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8.2. SR 07-15-2019 Request for Action To Item Number Mayor and City Council 8.2 Agenda Section Meeting Date Prepared by General Business July 15, 2019 Zack Carlton, Planning Manager Item Description Reviewed by Hilltop Woods Estates Second Addition, 20655 Peter Beck, City Attorney Victoria Drive Reviewed by  Easement Vacation Cal Portner, City Administrator  Plat of Hilltop Woods Estates Second Addition Action Requested Adopt, by motion, a resolution approving or denying the proposed vacation of existing roadway easements on Lot 4, Block 1, Hilltop Woods Estates. Adopt, by motion, a resolution approving or denying the plat of Hilltop Woods Estates Second Addition. Background/Discussion Case Nos. EV 19-02 & P 19-08 The City Council reviewed the proposed easement vacation and plat on June 17, 2019, and directed staff to return with two resolutions one approving and one denying the plat and easement vacation. Since the last meeting, attorneys for both the applicant and the neighbors opposed to the subdivision submitted letters regarding the application. Following staff and legal counsel review, we find that the 1993 Developer Agreement, which following the practice at that time, was not approved by the City Council, does not create a negative restrictive easement on the property and is not a legally sufficient basis for denial of this subdivision. Additionally, Condition 7 included in Council’s approval of the plat on May 17, 1993, requires that “A Developer Agreement is entered into reflecting the stipulations of approval.” The 11 conditions of approval do not prohibit development of additional lots north of Victoria Drive prior to a connection to the city street system north of Victoria Drive. Meaning, the prohibition of lots described in the Developer Agreement was not a condition imposed by the City Council as it was not a condition of approval for the final plat, and the Council did not formally approve the Developer Agreement, and inherently the limit to future development. As the limit to development was not directly approved by the City Council in 1993, the limit should not be considered when reviewing the current request. Finally, the language relied on in the Developer Agreement as a basis to deny this proposal to split lot 4 into two lots is entitled “Future Phases” and reads, in its entirety: (01) Future Phases - The Subdivision is the first phase of a development which may include future lots. Final plat approval of future phases will be subject to such conditions as shall be imposed The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity by the City Council at the time of final plat approval, including extension of Victoria Drive through the Subdivision to the north. No more lots will be allowed on Victoria Drive until and unless a connection to the City street system is made to the north so that Victoria Drive is no longer a dead end street. This language contemplates a multiple lot future phase accessing an extension of Victoria Drive and requires then an extended Victoria Drive be connected to the north. This language does not contemplate, or prohibit, a split of lot 4 into two lots with no extension of Victoria Drive. The proposed plat of Hilltop Woods Estates Second Addition satisfies the city’s standards for approval of a subdivision. Enforcement of the Developer Agreement would ultimately be a private matter that residents of the neighborhood could pursue without city involvement. Financial Impact None Attachments  Council Packet dated June 17, 2019  Resident Letter dated June 11, 2019  Linda Schultz Letter submitted July 11, 2019  Larkin Hoffman Letter dated July 9, 2019  Felhaber Larson Letter dated July 11, 2019  Resolution approving the Easement Vacation  Resolution denying the Easement Vacation  Resolution approving the plat of Hilltop Woods Estates Second Addition  Resolution denying the plat of Hilltop Woods Estates Second Addition ATTORNEYS AT LAW Thomas J. Radio 612-373-8420 Facsimile: 612-338-4608 tradio@felhaber.com July 11, 2019 VIA E-MAIL peter@peterbecklaw.com Mr. Peter K. Beck Beck Law Office 4746 Sheridan Avenue South Minneapolis, MN 55410 RE: HILLSTOP WOODS ESTATES, SECOND ADDITION 20655 VICTORIA NW, ELK RIVER, MN Linda Schultz Lot Split Application Our File No: 32012.001 Dear Mr. Beck: I represent Linda Schultz, who is a co-applicant in the above-referenced matter. After reviewing the key documents concerning the proposed lot split and the meeting minutes that reflect the concerns of the neighbors, I have advised Ms. Schultz that the Elk River City Council has a reasonable basis to approve the lot split application as proposed. The chief objection of the neighbors is a concern about increased traffic on Victoria Drive from the development of additional lots. They also point to the original Development Agreement as a legal bar to the lot split. But, neither is a reason to deny the application. 1. The lot split will create only one new lot, upon which only one single-family residence will be built. The traffic generated from one home will hardly create a traffic congestion or safety problem; and 2. The 1993 Development Agreement is no longer legally effective to block this lot split, which does not require Victoria Drive to be lengthened or substantially changed from its original and approved design. The 1993 Development 220 South Sixth Street Suite 2200 Minneapolis, MN 55402-4504 Phone: 612-339-6321 Fax: 612-338-0535 felhaber.com Mr. Peter K. Beck July 11, 2019 Page 2 Agreement was between the City and the original developer. By its owns terms, the Development Agreement has been satisfied and is no longer operative and is certainly not binding upon the current owners of the property. Additionally, the Elk River City Council never formally approved the Development Agreement. Accordingly, Ms. Schultz respectfully requests that her lot split application be approved as supported by the following findings: 1. The lot split will create only one new lot. 2. Any further subdivision of either newly created lot will have to be approved by the City and may be conditioned upon extending Victoria Drive. 3. The applicants and the purchasers of the newly created vacant lot will agree to no further subdivision of their parcels without City approval, which could includeas a condition of approval the construction of a road extending Victoria Drive to the north. 4. The creation of an additional lot on Victoria Drive will not create any traffic safety or congestion problems. 5. The 1993 Development Agreement between the City and the original developer has been satisfied and no longer controls the applicant in the development of this property. 6. The 1993 Development Agreement was never formally approved by the Elk River City Council. 7. The application meets all 8 applicable developments regulations, as described in the City Staff Report, prepared for the June 3, 2019, City Council meeting. 8. The creation of the additional lot on Victoria Drive will not require Victoria Drive to be lengthened and the variance granted for Victoria Drive as a legal cul-de-sac is still valid and operational. 9. The City recently approved another driveway opening onto Victoria Drive from the property owned by Paul and Catherine Juenemann, which is adjacent to the applicants’ property, and the 1993 Development Agreement was not found to be a bar to that approval. 3149180.v1 Mr. Peter K. Beck July 11, 2019 Page 3 10. The approval of the application will result in the donation of a substantial amount of acreage to the City. 11. The lot split will not have a detrimental effect on the character of the neighborhood. If you need any further information about the application, please contact me. Thank you for your consideration of these comments. Very truly yours, /s/ Thomas J. Radio Thomas J. Radio TJR/ope cc: Ms. Linda Schultz (Via e-mail) 3149180.v1 City of Elk River City Council Resolution 19-____ A Resolution of the City Council of the City of Elk River Vacating Existing Drainage and Utility Easements on Lot 4, Block 1, Hilltop Woods Estates WHEREAS, pursuant to Minnesota Statutes Section 412.851, after two (2) weeks’ published and posted notice of the hearing and after mailing written notice of the hearing at least ten (10) days before the hearing to each property owner affected by the proposed vacation, the Elk River city Council conducted a hearing to consider the vacation of the easements legally described on the attached Exhibit “A” (“Easements”); and WHEREAS, the public hearing was held on June 3, 2019, before the City Council of the City of Elk River on such request after the required published and posted notice had been given, and all persons interested were given an opportunity to be heard at the public hearing; and WHEREAS, vacation of the Easements are appropriate as the parcel is being subdivided and new easements will be dedicated with the recording of the plat; and WHEREAS, it is in the public interest to vacate said Easements as new right-of-way and easements will be established with the plat of Hilltop Woods Estates Second Addition NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: 1. The Easements legally described on the attached Exhibit A are hereby vacated. 2. The City Clerk is directed to file a certified copy of this Resolution with the County Auditor and County Recorder/Registrar of Titles in accordance with the terms of this Resolution. Passed and adopted this 15th day of July 2019. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk City of Elk River City Council Resolution 19-____ A Resolution of the City Council of the City of Elk River Denying the Vacation of Existing Drainage and Utility Easements on Lot 4, Block 1, Hilltop Woods Estates WHEREAS, pursuant to Minnesota Statutes Section 412.851, after two (2) weeks’ published and posted notice of the hearing and after mailing written notice of the hearing at least ten (10) days before the hearing to each property owner affected by the proposed vacation, the Elk River city Council conducted a hearing to consider the vacation of the easements legally described on the attached Exhibit “A” (“Easements”); and WHEREAS, the public hearing was held on June 3, 2019, before the City Council of the City of Elk River on such request after the required published and posted notice had been given, and all persons interested were given an opportunity to be heard at the public hearing; and WHEREAS, vacation of the Easements would only be appropriate if the underlying parcel is subdivided and new easements dedicated with the recording of the approved plat; and WHEREAS, by separate resolution the City Council has denied the proposed subdivision; and WHEREAS, it is not in the public interest to vacate said Easements as new right-of-way and easements will not be established. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: 1. The application to vacate the Easements legally described on the attached Exhibit A is hereby denied. Passed and adopted this 15th day of July 2019. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk City of Elk River City Council Resolution 19-____ A Resolution of the City Council of the City of Elk River Making Findings of Fact and Approving the Plat of Hilltop Woods Estates Second Addition WHEREAS, Linda Schultz (“Applicant”) has applied (“Application”) for approval of a subdivision to be known as Hilltop Woods Estates Second Addition at 20655 Victoria Drive NW (Case No. P 19-08); and WHEREAS, the record in this matter shall include all of the materials submitted to the City Council in connection with the May 16, 2019, Application, including the staff reports and all attachments thereto, all other written materials submitted to the City Council, and all staff presentations and other testimony taken at the public meetings considering the Application, all of which is incorporated and made a part of the findings of fact and this resolution; and WHEREAS, the City Council held a public hearing on June 3, 2019, to receive testimony and evidence from city staff, the Applicant and any other persons regarding the Application; and WHEREAS, the Applicant and all others wishing to speak were given the opportunity to present testimony to the City Council; and WHEREAS, the City Council, at the conclusion of its June 3, 2019, public hearing on the Applicant’s Application, directed staff to gather additional information regarding the Application and continued the item to June 17, 2019; and WHEREAS, the City Council held a public meeting on June 17, 2019, to review the Application and all materials submitted for the public record, and to ask additional questions of city staff; and WHEREAS, the City Council, at the conclusion of its June 17, 2019, public meeting on the Applicant’s Application, directed preparation of a resolution approving the Application and incorporating the City Council’s findings of fact be prepared for the City Council to consider. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, makes the following findings of fact and decision with respect to the Application by Linda Schultz for a subdivision to be known as Hilltop Woods Estates Second Addition at 20655 Victoria Drive NW. FINDINGS OF FACT 1. The property at 20655 Victoria Drive was platted as Lot 4, Block 1, in the plat HILLTOP WOODS ESTATES, approved by the City Council on May 17, 1993. 2. The city also approved a variance allowing an extended cul-de-sac, Victoria Drive NW, to provide access to the parcels within the subdivision. 3. The Developer Agreement (“Agreement”) regulating development of the property and public improvements for Hilltop Woods Estates was signed on July 13, 1993. 4. The Agreement regulated development of the property and expired upon acceptance of the public improvements described in the Agreement. 5. Elk River City Code states that in order for a subdivision to be approved, the request must meet the eight findings outlined in Sec. 30-375. – Required findings; The findings necessary for city council approval of the preliminary plat and the final plat shall be as follows: (1) The proposed subdivision is consistent with the zoning regulations (article VI of this chapter) and conforms in all respects with all requirements of this Code, including the zoning regulations and this article. (2) The proposed subdivision is consistent with all applicable general and specialized city, county, and regional plans, including, but not limited to, the city's comprehensive development plan. (3) The physical characteristics of the site, including but not limited to topography, soils, vegetation, susceptibility to erosion and siltation, susceptibility to flooding, and drainage are suitable for the type and density of development and uses contemplated. (4) The proposed subdivision makes adequate provision for water supply, storm drainage, sewage transportation, erosion control and all other services, facilities and improvements otherwise required in this article. (5) The proposed subdivision will not cause substantial environmental damage. (6) The proposed subdivision will not conflict with easements of record or with easements established by judgment of a court. (7) The proposed subdivision will not have an undue and adverse impact on the reasonable development of neighboring land. (8) The proposed subdivision is not premature. A subdivision is premature if any of the following exists: a. Lack of adequate stormwater drainage. b. Lack of adequate roads. c. Lack of adequate sanitary sewer systems. d. Lack of adequate off-site public improvements or support systems. 6. The City Council finds that all findings required for approval of the plat of Hilltop Woods Estates Second Addition have been met becuase: a. The subdivision only creates one new lot b. Any further subdivision of either newly created lot will have to be approved by the City Council and may be conditioned upon extending Victoria Drive. c. The Agreement was never formally approved by the Elk River City Council, and included conditions that were not specifically approved by the Council. d. The creation of the additional lot on Victoria Drive will not require extension of the existing cul-de-sac, and the variance granted for the cul-de- sac length is still valid and operational. e. The plat satisfies all eight findings outlined in Sec. 30-375 as required for approval of a plat. (1) The proposed subdivision is consistent with the zoning regulations as the length of Victoria Drive was approved by variance and is not proposed to be extended. Additional dimensional standards for lots in the R-1a zoning district have also been met. (2) The proposed subdivision is residential in nature and does not conflict with any city, county, or regional plans – including the city’s Comprehensive Plan. (3) The physical characteristics of the site support subdivision and development of the site for one additional parcel. (4) The property will be served by private well and septic and makes adequate provisions for all required facilities. (5) The subdivision will not cause substantial environmental damage. (6) The Agreement governing development of the property has expired and the subdivision does not conflict with easements of record or with easements established by judgment of a court. Approval of the subdivision will require approval of an easement vacation (EV 19-02) vacating the existing roadway easements on Lot 4, Block 1, Hilltop Woods Estates. The easements will be replaced with dedicated right- of-way as part of the proposed subdivision. (7) The subdivision supports reasonable development of neighboring land through the dedication of public right-of-way which will allow a future extension of Victoria Drive to the north, and future roadway connections to the east and west. (8) The subdivision does not require extension of the existing road network and all necessary facilities are in place to ensure the subdivision is not premature. Passed and adopted this15th day of July 2019. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk City of Elk River City Council Resolution 19-____ A Resolution of the City Council of the City of Elk River Making Findings of Fact and Denying the Plat of Hilltop Woods Estates Second Addition WHEREAS, Linda Schultz (“Applicant”) has applied (“Application”) for approval of a subdivision to be known as Hilltop Woods Estates Second Addition at 20655 Victoria Drive NW (Case No. P 19-08); and WHEREAS, the record in this matter shall include all of the materials submitted to the City council in connection with the May 16, 2019, Application, including the staff reports and all attachments thereto, all other written materials submitted to the City Council, and all staff presentations and other testimony taken at the public meetings considering the Application, all of which is incorporated and made a part of the findings of fact and this resolution; and WHEREAS, the City Council held a public hearing on June 3, 2019, to receive testimony and evidence from city staff, the Applicant and any other persons regarding the Application; and WHEREAS, the Applicant and all others wishing to speak were given the opportunity to present testimony to the City Council; and WHEREAS, the City Council, at the conclusion of its June 3, 2019, public hearing on the Applicant’s Application, directed staff to gather additional information regarding the Application and continued the item to June 17, 2019; and WHEREAS, the City Council held a public meeting on June 17, 2019, to review the Application and all materials submitted for the public record, and to ask additional questions of city staff; and WHEREAS, the City Council, at the conclusion of its June 17, 2019, public meeting on the Applicant’s Application, made findings of fact and directed that a resolution denying the Application and incorporating the City Council’s findings of fact be prepared for City Council consideration. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk River, Minnesota, makes the following findings of fact and decision with respect to the Application by Linda Schultz for a subdivision to be known as Hilltop Woods Estates Second Addition at 20655 Victoria Drive NW. FINDINGS OF FACT 1. The property at 20655 Victoria Drive was platted as Lot 4, Block 1, in the plat HILLTOP WOODS ESTATES, approved by the City Council on May 17, 1993. 2. The Developer Agreement (“Agreement”) regulating development of the property and public improvements for Hilltop Woods Estates was signed on July 13, 1993. 3. Section 6, Additional Conditions, paragraph (01), Future Phases, of the Agreement states: The Subdivision is the first phase of a development which may include future lots. Final plat approval of future phases will be subject to such conditions as shall be imposed by the City Council at the time of final plat approval, including extension of Victoria Drive through the Subdivision to the north. No more lots will be allowed on Victoria Drive until and unless a connection to the City street system is made to the north so that Victoria Drive is no longer a dead end street. 4. Section 7, General Provisions, paragraph (02), Binding Effect, of the Agreement states: The terms of the provisions hereof shall be binding upon, and inure to the benefit of the heirs, representatives, successors and assigns of the parties hereto and shall be binding upon all future owners of all or and part of the Subdivision and shall be deemed covenants running with the land. References herein to Developer, if there be more than one, shall mean each and all of them. This agreement shall be placed of record so as to give notice hereof to subsequent purchasers and encumbrances of all or any part of the Subdivision, and all recording fees, if any, shall be paid by the Developer. 5. Elk River City Code states that in order for a subdivision to be approved, the request must meet the eight findings outlined in Sec. 30-375. – Required findings; The findings necessary for city council approval of the preliminary plat and the final plat shall be as follows: (1) The proposed subdivision is consistent with the zoning regulations (article VI of this chapter) and conforms in all respects with all requirements of this Code, including the zoning regulations and this article. (2) The proposed subdivision is consistent with all applicable general and specialized city, county, and regional plans, including, but not limited to, the city's comprehensive development plan. (3) The physical characteristics of the site, including but not limited to topography, soils, vegetation, susceptibility to erosion and siltation, susceptibility to flooding, and drainage are suitable for the type and density of development and uses contemplated. (4) The proposed subdivision makes adequate provision for water supply, storm drainage, sewage transportation, erosion control and all other services, facilities and improvements otherwise required in this article. (5) The proposed subdivision will not cause substantial environmental damage. (6) The proposed subdivision will not conflict with easements of record or with easements established by judgment of a court. (7) The proposed subdivision will not have an undue and adverse impact on the reasonable development of neighboring land. (8) The proposed subdivision is not premature. A subdivision is premature if any of the following exists: a. Lack of adequate stormwater drainage. b. Lack of adequate roads. c. Lack of adequate sanitary sewer systems. d. Lack of adequate off-site public improvements or support systems. 6. The City Council directed preparation of a resolution of denial on the grounds that the application does not satisfy finding number six. (6) The proposed subdivision will not conflict with easements of record or with easements established by judgment of a court. 7. The City Council Finds that finding number six for approval of the plat of Hilltop Woods Estates Second Addition has not been met because: a. The plat would conflict with an easement of record. Specifically, section 6, paragraph (01), of the Agreement which states “No more lots will be allowed on Victoria Drive until and unless a connection to the City street system is made to the north so that Victoria Drive is no longer a dead end street.” b. An extension of Victoria Drive is not proposed and Victoria Drive would remain a dead-end street. c. The Agreement creates a negative restrictive easement on all of the lots created by the 1993 subdivision and, as such, is a conflicting easement of record. d. Paragraph 7, section (02), states that the Agreement is a covenant and shall be binding upon, and inure to the benefit of the heirs, representatives, successors, and assigns. e. The covenants and restrictions of the Agreement remain binding, including the restriction noted in Section 6, Paragraph (01), prohibiting approval of additional subdivisions within Hilltop Woods Estates until Victoria Drive is extended, and is no longer a dead-end cul-de-sac. Passed and adopted this15th day of July 2019. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk Hilltop Woods Estates 2ndLinda Schultz– Subdivide Lot 4, Block 1, Hilltop Woods Estates into 2 binding.determined the Developer Agreement from 1993 is not Staff consulted with the city’s coprepare resolutions approving and denying the platCC reviewed on June 17, 2019, and directed staff to lots. Council action, conditions of approval for the plat, development on Victoria Drive. from 1993 did not include a requirement to limit -counsel and Background ~~10.96 Acres7.5 Acres Existing CulR/W to be dedicated-de-Sac Proposed plat would on Victoria Drivecreate 11 buildable lots 17101020148 Cul-de-Sacs inTrottBrook Farms Adopt a resolution approving or denying the requested applicant)Victoria Drive is no longer a deadbarring future subdivision of the properties until If a motion to approve is made, staff recommends plat and easement vacation. -end. (proposed by Action