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12-16-1985 CC MIN REGULAR HEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY MONDAY, DECEMBER 16, 1985 MEMBERS PRESENT: Mayor Hinkle, Councilmembers Gunkel. Schuldt. Williams and Engstrom MEMBERS ABSENT: None STAFF PRESENT: Tom Bublitz; City Administrator. Dave Sellergren; City Attorney. and Rick Breezee; Building and Zoning Administrator. and Tom Zerwas; Police Chief Also present were Tom Warner and Don Willie. representatives of the Elk River Planning Commission. 1. The Elk River City Council meeting was called to order by Mayor Hinkle at 7:30 p.m. 2. Agenda Items 12G - City Council Meeting on 12/23/85. and 12H - HRA Appointment, were added to the agenda. COUNCILMBMBER SCHULDT MOVED TO APPROVE THE 12/23/85 CITY COUNCIL AGENDA AS AMENDED. COUNCILMBMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. 3. December 2, 1985 City Council Minutes COUNCILMBMBER GUNKEL MOVED TO APPROVE THE DECEMBER 2, 1985 CITY COUNCIL MINUTES AS SUBMITTED. COUNCILMBMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 4. Open Mike There was no one present for this item. 5. Presentation of Resolution to Rick Bree.ee Mayor Hinkle presented Rick Breezee, the Building and Zoning Administrator with a resolution placque commending him on his dedicated service to the City. 6. Con.ideration of Amendment to Barthel PUD - Public Hearing Tom Warner. Representative of the Planning Commission. indicated that the Planning Commission held a public hearing at their November meeting for an amendment to the conditional use and the preliminary and final plat. He noted this was a formality and the Planning Commission recommended approval. CITY COUNCIL MINUTES DECEMBER 16, 1985 Mayor Hinkle opened the Public Hearing. opposition of the item at this time. There was no one for or in Mayor Hinkle closed the public hearing. The City Administrator noted that at the joint meeting of the Planning Commission and City Council on October 21, there were some recommended conditions stipulated with the approval of the site plan amendment to allow a Pamida store and hardware store to be located in the PUD. Rick Breezee noted that the conditions stipulated consisted of dumpster area, garden area, outside storage trucks, and also the fact that the Hardware store was to be connected with an enclosed walkway to the Shopping Center. Counci1member Gunkel indicated that she would like to see a new plan which would show the current status of parcels L, G, & F in relation to the amended site plan. COUNCILMlMB!R WILLIAMS MOVED TO TABLE THIS ITEM UNTIL LATER IN THE AGENDA, OR UNTIL SUCH TIME THAT A REPRESENTATIVE FROM BARTHEL WAS PRESENT IN ORDER TO CLEAR UP SOME OF THE CONFUSION. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 7. Request of Zone Change by Winnifred Ward - Public Hearing Tom Warner representative of the Planning Commission, indicated the zone change request was to zone change property owned by Ms. Ward on the corner of Main Street and Lowell from R-1C/Sing1e Family to C-2/Genera1 Commercial. He further noted the reason for the request was because the Terpstra and Black Law Offices and the Centruy 21 White Dove Realty Offices are interested in purchasing this property and the adjacent property for their offices. He further stated that the adjoining property was also included in the zone change request. Commissioner Warner noted that the Planning Commission recommended approval of the zone change request because they felt the two houses were already adjacent to commercial property and further because the request is in line with the City's Land Use Map. Mayor Hinkle noted that he would like to have the City Staff do some research on what actually is available in the downtown area for commercial businesses and how the rezoning of this property would affect the downtown area. Mayor Hinkle opened the Public Hearing at this time. Ron Black indicated that this was a joint venture between Terpstra and Black Law Offices and Century 21. White Dove Realty. He stated they are proposing to utilize both structures for offices. He further noted that parking would be provided in the back with berming and screening in order to limit exposure to adjoining property owners. Ron Black handed out a PAGE 3 CITY COUNCIL MINUTES DECEMBER 16. 1985 memo to the Council at this time which stated the advantages of the rezoning request. Ron Black reviewed the advantages of the zOne change with the City Council. He noted they felt the use of the structures would be compatible with what currently exists. they would create minimal traffic. parking and noise. and further it would increase the property evaluation for property owners in the immediate vicinity. Mayor Hinkle opened the public hearing. Mr. Lloyd Anderson addressed the Council. He stated that two years ago he requested a rezoning of the exact same property and it was denied. He indicated that if the zone change request fails. both homes will become rental situations. He noted he was definitely in favor of the zone change request. Mr. John Schultz noted he was a neighboring resident and requested adequate berming and greenery if the zone change should go through. John Fitzgerald. an associate of Terpstra and Black. noted that the people involved in the request would like to be anchors for the downtown area. and further indicated they would like to stay in the downtown area. Dr. Sommers questioned why Winnifred Ward was the only na~e mentioned in the public hearing notice when there were actually two proprties involved in the zone change request. He noted he was a next door neighbor to the affected property. and stated that should the request be granted. he would like the same consideration if he were to come before the Council in a years time to rezone his property from residential to commercial. Councilmember Schuldt be no way the City Sommers come before stated that if the request were passed. there would Council could guarnatee the same results should Dr. the Council with a similar request in the future. Mayor Hinkle closed the public hearing. Councilmember Schuldt noted he had met with the law office of Terpstra and Black and had talked with some of the property owners in the area. He noted that several people he has talked to in the block are opposed to the zone change. He noted that according to the City's Attorney. granting this zone change would be setting a precedent. He noted he felt it was not necessary to continue encroachment of commercial property onto residential property. Councilmember points in his was a great Gunkel indicated she felt Mr. Black had made some good memo to the Council. She further indicated she felt there deal of vacant commercial property available in the City. -, PAGE 4 CITY COUNCIL MINUTES DECEMBER 16, 1985 Ron Black noted that there were only two places which were remotely feasible for their offices, one being Ben Franklin and the other being Hagens, both of which he indicated were charging more for rent than they could aft ord. Councilmember Engstrom noted that in the past he has had some reservations about commercial moving into residential areas. He noted that the First National Bank, Dares Funeral Home and Doug Johnson's building were all residential at one time. He indicated that he agreed with Ron Black in that the available commercial buildings available are not suitable for real estate or attorney's offices. He noted that he also agrees with the transition process of moving the offices into remodeled homes instead of building a new building. The City Administrator noted that economic issues should be separated from the land use issues. He stated that the City does not allow people to use financial burden when granting a variance. He further noted that the city is not dealing with a site plan at this time. He indicated that the key issue is where to draw the line on the downtown area. He noted that the area in question is on the border between residential and commercial and felt the City Staff should look a little closer and do some research on what is available for office space in the downtown area. John Fitzgerald noted that economics is what is playing the major roll in the situation. He noted they are looking at trying to stabilize the downtown area and further indicated this is the ideal situation for what they are looking for. Councilmember Williams noted he agrees with the proposal. He noted he felt it was a natural order of progress for these properties to go into a zone change. He noted he would be against certain types of signage. He indicated he felt this was sensible and orderly progress. Val Hanson, employee of Century 21 addressed Councilmembers Schuldt and Gunkel requesting them to please give consideration to the appropriateness of the facilities. The City Administrator noted he agreed that the trend is moving in the general direction of the zone change request, but indicated he felt the staff does not have enough information at this time to make a decision. COUNCILMEMBER ENGSTROM MOVED TO TABLE THE REQUEST UNTIL THE JANUARY 21 CITY COUNCIL MEETING IN ORDER TO GIVE THE CITY STAFF TIME TO RESEARCH THE DOWNTOWN AREA. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-1. COUNCILMEMBER SCHULDT VOTED AGAINST THE MOTION. Councilmember Schuldt noted he felt the zone change request should be voted on. -., PAGE 5 CITY COUNCIL MINUTES DECEMBER 16. 1985 6. Continued Public Hearing of Amendment to Barthel POD Amendment Ken Barthel presented the parcels and noted further pointed out the Store. the Council with the updated platting of that these would now be lots and blocks. He location of the Hardware Store and the Pamida Councilmember Gunkel noted that the hardware store was proposed for a different location at the October 21st meeting than what was being shown tonight. Mayor Hinkle indicated he could not make a decision because there was no site plan to base his decision on. Councilmember Gunkel noted noted that if the Council gives approval of what is proposed tonight. they would be approving other documents which they don't have yet. Mr. Nick Olson noted he had a couple of concerns with the situation. He noted one concern would be residential - multi-family buffer which was to have been started by now. He also noted he was concerned about the entrance to Burger King on School Street and the traffic conjestion this was going to cause. The City Attorney. Dave Se11ergren noted that he would need the new drawings to draw up the proceedings in the developer's agreement. COUNCILMlMBER GUNKEL MOVED TO CONTINUE THE PUBLIC HEARING TO DECEMBER 30. 1985. UNTIL SUCH TIME THAT. BARTHEL CAN GET THE UPDATED AND CURREJrl' MATERIAL TO THE CITY. COUNCILMBMBER WILLIAMS SECONDED THE MOTON. THE MOTION PASSED 4-0. 8. Consideration of Sign Ordinance Amendment Mayor Hinkle noted he felt the Sign Ordinance should be looked at by the City's Attorney before the Council adopts it. COUNCILMEMBER WILLIAMS ORDINANCE AMENDMENT. MOTION PASSED 4-0. MOVED TO TABLE THE PUBLIC HEARING ON THI SIGN COUNCILMEMBER ENGSTROM SECONDED 'l'HI MOTION. THB 9A. Consideration of Resolution giving Preliminary Approval to a Proposed Indu8tria1 Development Project by Jay Morrell and John Plaisted The City Administrator noted the Elk River City Council had authorized an application to the Minnesota Department of Energy and Economic Development for an allocation from the Competitive Pool for the Industrial Development Project proposed by Mr. Jay Morrell and Mr. John Plaisted. He noted the project was for a 10.000 square foot hardware facility in the Elk River Mall. and further noted the amount of the allocation requested from the State was $400.000. He further indicated only $304.260 had been received because the Plaisted project was the last one to be funded and there was only $304.260 remaining in the pool. He PAGE 6 CITY COUNCIL MINUTES DECEMBER 16, 1985 indicated that the remainder of the allocation would hopefully be received in the final round. Mayor Hinkle opened the public hearing. No one appeared for or against the matter. Mayor Hinkle closed the public hearing. Councilmember Schuldt questioned what would happen if the funds allocated are not sufficient. John Gries. Attorney representing Plaisted. stated if the additional money is not allocated. the remainder will be furnished either by conventional bond or by the applicant. COUNCILMEMBER ENGSTROM MOVED TO ADOPT RESOLUTION 85-81 A RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY JAY MORRELL & JOHN PLAISTED PARTNERSHIP UNDER '!'HI MUNICIPAL INDUSTRIAL . DEVELOPMENT ACT AND AUTHORIZING SUBMISSION or AN APPLICATION TO TIll MINNESOTA DEPARTMENT OF ENERGY AND ECONOMIC DEVELOPMENT FOR APPROVAL THEREOF. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 4-0. 9B. Consideration of Resolution g1v1ng Final Approval to a Proposed Industrial Development Project by Jay Morrell and John Plaisted COUNCILMEMBER SCHULDT MOVED TO ADOPT RESOLUTION 85-82, A RlSOLUTION PROVIDING FOR Tim ISSUANCE AND SALE OF A REVENUE BOND PURSUANT TO CHAn'lR 474, MINNESOTA STATUTES, TO PROVIDE FUNDS TO BE LOANED TO JAY MORRILL , JOHN PLAISTED PARTNERSHIP FOR INDUSTRIAL DEVELOPMENT PROJECT, COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 4-0. 10. Public Hearing on Resource Recovery Project Norm Schiferl on the. Anoka proposed site wastes will counties. He bonds for the of Anoka County was present and gave a brief presentation County Resource Recovery Project. He indicated that the for the processing plant is 16Sth Avenue. He noted the come from Anoka County and possibly other surrounding noted they are intending to sell industrial development project by the end of the year. Mayor Hinkle opened the public hearing. Erwin Specht questioned whether there would be any odor or paper flying around. Mr. Don Chimel from NSP, indicated there would be no odor and also indicated everything would be enclosed within a building. so there would be no debris flying around. Chuck Hemmelgren questioned how many counties would be using the facility. He also indicated he would like to see the refuse haulers kept abreast of the situation. ~ PAGE 7 CITY COUNCIL MINUTES DECEMBER 16. 1985 Mr. Tom Woods questioned what the purpose of the public hearing was and further noted he would like to see the Council create a dialogue about the Anoka County Resource Recovery Project. Mayor Hinkle closed the public hearing. Councilmember Engstrom stated he was under the impression that each county would be responsible for their own residue. and indicated he thought the haulers from each County would be hauling their residue back to their own Counties. Matt Hemmelgren indicated he felt the Counties would not haul back their own residue because if they had somewhere to dump it to begin with they would not be signing a contract to use the RDF facility. Further discussion was held on the fact of whether the Elk River Landfill would have more fill hauled in with the RDF facility than without it. COUNCILMBMBER ENGSTROM MOVED TO ADOPT RESOLUTION 85-83. A RESOLUTION GIVING APPROVAL TO A SOLID WASTE FACILITIES PROJECT AND EXPRESSING THE INTENT OF THE CITY OF ELK RIVER AS TO CERTAIN RELATED MATTERS. COUNCILMEMBER SCULDT SECONDED THE MOTION. THE MOTION PASSED 4.....0. 11. Consideration of Snow Removal Parking Ordinance Mayor Hinkle noted that at the last Council Meeting. the Council directed staff to develop a snow removal parking ordinance which would prohibit parking in City commercial areas between the hours of 2:00 a.m. and 6:00 a.m. from November 15 to April 15 and to restrict parking in residential areas to an odd/even system of parking during the same period. Police Chief Zerwas stated he felt that should an odd/even system go into effect it would generate more complaints from the public and further that it would be extremely hard to enforce. He further noted he felt the system would create confusion due to the fact the City does not have the means to keep the people notified of the system. Councilmember Gunkel indicated she felt the 2:00 to 6:00 policy would not address the problem with the cars parked on the streets. Phil Hals indicated he felt his men could get the areas that cause the major problems in the City during these hours. COUCNILMEMBER ENGSTROM MOVED TO ADOPT ORDINANCE 85-11. AN ORDINANCE AMENDING SECTION 1100.16 OF THE CITY ORDINANCES REGARDING SNOW REMOVAL PARKING. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THB MO'l'ION PASSED 4-0. PAGE 8 CITY COUNCIL MINUTES DECEMBER 16, 1985 12. Administrator's Update A. Main Street and Orono Road Street and Utility Improvement Project The City Administrator indicated that the City Council had reviewed the status of various MSA projects, and had determined there was some uncertainty with regard to the overall fund balances. He noted he felt until such time as the exact dollar amounts for each project can be ascertained. he recommended deferring the Main Street and Orono Road Street and Utility Improvement Project scheduled for January 6. 1986. COUNCILMBMBER GUNKEL MOVED TO ADOPT RESOLUTION 85-84 A RESOLUTION AMBNDING COUNCIL RESOLUTION 85-64 REGARDING DATE FOR PUBLIC HEARING ON MAIN STREET AND ORONO ROAD (IMPROVEMENT PROJECT 1985-5). COUNCILMBMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. B. Update on Municipal Insurance The City Administrator indicated that a representative of Home Insurance Company came and toured the City facilities and interviewed City employees. He indicated that they will be asking the City to undergo Some kind of structural testing of the City facilities. He further noted that the representative from Home Insurance indicated that any employee that has a driving record with a alcohol related incident cannot drive a City vehicle within a three year time period. The City Administrator noted that the Street Department has an employee who has two alcohol related incidents on his driving record. He noted the last incident occurred in 1985 so it could be three years before he could be allowed to use a city vehicle. He further indicated that Phil Hals needed all his employees to operate vehicles during the snow season. especially snow storms. Phil Hals indicated that this person is presently doing maintenance on the vehicles and performing his work satisfactorily. He indicated however. that he will need another man during snow storms. C. Access Road For Lions Park an Houlton Property The City Administrator indicated that he had met with Central Lutheran Church Council to negotiate the acquiring of an easement for access into Lions Park and the Houlton property. The City Administrator explained that the Negotiating Committee for Central Lutheran Church Council has agreed to a dollar amount of $7.000 for the easement. the cost being based on the sale price of comparable R-4 land adjacent to the Northern boundary of the church property. He also noted that the Negotiating Committee has agreed to an assessment of $2.500 which is based on a $12.50 per linear foot assessment. He stated it is also proposed to assess the Morrell property an identical amount. He ~ PAGE 9 CITY COUNCIL MINUTES DECEMBER 16. 1985 explained that the terms are. of course. contingent on acceptance by the Church Council and the congregation. He noted that the original offer to the church was to pay the SAC charges and to pay the hook-up charges for sanitary sewer when the proposed School Street Sanitary Sewer Project was undertaken. He explained that. since there was no definite date or certainty that the project would be undertaken. this approach to securing the easement was abandoned. There was a general consensus among Councilmembers to concur with the terms agreed upon by the Central Lutheran Church Negotiating Committee Members and the City Staff with regard to the easement for the access . road for Lions Park and the Houlton property. D. Credit Terms from Liquor Whole.aler. The City Administrator noted that the liquor suppliers are allowing 2% discount on invoices if paid within six days. The City Administrator noted that the problem is trying to get the checks signed. He noted that the Council might consider purchasing a name stamp with the Mayor's signature to help speed up the process. COUNCILMBMBER WILLIAMS MOVED TO AUTHORIZE THE CITY STAFF TO PURCHASE A SIGNATURE STAMP WITH THE MAYOR I S SIGNATURE ON IT. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. E. 1986 Convention of Minnesota Municipal and Private Retail Beverage Alcohol Dealers The City Administrator noted the Liquor Store Manager was requesting permission for him and two of his employees to attend a liquor conference. He noted the Manager would attend for the full three days and two of his employees would attend for one day each. COUNCILMBMBER WILLIAMS MOVED TO AUTHORIZE PERMISSION TO THE LIQUOR STORE MANAGER AND TWO OF HIS EMPLOYEES TO ATTEND THE MUNICIPAL AND PRIVATE RETAIL BEVERAGE ALCOHOL DEALERS CONVENTION. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. F. Appointment to Public Utilities Commission Mayor Hinkle noted that Mr. Werner Banke's term on the Utilities Commission will expire December 31. 1985. and indicated that he did not wish to renew his term. Mayor Hinkle noted that he was recommending Mr. Doug Dill to the position. COUNCILMEMBER GUNKEL MOVED TO APPOINT MR. DOUG DILL TO THE UTILITIES COMMISSION TO REPLACE MR. WERNER BANKE. AND FURTHER THAT HIS TERM WILL EXPIRE 12/31/88. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 4-0. PAGE 10 CITY COUNCIL MINUTES DECEMBER 16. 1985 G. Council Meeting on December 23. 1985. COUNCILMBMBER SCHULDT MOVED THAT THE CITY COUNCIL NOT HOLD A COUNCIL MISTING ON MONDAY. DECEMBER 23. 1985. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. H. HRA Appointment Councilmember Gunkel noted that there was an opening in the HRA Committee. Councilmember Gunkel questioned the authority the HRA committee has in relation to the authority the City Council has. Councilmember Gunkel indicated the only authority the HRA has which Council doesn't have is in housing. She questioned whether the City needs to have an active HRA Committee at this time. It was the consensus of the City Council to appoint a new member to the HRA Committee and that the committee may remain inactive until such time as there is a need for an HRA Committee. COUNCILMEMBER ENGSTROM MOVED '1'0 APPOINT WARREN WILLIAMS TO 'l'HI KRA CCH4ITTEE. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THI MOTION PASSED 4-0. 13. Reconvene Budget Hearing . Mayor Hinkle dismissed this item from the agenda at this time because of the lateness of the meeting. 14. Check Register TheCity Administrator noted he had received an invoice for the purchase of the land from the Public Utilities, for the proposed new public works garage. He noted he was recommending the Council approve the purchase of the land. COUNCILMlMBBR ENGSTROM MOVED TO AUTHORIZE THE PAYMENT OF $10.000 TO THE PUBLIC UTILITIES FOR PURCHASE OF LAND FOR THE PROPOSED PUBLIC WORKS GARAGB. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 4-0. COUNCILMBMBER SCHULDT MOVED TO APPROVE THE CHECK REGI STER. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. PAGE 11 CITY COUNCIL MINUTES DECEMBER 16. 1985 15. Adjourn There being no further business. COUNCILMEMBER ENGSTROM MOVED TO ADJOURN THI ILK RIVER CITY COUNCIL MEETING. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. The Elk River City Council Meeting Adjourned at 11:55 p.m. ~ Sandra Thackeray Recording Secretary