4.1. DRAFT MINUTES (2 SETS) 10-15-2018
Special Joint Meeting of the
Elk River City Council and
Housing and Redevelopment Authority
Held at Elk River City Hall
Tuesday, September 4, 2018
Members Present: Mayor John J. Dietz, Councilmembers Jerry Olsen, Matt Westgaard,
Nate Ovall, and Jennifer Wagner; Chair Larry Toth, and
Commissioners Denny Chuba, Michelle Eder, and Louise Kuester
Members Absent: None
Staff Present: Economic Development Director Amanda Othoudt, Economic
Development Specialist Colleen Eddy, City Administrator Cal
Portner, and Recording Secretary/Sr. Administrative Assistant
Jennifer Green
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting was called to order at 5:45 p.m.
2. Downtown Redevelopment Project
Ms. Othoudt presented the staff report.
Chair Toth noted the school district building was not included in the report.
Ms. Othoudt indicated the school district building did not qualify for the
substandard test but doesn’t necessarily need to as over 70% of the buildings in the
proposed TIF district qualified as substandard.
Tom Kolar, 708 Main St. NW representing building X – spoke on behalf of the
owners of the building and stated they don’t wish to put any more funds into it but
they realize not doing so would make it difficult to sell a historic building built from
1903. He stated the building owners would welcome some type of program.
Steve Johnson, 309 Jackson Ave. NW representing building W (Antiques
Downtown) stressed the need for on-street and on-site parking.
Frank Galli, 315 Jackson Ave. NW representing building U (Pompeii Pizza)– stated
he has been owner of his building since the previous downtown re-development and
asked if this proposal is all just to assist in selling the school district building. He
stated he doesn’t think downtown needs more density to be viable and stated his
building has two profitable and viable businesses mainly in part to his recent building
renovations.
Ms. Othoudt stated the main purpose of this redevelopment concept was not just to
sell the school district building but also to take advantage of the opportunity to
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September 4, 2018
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review the entire downtown as a potential redevelopment project to find the highest
and best use of all downtown parcels, and include alleviating parking pressures in
some part by construction of a public parking ramp, thereby allowing the
opportunity for more people to patronize businesses downtown.
Alec Hendrickson, an 8-year employee of Pompeii Pizza, requested the city
consider moving the Farmers Market away from the downtown area and out of the
parking lot, stating its presence takes away customers from their businesses on
Thursdays and causes issues with customer parking.
Mr. Galli stated the only parking issues were on Thursdays during the Farmers
Market.
Debra Leedahl, owner of 323 Jackson Ave. representing building T (Kemper
Drug)– asked the HRA and Council what the next step would mean to her business.
She stated she would personally love to receive funds to assist her in making
improvements to her building but wasn’t sure about a parking ramp or dense
housing with retail space. She stated she was open to hear discussion of developer
ideas and wondered if the city could still veto any proposals.
Ms. Othoudt explained should the city move forward with this project, an assumable
option agreement would afford the city some sort of site control. She stated staff
recommends establishing a Request for Qualifications (RFQ) process instead of a
Request for Proposals (RFP) from developers to allow them to establish their vision,
strategy, and market themselves to the city to see if they’re qualified to do a
redevelopment project downtown. After receiving those RFQs, the city could
determine what, if any, of those submittals meet the standards the council/HRA
wishes to see in the downtown. Then the city would establish a development
agreement and move forward with the project. She stated the council and HRA have
the ultimate authority to determine what occurs and can dictate public input.
Councilmember Ovall clarified that if a developer wishes to purchase the property
they may do so and not require the surrounding property owners to be included in
their project.
Commissioner Chuba stated it wasn’t up to the HRA to tell a property owner what
to do with their building but the business owners decide if they wish to take part in
the creation of a TIF district. He also expressed concerns with businesses
remaining operable and viable during any construction or remodeling phases.
Aaron Smith, 212 Norfolk Ave NW – stated he thinks the downtown buildings are
a valuable asset and by removing them the city loses character in the area. He asked
questions regarding TIF funds and how it works for the business owners.
Ms. Othoudt provided a quick TIF overview. She also stated tax increment from the
district would be used to create a financing program for the Jackson Street properties
located within the district to make improvements to their buildings. She indicated a
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September 4, 2018
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study of the historic nature completed by the HRA and Historic Preservation
Committee analyzed the downtown buildings in 2002 but they were not considered
historic according to the National Park Service standards. She stated the next steps
would be to work on obtaining site control using an assumable option agreement
with a developer who would pay that cost later in the project. Sending out a RFQ for
developers to share their vision and suggest their goals based on the
frameworks/plans we have established would afford the city the flexibility and
follow our requirements of what we would like to see in the downtown.
Mr. Galli asked for comments regarding the redevelopment from 15 years ago and if
it was successful.
Mayor Dietz stated he felt the redevelopment from 15 years ago was a good idea but
the recession hit as soon as it began. He stated some recently purchased both
buildings and they are viable, and the main goal for both of those buildings was to
bring more people downtown. Perhaps it wasn’t a total success at the time but it
seems now to be a successful project.
Mr. Galli stated the density has helped a lot. He doesn’t think the downtown needs
more density. He stated there will be considerable costs to business owners even if
they receive funds to fix their businesses and how would the business remain viable
during construction.
Mayor Dietz stated that would be something to consider and businesses would need
to plan for during this project.
Chair Toth asked Mr. Galli if he felt there was adequate parking in downtown today.
Mr. Galli stated aside from the Thursdays when the Farmers Market occupies the
entire Jackson Avenue parking lot, he does feel there’s adequate parking downtown.
Chair Toth asked the question because he’s hearing from people stating there aren’t
enough parking spots as employees are using them.
Ms. Othoudt stated this project could potentially help with parking concerns but
noting the time constraints, she asked if the council had enough information to
move forward with the process of obtaining site control through an assumable
option agreement and send out an RFQ to seek requests from developers to provide
their vision and goals.
Councilmember Wagner stated she was not sold on the redevelopment project idea
and stated there were too many unanswered questions. She stated a more concrete
direction was required by city members to determine what they want this area to
look like and not receive that information from a developer.
Commissioner Chuba supports going to the next step as proposed by Ms. Othoudt,
noting they weren’t developers.
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Mayor Dietz stated he agreed with Commissioner Chuba and would be open to
receiving suggestions from a developer.
Commissioner Chuba requested the affected property owners provide their ideas to
the city with what they feel would be the best option for them.
It was the consensus of the HRA and City Council to continue this discussion at a
later date.
3. Adjournment
There being no further business, the meeting was adjourned at 6:29 p.m.
Minutes prepared by Jennifer Green.
___________________
John J. Dietz, Mayor
___________________
Tina Allard, City Clerk
Meeting of the Elk River City Council
Held at the Elk River City Hall
Monday, September 17, 2018
Members Present: Mayor John Dietz, Councilmembers Jerry Olsen, Nate Ovall, Matt
Westgaard, and Jennifer Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, City Attorney Peter Beck, Finance
Director Lori Ziemer, Planning Manager Zack Carlton, Senior
Planner Chris Leeseberg, Economic Development Director Amanda
Othoudt, Economic Development Assistant Colleen Eddy, Cable
Coordinator Jake Pace, Human Resource Manager Lauren Wipper,
Chief of Police Ron Nierenhausen, Special Services Sergeant Dan
Block, and Deputy Clerk Jessica Miller
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:00 p.m. by Mayor Dietz.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider September 17, 2018, Agenda
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to approve the September 17, 2018, agenda. Motion carried 5-0.
4. Consider Consent Agenda
Moved by Councilmember Wagner and seconded by Councilmember Olsen
to approve the following consent agenda:
4.1 September 4, 2018, minutes.
4.2 Check register, check numbers 107597-107780 as outlined in the staff
report.
4.3 Temporary On-Sale Liquor License – American Legion for October 7,
2018, with the following conditions:
1. Alcohol must be confined to an area enclosed by a fence with a
secured, controlled access.
2. Wrist band control is required for patrons 21 and over.
3. No one under 21 years of age is allowed in the alcohol area.
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4.4 Concrete quote received by Schmidt Curb Co. in the amount of
$43,624.40 for the concrete construction on the 6 ½ Street and Quinn
Avenue improvements.
4.5 Pay estimates as outlined in the staff report.
Motion carried 5-0.
5. Open Forum
No one appeared for Open Forum.
6.1 Volunteer of the Month
Mayor Dietz presented the September Volunteer of the Month award to John and
Bonnie Enstrom. He highlighted the following:
Hosts annual Veteran’s picnic at his Veteran’s Lake facility
Hosts Flag Day and Boy Scout Merit Day
Former Sons of the Legion Commander
Member of the Ramsey Environmental Policy Board
Member of the Minnesota Woodworker’s Association
Member of the Minnesota Dahlia Society
Yellow Ribbon Board member in Elk River and Big Lake
CAER volunteers
Received two Congressional Medals of Honor for citizenship
6.2 Safe Roads Grant
Special Services Sergeant Block presented the staff report.
Cody Vojacek, Safe Roads Grant Coordinator, and Roxanne Schreder, Sherburne
County Sheriff’s Office, presented information on the Safe Roads Grant and
Towards Zero Death. They outlined the partnership between the two programs and
how the programs benefit the citizens in Sherburne County.
6.3 On the Job Videos
Mr. Pace presented the staff report.
The Council randomly drew the following job assignments out of a bowl:
Mayor – code enforcement
Councilmember Olsen – wetland delineation
Councilmember Westgaard – park maintenance
Councilmember Ovall – wastewater
Councilmember Wagner - arena
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September 17, 2018
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Councilmembers Olsen and Westgaard switched jobs so Councilmember Olsen will
be doing the park maintenance and Councilmember Westgaard will be doing the
wetland delineation.
Mr. Pace indicated staff will contact the Councilmembers.
6.4 Proclamation: Constitution Week
Mayor Dietz read the proclamation. He presented it to Daughters of the American
Revolution member Marilyn Schroeder.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to proclaim September 17 – 23, 2018, as Constitution Week. Motion
carried 5-0.
6.5 Proclamation: Minnesota Manufacturer’s Week
Mayor Dietz read the proclamation.
Moved by Councilmember Ovall and seconded by Councilmember Westgaard
to proclaim October 1 – 7, 2018, as Minnesota Manufacturer’s Week. Motion
carried 5-0.
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6.6 Proclamation: Elk River Area Chamber of Commerce 50
Anniversary
Mayor Dietz read the proclamation. He presented it to Chamber of Commerce
Executive Director Debbi Rydberg.
Moved by Councilmember Olsen and seconded by Councilmember Ovall to
proclaim September 26, 2018, as Elk River Area Chamber of Commerce Day.
Motion carried 5-0.
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7.1 Monroe Estates, Monroe Street and 221 Avenue NW
A. Zone Change from R-1A to Planned Unit Development
B. Conditional Use Permit to Establish a Planned Unit
Development
C. Preliminary Plat of Monroe Estates
Councilmember Wagner abstained from discussion due to a conflict of interest. She
stepped down from the Council dais.
Mr. Leeseberg presented the staff reports for all three items.
Mayor Dietz opened the public hearings for all three items.
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Christopher Scheff, 10396 221 Ave NW, purchased his land in 2013 and was told
by a police sergeant at that time that if the area around him was developed he may
lose the ability to gun hunt on his property. He is in favor of keeping the
development at 2.5 acres to minimize the effect on the neighbors.
Mayor Dietz asked if the blue area on the hunting map exhibit is all Mr. Scheff’s
land. Mr. Scheff indicated only a portion of his land is included in the affected area.
He noted it may not affect his hunting but may affect his neighbors.
Angela Jensen, 10123 221st Ave NW, stated the area has a lot of wetlands and
wildlife and fears that will be lost if the area is developed. She asked the Council to
require the developer to plant trees to buffer her property from the development.
Mr. Leeseberg indicated the developer is not required to plant trees beyond the
ordinance requirements but the Council has some discretion because the request is
for a Planned Unit Development.
There being no one else to speak on these issues, Mayor Dietz closed the public
hearings.
Zone Change
Councilmember Westgaard responded to Mr. Scheff’s comments. He indicated the
500-foot setback for the hunting area will be in place regardless if the lots are
developed as 1.5 or 2.5 acres. He noted the area will likely face additional hunting
restrictions as more people in the area develop.
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Councilmember Westgaard stated it is his understanding 221 Avenue is a future
arterial to Highway 169 and the county may wish to limit access points. He
questioned if Sherburne County reviewed this item, specifically the proposed cul-de-
sac on Street A (Johnson Street). Mr. Leeseberg indicated the county reviews all plat
requests and had no comments on this request.
Bill Christian, applicant, explained his goal in using the cul-de-sacs was to keep as
much distance as possible from surrounding properties.
Councilmember Westgaard indicated he would like to see Street A (Johnson Street)
as a through street for future connections. Mayor Dietz concurred.
Councilmember Ovall questioned if emergency services would be able to turn
around if Street A (Johnson Street) is constructed as a through street but not
connected yet. Mr. Leeseberg indicated it would be a temporary cul-de-sac until
connection.
Mayor Dietz stated he understands Ms. Jensen’s concerns but the developer owns
the property and has a right to develop it.
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Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to adopt Ordinance 18-13 to rezone certain property from Single Family
Residential (R1a) to Planned Unit Development with the following
conditions:
1. The Conditional Use Permit establishing a PUD must be approved by
the City Council.
2. A PUD Agreement must be approved by the City Council prior to
recording the Zone Change.
Motion carried 4-0. Councilmember Wagner abstained.
Conditional Use Permit
Councilmember Olsen indicated he feels the current requirement for two trees per
lot is sufficient.
Councilmember Westgaard agreed the developer has worked to create a buffer but
he urged Mr. Christian to work with the neighbor to create more of a buffer if
possible.
Moved by Councilmember Westgaard and seconded by Councilmember Ovall
to approve a Conditional Use Permit with the following conditions to satisfy
the standards set forth in Section 30-654:
1. A PUD Agreement shall be developed and signed by both parties prior
to the recording of the play and issuance of any building permits.
2. Approval of a concept plan pursuant to the procedure set forth in 30-
1564.
Motion carried 4-0. Councilmember Wagner abstained.
Preliminary Plat
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to approve the Preliminary Plat for Monroe Estates with the condition
the plat is updated to reflect comments in the email dated September 11, 2018.
Motion carried 4-0. Councilmember Wagner abstained.
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7.2 Conditional Use Permit: Private Kennel at 13490 214 Lane NW
Mr. Leeseberg presented the staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz closed the public hearing.
Moved by Councilmember Olsen and seconded by Councilmember
Westgaard to approve the Conditional Use Permit for a Private Kennel at
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13490 214 Lane NW, with the following conditions:
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1. The private kennel shall be limited to nine (9) animal units. Additional
animal units will require an amendment to the Conditional Use
Permit.
2. The removal of animal waste shall comply with Section 10-9. All on-site
waste shall be picked up and properly disposed of daily.
3. All dog waste shall be cleaned up immediately when dogs are off of the
subject property.
4. The applicant shall receive a private kennel license from the city.
5. All animals must be licensed and vaccinated in accordance with city
ordinances.
6. No dogs designated as dangerous or potentially dangerous are allowed
to be kept on site, and the keeping of a dangerous or potentially
dangerous dog shall be grounds for revocation of the permit.
7. No more than six (6) animal units shall be allowed outdoors at one
time.
Motion carried 5-0.
7.3 River Walk Apartments – 17354 Zane Street NW
A. Right-of-way Vacation: Zane Street NW
B. Simple Plat: River Walk
C. Zone Change: FAST (The Point) to PUD
D. Conditional Use Permit to Establish a Planned Unit
Development
Mr. Carlton indicated the applicant met with staff and asked for this item to be
continued until October 15, 2018, in order to submit revised plans.
Mayor Dietz opened the public hearings.
Dan Anderson, Briggs Companies, indicated they had good conversation with staff
and want to revise their proposal.
Councilmember Ovall questioned if Mr. Briggs had any comments about the DNR
conditions.
Pat Briggs, Briggs Companies, indicated he reviewed the DNR conditions with his
engineer and there were no issues.
Mr. Briggs distributed handouts of police reports from the Saxon site.
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to continue the River Walk public hearings to October 15. Motion
carried 5-0.
8.1 Economic Development Authority and Housing Redevelopment
Authority Tax Levies
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Ms. Othoudt presented the staff report.
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to adopt resolution 18-54 authorizing the preliminary Economic
Development Authority tax levy. Motion carried 5-0.
Moved by Councilmember Wagner and seconded by Councilmember Ovall to
adopt resolution 18-55 authorizing the preliminary Housing and
Redevelopment Authority tax levy. Motion carried 5-0.
8.2 Set Budget Meeting Date and Adopt 2019 Tax Levy
Ms. Ziemer presented her staff report.
Mayor Dietz clarified 6.9% General Fund budget increase is due to the recognition
of certain state aid/grant expenditures and offsetting revenues and is really only a
5.3% increase when compared with 2018.
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to adopt resolution 18-56 authorizing the proposed property tax levy for
collection in 2019. Motion carried 5-0.
Moved by Councilmember Wagner and seconded by Councilmember Olsen
to set the budget meeting for December 3, 2018, at 6:30 p.m. at which public
comment will be taken. Motion carried 5-0.
8.3 Fire Chief Position Description
Ms. Wipper presented the staff report.
Moved by Councilmember Wagner and seconded by Councilmember Olsen
to approve the fire chief position description as presented. Motion carried 5-0.
8.4 Chief Cunningham Compensation
Mr. Portner presented the staff report.
Mayor Dietz stated he would be willing to compensate former Chief Cunningham
$6,318 because documentation and analysis can support that amount as outlined in
Mr. Portner’s memo dated July 16, 2018. The Council concurred.
Moved by Councilmember Wagner and seconded by Councilmember Olsen
to approve an addendum to former Fire Chief John Cunningham’s separation
agreement with $6,318.00 in back pay. Motion carried 5-0.
Council recessed at 7:38 p.m. in order to go into work session. Council reconvened
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at 7:46 p.m.
9.1 Review and Revise Current Dangerous and Potentially Dangerous
Dogs City Ordinance
Chief Nierenhausen presented the staff report. He explained the city’s ordinance is
more restrictive about proper enclosures than state statute. He reviewed the proper
enclosure requirements outlined in the city code.
Chief Nierenhausen indicated the city has a current dangerous dog situation and the
owner has a wooden fence but according to ordinance the fence would not be
considered a proper enclosure for the dangerous dog. He stated city prosecutor
Attorney Scott Baumgartner agrees with changes to the ordinance to mirror state
statute as it will give the Police Department flexibility to review each case and make
sure to provide for citizen safety.
The Council concurred with the change. Chief Nierenhausen will bring it back for
formal approval.
9.2 Saxon Property Concept Review
Mr. Carlton presented the staff report.
The Council concurred with the Planning Commission’s comments by not
supporting a proposal to establish a mini-storage facility as the FAST study guides
the property to high-density residential uses. The Council also expressed interest in
the site by utilizing the close proximity to the river and trails.
10. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 8:03 p.m.
Minutes prepared by Jessica Miller.
___________________
John J. Dietz, Mayor
___________________
Tina Allard, City Clerk