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01-21-1986 CC MIN REGULAR MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY TUESDAY. JANUARY 21. 1986 MBMBERS PRESENT: Mayor Hinkle. Councilmembers Schuldt. Gunkel. Williams and Engstrom MEMBERS ABSENT: None STArI PRESENT: Tom Bublitz: City Administrator. Phil Hals: Street Superintendent. and Dave Sellergren: City Attorney 1. The Elk River City Council meeting was called to order by Mayor Hipkle at 7:30 p.m. 2. Agenda Items 6E - Planning Commission Member. 6F - Information on Tax Increment Financing and 6G - Request for Resolution from Library Board were added to the agenda. COUNCILMBMBBR SCHULDT MOVED TO APPROVE COUNCILMBMBER GUNKEL SECONDED THE MOTION. THE AGENDA AS THE MOTION PASSED 4-0. AMENDED . January 13. 1986 Council Minutes COUNCILMlMBBR GUNKEL MINUTES AS SUBMITTED . MOTION PASSED 4-0. MOVED TO APPROVE THE JANUARY 13. 1986 CITY COUNCIL COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE 4. Open Mike Councilmember Engstrom noted he had received a phone call from Sue Bergstrom. She had stated her concerns with regard to the storm sewer taking water out of five lakes and depositing it in the Elk River. Her concern was the water table getting too high. Councilmember Engstrom noted that Sue Bergstrom had informed him of a meeting being held on Thursday evening at the elementary school in Big Lake regarding this matter and felt the City should have a representative at the meeting. Mayor Hinkle noted he had talked recently with Lyle Smith. the County Commissioner. and was informed they are making certain considerations to alleviate the problem. 5. Main Street Rezoning Request - Cont. Public Hearing The City 907 and 16. 1985 more time situation. Administrator noted that the request to rezone the properties at 913 Main Street from R-1C to C-2 was first heard at the December Council meeting. He noted the city staff had requested to have to obtain information in order to get a better look at the He noted the staff has researched the matter and has come up P-AG~ L. ~ CITY COUNCIL MINUTES JANUARY 21. 1986 with the following conclusions. The City Administrator noted that the three major documents he used when putting together his conclusions were the Redevelopment Plan for the downtown passed by the HRA. the finalized land use map and the Zoning Ordinance. The City Administrator stated that the Redevelopment Plan stresses a need to define an edge for the downtown. He indicated that the use proposed in the zoning request is consistent with the land use map. but stated that the key question is. "what is the proper timing for this". He indicated the map refers to sometime in the future and at the present there is no definite timing for this. The City Administrator noted that the Council must look at what uses are allowed in a C-2 zone. He indicated that the rezoning and the overall land use must be separated because once it is rezoned it will open the area up to a number of other uses besides the request. He further noted that the Zoning Ordinance directs the Council to review certain considerations when zoning amendments are considered. The City Administrator stated that the parcels in question are residential uses at this time and based on the development plan the Staff is not recommending that the area be rezoned to commercial. He stated there is no need to expand the Central Business District since there is commercial property available. He questioned what would happen to the rest of the block should the zone change go through. He also indicated he felt there was no mistake in the original zoning of the area. He noted the key issue is the establishment of the edge of the downtown area. The City Administrator noted he tried to separate the proposal from the applicants and acknowledged the fact that the applicants are reputible businesses in the downtown area. He indicated he is looking at the matter with regard to a land use and zoning perspective. Mayor Hinkle noted that at a Council Meeting in May of 1981. there was a 3-1 vote to rezone the block. He indicated there was not a full Council present so therefore the vote was not passed. Jack Terpstra spoke to the City Council representing the applicants of the request. He noted that Rick Breezee enthusiastically endorsed the proposal and that the Planning Commission had recommended approval of the proposal. Mr. Terpstra stated "What the whole proposition boils down to is the question of when." He indicated that timing means when the need and opportunity to do something come together. He stated the timing for rezoning these two parcels to commercial is an appropriate time. He stated the opportunity is here because there are two well established businesses interested. He noted the need is there because there is no available space suited for these two businesses in the City of Elk River. PAGE 3 COUNCIL MINUTES JANUARY 21. 1986 He noted the m1n1mum space needed for Century 21/White Dove realty is 2.000 square feet and the minimum space needed for the Terpstra Black law office of 1.500 square feet. He noted the former Ben Franklin store has 5.000 square feet. He stated the parking situation is not suitable for the number of employees. He indicated he had contacted the owner of the building and was informed that he is about ready to enter into a contract to lease the space and further that there are three other people interested in the space. Mr. Terpstra stated there is no suitable space available in downtown Elk River. He indicated he felt downtown Elk River is a viable place for retail trade and further that he is interested in keeping the downtown Elk River as retail and not putting it all to use as office area. Mr. Terpstra indicated that the former Hagens Super Va1u is not a suitable space for an office type operation. Jack Terpstra indicated there is a need as well as an opportunity to develop these two parcels for constructive and useful businesses for the town and an opportunity to keep business in the downtown area. Mayor Hinkle opened the public hearing. Mr. Lloyd Anderson responded to the idea of keeping the edge in the downtown area. He noted that the reality in this case is that the edge was broken many years ago. He indicated he felt commercial zoning should be consistent on both sides of Main Street. He noted the zone change would even up the edge so as to be compatible on both sides of the street. Mr. Jerry Smith. an employer of White Dove Realty indicated that all the sites available in the Elk River area are retail sites. He noted their goal is not to rent another site. but to purchase so they can become stable in the downtown area. Gene Chouinard of White Dove Realty noted they employ 20 people. He indicated the business is a big help to the City for employment. He noted they are very cramped for space in their present office. Mayor Hinkle closed the public hearing. Councilmember Schuldt indicated that the concerns for the neighborhood were not discussed. He indicated that if the zoning were passed on the basis of Main Street being the logical extension of downtown. then it could conceivably go as far as Lake Orono. He also stated that if West Main Street is turned into a two mile commercial strip. then the north area will never develop. PAGE 4 CITY COUNCIL MINUTES JANAURY 21, 1986 Councilmember Schuldt noted that if the property in question is a logical extension of downtown, what would happen if the shopping center were to fill to capacity. Would the City extend the commercial district down School Street for the same reasons? Councilmember Schuldt indicated that there is nothing to hold the businesses to their promise or intent once the zone change is made. Mayor Hinkle indicated his first opinion was in opposition to the request. He indicated that since then it has been indicated there is a strong possibility that three homes east of the property in question will be taken down. He indicated the timing is the issue. He noted some of the buildings available for rent such as Hagens are too high, and indicated he would rather see an owner/occupied business in the two homes as opposed to rental. He stated we must conserve some retail space downtown and that we must have a mix downtown. He stated the people in the downtown area should not have to move to Dodge Avenue if they don't want to. Mayor Hinkle noted that he felt economics plays an important part in the situation. He indicated that the thing that convinces him most to vote in favor of the zone change is the fact that he has not heard much opposition from the residents in the block regarding the zone change. He noted that five years ago he, and a majority of the Council felt this zone change was the logical way to go. He indicated he will support the zone change and feels the time is right. Councilmember Gunkel noted her concern was that the Council not lose sight of what the issue is. She noted that time is a big element, but felt the land use is the primary concern with regards to whether it is appropriate to rezone two lots on the end of a residential lot to commercial zoning. Councilmember Gunkel indicated she had not changed her position on this matter which was opposition to the zone change. Councilmember Gunkel noted that maybe the land use map should be evaluated and revised so as to indicate that this area not be looked at as a commercial zone. She indicated that she felt the businesses will make do with what is available until there are some future changes in the downtown area. Councilmember Engstrom indicated he was in favor of the zone change. He indicated there was only one downtown space available which is the Ben Franklin and further indicated that in a sense it was not available because of the fact there is already a waiting list for. the building. He noted that the two businesses do not want to rent but to own their own building. Councilmember Engstrom noted that if there is any hope of the downtown area expanding it will be with businesses building large buildings. He further noted that the two businesses requesting the zone change have no need for such a large building. Councilmember Engstrom stated he would like to see the two businesses be able to purchase property in the downtown area to develop their business. He stated they have gone as far as they can for renting and leasing -, pAGE 5 CITY COUNCIL MINUTES JANUARY 21, 1985 property and it purchase property. years ago this was the time because downtown. is time for them to get roots in the ground and to Councilmember Engstrom indicated he felt that five not the appropriate time, but indicated he felt now is the Elk River Mall is drawing some business out of Councilmember Williams indicated he was in favor of the zone change because it is part of downtown and coincides with the property to the north. He felt it was an orderly transition. Mr. Jerry Smith stated it may appear that the businesses have a large selection to choose from for business location, but the fact is that most do not fit their needs. He indicated they are basing the move on sound business judgement and see no real alternative. Val Hansen stated she did not understand why the Council would not allow stable business to be an anchor in the downtown area. COUNCILMEMBER GUNKEL MOVED TO REQUEST THAT THE ZONE CHANGE BE DENIED WITH THE REASONS BEING STATED IN THE CITY ADMINISTRATOR'S MEMORANDUM DATED JANUARY 17, 1986, ITEMS 1 THROUGH 6 ON PAGES 5 AND 6. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION FAILED 2-3. MAYOR HINKLE, COUNCILMEMBERS WILLIAMS AND ENGSTROM VOTING NAY. COUNCILMEMBER ENGSTROM MOVED THAT THE ZONE CHANGE REQUEST FOR PROPERTIES AT 907 AND 913 MAIN FROM R-IC TO C-2 BE GRANTED~ COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION FAILED 3-2, DUE TO THE FACT THAT A ZONING AMENDMENT REQUIRES A 4/5 VOTE IN ORDER TO PASS. COUNCILMEMBERS GUNKEL AND SCHULDT VOTING NAY. 6. Administrator Update A. Consideration of Solid Waste Ordinance The City Administrator noted that the Landfill has been a concern of the City time. The City Administrator noted he technically qualified to evaluate the compliance for a landfill operation. operation of the Elk River Staff and Council for some felt the City staff is not standards and level of The City Administrator introduced Mr. Dick Nowlin from Larkin, Hoffman to the City Council. He noted that one of Mr. Now~in's legal specialties is solid waste disposal. Mr. Nowlin noted he felt the City would benefit greatly by getting involved in the regulation of the landfill. He indicated he felt that by adopting an ordinance and subjecting the use as a conditional use permit would keep the City more informed as to what goes on at the landfill. Mr. Nowlin indicated he felt it was important for a City to PAGE 6 CITY COUNCIL MINUTES JANUARY 21, 1986 have a consultant and a set of standards so they know how much risk they are taking. Mr. Nowlin County's landfill orderly impact. indicated the PCA's concern is mainly environmental, the responsibility is reviewing solid waste aspects of the and making sure we can dispose of our solid wastes in an and efficient way. and the City's responsibility is land use Dick Nowlin stated he felt that by the City hiring a consultant it would give the City more knowledge of the situation. He indicated the City can control litter, hours of operation, landscaping, noise and equipment through a conditional use permit. He further suggested hiring a hydrologist. The City Administrator indicated that the City will be considering a conditional use permit for the RDF proposal and that there is some information which the City Staff is not qualified to review. He stated we should look at hiring a consultant and questioned whether we can use the tax fund from the landfill for the development of a solid waste ordinance and a consulting service. Dave Sellergren indicated the money could be used for these items as well as for assistance in the permitting process and the EIS. Discussion was held regarding the fact that the City does not want to increase the volume of the landfill. The RDF process was discussed. It was noted that the volume would increase unless something was stipulated stating the landfill would not accept the dumping of the excess waste material that does not go through the RDF process. COUNCILMEMBER WILLIAMS MOVED TO AUTHORIZE THE CITY ADMINISTRATOR TO START PROCEEDINGS WITH DICK NOWLIN IN THE DEVELOPMENT OF A SOLID WASTE ORDINANCE, AND FURTHER TO CHECK INTO THE HIRING OF A HYDROLOGIST TO TEST WELLS WITH CONCERN OF CONTAMINATION. COUNCILMEMBER SCHULDT SECONDED THE MOTION. Councilmember Gunkel indicated that maybe the County should be notified of the City's proceedings. THE MOTION PASSED 4-0. B. Traffic Signal Request from District 728 School Board The City Administrator indicated the School Board passed a resolution requesting the City and State to pursue getting a semaphore constructed at School Street and 169. It was the consensus of the City Council that the City proceed with this. PAGE 7 CITY COUNCIL MINUTES JANUARY 21, 1986 The City Administrator indicated that the School Board has also requested the City to consider installing a flashing light warning signal near the school crossing at Parker School near School Street and Holt. Phil Ha1s indicted he has requested information on the flashing yellow and red light system and stated the basic unit would be $2,000 and another $1,000 for electrical installation. Counci1member location at Schuldt noted that there was a stop sign at that one time and that it was removed at the City's request. Councilmember Williams indicated he felt the traffic was becoming a real problem with the Elk River Mall and felt it would increase with the addition of the bank and Burger King. Counci1member Gunkel indicated that the traffic has increased significantly, and as the area continues to develop the traffic flow will continue to increase. The Counc i1 the flashing School Board requested it. authorized Phil Hals to continue checking on the cost of light system. It was noted that the City check with the to see if they would be paying for the system since they C. No Parking Zone/Main Street Phil Hals, the Street Superintendent, stated that the City staff is requesting a 'No Parking Zone' on the north side of Main Street, from Norfolk Avenue west for 200 feet. He noted this area is on the south rim of the Handke Pit. He indicated that the reason for recommending the no parking is because of the combined hazards of volume and speed of traffic on Main Street, the addition of pedestrians entering and leaving vehicles, the narrowing due to snow accumulation and the reduced visibility from the curve in Main Street just east of Handke Sc hool . COUNCILMEMBER WILLIAMS MOVED TO ENFORCE THE "NO PARKING ZONE" ON THE NORTH SIDE OF MAIN STREET, FROM NORFOLK AVENUE, WEST FOR 200 FEET, YEAR AROUND. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 3-1. COUNCILMEMBER ENGSTROM VOTING NAY. Councilmember Engstrom voted against the motion because of the shortage of parking space available. D. School Street Sanitary Sewer Project The City Administrator noted that the City had a request from Mr. Babinsky to construct a 24 unit apartment building near Proctor and School Street. He indicated that the City's Sewer Suprintendent ~ PAGE 8 CITY COUNCIL MINUTES JANUARY 21. 1986 noted that after the addition of this 24 unit apartment to the line the sewer would be at capacity. The City Administrtor stated that shortly after Mr. Babinsky's apartment was started Ron Kuhn and John Weicht contacted the City with a request for an application of a 48 unit building. He indicated that Ron Kuhn has asked for an engineering rationale as to why the sewer line is to capacity. The City Administrator stated that Terry Maurer. the City's Engineer felt the City would have a hard time rationalizing why the line was to capacity. The City Administrator noted that a solution to the problem would be to build a bypass from the end of Fifth to the corner of Tipton and Main. He stated this would prevent a sewer backup. He indicated this bypass would serve 24 units and would cost $15.000 to $20.000. He stated the City would have to inform Kuhn that the line would allow 24 units and not 48. He further indicated the City could use the fees collected from the permitting process and sac charge to pay for this bypass. He stated the fees collected would amount to approximately $40.000. Mayor Hinkle noted he felt the City should not have to spend the money for a small repair job when they should be repairing the entire line and putting the money toward the projecr. It was the consensus of the City Council that the City consider proceeding with School Street sanitary sewer project. E. Planning Commission Appointment It was the consensus of the City Council to authorize the City staff to run an add in the newspaper requesting applicants for the vacancy on the Planning Commission. F. Information on Tax Increment The City Administrator indicated that the Association of Minnesota Counties are anticipating developing some legislation which would include them more directly with Tax Increment Financing. He indicated that up until this time the Cities have been required to have their TIF plans reviewed by counties and school boards. 'but indicated they have no veto power. He indicated the counties are attempting to get more into the decision making of TIF. The City Administrator noted the League feels the Cities are the most appropriate body to deal with development issues and are requesting the cities to contact County Commissioers regarding this fact. The Council directed the City Administrator to contact the County Commissioners regarding this matter. PAGE 9 CITY COUNCIL MINUTES JANUARY 21, 1986 G. Request for Resolution From Library Board COUNCILMEMBER ENGSTROM MOVED TO ADOPT RESOLUTION 86-5 A RESOLUTION AUTHORIZING EXPENDITURES IN THE 1986 LIBRARY BUDGET UNDER LINE ITEM 3401 MAINTENANCE AND REPAIR BUILDINGS (CONTRACTURAL). COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 4-0. 7. Adoption of 1986 Budget The City Administrator noted that $10,600 was inadvertantly left in the fire department budget. He indicated that the $10,600 insurance line item #3360 would be deleted from the fire department budget and that $2,973 would be tranferred to the insurance in the unallocated department which would balance the budget. COUNCILMEMBER GUNKEL MOVED TO ADOPT THE 1986 CITY BUDGET. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 4-0. 8. Check Register COUNCILMEMBER GUNKEL MOVED TO APPROVE THE CHECK REGISTER. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. 9. Adjournment COUNCILMEMBER GUNKEL MOVED TO ADJOURN THE CITY COUNCIL MEETING. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. The Elk River City Council meeting adjourned at 11:00 p.m. '--~~~-tAf ~~ 'Sandra Thackeray j' Recording Secretary