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02-21-1984 CC MIN REGULAR WEEKLY MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY FEBRUARY 21, 1984 Members Present: Mayor Hinkle, Councilmembers Engstrom, Schuldt and Gunkel Members Absent: Councilmember Duitsman 1. The meeting was called to order at 7:30 p.m. by Mayor Hinkle. 2. Agenda Item ll~ - Transient Merchan~ Ordinance Amendment, was added to the February 21, 1984 City Council Agenda. COUNCILMEMBER ENGSTROM MOVED TO APPROVE THE FEBRUARY 21, 1984, CITY COUNCIL AGENDA AS AMENDED. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 3-0. 3. Minutes COUNCILMEMBER SCHULDT MOVED TO APPROVE THE MINUTES OF THE FEBRUARY 6, 1984, CITY COUNCIL MEETING. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 3-0. 4. Open Mike No one appeared for this item. 5. Agency Agreement for East Main Street and the Highway #169 and Main Street Signals The City Administrator indicated that the agency agreement between the Minnesota Department of Transportation and the City of Elk River pertains to the east Main Street MSA project and the signal to be installed at the intersection of Main Street and Highway #169. The City Administrator further indicated that the agreement requires the City to delegate significant powers of review to the Department of Transportation. The City Administrator indicated that because federal aid will be involved in the project, it is required that the authority be given to the State. The City Administrator further indicated that the City's Engineer is involved in the project and therefore, will represent the City and the City's concerns throughout the project. The City Administrator indicated that the specific agreement is for the signal portion of the project and that there will be a separate contract for the Main Street MSA project. Mayor Hinkle indicated that one of his primary concerns was the lack of control by the City of the Engineer's time, but, as those costs come out of the total project and not specifically the City funds, and as the City's Engineer will also be involved, the agreement will be acceptable. Mr. John Gilbertson of Consulting Engineers Diversified indicated that specific agreements are set up by the State of Minnesota for specific projects, depending upon where the funds are obtained. Mr. Gilbertson further indicated that the signal for Highway #10 and Main Street will be a different sort of agreement and --, City Council Minutes February 21, 1984 Page Two further indicated that because federal funds are involved, these agreements are necessary. COUNCILMEMBER SCHULDT MOVED TO APPROVE THE AGENCY AGREEMENT BETWEEN THE MINNESOTA DEPARTMENT OF TRANSPORTATION AND THE CITY OF ELK RIVER FOR THE SIGNAL AT THE INTER- SECTION OF EAST MAIN STREET AND HIGHWAY #169. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 3-0. The City Administrator indicated that the State has also provided a technical and engineering assistance agreement, whereby the State would provide technical assist- ance to the City of Elk River, if the City specifically requested such assistance. Mr. John Gilbertson indicated that this type of agreement works very well with the State of Minnesota on a project like the Highway #169 project. Mr. Gilbertson indicated that the State is required to perform specific tests during construction and these, in turn, would benefit the City as well. The City Administrator indicated that the State of Minnesota would bill the City for specific engineering and technical assistance. COUNCILMEMBER GUNKEL MOVED TO APPROVE THE TECHNICAL AND ENGINEERING ASSISTANCE AGREEMENT BETWEEN THE CITY OF ELK RIVER AND THE STATE OF MINNESOTA. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 3-0. 6. Annual City Clerk's Conference Mayor Hinkle indicated that the annual city clerk's conference is scheduled for March 13th through the 16th at the Sheraton Inn Northwest and as the cost of the conference is budgeted in the 1984 budget, it is recommended that the City Council authorize Phyllis Boedigheimer, the City Clerk, to attend the annual conference. COUNCILMEMBER GUNKEL MOVED TO APPROVE THE ATTENDANCE OF THE CITY CLERK, PHYLLIS BOEDIGHElMER, AT THE ANNUAL CITY CLERK'S CONFERENCE. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0. 7. Joint Powers Agreement with Sherburne County Regarding Prosecution of Ordinance Violations The City Administrator indicated that the joint powers agreement between the City of Elk River and Sherburne County pertains to prosecution of misdemeanors, petty misdemeanors, and municipal ordinance violations. The City Administrator indicated that the 1983 legislature passed a bill requiring that cities and counties cooperate in the prosecution of ordinance violations, and that according to the new legisla- tion, cities are obligated to have joint powers agreements with their respective counties. The City Administrator indicated that the split of the fine money is now divided 1/3 to the arresting agency, 1/3 to the prosecuting agency and 1/3 to the county for maintenance of the court system. Discussion was carried on regarding the joint powers agreement and the method by which the Sherburne County handles the fees currently. Councilmember Engstrom indicated that the new agreement is in essence, the same as the previous agreement of a 50/50 split. --, City Council Minutes February 21, 1984 Page Three COUNCILMEMBER GUNKEL MOVED TO APPROVE THE JOINT POWERS AGREEMENT WITH SHERBURNE COUNTY REGARDING THE PROSECUTION OF MISDEMEANORS, PETTY MISDEMEANORS, AND OR- DINANCE VIOLATIONS. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 3-0. 8. Amendment to Section 900.16 of the Zoning Ordinance Regarding Fairgrounds in R-l and R-2 Zones - Public Hearing Mayor Hinkle indicated that the ordinance amendment proposed is to allow, as a conditional use in R-l and R-2 residential districts, fairground facilities. The City Administrator indicated that the amendment has been proposed as a con- ditional use and not a permitted use, so that the City Council may deal with items such as noise, traffic, screening and other related factors which might provide a nuisance to properties surrounding the fairgrounds area. Councilmember Gunkel indicated that the City's ordinance does not address fair- grounds at the present time. Mayor Hinkle indicated that because of the purchase of the Gospodor property, it became apparent that the City Council must address fairgrounds in their ordinance. Mayor Hinkle opened the public hearing. Discussion was carried on regarding the impact the ordinance would cause on the neighboring residents. The City Administrator indicated that it could allow the fairgrounds to expand their facilities, but that the County would have to approach the City for a conditional use to expand or change the facility and at that time, the City Council would hold a public hearing, reviewing the conditional use and then could place various conditions on that conditional use. Mayor Hinkle indicated that strings could be attached to a conditional use and therefore, the City can control what would happen at the County fairgrounds, re- garding expansion, noise and screening. COUNCILMEMBER GUNKEL MOVED TO APPROVE ORDINANCE 84~3, AN AMENDMENT TO SECTION 900.16 OF THE ZONING ORDINANCE REGARDING FAIRGROUNDS IN R-l AND R-2 RESIDENTIAL ZONES. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 9. Newland Conditional Use Permit Request - Public Hearing The City Administrator indicated that Mr. Peter Newland at 20140 Vance Street has requested a home occupation permit to make and sell pottery from his residence. The City Administrator indicated that the Planning Commission reviewed Mr. Newland's request and voted unanimously to approve the conditional use, with the restrictions that the hours of sales are 8:00 a.m. until 10:00 p.m. and that Mr. Newland not be allowed to hire more than one non-resident employee. The City Administrator fur- ther indicated that the Planning Commission approved the conditional use for a two- year period. The City Administrator indicated that the generation of additional traffic as a result of a home occupation is dealt with in the standards for a home occupation permit. City Council Minutes February 21, 1984 Page Four --, Mr. Peter Newland indicated that he was an arts and math teacher in the Elk River School District. Mr. Newland indicated that he did not intend to make any changes in his operation and that the home occupation permit was just to make his studio legaL Mayor Hinkle opened the public hearing. Mr. Glen Sundeen indicated that he felt their area, Knollwood, was a nice quiet residential area and not a place for businesses. Mr. Sundeen indicated that Mr. Newland had signs in the area last fall which fell down and did not make the neighborhood an attractive place. Mayor Hinkle indicated that the City can control the signing through the home occupation ordinance. Mayor Hinkle further indicated that home occupations are not an uncommon practice. Mr. Garland Johnson questioned the advertising allowed and the traffic situation. The City Administrator indicated that the ordinance allows for a sign on the home and that the people in the neighborhood would be the best monitors of traffic. Mr. Peter Newland again emphasized that he was intending to keep the operation just as it has been in the past. Mr. Newland indicated that he perhaps has twelve customers a year that come to the home. Mr. Newland further indicated that he has designed his home and the studio to suit the whole house and neighborhood. Councilmember Engstrom expressed his appreciation of Mr. Newland and his artistic ability in teaching children. Councilmember Engstrom indicated his appreciation of someone that is that enthusiastic about his creative ability to continue to practice and learn. COUNCILMEMBER SCHULDT MOVED TO GRANT A CONDITIONAL USE PERMIT FOR A HOME OCCUPATION TO PETER NEWLAND WITH THE RESTRICTIONS THAT THE HOURS OF SALE ARE FROM 8:00 A.M. TO 10:00 P.M., 7 DAYS A WEEK, THAT THERE BE ONLY ONE NON-RESIDENT EMPLOYEE ALLOWED AND THAT THE PERMIT BE REVIEWED IN TWO YEARS. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. COUNCILMEMBER GUNKEL MOVED TO AMEND THE MOTION TO ALSO INCLUDE THE RESTRICTION THAT THERE WILL BE NO INSTRUCTIONAL CLASSES HELD AT THE LOCATION. COUNCILMEMBER SCHULDT SECONDED THE AMENDMENT TO THE MOTION. THE AMENDMENT TO THE MOTION PASSED 3-0. THE MAIN MOTION PASSED 3-0. 10. Masonic Lodge Variance Request - Public Hearing Mayor Hinkle indicated that the Masonic Lodge has requested a variance in the City's Zoning Ordinance pertaining to non-conforming uses. Mayor Hinkle further indicated that the variance request is to allow more than one business to be located in the Masonic Lodge building. Mr. Gary Gunderson, representative of the Masonic Lodge, indicated that their variance request to allow for up to four users for the Masonic Lodge, was based City Council Minutes February 21, 1984 Page Fiye on the concern that sometime in the futu~e, the Medisc~een bu~ine~s may terminate their lease and further, at the present time, there are two companies located in the lodge building. Mr. Gunderson indicated that the Lodge pay~ approximately $8,000 in taxes and indicated that should Mediscreen leave, they would be hard~ pressed to find one occupant to take up the total space of the Masonic Lodge. Mr. Gunderson indicated that the 100 members of the Lodge cannot meet the taxes, therefore, it is necessary that they lease part of the space. Mr. Gunderson indicated that Industrial Health and Hygiene, Mediscreen, at the present time employs approximately 20 people and further indicated that should four office- type occupants rent the space, they may not have more than twenty people combined. Mr. Gunderson indicated that the Masonic Lodge's intent is to rent the space, primarily because of tax reasons, and that their intent is to have occupants that would not distract from the neighborhood or cause an adverse impact on the neighborhood. Councilmember Schuldt expressed his concerns regarding the Masonic Lodge variance request. Councilmember Schuldt indicated that he was concerned about the character of the neighborhood with a commercial business and further indicated that he felt the allowing of three more additional businesses in that building in that neighbor- hood would create increased traffic in the neighborhood. Councilmember Schuldt indicated that he felt the increase of businesses in the neighborhood would create a devaluation of the property and of future development in the neighborhood. Councilmember Schuldt further indicated that recently the City Council denied a zone change to allow for two-family housing in the neighborhood due to the increased traffic that the two-family housing would create. Councilmember Schuldt indicated that the City Council would not allow more than one home occupation in a residence in the particular neighborhood and that the allowing of up to four businesses in the Masonic Lodge would create an unfair situation to the family environment created in the neighborhood. Councilmember Schuldt indicated that by granting the variance, the Masonic Lodge could, in fact, rent to three more Mediscreen- type businesses. Councilmember Schuldt further indicated that the City Council does not have any control over the types of businesses that would occupy the space, the amount of vehicles, people and traffic that those businesses could create. Councilmember Schuldt indicated that inasmuch as Mediscreen is not leaving the Masonic Lodge location, the request for four businesses to occupy the space is premature and therefore, he was opposed to granting the variance request. Mayor Hinkle opened the public hearing. Mr. Ralph Garner, a resident of the area, indicated that he felt the Mediscreen operation was an eye-sore to the neighborhood and requested that the City Council put a stop to it as soon as possible. Mr. Tom Johnson indicated that he was opposed to the variance request by the Masonic Lodge, as the residents of the area are unhappy with the one occupant now located in the Masonic Lodge. Mr. Johnson indicated that he felt the parking lot of the Masonic Lodge looked like a recreational vehicle sales lot. Mary Beck indicated that Councilmember Schuldt expressed their concerns very well. Mr. Jim LaRock, member of the Coon Rapids Lodge, indicated that Mediscreen is not requesting the opportunity to put four businesses in at the present time, but further, that should Mediscreen move out in the future, the Lodge would be able to place up to four businesses in their building. Mr. LaRock expressed his City CQuncil Minutes Fehruary 21, 1984 Page Six ohjection to the eyesore, citing various other examples in the area of undesirable sites. Mr. LaRock further indicated that the trees that the Lodge has planted for screening are developing, that the parking lot will be improved, and that the traffic in the area does not seem to be a specific issue. Mr. LaRock indicated that Mediscreen currently has a long term lease, but should they leave, or go bankrupt, the Lodge would be in trouble to find a large business to occupy the space; therefore, they are requesting the possible ability to rent to up to four businesses. Mr. Howard Triggs, a Demolay advisor, indicated that many of the boys drive to their meetings and do create traffic in the area, but this traffic is in the community, and the Lodge is the community. Mr. Triggs indicated that the boys need a place to meet and should the Masonic Lodge lose Mediscreen and not be able to find one occupant, they would be forced to perhaps sell their building. Mr. Triggs indicated that the Masonic Lodge is simply looking to the future in their request. Mr. Roskaft, a representative of the Masonic Lodge, indicated that at the time the building was built, the plans were made for various professional offices, and the changes were made to accommodate Mediscreen. Mr. Roskaft indicated that the original intent of the building was to allow exactly what the Lodge is now requesting. Discussion was carried on regarding nonconforming uses and the specific example of the spot zoning of the Masonic Lodge. Discussion was also carried on regarding the amortization period of the Masonic Lodge type of building. The owner of Lakeland Communications indicated that the building was suitable to his needs, as he was a small business. The owner of Lakeland Communications indicated that he was interested in staying at the location, but should the City Council not grant the variance, he would understand that he would have to leave. Mr. Ken Warneke, Treasurer of the Lodge, again indicated the reason for the Masonic Lodge request. Mr. Warneke indicated that the process of obtaining a variance to allow for more than one occupant would take approximately three to four months, which would mean a loss of income to the Masonic Lodge, should Mediscreen leave. Mr. Warneke indicated that the Masonic Lodge was just looking toward the future and requesting the variance, should it become necessary. Mr. Warneke indicated that it is not the Masonic Lodge's intent to cause a disruption to the neighborhood. Further discussion was carried on regarding the length of the Mediscreen lease and the vacant property adjacent to the Masonic Lodge property. Mr. Bill Bailey, owner of the vacant property, indicated that he did not have an objection to the variance request by the Masonic Lodge. Councilmember Engstrom indicated that he looked at the issue as a division of space issue, rather than an increase of occupancy issue. Councilmember Engstrom indicated that the Masonic Lodge could hold four different uses, using five hundred square feet, or two uses using one thousand square feet, or one.use using two thousand square feet and that it was basically a division of the space, as there were no plans to add space to the Lodge. Councilmember Engstrom indicated that he felt it would be unjust to deny the Masonic Lodge the variance request as it is a City Council Minutes February 21, 1984 Page Seven request for the future, should the Masonic Lodge lose the tennant they now have. Councilmember Engstrom indicated that he felt the Masonic Lodge was an asset to the community and therefore, was in favor of granting the variance request for the division of space. Councilmember Gunkel indicated that the building was there, it was a nonconforming use but that the amortization period for the nonconforming use was sixty years. Councilmember Gunkel indicated that should the Masonic Lodge have financial problems and the building were to be sold, what were the alternatives? Councilmember Gunkel further indicated that she viewed the request as Councilmember Engstrom did; that is, that it was a request for the division of space. Councilmember Gunkel further indicated that new types of businesses could perhaps be less disruptive to the community than the present occupant. Councilmember Gunkel further indicated that the City Council could place various conditions and restrictions on the variance, should it be granted. General discussion was carried on regarding the types of businesses that could occupy the Masonic Lodge, number of vehicle restrictions that could be placed upon the Masonic Lodge, and the various ways the conditional use could be handled by the City Council. The City Administrator indicated that the City Council could deal with specific concerns through the conditions in the granting of the variance request. Further discussion was carried on regarding the type of renters, the location of the pro- perty, and business controls that could be placed on the variance request. Discussion was also carried on regarding the granting of the variance with the two- year condition and should it not be used, would the variance request lapse. The City Administrator indicated that if the variance request was not used, it would lapse if the two-year condition was placed on the variance, but further indicated that with the Lakeland Communications occupying the Lodge, the variance request would be implemented. COUNCILMEMBER GUNKEL MOVED THAT THE PUBLIC HEARING FOR THE MASONIC LODGE NONCONFORMING USE VARIANCE REQUEST BE CONTINUED UNTIL SUCH TIME THAT A MEETING BETWEEN REPRESENT- ATIVES OF THE MASONIC LODGE, REPRESENTATIVES OF THE NEIGHBORHOOD AND THE CITY COUNCIL BE HELD TO DISCUSS THE CONDITIONS OF THE VARIANCE REQUEST. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 3-0. A joint meeting of three Masonic Lodge representatives, three neighborhood repre- sentatives and the City Council was scheduled for March 6th at the Masonic Lodge at 7:30 p.m. 11. Pay Estimate for Gates Avenue Improvement Project COUNCILMEMBER SCHULDT MOVED TO APPROVE PAY ESTIMATE NUMBER 6 FOR THE GATES AVENUE IMPROVEMENT PROJECT IN THE AMOUNT OF $75,107. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 3-0. 11~.Transient Merchant Ordinance Amendment The City Administrator indicated that the ordinance amendment was basically proposed City Council Minutes February 21, 1984 Page Eight to clean up the Transient Merchant Ordinance by including the words "in this City" in Section 1, item 2, of the ordinance and to require that background information be supplied for all salesmen, should a particular business like Electrolux apply for the Transient Merchant Ordinance. The City Administrator indicated that the words "in this City" simply clarifies the allowance of hawkers or-peddlers to sell within the City of Elk River. COUNCILMEMBER GUNKEL MOVED TO APPROVE ORDINANCE 84-2, AN ORDINANCE AMENDING SECTION 722.00 OF THE TRANSIENT MERCHANT ORDINANCE. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0. 12. Administrator's Update A. Highway #10 Improvement The City Administrator indicated that in his meeting with the Design Engineer for the Minnesota Department of Transportation associated with the Highway #10 improvement project, it was determined that it appears that the Highway #10 improvement project will be constructed over the next two seasons, rather than completely in this construction season as originally anticipated. The City Administrator further indicated that the Minnesota Department of Trans- portation plans are to have some minor disruptions on Highway #10 in this calendar year, but that the majority of the work including the signal at the intersection of Main Street and Highway #10 would be in the 1985 construction season. B. Board of Review Date The City Administrator indicated that the Board of Review is scheduled for May 15, 1984, at 7:00 p.m. C. Downtown Redevelopment The City Administrator indicated that he and Mayor Hinkle had met with the Board of Directors of the Downtown Redevelopment group regarding the pro- posed Kraus Anderson project. The City Administrator indicated that it appears the Kraus Anderson project is not workable and that Kraus Anderson is stepping out of the Downtown Redevelopment plans. The City Administrator further in- dicated that the Downtown Redevelopment group is formulating some new ideas regarding the downtown project. The City Administrator indicated that the Bank of Elk River has purchased the Crossroads Cafe and that he would be meeting with Jim Simpson, President of the bank, to discuss their projected plans for development. The City Administrator further indicated that the townsquare project concept has again come to the attention of the downtown group. The City Administrator further indicated that there is also the possi- bility of the redevelopment of the Coast to Coast building and Marty's Auto with some rehabilitation and face lifting done on the Jackson Street stores. The City Administrator indicated that he would be meeting with Mr. Zack Johnson to discuss some of the possibilities of the downtown project. The City Admin- istrator further indicated that the development projects may be done on a smaller scope and accomplished with local support. City CQuncil Minutes February 21, 1984 Page Nine 13. Check Register COUNCILMEMBER SCHULDT MOVED TO APPROVE THE FEBRUARY 2l, 1984 CHECK REGISTER. COUNCIL- MEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 3-0. 14. Tentative Agenda The Dave Dahlberg hearing and the budget are scheduled for the February 27, 1984 City Council meeting. There being no furthe~ business, COUNCILMEMBER SCHULDT MOVED THAT THE MEETING BE ADJOURNED. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 3-0. O~ft ~tted. 'L Phyllis BOedigheim~ City Clerk/Treasurer PB:st