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10-27-2020 PC MINMeeting of the Elk River Planning Commission Held at Elk River City Hall Tuesday, October 27, 2020 Members Present: Chair Jill Larson -Vito, Commissioners Perry Beise, Alexander Feinstein, Eric Johnson, John Jordan, Robert Rydberg, and Brad Thiel Members Absent: None Also Present: Councilmember/Liaison Nate Ovall Staff Present: Planning Manager Zack Carlton, Senior Planner Chris Leeseberg, and Sr. Admin. Assistant/Recording Secretary Jennifer Green I . Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Planning Commission was called to order at 6:44 p.m. by Chair Larson -Vito. 2. Consider October 27, 2020, Planning Commission Agenda Moved by Commissioner Thiel and seconded by Commissioner Feinstein to approve the October 27, 2020, Planning Commission agenda. Motion carried 7-0. 3. Consider September 22, 2020, Planning Commission Minutes Moved by Commissioner Beise and seconded by Commissioner Thiel to approve the September 22, 2020, Planning Commission minutes. Motion carried 7-0. 4.1 Contractors Capital Company, LLC / Lorraine White - 19746 Troy St. NW ■ Preliminary Plat of Elk Ridge Estates, Case No. P 20-19 Mr. Leeseberg presented the staff report. Commissioner Johnson clarified that access to Wapiti Park would be on Salem Street. Mr. Leeseberg indicated yes, showing the location of an easement and how access to campground will remain, allowing for utilities to be brought closer to the campground. Planning Commission October 27, 2020 Page 2 Commissioner Rydberg recalled this in a previous discussion and clarified access to the 5 lots on Troy Street would remain, noting the road would be gravel. Mr. Leeseberg indicated the Troy Street access would remain and be gravel. Commissioner Johnson asked if the gravel road would continue to provide an additional access to Wapiti Park. Mr. Leeseberg stated he thought so if there is easement across Outlot A, but preference would be to direct travel on a paved public street versus a private gravel easement. Commissioner Johnson asked if there was any idea how much traffic the park generates. Mr. Leeseberg stated he was not sure the amount of traffic. Chair Larson -Vito opened the public hearing. Carla Laurent, 18568 Troy Street NW and asked for clarification on the Troy Street easement and how it will be maintained and will the houses along there have any access to city sewer and water. Mr. Leeseberg stated the Troy Street easement is not included of the subject parcel and will continue to be maintained as it currently is. He stated the existing homes along Troy Street would not be included in receiving sewer and water from this development and homeowners would have to request and pay for joining city sewer and water. Dan Kruger, 18682 Queen Circle NW, stated he is the owner of the property which includes the gravel road named Troy Street and indicated he has been told there is no easement, according to the survey. Mr. Kruger owns the road back to the campground. He stated it is his plan to close the road after the last house and put up a gate to stop campground visitors and kayakers. He stated the number of vehicles on this road are around 3 vehicles a day down the gravel road and during the summer 10-12 vehicles a day. He stated if this development is not approved, he would like to know. There being no one else to speak, Chair Larson -Vito closed the public hearing. Commissioner Rydberg asked if firetrucks would have enough space to turn around. Mr. Leeseberg stated the property is platted to the north boundary of the property and there will be a temporary cul-de-sac to allow for turnaround space. Moved by Commissioner Jordan and seconded by Commissioner Johnson to recommend approval of the Preliminary Plat of Elk Ridge Estates at 19746 Troy St. NW with the following conditions: WI 'i RE Planning Commission Page 3 October 27, 2020 ----------------------------- 1. Addition of a lot/block designation for the campground parcel. 2. Staff approval of all site, engineering, landscaping, and utility plans. Motion carried 7-0. 4.2 DeMars, LLC — 9754 Viking Blvd. NW ■ Interim Use Permit to allow a duplex in the R- I a zoning district, Case No. IU 20-02 Mr. Leeseberg presented the staff report. Chair Larson -Vito opened the public hearing. Michelle DeMars, 20452 Quincy Circle, explained she will eventually build their dream house on the adjacent parcel and her and her husband will be continuing to clean up this parcel, which was a complete eyesore. The reason they would like to rent this home as a duplex is to allow their parents to live in one unit and rent out the upper unit without putting the property in her parent's names. She is opposed to the condition of the $5,000 escrow as it ties up a sizeable amount of money. Allen DeMars — 20452 Quincy Circle, stated he understood the city's intent and wants to follow the rules but the condition of a $5,000 escrow felt the city is pushing them towards not cleaning up the property and not following the rental property rules. Commissioner Beise explained to the applicant would receive this money back and earn interest. Mr. DeMars understood but still felt this was digging them into a financial hole requiring the interim use permit fees and $5,000 escrow condition. He stated the property was very old and in need of repair. He said they inherited two renters and are trying to bring the property into rental compliance, but the city is making it tough to do the right thing by tying up more money in escrow. He stated he felt they were naive and have learned lessons throughout this process and given their circumstances, they are trying to make this work but feeling very little incentive to try and do the right thing. Chair Larson -Vito explained the reason for the escrow condition was because there is no finite amount of time given by applicants which allows the city security the property would be returned to a single-family residence. She stated if the intention is never to sell the property, she asked when they thought the commission could consider this to no longer be a multi -family home. She stated if the answer is forever, she felt an interim use permit would not be the right vehicle to allow this use. Mr. DeMars stated they would like to make the home safe and sustainable to allow his wife's parents to move in and allow for recouping of the financial burden. He stated when they no longer considered the home being a significant asset, they would pI�EAEI Ir Fr ATUR Planning Commission October 27, 2020 Page 4 probably remove the house from the property. He stated their goal was to fix up enough of the property to keep the property respectful and allow her parents to move in in roughly 5-10 years. Commissioner Rydberg asked Mr. DeMars how much money they have put into the home to clean and fix up. Mr. DeMars indicated they have spent approximately $15,000 to start and axe seeing another $10,000 to $15,000 for additional repairs. There being no one else to speak, Chair Larson -Vito closed the public hearing. Chair Larson -Vito stated in her mind there either needs to be the escrow or a time limit. Commissioner Rydberg asked if the use is allowed today, why would it not be allowed in 5-10 years for another party to then request an extension of the IUP. He felt the intention of the $5,000 escrow seems to be excessive in this situation. Commissioner Ovall stated the city council had multiple meetings regarding this and explained there is a lot of history and nuances associated with the history of this property. He stated the council's recommendation of an IUP, while not perfect, was trying to make the best of a bad situation without burdening the buyer. He stated the property has two septic systems, two wells, two utility systems, and no building permits were pulled, but the city recognizes it as a single-family home. He stated their primary concern was to get the applicants through whatever it is, if they sell it or the use changes, the IUP goes away. Chair Larson -Vito stated her suggestion with the sunset in lieu of the $5,000 escrow to avoid tying up the money if their goal was not to sell the property. Commissioner Ovall suggested the commission consider a letter of credit. Commissioner Rydberg asked what the purpose of the $5000 escrow condition. Mr. Leeseberg stated based upon a discussion with the city attorney, the escrow will cover any legal fees incurred by the city to get the property back into compliance should it be abandoned, as an insurance policy of sorts for the city. He indicated staff discussed a timeline and felt this route was solving the problem and not kicking it down the road. Commissioner Thiel asked if the escrow could be used in conjunction with a timeline as a mechanism to convert the home back to a single family residence as that is the ultimate goal of the city, so the sooner they do it, the sooner they get their money back within a five year limit. Mr. Leeseberg stated they could add that as a condition. IIIIREI IE NAWRE Planning Commission October 27, 2020 Page 5 Chair Larson Vito stated the difference in the Upland property was a property manager who had no ties to the property, but in this instance the property owners own the property next door and are planning to build on it. She asked why other IUPs did not require an escrow. Mr. Leeseberg stated others were an allowed use and this is not an allowed use in this district. Commissioner Rydberg asked if there was an alternative to $5,000 cash escrow. Councilmember Ovall stated a letter of credit with a cost of $250 per year. Commissioner Johnson opposes the escrow if the funds will be tied up forever. He supports a letter of credit with an end date. Commissioner Beise verified with Councilmember Ovall the cost of a letter of credit for $250 a year or $45 per month. Commissioner Johnson suggested an escrow of $5,000 or letter of credit with a sunset date. Commissioner Jordan sees a real difference between this and the property on Upland. He stated the applicants are investing in this property and taking $5,000 from Elk River residents attempting to clean up a nuisance property makes no sense to him and he is not sure of a solution. He stated it feels like the city does not trust the property owners to do what they are already doing by cleaning up the property. Commissioner Thiel stated the Upland property was already cleaned it up. Commissioner Feinstein stated he also felt like $5,000 escrow was a lot for a private property owner whereas the Upland property was owned by an investor. Commissioner Johnson agreed with Commissioner Feinstein and felt like the $5,000 escrow made more sense for an investment company. He does not know what the perfect solution is either. Commissioner Rydberg asked if they could lower that amount. Mr. Leeseberg stated the city attorney recommended the condition, not the amount, and $5,000 is suggested if the residents abandon the property in the future to cover any costs. Commissioner Thiel asked if it is up to the commission to make the determination of a letter of credit versus an escrow or can the city council make the final say. Mr. Leeseberg stated ultimately it is up to the commission to recommend conditions. rII[aFI a NATURE Planning Commission October 27, 2020 Page 6 Commissioner Johnson felt the best solution is a letter of credit with a cost of $250/year instead of $5,000 escrow so when they are ready to convert back to single family, it cancels the IUP. Moved by Commissioner Jordan and seconded by Commissioner Rydberg to recommend approval of the request by DeMars, LLC for an Interim Use Permit to allow a duplex in the R -1a zoning district with the following conditions: 1. The Interim Use shall terminate upon sale or transfer of ownership. 2. The property must have a rental license for the duration of the two- family rental operation. 3. The structure must be inspected by the building official and must company with all building and fire codes for a two-family rental building. 4. The Interim Use Permit will be recorded against the property to put any future buyers on notice that the Interim Use Permit will not run with the property. 5. The structure shall be returned to a single-family home prior to sale or transfer of ownership. 6 -.— Motion carried 5-2 with Commissioners Thiel and Beise opposing. 4.3 Tall Pine Holdings, LLC — 11038 193'' Circle NW ■ Preliminary Plat of Mulvaney Point Twin Homes, Case No. P 20-21 Mr. Carlton presented the staff report. Chair Larson -Vito opened the public hearing. Tom Christian, 10989 1815` Ave. NW, asked about the progress of road connections near 183`d and 182nd Avenues. He stated he has called the police a few times due to 183`d Avenue now being a dead end and people are entering his property as a result. He stated he also has problems getting onto Twin Lakes Road from his property due to traffic. Mr. Carlton explained the county recently did a study on the Twin Lakes corridor and he was not aware of the results of the study but can look into it. He explained how Line Avenue would dead end into a cul-de-sac south of where 5`' Street comes in and 5' Street will continue east/west over to Twin Lakes, and Line Avenue can then be accessed from Main Street. He stated they are currently constructing a round -about at 5`h Street and Line Avenue. He indicated there is nothing concrete right now to make that connection and the city is reviewing several options looking at transportation connections, the Comprehensive Plan review. There being no one else to speak, Chair Larson -Vito closed the public hearing. VFEr I URE Planning Commission October 27, 2020 Page 7 Moved by Commissioner Beise and seconded by Commissioner Feinstein to recommend approval of the Preliminary Plat of Mulvaney Point Twin Homes located at 11038183' Circle NW with the following conditions: 1. Submittal of a stormwater maintenance declaration. 2. Adjust parcel lines to remain outside of the drainage and utility easements. 3. Staff approval of all site, engineering, and platting documents. Motion carried 7-0. S. Council Liaison Update Councilmember Ovall presented an update to the Planning Commission about recent city council activities such as Aegir, Furniture and Things Community Event Center, parking and use restrictions on Twin Lakes Road into Miske Meadows. 6. General Business There will be a virtual and in-person open house for the Comprehensive Plan as advertised on social media to hold a question and answer session with city employees and the consultant on Wednesday, October 28. Mr. Carlton asked if the commission wanted to have a discussion on building signage. Chair Johnson stated he felt the sign ordinance was fine as it sits today. Chair Larson -Vito stated a general review would be helpful and asked that it be presented at the next meeting. The Planning Commission meeting recessed the meeting and reconvened into work session at 7:46 p.m. 7.1 Great River Energy — 17845 US Highway 10 ■ Concept Review to install combustion turbine, Case No. CR 20-05 Mr. Carlton presented the staff report for a concept review of expansion on their current site. He introduced representatives Mark Strohfus from Great River Energy who outlined a proposed installation of a 49 mega -watt combustion turbine. The Planning Commission discussed noise concerns generated by the existing and proposed combustion turbines and representatives indicated they were still required to meet the Minnesota noise standards, the proposed and preferred locations of the proposed turbine, and sight lines from Highway 169. pIVEaI1 6 NATURE Planning Commission October 27, 2020 Page 8 It was the consensus of the Planning Commission to support the request for GRE to proceed with their request for a Conditional Use Permit to install a combustion turbine. 8. Adjournment The meeting was adjourned at 8:05 p.m. Minutes prepared by Jennifer Green. Tina Allard City. Clerk Aa Jill I son -Vito Planning Commission Chair LI IvIAII Ir ATURE