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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. ~