2015-06-15 City Council MinutesA,lb-crtville
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ALBERTVILLE CITY COUNCIL
Monday, June 15, 2015
APPROVED MINUTES
ALBERTVILLE CITY HALL
1. CALL TO ORDER - PLEDGE OF ALLEGIANCE
Mayor Hendrickson called the meeting to order at 7:04 p.m.
2. ROLL CALL
7:00 PM
Present: Mayor Hendrickson and Council members Hudson, Olson, Sorensen, and Vetsch
Absent: None
Others Present: City Administrator -PWD Adam Nafstad, City Attorney Mike Couri, City Planner
Al Brixius, and City Clerk Kimberly Olson
3. RECOGNITIONS — PRESENTATIONS — INTRODUCTIONS
George Finn and Jodi Pedersen were present at the meeting to introduce themselves to the City
Council. They explained they are renovating the old Patty J's Cafe, located at 5262 Kyler Avenue
NE, Suite #111, and will be starting Prairie Run Cafe out of the location. They are working on
renovations and signage for the property and hope to open around August. Council welcomed them
to Albertville and wished them success in their new business.
4. PUBLIC FORUM — (time reserved 5 minutes)
There was no one present to speak.
5. AMENDMENTS TO THE AGENDA
Nafstad asked for City Clerk items 1 and 2 be moved prior to the Planning items.
Nafstad added Oldcastle Public Hearing as item 6 under Planning/Legal.
Motioned by Olson, seconded by Hendrickson, to approve the Agenda as amended Ayes:
Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION
DECLARED CARRIED.
Page 1
6. CONSENT AGENDA
All items under the Consent Agenda are considered to be routine by the City staff and will be
enacted by one motion. In the event an item is pulled, it will be discussed in the order it is
listed on the Consent agenda following the approval of the remaining Consent items. These
items will be approved by a separate motion.
A. Approve the June 1, 2015 regular City Council meeting minutes as presented
B. Authorize the Monday, June 15, 2015 payment of claims as presented, except bills
specifically pulled which are passed by separate motion. The claims listing has been
provided to City Council as a separate document and is available for public view at City
Hall upon request
C. Approve resurfacing the tennis and basketball courts at Linwood Park for $10,744
Motioned by Hudson, seconded by Sorensen, to approve the Consent Agenda as presented. Ayes:
Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent. None. MOTION
DECLARED CARRIED.
7. PUBLIC HEARINGS - See Item 8B (6)
8. DEPARTMENT BUSINESS
A. City Clerk
1). Liquor License for El Bamba, 5986 Main Avenue NE
Clerk Olson reported that the applicant, Dilque Zea, has submitted an application for a 3.2% Malt
Liquor License and Wine License for El Bamba restaurant, located at 5986 Main Avenue NE. He
wishes to serve liquor on the outdoor premises of the restaurant.
Clerk Olson reported that in order to hold a Wine License, MN State Statute requires seating for at
least 25 patrons. In speaking with the MN Alcohol and Gambling Enforcement Division, staff
learned the State would recommend denial of the Wine License if the State Inspector found there
was not seating for at least 25 patrons year round. It was also noted that there are fencing
requirements in the Albertville City Code for sale of intoxicating liquor (anything above 3.2%
alcohol). The applicant is planning to meet with staff and the City's Building Official to see if there
is a way for him to meet the City Code requirements. If so, the applicant will apply for the Wine
License at the next City Council meeting.
Sorensen stated that he would like to provide every opportunity for local businesses to succeed.
Motioned by Sorensen, seconded by Hudson, to approve a 3.2% Malt Liquor Licenses for El
Bamba restaurant, 5986 Main Avenue NE contingent upon payment of liquor license fees, proof
of liquor liability insurance, successful background check, and compliance with Temporary
Certificate of Occupancy. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays:
None. Absent: None. MOTIONDECLARED CARRIED.
City Council Meeting Minutes Page 2
Regular Meeting of June 15, 2015
2). Set July 20, 2015 Workshop
Nafstad reported the workshop would be on the City's long term Capital Improvement Plan.
Motioned by Hendrickson, seconded by Hudson, to set a workshop meeting on July 20, 2015
6:30 p.m. in the Council Chambers to discuss the City's Capital Improvement Plan. Ayes:
Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent. None. MOTIOA
DECLARED CARRIED.
B. Planning/Legal — Oldcastle BuildingEnvelope, Inc. Items
1). Oldcastle BuildingEnvelope, Inc. Site Plan, Building Plan, and Conditional Use
Permit
Brixius reported that Oldcastle BuildingEnvelope, Inc. ( Oldcastle) has a need for expansion and the
City has offered a City -owned lot on which to build the expansion. He explained that Scannell
Properties #227 LLC (Scannell) would construct the industrial building on the lot and lease it to
Oldcastle. Scannell is requesting a Conditional Use Permit (CUP) to allow for deferred parking.
Brixius stated the expansion is consistent with the Comprehensive Plan and Oldcastle operations are
allowed with the I -1 Limited Industrial zoning of the lot. The Planning Commission reviewed the
site and building plans at their last meeting. The applicant requested screening of the trash
enclosures with landscape rather than a structural enclosure and the Planning Commission was
agreeable to the change. The applicant is also requesting the CUP to reduce the parking stalls from
62 to 31 and has indicated that is sufficient parking for the site. The applicant would like to allow
truck and trailer parking on the west side of the building and is permitted in the zoning district.
Brixius stated that trailer parking stalls must be striped in the lot and will be exclusive to that use.
The Planning Commission held a public hearing for the expansion and recommended approval to the
City Council.
Brixius outlined the design of the new building and reported that Oldcastle will implement some of
their glass into the designs.
Dan Salzer, Scannell, thanked staff for their work on the project.
2). Oldcastle Tax Increment Financing
Tammy Omdahl, Northland Securities, Inc., spoke to the Tax Increment Financing (TIF)
establishment for the expansion project. She stated the TIF would allow the City to capture the
increase in the local property tax from the proposed improvements. The district would run for nine
years. The City would provide the lot for $1, cover SAC /WAC costs, and other improvements and
the captured funds would repay the City. It is dependent on the valuation assigned by the County
and staff has spoken with their office. She indicated the City would be reimbursed in full.
3). Purchase and Development Contract
Couri gave a review of the purchase and development contract and indicated there are some minor
changes to the document from what was included in the Council packet. He stated that in exchange
for the lot for $1, Scannell is agreeing to build the building. He stated that the difference in taxes
from a vacant lot to a built upon industrial lot will be captured and will include the City, County, and
City Council Meeting Minutes Page 3
Regular Meeting of June 15, 2015
School District taxes. He stated that the City will be paid for the land and the assessments on the
property. The Agreement involves all three parties: City of Albertville, Scannell Properties #227
LLC, and Oldcastle BuildingEnvelope. Couri reported the building will be built by January 2016
and if it is not, the City may repossess the property and that is the City's security of an improved lot.
The amount of captured tax is dependent on the valuation placed on the building and there is a
minimum assessment agreement that the City Assessor will not value the building any less than $50
per square foot.
4). Interfund Loan
Court reported that the interfund loan is needed for accounting purposes and stated that the loan will
be paid back by TIF.
5). Release of 1979 Developer's Agreement
Couri reported that Scannell would like the original development agreement released on the lot. He
saw no reason the agreement cannot be released and stated the agreement is no longer enforceable.
6). Public Hearing
Hudson inquired how the City came to own the vacant, industrial lots. Court explained the lots were
donated to the City and the owners received a tax write off. The City was then responsible for sewer
and road improvements and the improvements were made for future businesses looking for shovel
ready lots or the expansion of a current business in that area. He stated that having 52nd Street NE in
place created available industrial lots the City now has.
Hudson inquired about a comment that TIF is necessary for industrial development. Couri stated his
opinion that TIF is a time shifter. He stated that eventually the lots will be developed, but the use of
TIF brings development faster as developers can receive TIF in surrounding communities. Hudson
inquired what determines what developments are offered TIF. Court responded the Legislature has
limited TIF to industry and they cannot do commercial developments. Nafstad added the City's
vision study and goals also play a part, as TIF is a tool that can assist with some of the industrial and
housing goals. He stated that senior housing has been a long time goal and without TIF Guardian
Angels and the Cottages likely would not have been possible. Hendrickson stated that a part of it is
to retain current businesses.
Vetsch inquired if the valuation placed by the Assessor is lower than $50 per square foot. Couri
replied the assessor has agreed to a valuation no lower than the $50 /square foot, but if the valuation
is above $50 /square foot, Scannell may appeal the valuation during the Local Board of Appeals and
Equalization process, but the agreement will not allow them to appeal anything lower than
$50 /square foot.
Motioned by Sorensen, seconded by Hendrickson, to open the public hearing regarding Mod�ing
the Development Program for Municipal Development District No. and Establishing Tax
Increment Financing (Economic Development) District No. 17 Therein, and Approving a Tax
Increment Financing Plan Therefore. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch.
Nays: None. Absent: None. MOTIONED DECLARED CARRIED.
City Council Meeting Minutes Page 4
Regular Meeting of June 15, 2015
Hudson stated that he had previously voted against a TIF project and explained that it was because
he was not a big supporter of subsidizing businesses. However, with review of the materials, he is
planning to vote in favor of this project.
Motioned by Hendrickson, seconded by Sorensen, to close the public hearing. Ayes: Hendrickson,
Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent. None. MOTIONED DECLARED
CARRIED.
Motioned by Vetsch, seconded by Sorensen, to adopt Resolution Number 2015 -024 Approving a
Site Plan, Building Plan, and Conditional Use Permit for Deferred Parking for Scannell
Properties #227 Located at Lot 1, Block 2, Barthel Industrial Park 2nd Addition within the City of
Albertville. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent.
None. MOTIONED DECLARED CARRIED.
Motioned by Vetsch, seconded by Sorensen, to approve Resolution 2015 -025 Modifying the
Development Program for Municipal Development District No. and Establishing Tax Increment
Financing (Economic Development) District No. 17 Therein, and Approving a Tax Increment
Financing Plan Therefore. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays:
None. Absent. None. MOTIONED DECLARED CARRIED.
Motioned by Hendrickson, seconded by Sorensen, to approve Resolution 2015 -026 Approving
Purchase and Development Contract Between the City of Albertville, Scannell Properties #227,
and Oldcastle BuildingEnvelope, Inc. and Approving the Business Subsidy Agreement and
Conveyance of Land Contained Therein. Ayes: Hendrickson, Hudson, Olson, Sorensen, and
Vetsch. Nays: None. Absent: None. MOTIONED DECLARED CARRIED.
Motioned by Olson, seconded by Sorensen, to approve Resolution 2015- 027Authorizing Interfund
Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 17.
Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent. None.
MOTIONED DECLARED CARRIED.
Motioned by Hendrickson, seconded by Olson, to release the 1979 Developer's Agreement
Between the City of Albertville and Barthel Homes, Inc, Recorded as Document No. 342276 at the
Wright County Recorder's Office Related to the Development of Barthel Industrial Park. Ayes:
Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent. None. MOTIONED
DECLARED CARRIED.
C. City Council
1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC,
etc.)
Arena
Hudson reported that they will not meet until fall.
Fire
Sorensen reported a Firefighter resigned due to a job move during the business meeting. The Fire
Department has been busy preparing for the Department's Open House during Friendly City Days
City Council Meeting Minutes Page 5
Regular Meeting of June 15, 2015
and it was well attended. He state the Fire Board meeting was rescheduled from late June to early
July.
FYCC
Lannes reported the monthly meeting has been changed to the last week of the month to coordinate
with the School District.
D. Planning/Zoning
1). City Code Amendments Relating to Planning Commission and Parks
Committee
Brixius reported staff reviewed the City Code regarding the Planning Commission due to concerns
of attendance by the commission members at the meetings. Proposed changes to the ordinance
provide for excused absences for reasons of work, out of town trips, illness or other justifiable
reasons. The commissioner must provide notice of absence from a meeting four days in advance of
a meeting date. If absences are frequent or the commissioner misses more than three to four
meetings per year (25 -33% of meetings), it may be grounds for removal from the commission. This
was discussed at the last Planning Commission meeting and recommended approval.
Couri suggested that under 2 -2 -2 C.2.b of the ordinance be amended to state that a commissioner
exceeding the allowed absences may be replaced by a majority vote of the City Council.
Brixius reported the other amendment is to establish the Parks Committee in the City Code similar to
the Planning Commission. Clerk Olson highlighted that the ordinance as presented removes one of
the two City Council appointees from the Committee and adds a fifth citizen member to Parks
Committee.
Motioned by Hendrickson, seconded by Olson, to adopt Ordinance No. 201 5 -04 Amending Title 2
Boards and Commissions, Chapter 2 Planning Commission with amendments. Ayes:
Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent. None. MOTION
DECLARED CARRIED.
Motioned by Hendrickson, seconded by Hudson, to adopt Ordinance No. 201 5 -05 Amending Title
2 Boards and Commission, Establishing Chapter 3, Parks Committee. Ayes: Hendrickson,
Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTIONDECLARED
CARRIED.
Motioned by Hudson, seconded by Olson, to have Vetsch as the City Council appointee to the
Parks Committee and appoint Hudson as an alternate. Ayes: Hendrickson, Hudson, Olson,
Sorensen, and Vetsch. Nays: None. Absent. None. MOTIONDECLARED CARRIED.
2). Central Park Master Plan Amendments
Brixius reported this was originally approved in 2012, and since that time, the Park Committee has
requested some adjustments to the plan. He stated they recommended moving the main entrance to
the center of the park rather than closer to the railroad tracks, vehicle access, pedestrian midway,
service drive around the caboose, a hard surface plaza, and sidewalks ad path connections to the
depot and caboose. The changes have been discussed with the Albertville Lions Club.
City Council Meeting Minutes Page 6
Regular Meeting of June 15, 2015
Hendrickson had concerns about the Main Avenue NE entrance will not be viewable by those
driving south on Main Avenue NE and Brixius stated there may be a way to allow that view. Olson
inquired about the costs for the stage and depot. Nafstad replied no cost analysis has been done.
Brixius stated the Lions Club will drive some of the improvements and cited they have already
brought the caboose into Central Park. Sorensen stated that the Lions are not requesting funds from
the City.
Motioned by Hendrickson, seconded by Vetsch, to adopt Resolution No. 201 5 -028 Central Park
Master Plan Park Amendments. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch.
Nays: None. Absent. None. MOTIONDECLARED CARRIED.
E. Public Works/Engineering — None
F. Fire — None
G. Finance — None
H. Building —None
I. Administration
1). Update from Wright County Commissioner Michael Potter
Potter stated he went to Washington D.C. for the second time and made some good connections
during the trip. He highlighted some of the items the Wright County Board has been reviewing. He
thanked the City Council for approving the Oldcastle expansion.
2). Administrative Assistant/Building Permit Technician Position
Nafstad reported that they will be hiring a temporary employee to fill in the position until a
replacement can be hired. Vetsch inquired if staff has evaluated the position and job description.
Nafstad replied that the Building Permit Technician qualification in no longer a requirement but a
preferred qualification and the pay scale has been adjusted for a lower starting wage for a should the
selected candidate not have the certification.
Motioned by Sorensen, seconded by Hudson, to approve the job description and authorize
advertisement for the Administrative Assistant/Building Permit Technician position. Ayes:
Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent. None. MOTION
DECLARED CARRIED.
3). City Administrator's Update
Nafstad reported that Westbridge Community Church is expected to attend the next City Council
meeting to ask for reconsideration of their rezoning requests. Couri outlined what the City Code
requires in order for reconsideration of a zoning request in less than a year. Sorensen inquired how
the Council can determine if the new site plan is a significant change. Brixius suggested if the
Council is not in support of the rezoning, the application should be reconsidered and brought through
process again to only be denied again.
City Council Meeting Minutes Page 7
Regular Meeting of June 15, 2015
Nafstad is working with BNSF in regards to the condition of the Main Avenue NE railroad tracks
and hopes to bring an estimate to a later City Council meeting.
Hudson left the meeting at 8:50 p.m.
Nafstad reported the City of St. Michael has allowed Albertville to use their speed limit trailer on
Kahler Drive NE. So far no tickets have been issued.
Nafstad stated that the detour signs for the 57th Street NE /Church of St. Albert's project have gone
up and construction will be starting soon.
9. ANNOUNCEMENTS AND /OR UPCOMING MEETINGS
June 22
Joint Powers Water Board, 6:30 p.m.
July 2
City Offices Closed, Observance of Independence Day
July 3
Public Works Closed, Observance of Independence Day
July 6
City Council, 7:00 p.m.
July 13
STMA Ice Arena- CANCELLED
July 14
Planning Commission, 7:00 p.m.
July 20
City Council, 7:00 p.m.
July 27
Joint Powers Water Board, 6:30 p.m.
10. ADJOURNMENT
Motioned by Hendrickson, seconded by Sorensen, to adjourn the meeting at 9:13 p.m. Ayes:
Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Hudson. MOTIONDECLARED
CARRIED.
Respec lly submitted,
r
Kimberl . Olson, City Clerk
City Council Meeting Minutes Page 8
Regular Meeting of June 15, 2015