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02-17-1994 CC MIN e MEETING THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL THURSDAY, FEBRUARY 17,1994 Members Present: Mayor Duitsman, Councilmembers Dietz, Holmgren and Farber Members Absent: Council member Scheel Staff Present: Pat Klaers; City Administrator, William Rubin; EDA Executive Director, Steven Ach; City Planner, Debbie Kleckner; Recording Secretary 1. Call Meetino To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 7:00 p.m. by Mayor Duitsman. 2. Consider 2117/94 City Council Aoenda Item 2.0. - Open Mike, was added to the February 17, 1994, City Council agenda. e COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE FEBRUARY 17, 1994, CITY COUNCIL AGENDA AS AMENDED. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 2.0. Open Mike Linda Frederickson, representing the Ad-hoc Committee for Restoration of the Old Courthouse, requested the City Council to endorse their support for a grant application for $1.3 million. She stated that the Committee is not asking the City to write the grant or give financial support. County Commissioner Arne Engstrom stated that the Sherburne County Board voted to endorse the grant approximately 9 months ago. Commissioner Engstrom explained that it would be advantageous for City to also give the project its blessing. Linda Frederickson indicated that the grant application will be awarded in June and the funds will be released in September, 1994. She explained that twenty percent (20%) of the grant amount must be raised locally which would be approximately $200,000. She further explained that they will not receive funding unless the committee can document that the 20% will be there. e Elk River City Council Meeting February 17, 1994 Page 2 e MAYOR DUITSMAN MOVED TO SUPPORT THE GRANT APPLICATION FOR THE RESTORATION OF THE OLD COURTHOUSE WITH THE FOLLOWING CONDITIONS: (1) THERE WILL BE NO FUNDING BY THE CITY; AND, (2) THE CITY COUNCIL WILL HAVE AN OPPORTUNITY TO REVIEW THE GRANT APPLICATION BEFORE SUBMISSION. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4- O. 3.1 . Consider TIF Reimbursement Reauest from the Chuba Company (Main Street and Freeport Avenue Proiect) COUNCILMEMBER HOLMGREN MOVED TO APPROVE A TAX INCREMENT FINANCING (TIF) REIMBURSEMENT PAYMENT TO THE CHUBA COMPANY IN THE AMOUNT OF $24,161.82. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.1 . Ordinance Amendment For Accessory Structures - Public Hearina COUNCILMEMBER DIETZ MOVED TO TABLE THE ORDINANCE AMENDMENT FOR ACCESSORY STRUCTURES PUBLIC HEARING TO THE MARCH 21, 1994, CITY COUNCIL MEETING. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. e 4.2. Plant Place - Temporary Greenhouse City Planner Steve Ach presented the request for a temporary greenhouse in the County Market parking lot, 800 Freeport Avenue, from April 1 to July 1, 1994. COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE REQUEST BY PLANT PLACE INC.jNELSON NURSERY OF ZIMMERMAN, MINNESOTA, FOR A TEMPORARY GREENHOUSE IN THE COUNTY MARKING PARKING LOT, 800 FREEPORT AVENUE, FROM APRIL 1 TO JULY 1, 1994, WITH THE FOLLOWING CONDITIONS: 1. THE SALES LOT BE FENCED; 2. THE GREENHOUSE MUST BE KEPT IN GOOD CONDITION THROUGHOUT THE TIME IT IS ERECTED; 3. THE LOCATION OF THE GREENHOUSE BE CONSISTENT WITH THE SITE PLAN; AND, 4. THAT ONLY ONE ENTRY AND EXIT AREA BE ALLOWED ON EACH SIDE OF THE GREENHOUSE AND SALES LOT. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.3. Conditional Use Permit bv Schmitz-Kornovich - Public Hearing e City Planner Steve Ach introduced the request by Schmitz-Kornovich for a 68- unit apartment project as a residential P.U.D., located on 4 acres west of lions Park and north of the railroad tracks. Steve Ach explained that the project consists of an ilL" design building containing 1, 2 and 3-bedroom apartment Elk River City Council Meeting February 17, 1994 Page 3 e units. He noted that the plans include a free-standing garage, as well as 2 attached garages to the main building. He stated that this will provide at least one covered parking stall for each apartment unit as required by the ordinance. steve Ach explained that the density is approximately 17 units per acre. He stated that the Planning Commission and staff recommends approval of the request, with the conditions as outlined in his memo to the Mayor and City Council. Mayor Duitsman opened the public hearing. Lonnie Kornovich, developer of the proposed project, questioned Item #4 of the conditions regarding the improvements to the entrance drive. He stated that it was his understanding that the City would share in the cost of the driveway improvements. steve Ach noted that the area of concern is the curve of the driveway by Lions Park. He stated a portion of the corner may need reconstruction because of the unstable soils under the existing driveway. Robert Minton, Planning Commission Chairman, stated that the intention of Item #4 was to have the developer provide curb and gutter from the proposed project up to and around the corner , and make sure the driveway does not deteriorate from the apartment traffic. e Mayor Duitsman noted that the north-south portion of the road is in good condition and that the City's concern is the curbing and the east-west portion of the road. The City Planner stated that the conditions for approval specify that when the Babinski property to the west is developed, that a driveway from the subject property be extended to Proctor Avenue. This would provide an additional access for emergency service and also relief from additional traffic on School Street. Mayor Duitsman closed the public hearing. Council member Dietz expressed his concern regarding additional apartment construction, noting that 24% of Elk River population lives in apartments. He stated that he did not feel this helps our tax base and also makes the Police Department's job more difficult. COUNCILMEMBER FARBER MOVED TO APPROVE THE SCHMITZ-KORNOVICH REQUEST FOR A CONDITIONAL USE PERMIT, SUBJECT TO THE FOLLOWING CONDITIONS, INCLUDING AN AMENDMENT TO ITEM #4: 1. PLANS BE REVISED IN ACCORDANCE WITH TERRY DATED JANUARY 12, 1994. MAURER'S MEMO 2. ENTIRE PARKING AREA BE BOUNDED WITH B612 CONCRETE CURB AND GUTTER. e 3. LANDSCAPE MATERIAL HAVE THE MINIMUM SIZES: OVERSTORY TREES - 2" CAl. BALLED AND BURLAP Elk River City Council Meeting February 17,1994 Page 4 e CONIFERS - 6' HEIGHT BALLED AND BURLAP ORNAMENTAL TREES - 2" CAL. BALLED AND BURLAP SHRUBS - AS NOTED ON LANDSCAPE PLAN 4. DEVELOPER BE RESPONSIBLE TO MAKE NECESSARY IMPROVEMENTS AS DETERMINED BY THE CITY ENGINEER TO THE ENTRANCE DRIVE FROM THE SUBJECT PROPERTY TO THE POINT THE DRIVEWAY CURVES NORTH. 5. TWO DUMPSTERS BE PROVIDED ON SITE WITH ENCLOSURES CONSISTING OF A MASONRY MATERIAL MATCHING THE BUILDING. 6. PARKING AREA ON THE SOUTH END OF THE BUILDING BE REDESIGNED TO IMPROVE VEHICLE CIRCULATION. 7. FIFTEEN ADDITIONAL GARAGE STALLS NEED TO BE PROVIDED. 8. TEN (10) FOOT DRAINAGE AND UTILITY EASEMENT BE PROVIDED AROUND THE ENTIRE PERIMETER OF THE PROPERTY. 9. AN ON-SITE FIRE HYDRANT BE PROVIDED AND LOCATION APPROVED BY THE FIRE CHIEF PRIOR TO ISSUING A BUILDING PERMIT. 10. REVISED PLANS BE APPROVED BY THE CITY PRIOR TO ISSUING A BUILDING PERMIT. 11. THE DEVELOPER AGREE TO ENTERING INTO A CROSS ACCESS AGREEMENT WITH THE ADJACENT PROPERTY TO THE WEST FOR THE EXTENSION OF A DRIVEW A Y TO PROCTOR AVENUE. e 12. ALONG THE WEST ELEVATION OF THE BUILDING, EITHER A CONTINUATION OF BRICK OR THE ADDITION OF FOUNDATION SHRUBS BE PROVIDED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4- O. 4.4. Land Use Amendment by MaN Prochaska - Public Hearinq 4.5. Land Use Amendment by Country Ridqe Partnership - Public Hearinq Steve Ach, City Planner, introduced the requests as follows: Item 4.4. - Amend the Comprehensive Land Use Plan Map by changing approximately 20 acres from LI (Light Industrial) to HB (Highway Business). Item 4.5. - Amend the Comprehensive Land Use Plan Map by changing approximately 24 acres from LI (Light Industrial) to HB (Highway Business). Both requests affect approximately 45 acres at the southwest corner of Highway 10 and the Jopl::l Street alignment. e Steve Ach provided background information from the 1989 City Growth management Plan and the 1990 Focus Area Study regarding the designation of the LI (Light Industrial) land use designation and the PUD (Planned Unit Elk River City Council Meeting February 17,1994 Page 5 e Development) zoning for the area west of City Hall between Highway 10 and County Road 30. He explained that the business park concept for the area between Joplin Street and Waco Street included uses such as light manufacturing, offices, office-warehouse and office show room buildings. He further explained that approximately 26 acres of commercial property was identified to serve and support the business park and surrounding residential area. The City Planner explained that the Menards concept includes approximately 290,000 square feet of other commercial use on the 24 acre parcel, for a possible total of 400,000 - 450,000 square feet of buildings on the entire 45 acres.. The City Planner asked the City Council to consider the following: 1. The inventory of industrial/commercial property currently available in the City - (There is a substantial amount of commercial property vacant along Highway 169; however, the supply is running out of available industrial sites). 2. Concentration of commercial- (Comprehensive Plan calls for commercial property to be located in close proximity to the downtown area to give it support. Proposals for commercial development along Highway 169 up to 197th, and the corner of Main Street and 169, provides strong commercial opportunities). e 3. Business Park Task Force - (Parcels requested for land use change would be included in area proposed for business park; would affect viability of business park along the west Highway 10 corridor; industrial development would diversify the employment base). Steve Ach stated that staff has given the proposal a great deal of consideration and feels that Menards would be an attractive addition to Elk River. He further stated that the business park ordinance adopted last month would allow for some commercial development but not to the scale that Menards was proposing. Steve Ach indicated that the Planning Commission and staff have recommended denial of both requests, based on the five (5) stipulations listed in his memo to the Mayor and City Council. Mayor Duitsman opened the public hearing. Gary Colby, representative of Menards, stated that the developers would like to withdraw Agenda Item 4.4. in order to comply with the Focus Area Study. Gary Colby stated that Menards currently has 86 stores throughout the Midwest. Mr. Colby distributed photos of the proposed Menards facility, which would be similar to their facility in Pekin, Illinois. He stated the building proposed is much different than the usual type of Menards store. He further stated that the building would be approximately 144,000 square feet. including a 16,000 square foot warehouse. Mr. Colby further stated that the store would be constructed of steel and masonry, with a block exterior. e Mr. Colby indicated that the Focus Area Study designates 26 acres for commercial development and that they are proposing to develop 24 acres of Elk River City Council Meeting February 17,1994 Page 6 e commercial, concentrating it in one area. Mr. Colby also indicated that the project addresses the Focus Area Study in the following areas: - Parking lot will face Highway 10, not the residential area, - Building presents a pleasant facade to the highway; - Menards is a high visibility use; should be next to the highway; - Use would provide adequate buffering; - Upscale landscaping plan would be provided under the City's PUD agreement. A 14- foot high screening structure would be used which has pallet racking (used for storage) on the inside, and the outside would be an attractive natural brown treated lumber. A short discussion followed regarding the uses proposed for the remaining commercial space. Shari Patterson, resident in Sandpiper Estates, expressed her feeling that the development would be too close to their residential neighborhood and is not a good choice for the proposed site. Tim Johnson, resident of Sandpiper Estates, stated he felt the development would cause problems such as stray carts at the edge of the lot, flyers blowing into their neighborhood, and noise from fork lifts at night. e Lynn Elger stated that this is not a "Menards" issue but whether or not the site is the best place for this type of use. She further stated that she feels the City has a responsibility to its citizens for consistency in planning. Lynn Elger indicated that she looked at the land use plan for the area when making the decision to buy their home. Mayor Duitsman noted that the area in question was designated in the past for a business park, not residential. Pat Dwyer, representative of the Business Park Task Force, reviewed his concerns regarding the need to set aside space for a business park and light industrial uses. Jerry Eldorf, resident, expressed his concern that the City Council reserves the area for business park use, not commercial. Jay Johnson, representative of Country Ridge Partnership, stated that the plan for the business park does allow for 26 acres of commercial development. He explained that Menards is a "here and now" user; that the business would help Elk River's tax base, and also would help extend sewer and water to the Courthouse. Rita Dahlheimer, resident, expressed her concern that the use would affect her property value. e Mayor Duitsman questioned the developers whether or not the 109,000 square feet of additional commercial space could be taken out of the project. Gary Colby stated that the project has already been scaled down from 44 acres to 24 acres and at this point, the 109,000 square feet could not be deleted. Elk River City Council Meeting February 17, 1994 Page 7 e Mayor Duitsman closed the public hearing (8:05 p.m.). Councilmember Farber questioned what the normal business hours were. Mr. Kolby stated that the hours are from 8:00 a.m. to 9:00 p.m. He further stated that most deliveries are made during normal business hours. Council member Holmgren expressed his support for the proposed development, citing the positive affect the flow of traffic through town from east to west would have on the downtown area. He stated he felt the development would help the City's tax base and employment opportunities. Mayor Duitsman stated that he would be willing to accept a proposal for 15 acres. He stated that he is concerned that the Council does not know what other uses are proposed for the additional commercial space. Councilmember Dietz stated that he felt the City is already committed to having the majority of commercial development along Highway 169, and to the Business Park plan in the west Highway 10 area. COUNCILMEMBER FARBER MOVED TO DEFER THE COMPREHENSIVE LAND USE PLAN AMENDMENT REQUESTS - AGENDA ITEMS 4.4 AND 4.5. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 3-1. COUNCILMEMBER DIETZ OPPOSED. The Council discussed deferring this item to a later date. e COUNCILMEMBER FARBER MOVED TO RESCIND THE MOTION TO DEFER THE COMPREHENSIVE LAND USE PLAN AMENDMENT REQUEST - AGENDA ITEMS 4.4 AND 4.5. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. COUNCILMEMBER DIETZ MOVED TO DENY THE LAND USE AMENDMENT REQUEST BY MARV PROCHASKA. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. COUNCILMEMBER DIETZ MOVED TO DENY THE LAND USE AMENDMENT REQUEST BY COUNTRY RIDGE PARTNERSHIP. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 3-1. COUNCILMEMBER HOLMGREN OPPOSED. COUNCILMEMBER FARBER MOVED TO WAIVE THE APPLICATION FEE FOR COUNTRY RIDGE PARTNERSHIP FOR A LAND USE AMENDMENT, SHOULD THEY WISH TO RE- SUBMIT AN APPLICATION. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. Mayor Duitsman requested the EDA Executive Director and Business Park Task Force to continue as planned with the grant application in progress for the business park. e Elk River City Council Meeting February 17, 1994 Page 8 e 6. Staff Updates a. Hockey Sponsor Ad COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE PLACEMENT OF A ONE-HALF PAGE SPONSOR AD IN THE ELK RIVER STAR NEWS HOCKEY PLAY- OFF SUPPLEMENT AT A COST OF APPROXIMATELY $220.00. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION. THE MOTION CARRIED 3-0. COUNCILMEMBER DIETZ ABSTAINED. b. 4th Street and Holt Avenue Water Problem The City Administrator submitted a letter from the City Engineer regarding this issue. c. Joint City Council/County Board Meeting The City Administrator submitted a draft agenda for the City Council's review. 7. Adiournment e There being no further business, COUNCILMEMBER DIETZ MOVED TO ADJOURN THE MEETING. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. The meeting of the Elk River City Council adjourned at 8:40 p.m. Respectfully submitted, [)~If~ Debbie Kleckner Recording Secretary e