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City Council Minutes 08-02-2011 SpecialMINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL /PLANNING COMMISSION Tuesday, August 2, 2011— 5:00 P.M. Mississippi Room, Monticello Community Center Council Present: Clint Herbst, Glen Posusta, Tom Perrault, Lloyd Hilgart Absent: Brian Stumpf Planning Commission Present: Charlotte Gabler, Brad Fyle, Rod Dragsten, Barry Voight Absent: Bill Sparks Staff: Angela Schumann, Steve Grittman, Jeff O'Neill 1. Call to Order The meeting was called to order by Mayor Herbst at 5 p.m. 2. Special Meeting /Workshop — Purpose Rod Dragsten introduced the topic as a review of a concept plan for Homestead Multi - Family Development Corporation requested by Mike Schneider. 3. Review of Homestead Multi - Family Concept Plan — Mike Schneider Angela Schumann introduced the discussion and outlined the land use and zoning designation and noted that no land use was designated in the 2008 Comp Plan. She also noted that the current land is undeveloped and lies in Monticello Township. She asked Mike Schneider to comment. Mr. Schneider explained that previously the land was not developable due to its location next to the freeway on -ramp. Since that road no longer serves as an entrance to the freeway, he is looking at possible uses to develop the land. He feels that the best use at this time would be multi - family housing and some commercial. Currently, the market is not supportive of single family housing but people are looking for higher end rental housing. He would propose high end multi -level housing rental units with below ground parking beneath the building. He would also place a community center building between the apartments as an amenity to the renters. Clint Herbst expressed a concern about the location adjacent to the freeway. Mr. Schneider commented that there are a number of places in the Twin Cities area where apartment buildings, including high end, are located right along the freeway. Clint Herbst also expressed a concern with being presented a concept plan which receives temporary approval from the City. After the developer completes his studies, he returns with a completely different concept which does not meet the standards originally planned. Clint Herbst does not want this to occur with this project. Minutes of Joint City Council /Planning Commission Special Meeting — August 2, 2011 Page 1 Mr. Schneider stated that he has preliminary approval for financing this project with the plans as presented. He would anticipate constructing one building first. He stated that he continually gets phone calls from people looking for rental units so he is sure this would fill a need in the community. He is also working on a similar project in Big Lake, which may be partly financed through a TIF district. Rod Dragsten asked if this would be market rent or subsidized. Mr. Schneider stated this would be market rent. He also noted that the demand is great for family rental housing, especially three bedroom apartments. This is part of the reason that he would propose placing a community building between the two apartment buildings. Steve Grittman asked what market ranges were shown by the studies that Schneider had done. Mr. Schneider stated the range showed $900 to $1800 per month. Rod Dragsten noted that, in his work as an appraiser, there is a great demand for three bedroom apartments and often waiting lists for those units. Charlotte Gabler noted that this land serves as an entrance to the City from the east and feels that it is important that it be situated in an attractive manner. Jeff O'Neill asked Schneider what he would do to make the project an attractive entrance to the community. Mr. Schneider commented that the townhomes that he built at the west end of town should serve as an example of what they could expect on the east end; they are nicely laid out with green space surrounding each set of units. Barry Voight commented that there are a lot of trees on the proposed site and he would hope that the building plans would preserve as many trees as possible when the site is developed. That would also help preserve the value of the property and keep it more attractive. Jeff O'Neill spoke briefly about the townhomes across the freeway in Sunset Ponds and asked Ron Hackenmueller to comment on the appearance of the townhomes along the freeway in Sunset Ponds. Ron noted that they had cleaned it up and made improvements since the new management took over. However, those townhomes are not considered high -end. Mr. Schneider suggested that the location along the freeway should not impact the ability to rent the units. His townhomes at the west end are located right along the freeway and he has not had issues with selling those units. They are also soundproofed so the freeway noise does not generate complaints. Brad Fyle asked about the impact of Ditch 33 on the land site and whether there would be an issue with the township. Glen Posusta explained that the problems should be rectified since the City redid the outlet for Meadow Oaks and Briar Oakes which resolved some drainage issues. Jeff O'Neill noted that the site would have to be annexed according to the agreement between the City and the Township. Minutes of Joint City Council /Planning Commission Special Meeting— August 2, 2011 Page 2 Steve Grittman explained that the comparison between properties in the Twin Cities and Monticello and proximity to the freeway is probably not entirely relative. From studies that have been done, high -end rental units are generally more desirable if located further from the freeway. Clint Herbst stated that this would be a risk that Mr. Schneider would have to undertake as part of the project if he proceeds. Glen Posusta stated that he would like to see as many trees preserved as possible and feels this would also make it more attractive. Angela Schumann explained that this project would have to abide by the zoning ordinance in relation to the sections on Tree Preservation. Angela Schumann summarized that it sounds like this land might be amenable to residential development. There might be some concerns about density. Mr. Schneider stated that he is looking at a maximum of 96 units for this project. Jeff O'Neill and Angela Schumann explained that one of the first things that would be needed would be a survey showing the trees to be removed and preserved within the campus. Mr. Schneider asked for an explanation of whether it is better to remove trees first and then approach the City with plans or the best approach for this. Clint Herbst explained that it might be best to look at where they want to site the building and then look at where trees are located within that site. The developer might find it preferable to switch the building locations to preserve more trees. Angela Schumann noted that it is usually preferable to preserve trees in clumps as they seem to survive better when left grouped. Mr. Schneider also noted that the type of trees might also make a difference if some are better quality than others. He has done some clearing on the property to remove some of the dead trees and undergrowth. Angela Schumann went on the explained some of the next steps, noting that he would need to meet with staff and Planning Commission to develop a preliminary plat and development plan. These things need to be in place before they can start the annexation proceedings. Lloyd Hilgart commented that as he read through the agenda report, he was not sure that this project would be a good idea. As he thought it over, he did not feel the site would be good for commercial purposes. He described an example of a project in Rogers that looks very attractive, has some nice amenities and overlooks Highway 101. He would envision something like that for a high -end housing project. Tom Perrault asked about sewer and water capability in that area. Bruce Westby reported to Angela Schumann that sanitary sewer is available, a watermain would have to looped through the site from Meadow Oak development, and storm water would have to be accommodated on the site with ponding. Jeff O'Neill asked about the old County right -of -way at the end of CSAH 75 and whether anything had been decided on that. Angela.Sehumann did not have any information at this time. Clint Herbst suggested that might possibly serve as an area for a storm water pond. Minutes of Joint City Council /Planning Commission Special Meeting— August 2, 2011 Page 3 Mr. Schneider stated that he sees this property as a destination site between Fargo and the Twin Cities. He feels that it would be a desirable place for people to locate. 4. Adiournment TOM PERRAULT MOVED TO ADJOURN THE SPECIAL MEETING AT 5:47 P.M. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 4 -0. Recorder: Catherine M. Shuman e4W Approved: September 12, 2011 Attest: Cit d ' trator Minutes of Joint City Council /Planning Commission Special Meeting — August 2, 2011 Page 4