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11-22-1982 CC MIN REGULAR WEEKLY SCHEDULED MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY NOVEMBER 22, 1982 Members Present: Mayor Hinkle, Councilmembers Schuldt, Engstrom, Toth and Duitsman Members Absent: None The meeting was called to order at 7:30 p.m. by Mayor Hinkle. 1 . Agenda Item 3~ - Railroad Drive Parking Lot and Item 5~ - Planning Commission; a. - Appointment, and b. - Conference, were added to the November 22, 1982 City Council Agenda. COUNCILMAN ENGSTROM MOVED TO APPROVE THE NOVEMBER 22, 1982 CITY COUNCIL AGENDA AS AMENDED. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. 2. 1983 Revenue Sharing Funds for Police Department - Public Hearing Mayor Hinkle indicated that it has been proposed that the 1983 revenue sharing funds be used in the general fund specifically for the police department. Mayor Hinkle opened the public hearing. No one appeared in opposition of the proposed use of federal revenue sharing funds for the police department. COUNCILMAN TOTH MOVED TO AUTHORIZE THE USE OF THE 1983 FEDERAL REVENUE SHARING FUNDS IN THE 1983 GENERAL FUND BUDGET SPECIFICALLY FOR THE POLICE DEPARTMENT. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 3. Donahue Request of Issuance of Industrial Revenue Bonds - Public Hearing The City Administrator indicated that the City Council had previously approved the industrial revenue bonds for Eugene Donahue in October of 1981 and further indi- cated that the bond counsel is concerned with approval so far in advance of actual issuance of the industrial bonds and therefore, requested that the City Council again approve the request of the industrial revenue bonds for the addition to the post office facility. The City Administrator indicated that the dollar amount was the same as approved by the City Council in October of 1981. Mayor Hinkle opened the public hearing. No one appeared in opposition of the issuance of the industrial revenue bonds for the addition to the post office facility. COUNCILMAN ENGSTROM MOVED TO ADOPT RESOLUTION 82-27, A RESOLUTION AUTHORIZING THE ISSUANCE OF INDUSTRIAL REVENUE BONDS FOR EUGENE DONAHUE FOR AN ADDITION TO THE POST OFFICE FACILITY. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. 3!-,; 2. Railroad Drive Parking Lot Mayor Hinkle indicated that the businesses on the north side of the tracks are City Council Minutes November 22, 1982 Page Two having problems with parking spaces for customers as most of the spaces are used by commuters. Mayor Hinkle indicated that it was suggested to him by the business owners that a four hour parking time limit be established for the total parking lot across from those businesses. Councilman Duitsman suggested that the City try the four hour parking limit for that total parking lot. Mr. Con Johnson suggested that the City Council treat the businesses on the north side of the railroad tracks the same as on the south side, providing some contract parking spaces and a three hour time limit for customer parking. Mayor Hinkle indicated that he did have some problem with the consistency of the time limit parking on the south side of the tracks when the four hour time limit was suggested for the parking lot on the north side. Councilman Engstrom indicated that he did agree with Mr. Johnson's suggestion that contract parking be provided as well as three hour parking. Councilman Schuldt indicated that he also agreed with the suggestion of contract parking and three hour parking time limit. General discussion was carried on regarding the number of spaces necessary for contract parking. Councilman Duitsman ind.icated that he did agree with the suggestion of providing some contract parking but that the retailers. on the south side of the tracks asked for three hour parking time limit which the City Council approved and further indicated that if the retailers on the north side of the railroad tracks wanted four hour parking time limit, they should be able to have the four hour parking time limit. Councilman Schuldt indicated that the City Council consider what the Retailers' Association wanted, as all of the businesses were members of the Association. Councilman Schuldt further indicated that he felt the three hour parking time limit should be posted for the total parking area and that the businesses that wanted contract parking could use the already established contract parking lot. Councilman Toth indicated that there was some problem with vandalization in the commuter parking lot on Highway #169 and therefore, commuters wanted to park in the downtown business area. Councilman Toth further indicated that he felt the three hour time limit parking should be established for the parking lot on the north side of the tracks and that the need for contract parking should be de- termined. COUNCILMAN ENGSTROM MOVED TO AUTHORIZE THREE HOUR PARKING TIME LIMIT FOR THE TOTAL PARKING LOT ON THE NORTH SIDE OF THE RAILROAD TRACKS AND TO ALLOW FOR CONTRACT PARKING IF REQUIRED BY THE RETAILERS AT A FEE CONSISTENT WITH OTHER CITY CONTRACT PARKING. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. 4. Barthel Planned Unit Development Conditional Use Permit .;... Public Rearing Mayor Hinkle indicated that the proposal for a conditional use permit for the Barthel Planned Unit Development has been presented before the community a number of times before and further indicated that he would immediately open the public hearing to the public. City Council Minutes November 22. 1982 Page Three Mr. Rob VanVaulkenberg questioned exactly what was being presented before the City Council. The City Administrator indicated that the City Council would be asked to approve the preliminary plat for the Barthel Planned Unit Development. to approve a conditional use permit for the Planned Unit Development and to re- view the draft of the Developer's Agreement and the Planned Unit Development agreement. The City Administrator indicated that a phasing plan would be a part of the Planned Unit Development agreement. The City Administrator re- viewed the phasing plan for the public. Mr. Gary Santwire questioned the total of all phases of the commercial construc- tion equaling 105.000 square feet and further questioned the City's ability to specify that the forty units of housing constructed must be owner-occupied. The City Administrator indicated that it could be dealt with in the owner association for the townhouse sites. Mayor Hinkle indicated that he agreed with Mr. Santwire and felt that the City could not specify that the units must be owner-occupied. Mr. Gary Santwire indicated that the 105.000 square feet of commercial area plus the 45.000 square feet proposed for Parcel F is not consistent with the Re- Development Plan. Mr. Santwire also questioned the meaning of the proposed con- struction of forty units of housing in phase two. Mayor Hinkle indicated that it was meant to be some means of a barometer as to need in the City of Elk River for more commercial area. Mr. Santwire indicated that the sale of the proposed townhouses does not necessarily prove anything as. in his Planned Unit Develop- ment. 75 percent of his occupied townhouses are occupied by previous Elk River residents. The City Administrator indicated that the intent was to provide some kind of an indicator in concrete terms as to the need of more commercial development. The City Administrator further indicated that it may take more than one year to con- struct the forty units of housing and further indicated that the forty units is a negotiable amount. The City Administrator also indicated that other indicators could be used. Councilman Schuldt indicated that the Redevelopment Plan is a plan. a recommenda- tion. and is subject to change. The City Administrator indicated that the proposed Barthel Planned Unit Develop- ment or the proposed Barrington Place Planned Unit Development is either one on its own consistent with the Redevelopment Plan. and further indicated that if both were constructed. it would be more square footage than the proposed Re- development Plan. The City Administrator indicated that it is a financial de- cision regarding the development of the commercial areas of either of the Planned Unit Developments, but that the land use is consistent with the Redevelopment Plan. Mr. Con Johnson indicated that he felt time will tell regarding the need for the phasing of the commercial development in the Planned Unit Development and suggested that the City Council approve one phase at a time. City Council Minutes November 22, 1982 Page Four Ms. Estelle Gunkel contributed the following statement to the discussion of the Barthel Planned Unit Development project: "Members of the Council: In my oplnlon, the decision you make on this matter will have a major impact on the future of Elk River. I have spent too much time studying, researching, thinking, and discussing this particular PUD development to sit here silently. I have been involved with it since its inception both as a private citizen and as a member of the Planning Commission. I spent eight hours on this item alone getting ready for our October 26 Planning Commission meeting. I do not agree with the Planning Commission recommendation for approval of a conditional use permit that would allow a maximum of 150,000 square feet of commercial development (105,000 in main area and 45,000 in a separate area). We have a responsibility to provide a means for adequate facilities in Elk River" but not to the point of being ridiculous. I think that 150,000 sq. ft. has the potential of destroying any other commercial areas or of being a real disaster in its own right. The criteria for a planned unit development is very clearly spelled out in our zoning ordinances. Yet, the Barthel people have consistently muddled the entire process by not having adequate information and by continually changing the size and specs of the main commercial site. All of us (city staff, Planning Commission, and City Council) have allowed this to continue. It appears that all this messing around has resulted in a loss of credibility for the Planning Commission and the City Council. I would just like to comment that if this is an indication of how we and the Barthel people will continue to operate, I'm not looking forward.to the years ahead. It's been frustrating at best. After many months of discussion, the Planning Commission and City Council finally agreed on the indication to Barthel of approval for a maximum of 75,000 sq. ft. for the main site at completion of the project. Two of you even wrote letters to vote in favor of 75,000 sq. ft. maximum for this site in case you missed a meeting for a conditional use permit that was expected to be held in August. Now, true to form, they have come before you with a proposal for a maximum size of 105,000 in the main area alone. I'm just as tired as anyone else of discussing this issue. But not tired enough to say "Yes" just to get it off my back. I hope you have gone back over all your notes, information, and minutes from past meetings on this PUD. City Council Minutes November 22, 1982 Page Five Please note the difference in the wording of the phasing plan you are presented with now as opposed to the one agreed on in August. The August plan specified 75,000 sq. ft. Prior to our October Planning Commission meeting, I asked City staff to clarify the wording of the phasing plan that would accompany this latest size proposal of 105,000 (should this size be approved). I am very skeptical of the phasing plan. With the ownership and options involved here, things will have to be very well defined and agreed to by all involved. Even with that, there is potential for manipulation. I hope that the eventual Developer's Agreement will be very specific and inclusive. I urge you not to ignore the potential of other commercial areas, the 1982 market study, the recommendations of our City Planner, common sense, the economy, and the months of work to arrive at agreement on 75,000 square feet." Ms. Doris Anderson, a local retailer in the City of Elk River, expressed her opposition to the City Council's approval of the conditional use request by Barthel. Ms. Anderson indicated that with the state of the economy and the busi- ness slow-down in the City of Elk River, she felt the area could not support another shopping facility. Ms. Anderson indicated that the retailers in the City of Elk River have all experienced decreased sales and further indicated that she felt the timing was not right for an additional commercial shopping center in the City of Elk River. Ms. Anderson indicated that she felt the City of Elk River should have a good shopping center, nota second best strip mall, and that it should be built at the right time to promote a healthy business community in which all retailers could prosper. Ms. Anderson suggested that the City Council shelf the conditional use request for the Barthel Planned Unit Development at this time. Councilman Schuldt indicated that he felt the shopping center would not be built at this time and that it may not be built in 1983 or 1984, as the City must look at the water system first. Councilman Schuldt indicated that the City's current water system could not provide the necessary safety service for a shopping center and that the water system must be addressed first. Mr. Gary Santwire questioned the effect of the City's water system on his pro- posed Planned Unit Development. Mayor Hinkle indicated that a land use question was presented before the Council at this time and that the City Council cannot keep the developer from planning. Mayor Hinkle further indicated that with the current economic conditions, two shopping centers. could not be developed si- multaneously, but further indicated that the City Council is not in the position to decide which one can and which one cannot. Mayor Hinkle further indicated that the question before the City Council is a conditional use permit for the Barthel Planned Unit Development and further indicated that Mr. Barthel will determine when it is economically feasible to build the proposed shopping facility. General discussion was carried on regarding the size of the proposed facility and whether a mall could be built in the first phase of the commercial facility. City Council Minutes November 22, 1928 Page Six Mr. Murray Mills questioned the assessment of the needs and the so called "indicators" for the need of a shopping center facility. Mr. Mills indicated that there is always someone to sign on the dotted line, to be an entrepreneur, to go into business, and further indicated that many businesses fail every year and it ia the community that is hurt by these failures. Councilman Duitsman indicated that he approved of the proposed concept plan of the Barthel Planned Unit Development and further indicated that he felt the developers should come back to the City Council for approval of each phase after the first phase. Councilman Duitsman further indicated that he believed the City of Elk River would benefit from the development of a commercial shopping center. Mr. Rick Breezee, Building and Zoning Administrator for the City of Elk River, indicated that the City's water system must be addressed prior to any construction of a shopping center facility. Discussion was carried on regarding the City's water system and the need of an improved water system prior to the construction of a shopping facility. Mr. Jim LaRock asked who would pay for the improvement of a water system for the City of Elk River. The City Administrator indicated that the Comprehensive Water Study shows that the City of Elk River does not have sufficient water system at this time and that the City must improve its water system with or without commercial development. Councilman Duitsman questioned if the requirement for approval of each phase was included in the planned unit development agreement. The City Administrator indicated that the concept would be approved and that the developers would come to the City Council for approval with specific detailed plans of the next phase. The City Administrator further indicated that the development of each phase would not require a public hearing. Mayor Hinkle questioned the water issue and its effect on the downtown redevelop- ment plan. Mr. Terry Maurer, Consulting Engineers Diversified, indicated that the entire town is lacking in water storage. Mr. Maurer indicated that a more detailed test would have to be done for a particular area in order to determine specific needs. General discussion was carried on regarding the zoning of the area to a pun, and the requirements of a planned unit development. Mr. Jim LaRock asked why this specific area was zoned a planned unit development and what criteria was used. Councilman Engstrom indicated that the downtown retailers had hired the City's Planner, Mr. Zack Johnson, to do a study and it was Mr. Zack Johnson's criteria that determined the area currently zoned planned unit development along Highway #169 to be proposed for expansion of commercial development in the City of Elk River. Councilman Dutisman indicated that he felt the requirement of a public hearing before each phase of the planned unit development project should be included in City Council Minutes November 22, 1982 Page Seven the Planned Unit Development Agreement. Councilman Engstrom indicated that he felt the City Council should be able to stop and re-evaluate prior to the de- development of the next phase. Councilman Schuldt indicated that he did not have a problem with the requirement of a public hearing before each phase as there was no specific time table for the development of the PUD. Further discussion was carried on regarding the phasing of the project and the total concept. The City Administrator indicated that the concerns and comments of the City Coun- cil regarding requirement of a public hearing prior to the development of the next phase could be incorporated in the Planned Unit Development Agreement. COUNCILMAN TOTH MOVED TO APPROVE THE CONDITIONAL USE REQUEST FOR THE BARTHEL PLANNED UNIT DEVELOPMENT WITH THE SIX CONDITIONS AS SPECIFIED IN THE CITY AD- MINISTRATOR'S MEMO OF NOVMEBER 18, 1982, TO THE MAYOR AND CITY COUNCIL. COUNCIL- MAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. General discussion was carried on regarding the preliminary plat of the Barthel Planned Unit Development and the staff's proposed amendment to the preliminary plat. COUNCILMAN SCHULDT MOVED TO APPROVE THE BARTHEL PLANNED UNIT DEVELOPMENT PRE- LIMINARY PLAT WITH THE AMENDMENTS AS SPECIFIED IN THE CITY ADMINISTRATOR'S MEMO TO THE MAYOR AND CITY COUNCIL DATED NOVEMBER 18, 1982. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. The City Administrator reviewed the Planned Unit Development Agreement with the City Council and the changes suggested by the City Council to be incorporated in the final draft of the agreement; specifically, the concern of the owner- occupied requirements for the townhouse units and that a public hearing must be held prior to the beginning of the development of each phase. Discussion was also carried on regarding the uses in the Planned Unit Development; specifically, type of restaurant allowable. Discussion was also carried on regarding security requirements and it was the consensus of the City Council that this requirement be softened at least at the beginning of the construction and development of the Planned Unit Development. Mayor Hinkle indicated that he took exception to some comments made by the local citizens at the public hearing. Mayor Hinkle indicated that he felt many of the comments were based on the fact that they just wanted the City of Elk River to remain status quo; not to let anything happen, including water, sewer and streets. Mayor Hinkle further indicated that the City of Elk River is not immune to problems anymore than any other city and that the City must address the prob- lems of water, sewer and streets, expansion and development. The City Administrator also reviewed the Developer's Agreement with the City Council. It was the consensus of the City Council to authorize the City Ad- ministrator to incorporate the Council's comments and recommendations in the City Council Minutes November 22, 1982 Page Eight Planned Unit Development Agreement and.. iutQthe_Deve],oper '.8 Agreement. 5. Diseased Tree Removal Assessments - Public Hearing Mayor Hinkle indicated that this was a continuation of the public hearing held at the November 15th City Council meeting, regarding the assessment of the cost for removal of diseased trees. Mayor Hink,le closed the public hearing, as no one expressed opposition to the proposed assessment of the costs for the removal of the diseased trees to be spread over a three year period. COUNCILMAN TOTH MOVED TO APPROVE THE PROPOSED ASSESSMENT OF THE COSTS FOR THE REMOVAL OF DISEASED TREES TO THE FOLLOWING TWO PARCELS: 420 QUINN AND 1811 MAIN STREET TO BE PAID FOR OVER A THREE-YEAR PERIOD. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. 5~. Planning Commission A. Conference The City Administrator indicated that a planning institute was scheduled for November 30th from 8:30 a.m. to 4:30 p.m. at a cost of $25.00 per person at the Earl Brown Institute. The City Administrator further indicated that Estelle Gunkel and John Pearce have expressed their desire to attend the institute. COUNCILMAN ENGSTROM MOVED TO AUTHORIZE THE CITY TO PAY THE FEE FOR THOSE PLANNING COMMISSION MEMBERS THAT ARE INTERESTED IN ATTENDING THE PLANNING INSTITUTE. COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION PASSED 4-0. B. Planning Commission Appointment Councilman Toth indicated that the Planning Commission would have a vacancy effective January 1st, 1983, and further indicated that he would like to nominate Mr . Don Wille to fill that vacancy. Councilman Toth indicated that Mr. Don Wille has expressed an interest in serving the City of Elk River in the capacity of Planning Commission member. COUNCILMAN TOTH MOVED TO APPOINT MR. DON WILLE TO FILL THE VACANCY CREATED BY MS. ESTELLE GUNKEL'S RESIGNATION, EFFECTIVE JANUARY 1, 1983. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0., 5-3/4. Check Register COUNCILMAN TOTH MOVED TO APPROVE THE NOVEMBER 22, 1982 CHECK REGISTER. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. There being no further business, COUNCILMAN TOm MOVED THAT THE MEETING BE ADJOURNED. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. ~.ec.,tfully su~mitted, . ~' ~1!"" ":7 I j'- ......, , \-/~ ; I ""',1, ---. '...L /"'i ,i,r::/ s./. ,_,-.:...{!uo,_' /eye,- i (/l.,!",'JJ....Yr,.i.--\./ Phyl~s Boedigheimev' Deputy City Clerk/Treasurer PB:dk