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.
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October 27, 2020
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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:
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October 27, 2020
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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
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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.
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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.
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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.
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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.
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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
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