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4.1. DRAFT MINUTES (2 SETS) 03-15-2021 Closed Meeting of the Elk River City Council Held at the Elk River City Hall Monday, March 1, 2021 Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Mike Beyer, Matt Westgaard (arrived at 6:19 p.m.), and Jennifer Wagner Members Absent: None Staff Present: City Administrator Calvin Portner, Planning Manager Zack Carlton, Park and Recreation Director Michael Hecker, 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 6:00 p.m. by Mayor Dietz. 2. Closed Meeting The purpose of the meeting was to consider offers for the sale of Pinewood Golf Course, 18150 Waco Street NW, per MN Statute Section 13D.05, Subdivision 3 (c). 3. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 6:46 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, March 1, 2021 Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Mike Beyer, Matt Westgaard, and Jennifer Wagner Members Absent: None Staff Present: City Administrator Calvin Portner, Economic Development Specialist Colleen Eddy, Planning Manager Zack Carlton, Senior Planner Chris Leeseberg, Fire and Building Official Bob Ruprecht, Building Permit Technician Kati Peterson, Fire Chief Mark Dickinson, City Attorney Peter Beck, 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 6:55 p.m. by Mayor Dietz. 2. Pledge of Allegiance Pledge of Allegiance was recited. 3. Consider Agenda Item 4.9 was added to the agenda. Moved by Councilmember Beyer and seconded by Councilmember Westgaard to approve the agenda as amended. Motion carried 5-0. 4. Consent Agenda Moved by Councilmember Wagner and seconded by Councilmember Beyer to approve: 4.1 February 16, 2021, Regular Minutes February 22, 2021, Special Minutes 4.2 Check register as outlined in the staff report. 4.3 Energy City Commission Appointment th 4.4 Miske Meadows 7 Addition Development Agreement 4.5 Pond Hockey Goals Donation from Paul Olson 4.6 Monetary Donation from John and Teresa Kendrick 4.7 Authorize Execution of Grant Agreement for Minnesota Department of Public Safety Grant 4.8 Monetary Donation from Charles Larson City Council Minutes Page 2 March 1, 2021 ----------------------------- 4.9 2020 Mineral Excavation License – Aggregate Industries Motion carried 5-0. 5. Open Forum No one appeared for Open Forum. 6.1 Sherburne County Update: COVID Vaccinations Amanda Larson, Sherburne County Health and Human Services Director, presented the staff report. Mayor Dietz asked if the number of vaccine doses includes clinics and pharmacies. Ms. Larson confirmed yes. Councilmember Beyer asked if people outside the county counted toward the Sherburne County totals. Ms. Larson stated that, since this is a federal program, Sherburne County is not able to deny anyone from outside the county nor are they able to prioritize Sherburne County residents. Councilmember Wagner asked how Sherburne County was trying to reach the 65+ population when many of them did not check email or answer their phone. Ms. Larson stated the county has to work quickly to respond to changing guidance including the amount of vaccine that will be delivered and when it will arrive. They have reached out through religious communities, the local veterans office, MN response volunteers, senior centers, activities centers, and food shelves. Councilmember Wagner asked if there was a way to get the State to allocate more doses to Sherburne County. Ms. Larson stated the County is demonstrating they are capable of distributing more doses and have been persistent in contacting the Minnesota Department of Health. Councilmember Beyer suggested getting the information in the newspaper and in a flyer to hand out. Ms. Larson stated they are just starting to see an increase in dose allocation and can now consider a stronger campaign to inform residents of the opportunity. 6.2 Introduction of New Employee City Council Minutes Page 3 March 1, 2021 ----------------------------- Mr. Ruprecht presented the staff report introducing Kati Peterson, Building Permit Technician. The council welcomed Ms. Peterson. 6.3 Recognition of Promotions Within Fire Department Fire Chief Dickinson presented the staff report. Mayor Dietz gave the oath of office to Michael Kelleher and Philip Luitjens for their promotion to Lieutenant. 7.1 Conditional Use Permit for Commercial Recreation Facility at an Approved Education Institution Mr. Leeseberg presented the staff report. Mayor Dietz opened the public hearing. There being no one to speak to this issue, Mayor Dietz closed the public hearing. Mayor Dietz asked if the field would move closer to the Furniture and Things Community Event Center. Mr. Leeseberg confirmed the field will be slightly closer. Mayor Dietz asked about the effect on school sports in the fall. Patrick Triggs, representative from Wold Architects and Engineers, stated the field would not be finished until late September and there will not be home games until the construction is completed. The school will attempt to arrange the first few games of the football season to be away games. Moved by Councilmember Wagner and seconded by Councilmember Christianson to approve the Conditional Use Permit with the following conditions to satisfy the standards set forth in Section 30-654: 1. Lighting shall meet the standards of Section 30-937. 2. Satisfaction of all comments in the Comment Letter dated January 8, 2021. 3. Variance (V 21-01) must be approved and recorded prior to the CUP being recorded. Motion carried 5-0. 7.2 Administrative Subdivision of Wildlife Woods Addition Mr. Leeseberg presented the staff report. The applicant wants to look at an easement vacation in the future, but this will not affect this plat. Staff can work with the applicant on drawings. City Council Minutes Page 4 March 1, 2021 ----------------------------- Mayor Dietz opened the public hearing. There being no one to speak to this issue, Mayor Dietz closed the public hearing. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to adopt Resolution 21-16 the final plat of Wildlife Woods Addition with the conditions that Park Dedication shall be paid for two dwelling units at the rate applicable when the subdivision is released for recording. Motion carried 5-0. 7.3 Sportech Tax Abatement Ms. Eddy presented the staff report. Mayor Dietz opened the public hearing. Jim Glomstad, CEO of Sportech, thanked the council for their support and consideration. Mayor Dietz closed the public hearing. Council was excited to see Sportech grow and felt the project was a good use of the tax abatement program. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to adopt Resolution 21-17 granting a property tax abatement for certain property in the City of Elk River and authorizing the execution of a tax abatement and business subsidy agreement for the Sportech Phase II project. Motion carried 5-0. 7.4 Ordinance Amendment to Master Fee Schedule Mr. Portner presented the staff report. Mayor Dietz opened the public hearing. There being no one to speak to this issue, Mayor Dietz closed the public hearing. Moved by Councilmember Christianson and seconded by Councilmember Westgaard to adopt Ordinance 21-4 amending the 2021 Master Fee Schedule. Motion carried 5-0. 8.1 Pinewood Proposals Mayor stated there was past public input in person and by email and two Requests for Proposal were received. Mr. Portner presented the staff report. City Council Minutes Page 5 March 1, 2021 ----------------------------- The proposals included:  Elk River Golf Club, which would include an exchange of land  Jennifer Abrahamson, Trevor Birdsall, and Adrienne Thompson, which was a cash offer including a contract for deed over 15 years. Councilmember Beyer stated he has received public input and will support the best option to make sure the golf course thrives into the future. He would like to hear the other council choice before stating his. Councilmember Christianson stated his priority is the longevity of the golf course. It is clear the community wants it to remain a golf course. He supported the Abrahamson/Birdsall/Thompson proposal. Councilmember Westgaard stated that the golf course has been a subject of discussion for the past 16 years since the property was purchased. There is a strong interest in protecting this community asset and ensuring the existence of the golf course, something which either proposal would accomplish. The council supports selling the golf course. Both offers are from members of the Elk River community. The cash offer from Abrahamson/Birdsall/Thompson was cleaner and would ensure the golf course existence for 15 years. The council cannot guarantee Pinewood will be a golf course forever as it is at the discretion of future councils and land use. Councilmember Wagner felt she was not looking to sell the golf course this year. She is not opposed to selling it, however, she felt both proposals lacked information. She did not support either proposal. Mayor Dietz stated it was the city’s intent to keep Pinewood as a golf course. The course is popular with kids and seniors and made a profit of almost $70,000 in 2020, partly due to COVID-19. If the Abrahamson/Birdsall/Thompson group fails to make their payments during the 15 years the course will revert back to the city, therefore they have an incentive to perform and improve the golf course. He appreciates what Chris Singer and the Elk River Golf Club have done for Pinewood. The Parks and Recreation Commission was lukewarm about the property acquisition. He was in favor of going with the Abrahamson/Birdsall/Thompson proposal. Moved by Councilmember Christianson and seconded by Councilmember Westgaard to develop a purchase agreement and necessary actions to prepare for the sale of Pinewood Golf Course with Jennifer Abrahamson, Trevor Birdsall, and Adrienne Thompson. Motion carried 4-1. Councilmember Wagner opposed. Mayor Dietz stated the Abrahamson/Birdsall/Thompson group could work out final details of the agreement with Mr. Portner. 8.2 Discuss Work Session Items City Council Minutes Page 6 March 1, 2021 ----------------------------- Mr. Portner presented the staff report. Mr. Portner stated he would like to set up a joint meeting with Sherburne County. 9. Council Liaison Updates Councilmembers provided updates which are outlined in the respective advisory board’s minutes. Mayor Dietz added he had spoken to Public Works Director/City Engineer Justin Femrite about the tree removal. Of the $60,000 budgeted for landscaping, MnDOT has agreed to pay for 10% of that and all maintenance of landscaping would be the city’s responsibility. Mr. Femrite recommends waiting until the project is complete to decide on landscaping since it will be paid and maintained primarily by the city. Mayor Dietz also added he had talked to Utilities concerning the chance excess electric costs from the Texas blackouts would affect residents. The city belongs to Minnesota Municipal Power Agency (MMPA) which has a large Rate Stabilization Fund. Although some places in Minnesota may see a rate increase, the fund should offset increases for Elk River residents. Mayor Dietz asked Mr. Portner about the sign for the Furniture and Things Community Event Center. Mr. Portner stated the sign may be in place this week. Councilmember Wagner added the Together Elk River group was planning another video demonstrating how Elk River businesses also shop locally. They will be launching a “Are you a ShoppER?” campaign to promote local shopping and a spirit week the first week in April. The Council recessed at 8:16 p.m. for work session. The meeting reconvened at 8:21 p.m. 10.1 Request for Assistance for WAC/SAC Fees Mr. Portner presented the staff report. Patricia and Shawn Downey, property owners, were in attendance. Mr. Downey outlined his history and expenses since moving to Elk River. When they moved to the property, they were given opportunity to connect to the water and sewer as the street was under construction. They were given a price and agreed to it but the construction was delayed. Poor water quality necessitated buying an osmosis water filter and using their well water. Part of their property was used to widen the road and add a bike path which necessitated moving their irrigation system. After they had grown trees along the bike path, city staff asked them to remove them as City Council Minutes Page 7 March 1, 2021 ----------------------------- they were scratching city plows. The city requires homeowners connect to city water and sewer if they are within 300 feet of the road before they sell their property. The Downey’s wish to be prepared for selling their property in the future and are 215 feet from the road therefore they connected to city sewer and water. Due to increased cost to connect to city water and sewer, he was requesting the difference in amount of WAC and SAC fees from the time he received quotes in 2002 to the current amounts – in the amount of $7,500. Mayor Dietz asked if the Downey’s wanted to sell their property due to an apartment building being built nearby. Mr. Carlton stated Section 78-21 of the City Code states a property located within 300 feet of the water utility shall be required to connect prior to the sale of the property. Councilmember Westgaard clarified if a building was constructed 301 feet from the curb it did not have to connect per the ordinance. If urban services are available and abut the property, you would need to upgrade to connect regardless of 10 feet or 300 feet. Mr. Carlton stated he does not have a history of why the distance was chosen. Mayor Dietz asked the Downey’s if they were now hooked up to city water and sewer. Ms. Downey stated they were connected. City Attorney Beck confirmed the ordinance was correct. The city does not have any program or authority in the ordinance to waive or not charge current fees. Mr. Downey stated that, when they first moved into their property, the construction of the street and path wrecked their irrigation and resulted in tree removal. Mayor Dietz questioned if the irrigation and trees were in the right-of-way. Did the city pay the Downey’s for using part of their property to widen the street? Mr. Downey stated they did not receive payment. City Attorney Beck stated that, in some cases, the city would waive street assessments in exchange for not paying for land acquisition for right-of-way. Council agreed that previous owners may have signed an agreement and taken compensation. Further research would have to be conducted on the acquisition of the property used for right-of-way and trail and the reason why construction of the street stopped for a period of time. City Council Minutes Page 8 March 1, 2021 ----------------------------- Mr. Downey also asked the city to reassess the 300 feet requirement to connect to urban services. Councilmember Christianson felt it would be useful to look at the ordinance. City Attorney Beck added the requirement to connect on sale provision was added to the ordinance in 2017 but connection has always been required within 3 years. Mayor Dietz asked for further research and the item would return to a future work session. 10.2 Tax Increment Finance (TIF) Policy Mikaela Huot, Director at Baker Tilly, presented the staff report. She discussed the redevelopment of the Saxon site and TIF request, a review of TIF, policy considerations, financial needs analysis, and the city’s TIF policy overview. Mayor Dietz questioned the property appraisal of $1.7 million. He would like to get an independent appraisal to validate this amount. Mayor Dietz asked Ms. Huot if she would advise not going past 15 years. Ms. Hout stated research shows the county value has decreased but the purchase price has increased. The level of assistance is based on the gap. Mayor Dietz hesitated to deviate from past practice. 20 years was a long time to not pay property tax. Councilmember Westgaard felt the property really needed redevelopment which might make him more motivated to agree to a slight extension on this project. Ms. Huot stated the current request was outside the city’s policy parameters. Either the city would have to deviate from the existing policy as a one-time exception or the policy would have to be amended to change the terms. Mayor Dietz asked if there was a maximum dollar amount. Ms. Huot stated the applicant did not put a maximum amount. She added the council could amend the time period to 17-18 years instead of going to the full 20 if they wished due to the blighted condition. Mayor Dietz asked if the progress was on hold until an independent appraisal could be conducted. Ms. Huot stated that a public hearing was scheduled for April 5, 2021. Either the council could proceed with the public hearing or add the information received from the appraisal after the public hearing. City Council Minutes Page 9 March 1, 2021 ----------------------------- Council felt it would be valuable to continue with the public hearing and gain public input. The terms and duration would be determined. They leaned toward a one-time deviation from existing policy rather than a change in policy. Councilmember Wagner added that a change in costs could negate the need for TIF financing. 10.3 Downtown Redevelopment Next Steps Mr. Portner presented the staff report. Mr. Carlton presented the council with four options based on discussions from the February 22, 2021 Joint EDA, HRA, and Council meeting which included public input: A. Move forward with what they learned at the meeting B. Take a step back to put what was learned into the Comprehensive Plan C. Take the information and work with the Comprehensive Plan consultant to find out how they would play this into the Comprehensive Plan D. Create an addition to the Comprehensive Plan outside the scope redoing the Mississippi Connections Plan as an additional chapter specific to downtown including a traffic study, pedestrian bridge, and parking study. Preliminary research showed this could cost $60,000 Councilmember Christianson stated his perception of the joint meeting was that there could be a better use of the river and amenities. Parking was an issue and maintaining character is a strong message. Many people in the downtown area like it the way it is because that is what they are used to. Councilmember Westgaard stated the city is fixated on the “core” (Jackson Ave to Lowell St, Highway 10 to Main St). The downtown area is bigger than these two blocks and includes the area across the tracks. He questioned if the council should expand the Comprehensive Plan analysis to break it down further. He agrees limited parking is a strong consideration. Councilmember Wagner agreed they should consider breaking the downtown into smaller pieces until pedestrian access was created across Highway 10. HRA Commissioner Larry Toth agreed the area across the tracks looks more delinquent but it would be hard to invest in it without knowing the plans for Highway 10 development in the future. Commissioner Toth added the original town was across the tracks and moved after a fire. Councilmember Beyer asked if Main and Gates planned to connect to make downtown bigger. City Council Minutes Page 10 March 1, 2021 ----------------------------- Mr. Portner stated the purchase of these properties was an opportunity for the EDA to expand development potential. He asked if there should be a change to the Mississippi Connection Plan area. Mr. Carlton stated the Mississippi Connection Plan includes a very large area encompassing Highway 169 to the Dam, and the Mississippi River to School St. There is also the issue of how to address the barriers of the railroad tracks and Highway 10. Councilmember Westgaard noted the development of Interstate 35 in Duluth which helped with traffic flow despite constraints. Councilmember Beyer stated it would be unfortunate to make improvements only to have Highway 10 improvements destroy them. He urged the council to continue the momentum from the meeting as people will continue to have questions and suggestions. Councilmember Westgaard added, if the HRA, EDA, Downtown Elk River Business Association (DERBA), and city understand each other and the vision it should help in the future when people ask, “what are you doing to us?”. Mayor Dietz would like to have further discussion with Deborah Leedahl who spoke at the joint meeting on behalf of the DERBA. He asked Mr. Carlton to find out if the cost of adding the downtown to the Comprehensive Plan would be $60,000. Mr. Carlton will get more details and bring them to a future work session. 10.4 Annual Council Retreat Mr. Portner presented the staff report. He suggested bringing in an outside consultant who might run a personality characteristic test and provide input. He asked what things the council may want to cover. Councilmember Westgaard asked for an update on the business survey to see if there were new results and anything needed to be adjusted. Mr. Portner will look at dates in late April and provide those to the council. 10.5 Joint Finance Committee Membership Mr. Portner presented the staff report. Currently there are three members of the HRA who also serve on the Joint Finance Committee, making it a quorum. The three members are Larry Toth, Nate Ovall, and Denny Chuba. City Council Minutes Page 11 March 1, 2021 ----------------------------- Mayor Dietz stated one of the three would have to volunteer to leave the committee and asked Mr. Toth to add the item to the agenda for the next HRA meeting. Mr. Portner stated that Bob Robeck, the owner of Elk River Meat’s, has announced his retirement. The HRA may look into buying the property. 11. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 10:01 p.m. Minutes prepared by Katie Porath. ___________________ John J. Dietz, Mayor ___________________ Tina Allard, City Clerk