07-11-2005 CC MIN
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MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY II, 2005
Members Present:
Mayor Klinzing, Councilmembers Dietz, Farber, Gumphrey, and Motin
Members Absent:
None
Staff Present:
City Administrator Pat Klaers, City Engineer Terry Maurer, Planning
Director Michele McPherson, Director of Economic Development
Catherine Mehelich, Assistant Director of Economic Development Heidi
Steinmetz, Finance and Administration Services Director Lori Johnson,
City Attorney Peter Beck, and City Clerk Joan Schmidt
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 6:30 p.m. by Mayor Klinzing.
2. Consider 7/11/2005 Agenda
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER FARBER TO APPROVE THE AGENDA AS PRESENTED.
MOTION CARRIED 5-0.
3.
Consider Consent Agenda
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILEMBER FARBER TO APPROVE THE FOLLOWING CONSENT
AGENDA ITEMS:
3.1. JUNE 27, 2005 COUNCIL MINUTES
3.2. CONSIDER WESTBOUND BIDS
3.3. RESOLUTION ACKNOWLEDGING CONTRIBUTIONS TO THE
POLICE DEPARTMENT FROM THE BANK OF ELK RIVER.
MOTION CARRIED 5-0.
4. Open Mike
Noone appeared.
5.
5.1.
Worksession
Update on Bank of Elk River Downtown Building Proposal
Director of Economic Development Catherine Mehelich presented her staff report
regarding the proposal to expand The Bank of Elk River to accommodate current and future
growth. She stated that bank representatives wished to discuss with the City Council the use
of Tax Rebate Financing assistance and flexibility on parking requirements.
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City Council Minutes
July 11, 2005
Page 2
Representatives from The Bank of Elk River present were John Babcock and Pat Dwyer.
Mr. Dwyer explained how they are outgrowing their current facility, will need approximately
40,000 square feet, and are anticipating adding second and third floors to the existing
building. He indicated that even though expansion at the downtown site is more expensive
than new construction on the vacant land they own in Otsego, they wish to remain in
downtown Elk River and have purchased the Boelter's site along Highway 10 for additional
parking.
Rick Keillor with Vanman Architects and Builders, Inc. explained the design for the site.
The second floor addition of approximately 20,000 square feet would be the Erst phase.
Phase One would also consist of a community room in the basement. Phase Two would be
the addition of the third level adding an additional approximately 10,000 square feet.
Ms. Mehelich explained that this project does not qualify for Tax Increment Financing (TIF)
but would qualify for Tax Rebate Financing (fRF). Staff has estimated $400,000-600,000 of
TRF money could be available from the City and County in a lO-year period.
City Administrator Klaers stated that the size of this project and having a building three
stories in height is consistent with the redevelopment and expansion goals of the BRA and
complements the size and scope of the two other downtown revitalization projects that are
currently taking place.
Director of Planning Michele McPherson explained that with the parking requirement for
banks, the total number of spaces required for the building after expansion would be 210
spaces. The Bank's current site after expansion plus the Boelter's lot to the east provides a
total of 104 parking spaces. She stated that in the past the City has not required individual
sites to provide 100% of their required parking and staff believes that this trend should
continue with any bank expansion.
Ms. McPherson stated that even though the code requires 210 spaces for parking, she
believes that what they will provide and with the sharing of other parking areas, it seems
reasonable for them not to have to provide this 100%. She stated that this may need to be
reevaluated after all the downtown area projects are completed but that she feels that the
parking they are proposing to provide should be sufficient.
Ms. McPherson stated that parking in the Boetler's site has been determined to be an
accessory use and staff will be reviewing the parking plan for site plan approval, at which
time such items as access, grading and drainage, and landscaping will be reviewed.
Councilmember Dietz inquired of Mr. Dwyer if the employees would park in the downtown
area. Mr. Dwyer answered yes they would. -
Councilmember Dietz inquired if the 104 parking spaces meet the bank's needs. Mr. Dwyer
stated yes and that they are willing to work with this number to show their commitment to
remain in the downtown. He stated that individuals could park in the King Avenue parking
lot and other public parking areas.
Mayor Klinzing stated that she and the council wish to have the bank remain in Elk River
and wish to help in whatever way possible to allow,them to stay.
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City Council Minutes
July 11, 2005
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Councilmember Dietz inquired of the bank representatives if what they heard tonight was
positive for staying. Mr. Dwyer indicated that it was.
Councilmember Morin stated that he agrees with what has been stated tonight and fully
supports the use ofTRF for this project. He did indicate apprehension over the parking
issue. He is in favor of moving forward but feels we need to look at how we can get
additional parking in the doWntown area.
Mr. Babcock stated that their major concern in respect to parking is that when they need to
do the expansion for the third floor (perhaps several years from now) there will not be an
issue regarding parking. He indicated that what they need now is some reasonable assurance
that it is understood that should they start doing Phase One soon and Phase Two in the
future that the parking won't be an issue in the future.
Councilmember Dietz asked for a time frame. Mr. Dwyer stated that they are restricted in
their current building for space and need this addition just as soon as possible.
It was the consensus of this Council to indicate to future councils that with
expansion on this site years from now for a third level, that parking is not an issue
that should prevent the planned future expansion.
5.2.
Downtown Revitalization Project - Discussion with MetroPlains
This portion of the Council Meering was a] oint Meering with the HRA. HRA Chairman
Stewart Wilson called the HRA meering to order. Commissioners present were: Louise
Kuester,]ean Lieser, Larry Toth and Paul Morin.
Director of Economic Development Catherine Mehelich presented her staff report. Vern
Hanson of MetroPlains Development and Michele Mongeon of ]LG Architects were
present.
Mr. Hanson explained that they have come back with a revised version of the Bluffs of Elk
River project, keeping the original character of the sketch as well as providing the overall
context to the City of the whole project.
Ms. Mongeon indicated that the new revision shows the main part of the building extending
westerly popping up the three southerly pieces. She stated that detailing of the top piece is
much more prominent. She stated that the corner element is slightly taller with recessed
balconies. This current perspective illustrates recessing brick between the two windows with
some subtle changes in the rear.
Councilmember Morin asked if the back piece is set back. Ms. Mongeon indicated that the
red piece is in the same plane with the brick veneer sticking out. She stated if you look at
the floor plan this would be on the same plane. The red brick sticks out in front of the buff
colored portion of the building.
Councilmember Gumphrey inquired as to how much higher the tower is. Ms. Mongeon
indicated 18 - 20 inches. Councilmember Gumphrey inquired if there would be a separate
balcony on the fourth floor for each unit. Ms. Mongeon replied that they are working with a
market study advisor in keeping this option flexible. She stated that some people may wish
to have two-space areas.
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City Council Minutes
July 11, 2005
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Commissioner Wilson inquired if there was any change in the other side of the building. Ms.
Mongeon indicated, no, that the changes to the detailing of the brick are the same.
Commissioner Toth asked that in rearranging the front so that this building does not look
like a long, flat building, is this now the compromise or will we be able to get back to the
original sketch. Ms. Mongeon stated that she feels this version is very close to the original
sketch and in character with what was shown previously. She said that the sketch gives a
much skewed view. The current view is more of a perspective as you stand on the street.
Commissioner Kuester stated that she feels that people were attracted to the tower that was
above the rest of the building and would like this to be more of a landmark. Ms. Mongeon
stated that if any piece was taller, it would be above the crown and not sure if this would be
appropriate.
Commissioners Kuester and Wilson stated that they felt the illusion was that of a turret
standing alone and taller.
Mr. Hanson stated that they are seriously looking to get started on this project. He stated
that everyone will have a different opinion of what could be done. He felt that the architects
have done a great job and are being consistent with making changes. A four-story turret is
very different than the current one-story building that is there. He feels that this project will
stand on its own and will be very special.
Councilmember Motin stated that he feels that these changes are improvements. He stated
that not everybody will fall in love with everything, and that the only comments he has had
with the exception of those present in this room have been positive. He is in favor of
moving forward with what has been presented tonight.
Councilmember Farber would like to have on record that he is against the project but
believes that this revision is a significant improvement and looks very nice.
Mayor Klinzing agrees and realizes that this is a difficult project and stated that we need to
go forward.
Councilmember Gumphrey stated that he feels the architect has done an excellent job.
Councilmember Dietz stated that we should go forward with the project as presented.
Chair Wilson thanked MetroPlains and JLG, and stated that he can live without the turret
being higher and that this building will be an improvement for the community.
Mr. Hanson stated that the response has been overwhelming. There are many interested
parties who wish to move into the downtown building and even enough interest to fill the
whole building. He stated that a July 18th closing of the US Bank has been requested and
they are waiting for confirmation.
Commissioner Toth wished to clarify that he asks questions sometimes that appear on the
offensive, but that he feels too that MetroPlains and JLG Architects have done a great job.
He stated that he needs to ask the questions, as that is his role, that he is accountable to the
citizens. He stated that he feels this is a livable project.
The HRA meeting adjourned at 7:40 p.m.
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City Council Minutes
July 11, 2005
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5.3.
Discuss Gateway Business Center
This portion of the meeting was a joint meeting with the EDA. President Jeff Gongoll
called the meeting to order. Commissioners present were: Dan Tveite, Pat Dwyer, Larry
Farber, Jerry Gumphrey, Stephanie Klinzing, and Paul Motin.
Director of Planning Michele McPherson presented her staff report providing an overview
of the area currently being studied. This is the City-owned Cargill land which has been
renamed the Gateway Business Center. Properties in this area are under ownership by ten
property owners with the City's approximately 60 acre property in the middle of the study
area.
President Gongoll asked if it is realistic to drain some of the ponds to get more buildable
lots. Ms. McPherson replied, yes, but we would have to make a case to the Technical
Evaluation Panel and get their approval.
Ms. McPherson stated that the land use and zoning maps currently are not consistent with
each other. She stated that the land use was amended in 2004 and staff wished to have this
Council/EDA conversation before changing the zoning map.
She stated that we need to discuss the type of uses in the area and the "split" of the zoning
districts. She indicated that another issue to be discussed is how the Council and EDA feel
about developing the commercial sites. She inquired as to whether they wish to develop the
lots or to sell it to someone else and put those funds into the infrastructure.
Mayor Klinzing inquired if in the past the City had developed any commercial sites. Ms.
Mehelich stated that the sites in the past have been sold. Mayor Klinzing inquired as to what
was the advantage for city ownership -- more control? Ms. Mehelich said, yes, more control
but a lot of challenges and the City could end up playing the market incorrectly. She stated
that the biggest advantage to opening the site up to a commercial developer is that you get
their market input and they are better suited to do negotiations.
Commissioner Tveite indicated that he had concerns about the use of a private developer
getting this property, and indicated that the City may need some type of controls and dictate
to the developer what would go in along the highway.
Further discussion followed as to how this property would be zoned.
Ms. McPherson stated that one step that the Council may wish to consider would be to
create a zoning district putting into the ordinance the building standards that we wish; a
"hybrid" to be defined.
Commissioner Tveite stated that we may not want full-blown industrial zoning here if we
wished to attract offices. He stated that this could be defined in creating a gateway zoning.
Councilmember Motin stated that he would like to view this as a business park with
southeast of the street being commercial and the west side used for industrial.
Ms. McPherson stated that we will need to do a zoning map amendment. Mr. Gongoll stated
that he feels this should be zoned Light Industrial and Business Park. Ms. Mehelich agreed
and feels this is not a good location for commercial.
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City Council Minutes
July 11, 2005
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It was the consensus of the Council to create a new Gateway Business Zoning district with
higher quality industrial design standards. It was also the consensus of the Council to align
the two areas with the commercial area being between the new road and the highway. Ms.
McPherson stated that staff's next step will be to invite the adjacent property owners for
discussion of the two concepts and request their input for development. She stated that they
would be invited to a Planning Commission work session in August.
The EDA meeting adjourned at 8:26 p.m.
Mayor Klinzing called a recess at 8:26 p.m. The meeting reconvened at 8:31 p.m.
5.4. Adviso1:y Board and Commission Policy
City Clerk Joan Schmidt stated that the Council had indicated at their meeting of February
14,2005 that they wished to discuss whether the Council wished to interview for
appointments and/or reappointments and establish term limits.
Mayor Klinzing stated that she did not feel the process is working on how we vote on
candidates. She did not want to give the impression that we interview some and do not
interview others, depending upon who they are, and wished to have consistency in our
procedure.
Councilmember Farber stated that Council should interview and then take one week to think
about it. He feels it is important to interview and that since he and Councilmember
Gumphrey are new, it gives them the opportunity to get to know the applicants. He feels
that even if we are happy with the current applicants, that we should interview all the
applicants to be consistent.
Councilmember Motin agreed that interviewing is important and that it can be awkward
when we have extra applicants. He stated the he feels that if we have more applicants than
openings, including the incumbent, then we need to interview. However, he feels that if
only the incumbent is reapplying, then we do not need to interview.
Councilmember Gumphrey stated that by interviewing, the Council has the opportunity to
get to know people who are applying and willing to get involved. He wished to do these
interviews on cable TV; that way the citizens also get to know the applicants.
Councilmember Dietz stated that he felt the process has not been very fruitful. He wished
that each board and commission group would give the Council four or five questions so that
the Council can be consistent when they ask questions of the applicants. He stated that he
was not in favor of waiting one week. He stated that he would have a difficult time not
having an incumbent return if they wished to return, and does not like the idea of appointing
someone just for the sake of a new person on a commission.
MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY
COUNCILMEMBER FARBER TO INTERVIEW ALL APPLICABLE
CANDIDATES (INCLUDING INCUMBENTS) AND ELECT THEM BY
SECRET BALLOT. MOTION CARRIED 5-0.
It was the consensus of the Council that the boards and commissions put together questions
for use by the Councilmembers when interviewing future candidates for appointment to the
boards and commissions.
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City Council Minutes
July 11, 2005
5.6.
Page 7
Ms. Schmidt asked the Council if they wished to have the annual goal-setting worksession
with the Boards and Commissions again this year. It was the consensus of the Council to
hold this event on Monday, October 10, at Lions Park Center.
5.5.'
Nextel Lease Update
Director of Planning Michele McPherson presented her staff report regarding a cell tower
site in the vicinity of City Hall.
Councilmember Dietz inquired if this was the first company that has approached the City
regarding this issue. Ms. McPherson stated that she receives approximately two to three calls
a year as to availability of water tower sites for placement of antennas.
Councilmember Motin stated that he does not understand the prohibition of the use of
water towers. He understands safety concerns but the City's water towers could be used for
the 800 MHz equipment for our police and fire departments. This could also generate
revenue for the City.
City Attorney Beck stated that this is typically a win-win deal.
It was the consensus of the Council that Utilities Manager Bryan Adams should come to the
Council meeting of J uly 18 to discuss his position in regards to this issue. It was also the
cQnsensus of the Council that staff should continue negotiations with N extel, indicating that
there was a possibility of the Council considering the water tower sites.
Updated on County Road 40 and County Road 33/77 Projects
City Engineer Terry Maurer distributed two proposed letters to be sent to Sherburne County
regarding County Road 40 and County Road 33/77 projects.
The first letter is in regards to County Road 40 right of way requirements. The County can
construct a rural design roadway at no cost to the City of Elk River. Mr. Maurer suggested
that the Council could consider an eminent domain resolution and in the future would be
able to get a court to say that we have right-of-way access. He indicated that staff could
send the letter and then come back with a resolution. He stated that staff could hold
neighborhood meetings to talk about land use patterns at the same time as the eminent
domain resolution.
The second proposed letter was dealing with County Road 33/77 project. Mr. Maurer
indicated that he was a litde bit confused by the county letter since the project for spending
federally-funded funds is in the new realigned area and not the old existing County Road 33
area on the west side of the project.
It was the consensus of the Council that the City Engineer sends these two letters to
Sherburne County.
Mr. Maurer gave an update regarding Jim Raivala, 441 Upland Avenue NW, regarding the
purchase of 2000 square feet of right-of-way. Mr. Maurer explained that he had offered the
gendemen $2 per square foot and indicated the he could come in to discuss a lot split. Mr.
Raivala wants the right-of-way purchased from him and he also wants the lot split. Mr.
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City Council Minutes
July 11,2005
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Maurer explained to him that it would have to be one or the other. The City Council
indicated that we should put the sidewalk in that area, minus Mr. Raivala's area.
Mr. Maurer gave an update regarding the King Avenue parking lot. This area will be
sealcoated and restriped so that it all looks uniform. A sealcoat will be placed on it with staff
crew sweeping up the pea rock within 24 hours and then keeping the pea rock for reuse.
The City Engineer stated that the Trout Brook Farms wetland would have a control device
installed on Thursday.
5.7. Review School District #728 Contract for Use of Council Chambers and Cable Casting.
City Clerk Joan Schmidt indicated that the Council had approved the contract on January 18
and at that time Councilmember Dietz had requested that the amounts charged be looked at
within six months.
Councilmember Dietz stated that he was concerned that we could justify the amounts we are
charging. He inquired as to whether we had any phone calls or inquiries from the school
district regarding the fees charged. Ms. Schmidt indicated that she was not aware of any
concerns. Councilmember Dietz indicated that he was fine charging the amounts set in the
contract.
5.8.
Council Open Forum
Councilmember Gumphrey indicated that he would like to have discussion for a future work
session regarding when it is appropriate to have money available for walking paths and bike
trails. He supported looking at Tyler Street from Twin Lakes Road down to 225th Avenue
and also on 197th Avenue along Highway 169.
Councilmember Gumphrey asked if we have an alternate for the Parks and Recreation
Council liaison position. He would not be available for the next meeting. Councilmember
Farber said that he would sit in for this meeting.
Mayor Klinzing stated that it was very nice of the Elk River Chamber of Commerce
President Jeff Gongoll in a newspaper article to mention and thank City Staff, Police and
Fire for their hard work in regards to the 4th of July event. She asked that staff draft a letter
for the Council to sign to thank them for their work.
6. Other Business
7. Staff Updates
City Administrator Pat Klaers stated that the legislature should be coming to a conclusion
soon. He indicated that he did not think that there would be any negative impact with
regards to the budget for the City and that local government aid has not changed.
Mr. Klaers explained that his lCMA National Conference will be held in Minneapolis this
year and that he is coordinating the golfing event. The Conference Planning Committee
wishes to have digital photos of golfing foursomes, and Mr. Klaers asked Council permission
to have staff member Kristin Thomas on site to take these photos. He indicated that it
would be on Wednesday, September 28. He also inquired if a token item that the Elk River
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City Council Minutes
July 11, 2005
Page 9
Recycling had given out which is a clip with chap stick attached that had been purchased
with the landfill abatement money could also be distributed to the golfers. He asked
approval to give out 125 of these items as a City donation.
It was the consensus of the Council that Kristin Thomas could help with this event.
MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY MAYOR
KLINZING TO GIVE 125 OF THESE ITEMS TO THE PARITICPANTS OF
THE ICMA CONFERENCE GOLFING EVENT. MOTION FAILED 3-2. (Dietz,
Morin, and Farber were opposed.)
Councilmember Motin stated that he was more inclined to hand these token items out at
such local events as National Night Out. Councilmember Dietz indicated he felt the use of
these items would be more appropriate for local events.
8. Adjournment
There being no further business, Mayor Klinzing adjourned the meeting of the Elk River
City Council at 9:53 p.m.
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J ~rhchmidt
City Clerk