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2007-09-17 CC Minutes Special ~ A!~€I!'!iJI~ ALBERTVILLE CITY COUNCIL September 17,2007 WORKSHOP MINUTES Albertville City Hall 9:00 PM PRESENT: Mayor Ron Klecker, Council members John Vetsch, LeRoy Berning, Dan Wagner, and Tom Fay, City Planner Al Brixius, Assistant City Engineer Adam Nafstad, City Attorney Mike Couri, City Administrator Larry Kruse, and City Clerk Bridget Miller ABSENT: none Mayor Klecker called the Albertville City Council workshop to order at 9:00 p.m. ADOPT AGENDA City Administrator Kruse added the following items to the agenda: · Niemeyer Trailer Sales - City Improvement Project vs. Private Development · CSAH 19 North - Feasibility Study Overview in preparation for Tuesday's meeting with Otsego and Wright County CITY HALL SOUTH PARKING LOT/ALBERTVILLE BODY SHOP DISCUSSION City Administrator Kruse stated that in July 2007 the City completed the purchase of railroad property south of City Hall. Historically, the Albertville Body Shop used the railroad land along with their 4,294 square-foot parcel as their parking lot. In conjunction with the purchase of the railroad property and construction of City Hall, staff has met with Jamie Stevens, owner of Albertville Body Shop, to discuss a joint parking lot. In July 2006, it appeared that the City and Mr. Stevens had reached a consensus on the design layout of the joint parking lot. Since then Mr. Stevens has contacted the City Administrator to offer another preferred proposal for the City to consider, which reads as follows: Tuesday, September 11, 2007 Hi Larry, M:\Public Data\City Council\Council Minutes\2007 Minutes\Workshop\M 09-17-07 workshop Final.doc City of Albertville City Council Workshop Minutes September 17, 2007 Page 2 of5 What I was thinking is to sell the lot adjacent to City Hall for $75,000.00, with the condition that Albertville Body Shop would have an easement per say to park finished product in a certain number of stalls. I'm not sure if this is far fetched or realistic, but for us, itwould free this piece up off the tax roll, and the city would own and control that whole piece. Let me know when you might get that meeting set-up. Thanks, Jamie City Administrator Kruse went on to inform the Council that according to Wright County the parcel is currently valued at $35,500. The County has placed the value on the parcel due to the cross use with the railroad land. Should the City consider landscaping the parcel and enforce the parking restrictions, the County would then have to re-evaluate the market value, which might find the Bettendorf appraisal is indicative of the property's value. Wright County Assessor Rasmussen informed Mr. Kruse that the previous owner Loren Becker attended the Board of Equalization Hearings requesting the value be reduced because of its size and irregularity. In summary, the County has determined the value based on the contributing factor ofthe broader l).se of the railroad property as a parking lot due to business use, which could make it mixed uses. City Administrator Kruse reported that it is respectfully requested that the Mayor and Council discuss six options on how the City goes forward with negotiating the South Parking lot with Jamie Stevens. Following a workshop discussion, it is recommended the Council appoint two Council members to meet with Mr. Stevens. Below are the six options for review: OPTIONS: 1. Pursue Jamie Stevens' request for the City to purchase his land and construct a parking lot at a cost of $120,000 plus landscaping the balance ofthe lot. 2. The City enters into a public/private partnership with Mr. Stevens to construct a 15 stall parking lot as per the attached agreement. The City would assume responsibility to plat the new lot configuration, construct a parking lot at an estimated cost of $44,790 and maintain the said lot. Mr. Stevens would pay approximately one-third ofthe construction cost for five stalls, on his property or possibly based on the square footage of construction on his lot. 3. The City purchases Mr. Stevens parcel and constructs a 15 car parking lot with Mr. Stevens contributing towards a parking lot fund in lieu of on-site parking. The estimated construction cost of a parking space would be $3,000 and $5,000 for land for a total of $8,000 per stall. In this case, Mr. Stevens would sell the parcel for $75,000 and then pay the City $40,000 for the five stalls or $60,000 for 7.5 stalls depending on the number of stalls the Albertville Body Shop needs based on the City Planner's recommendation. M:\Public Data\City Council\Council Minutes\2007 Minutes\Workshop\M 09-17-07 workshop Final.doc City of Albertville City Council Workshop Minutes September 17, 2007 Page 3 of5 4. The City does not participate in a parking lot and landscapes the newly acquired railroad property. The City Engineer's estimated cost to sod, irrigate and landscape this area is $10,608. lfthe City chooses this option, it is recommended that the Public Works Department completes this work for substantially less. 5. The City purchases the lot from Jamie Stevens and landscapes the entire area south of City Hall at a cost of$14,820 plus the cost of Mr. Stevens' parcel. Once again Public Works could do the landscaping. Total cost would be $90,000. 6. The City leases Mr. Stevens the newly acquired railroad property for a parking lot in an "as is" condition. The City paid $68,000 for this parcel and assuming a 5% return on City investments would be $3,400 per year. It would be reasonable to assume the lease could be anywhere from $2,000 to $3,400 per year plus property taxes and maintenance. There was discussion amongst the Council members on how to proceed from here. Council members Vetsch and Berning volunteered to attend a joint meeting with Mr. Stevens and staff, in which Vetsch and Berning would speak on behalf of the Council and present an offer towards the parking lot resolution. COUNCIL and STAFF DISCUSSION ON NIEMEYER TRAILER SALES - CITY IMPROVEMENT PROJECT VS. PRIVATE DEVELOPMENT City Administrator Kruse reviewed the background of the proposed Niemeyer Trailer Sales/Wellerson LLP Development. Kruse informed the Council that staff has been working with Mr. Niemeyer evaluating the site and the access to the site. According to Wright County, the access to the site needs to be lined up with Karston Avenue NE. Mr. Niemeyer would prefer an alternate mid-parcel access to the site. Due to the number of lots located on the site, there is the possibility the County will require turn lanes be installed to serve both the Niemeyer and the abutting property (Miller property), because ofthe increase traffic volumes from the development of the site. Kruse went on to inform the Council that the access to the site is one of the issues that staff has been discussing with Mr. Niemeyer. The other issue is the need to extend utility services to the site, which would be from south of CSAH 37 on Karston Avenue NE. Kruse noted that the City's policy requires streets that serve multiple properties be a public street. However, this development is rather small, the cost to bore sewer under CSAH 37 a distance of almost 200-feet south ofthe northern portion ofCSAH 37 right-of-way to include turn lanes would be costly. Kruse reported that staff has put together two options for Council consideration to address the issues and concerns that Mr. Niemeyer is dealing with to development the site. M:\Public Data\City Council\Council Minutes\2007 Minutes\ W orkshop\M 09-17-07 workshop Fina1.doc City of Albertville City Council Workshop Minutes September 17, 2007 Page 4 of5 OPTIONS: 1. Niemeyer Trailer Sales/Wellerson LLP is developing first and they need to install the entire infrastructure even though it will ultimately benefit the Ronald and Ellen Miller property to the west knowing there will not be a way for Mr. Niemeyer to recoup any of these costs from the Millers. 2. Subject to Mr. Niemeyer putting up an escrow to fund a Feasibility Study at an estimated cost of $2,500, the City would consider a Minnesota Chapter 429 Public Improvement Project to install the street, utilities, and turn lanes; assessing the benefiting properties. If the City did a Minnesota Chapter 429 Improvement Project, the plan would be to assess 100% of the cost to the benefiting properties. To protect the City, Mr. Niemeyer would need to enter into an Assessment Agreement that if the Millers appeal their assessment, Mr. Niemeyer would absorb any amount the District Court would adjust plus all consultant costs. City Administrator Kruse concluded with the fact that staff is looking for Council direction on it's preference on the two options to pursue. Council discussed the option with staff as to how to approach the road and utility issue for the parcel. There was no notation as to which option to direct staff to pursue. COUNCIL AND STAFF DISCUSSION CSAH 19 NORTH - FEASIBILITY STUDY OVERVIEW IN PREPARATION FOR TUESDAY'S MEETING WITH OTSEGO AND WRIGHT COUNTY Assistant City Engineer Nafstad presented a Technical Memorandum for recommended roadway improvements on CSAH 19 North from south of 6ih Street NE to 70th Street NE. Nafstad noted how the road would be expanded from the current two lanes to four lanes. The expansion would improve the entrance to the D. Michael B's and Country Inn and Suites development. Nafstad pointed out that the improvement would be similar to CSAH 19 South Improvement with raised medians that will be a mixture of portions being concrete and portions will be landscaped. Staff wanted to make sure that the Council understood this is a perceptual concept plan for CSAH 19 North. Staff informed the Council that it needs to meet with the land owners prior to going to much further with the plans. Staff brought to the Council's attention that CSAH 19 North Improvement is not on Wright County's lO-year plan, which means that should the City consider to proceed with the improvement, it would make this a City initiated project. To further explain would mean that the County may not be on board to the improvement at this time. Staff M:\Public Data\City Council\Council Minutes\2007 Minutes\ Workshop\M 09-17-07 workshop Fina1.doc City of Albertville City Council Workshop Minutes September 17, 2007 Page 5 of5 reported that this is the purpose of the joint meeting to be held on Tuesday, September 25 with the City ofOtsego and Wright County Representatives to discuss the CSAH 19 North Improvement. Staff is recommending the three parties discuss the improvement to pursue Otsego and Wright County's participation. MOTION BY Council member Berning, seconded by Mayor Klecker to adjourn the Monday, September 17,2007 City Council workshop at 10:07 p.m. Motion carried unanimously. ~&-v<--K~ Ron Klecker, Mayor ~~~k, Bridget Mill , City Clerk M:\Public Data\City Council\Council Minutes\2007 Minutes\ W orkshop\M 09-17-07 workshop Fina1.doc City of Albertville City Council Workshop Minutes September 17, 2007 Page 5 of5 reported that this is the purpose of the joint meeting to be held on Tuesday, September 25 with the City of Otsego and Wright County Representatives to discuss the CSAH 19 North Improvement. Staff is recommending the three parties discuss the improvement to pursue Otsego and Wright County's participation. MOTION BY Council member Berning, seconded by Mayor Klecker to adjourn the Monday, September 17,2007 City Council workshop at 10:07 p.m. Motion carried unanimously. M:\Public Data\City Council\Council Minutes\2007 Minutes\ W orkshop\M 09-17-07 workshop Fina1.doc