4.1 DRAFT MINUTES (4 SETS) 07-20-2020
Meeting of the Elk River City Council
Held at the Elk River City Hall
Monday, June 15, 2020
Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Nate
Ovall, Matt Westgaard, and Jennifer Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, Finance Director Lori Ziemer,
Chief of Police Ron Nierenhausen, Stormwater Coordinator Brandon
Wisner, Planning Manager Zack Carlton, Recreation Manager Steve
Benoit, Parks and Recreation Director Michael Hecker,
Environmental Coordinator Amanda Erickson, Farmers
Market/Event Coordinator Karen Wingard, 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 6:49 p.m. by Mayor Dietz.
2. Pledge of Allegiance
Pledge of Allegiance was recited.
3. Consider Agenda
Item 4.4 was moved after the consent agenda.
Item 4.13 was removed.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve the agenda as amended. Motion carried 5-0.
4.4 COVID-10 Preparedness Plan as outlined in the staff report
Mr. Portner presented an election addendum to the Preparedness Plan. He stated the
state was supposed to issue guidelines today on preparedness plans, but he hasn’t
seen it. He explained the deadline to have a plan in place is June 29 and since the
Council doesn’t meet before that date he would like Council to provide him with
authorization to make changes in order to have a plan in place by the deadline. He
noted any plan changes would be ratified by the Council at their July 6 meeting.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve the elections addendum to the COVID-19 Preparedness
Plan and allow staff to make changes to be ratified at the July 6 Council
meeting. Motion carried 5-0.
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4. Consent Agenda
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to approve:
4.1 Minutes
May 18, 2020, Regular
May 28, 2020, Special
June 1, 2020, Regular
4.2 Check register as outlined in the staff report.
4.3 Ratify outdoor dining patio extensions as outlined in the staff report
for the following:
Aegir Brewing Co, 707 Main Street NW
American Legion, 525 Railroad Drive NW
Broadway Bar and Pizza, 16754 Highway 10
Daddy O’s, 709 Main Street NW
Sammy’s Pizza & Restaurant, 19232 Evans Street NW
Sunshine Depot, 701 Main Street NW
4.5 Liquor License renewals as outlined in the staff report.
4.6 Resolution 20-32 approving final plat of Tall Pines Second Addition,
with the following conditions:
1. All conditions of approval for the associated Conditional Use Permit
and Preliminary Plat must be satisfied prior to releasing the plat for
recording.
2. A Development Agreement be prepared and executed outlining the
terms and conditions of the plat approval prior to releasing the plat for
recording.
3. Water Availability Charge shall be paid in the amount required by the
city at the time the Final Plat is released for recording.
4. Park Dedication fee shall be paid in the amount required by the city at
the time the Final Plat is released for recording.
5. Staff approval of all site, landscaping, engineering, and stormwater
plans.
6. Streetlights shall be installed as required by Elk River Utilities.
7. A Letter of Credit shall be provided to the city in the amount of 100% of
the costs of the public improvements.
8. Upon completing all public improvements and having them accepted
by the city, a security or warranty in a form acceptable to the public
works director must be secured.
9. A development plan shall be approved by the city engineer prior to the
issuance of building permits.
10. All mailboxes shall be clustered.
11. Any item or condition found that indicates the site is likely to yield
information important to pre-history or history shall be reported to the
city immediately. Further, the city reserves the right to stop work
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authorized in its approval until the site is appropriately investigated and
work is authorized.
4.7 Furniture, Fixtures, and Equipment for Multipurpose Facility as
outlined in the staff report.
4.8 Pay estimates as outlined in the staff report.
4.9 Resolution 20-33 authorizing the transfer from the Municipal Liquor
Fun to the Park Improvement Fund.
4.10 2020 Mineral Excavation License Renewals as listed in the staff report.
4.11 Approve low bid from GM Contracting for the Main Street forcemain
relocation.
4.12 Permanent and temporary easements to facilitate construction of the
CSAH 12 improvements and their effects on the city owned property
containing Hillside Park.
Motion carried 5-0.
5. Open Forum
Mr. Portner indicated he was contacted by resident Valerie Hanson, 548 Auburn
Place regarding her concerns with the direction residents are receiving following
CDC guidance when out in the community. Ms. Hanson would like the Council to
take more of a leadership role along with the Chamber of Commerce in encouraging
people to wear masks and social distancing.
Council consensus was for communications staff to put something together and
send to Council for review.
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Anne Kostrzewski, 27235 146 Street NW, Zimmerman – introduced herself and
stated she is running for the Sherburne County Board of Commissioners.
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Jason Vahlenkamp, 10087 191 Avenue NW – explained there is a median in the
new Miske Meadows development that is unkept. He indicated the median is city-
owned but the residents would like to take over maintenance.
Councilmember Wagner indicated she also spoke with a resident regarding this issue.
The Mayor indicated he spoke with Mr. Portner about this issue earlier today.
Council direction was for Mr. Vahlenkamp to contact Mr. Portner in the morning
and get in touch with Street/Park Superintendent Tim Sevcik.
Todd Baumann, Eagle Scout Leader, stated his son Aaron was working with the
city on an Eagle Scout project but he found out today the project has been cancelled.
Mr. Baumann explained this puts his son in a bad position to complete his project in
time. He indicated it is common knowledge in the Scout community that Elk River is
difficult to work with.
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Councilmember Wagner indicated she is the liaison to the Parks and Recreation
Commission and read Mr. Hecker’s staff report regarding the project cancellation
because of site issues.
Mayor Dietz and Councilmember Wagner expressed shock and commented the city
has partnered with Eagle Scouts on many successful projects.
Mayor Dietz asked Mr. Baumann if the city can write a letter on behalf of Aaron to
get him a project extension or if we can find another project for him. Mr. Baumann
indicated he isn’t sure Aaron is interested in working with the City of Elk River on
future projects.
6.1 City of Elk River Volunteer of the Month
Mayor Dietz presented the June Volunteer of the Month award to Jim Schroeder. He
highlighted the following:
CAER food shelf support
Great River Family Promise volunteer
Second Harvest produce food drop at St. Andrews
St. Andrew’s tuition assistance
Assist at Timber Bay Kids Camp
Knights of Columbus member
Tenth grade confirmation teacher
Lector, Eucharistic Minister, and Sacristan at St. Andrews
Led mission trips to Mexican orphanage
St. Andrews Social Justice Mission Outreach leader
6.2 Proclaim Phil Barsody Day
Mr. Barsody was not in attendance and this item has been postponed until July 6.
6.3 Comprehensive Annual Financial Report for Year Ended December
31, 2019.
Michelle Hoffman and Troy Gabler from CliftonLarsonAllen presented an overview
of the Comprehensive Annual Finance Report for the year ended December 31,
2019.
Moved by Councilmember Ovall and seconded by Councilmember
Christianson to receive the Comprehensive Annual Financial Report for the
year ended December 31, 2019. Motion carried 5-0.
7.1 Lake Orono Drawdown Permit Requirement Per Minn. Stat. §§
103G.408
Ms. Bednar presented the staff report.
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Mayor Dietz opened the public hearing.
Bob Bergeth, 1797 Tipton Circle #111, indicated he has lived in his home for 20
years and the continued tax increases are difficult enough without adding an
assessment and creating a larger tax increase. He stated the assessment being
proposed has no reasonableness and will drive people to move out of Elk River. He
indicated he is advocating for the Council to reduce expenses rather than keep
raising taxes with no tangible benefit for the residents.
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Leonora Person, 13726 189 Avenue, believes the assessment is quite large and
their property is not receiving a benefit from the lake dredging.
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Mark Person, 13726 189 Avenue, indicated he is against the drawdown and
doesn’t believe it should continue until litigation revolving around formation of the
lake district is finished.
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Denise Cundif, 13742 189Avenue NW, expressed opposition to the drawdown
and questioned why the vote for the drawdown was one per property but the vote
on the lake district was two.
Ms. Erickson explained based on DNR requirements for the drawdown, all DNR
identified parcels are given one vote per parcel regardless of ownership. She
explained the lake district formation had different requirements and based on
ownership, some properties received two votes.
Ms. Person thought she recalled the city attorney saying the Council can remove
people from the OLID.
Attorney Beck stated the Council has authority to change boundaries but cannot
remove properties from the OLID. He noted changing the boundaries would require
a new procedure. He indicated assessments for the dredging project are determined
by the public improvement project the Council orders. He noted the draft
assessment roll tracks the properties that fall within OLID but they don’t have to be
the same.
Attorney Beck explained there would be no reason to delay action on the LORE
project and the drawdown because of the OLID litigation as they are separate issues
and separate processes.
Ms. Person questioned if the Council would take under advisement the assessment
versus a flat fee when the project does not benefit the property owners. She
questioned if larger properties pay a larger assessment.
Mr. Wisner explained commercial may pay a larger assessment, but residential
properties all pay the same assessment unless they are over 10 acres.
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Mayor Dietz indicated the Council will determine assessments during the assessment
hearing. He stated residents will have an option to speak at the hearing and there is
an appeal process in place for residents who disagree with the assessment.
Patrick Plant, 13184 Islandview Drive NW, stated the drawdown is critical to
advance the lake project and he is in favor.
There being no one else to speak to this issue, Mayor Dietz closed the public
hearing.
Moved by Councilmember Westgaard and seconded by Councilmember Ovall
to adopt resolution 20-34 approving a permit application for the drawdown of
Lake Orono. Motion carried 5-0.
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7.2 Easement Vacation: Twin Lakes Road & 175 Avenue, Community
Housing Development Corporation
Mr. Carlton presented the staff report.
Mayor Dietz opened the public hearing.
Dan Walsh, Community Housing Development Corporation, understands staff
does not support the easement vacation and he agrees traffic control is important
and highlighted two items with the goal of finding a collective solution for this
vacation request. The first item Mr. Walsh mentioned is he feels alternative traffic
control measures may be nearly as effective and would cost much less than a
roundabout. The second item Mr. Walsh highlighted is the uniqueness of this area
and the city owning 150-feet of right of way on the north side assuming there may be
sufficient right of way for the roundabout and to grant the easement vacation. He
noted CHDC is proud of this building concept and they believe it accomplishes all
the goals laid out by the city. He added allowing the building to utilize the corner of
the right of way is key to the project allowing activation of the street scape and
making for an attractive project.
There being no one else to speak, Mayor Dietz closed the public hearing.
Councilmember Wagner indicated her biggest hesitation for granting this vacation is
the large growth already in the area as well as future growth. She questioned how
other easements look in this type of intersection in the rest of the city. Mr. Carlton
explained typically right-of-way would exist on the back side of the sidewalk and
continue north. He added this request is consistent with other right-of-way designs.
He noted the study indicated the roundabout as the preferred treatment but also
evaluated a four-way stop. He stated the roundabout functioned slightly better in the
study and the plan recommends multiple roundabouts down the corridor so he feels
it may be good for consistency.
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Councilmember Ovall questioned if the study was completed prior to awarding of
the Highway 169 project. Mr. Carlton indicated he is not 100% sure of the timing
but believes the study was started before the Highway 169 project.
Councilmember Ovall questioned how early staff shared their position on not
supporting the vacation with the applicant. Mr. Carlton explained initial
conversations with the application were supportive but after the application was
submitted and during staff review as part of the site plan meeting, the public works
director reviewed the 2018 traffic study and noted his concerns regarding the conflict
between the proposal and city plans. He stated the applicant was notified prior to the
first public hearing held on this project. Councilmember Ovall indicated he would
like staff to find a way to provide applicants with more accurate feedback earlier in
the process.
Councilmember Westgaard indicated he struggles with this request. He questioned if
the roundabout shown in the packet is to scale and asked who prepared the drawing.
Mr. Carlton stated the graphic was prepared for the applicant by the surveyor and
includes general specifications but is not designed specifically for this intersection.
Councilmember Westgaard stated the amount of right-of-way seems like a lot
compared to normal and he would like to support the project but doesn’t want to
box ourselves in without having enough right-of-way. He added he agrees with
Councilmember Ovall that staff needs to find a way to communicate these issues
with the applicant earlier in the process. Mr. Carlton indicated staff is working
towards pre-application meetings where everyone will be part of the initial
conversation. He stated the city moved away from roundabouts where there is
heavier truck traffic and indicated that may become an issue in this area with the
industrial uses to the west potentially creating heavy truck traffic.
Mayor Dietz noted he is not sure the developer should pay for our uncertainty on
possibly building a roundabout.
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Councilmember Wagner questioned if 175 Avenue is proposed to be anything other
than the design it is right now including more lanes, medians, etc. She explained it is
difficult for her to decide based on the single graphic in the packet. She added her
biggest concern is the growth in the area. She questioned if a partial easement could
be discussed.
Councilmember Christianson questioned if the Council could see a roundabout to
specifications overlaid in this intersection to see what the easement would look like.
Mr. Carlton stated he is not aware of any design changes to 175th. He indicated staff
could put a standardized roundabout in the center and see how it fits. He noted
every roundabout is unique and specifically designed for an intersection. He added a
partial easement vacation could be entertained. He stated this item could be
continued to July 6 if the Council provides direction.
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Mr. Walsh explained they are just looking for site control so a smaller easement
could work. He noted they just need to put a small corner of the building on the
easement. He added site control documentation is due to the state this week.
Mayor Dietz asked if staff and the applicant can work on paperwork showing one
option with site control approval and one with denial. The applicant agreed to a
continuation to July 6.
Councilmember Ovall indicated he would like Public Works Director Justin Femrite
to comment prior to the next meeting.
Moved by Councilmember Wagner and seconded by Councilmember
Christianson to continue this item until July 6, 2020. Motion carried 5-0.
8.1 Riverfront Concert Series Cancellation
Mr. Benoit presented the staff report.
Mayor Dietz indicated he spoke with the chair of the Sherburne County Fair Board
and it may be possible for the concerts to be held at the grandstand however there is
no power and we would need to rent a stage. He stated he also likes the possibility of
having the concerts at the Multipurpose Facility since we wouldn’t have to provide
power and a stage.
Mr. Hecker explained parking lot construction at the Multipurpose Facility through
August will make it difficult to move crowds.
Mayor Dietz explained he would like to explore all options as he doesn’t want to
cancel the entire concert series as he believes this would be uplifting to people
looking for things to do. He added he would be in favor of rebooking the bands to
2021 if we have to cancel this year. He questioned if cancelling the events through
July 23 gives staff time to explore using the Multipurpose Facility and find out exact
costs for using the fairgrounds if necessary.
Councilmember Wagner indicated in her experience with event planning, she is
hesitant to use the fairgrounds as it is not the venue people are accustomed to. She
noted she is holding out hope to hold concerts in August.
Councilmember Westgaard stated he would like staff to continue strategizing on how
we can preserve as many concerts as possible while staying within the state
guidelines. He questioned if Zabee Theater has been explored. Mr. Hecker indicated
rain day concerts were scheduled at Zabee Theater but those were scheduled prior to
the COVID shutdowns.
Councilmember Wagner added Handke Pit may be an option.
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Moved by Councilmember Westgaard and seconded by Councilmember Ovall
to cancel the Riverfront Concert Series concerts up to and including the July
23, 2020, event. Motion carried 5-0.
8.2 Elk RiverFest 2020 Cancellation
Mr. Benoit presented the staff report.
Mayor Dietz questioned if staff will be putting out information on social distancing
expectations or if we will be asking people to remain in their cars while watching the
fireworks. Mr. Benoit stated staff will strongly educate the public about ways to
socially distance.
Mayor Dietz stated he doesn’t mean to be rude but questioned if staff made a sincere
effort to move the event to Labor Day. Ms. Wingard indicated she wants the event
to go on if it can safely go on as much as anyone and assured Council staff worked
really hard to try and make the festival work. She stated a reduced number of craft
and food vendors would be willing to do the event in September. She added the Sips
on Main area has had 17-20 vendors in the past but only five were available for
Labor Day. She stated Sips on Main is a huge draw but it’s difficult to charge people
when only five vendors are available for samples. She explained there was also some
concern with Sips on Main being too close to the rescheduled Taste of Elk River
event in September. The Taste of Elk River is a fundraiser and she doesn’t want to
take away from that event. She further explained the downtown venue is what makes
Elk RiverFest amazing but is also what makes holding an event during a pandemic
especially difficult with people being so closer together and not being able to control
the entrance/exits. She believes it is the best interest of public safety and fiscal
responsibility to cancel the event for this year and concentrate on the fireworks on
the 4th of July.
Councilmember Christianson questioned if scaling the event back is an option. He
stated there is almost three months until the event and a lot can change with state
COVID restrictions by then. Ms. Wingard indicated she felt that salvaging the
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fireworks and promoting small gatherings on the 4 of July would allow recreation
staff to utilize resources to provide other events for the community rather than
planning an event that may or may not happen.
Moved by Councilmember Ovall and seconded by Councilmember Westgaard
to cancel Elk RiverFest 2020. Motion carried 5-0.
8.3 Elk River Youth Baseball Association Dugout and Elk River Youth
LaCrosse Field Lighting Payment Deferment Requests
Mr. Benoit presented the staff report.
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to defer the Elk River Youth Baseball’s 2020 and 2021 dugout
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payments for one year from the due dates in the Youth Athletic Complex and
Oak Knoll Agreement. Motion carried 5-0.
Moved by Councilmember Wagner and seconded by Councilmember
Christianson to defer the Elk River Youth LaCrosse’s 2020, 2021, and 2022
field lighting payments for one year from the due dates indicated in the
agreement regarding the Oak Knoll Athletic Complex. Motion carried 5-0.
8.4 Comprehensive Plan Consultant
Mr. Carlton presented the staff report.
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to select Houseal Lavigne to complete the 2020 Comprehensive
Plan Update. Motion carried 5-0.
Moved by Councilmember Wagner and seconded by Councilmember Mayor
Dietz to appoint Councilmembers Christianson and Westgaard to serve on
the Comprehensive Plan Advisory Committee (CPAC). Motion carried 5-0.
9.1 Tax Increment Financing (TIF) and Property Tax Abatement
Overview
Ms. Othoudt presented on Tax Increment Financing (TIF) and property tax
abatement along with Mikaela Huot of Baker Tilly Municipal Advisors, LLC.
Mayor Dietz questioned what should be used as a guide as to how much tax
abatement a city should have. Ms. Huot explained there is a statutory limit of not
more than 10% of a city’s next tax capacity can be tax abatement. She noted this
limit is difficult to reach. She indicated there is no statutory limit for TIF, but some
cities have established a desired threshold. She stated she will gather information on
a comparison of capture tax capacity in TIF districts in the state and will forward
that information when she receives it. She stated many cities are focused on what the
public to private percentage ratios are for projects and some cities have set limits and
some compare public to private participation ratios for each project.
Councilmember Wagner indicated one reason for her requesting this discussion is to
determine whether the Council should be reviewing applications individually or
provide an overall Council direction for staff to pass on when people inquire about
TIF.
Mayor Dietz stated he believes the Council should review applications individually to
make sure they have gone through the process and qualify for the financing. He
noted applications that do not meet the qualifications may not be brought to the
Council. He cautioned about setting limits as he would hate to set a limit and have to
turn down a large project. Councilmember Westgaard didn’t believe the city has
overextended on TIF and would find it difficult to tell people we don’t want TIF
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until you know what type of project is being proposed. Mayor Dietz indicated it may
be better to discuss what kind of TIF the Council wants such as industrial, housing,
etc. He noted it seems like most residential TIF is low income. He stated he would
like to see how many low-income units Elk River has versus where we should be.
Ms. Othoudt indicated the housing study lays out a number of affordable housing
units for the next 10-15 years and she believes the number was 93. She noted if you
consider recently approved projects, there may not be a need for additional
affordable housing projects.
9.2 Discuss Proposed Land Swap with Copart
Mr. Carlton presented the staff report.
Councilmember Ovall questioned if the soil composition and quality is comparable
on both sites. Mr. Carlton stated soil quality is part of what will be reviewed when
considering a land swap. He noted a wetland delineation was completed on the
Copart property and environmental is reviewing to ensure its buildable property.
Councilmember Westgaard indicated it seems like making the swap gives us a better
piece of land to develop.
Councilmember Wagner questioned if Mr. Hecker is comfortable with the land swap
considering the future plans of the proposed sports complex. Mr. Hecker indicated
after brief review it appears the land swap will work well but he would like the Parks
and Recreation Commission to review.
Council consensus was to move forward with exploring the land swap.
9.3 Public Safety Building and Fire Station 3 Architectural Plans
Bruce Schwartzman, lead architect for BKV Group, updated the Council on the
progress of the plans and initial cost estimates for the public safety building and Fire
Station #3.
Councilmember Westgaard asked Mr. Schwartzman if he was comfortable with the
timeline with not bidding until after the new year and beginning in April. He added
he’s experienced issues with other projects with long lead times. Mr. Schwartzman
explained he is comfortable with the timeline, but he believes the construction
manager would probably say to go out for bids earlier if possible. He stated the issue
can be revisited once a construction manager is on board.
Mayor Dietz questioned Chief Dickinson and Chief Nierenhausen to see if the
proposal meets their needs. Chief Dickinson stated he will work with the firm on a
few things, but it will absolutely work. Chief Nierenhausen indicated his goal
throughout the process was to plan for future growth and he believes this
accomplishes that growth planning. He noted the additional garage space is really
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important because there are security issues with all the electronics and having the
vehicles stored outside.
Council consensus was to keep moving forward on this project.
Mr. Schwartzman explained the goal is to work with the city attorney and create a
Request for Proposal for a construction manager to get that person on board. He
noted BKV Group is available to assist in the process however needed. He stated
once the construction manager is on board that person should review the figures and
come back to the Council.
9.4 Open Containers in Public Places
Chief Nierenhausen presented the staff report. He indicated upon research he
realized the city has an archaic ordinance in place Section 6-3 that states “no person
shall consume liquor on a public highway or public place.” He noted a park or
parking lot would constitute a public place. He stated there is no state statute
prohibiting liquor in public places and he conferred with the city attorney as well. He
explained under current liquor licensing laws, on-sale establishments are prohibited
from allowing liquor to leave their designated premises; however, those with off-sale
licenses can sell the liquor in a sealed container for off-sale consumption and if the
current ordinance is eliminated the patron could consume the liquor in public place.
He stated he does not have a preference either way.
Mr. Portner indicated instances of people consuming alcohol on public property
exist and now that law enforcement is aware of the ordinance it will have to be
enforced.
The Council expressed concerns with enforcing the ordinance now when people
have been consuming alcohol in public places without issue for a while.
Council consensus was to eliminate the ordinance prohibiting alcohol consumption
in public places.
9.5 Multipurpose Facility Staffing and Fees
Mr. Benoit and Mr. Dalton presented proposed staffing and fees. Mr. Dalton
indicated staff is looking for Council consensus on the information presented so they
can begin marketing.
Councilmember Wagner stated the last presentation showed the facility operating in
a deficit, but the new presentation shows different numbers. She questioned what
CM means in the presentation. Mr. Benoit indicated CM stands for Councilmember
and represents feedback from the last meeting.
Councilmember Westgaard questioned if staff is referring to the feedback he
provided at the last meeting because he is only one voice and the numbers presented
are not his and he would prefer if they weren’t presented as such.
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Mr. Portner explained staff revised numbers using the 65% revenue based on whole
Council feedback at the last meeting.
Mr. Benoit further explained staff used information discussed at the last meeting
including using 65% revenues, expenses from the staffing plan, 2018 budget
numbers, and modifications for utilities and put it together for this presentation. He
noted the May 4 presentation did not include capital outlay.
Councilmember Westgaard indicated he simply voiced his concern at the last
meeting on how he felt we should move forward with the facility. He explained he
feels the advisory commission should have been part of this from day one, but it
seems like staff keeps ignoring the direction and forging ahead for approvals. He
believes it will be a mistake to move forward setting rates and schedules without
commission and community input and believes the Council will get backlash.
Mr. Portner apologized if he misunderstood the direction from the last meeting. He
indicated the advisory commission will be on board by July and will get started
shortly after reviewing these items. He questioned if the Council is looking for the
commission to conduct the research to provide budget estimates and staffing costs.
He noted in his experience a group of residents typically don’t have the experience to
put that information together. He stated the payment for the naming rights
consultant will come from the initial payment and we will pay for signage so there
may be a deficit for that right away. He stated capital outlay won’t have much the
first couple years because it’s a new building and many of the larger items have
warranties. He asked for direction of what the Council wants to see.
Mayor Dietz indicated he is not understanding Councilmember Westgaard’s
comments. He questioned if Councilmember Westgaard is expecting the group to
come in and set rates. He believes they need to have a starting point and once the
commission comes on board, they should review staff’s figures and make a
recommendation to the Council. He stated staff has a lot of time comparing
numbers with other cities and our competition and he wouldn’t expect the advisory
commission to do that level of work.
Councilmember Westgaard explained the ordinance establishing the advisory
commission outlines the group’s duties which include setting fees, budget, and
capital outlay for the facility and make recommendation to the Council. He indicated
a presentation back in December discussed having the commission established so
they could be involved as the new facility comes online and now it’s June. He thinks
it is a mistake to move forward without input of the advisory commission.
Mayor Dietz questioned how the individuals appointed to the commission are going
to know better than the Council on what is right and wrong with the proposed fees
and staffing.
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Councilmember Westgaard indicated one of the commission’s tasks is to work with
staff to do the research.
Mayor Dietz questioned if that means the commission does the research or staff
does the research. He indicated it seems like staff’s research would be a starting point
for the commission. He stated once the facility is open the commission can review
and bring back any recommendations to the Council.
Councilmember Wagner indicated she shares some of Councilmember Westgaard’s
concerns with having the commission involved from the beginning. She noted some
of the budget numbers put out there didn’t make sense to her.
Mayor Dietz explained commission interviews will take place in July and the
commission will be on board by August. The commission’s first task can be
reviewing the proposed fee schedule as it may already be published but fees can be
changed. He stated he believes there is still time for the commission to review the
fees and most of the building stuff before the building goes online October 1. He
asked if Councilmembers Westgaard and Wagner were comfortable with that.
Councilmember Westgaard indicated the sooner the better.
Mr. Portner and Mr. Benoit explained how staff arrived at the current budget
numbers.
Councilmember Wagner indicated upon review of the organizational chart, she feels
there is an abundance of staff to work in the new facility. She explained she wants as
many people on board as it takes to effectively run the facility; however, she thinks it
may be better to start with fewer employees and ramp up to the maximum as the
facility dictates.
Mr. Benoit indicated the facility is open 108 hours a week so many more than the ice
rink was. He stated the vacant positions could be held off on until necessary.
Mayor Dietz concurred it may be best to start without the vacant positions and see
how it goes.
Councilmember Ovall indicated he would like to see the commission up and running
as this facility was sold to the community and we need ongoing communication with
the commission and the community. He noted he believes this information is a good
framework to work from.
Mayor Dietz indicated the goal is to get the commission appointed by the end of July
and have their first meeting to review all rates, etc. and any commission
recommended changes to be brought back to the Council by August 15 so rates can
be published for the October 1 opening.
City Council Minutes Page 15
June 15, 2020
-----------------------------
9.6 Activity Center 55+ Transition/MPC Use Updates
Mr. Hecker presented the staff report.
Moved by Councilmember Christianson and seconded by Councilmember
Wagner to not reopen the current senior activity center with the goal of
opening the senior center in the Multipurpose Facility by October 1. Motion
carried 5-0.
10. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 12:11 a.m. on Tuesday, June 16.
Minutes prepared by Jessica Miller.
___________________
John J. Dietz, Mayor
___________________
Tina Allard, City Clerk
Special Meeting of the Elk River City Council
Held at the Emergency Operations Center (EOC)
Wednesday, June 17, 2020
Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Nate
Ovall, Matt Westgaard, and Jennifer Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, Fire Chief Mark Dickinson, City
Clerk Tina Allard, Community Development Director Suzanne
Fischer, Chief of Police Ron Nierenhausen, Planning Manager Zack
Carlton, Finance Director Lori Ziemer, Economic Development
Director Amanda Othoudt, Parks and Recreation Director Michael
Hecker, Public Works Director/Chief Engineer Justin Femrite, and
Records Specialist Katie Porath
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 2:07 p.m. by Mayor Dietz.
2. Council/Staff Annual Retreat
Mr. Portner reviewed the results of the “telephone” exercise staff and Council
members went through, demonstrating messages can get modified through multiple
senders.
Mr. Portner reviewed information on healthy conflict and good communications.
Visioning “2035”
Mr. Portner asked Council to envision Elk River in 2035 and answer a few questions.
“The year is 2035 and the City of Elk River has been named the greatest place to live in
Minnesota. News outlets are asking what the city did to achieve this. What does this look like?”
Council responded:
Residents don’t have to leave Elk River to find what they’re looking for
Elk River remains rural, yet suburban
More industrial, commercial, and retail businesses that would increase jobs
and the tax capacity
Rid of the “bedroom community” stigma
Retail and development along Highway 169
Emphasis on Public Safety and Parks and Recreation
City Council Minutes Page 2
June 17, 2020
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Spirit of entrepreneurialism and innovation
Improved transportation and accessibility
“What physical amenities changed between 2020-2035? How are we different physically?”
Council responded:
Transportation
Increased population
Outdoor swimming pool
Additional athletic fields
Expansion of ERX Motor Park
More hotels/motels
Retail opportunities along Highways 169 and 10 and in gravel mining area
Improved connections between Elk River and west Elk River
“What did we do over these 15 years for us to be recognized? What action steps and tasks were
accomplished?”
Council and staff responded:
The city developed a road map and plan to avoid a patchwork quilt of
disparate areas
Correct zoning
Improved internet access
Mobile, bike, and walking transportation improvements
A range of housing types
Improved reverse commute on the Northstar Commuter train to bring
employees from the Twin Cities
Increased park amenities including restrooms and running water in more
parks
A bike trail from Lion John Weicht Park to downtown Elk River over the
railroad tracks
Update plans such as the Parks Master Plan, Trails Plan, Capital
Improvement Plan, and the Comprehensive Plan
Consider redevelopment of existing businesses and housing
Mr. Portner asked Council about their interest in a solar farm. He also asked if they
would be interested in exploring the possibility of annexing Big Lake Township to
bring utilities into the area.
Mayor Dietz felt annexation, in today’s world, may be difficult. There would need to
be two willing parties. Solar farms are becoming more prevalent and the Minnesota
Municipal Power Agency (MMPA) would likely agree to help with a project.
Councilmember Ovall suggested locating a solar farm on the landfill.
The Council agreed change is good, but they want Elk River to balance urban with
rural.
City Council Minutes Page 3
June 17, 2020
-----------------------------
Mr. Portner asked about their perception of property taxes. What is high? What is
fair?
Council and staff responded:
It is challenging to compare houses in one community to another
Some cities have taxes for services such as transportation, wastewater,
planning, or mosquito control built in but, in Elk River, those things are
provided by the city
Taxes are divided among city, county, and school district
Residents need more education on what their property tax includes
Higher industrial and commercial base can help cover part of taxes
The city needs to be a good steward of the money they collect
If people want streets plowed, cracks fixed, and a good response in
emergencies that is 2/3 of the budget
Customer service vs compliance
Mr. Portner began a discussion on customer service.
Council agreed customers include anyone who owns a business in the city, lives in
the city, someone who purchases goods or services, or an outside developer looking
to be in Elk River.
Council addressed the following points:
Empathy is important
Explain why something needs to be done a certain way
Everyone’s input is valid and heard
Make customers part of the process and solution
Customer service is essential for anyone working in government
The main job of staff and Council is to answer questions and facilitate
resident requests
When possible, offer flexible and creative solutions
Social media or email communication could be misconstrued, face to face
conversations may be more effective
A warm handoff or reference to the best resource is helpful
Mr. Carlton talked about working with developers and balancing the desires of the
developer, community, and council.
Mayor Dietz asked if there was some sort of guide for first time developers.
Ms. Fischer stated the city offers pre-application meetings upon request.
Communication with newer developers can help them realize if the council would
approve their project.
City Council Minutes Page 4
June 17, 2020
-----------------------------
Council and Staff Roles
Mr. Portner reviewed that the council makes decisions as a body. Anything decided
by previous councils is part of a legacy chain. Unanimous votes are not necessary.
Councilmember Ovall struggles with what is necessary to come before a commission
or council and how much autonomy could be granted to staff.
Mr. Portner stated some things could be delegated to staff. He mentioned it is
difficult for the HRA and EDA to get their meeting accomplished during the one-
hour timeframe. Would Council be interested in moving meetings to a different
night?
Council and staff suggested some of the following solutions:
HRA and EDA meetings start on Monday at 5:00 p.m. and go until 6:30 p.m.
Council meetings start at 7:00 p.m.
Public Hearings reduced to one public hearing held before the Planning
Commission
Packets available on Thursday, instead of Friday, so there is more than one
business day to contact staff with questions
Reduce or eliminate verbal presentations of Staff Report material at a council
meeting
Move pertinent packet material to the front of the Council item so it doesn’t
get buried
Provide PowerPoint presentations in advance of the meeting
Council appreciates having bookmarks in the file
Could there be a differentiation between Council Packet and Planning Packet
to avoid confusion
Avoid meetings over four hours
Have a separate budget focused meeting instead of integrating budget
discussions into regular meetings
Reduce the number of work session items if the agenda looks like it may be
time consuming.
Consider one meeting dedicated only to work session items
Councilmember Westgaard mentioned it was a challenge for members with a full-
time job to have earlier meetings or special meetings.
Mr. Carlton stated reducing the size of packets would be challenging as they contain
long term legacy information and documentation of process.
Mr. Portner commented public hearing testimony from residents is not meant to be
a dialog. A better model may be to collect testimony, notate questions and answer
them after the public hearing is closed.
Mayor Dietz added speakers should be limited to coming up only one time to
comment.
City Council Minutes Page 5
June 17, 2020
-----------------------------
Councilmember Wagner doesn’t want to take away opportunity for dialogue. There
are those who appreciate an opportunity to have public engagement.
Council will continue to discuss options for meeting efficiency.
Council Liaison to Commissions
Mr. Portner reviewed the role of council liaison to support and listen to the
commission and provide context. While they can have personal opinions, they
cannot speak on behalf on council and avoid debates.
Mr. Portner introduced an idea for council work sessions using the new round table
in the Upper Town Conference Room. Council could invite speaker representatives
to join at the table. Since names and addresses are important for the record,
attendees would need to sit at the table to address the council.
Council decided on June 22, 2020, at 4:00 p.m. for a continuation of the Council
retreat discussion.
Ms. Ziemer asked Council to consider July 27, 2020, and August 10, 2020, as special
budget meetings.
Councilmember Wagner asked if there was anything staff wished Council would do
better.
Ms. Fischer asked that, if council heard about a problem from a resident, they would
also talk to staff to hear both sides of the story. This will help staff improve their
process.
Mr. Portner added Council could contact any of the directors for more information
and clarification.
3. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 6:58 p.m.
Minutes prepared by Katie Porath.
___________________
John J. Dietz, Mayor
___________________
City Council Minutes Page 6
June 17, 2020
-----------------------------
Tina Allard, City Clerk
Special Meeting of the Elk River City Council
Held at the Emergency Operations Center (EOC)
Monday, June 22, 2020
Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Nate
Ovall, Matt Westgaard, and Jennifer Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, Fire Chief Mark Dickinson, City
Clerk Tina Allard, Community Development Director Suzanne
Fischer, Chief of Police Ron Nierenhausen, Planning Manager Zack
Carlton, Finance Director Lori Ziemer, Parks and Recreation
Director Michael Hecker, Public Works Director/Chief Engineer
Justin Femrite, and Records Specialist Katie Porath
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 4:03 p.m. by Mayor Dietz.
2. Pledge of Allegiance
Pledge of Allegiance was recited.
3. Council/Staff Annual Retreat
Mr. Portner presented a recap of the June 17, 2020, council retreat.
Councilmember Christianson asked for more visuals on the breakdown for city
portion of property taxes.
Mr. Portner reviewed the value, vision, and mission statements and asked Council
how they felt about the statements. The Council felt the statements were good.
2019 Goals Review/Update
Mr. Portner reviewed short-term, mid-term, and long-term goals.
Budget
Ms. Ziemer presented preliminary budget goals.
Councilmember Ovall asked about employees who are still receiving step increases
and incentives for employees no longer receiving increases.
Mayor Dietz suggested, once the Public Safety levy has been paid off in two years,
leaving it so the tax rate does not increase.
City Council Minutes Page 2
June 22, 2020
-----------------------------
Mayor Dietz asked if there were any budgeted items not used because of COVID-19
that may have saved money.
Ms. Ziemer will provide Council with information on possible savings.
Mayor Dietz asked about the federal funding that the city would be receiving to pay
for COVID-19 related expenses.
Mr. Portner outlined some costs related to COVID-19 including VPN networks,
laptops, plexiglass, fogging machine, and costs to change processes. The allocated
$1.8 million could potentially also pay for utilities or EDA loans or grants.
Council asked if some staff may be permanently moved to work from home and if
COVID-19 had revealed any organizational or structural changes that might be
beneficial going forward.
Mr. Portner will evaluate.
Mayor Dietz asked about the amount allocated to equipment purchases noted in the
budget.
Ms. Ziemer stated the proposed 6% increase would help plan for future large
purchases such as snow plowing equipment or dump trucks.
Council agreed they would like to see a flat tax rate of 46.2% to help residents
through recent economic events while maintaining the same level of city services.
Councilmember Ovall noted the Board of Appeals process had several retail appeals.
Council noted that, even if the city’s tax rate does not increase, it doesn’t mean that
homeowners property tax will not increase. This is also dependent on county and
school increases.
Mr. Portner said they do not have finalized numbers on some items such as fuel,
healthcare renewals, or salt. Historically, budget projections have decreased from
preliminary numbers.
Council asked about Local Government Aid (LGA) and Minnesota Supplemental
Aid (MSA) funding and what if it went away.
Mr. Femrite explained that MSA is constitutionally dedicated from gas tax. The
amount might decrease due to reduced travel and fuel costs.
Council asked about the Senior Activity Center.
Mr. Portner stated staffing was part of the General Fund but programming is
supported by the tax levy. Once the new Senior Activity Center is finished, as part of
the multipurpose facility, seniors will need to become members and there may be
City Council Minutes Page 3
June 22, 2020
-----------------------------
more participants. Maintenance costs for the old Senior Activity Center will also go
down as it has not been used since March and will not be reopening.
Council asked about restructuring of Parks and Recreation staff for the multipurpose
facility.
Councilmember Christianson asked if program offerings from ISD #728
Community Ed could be evaluated against what the city provides for any duplicates.
Mr. Portner added it would be beneficial to analyze certain Parks and Recreation
programs due to changes in the roles of parents and how residents recreate, as well
as a decline in adult sports interest and attendance at outdoor rinks and open gym
times.
Goal Setting
Long-Term Goals (2029)
Urban Service Area expansion
Commercial/Industrial Development
Outdoor swimming pool
Sewer and water extended north of 169
□ Could this happen faster?
Analysis of what to do with garbage once closes in 2030
□ How much time does the land have to sit?
□ Who owns the land?
□ Solar farms were discussed as a possible use
Development of Specht property in eastern Elk River
Broadband connectivity
□ Would need legislative support
□ Is there a way to pay for it if we want to expand past what their
formula states? Some cities have gotten a grant for this.
Trail Connections
Trail from Lion John Weicht Park to downtown over the railroad tracks
More retail development in western Elk River
Annexation of Big Lake Township or a portion of it
□ Discussion should also include Sherburne County
What does redevelopment look like if Highway 10 becomes a freeway
River walk from Orono Park to Ramsey
Feasibility of moving train station to downtown
□ Elk River station crossing is dangerous
Budget Plan – Post Waste Management
Mid-Term Goals (2024)
Transportation development funding
Acquire business park land
Develop means for park capital needs
Commercial development
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June 22, 2020
-----------------------------
Public Safety Buildout
Understand obligations for landfill once it’s capped
Future of Pinewood Golf Course
Updating messaging to reflect our vision and mission statements after
Comprehensive Plan Review
□ Is the “Powered by Nature” message still relevant?
Sports dome over football practice field
Oak Knoll/Hales Field collaboration
□ Perhaps the city could take over maintenance of this field
Parks and Rec app
□ The app would identify park amenities, help with directions, suggest
local food and lodging, and provide interconnectivity
Consider athletic field needs analysis
Update city colors
□ Suggested red and black to match ISD #728 School District
Short-Term Goals (2020-2021)
Commercial Development
Great River Energy revenue replacement
□ Provide council with GRE fund balance
Budget and sinking fund for building repair
Zoning and Acquisition of “challenged” properties policy
Update ordinances and policies with clean purpose statement tying to an
overall vision
Keep tax rate flat for 2021 budget
Mr. Hecker asked Council about planning a grand opening event for the
multipurpose facility.
Council decided October may be a good goal for planning an event and suggested
inviting NHL hockey players who formerly played in Elk River.
Mr. Portner discussed options for purchasing a cover that would allow the ice sheet
to be covered or partially covered for concerts or other sports.
4. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 6:43 p.m.
Minutes prepared by Katie Porath.
___________________
John J. Dietz, Mayor
___________________
Tina Allard, City Clerk
Meeting of the Elk River City Council
Held at the Elk River City Hall
Monday, July 6, 2020
Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Nate
Ovall, Matt Westgaard, and Jennifer Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, Planning Manager Zack Carlton,
Planner Chris Leeseberg, Economic Development Director Amanda
Othoudt, Parks and Recreation Director Michael Hecker, Street and
Park Maintenance Manager Tim Sevcik, and City Clerk Tina Allard
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 6:35 p.m. by Mayor Dietz.
2. Pledge of Allegiance
Pledge of Allegiance was recited.
3. Consider Agenda
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to approve the agenda. Motion carried 5-0.
4. Consent Agenda
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to approve:
4.1 Check register as outlined in the staff report.
4.2 COVID-19 Preparedness Plan for City of Elk River.
4.3 Pay increase for part-time cable caster as outlined in the staff report.
4.4 Wind Energy Easement Agreement 20-20, with Elk River Municipal
Utilities.
4.5 Schedule a public hearing to review preliminary layout for the 169
Redefine project.
4.6 Hire Justin Ende as park maintenance worker effective July 7, 2020 as
outlined in the staff report.
4.7 Adopt Resolution 20-35 finding parcel is occupied by structurally
substandard buildings.
4.8 Position description and pay for liquor store delivery driver/clerk
position.
City Council Minutes Page 2
July 6, 2020
-----------------------------
Motion carried 5-0.
5. Open Forum
No one appeared for Open Forum.
6.1 Proclamation: Phil Barsody Day
Mr. Sevcik discussed Mr. Barsody’s history with the city. He commented Mr.
Barsody is a valuable resource and will be a big loss to the city.
Mr. Barsody commented it was a pleasure to work for the city and thanked the
Council.
Mayor Dietz read and presented the proclamation.
6.2 Recognize Franklin Outdoor Advertising/ Chris Barta TEL
Councilmember Wagner presented this item. She provided an update on the
Together Elk River campaign. She stated the Together Elk River Committee would
like to recognize Franklin Outdoor Advertising for their generous contribution to
advertise this program.
Mayor Dietz read the proclamation.
7.1 CommonBond Elk River Housing Limited Partnership
a. Land Use Amendment: Highway Business to High Density Residential
b. Conditional Use Permit to Establish a Planned Unit Development
c. Preliminary Plat: 60 Unit, 3 Story Apartment Building, Elk Ridge Center
Sixth Addition
d. Easement Vacation
Mr. Carlton presented the staff report.
Mayor Dietz opened the public hearing for all items.
Andrew Hughes, Director of Acquisition & Development for CommonBond,
discussed history company success. He discussed the following about his company
and this project:
Construct quality buildings and are a well-know and credible company.
Self-manage properties and are directly accountable for them. Long-term
ownership in their properties and therefore are highly invested.
Employees and training programs.
The city’s housing study highlights the need for affordable housing.
Earned wages in Elk River are below levels paid for rent in the community and
this type of housing is highly desire in this community.
City Council Minutes Page 3
July 6, 2020
-----------------------------
Proximately to nearby amenities.
Vast majority of residents will come from the community/neighboring
communities and tend to be retired or have professions like teaching.
Biggest misunderstanding is perception this is Section 8 Housing, but it is
workforce housing.
Reviewed building design/layout and neighborhood comparability.
Reviewed community engagement efforts prior to this meeting and the low
turnout. All shopping tenants were also notified.
Property has been vacant for over 10 years.
TH169 reconfiguration will not benefit this property to be more desirable for
commercial use.
Disagree with staff recommendation about parking stalls, which they were only
made aware of recently. The market determined the number of stalls proposed is
accurate. He further reviewed parking requirements in other communities. Other
communities work with them on parking requirements.
The project never had a planned access on Irving Street.
The trips per day would be less than a commercial business.
Property value misconception as it relates to affordable housing are unfounded.
He reviewed his company’s last two projects and its affects to surrounding
property values.
Leases with tenants are structured to reduce problem tenants.
Matt Finn, Senior Architect, LHP Architect, 4111 One North Avenue South,
Minneapolis discussed the following:
Site plan layout.
o Buffering on south side with 40 trees, 6-foot cedar fence for privacy.
o A 10-foot elevation change. Vegetation is visible over the top of the
building
Exterior materials. Height of wainscoting can be adjusted.
Building scale in relation to surrounding neighborhood.
Steven Casey, 19453 Irving Circle, thanked Council for taking his calls. He
expressed opposition to the project for the following reasons:
Additional traffic and noise. Residential traffic will be 24/7 versus daytime retail
traffic.
Not enough parking.
Number of additional vehicles the project would bring to his cul-de-sac.
Declining property values.
Increased crime.
Safety for local children who play in the street.
Not opposed to affordable housing but it must fit in with surrounding
neighborhood aesthetics.
Gary Tonsager, 19576 Holt Street, Pearl Vision owner and resident, expressed the
following concerns:
Area aesthetics and compatibility.
City Council Minutes Page 4
July 6, 2020
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o His business had to follow strict architectural standards and this complex
must comply within the same standards. The complex will dramatically
change the look and feel of the surrounding neighborhood.
o He reviewed a to-scale model of how the building will look with the retail
center and didn’t feel it would fit in.
Elimination of developable commercial land. He felt there was opportunity to
grow the commercial development.
o Eliminate chances for other businesses to locate near them.
o Concern for value of his building.
o He has put time and money into his business and was told the area would
be a retail center.
Access and parking issues between the complex and local businesses.
o Snow removal: where are vehicles from the complex going to park during
snow removal, fearing the business lot will be utilized.
o One-third of the parking stalls will be occupied by snow during winter
thus taking away some parking.
o Congestion at both ends of the street. He reviewed what he believed the
traffic patterns would be once completed.
Current property owner (Hempel Companies) has not put effort into selling the
land, noting dilapidated existing signage.
No privacy for nearby homes.
Robin Roberts, The Noble Quilter, 19570 Holt Street, expressed concerns as
follows:
Privacy for quilters utilizing the classroom.
Area aesthetics and compatibility.
o He reviewed satellite images of the area and felt the scale of the complex
out of proportion for the neighborhood.
o Elevation changes and affected views for nearby homeowners.
Traffic congestion.
Concern for cars stacking up at the apartment building.
Garbage removal.
th
Tom Halbakken, 11744 194 Avenue, expressed the following:
Compatibility with the neighborhood.
Council should adhere to current zoning regulations for commercial use.
Concern with grade of TH 169.
Ben Krsnak, Hempel Companies outlined the history of trying to sell this property
as follows:
Been marketing it since 2003. Trying for 17 years.
Professional in-house marketing, website, emails, brochures, targeting retailers,
postcards, external brokers.
Approximately 20,000 people have been contacted about this property.
Same techniques used to market all projects and have sold others with success.
Most businesses find land online, he discussed the hits on this particular
property. Spent significant amount of money online.
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July 6, 2020
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Member of MN Commercial Association of Realtors and this property has been
seen by everyone.
Reviewed case studies as noted in his presentation. They are capable and
successful at selling/marketing property but can’t create demand if it’s not
wanted in an area.
Land has been improved: fire hydrant/utilities/curb & gutter. New TH169
highway design will not help for commercial use. Selling land to CommonBond
for very little money.
Will stimulate some viability for the retail center with more clientele.
Lot of commercial sites available in Elk River that have been sitting for many
years and it is not the only community we are competing against.
People don’t have to choose Elk River when they have the whole country to
choose locations.
Sent letter recently with zero response or interest expressed.
He discussed the additional signage on the property.
Kids will not be driving so they don’t need parking stalls at the apartment.
There has been no interest in the property, and they need to consider other
opportunities.
They will continue to pursue the other lots.
Jacob Peterson, 19468 Dodge Street, stated the city is lucky to have CommonBond
working on this project and noted there is nothing available in the city for affordable
housing. He stated he is in support of this project and felt a lot of people his age
would support it.
Cecile Bedor, CommonBond, 1080 Montreal Ave., St Paul, discussed the following
regarding the fears expressed at this meeting.
There is no data for increased crime with workforce housing. They perform
criminal history checks on applicants. Complete staff training also makes sure
there is not crime.
Their residents will be the first to contact them when there are snow and
garbage issues.
Willing to make additional design improvements. Want everyone to be proud
of their business.
If required to put in covered parking they would have to raise rent and then
this project wouldn’t be affordable. Confident the city parking requirement is
not needed based on history.
Property values do not decline when you build affordable housing.
City housing study shows need for an additional 177 affordable housing
units. Residents have demanded the housing. CommonBond is the tool to
meet city goals.
In 2019 asked Council about support for the zone change before spending a
significant amount of money on this project.
Perry Beise, Planning Commissioner, stated the commission liked the project but
didn’t feel the location was appropriate because of the commercial zoning. He
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July 6, 2020
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further stated they didn’t feel it was a good time to change the zoning before the
Comprehensive Plan review scheduled this year.
Mayor Dietz closed the public hearing.
There was some initial discussion about various components of the project, such as
parking requirements, but Councilmember Westgaard suggested ruling on the land
use amendment first as the rest of the items may not matter if the amendment fails
to pass.
Councilmember Westgaard stated in 2019 Council made the decision to support this
project when they approved the letter of support because they weren’t sure the 169
Redefine would change anything to make this property more marketable for
commercial use. He stated there will be less traffic with this project versus
commercial business traffic, which has been determined from many previous studies.
He supports the project noting the property has been on the market for many years
and sympathizes with the fact that this property has been hard to sell. He noted there
is a need for affordable housing and the applicant is not asking for financial support.
He stated many of the arguments discussed are based on fear and not fact. He noted
there a many young people or displaced families who need an affordable place to
live. He further commented the applicant will be required to follow the architectural
design standards if this project is passed.
Councilmember Ovall concurred and thanked residents for their thoughtful
presentations. He stated he doesn’t see this project as low-income housing, but
rather workforce housing for people from the community. He struggles when area
residents and businesses speak against the project. He stated there is single family
housing on large lots in the surrounding neighborhood and this would be a high-
density project in the same area, which he struggles with whether it will work.
Councilmember Christianson expressed two issues: one, after all the community
engagement efforts, the public still has the same concerns that have not been
resolved; and two, a lot of responses he received feel the Council should follow the
Comprehensive Plan, which guides the property as highway business commercial. He
didn’t feel it had been vetted to explore other areas in the city already zoned for high
density residential. He stated he is not in support of going against the Planning
Commission recommendation and the Comprehensive Plan.
Councilmember Wagner stated this is a difficult decision, noting the city has a
Comprehensive Plan for a reason. She questioned if it is right to follow the plan in
this case. She discussed how people ask her many times to do something for the tax
base of the city and this is a good project for it. She stated there is a need for
workforce housing and it has been discussed many times throughout the community.
She believes it is a good project but questioned if it is right for the area. She stated
both sides have their merit.
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July 6, 2020
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Councilmember Ovall reviewed previous discussions from the Planning Commission
meetings. He discussed mixing residential with business and unintended
consequences, which can be good or bad dependent upon the situation.
Mayor Dietz stated his issue is with the zone change. He stated the residents in this
area were resistant when they were told the land around them would be zoned for
commercial development and now Council is considering changing the use on them
again. He believes the service road off TH 169 will generate more traffic for the area.
He questioned the amount of commercial land available in the city. He noted this is a
good project and knows CommonBond is a reputable company. He stated this
project will alter the landscape of the neighborhood and he will not support it.
Moved by Councilmember Christianson and seconded by Mayor Dietz to
direct staff to prepare a resolution making findings of fact denying the land
use amendment to change the underlying land use from Highway Business to
High Density Residential as the city has limited developable commercial land
available.
Councilmember Ovall stated this is an opportunity for the city and for
CommonBond and expressed concerns over the limited number of these types of
applications that get scored and funding from the state. He commented he is truly
torn and can’t dismiss all the calls he has received in opposition of the project.
Motion fails 3-2. Councilmember Westgaard, Wagner, and Ovall opposed.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve the land use amendment. Motion passes 3-2. Mayor Dietz
and Councilmember Christianson opposed.
Conditional Use Permit to Establish a Planned Unit Development
Preliminary Plat: 60 Unit, 3 Story Apartment Building, Elk Ridge Center
Sixth Addition
Easement Vacation
Councilmember Westgaard questioned if the architectural standards have been met.
Mr. Leeseberg stated staff would like to see more work completed on it.
Councilmember Westgaard stated he would support the request if the architectural
elements the rest of the development had to comply with are met. He also stated he
would support it if the parking and traffic flow does not have ingress/egress via the
retail center lot to the north. He stated snow removal must be managed on their own
site. He noted the city has received the most pushback about its parking
requirements in recent history. He understands the city requires one covered parking
stall per unit; however, it could be why the city doesn’t have affordable housing as
this drives the costs high and beyond a certain demographic and price point. He
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July 6, 2020
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stated he wouldn’t require covered parking if the parking standard can be met or
proof of parking can be met.
Councilmember Ovall felt covered parking kept rents expensive and prevented other
developments from occurring. He is unsure what would be needed for parking stalls.
Mayor Dietz suggested a compromise where the applicant must require 150 parking
spots, but they don’t need to be covered.
Councilmember Westgaard expressed concerns for the neighboring retail center lot
being used for overflow parking and suggested a reconfiguration of the apartment
lot.
Mr. Hughes stated with the current configuration it would be difficult to get 30 more
stalls, but they could possibly work with Hempel Properties for additional property.
He didn’t feel it was necessary to have the additional stalls and would ask for the
condition to be temporary if they could prove it was not needed over a reasonable
period of time.
Josh Krsnak stated his company will not profit from this project and they are selling
the land to move it off their inventory. He stated they have a lot of excess land and
they would be willing to donate the land to CommonBond for additional parking to
make the project work.
Councilmember Westgaard stated this would be a fallback plan for him because he
would like to preserve the lot for potential commercial use. He stated he would like
to see what the applicant can do with a redesign of the lot to get as close as they can
to 150 stalls.
Mr. Krsnak stated his organization owns over 220 parking facilities throughout the
United States and parking movements differ between residential and commercial
uses. He further commented there is never a need for all the stalls to be used at the
same time.
Mr. Beck stated the Planned Unit Development Agreement could be amended to
add a proof of parking condition on the Outlot for a certain number of years.
Councilmember Wagner stated she would like a sidewalk to Holt street.
Councilmember Westgaard stated he is not sure how this would affect the adjacent
lot noting the applicant doesn’t own it so they can’t develop on it.
Josh Krsnak stated if they own the lot it won’t be an issue to help the applicant out.
Mr. Leeseberg stated a condition could be added to require a sidewalk to the
property line.
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July 6, 2020
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Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to approve Conditional Use Permit, Case No. CU 20-07 with the
following conditions:
1. Approval of a Comprehensive Plan Amendment changing the land use
for the subject property from Highway Commercial to Residential.
2. A Planned Unit Development Agreement shall be developed and
signed by both parties prior to issuance of a building permit.
3. Construct a six-foot tall opaque fence along the south property line.
4. Staff approval of an updated landscape plan.
5. Staff approval of architectural plans/designs consistent with the
design standards for Elk Ridge Center.
6. A concrete sidewalk be constructed parallel to the internal private drive
out to Holt Street.
7. Proof of parking for 30 stalls, on an adjacent lot, for a period of two
years after occupancy shall be outlined in the PUD agreement. During
that time, if a developer were to develop the adjacent lot, it would have
to include the 30 proof of parking spaces, along with its own parking
requirements. After the two-year time, if it shown the 120 spaces are
adequate, and agreed by the city, the requirement can be removed.
Motion carried 4-1. Mayor Dietz opposed.
Moved by Councilmember Westgaard and seconded by Councilmember Ovall
to approve Preliminary Plat, Case No. P 20-05. Motion carried 3-2. Mayor
Dietz and Councilmember Christianson opposed.
Mr. Beck stated the easement is consistent with the preliminary plat and there are no
issues with approving it tonight.
Moved by Councilmember Westgaard and seconded by Councilmember Ovall
to approve Easement Vacation, Case No. EV 20-03. Motion carries 3-2. Mayor
Dietz and Councilmember Christianson opposed.
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8.1 Easement Vacation: Twin Lakes Road & 175 Avenue Community
Housing
Mr. Carlton presented the staff report.
Councilmember Ovall questioned if the Council is setting itself up with parking
requirement issues based on the previous agenda item.
Mr. Carlton stated this plan is conceptual but requires a site plan review and the
applicant would be required to meet the ordinance standards when seeking approval
in the future.
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July 6, 2020
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Moved by Councilmember Wagner and seconded by Councilmember Ovall to
direct staff to bring back a resolution on July 20, 2020, approving the
easement vacation. Motion carried 5-0.
8.2 Letter of Support: Community Housing Development Corporation
Mr. Carlton presented the staff report.
Councilmember Ovall expressed concerns with approving letters of support for an
applicant who then spends time and money on a non-binding project.
Councilmember Christianson expressed concerns with giving support when he
doesn’t have enough information about the project.
Mayor Dietz stated he doesn’t like the color of the building. He further stated he is
not in favor of utilizing Tax increment Financing (TIF) for residential projects. He
stated TIF is more appropriate for bringing business and jobs to the community.
Councilmember Christianson concurred further commenting he would also like to
see TIF used for blighted properties.
Councilmember Westgaard noted housing can be more challenging regarding TIF
and he agrees with the Mayor’s comments, but he would like to know more about
how the Housing and Redevelopment Authority (HRA) felt about the request.
Councilmember Ovall stated it is interesting how applications are presented to the
HRA because it’s not really a philosophical conversation of does/doesn’t deserve
TIF, it’s more about whether these applications meet the criteria of the
policy/program. He questioned what project you ever see that doesn’t meet the
but/for test, which is a joke. He sated for the HRA it’s about meeting policy and
state law and not a focus on whether to use TIF for various types of projects. He
stated the HRA has been more focused and engaged on redevelopment.
Councilmember Westgaard stated he would like more direction from HRA in the
future on their vision, intent, purpose.
Councilmember Ovall stated much of this is how the applications are presented by
staff with a focus on policy.
Councilmember Westgaard stated he would approve a letter of support for some
financing but can’t support TIF without having more information from the
application and the HRA.
Councilmember Ovall further noted it’s presented as little risk to the city whenever
its pay as you go.
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July 6, 2020
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Mayor Dietz commented it is more appropriate for Council to take the philosophical
approach and for the HRA to be more mechanical.
Councilmember Ovall stated the HRA did ask for more Council direction on what
they want to see.
Ms. Othoudt outlined the request by the applicant. She stated it’s typical to ask for
TIF because it’s costly to develop affordable housing.
Councilmember Wagner asked for more clarification about the joint finance
committee meeting where it was questioned whether TIF would be needed if the
applicant increased the annual rental rates up to 60% AMI. She further noted the
consultant said no.
Ms. Othoudt confirmed this is correct.
Councilmember Wagner stated she is not in support of this project for TIF funds.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to adopt Resolution 20-36 Supporting the Tax Credit Application for
Proposed Community Housing Development Corporation Multiple Family
Housing Project and Recognizing that the Project Would Help Meet
Identified Housing Needs. Motion carried 5-0.
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Patricia Downey, 10407 175 Avenue, stated when she moved into her house
everything in the area was zoned residential but has since recently changed. She
expressed opposition to the project for the following reasons:
Neighbors are on large acre lots in a quiet neighborhood.
South side is high density, but north side is low density residential.
Not easy for trucks to navigate the roundabout.
Not enough parking.
There are enough apartments on the south side of town.
No one uses the train and high density is not needed.
Zoning is wrong for this location.
Concern she will be required to hook up to city sewer to sell her house.
Councilmember Westgaard explained the Focus Area Study and how areas near a
transportation hub are guided and expected to have higher density.
8.3 Multipurpose Facility Advisory Commission Interviews
Council interviewed multiple candidates.
Councilmember Christianson stated he received a text message from Joy Goodwin
informing him she rescinded her application.
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July 6, 2020
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Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to appoint Greg Loidolt to the commission as the turf use member
to February 28, 2021, and Dave Williams to the commission as the turf use
member to February 28, 2023. Motion carried 5-0.
Moved by Councilmember Wagner and seconded by Councilmember
Christianson to appoint Mike Cunningham to the commission as the ISD 728
member to February 28, 2022. Motion carried 5-0.
Moved by Councilmember Wagner and seconded by Councilmember
Christianson to appoint Matt Westgaard to the commission as the City
Council designee to February 28, 2022. Motion carried 5-0.
Moved by Councilmember Wagner and seconded by Mayor Dietz to appoint
Karla Walker to the commission as the ice use member to February 28, 2022,
and Michael Westgaard to the commission as the ice use member to February
28, 2023. Motion carried 5-0.
Moved by Mayor Dietz and seconded by Councilmember Westgaard to
appoint Jim Hecker to the commission as the senior center member to
February 28, 2021. Motion carried 5-0.
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to appoint Jack Lorge to the commission as the at-large member
to February 28, 2021. Motion carried 5-0.
Moved by Councilmember Westgaard and seconded by Councilmember Ovall
to appoint Jacob Peterson to the commission as the at-large member to
February 28, 2023. Motion carried 5-0.
8.4 Minnesota Municipal Power Association Wind Turbine Easement
Mr. Hecker presented the staff report.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve Wind Turbine Easement Agreement 20-21. Motion carried
5-0.
8.5 Call Special Meetings
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to schedule the following special meetings:
Monday, July 27, 2020, 5:00 p.m., 2021 budget discussion.
Monday, August 10, 2020, 5:00 p.m., 2021 budget discussion.
Wednesday, August 12, 2020, 4:00 p.m., joint meeting with Planning
Commission to discuss Comprehensive Plan.
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July 6, 2020
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Motion carried 5-0.
8.6 Council Goals/Mission/Vision
Mr. Portner presented the staff report.
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to approve the 2020 Council goals, mission and vision. Motion
carried 5-0.
8.7 Discuss Work Session Items
Mr. Portner presented the staff report.
Mayor Dietz added consideration of cultural tolerance and understanding.
9. Council Liaison Updates
This item was removed from the agenda.
10.1 Activity Center Facility Uses
Mr. Portner presented the staff report.
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Craig Prange, 14312 215 Court, representing Glory of Christ Fellowship, reviewed
a presentation and provided a history of their organization and why they are looking
for a permanent location for their ministry. He explained how the Activity Center
would be a good fit.
Tina Meeker, reviewed her presentation and discussed how the arts are good for a
community. She discussed how they would like to use the Activity Center.
Barry Hohlen, 19331 Rush Court, reviewed his presentation and explained his
groups vision to serve youth in the community.
Councilmember Westgaard asked Mr. Hohlen if he has given any thought in trying
to make the new multipurpose facility work for their needs. He outlined the
opportunities in the space noting it is within a much safer walking distance for kids.
Mr. Hohlen stated the accessibility is fantastic but had concern about 24-hour, 365
accessibility and competing with needs of other facility users.
Todd Roskaft, 22068 Brook Road, stated he believes the activity center is a great
asset to the community and there are a lot of use opportunities. He doesn’t want to
see it sold, but rather it should be utilized by non-profit groups. He further stated the
Mason’s would like the building too.
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July 6, 2020
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Mayor Dietz noted Council has had previous discussions about the center and has an
interest in selling the property because they no longer want to maintain it. He stated
it should be put up for bid. He stated there are other groups interested who should
also get an opportunity to bid on the property. He stated the city has vested close to
$1 million in the center and needs an overhaul.
Mr. Portner reviewed ERA survey statistics previously asked of residents about what
they would like the city to do with the property.
Councilmember Ovall stated more staff and maintenance is required to maintain
more buildings and the city is looking to streamline operations to run as lean as it
can. He noted this property is a burden and Council must prioritize dollars.
Council consensus was to engage a broker.
Councilmember Westgaard requested disclosure to the broker about the needed
repairs to the center.
10.2 Riverfront Concert Series
Mr. Hecker presented the staff report. He reviewed the City of Ramsey and Maple
Grove process related to a COVID-19 plan and limiting concert ticket sales.
Mr. Portner noted the multipurpose facility would be restricted to 250 people. He
further reviewed products that act as flooring over ice.
Councilmember Wagner stated she would be okay using Rivers Edge Commons
Park with a COVID-19 plan in place and understanding about 175 people would be
able to attend. She stated she is not interested in rushing into purchasing a floor for
the arena.
Councilmember Ovall questioned average concert attendance during a non-covid
year. He felt the city would have three times the overhead for barely any people
having opportunity to watch a concert.
Councilmember Wagner understood but felt people want to get back to a sense of
normalcy. She stated it would benefit area restaurants.
Councilmember Ovall expressed concerns with Elk River being a hot spot 14 days
later.
Councilmember Wagner stated it would be difficult to prove an outbreak happened
from the concerts.
Councilmember Christianson questioned the liability.
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July 6, 2020
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Councilmember Westgaard said there will be staff at the event to ensure social
distancing but noted outside the park property will be out of city control.
Councilmember Wagner stated other cities are doing it and have had no issues so
Elk River should be able to do it
Mr. Hecker said the other communities are not getting a lot of attendance. He
further expressed concern with loss of staff to manage concert attendees by end of
summer. He noted costs would be about $18,000.
Mayor Dietz suggested trying the process once to see how it goes.
Councilmember Christianson stated everyone needs to make decisions about their
own personal risks.
Councilmember Ovall questioned if any staff expressed concerns with working the
event.
Mr. Hecker stated yes.
Mr. Portner stated the biggest concern is protecting employees.
Councilmember Christianson asked if volunteers could work the event instead.
Mr. Portner noted the city would still be liable for volunteers.
Councilmember Ovall commented again about the amount of work with staff time,
resources and materials produced for very little benefit.
Council consensus was to try a concert and see how it goes.
11. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 11:48 p.m.
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John J. Dietz, Mayor
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Tina Allard, City Clerk