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07-06-2004 CC MINI~IEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE CITY OF ELK RIVER TUESDAY, JULY 6, 2004 Members Present: Mayor Klinzing, Councilmembers Dietz, Kuester, and Tveite Members Absent: Councilmember Motin Staff Present: City Administrator Pat Klaers, City, Engineer Terry Maurer, Director of Planning Michele McPherson, Director of Economic Development Catherine Mehelich, and City Clerk Joan Schrnidt 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:30 p.m. by Mayor Klinzing. 2. Consider Council Agenda Added to the agenda: Discussion of transient merchant 1/cense under Other Business and purchase of candy for parades under Staff Updates. MOVED BY COUNCILMEMBER TVEIVE AND SECONDED BY COUNCILMEMBER KUESTER TO .APPROVE THE AGENDA AS AMENDED. MOTION CARRIED 4-0. 3. Consider Consent Agenda MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILEMBER KUESTER TO APPROVE THE FOLLOWING CONSENT AGENDA WITH MODIFICATION OF MINUTES OF JUNE 21, 2004: 3.1 3.2. 3.4. 3.6. Council Minutes · 6/14/04 · 6/21/04 (to be modified per staff memo) Check Register New Massage Establishment License for John Joseph Salon effective upon the building located at 18150 Zane Street, Elk River, receiving final occupancy permit from the building and fire departments. Massage Therapist License for Emily Gehrke contingent upon a successful backg-round check. Massage Establishment and Massage Therapist License for Lanelle 1,2ruse contingent upon a successful background check and the building meeting all requirements of the city code. Request by Sherbume County Agricultural Society, Inc. for Excluded Bingo License. MOTION CARRIED 4-0. City Council Niinutes Jul}, 6, 2004 4. Open Mike Page 2 Mark Broten, 12935 302"d Avenue, addressed the Council in regards to his request for a conditional use permit for auto sales that is on tonight's council agenda for consideration. He stated that at the last meeting he and his partner didn't realize they could speak about the issue. He wanted the Council to 'know that he is happy to put up "no par-king" signs along Dodge Street; that the display pads would not always be in use; that landscaping would be done; that all issues of concern would be addressed; and that he was hoping the Council would reconsider his request. Mayor Klmzing closed the Open Mike and moved onto Item 5.1 5.1 Request by Northern Auto Services. Inc. for Conditional Use Permit/PUD Agreement to Allow Auto Sales, Case No. CU 04-12 (Continued from May 17 and June 21, 2004-Public Hearing Closed.) Director of Planning Michele McPherson stated that Council considered this application at d~eir May 17 and June 21 meetings. She stated that at the June 21't Council meeting, Council directed staff to draft f'mdings of denial of Northern Auto Services request for a conditional use permit to allow the display and sale of 5 vehicles. Ms. McPherson noted the revised plan presented to the Council at the June 21 meeting included five pads rather than seven and the existing landscaped areas remained. Councilmember Tveite stated that his initial concern was the sight lines for cars coming around the comer but that with the revised plan he is satisfied that there will not be a problem. Mayor Klinzing stated that her initial concern was the landscaping but that she is comfortable w/th approving the revised plan because the existing landscaping is changing very litde. MOVED BY COUNCILMEMBER KUESTER AND SECONDED BY COUNCILMEMBER TVEITE TO APPROVE A CONDITIONAL USE PERMIT FOR AUTO SALES AS REQUESTED BY NORTHERN AUTO SERVICE, INC. WITH THE FOLLOWING CONDITIONS: THE NUMBER OF CARS FOR SALE ON THIS SITE SHALL BE LIMITED TO 5. VEHICLES SHALL BE STREET OPERABLE AND IN AESTHETICALLY PLEASING CONDITION. 2. NO DIRECT ACCESS FROM THE PAD TO A PUBLIC STREET IS ALLOWED. 3. COMPLY WITH STATE OF MINNESOTA LICENSING REQUIREMENTS. 4. THE PADS SHALL BE SETBACK A MINIMUM OF 20 FEET FROM THE PROPERTY LINES. 5. BUMPERS SHALL BE INSTALLED AT THE FRONT OF THE PADS. 6. THE FRONT OF THE PADS SHALL BE LANDSCAPED. City Council M. mutes July 6, 2004 Page 3 THE AREA BEHIND THE PADS THAT WILL BE USED FOR ACCESS SHALL BE SURFACED WITH A MATERIAL THAT PROVIDES A STABLE DRMNG SURFACE AND ALLOWS GRASS TO GROW. o ANY LANDSCAPING THAT WILL BE REMOVED SHALL BE REPLACED SOMEWHERE ON SITE. SHOULD ANY OF THE EVERGREEN TREES SOUTH OF THE BUILDING BE REMOVED, THEY SHALL ALSO BE REPLACED. MOTION CARRIED 4-0. 4.1 Mark Olson-Representafive House District 16B - 2004 Le~slative Update District 16B State Representative Mark Olson reviewed the following 2004 legislative session issues: LGA distribution; the General Bonding Bill as it relates to transportation issues and the Northstar Commuter Rail Project and the bus HOV lane on Highway 10; and the Help America Vote Act (ti_AVA). 5.2. Provide Direction for Western Triangle Property. Use Director of Planning Michele McPherson stated that Dennis Chuba and Rich Kincannon, owners of the western triangle area, have requested Council direction regarding future use of their property located south of Highway 10 and at the west edge of the city. The owners met with the Planning Commission with several concept plan?; one of wkich was an extension of the townhomes in the West Oaks subdivision. Staff asks that the Council provide direction, wkich can be forwarded to the owners regarding the preferred use of the site. Possible uses could include townhomes, multifamily (apartments), or commercial. Mayor Klinzing stated that a key question for tkis property was whether or not there was a service drive. She stated that if there is no service drive, the property would have to be accessed through the West Oaks development. Mayor Klinzing questioned if there has been any interest in establishing a service drive. City Engineer Terry Maurer stated that Mn/Dot contacted staff about a year and a half ago and fl~ey are willing to consider a local initiative project to help fund the frontage road through the property in exchange for the closure of an access directly off of the Highway. It was the consensus of the Council that use of this property should be for townhomes. 6.1. Consider Resolution Calling for a Public Hearing on the Proposed Adoption of a Modification of the Development Program for Development District No. 1 and the Establishment of Downtown Phase I Tax Increment Financing District No. 22 Director of Economic Development Catherine Mehelich stated that at its June 30, 2004 special meeting, the HRA adopted a resolution requesting the City Council to call for a public hearing on the proposed establishment of a Tax Increment Financing (TIF) district for the MetroPlains downtown revitalization project. Ms. Mehelich presented the schedule of events outlining the statutory process for the establishment of the TIF district. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 04-55 CALLING FOR A PUBLIC HEARING (FOR SEPTEMBER 20, 2004) BY THE CITY COUNCIL City Council Minutes Page 4 July 6, 2004 ON THE PROPOSED ADOPTION OF A MODIFICATION OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. i AND THE ESTABLISHMENT OF DOWNTOWN PHASE 1 TAX INCREMENT FINANCING DISTRICT NO. 22 (A REDEVELOPMENT DISTRICT). MOTION CARRIED 4-0. 6.2. Consider Approval of Assignment o f Tax Rebates (Abatements) from Badger Ventures, LLC to the Bank of Elk River Director of Economic Development Catherine Mehelich stated that Badger Ventures, LLC has requested that the city authorize an assignment of the Tax Rebate (Abatement) payments to The Bank of Elk River. She stated that written approval from the city is required according to the Tax Abatement and Business Subsidy Agreement between the city and Badger Ventures, LLC. Ms. Mehehch stated that the city and count3' are both participating in this tax abatement for a total of $145,556 provided over a ten-year term. Ms, MeheLich noted that an assignment of tax abatement and tax increment financing is quite common among other cities and development projects. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER KUESTER TO AUTHORIZE AN ASSIGNMENT OF THE TAX REBATE (ABATEMENT) PAYMENTS TO THE BANK OF ELK RIVER AS REQUESTED BY BADGER VENTURES, LLC. MOTION CARRIED 4-0. 6.3. Discussion of Advisory Board and Commission Pohcy City Clerk Joan Schmidt stated that during the worksession meetings with consultant Jim Brimeyer, the need for the Council and commissions to have better communication with each other was ac -knowledged and the vision identified to address the situation was: · Training for boards/commissions (roles/responsibilities, expectations, legal issues) · Have boards/commissions ~ve options rather than recommendations to the Council · Have expectations and roles outlhaed before appointment to board/commission is made · Set standard questions for board/commission interviews. Ms. Schmidt stated that staff assembled a proposed Advisory Board and Commission Policy and handbook that staff believes meets the vision that was identified by the Council. Ms. Schmidt reviewed discussion points from the proposed policy as outlined in her staff report and asked for direction from the Council as to how they wish to proceed. The Council discussed the proposed policy and suggested changes to be made. Ms. Schmidt will bring back the £mal draft at the August 2, 2004 Council meeting. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER TVEITE TO APPROVE THE BOARDS AND COMMISSIONS HANDBOOK SUBJECT TO THE POLICY COMING BACK FOR FINAL APPROVAL. MOTION CARRIED 4-0. City Council l'vfinutes July 6, 2004 Page 5 6.4. Review Letter Requesting Street Improvement (221't Avenue) City En~neer Terry. Maurer stated that a letter had been received from Dave Steiner, President of the Ridges of Rice Lake Homeowners' Association, requesting the ciu' pave the remaining portion of 221,'t Avenue, which is approximately a half-mile of gravel road between the main entrance to Ridges of Rice Lake going easterly to approximately the abandoned railroad trail. He explained the background of this development area and outlined staff comments as presented in his staff report. Mr. Maurer asked for direction from the Council on how to react to the request from the Ridges of Rice Lake Homeowner's Association. It was the consensus of the Council to have Mr. Maurer provide them with some additional background information such as a cost estimate and a map of the affected property owners along with their front footage. Mr. Maurer stated that he will contact Mr. Steiner and inform him that the Council has asked for additional information which will be provided to them at a future Council meeting. 6.5. Discuss Worksession Agendas ([u/3, 12 ¢?,4ugust ~) City Administrator Pat Klaers reviewed the proposed July 12 and the August 9 worksession agendas with the Council. It was discussed that timeframes should be set on discussion items and that if certain items need further discussion, they could be continued to a future worksession. 7. Other Business City Clerk Joan Schmidt stated that Tom Marshall of Rapid Sport Marine Center inquired if they could set up a tent for outdoor boat sales on Coborn's property in July as they had on June 25 through June 27, 2004. She stated that their general planning permit and transient merchant license were still valid but that when these were issued it was for the event in June. It was the consensus of the Council to allow this activity for a week in July. 8. Staff Updates City Administrator Pat Klaers indicated that there is an issue regarding public purpose expenditures and the purchase of candy for parades. He stated that Council approval is needed to purchase candy to hand out at the County Fair parade in July and the Homecoming parade in October. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER TVEITE TO AUTHORIZE CITY FUNDS TO BE USED FOR THE PURCHASE OF CANDY FOR THE COUNTY FAIR PARADE AND FOR THE HOMECOMING PARADE. MOTION CARRIED 4-0. Mayor Klinzing noted that she has been designated as Grand Marshall of the fair parade this year. City' Council Nfinutes Page 6 July 6, 2004 Mr. Klaers stated that with regards to the combining of the parks and the recreation department into one, staff contacted many other surrounding communities inquiring if they call their department "Park and Recreation" or "Parks and Recreation". He stated that a vast majority of them use Parks and Recreation and this is what staff would like to use if the Council approves. It was the consensus of the Council to call the department "Parks and Recreation". Mr. Klaers noted that staff is wot-king on reviewing and changing tides and positions for those involved in the change such as the Street/Parks Department. 9. Adjournment There being no further business, Mayor Klinzing adjourned the meeting of the Elk River City Council at 9:15 p.m. joan Schrnidt City Clerk