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03-03-1993 CC MIN . . . MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL WEDNESDAY, MARCH 3, 1993 MEMBERS PRESENT: Mayor Duitsman, Councilmembers Dietz, Scheel, Farber, and Holmgren (arrived at 5:40 p.m.) MEMBERS ABSENT: None STAFF PRESENT: Patrick Klaers, City Administrator; Steve Rohlf, Building and Zoning Administrator; and Terry Maurer, City Engineer ALSO PRESENT: Denny Chuba, Mrs. Kincanon, Marilyn Van Patten-Chuba, and Lynn Caswell 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 5:30 p.m. by Mayor Duitsman. 2. Consider Final Plat for Heritage Landing Building and Zoning Administrator, stephen Rohlf, indicated that the City Council approved the preliminary plat for Heritage Landing in January, 1993. At this meeting, the Council also approved a variance for the length of a dead-end for 180th Avenue within this plat. The Heritage Landing Plat consists of 76 single-family residential lots with municipal sewer and water. Stephen reviewed his February 24, 1993, memo on this final plat. This memo reviews six issues associated with this plat that the City Council needs to consider. Discussion took place regarding the park dedication requirements for this plat. It was noted that the developers will pay $400 per residential lot for park dedication, but that the park dedication fee should be reduced based on the fair market value for the land that is being dedicated within this plat for the park and recreation trail system. Extensive discussion took place on how the fair market price should be determined for the land that is being dedicated to the City for the trails. One suggestion was to take the actual purchase price of the property as a basis for the fair market value for this land. This seemed more appropriate than using the County Assessor's data as the land is being developed for residential purposes but is being assessed based on agricultural use and the agricultural use carries a lower value at the County Assessor's office. A problem with using the purchase price for this plat related to the trunk sewer and water assessments. The purchase price excluded these costs and everyone was in general agreement that the trunk sewer and water being made available to this property increased the value of the land. The issue was how to determine a fair market price for the property without "forgiving" the trunk sewer and water assessments. The City Council was concerned about establishing a park dedication policy that the City would have to live with for future plats and the Council expressed a . . . City Council Minutes March 3, 1993 Page 2 need to have more information in order to establish a policy on how to determine the value of park land that is dedicated to the City. The resolution for approval of the final plat indicates that park dedication fees will be paid for the 76 newly created lots minus the dollar amount credited for land for trails in an amount to be determined by the City Council. The City Council decided to wait until a future meeting to determine the amount to be credited for the trail land. Stephen Rohlf reviewed issues raised by the developer relating to up-front fees for the sealcoating and park dedication requirements and the City requirement for a 100% Letter of Credit for the public improvements. The Building and Zoning Administrator indicated that the resolution reflects current City policy, but includes a phrase that allows for an adjustment with this plat if the currently City policy is changed before the time of recording the plat. The issue of up-front fees and a 100% Letter of Credit are issues that relate to all City development projects and plats and not only to the Heritage Landing proposal. The City Council indicated no problems or concerns with the location of model homes within this plat and the timing of issuing building permits for these model homes as outlined in the 2/24/93 memo. Stephen indicated that the development plan would be required to be approved by staff prior to the issuance of any building permits. Also, it was indicated that the names of a few streets will be changed and that an easement on the southern boundary of the plat will be required and reflected on the final plat. COUNCILMEMBER DIETZ MOVED TO APPROVE RESOLUTION 93-07, GRANTING FINAL PLAT APPROVAL TO HERITAGE LANDING. HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. A RESOLUTION COUNCILMEMBER 3. Consider Feasibility Study for Heritage Landing The City Engineer, Terry Maurer, reviewed the feasibility study for the Heritage Landing proposal dated February, 1993. It was indicated that the issue of providing sewer and water internally to this plat is relatively simple, but that the other issue of how to get the water and sewer to the plat is more complicated. In this regard, Terry indicated that it is his recommendation that the most appropriate alignment for providing sewer and water into this plat, from a purely engineering point-of-view, is down Fresno Street. Regarding the utilities alignment, Terry reviewed other options such as going down County Road 30 and going through the Lakoduk property. Water and sewer extensions need to be made from the trunk system that is currently in the southern part of the City Hall property. The council was in general agreement that Fresno Street was the best alignment for the extension of utilities to the Heritage Landing plat. The City Council reviewed the options for the property owners along Fresno Street in terms of what costs they would have to assume when this project takes place. Three options are laid out in the 2/19/93 memo from the City Engineer on this issue. The options include: 1) . . . City Council Minutes March 3, 1993 Page 3 doing a complete public improvement project and assessing out all of the improvements; 2) simply using Fresno as the alignment and patching of the street after the improvements were installed with no assessments; and 3) treating the property owners on Fresno in an identical manner as the property owners along Orono Road whereby, in 1992 utilities were installed underneath the road and the road was reconstructed and the property owners were assessed only for the street and storm sewer improvements and are not assessed for the sewer and water until they hook up to utilities. Discussion took place regarding the cost of these improvements to the homeowners and whether or not the project would allow for some "economies of scale" that would benefit the entire neighborhood. The Council requested that staff hold a neighborhood meeting for all of the property owners in the Orono Lake 3rd Addition to provide them information on the cost of public improvements. The purpose of the neighborhood meeting is to get feedback from the residents of this subdivision to determine if they desire a public improvement project at this time. Terry Maurer indicated that if assessments are going to take place for the property owners throughout the neighborhood, or for only the property owners along Fresno Street, then the City needs to begin the 429 public improvement assessment process. The City Council indicated that they would make this determination following the neighborhood meeting. If the neighborhood, in its entirety, would reject a public improvement project, then the City would have to determine how to deal with the property owners along Fresno as a separate issue. Discussion took place regarding the need to loop the water system. Terry Maurer indicated that as Mr. Moldenhauer develops his property, that the water system would be looped back to the east along County Road 30 to hook up to the connection at Orono Road and County Road 30. Additionally, as development takes place to the west of this plat and to the north of this plat, the water system would continue to be looped in order ensure good water quality. The City Engineer discussed the need to have access to County property in order for this public improvement project to take place. This issue will be discussed at the joint City Council/County Board meeting in later March, 1993. At the very minimum, the City needs a right-of-entry even if the amount of land to be purchased and the price of this land cannot be determined at this joint meeting. The City Administrator indicated that he has discussed this issue with the County Coordinator and it was his general feeling that it would not be a problem obtaining a right-of-entry from the County in order for this project to move forward. The City Engineer noted that as part of this project, Mr. Moldenhauer would be assessed for lateral improvements. It was anticipated that Mr. Moldenhauer would petition for these improvements and that the lateral sewer and water would be aligned into a future street associated with a plat for the Moldenhauer property. This plat has been discussed at a staff/developer concept review meeting. . . . city Council Minutes March 3, 1993 Page 4 COUNCILMEMBER HOLMGREN MOVED TO APPROVE RESOLUTION 93-08, A RESOLUTION ORDERING THE IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS IN THE MATTER OF THE HERITAGE LANDING IMPROVEMENT OF 1993. COUNCI LMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. It was indicated that the resolution of ordering the feasibility study for the Fresno Street improvements would be considered at a later date following the neighborhood meeting. The Council requested that this neighborhood meeting be held around the end of March, 1993. 4. Other Business 5. Adjournment There being no further business, COUNCILMEMBER DIETZ MOVED TO ADJOURN THE 3/3/93 CITY COUNCIL MEETING. COUNCILMEMBER HOLMGREN SECONDED THE MOTION 5-0. The special meeting of the Elk River City Council adjourned at approximately 6:57 p.m. Respectfully submitted, ? p I::(:J~ Patrick D. Klaers City Administrator