Loading...
4.1 DRAFT MINUTES (2 SETS) 04-18-2022 Meeting of the Elk River City Council Held at the Elk River City Hall Monday, April 4, 2022 Members Present: Mayor John Dietz, Councilmembers Mike Beyer, Matt Westgaard, and Jennifer Wagner Members Absent: Councilmember Garrett Christianson Staff Present: City Administrator Calvin Portner, City Attorney Peter Beck, Planning Manager Zack Carlton, Public Works Director/Chief Engineer Justin Femrite, Economic Development Director Brent O’Neil, 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 6:30 p.m. by Mayor Dietz. 2. Pledge of Allegiance Pledge of Allegiance was recited. 3. Consider Agenda Mayor Dietz asked to move Item 8.3 ahead of Item 8.2 on the agenda. Moved by Councilmember Beyer and seconded by Councilmember Westgaard to approve the agenda, as amended. Motion carried 4-0. 4. Consent Agenda Moved by Councilmember Westgaard and seconded by Councilmember Wagner to approve: 4.1 March 21, 2022, Minutes. 4.2 Check register as outlined in the staff report. 4.3 Broadband Grant Program Agreement 2022-9. 4.4 Bailey Point Nature Preserve Regulations. 4.5 Temporary On-Sale Liquor License: Bellis. 4.6 Annual Election to Not Waive Tort Limits. 4.7 Memorandums of Understanding I.O.U.E. Local 49 Agreement 2022- 10 and 2022-11. 4.8 Resolution 22-18 Monetary Donations from Woodland Trails Park Patrons. 4.9 Three Park Kiosks and Signage Approval Agreement 2022-12. 4.10 Temporary On-Sale Liquor License: Aegir Brewing Company. Motion carried 4-0. City Council Minutes Page 2 April 4, 2022 ----------------------------- Mayor Dietz asked that information on the properties affected by the broadband program appeared in the Star News. 5. Open Forum Gary Santwire, Elk River, spoke as a commercial property owner stating he was not in favor of approving Tax Increment Financing (TIF) funding for residential properties. Jim Acres, Boy Scouts of America, invited councilmembers to a fundraiser on April 28, 2022. 6. Presentations, Awards, and Recognition There were no presentations, awards, or recognitions. 7. Public Hearings There were no public hearings. 8.1 CR33 Design Modifications Mr. Femrite presented the staff report. The request was to modify the roadway design between Ulysses Street and Smith Street by shifting the road 10 feet. This would allow for rights-of-way to be acquired during the Sherburne County road project. Council asked about funding needed for the project. Mr. Femrite stated the final amount had not been determined but was currently estimated at $600,000. There was time to determine how the amount could be paid including Pavement Management Fund, American Rescue Plan Act funds, or Park Dedication. A final plan and cost estimate would return to the council in late 2022. Council clarified that they are not voting to approve a trail, only to modify the design to allow for more cost-effective future infrastructure. Moved by Councilmember Wagner and seconded by Councilmember Beyer to provide direction regarding design considerations along CSAH 33 relating to future accommodations for a trail. Motion carried 4-0. 8.3 Tax Increment Financing (TIF) 28 Development Assistance Agreement – Jackson Street Apartments, LLC Mr. O’Neil presented the staff report. City Council Minutes Page 3 April 4, 2022 ----------------------------- Mikaela Huot, Baker Tilly, reviewed the details of TIF assistance between the city and Jackson Street Apartments, LLC. Council stated they were not in favor of using TIF assistance for this project as the city has met or exceeded their housing study apartment needs. They would prefer to reserve TIF funding for use on industrial building projects. Moved by Councilmember Westgaard and seconded by Councilmember Beyer to deny the execution of a TIF development assistance agreement in connection with Tax Increment Financing (Housing) District No. 28 (Jackson Hills Apartments Phase II Housing Project). Motion carried 4-0. 8.2 Council Discussion: Jackson Hills Fishing Pond/Stormwater Pond This item was not discussed due to the input on Item 8.3. 8.4 Discuss Work Session Items Mayor Dietz stated ISD #728 would prefer to have a joint meeting in early 2023 after the election. 9. Council Liaison Updates Councilmembers provided updates as outlined in the respective advisory board’s minutes. Mayor Dietz asked about the request by seniors to use a different door at the Furniture and Things Community Event Center. This request was considered by the Multipurpose Facility Advisory Committee and rejected. Councilmember Westgaard added that one individual is continuing to request changes and has independently contacted Kiser Construction for estimates on cost. This is not a city-initiated project. Mayor Dietz asked for input on the Council-sponsored employee lunch. He recommended waiting until construction at Orono Park was complete with a backup plan of holding it at Lion John Weicht Park during warmer weather. Council recessed at 7:31 p.m. and reconvened in work session at 7:35 p.m. 10.1 Concept Review: 16807 US Highway 10 – Mini-Storage, Outdoor Storage, and Light Industrial Mr. Carlton presented the staff report. David Vinje, applicant, was in attendance. Questions regarding the site included road access to the billboard, gas lines located under the property, rezoning of the City Council Minutes Page 4 April 4, 2022 ----------------------------- property to allow mini-storage, and visual screening from the road. Because there are gas lines on the property, that portion of the property would need to be used as a parking lot or outdoor storage area and not have a building over it. Council agreed the site had unique challenges and there may not be many options for development on it. They were in favor of going forward with the concept. 10.2 Concept Review: Richard Foster and U.S. Home, LLC – Residential Subdivision Mr. Carlton presented the staff report. Paul Tabone, representing Lennar Homes, gave an overview of the project. Mayor Dietz was not in favor of lot sizes less than 65 feet. The current plan includes 45-, 55-, and 65-foot-wide lots. Council expressed concerns with street parking challenges, the number of driveway access points, and pedestrian safety as a result of narrower lots. They also called attention to the amount of access points to and from the development, particularly on Cleveland Street. Councilmember Wagner added there are nearby schools that may be affected by an increase of traffic and residents. She asked that the schools be informed of the plans and suggested a traffic study. Mr. Tabone stated the rationale behind offering smaller lots is to create an option for those wanting a detached home but not needing it to be as large. He felt that there was a need in the market for this smaller sized lot. 11. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 8:29 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, April 11, 2022 Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Mike Beyer, Matt Westgaard, and Jennifer Wagner Members Absent: None Staff Present: City Clerk Tina Allard and Deputy Clerk Jolene Richter Also Present: County Assessor Michelle Moen, Deputy County Assessor David Selbitschka, Residential Appraisers Bill Holker and Casey Martin 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. The Pledge of Allegiance was recited. 2. Sherburne County Assessor’s Report Sherburne County Assessor Michell Moen introduced her team and provided a report on current market trends and how values were affected. She discussed the 90- 105% ratio required to be met based on sales for the current year. She stated before making changes to market values in Elk River, they were at 77%, which is below the required ratio. She discussed the adjustments for vacant land (up 20%), residential (up 15%), and lakeshore (up 30-50%) and how Sherburne County compared to other counties. 3. Hear Appeals Submitted by Attendees 1. Amber Bengston th Parcel Identification Number 75-112-4410 (9700 215 Avenue) Ms. Bengston distributed part of her appraisal information. She stated she received a variance from the city in 2020 to remodel an existing pole barn style horse barn as an accessory dwelling unit so her parents could live in the main house and her family would live in the barn building. She stated they remodeled the structure with a 36x65 (about 2,300 sf) living space. She reviewed her appraisal. The appraiser told her the appraisal completed on the property is a market value appraisal and it states the same in the report. The appraiser said the accessory dwelling unit can not be taxed as an additional single-family home, only as an amenity to the property, so it’s not a second home on the land. The appraiser said he must determine the value based on comparable other accessory dwelling structures. She expressed concerns with selling the property and the City Council Minutes Page 2 April 11, 2022 ----------------------------- next owner may not be interested in the secondary residence and pay the market value. Mr. Selbitschka stated the accessory dwelling is a large residential structure and when looking at its value and comparing it to the current market, he feels the value is accurate. He noted the first appraisal was in line with the county’s valuation. He talked with city staff previously and there are no restrictions on how the property could be used or sold. He stated this is considered a residential structure and the county doesn’t have an accessory dwelling unit classification for property tax purposes. He further asked who requested the second appraisal. Ms. Benston reiterated she is living in the accessory structure and questioned if a property is allowed to have two residential structures on it. Her appraiser told her it doesn’t matter who requested the appraisal, it would be the same value if he provided it to the city. Mr. Selbitschka stated having two residential structures on one property is a city determination. Ms. Moen recommended the county be allowed to inspect all buildings on the property. Moved by Councilmember Wagner and seconded by Councilmember Beyer to vote no change to parcel 75-112-4410. Motion carried 5-0. 2. Jeff Ridley th Parcel Identification Number 75-697-0130, (13070 180 Court) Mr. Ridley asked why his value increased 23% when the average was 15% per the state. Ms. Moen clarified the averages for city, counties, state. Mr. Selbitschka stated this was part of a reassessment in 2022 which was done via desktop due to the pandemic. He asked Mr. Ridley if an inspection could be completed to verify the property information. Mr. Ridley was amendable to an inspection. Moved by Councilmember Westgaard and seconded by Councilmember Christianson to vote no change to parcel 75-697-0130. Motion carried 5-0. 3. Gary Stritesley Parcel Identification Number 75-132-4100, (12808 Orono Road) Parcel Identification Number 75-468-0270 City Council Minutes Page 3 April 11, 2022 ----------------------------- Mr. Stritesley stated he received a 56% increase and noted he has lake access but is not on the lake. He also poured a driveway. He stated his home is about 900 sf and there was an area sale for $243,000, which is much larger home. Mr. Selbitschka stated it’s because the property is considered lakeshore. He discussed market extraction. He discussed the term lakeshore and what it means to metro area people and that we are valuing our lakes like they are Mille Lacs when we know they are not. He stated lakeshore home sales in Baldwin Township for older, small looking homes on Lake Cantlin are selling for $6- 800,000. He stated they don’t necessarily agree with what is happening, but they must follow the data provided. They talked to the Department of Revenue regarding lakeshore because they are on life-support with the required ratios. Mr. Stritesley further stated he has two parcel identification numbers but has one legal description, which occurred due to a road constructed through his land. Ms. Moen stated Elk River is at 88% and won’t meet the 90-105% ratio. She stated other townships are having the same issue. She is hoping sales will level off. She stated the Department of Revenue will put the county on a watch for a year and if they see sales on water of six or more in jurisdictions and the 90% requirement is not met, the state will implement an increase. Mr. Stritesley stated he purchased a sliver parcel and it’s being charged as a residential homestead but was told he can’t build on it. Mr. Selbitschka stated they have an issue with how to determine value of these small sliver parcels. He stated if the adjoining property were to be sold, the owner would most likely sell both pieces or sell the slice parcel to the neighbor. He questioned why anyone would hold onto the parcel. Mr. Stritesley stated the parcel was classified as residential unimproved and is now residential homestead. Ms. Moen stated this has changed because it’s extended to the primary parcel. Mr. Stritesley stated it’s not attached to his other parcel, has its own tax statement and legal description, and didn’t feel the $24,000 could be justified. He stated it’s currently being used as a garden. Mr. Stritesley noted he did purchase the parcel for $36,000 originally. Mr. Selbitschka stated they do what they call a common owner group and treat these as all one parcel so the combined value of the two parcels and the home is the total market value. He stated the sliver alone is not worth $24,000 but to the owner when combined with the parcels there is a total market value when sold. He stated Mr. Stritesley could work with the city and county to combine the properties. City Council Minutes Page 4 April 11, 2022 ----------------------------- Mr. Stritesley stated he tried but was unable to. Mayor Dietz noted this had gone to Council previously and it would have been cost prohibited to have it platted and a compromise was reached. Ms. Moen noted it may be best if the parcels were linked in their system based on value. Councilmember Westgaard stated it has a separate parcel number, is not metes and bounds, and is unbuildable so what kind of value does the parcel have as a stand-alone piece, homesteaded or not. He stated he never heard of other parcels being linked and then factoring them all together to determine an overall value. Ms. Moen stated it’s toward the property owner for use. She further stated they look at total value and how the property would be marketed. Mr. Selbitschka discussed highest and best use of the property and how the land is being used today. He stated the homestead classification can be removed. Mr. Stritesley stated he’d like to leave it as is. Moved by Councilmember Beyer and seconded by Councilmember Westgaard to vote no change to parcels 75-132-4100 and 75-468-0270. Motion carried 5-0. 4. Kathy Molinari Parcel Identification Number 75-429-0210 (522 5 ½ Street) Ms. Molinari stated the home was built in 1983 with an addition in 2001. Her value increased over $100,000 by 40%. She stated she refinanced last year and the appraisal, dated February 2021, was $270,000. She purchased the property for $223,000 in 2017. Mr. Selbitschka stated rambler style homes have a median sales price of $400,000 and based on the age of the home, the value is close to what would be expected. He suggested an inspection by the assessor. Ms. Molinari was amendable to the assessor stopping by to review the property. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to vote no change to parcel 75-429-0210. Motion carried 5-0. 4. Hear Misc. Appeals by County 1. Mark Lees Parcel Identification Number 75-748-0110 (568 Tipton Circle) City Council Minutes Page 5 April 11, 2022 ----------------------------- Moved by Councilmember Wagner and seconded by Councilmember Westgaard to lower the value by $1,100. Motion carried 5-0. 2. Lori Erickson th Parcel Identification Number 75-664-0215 (9878 226 Court) Moved by Councilmember Christianson and seconded by Councilmember Westgaard to lower the value by $9,900. Motion carried 5-0. 3. Tiffany and Logan Heineman Parcel Identification Number 75-134-2410 (546 Irving Avenue) Moved by Councilmember Beyer and seconded by Councilmember Christianson to lower the value by $22,000. Motion carried 5-0. 4. Matthew Westgaard Parcel Identification Numbers 75-75-111-4301 and 75-111-3401 Mr. Westgaard questioned the acreage included in the low land value. Mr. Selbitschka recommend onsite review of the parcels as he thought the values were incorrect for the low versus the high land and may need to be swapped. Moved by Councilmember Christianson and seconded by Councilmember Wagner to make no change to parcels 75-75-111-4301 and 75-111-3401. Motion carried 4-0. Councilmember Westgaard abstained. 5. Establish Reconvene date if needed No reconvene date was needed 6. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 7:38 p.m. ___________________ John J. Dietz, Mayor ___________________ Tina Allard, City Clerk