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2020-01-06 City Council Minutes Abertvi11e Smol Town Wog.Illy Qty Ws. ALBERTVILLE CITY COUNCIL Monday, January 6, 2020 APPROVED MINUTES ALBERTVILLE CITY HALL 7:00 PM 1. CALL TO ORDER- PLEDGE OF ALLEGIANCE Mayor Hendrickson called the meeting to order at 7:02 p.m. 2. ROLL CALL Present: Mayor Hendrickson and Councilmembers Cocking, Halling, Olson and Vetsch Absent: None Staff Present: City Administrator-PWD Adam Nafstad, City Attorney Mike Couri, City Planner Alan Brixius, and City Clerk Kimberly Hodena Others Present: Wright County Commissioner Mike Potter, Bonnie LeVasseur, Sallee Nelson, Paul Buhrmann, Henry Hansen, Noah Larson, Jan McLean, Gene Kolles, Larry Boller, Brian Denne, Stan Denne, Scott Dahike, Sarah Hansen, Kelly Holzerland, Ron Klecker, Jerry Harrington, Andrew Sipple, Angel Sipple, Randy Kottke, Fred Stelter, Vikram Aggaruad, Jon Wilkes, Sam Wilkes, Janet Kimbler, Dick Kimbler, Ledena Kamrath, John Warner, Jesse Gaibor 3. RECOGNITIONS—PRESENTATIONS—INTRODUCTIONS - None 4. PUBLIC FORUM There was no one present for the forum. Hendrickson stated that comments regarding the Planning Item will be held until that item is discussed. 5. AMENDMENTS TO THE AGENDA There were no amendments to the agenda. Motioned by Cocking seconded by Olson, to approve the Agenda as presented. Ayes: Hendrickson, Cocking,Halling, Olson and Vetsch. Nays:None. Absent:None. MOTION DECLARED CARRIED. 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. Page 1 A. Approve the December 16, 2019 regular City Council meeting minutes as presented B. Authorize the Monday, January 6, 2020 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. Motion to Approve Pay Estimate No. 5 to Latour Construction Inc. for Albertville Wastewater Treatment Plant and Discharge Improvements in the amount of$469,745.35 D. Draft Planning Commission Meeting Minutes from Tuesday, December 10, 2019 E. Purchase of Salt for the 2019-2020 Snow and Ice Removal Season at a cost of$88.16 per ton Motioned by Cocking, seconded by Olson, to approve the Consent Agenda as presented. Ayes: Hendrickson, Cocking, Halling, Olson and Vetsch. Nays:None. Absent:None. MOTION DECLARED CARRIED. 7. PUBLIC HEARINGS—None 8. WRIGHT COUNTY SHERIFF'S OFFICE—Updates, reports, etc. A. Wright County Sheriff's Monthly Report There were no questions on the report. 9. DEPARTMENT BUSINESS A. City Council 1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) There were no updates. B. Planning/Zoning 1) Heuring Meadows Commons Request for Comprehensive Plan Amendment, Zoning Map Amendment from B-2 District to PUD District, Preliminary Plat, and PUD Development Stage Site and Building Plan Review Hendrickson stated that Council would hold normal business practice for this item. The public hearing was already conducted at the Planning Commission level. She asked that only new information and comments be heard in order to not repeat comments outlined in the Planning minutes. The order of items would be as follows: • Planning Presentation • Developer's Presentation • Council Questions • Public Comment • Developer Follow Up City Council Meeting Minutes Page 2 Regular Meeting of January 6,2020 Brixius reported that an application was received for a multiple use development for 26 townhomes, 159-unit apartment building and a 10,427 square foot day care facility. The development would require a Comprehensive Plan amendment, Zoning Map amendment, PUD Development Stage Site and Building review, and Preliminary Plat. The Planning Commission met and held a public hearing and received public comment. Key issues identified at the public hearing included: • Consistency with the Comprehensive plan: The site is guided for commercial land use. Debate was directed as to whether the change of land use is appropriate with the polices and goals of the City's Vision plan. (See the planning report). • Land use compatibility: The public preferred the future commercial development over the proposed multiple family project. (See planning report regarding land use compatibility.) • The wrong site for residential development. • Impact on taxes and the loss of commercial tax base. (County Assessor's estimates on value and taxes). • Depreciation of Home values: (See planning report). • Impact on City Utilities and Services. (See Engineer's report). • Traffic generation and traffic impacts. (See the Traffic Study findings). • Trespass concerns for children and people living at the site travelling through neighboring properties. • The number of children that will live on this site and impact on the school district. • Storm water drainage and pond design. • Cost of improvements and impact on local taxes. • Crime from the high-density housing and the need for increased police protection. • Density is too great for the site. • Concern that this project will establish a precedent for additional high-density residential development in the city. • The proposed development is contrary to the City's small-town character. The Planning Commission recommended denial of the application on a 4-1 vote. Brixius reported that he asked the Wright County Assessor to provide a tax analysis for how the project is currently proposed. He showed those figures stating that the tax revenue is higher as residential than it would be if kept commercially zoned. He stated that it was indicated the development would appreciate surrounding housing values rather than depreciate values. He also stated the costs the developer will have in relation to utilities. In terms of traffic generation, Brixius reported that a traffic study had been completed by the city's consultant but paid for by the development group. Daily trips per day was estimated at 1,555 whereas commercial would be 3,419 trips per day. The traffic study identified the trips needed for a signal at CSAH 19 and 53rd Street NE. The cost of that improvement would be the developers. Brixius stated there were several other issues identified at the Planning Commission meeting. Concerns over capacity in the schools was expressed and he stated the STMA Superintendent confirmed the district does have the capacity if the development goes forward. The other concern expressed was the stormwater pond and possible danger to children. Crime and private property trespass were brought up. Also, that approval of the development would set a precedent to add additional high-density housing in Albertville. City Council Meeting Minutes Page 3 Regular Meeting of January 6,2020 Vetsch cautioned about tax revenue being a reason to approve the development and feels that it is not the right fit for that location. He felt that density will incur additional expenses to the city for services. Cocking inquired about the market nationally, if there's a difference between subsidized versus market rate rental apartments. Brixius stated that regardless of any land use, development will incur more expenses. Vetsch stated that he doesn't think the housing is a bad idea,but questioned the fit for the location and the city's identified land use plan. Brixius stated that in many communities,high density developments look at location, commercial convenience, and arterial streets so as not to create cut through traffic. Brixius stated that rezoning would be a transition from what was identified in the Comprehensive Plan,but is really a policy decision for the Council. Cocking inquired about vacancy rates and demand from the economy. Brixius stated that nationally retail is backing off as online shopping becomes more popular and development is moving more towards convenience and service type development in terms of commercial development. Maren Lapham, Scott Dahlke,Noah Larson, Henry Hansen and Vikram Aggarwal were present as part of the development team. Lapham presented a history of the concepts that have been proposed. She stated that with the exception of the Goddard School in this application,there has been no interest in 18 years from retail developers. Lapham reviewed the amenities available to both the townhomes and apartment units as well as the density. She stated the high density is needed to offer these amenities and have a successful project. She stated that Pinnacle Living would be the management company. She reviewed the Primary Market Area(PMA) and comparative rental costs within the map area. Cocking inquired how the construction would be phased. Larson replied that it could be arranged to fit Council conditions if needed. Dahlke said the original proposal is to move ahead on the Goddard School in spring 2020, then the apartments and then townhomes. Cocking would like to see the townhomes constructed first as a buffer for the residents to the west. Vetsch inquired if they don't fill apartment vacancies and Larson replied their goal is to make it a successful project. He anticipates that they will be full within in a year in the apartments. Vetsch inquired if they would lower rent and Larson replied they would not. Vetsch stated that he had concerns with future management companies, such as 30 years from now, and how they would ensure that the properties are maintained. Larson replied their group has a long-term goal for the development and they are investing a lot into the project. Hendrickson asked Brixius to review the growth of high density in Albertville. Brixius stated that there are 302 apartment units in Albertville and there have been no new apartments in over 29 years. There were renovations done on Albertville Meadows about 10 years ago. Cocking inquired how the city could ensure high quality product/tenant vetting. Couri stated that buildout standards can be in the PUD agreement;however,maintenance type issues such as carpet, interior upkeep, etc. cannot be enforced or policed. Brixius reported that staff is working on the International Property Maintenance Code adoption to help deal specifically with rental units. Couri added that the city has the means to enforce life safety conditions. Olson inquired how the development group intends to contract with the property management company and Larson replied generally it is a year at a time. Cocking stated that the response did not give him a feeling of long-term satisfaction. Larson stated that it is in their best interest to have a property management company that maintains and upkeeps the property in order to keep rents at the desired rate. Brixius stated that a PUD is recorded on the property and is a contract with the city; it binds any future owners. Cocking asked if conditions can City Council Meeting Minutes Page 4 Regular Meeting of January 6,2020 be changed if ownership changes and Couri stated it could not, only if the site or use is altered and then new approvals would be needed. Vetsch referred to the long-range plan and felt the zoning doesn't need to be changed just to sell the property. Hendrickson asked Brixius to speak to the remaining industrial and commercial land still available in Albertville. Combined,Brixius stated that there are approximately 582 acres of land guided for commercial development and of that approximately 340 acres are undeveloped and available for future commercial development. Hendrickson moved the meeting into the public comment portion of the meeting. Dick Kimbler, 5522 Kalland Avenue NE, would like to see a fence tall enough along the north side of the property to prevent youth from climbing over and into private properties. Cocking asked the development group if they were opposed to a fence being a condition of approval and Larson replied they were not opposed. Janet Kimbler, 5522 Kalland Avenue NE, stated she has no ill will towards the development group or the Council,but feels that 11 acres is not large enough for the proposed development. She would like to see a church, especially a non-denominational church, go into the site. She asked the Council do what is right and not approve the development application. Cocking inquired what type of use would be acceptable. Kimbler didn't have a reply other than a church. Jan McLean, 1093157th Street NE, stated that she has had trouble with youth on her property and some items have gone missing. She is afraid to confront the youth for fear of repercussions. Andrew Sipple, 5439 Kalland Avenue NE, was opposed to the project. He suggested a restaurant at the location and that the Goddard School would be a good fit. Sipple had concerns the traffic study was conducted in June when school was out of session so how could it be accurate? Nafstad agreed traffic counts may be different if counted during the school year. Nafstad clarified that the study generally compares three scenarios: what's occurring today, the proposed development with no traffic improvements, and the proposed development with traffic improvements. He stated that if the traffic study were to include additional traffic, the proposed improvements and results would likely be the same. Nafstad noted commercial retail development would generate more traffic than what is proposed. He stated the long-range transportation plan has always planned for a traffic signal at 53rd and CSAH 19 and there could be a possible extension of 53rd Street NE to the east in the future. Brock Potter, 112 Main Street N, St. Michael, stated that private property owners should dictate what is developed on that property. He felt that private property rights are infringed upon with zoning guidelines. He has not heard anyone speak to private property rights. He felt the private market should be trusted to guide what is developed on private property. Kelly Holzerland ,5395 Kali Avenue NE, had questions that she would like Council to consider: • How does the development increase property taxes when the general real estate market has already drastically increased with inflation? CityCouncil MeetingMinutes Page 5 Regular Meeting of January 6,2020 • Albertville-St. Michael is already a highly desirable community because of the STMA School District and people will purchase a home just to be in the district. • Where do the statistics for the 0-10 police calls per year come from? Do they come from similar communities? • Even though a traffic signal is eventually planned for CSAH 19 and 53rd Street NE, it doesn't have to happen right now. She felt that the number of accidents at CSAH 19 and CSAH 18 is great and a traffic signal at 53rd Street NE and CSAH 19 will not help. • What happens if the current owner files bankruptcy? How can the city ensure the property will still be maintained? • How can there be only 30% of the renters that will have school age children when STMA is so coveted? Was the School District told this number and were they given the 30%when stating the district has capacity? Couri responded to the bankruptcy question and stated that federal government cannot take off a mortgage or encumbrance such as a development agreement. It does not apply to recorded documents against a property. Randy Kaye, Cottages of Albertville, inquired what will happen to the residential lot in the northeast corner if high density is rezoned for the proposed development. He stated that lot will be land locked and will need to be high density as well. He would like to see a medical building/services as well as the Goddard School at the proposed site. Sarah Hansen reported that no one in the audience at the Planning Commission was in favor of the application and Planning Commission did not recommend approval of the application. She stated seven points: 1) Albertville's high-density district allows for 14.5 units per acre and the application comes in at over 18 units per acre. 2) With the right in and right out access on CSAH 19, it is too small a length of road at 45 miles per hour between lights 3) Will there be bus stops for the children? 4) Can a fire truck maneuver through the site? 5) 53rd and 57th Streets NE are already dangerous with many near misses. 6) Albertville is 4 square miles while St. Michael is 36 square miles and Otsego is 30 square miles. 7) This change would go against the city's strategic plan to keep the corridor a commercial corridor. Cocking asked what Hansen would like to see developed. She stated a YMCA, a swim school, a coffee shop, community center, etc. She wants to see something that would enhance the quality of life for Albertville residents. Cocking stated he complete understands that people are opposed,but City Council Meeting Minutes Page 6 Regular Meeting of January 6,2020 how long do the rest of the 7,500 population of Albertville need to subsidize a property when there was a chance of development that would help businesses and reduce the levy? Businesses are looking for affordable housing. He wanted to be clear taxes are not the driving force for approval. Hansen stated that she would wait because she thinks something better will come along. She wouldn't make a decision just because something is before the Council. Olson felt that this development could benefit the community. Olson felt this would be a good option for those not ready to or wanting to own a home, specifically young adults just getting started. Cocking stated that saying no to this development could have just as large of an impact on the community as saying yes. He thanked Hansen for her time and involvement invested in the process. Ron Klecker, 5524 Kalland Avenue NE, stated that apartment buildings are going up all over in cities surrounding Albertville. He encouraged Council to be careful with what land is left in Albertville. He strongly feels this is too high density for the location. He felt it will lead to even more high density rezoning in the future. Other issues he identified were geese, danger of the pond to children, and the morning rush for the daycare drop-off by 9:00 a.m. He felt the right in,right out would be dangerous as well. He had concerns about cut through to Casey's General Store as well as theft. He would like to see twin homes at the location instead. He felt in time, development of the site would take care of itself. Larry Boller, 10917 57th Street NE, stated that the Cottages of Albertville were owner occupied with only 1-2 residents per unit whereas the apartments could have twice or more than that. He stated the small crime can eventually lead to big crime. He had concerns with calling the units high end while they only have one bath. He would like to see a consultant hired to do business recruiting and felt it would be well worth it for Albertville. If the lot is kept commercial,they would see a longer build out of commercial buildings rather then residential going up in three years. Lapham stated the police call figures were directly from Pinnacle and they manage many properties locally that are extremely similar to this product. The percentage of renters with children were also from Pinnacle from their data. She stated an onsite person would be available to deal with trespass issues and there is a strong system to remove problem renters. Larson stated that in terms of schools, added students will be in the STMA School District whether the development is here in Albertville or St. Michael. Cocking added that more students also increase the funding the school receives with the per pupil dollars. Cocking added that the Fire Chief Bullen had no concerns about fire response or accessibility. Bullen indicated that the apah intent population may be recruitment candidates for the department to maintain a full department. Cocking stated the renters seem to want a higher quality than what is currently available in Albertville. He said it doesn't make sense that once a homeowner purchases and moves into a home in Albertville,no one else can come in. He hears "keep Albertville small town"but there are constant complaints of why there aren't certain businesses or restaurants in town. How do they determine a well-rounded community? Motioned by Cocking to approve Resolution 2020-001 Approving a Request for a Comprehensive Plan Amendment,A Zoning Map Amendment to Change Zoning from B-2 District to PU District, A Preliminary Plat and A PUD Development Stage Site and Building Plan,for a Mixed-Use High Density Residential/Commercial Project Located on Outlot A Heuring Addition at the Corner of City Council Meeting Minutes Page 7 Regular Meeting of January 6,2020 County Road 19 and 53rd Street NE with the City of Albertville and to approve Ordinance 2020-01 Amending the Official Zoning Map of the City of Albertville, Relating to the Heuring Meadows Commons PUD. Located on Outlot A Heuring Meadows Addition in the City of Albertville. Olson stated that in regards to requiring a fence along the north and northwest corner of the site, he believed the fence height limit is six feet. Cocking would like to see a condition for fencing and the order of how the buildings are constructed to ensure the townhome are built before or together with the apartments. Couri explained that could be required as a condition with language included in the development agreement. Couri stated the development agreement could require phasing of the buildout and could require the townhomes to be built prior to occupancy permits for the apartments. This would require that the apartments be built either simultaneous or after the townhome units. Cocking amended his motion to include the changes as recommended by the City Attorney. Motion, seconded by Hailing. Hendrickson stated that she has previously called industrial park business owners and they informed her that their employees wish to live in Albertville, but have a difficult time finding housing. She has also heard from restaurants that it is very hard to find good staff Olson stated that the lot is a prime piece of property and the adjacent uses are compatible. Vetsch stated his vote would follow the wish of the residents he has heard from and that have attended the meetings; he stated he was elected to represent the wishes of the Albertville constituents. Halling felt there were very simple solutions to the concerns outlined. She felt the proposal was realistic housing for working families, there is no depreciation to surrounding properties, it may increase potential for others to invest in other commercial lots, and the development group has not asked for subsidies. Hendrickson stated there was a motion on the floor as well as a second. Hendrickson called for a vote. Ayes:Hendrickson, Cocking, Halling and Olson. Nays: Vetsch. Absent:None. MOTION DECLARED CARRIED. Vetsch announced his resignation from the Albertville City Council. Couri explained that to be valid, the resignation must be in writing, which Vetsch completed. Vetsch exited the meeting. Motioned by Cocking to adjourn the meeting. There was no second. Cocking withdrew his motion. Hendrickson called for a recess of the meeting at 9:43 p.m. Hendrickson reconvened the meeting at 9:59 p.m. City Council Meeting Minutes Page 8 Regular Meeting of January 6,2020 C. Fire—None D. Finance—None E. City Clerk—None F. Public Works/Engineering—None G. Building—None H. Legal—None I. Administration 1) 11850 62nd St. NE; Request for Exception to City Ordinance Requiring Payment of Delinquent Property Taxes Prior to Submitting a Zoning Application Nafstad reported that Lou Feger's Racing is a tenant in the former Cielo property at 11850 62nd Street NE and is seeking a Conditional Use Permit (CUP)for minor auto repair. However, the property owner is behind in property taxes. The Albertville City Code requires that any development application to be accepted by the city must have no outstanding fees, fines, taxes or invoices. The tenant is asking for an exception to this requirement. The Zoning Code allows the City Council to grant exceptions to this requirement. Randy Hansen, owner of Lou Feger's Racing, stated Wright County has no formal payment plans or arrangements. However, he has made arrangements with the property owner to get the unpaid taxes paid by year end. He stated that the inability to add the minor auto repair to his business is a hardship to get his business fully up and running. He offered to enter into an arrangement with the city that if the taxes are not paid within in a year, the CUP could be revoked. He stated he has invested a lot of money into the business and is anxious to get fully functioning. Olson inquired if all other building permit fees have been paid and Nafstad replied they have. There will be the cost of the development fee and escrow in order for the CUP to be reviewed by Planning Commission. Olson recognized the amount of money and time Hansen has put into the business and Hansen stated he is looking forward to making the business a success in Albertville. Couri stated that another option would be to require a larger escrow at the time of development application as the city would be unable to recoup its share of tax dollars if they remain unpaid. Nafstad asked if the CUP could be revoked and Couri replied that it is easier to require a larger escrow. Motioned Hailing, seconded by Olson, to Approve the Request for an Exception to City Ordinance Requiring Payment of Delinquent Property Taxes Prior to Submitting a Zoning Application for Lou Feger's Racing, located at 11850 62"d Street NE. Ayes:Hendrickson, Cocking, Halling and Olson. Nays:None. Absent: Vetsch. MOTION DECLARED CARRIED. 2) 2020 Appointments to Boards and Committees City Council Meeting Minutes Page 9 Regular Meeting of January 6,2020 Council tabled the appointments to the next regular Council meeting. 3) 2020 Official Designations and Appointments Olson stated he would like to see this approved since there are official bank designations included in the resolution. Cocking suggested the next Councilmember with years of service be named the Acting Mayor and named Olson to be Acting Mayor. Motioned by Cocking, seconded by Olson, to Approve Resolution 2020 XIX designating officials, consulting firms, and depositories for 2020 with the amendment of naming Olson as Acting Mayor. Ayes:Hendrickson, Cocking,Halling and Olson. Nays:None. Absent: Vetsch. MOTION DECLARED CARRIED. 10. Announcements and/or Upcoming Meetings Cocking inquired of the City Attorney what the next steps are regarding Vetsch's resignation. Court replied that the resignation is not official until the City Council formally accepts the resignation. Then the Council may make an appointment to the vacancy; there is no official appointment process to follow. Vetsch's term is up at the end of the year, so the seat will be on the November ballot anyways. January 13 STMA Ice Arena Board, 6:00 p.m. January 14 Planning Commission, 7:00 p.m. January 20 Martin Luther King Jr. Day, City Offices Closed January 21 City Council, 7:00 p.m. January 27 Joint Powers Water Board, 6:00 p.m. Parks Committee, 7:00 p.m. February 3 City Council, 7:00 p.m. February 10 STMA Ice Arena Board, 6:00 p.m. February 11 Planning Commission, 7:00 p.m. February 17 Presidents Day, City Offices Closed February 18 City Council, 7:00 p.m. February 24 Joint Powers Water Board, 6:00 p.m. Parks Committee, 7:00 p.m. 10. ADJOURNMENT Motioned by Cocking, seconded by Olson, to adjourn the meeting at 10:23 p.m. Ayes: Hendrickson, Cocking,Halling and Olson. Nays:None.Absent: Vetsch. MOTION DECLARED CARRIED. Respectfully submitted, imberly A. odena, City Clerk City Council Meeting Minutes Page 10 Regular Meeting of January 6,2020