soils in the gravel pit area would be an amenity For the city rather than a distraction. He stated that Krautbauer had offered to correct the area but agreed instead to a $30,000 reduction in the purchase price. The developer would then correct the gravel pit area. Murray noted that the purchase price of the land is approximately $4,200/acre. Councilmembers Herbst and Blonigen stated that they didn't agree with using TIF for this type of project, as it was their view that Krautbauer is obligated by the permit issued by Wright County to return the area to usable land after excavation is complete. It was also noted that the City is not obligated to annex the gravel pit area until it has been restored. Murray responded by saying any grading done to create a 3-1 slope at the gravel pit per the restoration plan will actually add to the eventual cost of developing the plat for residential use. Mayor Fyle noted that after reviewing the information provided with the agenda, he felt the development, including reclamation of the gravel pit, would be good for the city. He noted that the park and homes constructed in the gravel pit area would improve the image of the city from the freeway and would generate tax revenue, and it could cost the City more if reclamation of the pit occurs later. Page 5 Council Minutes - 9/26/94 Public Works Director John Simola reported that he supports TIF assistance to regrade the gravel pit and noted that the City was involved with this type of project when the area at the end of Louring Lane was developed. TIF was used to install utilities and regrade the area so that apartments could be constructed. Simola also stated that there would be an approximate $26,000 loss to the developer if Lots 18-21 are given for additional park land as requested by the Parks Commission, and the City would lose approximately $25,000 if the soils correction TIF district is established. James Casserly, Economic Development Consultant representing the developer, noted that the soils correction district was created to assist with substantial filling or grading of an area with unusual terrain, which is what this project entails. City Engineer Bret Weiss noted that it may not be easy to develop only the property located in the city limits, as soils from other areas of the site would be used to correct the gravel pit area. Councilmember Anderson asked the developer to explain what year each phase would be developed. Rick Murray responded by saying that the first phase, which would include 30 single family homes, the access onto CSAH 75, and 48 twinhomes, would begin in November 1994 and be completed in early 1996. The second phase would include continuation of the road system, completion of the R-2 area, and continued construction of single family homes. Grading would begin in late 1995 with utilities construction in 1996, and construction would continue into 1997. Rick Sathre, engineer for the developer, added that much or all of the park grading would be done with phase I but wouldn't include street access to the park. Councilmember Anderson asked if any restrictions could be placed on the quality of the housing constructed in this development. Assistant Administrator O'Neill noted that in order to obtain TIF pay-as-you-go funds, the developer must build homes to apre-determined value. O'Neill also noted that the City now has a trunk access fee for city services, which would more than likely be charged to the township parcel once it is annexed. If this property is eligible for this fee at $1,250/acre, it would amount to approximately $42,000. After further discussion, Mayor Fyle asked for motions to be made on each of items 6-9 separately. Page 6 Council Minutes - 9/6/94 ITEM #6: A motion was made by Shirley Anderson and seconded by Warren Smith to approve an ordinance amendment to the official zoning map changing zoning district designations as requested from a combination of R-1 and Agricultural to a combination of R-1, R-2, B-3, and PZM zoning district designations. Voting in favor: Shirley Anderson, Warren Smith, Brad Fyle, Dan Blonigen. Opposed: Clint Herbst. Motion is based on the finding that the rezoning is consistent with the comprehensive plan. SEE ORDINANCE AMENDMENT NO. 257. ITEM #7: A motion was made by Shirley Anderson and seconded by Warren Smith to approve an ordinance amendment to Chapter 13 which would establish restaurants, cafes, tea rooms, taverns, and off-sale liquor as a conditional use in a B-3 zone if located within 300 ft of a residential district. Motion is based on the finding that there is a demonstrated need for the ordinance amendment which provides land use controls over taverns/restaurants located in close proximity to residential areas. Voting in favor: Shirley Anderson, Warren Smith, Brad Fyle, Clint Herbst. Opposed: Dan Blonigen. SEE ORDINANCE AMENDMENT NO. 258. ITEM #8: A motion was made by Warren Smith and seconded by Shirley Anderson to approve the preliminary plat of the River Mill subdivision contingent on the cul-de-sac lots being brought into conformance with the ordinance or the developer obtaining a variance, contingent on the developer redesigning the park area by shifting Lots 18-21 in Block 2 to the east of the park area as proposed by the developer in order to allow right-of--way frontage for the park, and contingent on approval of the utilities plan by the City Engineer. Voting in favor: Warren Smith, Shirley Anderson, Brad Fyle, Clint Herbst. Opposed: Dan Blonigen. Blonigen stated that he was opposed to the density of the R-2 area proposed in the preliminary plat. ITEM #9: A motion was made by Clint Herbst and seconded by Dan Blonigen to deny the request for tax increment financing in conjunction with reclamation of the gravel pit and development of the River Mill residential subdivision. It was Herbst and Blonigen's view that that restoration of the gravel pit should be negotiated between the owner and the developer. Voting in favor of the motion: Clint Herbst, Dan Blonigen. Opposed: Warren Smith, Shirley Anderson, Brad Fyle. Motion did not pass. Councilmember Smith noted that the long-term benefit to the City of developing the entire project is significant. Cnuncilmember Anderson stated that she would vote to approve tax increment financing for this project, as there appear to be more advantages than disadvantages to development of the entire area. Page 7 Council Minutes - 9/26/94 After discussion, a motion was made by Warren Smith and seconded by Shirley Anderson to approve the request for tax increment financing in conjunction with reclamation of the gravel pit and development of the River Mill residential subdivision. Voting in favor: Warren Smith, Shirley Anderson, Brad Fyle. Opposed: Clint Herbst, Dan Blonigen. 10. onsi eratio n of an offer, on property in the Oakwood Industrial.. Park_2nd Addition - H-Window. Administrator Wolfsteller reviewed the offer recently received from Miley Gjertsen for the purchase of a 2.3-acre lot (Lot 4) in the Oakwood Industrial Park 2nd Addition for $36,000. He noted that this is one of six lots owned by the City along the cul-de-sac off of Dundas Road between Standard Iron and H-Window Company. At the last meeting held on September 12, Council agreed to accept the offer but agreed to give H-Window Company 10 days to exercise the right of first refusal on this lot, which would expire on September 26. Wolfsteller went on to note that he had a telephone conversation with Steve Lemme, President of H-Window Company, who indicated that their main interest is in Lots 1-3, and they would like to have some type of commitment from the City to continue holding these lots for H-Window's future expansion. Wolfsteller asked Council for direction on whether the City should continue holding these lots for the H-Window Company or whether the City should begin to actively market the lots far sale. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to accept the offer of $36,000 from Miley Gjertsen for Lot 4 in the Oakwood Industrial Park 2nd Addition, and to authorize staff to draft a new right of first refiisal agreement for Council consideration in the next few weeks. Motion carried unanimously. 11. Consideration of renewal of contract with PSG Inc. for o eration of the WWTP. John Simola, Public Works Director, reported that he and the City Administrator have met several times with Professional Services Graup, Inc., to negotiate a new 5~year contract for operation of the City's wastewater treatment plant. The new contract amount is proposed at $395,113, an increase of $].0,585. He also noted that Paul Weingarden, City Attorney, has reviewed the proposed contract and submitted comments for staff review. All items of concern noted in the City Attorney's letter have been taken care of with the exception of item #3 relating to uninsurable events and item #5 relating to PSG self-insuring for workman's compensation and liability. Staff will need to cansult with Weingarden to review these two items of concern in order to make any necessary changes. Page 8 Council Minutes - 9/26/94 Mayor Fyle noted that he recently toured the wastewater treatment facility and found it to be a well-run operation. He noted it is possible the City could operate the facility slightly cheaper, but there is no guarantee that this would be the case. Councilmember Herbst added that since the City is discussing expanding the wastewater treatment facility, it would be wise to maintain the current operation during this transition. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve the 5-year contract at the proposed amount of $395,113, contingent on staff first consulting with the City Attorney regarding his items of concern. Mayor Fyle noted that once the treatment plant has been expanded, it may make sense to consider having City employees manage operations of the plant if it could be done less expensively than PSG. Motion carried unanimously. 12. Consideration of proclamation declarin~_Qctaber 17-25 1994,. as Monticello Manufacturin Week. After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith to declare the week of October 17-25, 1994, as Monticello Manufacturing Week for the city of Monticello. Motion carried unanimously. 13. Consideration of ado tin a resolution roclaimin October 7 1994 as L Smith Dav. In January of this year, it was recommended by Councilmember Anderson that one of the days during Riverfest should be proclaimed as Lynn Smith Day in honor of his campaign against smoking that ultimately went world wide. Council approved proclaiming a day as selected by the Riverfest Committee to be Lynn Smith Day in Monticello. Councilmember Anderson reported that she received a call from Lynn Smith requesting that the Council not adopt a resolution proclaiming October 7, 1994, as Lynn Smith Day, as he felt it might be more appropriate to recognize January 7, 1999, which would be the 25th anniversary of his campaign against smoking. After discussion, it was the consensus of Council to not proclaim October 7, 1994, as Lynn Smith Day and wait to recognize his efforts in 1999. Page 9 Council Minutes - 9/26/94 14. ansi eration of bills for the„mon ,,,, ~~ ,,, th.of„September, 1994. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve the bills for the month of September, 1994, as presented. Motion carried unanimously. 15. Other matters. A. Council reviewed the staff update on the Cardinal Hills pathway system. It was the consensus that any cost to acquire easements as required under the development agreement should be paid by the developer. There being no further business, the meeting was adjourned. r Doty Office Manager 1 [] Page 10