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4.1 DRAFT MINUTES (3 SETS) 04-17-2023 Special Meeting of the Elk River City Council Held at the Elk River City Hall April 3, 2023 Members Present: Mayor John Dietz, Councilmembers Cory Grupa, Matt Westgaard, and Jennifer Wagner Members Absent: Councilmember Beyer via interactive television. Staff Present: City Administrator Calvin Portner and City Clerk Tina Allard 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 4:33 p.m. by Mayor Dietz. 2. Pledge of Allegiance 3. Interview Assistant City Administrator/Business Services Director Candidate Mr. Portner introduced Joe Stremcha. The City Council interviewed Mr. Stremcha. 4. Adjournment Moved by Councilmember Wagner and seconded by Councilmember Westgaard to adjourn the meeting of City Council. Motion carried 4-0. Meeting adjourned at 5:14 p.m. ___________________ John J. Dietz, Mayor ___________________ Tina Allard, City Clerk Meeting of the Elk River City Council Held at the Elk River City Hall Monday, April 3, 2023 Members Present: Mayor John Dietz, Councilmembers Cory Grupa, Matt Westgaard, and Jennifer Wagner Members Absent Councilmember Mike Beyer Staff Present: City Administrator Calvin Portner, Senior Planner Chris Leeseberg, Economic Development Director Brent O’Neil, Police Chief Ron Nierenhausen, and City Clerk Tina Allard 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 Staff requested to add 4.9, Consider Hiring Assistant City Administrator Position to the agenda. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to approve the agenda with the amendment. Motion carried 4-0. 4. Consent Agenda Moved by Councilmember Wagner and seconded by Councilmember Grupa to approve: 4.1 March 20, 2023, Minutes 4.2 Check register as outlined in the staff report. 4.3 Bid from Visu-Sewer, Inc. for Cure in Place Pipe installation in School View development in the amount of $44,454.50. 4.4 Temporary liquor licenses for Aegir Brewing Company, LLC, 19050 Industrial Blvd for the dates outlined in the staff report. 4.5 Updated Development Agreement and Planned Unit Development Agreement for The Villas at Fillmore subdivision as outlined in the staff report. 4.6 Fire department retaining their 2013 Chevy Tahoe to be used as a spare duty officer apparatus. 4.7 Execution of contract and bid with North Valley, Inc. for the 2023 Street Improvement project as noted in the staff report. 4.8 Police wage incentive program outlined in the staff report and authorizing the city administrator to adjust components of the program if needed. 4.9 Hire Joe Stremcha to the position of Assistant City Administrator/Business Services Director effective April 30, 2023. Motion carried 4-0. City Council Minutes Page 2 April 3, 2023 ----------------------------- 5. Open Forum No one appeared for Open Forum. 6. Presentations, Awards, and Recognition There were no presentations. 7.1 Conditional Use Permit: Vehicle Sales and Service, 17242 Ulysses Street, Omar Alnuami 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. Councilmember Wagner asked if Condition #13 is needed, questioning if it is adding an unnecessary hardship to the applicant. Mr. Leeseberg discussed the requirements of the parking ordinance. Councilmember Westgaard noted it is consistent with previous similar projects approved by the Council. Moved by Councilmember Westgaard and seconded by Councilmember Grupa to approve Conditional Use Permit, Case No. CU 23-02 with the following conditions: 1. The CUP shall not be recorded until all conditions have been completed. 2. The authorized additional uses (repairs, body shop, and expanded sales area) shall not begin until the CUP is recorded. 3. An amendment to this CUP will be required for future changes/additions not shown on the site plan dated April 3, 2023. 4. The applicant and/or property owner must apply for all required commercial building, electrical, plumbing, and/or mechanical permits before any associated activities can occur. 5. A code analysis finding building code compliance for the areas approved for use under this CUP shall be prepared by an appropriate registered professional. Areas to be utilize in the future will also be required to provide this analysis. 6. The number of motor vehicle sales dealers shall be limited to four (4) as other parking needs/requirements allow. 7. No more than 5 “for sale” vehicles per dealer may be displayed on the subject property. 8. All motor vehicle repairs, body work, or detailing shall only occur inside the building. 9. Exterior doors shall be closed while any motor vehicle repair, body work, or detailing occurs. 10. The dumpster area shall be screened with a six-foot-tall 100% opaque fence with the gate closed when not in use. 11. The damaged vehicle storage area shall not exceed 900 square feet, must be screened with a six- foot-tall 100% opaque fence, must be paved with an approved surface, and shall meet all setbacks. 12. No outdoor storage of damaged or inoperable vehicles shall be allowed until the required screening and paving are installed. 13. The storage of damaged or inoperable vehicles shall only be allowed inside of the building or within the damaged vehicle fenced storage area. City Council Minutes Page 3 April 3, 2023 ----------------------------- 14. Paints, chemicals, or other hazardous materials shall be handled and disposed of in accordance with the Minnesota Pollution Control Agency (MPCA). 15. The applicant and/or property owner shall ensure any vehicle stored outside does not leak fuels or other hazardous materials onto the ground or into the stormwater pond to the west of the parking lot. 16. Parking stalls shall be striped in accordance with City Ordinance, Section 30-892 by May 31, 2023. Motion carried 4-0. 8.1 Discuss Work Session Items There were no items added. 9. Council Liaison Updates Councilmembers provided updates as outlined in the respective advisory board’s minutes. 10. Adjourn Regular Meeting Moved by Councilmember Wagner and seconded by Councilmember Westgaard to adjourn the regular meeting of the City Council. Motion carried 4-0. The regular meeting adjourned at 6:56 p.m. Mayor Dietz called the work session meeting to order at 7:00 p.m. 11.1 Downtown Parking Mr. O’Neil presented the staff report. He discussed the residential parking occurring overnight in front of the Granite Shores building and taking up parking spaces in front of businesses. He provided history on parking downtown and had some examples of what other communities have implemented. He asked for Council direction on how to proceed on the matter. Councilmember Wagner abstained from this item due to conflict of interest with owning a business in the area. It was noted Granite Shores gives one free spot to residents, but charges for any additional spaces in their garage. Police Chief Nierenhausen expressed concerns with individuals who may have consumed alcohol at local establishments being forced to leave a parking spot verse finding a ride home if certain parking restrictions are implemented. Council discussed various options for parking restrictions such as:  No overnight parking except in the King Avenue lot.  No parking within certain hours.  No parking from Parish Avenue to Jackson Street along Main Street. City Council Minutes Page 4 April 3, 2023 -----------------------------  Distinguishing between patrons, residents, and employees.  Signage and enforcement.  Parking meters/chalking/staff resources. The Council consensus is to restrict parking on both sides of Main Street between Parrish Avenue and Jackson Street. This item will be brought forward on a future consent agenda. 11.2 Proposed Land Use, Zoning, and Ordinance Amendments Mr. Leeseberg presented the staff report. The Council expressed the following:  Break the ordinance into smaller components for the public hearings, such as Focused Area Study, Industrial, and Commercial reviewed first, then residential changes on a different date.  Some of the higher density developments being proposed close the river and along the Kelly Farm, noting these are special resources that should involve more thoughtful planning.  Effects of high-density developments on the school system.  How do the large micro developments help the community? 12. Motion to Adjourn Moved by Councilmember Westgaard and seconded by Councilmember Grupa to adjourn the meeting of the City Council. Motion carried 4-0. The meeting adjourned at7:36 p.m. ___________________ John J. Dietz, Mayor ___________________ Tina Allard, City Clerk Meeting of the Elk River City Council as the Board of Appeal and Equalization Held at the Elk River City Hall Monday, April 10, 2023 Members Present: Mayor John Dietz, Councilmembers Cory Grupa, Mike Beyer, Matt Westgaard, and Jennifer Wagner (left at 7:01 p.m. for a city commission meeting) 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 C. J. Kopetka 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 6:02 p.m. by Mayor Dietz. The Pledge of Allegiance was recited. 2. Sherburne County Assessor’s Report Sherburne County Assessor Michelle Moen stated there were 450 approved sales and a 12% increase for off water property. She discussed the state law ratio requirement which is required to be between 90-105% when comparing the county’s value to sales prices. Because last year the values were below the 90% threshold (at 78%), the county was put on a watch list and required to meet the ratio this year or the state would take over and set valuations. With the changes being proposed the county will be at 92%. She noted there were significant increases in land values, and that they completed an evaluation on all land values within the county. She further discussed the different factors affecting these significant increases in land value, such as hunters purchasing large tracts of land. 3. Hear Appeals Submitted by Attendees 1. Joe Yaritz PID: 75-503-0236 (19876 Brentwood Lane) Mr. Holker handed out a report on his assessment of this property. He recommended dropping the value from $610,000 to $588,200 due to some depreciation. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to lower the building value by $21,900. Motion carried 5-0. 2. Dave and Kay Fuller th PID: 75-498-0140 (12884 187 Circle) Mr. Fuller stated the house was in poor condition when they purchased it in 2014, it’s located on a highway, and the market value should be reduced. Mr. Fuller had the house appraised at $559,000. Mr. City Council Minutes Page 2 April 10, 2023 ----------------------------- Kopetka previously adjusted the value to $632,100 after he reassessed the property. Mr. Fuller will be giving the appraisal to the assessor so it can be re-evaluated. Moved by Councilmember Wagner and seconded by Councilmember Grupa to vote no change to parcel 75-498-0140. Motion carried 5-0. 3. Kent and Nicole Christianson PID: 75-623-0522 (18688 Queen Circle) Mr. Christianson would like the assessor to re-evaluate the property. Moved by Councilmember Beyer and seconded by Councilmember Westgaard to vote no change to parcel 75-623-0522. Motion carried 5-0. 4. Diana Laszcwski PID: 75-662-0410 (20270 Polk Street) Ms. Laszcwski requested a reduction in the market value of her property based on a realtor friend’s assessment of comparable ramblers. Mr. Holker noted this parcel was part of the assessment review for this year and minor adjustments were made to the value and recommended no further changes. Moved by Councilmember Westgaard and seconded by Councilmember Beyer to vote no change. Motion carried 5-0. 5. Gary Stritesky PID: 75-132-4100 (house) (12808 Orono Road) and 75-468-0270 (vacant lot). Ms. Moen explained that the value is in the lakeshore. Moved by Councilmember Wagner and seconded by Councilmember Grupa to vote no change to PID# 75-132-4100 and to lower the land value of PID# 75-468-0270 to $27,000. Motion carried 5-0. Councilmember Wagner left for another city commission meeting. 6. Neil Taylor th PID: 75-580-0110 (14265 198 Avenue) Mr. Taylor requested a reduction of his estimated valuation stating the home is unlivable and a portion of the land is drainage they can’t build upon. Mr. Selbitschka noted an assessor visited the site and the drainage and wetlands were considered when determining the value. Moved by Councilmember Westgaard and seconded by Councilmember Beyer to vote no change. Motion carried 4-0. 7. Jacqueline Banack PID: 75-678-0260 (18681 Lander Street) PID: 75-678-0235 (18642 Lander Street) City Council Minutes Page 3 April 10, 2023 ----------------------------- Ms. Banack would like the value reduced because it’s vacant land that is mostly water. Mr. Selbitschka said they can pull the plat and assess the land. Moved by Councilmember Westgaard and seconded by Councilmember Grupa to vote no change. Motion carried 4-0. 8. Robert Dilly PID: 75-458-0120 (12943 Orono Road) Mr. Dilly objected to his valuation increase because he lives on a fixed income. Ms. Moen explained the various options seniors can apply for to get some relief. Moved by Councilmember Beyer and seconded by Councilmember Grupa to vote no change. Motion carried 4-0. 9. Amy and Zack Wierman PID: 75-505-0118 (21340 Vernon Street) Ms. Wierman objected to the valuation of her property, stating it has an unfinished basement. Ms. Moen noted there was a desktop review of this parcel during covid, and the property does have low land, so she recommended a site visit. Moved by Councilmember Beyer and seconded by Councilmember Westgaard to vote no change to parcel 75-505-0118. Motion carried 4-0. 10. Bradley and Robin Botts th PID: 75-513-0450 (10810 198 Avenue) Mr. Botts stated it is unfair to raise values on property owners who are trying to do the right thing by keeping their places kept up nice. He asked to learn more about how his particular property has been evaluated. Moved by Councilmember Grupa and seconded by Councilmember Beyer to vote no change. Motion carried 4-0. 11. Keith Quammen PID: 75-471-0160 (19823 Ulysses Street) Mr. Quammem objected to the value of his property. Moved by Councilmember Westgaard and seconded by Councilmember Grupa to vote no change. Motion carried 4-0. 12. Michelle and Thomas Binsfeld PID: 75-129-3410 (house .59) 75-132-2115 (stairs .12) (13230 Island View Drive) City Council Minutes Page 4 April 10, 2023 ----------------------------- Ms. Binsfeld compared her property to surrounding similar neighborhood properties. She is opposed to the market value increase. The assessor stated this property has much more lakeshore and the square footage is different compared to the neighbors. The assessor discussed the last time the property was reassessed and stated they could complete a site visit to see if any changes are warranted. Moved by Councilmember Westgaard and seconded by Councilmember Grupa to vote no change. Motion carried 4-0. 13. Russel and Cindy Spaulding nd PID: 75-719-1203 (10433 172 Lane) Mr. Spaulding handed out townhome comparable sales. He asked for a reduction in valuation based on the comps and further stated interior units sell for lesser amounts than exterior units and therefore should be valued for less. The assessor felt the current value placed on the property is fair and noted if this one is reduced, it will create inequity and most likely cause the neighbors to stop in and want theirs changed as well. The assessor further stated there is a demand for this type of home and it is difficult to find them for under $300,000. Councilmember Westgaard noted the property owner brought in six sales supporting his request for a reduced value. He further noted there should be some consideration for the quality of the square footage. Moved by Councilmember Westgaard and seconded by Councilmember Grupa to reduce the value to $239,300 based on the information provided by both the county and the applicant. Motion carried 4-0. 14. Nathan and Elisabeth Andrews PID: 75-486-0350 (20160 Smith Street) Ms. Andrews objected to the market value of her property. She discussed other neighborhood properties and explained how she tried to sell the home for $369,900 and couldn’t sell it at that price. The assessor recommended a reduction of the building value to $418,600. Moved by Mayor Dietz and seconded by Councilmember Grupa to lower the total value of the property to $410,000 with the reduction taken from the land. Motion carried 4-0. 15. Kayla and Matthew Dutton PID: 75-494-0145 (16796 Yale Street) Ms. Dutton objected to the value of her property and discussed how it’s in the wild and scenic district, which has restrictions on use. Mr. Holker stated he completed a site visit, reviewed comparables, and feels the value is fair. Moved by Councilmember Westgaard and seconded by Councilmember Beyer to vote no change. Motion carried 4-0. 16. Ryan and Tera Kostreba PID: 75-809-0105 (21404 Jarvis Street) City Council Minutes Page 5 April 10, 2023 ----------------------------- Mr. Kostreba reviewed comparable properties and objected to the market value of his property. Mr. Selbitschka suggested an interior inspection of the property. Mr. Kostreba requested a reconvene meeting for review by the city Board of Appeal after the inspection. Moved by Councilmember Westgaard and seconded by Councilmember Beyer to schedule a reconvene meeting for 5:55 p.m., Monday, April 17, 2023. Motion carried 4-0. 17. Joanna and Robert Koski PID: 75-497-0150 (21461 Concord Street) Ms. Koski objected to her market value and would like to schedule a site visit to talk about acreage and wetland values. Moved by Councilmember Beyer and seconded by Councilmember Westgaard to vote no change. Motion carried 4-0. 18. Kelli and Shane Hoskins PID: 75-413-0420 (28080 Lakewood Drive) Ms. Hoskins compared her Sherburne County property to other county properties she owns, noting how much more significant the increases are in Sherburne County. She objected to the proposed market value increase. Ms. Moen noted this parcel is considered lakeshore and that she is not legally able to compare it to properties in other counties. Moved by Councilmember Westgaard and seconded by Councilmember Beyer to vote no change. Motion carried 4-0. 19. Jack and Wendy Orth PID: 75-108-4303 (13200 Ranch Road) PID: 75-117-1200 (13200 Ranch Road, remnant with accessory building) Mr. Orth would like to have his property reassessed because he objects to the market value. Moved by Councilmember Westgaard and seconded by Councilmember Grupa to vote no change. Motion carried 4-0. 20. Freedom Homes, LLC, Nick Bartlett nd PID: 75-428-0240 (11964 192 Avenue) Mr. Bartlett stated he owns duplex rentals, and he reviewed comparable properties which are valued less. He had an appraisal completed, which states the value at $355,000. Mr. Selbitschka stated that because this is a rental property, he recommends a county review so they can evaluate the appraisal and review the income data. City Council Minutes Page 6 April 10, 2023 ----------------------------- Moved by Councilmember Westgaard and seconded by Councilmember Grupa to lower the full property value to $407,000 with the difference being taken from the land value. Motion carried 4-0. 21. Virginia and Roger Page PID: 75-478-0355 (13740 Riverview Drive) Ms. Page objected to the proposed market value of her property. Mr. Kopetka recommended a site visit to evaluate the property. Moved by Councilmember Westgaard and seconded by Councilmember Beyer to vote no change to parcel 75-478-0355. Motion carried 4-0. 22. David and Stacey Anderson th PID: 75-706-0202 (12954 194 Lane) The Andersons objected to their land value because of the access issues to their property. Mr. Kopetka reviewed the parcel, noted obsolescence, and recommends a reduction of 10% in land value. Moved by Councilmember Grupa and seconded by Councilmember Beyer to lower the land value to $93,200. Motion carried 4-0. 23. Property Owners in Rolling Hills Plat and Outlot PID’s: 75-664-0030, 75-664-0020, and 75-664-0010 The board discussed the issues with this plat’s community septic system and how property owners can’t sell their homes. The city is working with the owners on options to remedy the matter. Mr. Selbitcshka stated to keep the values fair and comparable a review of the parcels is needed. He stated reductions may be possible with the outlots and the septic system areas. He noted he could take this one to the county board on behalf of the property owners unless they disagree with his recommendation. Moved by Councilmember Westgaard and seconded by Councilmember Grupa to vote no change. Motion carried 4-0. 24. Darin and Kristina Thom (Rolling Hills home) th PID: 75-664-0425 (9717 226 Avenue) Moved by Councilmember Westgaard and seconded by Councilmember Beyer to vote no change. Motion carried 4-0. 25. Amanda and Jeremy Lemire PID: 75-494-0115 (16930 Yale Street) Mr. Holker completed a site visit and recommended dropping the value. Moved by Councilmember Beyer and seconded by Councilmember Grupa to decrease the building value by $25,400. Motion carried 4-0. City Council Minutes Page 7 April 10, 2023 ----------------------------- 26. Andrew Haggerty PID: 75-024-2115 (15322 Edison Street) Mr. Haggerty discussed the age of his home and that it may have been the first home built in Elk River. Mr. Holker noted Mr. Haggerty hadn’t received a tax statement and recommends a site visit to appraise the property. Moved by Councilmember Beyer and seconded by Councilmember Westgaard to vote no change to parcel 75-024-2115. Motion carried 4-0. 4. Hear Misc. Appeals by County The county assessor presented appeals that were submitted in writing. Moved by Councilmember Westgaard and seconded by Councilmember Grupa to approve the following: 1. 75-505-0120 No change 2. Donald and Cheryl Bridge PID: 75-481-0320 (13591 Riverview Drive) No Change 3. William and Cindy Cropper th PID: 75-902-0160 (11097 184 Circle) Increase Land Value by $22,300 Increase building value by $164,300 4. David and Sandra Dummer PID: 75-510-0120 (20034 Auburn Street) Decrease building value by $3,600 5. Maxine McClellan PID: 75-662-0405 (20258 Polk Street) Decrease building value by $26,500 6. Leann Brown PID: 75-503-0626 (19737 Lowell Street) Decrease building value by $16,800 7. Nicolas Mooney rd PID: 75-130-1301 (13981 193 Avenue) Decrease building value by $163,400 8. Stuart Cleaveland th PID: 75-571-0125 (13333 179 Circle) City Council Minutes Page 8 April 10, 2023 ----------------------------- Decrease building value by $4,016 Motion carried 4-0. 5. Establish Reconvene date if needed The reconvene meeting was scheduled for 5:55 p.m., Monday, April 17, 2023, as noted above. 6. Recess Moved by Councilmember Westgaard and seconded by Councilmember Beyer to recess the meeting to Monday, April 17, 2023, 5:55 p.m. The meeting adjourned at 11:23 p.m. ___________________ John J. Dietz, Mayor ___________________ Tina Allard, City Clerk