12-06-2004 CC MIN
MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 6, 2004
Members Present:
Mayor Klinzing, Councilmembers Dietz, Kuester, Motin, and Tveite
Members Absent:
None
Staff Present:
City Administrator Pat Klaers, Finance and Administrative Services
Director Lori J ohman, Director of Planning 'Michele McPherson, City
Engineer Terry Maurer, Senior Planner Scott Harlicker, Director of
Economic Development Catherine Mehelich, City Attorney Peter Beck,
and Recording Secretary Jessica Miller
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 12/06/2004 Agenda
City Administrator Pat Klaers added the following items:
4.0. Open 'Mike
8.2. Stereo Photos
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER KUESTER TO APPROVE THE AGENDA AS AMENDED.
MOTION CARRIED 5-0.
3. Consider Consent Agenda
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER TVEITE TO APPROVE THE FOLLOWING CONSENT
AGENDA:
3.1. COUNCIL MINUTES
· 11/08/04
· 11/15/04
· 11/22/04
3.2. CHECK REGISTER
3.3. AUTHORIZATION TO PURCHASE SNOW PUSH BLADE
3.4. CONSIDER RESOLUTION 04-95 ACKNOWLEDGING MONETARY
CONTRIBUTIONS TO THE ELK RivER FIRE DEPARTMENT FROM
ELK RIVER LIONS CLUB
3.5. CONSIDER MASSAGE THERAPIST LICENSE FOR DAWN NIETERS
3.6. CONSIDER MASSAGE THERAPIST LICENSE FOR DONNELLE
SCHAUST
3.7. CONSIDER ANNUAL RENEWAL OF LICENSES
· KENNEL
City Council lV1inutes
December 6, 2004
Page 2
· TOBACCO
· MASSAGE/ESTABLISHMENT
· MECHANICAL AMUSEMENT
MOTION CARRIED 5-0.
4.0. Open "tvlike
No one was present for Open Nlike.
4.1. Consider Adoption of 2004-2007 Economic Development Strategic Plan
Director of Economic Development Catherine Mehelich explained that the Economic
Development Strategic Plan provides a framework for the Council and Commissions to
work within and focuses staff energies on those priority areas important to the economic
health of the city. Ms. Mehelich provided some background information on the Strategic
Plan. Ms. Mehelich outlined the priority goals and strategies identified in the 2004-2007
Economic Development Strategic Plan. Ms. Mehelich noted that two new issues that were
added to this plan are transportation and commercial development. She stated that the plan
was adopted by the Economic Development Authority at its October meeting and the
Housing and Redevelopment Authority at its November meeting. She stated that staff is
requesting formal approval of the plan from the City Council.
Mayor Klinzing indicated that discussion had taken place regarding having staff's
participation in Energy City included in the Economic Development Strategic Plan and
stated that she would like to see this included in the plan. Ms. Mehelich stated the continued
participation of the Economic Development staff, Economic Development Authority, and
City Council in Energy City would be most appropriate to add under the Industrial
Development.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER KUESTER TO ADOPT THE 2004-2007 ECONOMIC
DEVELOPMENT STRATEGIC PLAN WITH THE ADDITION AS NOTED
ABOVE. MOTION CARRIED 5-0.
4.2.
4.2.A.
Downtown Revitalization Project
Consider Development Agreement and Interfund Load Resolutions
Director of Economic Development Catherine Mehelich provided background on the
history of the Downtown Revitalization Project.
Ms. Mehelich indicated that MetroPlains has accepted the development agreement that was
drafted based on the key points identified by city staff, the HRA, and the City Council. Ms.
Mehelich introduced Mary Ippel of Briggs and Morgan, the attorney who drafted the
development agreement for the city. Ms. Ippel summarized the final agreement as follows as
it relates to the key points identified.
Linkagebetlveen the ]ackJon pr~iect and the B1u..f pr~iect
Ms. Ippel stated that the HRA and City Council have directed staff and the developer that
the completion of both the Jackson and Bluff"projects together are desired elements of the
Downtown Revitalization Project. She also stated that the project meets the city's goals and
objectives and that the development agreement provides for the City Council to formally
City Council Minutes
December 6, 2004
Page 3
approve the construction plans and parking plans prior to any construction. Ms. Ippel
indicated that the development agreement includes several activities that must be completed
by MetroPlains prior to any construction on the Jackson Block property, including
MetroPlains' payment of the King Avenue parking lot improvement.
Amount of Tax Increment Financing AJJiJtance
Ms. Ippel stated that the development agreement defines "Pledged Tax Increment" that the
developer would receive up to 89% of the actual tax increment through a pay-as-you-go
note for the purpose of reimbursing MetroPlains for TIP eligible costs. Ms. Ippel also stated
that MetroPlains will receive 6% of the annual tax increment for the purpose of reimbursing
the cost of the King Avenue parking lot and the city will receive the remaining 5% for
reimbursement of administrative costs of the project. She noted that there is a "look back"
procedure outlined in the agreement in order to ensure that the developer does not receive
any more assistance (via TIP, SACj\'I/ AC, and Jackson Land) than is necessary to make the
project financially feasible. Ms. Ippel stated that in addition to the TIP, it is estimated that
the city will be providing Jackson Land, SAC, and WAC as additional forms of assistance.
SAC! rV:4C / Park Dedication / Building Permit Feu
Ms. Ippel indicated that the city is approving a reduction of the entire SAC and \'1/ AC fees in
the development agreement. In return, the city will capture 100% of any annual inflation
over the 25-year TIP district period and at 4% interest rate to reimburse itself for the SAC,
WAC, and Jackson Land. She noted that the park dedication fee paid by the developer will
be dedicated to park improvements in the downtown area.
Cost qlthe -'mhon Block
Ms. Ippel stated that the development agreement identifies $500,000 as the estimated value
of the Jackson Block property. She indicated that the property will be sold to MetroPlains
for $1.00. She stated that the inflation that the city may capture over the life of the TIP
district will reimburse the city for the Jackson land.
IJJuam'e orGO Tax Increment Bonds
Ms. Ippel stated that the development agreement outlines a number of conditions that
would need to be met in order for the developer to request the city to issue tax increment
bonds to refund the tax revenue note.
Pun-haJe olBlu,if Blo.'k Pr~Derties
Ms. Ippel explained that the sale of the Jackson Block property is conditioned, among other
things, upon the developer having fee title to all of the Bluff Block property. The
development agreement outlines the conditions and process that the city would undertake at
its own discretion and under limited circumstances for the acquisition of the Bluff Block
property through the use of its powers of eminent domain. She noted that staff does not
currently anticipate that this will be necessary.
Tvpe qlBlulfBlock Pr~ied
Ms. Ippel stated that there is no discussion of this in the final development agreement due
to the fact that MetroPlains has decided the Bluff Block condos and commercial units will
be for-sale only.
Ms. Mehelich indicated that the HRA recommends that the City Council approve the
resolution authorizing execution of a development agreement. She noted that the
development agreement identifies the subsidy for each component of the project and the
exemptions from the Business Subsidy Act, with the exception of the Jackson Block
City Council ]\1inutes
December 6, 2004
Page 4
Commercial Subsidy. Ms. Mehelich stated that the HRA also recommends that the City
Council approve the three resolutions approving the terms of internal loans in connection
with Downtown Phase I Tax Increment Financing DistrictNo. 22 for SAC, WAC, and
Land.
Mayor Klinzing questioned what the time frame for payback is on the SAC and WAC and
Jackson land..
Ms. Mehelich stated that it would depend on inflation. Sid Inman of Ehlers and Associates
stated that the payback time frame will depend on the final market value of the project but
indicated that an estimate based on 3% inflation would take 15 years and at 1 % inflation
would take 20 years. He noted that this time frame includes the entire payback for all three
components.
Mayor Klinzing questioned in what order the payback will be completed. Mr. Inman stated
that staff has directed that SAC,W AC, and finally land.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 04-96 AUTHORIZING
EXECUTION OF A DEVELOPMENT AGREEMENT WITH THE MINOR
MODIFICATIONS AS PRESENTED WITH WAGE AND JOB GOALS SET AT
ZERO. MOTION CARRIED 5-0.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER MOTIN TO ADOPT RESOLUTION 04-97 APPROVING
THE TERMS OF INTERNAL LOAN IN CONNECTION WITH DOWNTOWN
PHASE 1 TAX INCREMENT FINANCING DISTRICT NO. 22 (SAC). MOTION
CARRIED 5-0.
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 04-98 APPROVING
THE TERMS OF INTERNAL LOAN IN CONNECTION WITH DOWNTOWN
PHASE 1 TAX INCREMENT FINANCING DISTRICT NO. 22 (WAC). MOTION
CARRIED 5-0.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 04-99 APPROVING
THE TERMS OF INTERNAL LOAN IN CONNECTION WITH DOWNTOWN
PHASE 1 TAX INCREMENT FINANCING DISTRICT NO. 22 (LAND).
MOTION CARRIED 5-0.
4.2.B. Consider Resolution Authorizing Eminent Domain and Acquisition of Real Property for the
Downtown Revitalization Project and to Clear Title to an Existing Street - lackson Block
Director of Economic Development Catherine Mehelich stated that it has been determined
by staff and the city attorney that the city has free and clear title to approxllnately half of the
Jackson Block. Ms. Mehelich stated that the balance is still dedicated right-of-way and before
the city can vacate that right-of-way, the city needs to acquire the reversionary interests of .
the adjoining properties.
Ms. Mehelich stated that quit claim deeds have been acquired from The Bank of Elk River,
Keith Holme (Kemper Drug property), and Frank Galli (Diamond City Bread property) in
City Council J'v1inutes
December 6, 2004
Page 5
order to accomplish the vacation of these rights-of-way. She stated that Ed Barder (Olde
Main Eatery) and Steve Johnson (Antiques property) have indicated that they would sign as
well but they are waiting for minor revisions to be made to the quit claim deeds. Ms.
Mehelich indicated that the title company has directed the city to acquire the reversionary
interests from the dedicators of the original plat and the only way to do tl1is is to proceed
with eminent domain for the strip along the north side of Highway 10. She noted that the
Barder,Johnson, and Lenzmeier (former Houlton building), properties have also been
included as a potential for needing to condemn in case staff is not able to collect the quit
claim deeds from these property owners.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER MOTIN TO ADOPT RESOLUTION 04-100
AUTHORIZING EMINENT DOMAIN AND ACQUISITION OF REAL
PROPERTY IN ACCORDANCE WITH MINN. STAT. 9117.042 FOR THE
DOWNTOWN PHASE 1 TAX INCREMENT FINANCING DISTRICT NO. 22
AND TO CLEAR TITLE TO AN EXISTING CITY STREET. MOTION
CARRIED 5-0.
4.2.C. Discuss Right Turn Lane to Parrish Avenue from Main Street
Director of Planning Michele McPherson stated that one of the items noted in the
discussion of the Bluff Block preliminary plat was the transportation challenges on Main
Street, specifically in regards to a right turn lane from Main Street onto Parrish Avenue.
Councilmember Dietz indicated that concerns were raised regarding transportation in this
area when the median was constmcted near the Main Street/Parrish Avenue intersection.
Councilmember Dietz stated that he would like Council direction on whether or not they
would like to see a right turn lane from Main Street onto Parrish or if they would rather
keep the current parking stalls.
City Engineer Terry Maurer stated that the downtown improvement and this turn lane are
two separate issues. He stated that the city owns enough right-of-way to construct the turn
lane at any time. Mr. Maurer suggested waiting until after the downtown project is complete.
Mr. Maurer noted that the turn lane would be short and would only allow vehicles to turn
when the traffic on Main Street is not backed up from other conditions such as trains or the
traffic light at Highway 10.
Councilmember Kuester inquired if this would help the emergency fire vehicles traveling to
Otsego. Mr. Maurer stated that he spoke to Fire Chid Bmce West and he indicated that
most emergency vehicles going to Otsego would take Highway 10 to Highway 101 due to
the unpredictability of the downtown traffic congestion.
Councilmember Kuester stated that one of the goals with the downtown project was to
make it more pedestrian friendly and that she believes this turn lane would be contrary to
this goal.
Councilmember Tveite stated that he agrees with Councilmember Kuester that the right
turn lane would make the pedestrian issues worse. He also stated that this portion of
downtown may need the parking stalls that would be removed with the constmction of a
turn lane. Councilmember Tveite indicated that he would like to hold off on the turn lane
until after the downtown project is completed.
City Council Minutes
December 6, 2004
Page 6
It was the consensus of the Council to revisit the Main Street/Parrish Avenue right turn lane
issue after the completion of the downtown revitalization project.
5.1. Request by Orrin Thompson Homes for Rezoning of Miske Property from R1d (Single
Family Residential) to PUD (planned Unit Development). Public Heating - Case No. ZC
04-06
5.2. Request by Orrin Thompson Homes for Conditional Use Permit for Residential Planned
Unit Development (Miske Property). Public Hearing Case No. CU 04-15
5.3. Request by Orrin Thompson Homes for Preliminary Plat Approval of River Park (Miske
Property) Public Hearing Case No. P 04-09
Senior Planner Scott Harlicker submitted the staff reporr. Mr. Harlicker reviewed the
proposal by Orrin Thompson Homes for a 489 unit planned unit development located
south of Twin Lakes Road, east of Sunset Ridge, and west of Cleveland Street. Mr. Harlicker
reviewed the layout of the elementary school, flre station and well house, single-family home
and townhome elevations and locations, streets, sidewalks, wetlands, density, and park land.
Mr. Harlicker noted that the application has been revised since the last time this item was
reviewed by the City Council.
Mayor Klinzing opened the public hearing.
Greg Lien, 19147 Lincoln Street - Stated that he is frustrated because he doesn't feel like
anything has been done to address the concerns regarding the infrastructure not being able
to handle this development or the safety concerns expressed by the Sunset Ridge property
owners. He stated that he would like the City Council to keep the property zoned for single
family homes.
Carol Turner, 18776 Cleveland Street - Spoke regarding her traffic observations in the
vicinity of County Road 40 and County Road 12. She stated that trafflc from Trott Brook,
Kliever Lake Fields, and Hidden Creek in her mind were not significant and that most of tl1e
traffic was coming from outside of Elk River, speciflcally Burns Township and Ramsey.
Peggy King, 18913 Twin Lakes Road - Stated that the city should be sensible in their
development planning and that this property should remain as single family homes. She
stated that there are many times that she cannot get out of her driveway onto Twin Lakes
Road due to the trafflc volume and stated that this type of development would add to the
problem.
Richard Hocking, attorney representing property owners east of County Road 40 -
Stated that some of the property owners in this area may be able to develop their property in
the future but they are concerned with the County Road 40 improvements. He stated that he
believes the property owners petitioned the Council a few months ago for sewer and water
to be extended east of County Road 40. Mr. Hocking questioned where the Council stands
on the petition for tl1e extension of the Urban Service District.
Ron Bratlie, Director of Special Projects for Elk River Area Schools - Indicated that
the River Park site is acceptable but that it will be a tight flt for a schooL He stated that he
would prefer the site to the north for an elementary school and would like the Council to
consider this site.
City Council NIinutes
December 6, 2004
Page 7
Ed Dulak, Dellwood MN, owns property north and east of County Road 40 - Stated
that he has offered free acreage for a school and would be willing to work together and help
pay for the County Road 40 improvements if the Urban Service District was extended to the
north and east side of County Road 40.
Howard Johnson, 19184 Lincoln Street - Felt that the roads in this area are not set up to
handle this type of project. He stated that he does not feel that a street connection between
Sunset Ridge and this development is necessary and that if necessary, an emergency break-
down barrier would be sufficient.
Ken Nathe - 19080 Lincoln Street & owner of 101 Market in Otsego - Questioned why
the Council is approving these large developments in Elk River when the infrastructure is
unable to support them. He also questioned why Otsego is getting interchanges to relieve
their traffic congestion and why Elk River is not interested in having interchanges. He also
questioned how the School District will be able to build another school when the bond
referendum was voted down.
Pat Voltzke, 19172 Kennedy Street - Stated that transportation is a huge issue for the City
of Elk River and she does not feel that County Road 13 can handle another development.
She stated that the city needs to create more east to west connections before allowing any
further development.
Jeff Werner, 19575 Cleveland Street - Stated that he is all for development but that all of
the property owners who want to develop should be allowed to do so and that the area
should be redesigned to include those who want to be included.
Patty Crepeau -19160 Lincoln Street - Indicated that this development is inconsistent
with other developments on Lincoln and Kennedy Street. She stated that this is the wrong
place and wrong time for townhomes.
Ron Middelstadt, 19681 Twin Lakes Road - Expressed his concerns with the volume of
traffic in this area.
Glen Ertel, 19075 Twin Lakes Road - Stated that he understands that development is
going to happen but it is the type of development that is of concern. He stated that the area
is zoned as RID single family development for a reason and asked that the Council keep it
that way.
Mayor Klinzing closed the public hearing.
Two additional people .wished to speak on this issue. Mayor Klinzing stated that the public
hearing has been closed but that she will allow them to speak.
Lee Johnson, with Orrin Thompson Homes - Stated that he believes the development
being presented is a win-win situation. He indicated that the Environmental Assessment
Worksheet (EA W) that was completed on the River Park project determined that this
development will not be a determining factor to increased congestion on County Road 13.
He stated that the developer has been modifying the plans trying to address the concerns of
the city and the citizens.
City Council J\finutes
December 6, 2004
Page 8
Linda Schmeling, 18753 Cleveland Street - Stated that development is going to happen
and she would like to see everyone work together. She would also like the area designed so
that all property owners that wish to develop are able to.
Mayor Klinzing reiterated that she is not in favor of any more townhomes. She stated that
the comments made regarding transportation issues are good but from what she is hearing,
most of the issues are with County Roads. She encouraged the citizens that have
transportation issues to express these issues at the County Board meetings. Mayor Klinzing
indicated that the city is working with the county to get them to address the County Road
issues. Mayor Klinzing also noted that some of the transportation issues discussed tonight
deal with State Highway 169, which the State makes the improvement decisions for. She
indicated that the city has asked MnDot to go to the next level of study for Highway 169,
which includes the review of overpasses. She stated that the reason that Otsego is getting
the overpasses is not because Elk River does not want them but because MnDot is phasing
in the overpasses beginning south and working north.
Councilmember Motin stated that the City Council has in front of them a letter dated
December 2,2004 from Dr. Alan Jenson, Independent School District #728
Superintendent, which states that the Elk River Area Schools is in full support of the
proposed River Park development as presented and that the proposed school site will allow
numerous opportunities for access, views, playing fields, and security.
Councilmember Motin acknowledged that the development has been improved significantly
from the original proposal but stated that there are still too many concerns. He stated that
the street connection to Sunset Ridge would not be safe. He also stated that this area cannot
handle this added transportation volume at this time.Councilmember Motin stated that he is
not in support of the R1d zoning in this area because it is a safety issue and that the Council
should place a one-year moratorium for development south of County Road 13 and north
of County Road 12.
Councilmember Tveite complimented the developer for working with the city, Council, and
school on this development. He stated that he has some traffic concerns but he will be
supporting the proposal.
Councilmember Dietz questioned why Dr. Bratlie stated that the Miske property would not
be a good location for the school site when the Council has a letter in front of tl1em from
Superintendent Dr. Alan Jensen stating that the School District is in full support of the
proposal. He noted that by having the land donated for the school, it is saving the taxpayers
approximately $1 million and that the money for the new school was already approved in a
previous bond referendum.
NIt. Bratlie stated that the opinions he expressed were his personal opinions.
Councilmember Dietz stated that Council has approved the Comprehensive Plan which did
not extend the Urban Service District east of County Road 40 and that issue has nothing to
do with this development proposal. He stated that if those citizens wish to have sewer and
water extended they can petition the City Council in the future.
Councilmember Dietz also stated that he doesn't feel that development in the city should
cease because of the transportation issues. He indicated that he is in support of the
development as presented and noted that he would be comfortable with an emergency
break-away barrier between this development and the Sunset Ridge development.
City Council .Minutes
December 6, 2004
Page 9
Councilmember Kuester stated that the city has worked with the developer to address
citizen concerns. She stated that she believes that the city needs to provide a variety of
housing options for those who want to live in Elk River. Councilmember Kuester noted
that Elk River's rate of growth is the lowest in comparison to neighboring communities and
that there is going to be traffic but that we just need to fmd the most effective way to deal
with it. She stated that she understands the concerns of the citizens but believes this is one
of the best development packages that will be offered.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER DIETZ TO ADOPT ORDINANCE 04-20 AMENDING
THE CITY OF ELK RIVER ZONING MAP TO REZONE CERTAIN
PROPERTIES FROM RiD (SINGLE FAMILY RESIDENTIAL) TO PUD
(PLANNED UNIT DEVELOPMENT), CASE NO. ZC 04-06 BASED ON THE
FOLLOWING FINDINGS:
1. THE ZONING IS COMPATIBLE WITH THE UNDERLYING LAND
USE OF MEDIOUM DENSITY RESIDENTIAL.
2. THE PROPOSED USE IS CONSISTENT WITH THE ZONING
REQUESTED.
3. THE PROPOSED ZONING IS COMPATIBLE WITH ADJACENT USES
AND ZONING. .
MOTION CARRIED 3-2. Mayor Klinzing and Councilmember Motin opposed.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER DIETZ TO APPROVE THE CONDITIONAL USE
PERMIT FOR RIVER PARK WITH THE FOLLOWING CONDITIONS:
1. A DEVELOPERS AGREEMENT BE PREPARED AND EXECUTED
OUTLINING THE TERMS AND CONDITIONS OF THE PLAT
APPROVAL PRIOR TO RELEASING THE PLAT FOR RECORDING.
2. A PLANNED UNIT DEVELOPMENT AGREEMENT BE PREPARED AND
EXECUTED PRIOR TO RELEASING THE PLAT FOR RECORDING.
3. SURFACE WATER MANAGEMENT FEE BE PAID IN THE AMOUNT
REQUIRED BY THE CITY AT THE TIME OF FINAL PLAT PRIOR TO
RELEASING THE PLAT FOR RECORDING.
4. A SEALCOA1' FEE IN THE AMOUNT TO BE DETERMINED BY THE
CITY ENGINEER BE PAID PRIOR TO RELEASING THE PLAT FOR
RECORDING.
5. WATER ACCESSIBILTY FEES IN THE AMOUNT DETERMINED BY
THE CITY BE PAID TO ELK RIVER MUNICIPAL UTILITIES PRIOR TO
RELEASING THE PLAT FOR RECORDING.
City COllllcilIvIinutes
December 6, 2004
Page 10
6. THE SITE BE ASSESSED FOR TRUNK SEWER AND WATER AT THE 2004
RATE OF $6,955.21 AND THIS REQUIREMENT BE INCLUDED IN THE
DEVELOPERS AGREEMENT.
7. A LETTER OF CREDIT BE PROVIDED TO THE CITY IN THE AMOUNT
OF 100% OF THE COSTS OF THE PUBLIC IMPROVEMENTS.
8. UPON COMPLETING ALL OF THE IMPROVEMENTS AND HAVING
THEM ACCEPTED BY THE CITY, A WARRANTY BOND IN THE
AMOUNT OF 25% OF THE IMPROVEMENT COSTS SHALL BE
SUBMITTED TO THE CITY FOR THE PERIOD OF ONE YEAR.
9. ALL COMMENTS CONTAINED IN BUILDING AND ENVIRONMENTAL
ADMINISTRATOR'S MEMO DATED AUGUST 10, 2004 SHALL BE
ADDRESSED.
10. THE LETTER OF CREDIT SHALL COVER WETLAND MITIGATION.
DRAINAGE EASEMENTS SHALL BE IN PLACE OVER THE WETLAND
AND THE WETLAND MITIGATION AREAS.
11. RESTRICTIVE COVENANTS SHALL BE RECORDED ON THE
WETLAND AND THE WETLAND MITIGATION AREAS.
12. A THREE YEAR MONITORING REPORT ON THE WETLAND
MITIGATION IS REQUIRED.
13. THE CITY ENGINEER'S COMMENTS BE INCORPORATED INTO THE
PLANS.
14. THE STREET NAMES SHALL BE REVISED AS INDICATED.
15. STREET LIGHTS BE INSTALLED AS REQUIRED BY ELK RIVER
UTILITIES
16. A GRADING AND EROSION CONTROL PLAN BE APPROVED BY THE
CITY ENGINEER PRIOR TO THE ISSUANCE OF BUILDING PERMITS.
17. A DEVELOPMENT PLAN BE APPROVED BY THE CITY ENGINEER
PRIOR TO THE ISSUANCE OF BUILDING PERMITS.
18. ALL GRADING BE CERTIFIED PRIOR TO THE ISSUANCE OF
BUILDING PERMITS.
19. ALL MAILBOXES BE CLUSTERED.
20. A TREE PRESERVATION PLAN BE APPROVED PRIOR TO RELEASING
THE PLAT FOR RECORDING.
21. ANY TREES OFF SITE OR ON SITE, NEAR THE LIMIT OF GRADING
THAT ARE TO BE PRESERVED, SHALL BE FENCED WITH A SNOW
FENCE AT THE DRIP LINE TO PREVENT GRADING, COMPACTION,
City Council NIinutes
December 6, 2004
Page 11
OR STORAGE OF EQUIPMENT, DEBRIS OR MATERIALS. STAFF
SHALL INSPECT THE FENCING PRIOR TO GRADING COMMENCING.
22. ANY ITEM OR CONDITION FOUND THAT INDICATES THE SITE IS
LIKELY TO YIELD INFORMATION IMPORTANT TO PRE-HISTORY OR
HISTORY SHALL BE REPORTED TO THE CITY IMMEDIATELY.
FURTHER, THE CITY RESERVES THE RIGHT TO STOP WORK
AUTHORIZED IN ITS APPROVAL UNTIL THE SITE IS
APPROPRIATELY INVESTIGATED AND WORK IS AUTHORIZED.
23. PARK DEDICATION REQUIREMENTS SHALL BE MET WITH A
COMBINATION OF LAND AND CASH BASED ON THE AREA OF THE
DEVELOPMENT MINUS THE 22.5 ACRES FOR THE WELL/FIRE
STATION/SCHOOL SITE. THE DEVELOPER SHALL NOT RECEIVE
PARK DEDICATION CREDIT FOR SLOPES 4:1 OR GREATER,
WETLANDS OR STORMWATER PONDS LOCATED IN THE PARKS.
24. THE LANDSCAPE PLAN SHALL BE AMENDED TO INCLUDE
ADDITIONAL SCREENING ALONG COUNTY ROADS 13 AND 40.
ADDITIONAL TREES AND SCREENING SHALL BE PROVIDED ALONG
THE REAR YARDS OF SINGLE FAMILY LOTS THAT ARE ADJACENT
TO TOWNHOUSES OR PRIVATE STREETS. STREET TREES SHALL BE
PLANTED ALONG ALL STREETS AT A MINIMUM OF 30 FEET ON
CENTER.
25. EACH PUBLIC STREET WILL HAVE A SIDEWALK ON AT LEAST ONE
SIDE, THE MAIN NORTH/SOUTH STREET WILL HAVE SIDEWALKS
ON BOTH SIDES AND THE STREET IN THE NORTHEAST CORNER,
WILL HAVE SIDEWALKS ON BOTH SIDES. SIDEWALKS THAT WILL BE
MAINTAINED BY THE CITY SHALL BE 6 FEET IN WIDTH. A
PEDESTRIAN FACILITY SHALL BE INSTALLED ALONG THE WEST
SIDE OF COUNTY ROAD 40.
26. THE TOWNHOUSES DESIGN AND EXTERIOR ELEVATION SHALL AT
A MINIMUM COMPLY WITH THE DESIGN STANDARDS OF THE R3
ZONING DISTRICT.
27. THE STREET CONNECTION TO SUNSET RIDGE BE INCLUDED ON
THE PLAT.
28. THE FOUR SINGLE FAMILY LOTS ON THE WEST SIDE OF THE
SOUTH PARK BE MOVED.
29. THE STREET CONNECTING THE MAIN STREET THROUGH THE
PLAT TO THE CONNECTION TO SUNSET RIDGE BE CHANGED TO A
CUL DE SAC, AS ILLUSTRATED ON THE DRAWING DATED 12/2/04.
MOTION CARRIED 3-2. Mayor Klinzing and Councilmember Motin opposed.
City Council NIinutes
December 6, 2004
Page 12
Duane Peterson, Parks and Recreation Commission Chair - Stated that the Parks and
Recreation Commission's recommendation was for park dedication to be based on land
after the 22.5 acres is subtracted from the total acreage. They also recommended that in
regards to park dedication that four lots to the south be removed making that park
approximately 5 acres; 11 acres of woods be added to make a total of 16 acres with a
minimum 40-foot trail corridor that connects from the south park to the school; and for the
balance of the park dedication to be paid in cash.
Councilmember Dietz qu~stioned if the decision regarding park dedication fees needed to be
made now. He stated that he would like to wait and talk to the school and see the plans for
the open land. City Attorney Peter Beck recommended that if the Council is undecided how
to handle the park dedication, they may want to table the approval of the subdivision until a
decision is made.
Councilmember Dietz questioned if staff could meet with the School District and developer
and provide a recommendation to the Council. City Administrator Pat Klaers indicated that
he and staff could meet with the developer and school officials.
Councilmember Motin questioned why park dedication credit would be given to the
developer for an incentive when they are getting a higher density project. He stated that this
is in essence "double-dipping".
Councilmember Kuester stated that she believes the Parks and Recreation Commission's
concern to be if a precedent is being established and she questioned if there are legalities
about giving park dedication credit towards the school land.
City Attorney Peter Beck stated that he is unsure but noted that if park dedication credit is
given for the school land then it would not be accurate to call the entire 22 acres a gift to the
school.
MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY
COUNCILMEMBER TVEITE TO APPROVE THE PRELIMINARY PLAT FOR
RIVER PARK BASED ON THE CONDITIONS OUTLINED IN THE
CONDITIONAL USE PERMIT AFPROV AL AND THE FOLLOWING
ADDITIONAL CONDITION:
1. AN EMERGENCY BREAK-AWAY BARRIER BE PLACED IN THE
CONNECTION BETWEEN THE RIVER PARK DEVELOPMENT AND
THE SUNSET RIDGE DEVELOPMENT.
MOTION CARRIED 3-2. Mayor Klinzing and Councilmember Motin opposed.
6.1. Consider Request from St. Andrews Church for Issuance of Tax Exempt Bonds
Finance and Administrative Services Director Lori Johnson stated that the Church of St.
Andrew has asked the city to consider issuing up to $1,500,000 of tax exempt bonds for the
expansion of St. Andrew's school. Ms. Johnson eXplained that tax exempt bonds may only
be issued for certain uses and may not be used to fund certain religious facilities. She stated
that staff is only looking for Council direction on whether or not staff should proceed with
this request.
City Council ivIinutes
December 6, 2004
Page 13
Thomas Kaempffer, Parish Business Administrator of the Church of St. Andrew -
Thanked the City Council for hearing the church's request. Mr. Kaempffer reviewed the
proposed expansion areas.
Ms. Johnson stated that with City Council approval, staff will work with the city's Bond
Counsel to review this request to determine the project's eligibility and that if the project is
deemed to be eligible, this issue will be brought back to the Council for formal authorization
to issue the bonds.
Ms. Johnson indicated that since the city does not anticipate issuing in excess of $10 million
of debt in 2005, this does not jeopardize the city's bank qualified status. She stated that the
city has only exceeded $10 million once. Ms. Johnson noted that the Church of St. Andrew
would be responsible for paying additional interest costs incurred by the city if the city
exceeds $10 million of debt. The church will also be required to pay all of the city's costs for
issuing the bond.
It was the consensus of the Council for staff to proceed with the bond issuance process for
the Church of St. Andrew.
7. Truth in Taxation Public Hearing
Mayor Klinzing eXplained that the purpose of this Truth in Taxation hearing is to discuss
the general city budget and general tax information and that it is not a time to discuss
individual property values and taxes. She stated that if individuals have questions or
concerns regarding their property values, they should attend the Board of Review meeting in
the spring or contact Sherburne County.
City Administrator Pat Klaers stated that notice of the Truth in Taxation hearing was
published in the Star News, in the city's newsletter, on the city's website, cable channel 12,
and the county mailed individual notices out to property owners. NIt. Klaers then
summarized the budget process.
Finance and Administrative Services Director Lori Johnson stated that the Council
approved the maximum tax levy of $7,623,985. Ms. Johnson reviewed a breakdown of how
the funds will be used. Ms. Johnson compared the tax levy amount from 2003 through 2005
and stated that the debt amounts have remained fairly consistent. She indicated that the city
tax rate is decreasing slightly but that the actual number will change depending on Net Tax
Capacity adjustments made by the county.
Mr. Klaers reviewed general fund revenues and general fund expenditures. Mr. Klaers noted
that it would be appropriate to compare the 2005 budget to the 2003 approved budget prior
to LGA cuts.
Mr. Klaers stated that the city is looking at adding seven full-time and two part-time
positions to the 2005 budget. He stated that this year is an opportunity for departments to
"catch up" from the cuts made in 2003.
Ms. Johnson reviewed the special revenue funds and enterprise funds.
Mayor Klinzing opened the public hearing.
There being no one present to speak, Mayor Klinzing closed the public hearing.
City Council 1tIinutes
December 6, 2004
Page 14
Mayor IUinzing stated that the Council will be adopting the 2005 budget and tax levy at the
December 13, 2004 City Council meeting.
8.1. Set Council \'(1orksession Agendas
City Administrator Pat Klaers reviewed the draft Council worksession agendas for
December and January.
Councilmember Kuester requested that discussion take place on HR function at an
upcoming worksession.
Councilmember Motin stated that he would like to discuss the issue relating to use of city
property for private use. He questioned the use of the Emporium for Christmas Tree sales
and a billboard.
The human resource topic will be added to the February worksession agenda.
8.2. Stereo Photos
City Administrator Pat Klaers indicated that this item will be discussed at a future meeting
when City Engineer Terry Maurer is in attendance.
9. Staff Updates
There were no staff updates.
10. Adjournment
There being no further business, Mayor Klinzing adjourned the meeting of the Elk River
City Council at 9:45 p.m.
Minutes prepared by Jessica Miller.
~