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PL 11/04/1970 - 30185f'1 PLANNING COrASISSION MEETING NOVEMBER 4, 1970 8:00 P.M. PAGE 1 The meeting was called to order by Chairman Erickson at 8:10 P.M. ROLL CALL: Memb ers Present: Members Absent: Others Present: Schmedeke, Fitzpatrick, Erickson, Sarris Minish Darrel Clark, Engineering Assistant APPROVE PLANNING COMMISSION MINUTES: OCTOBER 21� 1970 MOTION by Fitzpatrick, seconded by Schmedeke, that the Planning Commission minutes of October 21, 1970 be approved. Upon a voice vote, a11 voting aye, the motion carried unanimously. ►E PLATS & SUBDIVISIOIQS-STREET� �y MOTION by Schmedeke, seconded by Fitzpatrick,that the Planning Commission rece3ve the minutes of the Plats & Subdivisions-Streets & Utilities Subcommittee meeting of October 21, 1970. Upon a voice vote� a11 voting aye, the motion carried unanimousZy. �, RECEIVE PARKS & RECREATION COrA'fISSTON MINUTES: OCTOBER 26, 19%0 1�TION by Fitzpatrick, seconded by Schmedeke, that the Planning Commission receive the minutes of the Parks 6 Recreation Commission meeting of October 26, 1970. Upon a voice vote, a1Z voting aye, the motion carried unanimously. 1. PUBLIC 13EARING• PROPOSED PRELIMINARY PLAT, P.S. �70-04� FIVE SANDS BY FIVE SANDS, INC.: Replat of Block 2, Pearson's lst Addition and Parcel 8400. The Public Hearing Notice was read by Chairman Erickson. Mr. Richard Fudali and Mr. James Rurth represented the Five Sands, Inc. Mr. Fudali explained the reason for platting was, that under the Minneaota Statutes, torrens property would have to be either platted or regiatered land surveq, as the torrens examiner at the Countq would not accept a description by metes and bounds. They decided to plat in order to have easements recorded on the plat. Lot 1 is under construction, and the public streets to be used are Lincoln and East River Road. Lot 2 could use 79th Way, and there is aa easement dedicated over Lot 1 to get to the garages. Lot 3 has an easement over Lot 1 and then onto Lincoln Street. Lots 2, 4 and S are serviced by easements prp- viding for ingress and egress to Lincoln Street also. � Plannin� Commiasion Meetin� - November 4� 1970 Pa�e 2 On Lot 7, there is going to be a Recreation building constructed. This build- --...=r''�__ � ing will have a separate owner and be a separate corporation with Ken Nordling and himself. The other six lots will pay their share of the real estate taxes and maintenance. Outlots A, B and Lot 1 are under one mortgage at the present time. They cannot develop this property without a plat. They found they cannot construct 295 units all at the same time. As far as timing, they will be renting out the first building in the spring of 1971, the second in the summer of 1971, and the 3rd phase will start construction in the spring of 1971 with the 4th and Sth phase in the summer and fall of that year. The complete praject should be finished in 1972. Chairman Erickson asked Mr. Fudali who Craig Johnson was and what his intereats were in this project. Mr. Fudali explained that Craig Johnson was in the original organization of °tThe Committee of Five" and that he (Mr. Fudali) was an original member of the group and has purchased the interests of the other three individuals and now he and Ken Nordling are the present owners. The Chairman asked what types of guarantees could Mr. Fudali give to the City that the project would be completed. In the rezoning application, this was pre- sented as one project, and now what is being presented is that these buildings can be owned by different people. Mr. Fudali answered that was correct, but he did not feel if the City had a situation where 295 units were built under one mortgage, and all State require- ments were followed from construction and legal point of view, it would be diffi- cult for the City, ten years from today, to say they would not permit the oraner n to �ell off•a building. He did not believe that �ybody could stand before this ,l body or any other body and say what could ha.ppen in the future. The FHA will mortgage the buildings and they plan to complete the project. Chairman Erickson stated thefe were outlots shown on the plat, and asked what guaranty was given to the community that these parcels would not go tax forfeit. Mr. Fudali explained that in respect to being able to continue the work, they have a$684,000 mortgage of record on Lot 1 together with Outlots A and B. With respect to Lots 3, 4 and Outlot C, they will be under one mortgage. They diacussed that point at some length with Mr. Juster. He said, as far as Outlot B was concerned, if it ever did go tax delinquent, the City of Fridley would prob- ably buy it and levy the eutire asaessments againat Lot 1. The tax statements would include Outlot B and Lot 1. The reason certain parcels are designated as Outlots is to call attention to the fact they are something other than building lots and also makes it easier to describe them as they are, in fact, easements over these Outlots. Regarding ownership, Mr. Fudali said they own Outlots A, B and C and Lots 1, 2 and 3 of the proposed preliminary plat. The Southerly tract is being pur- chased by contraet. In respect to Lot 7, an agreement is provided whereby al]. of Lot 7 is sub�ect to an easement for recreational purposes in favor of all the rest of the lots. Prior to iasuing three building permits, they are going to build the recreational unit and they intend to do so. When they build the thix'd unit, they will pick up their contract for deed from Pearson, Inc. They do not �"'� feel this size of project should have an outdoor pool, so they have decid�d to provide an indoor one and saunas, etc. Planning Co�ission Meetin� - November 4 1970 Pa�e 3 Mr. Harris said he understood a building was being constructed on Lot 1, and �,w,1 wondered what description was used. Mr. Fudali said that on the mortgage, they � used the metes and bounds description, but it, in f act, is on Outlot A, B and Lot 1. Mr. Harris asked what the original zoning was. Darrel Clark said it was partly M-1, C-2S and R-3 and that it was rezoned to R-3A. Mr. Harris added that there was quite a hassle over the rezoning. Mr. Fitzpatrick responded that the "hassle" started after the request had left the Planning Commission. Mr. Fudali said that they tried to build this project as one project, but they came to the conclusion that it was impossible. They are getting mortgages from FHA as they apply for them. He said he could not stand before them and say every phase will go through, but he has every reason to believe it will go through. There is too much at stake for him if the project didn`t go through as planned. Mr. Harris said he was concerned basically what will happen if the bottom half of the land, which is still owned by Pearson, should not be developed because of circumstances relating to mortgages or if Pearson should decide to sell to someone else -- what type of guaranty has the Planning Commission got in a case like this? He was looking for some guaranty that this south half of the area would be developed in the same manner as the upper area. Mr. Fudali said in the acceptance of the plat, it would be upon approval of the easements by the Administration and City Attorney. If you approve the proposed plat, the undeveloped lots would be subject to proper easements for ingress and egress. He stated he cannot guarantee that this is what we are going � to do, but he would work towards it. If the plan did not go through, the Pearaon . Company would have all the proper ingress and egress for the area. He could not =- find a bonding company that would issue a bond to cover or guarantee the comple- tion of the concept. Winston Jacobson, 121 79th Way N.E.: His problem was concerning the results of the lawsuit that came up about 2'� years ago. An agreement was made at that time that the only entrance and exit would be off East River Road or Lincoln Street. The agreement read there would be no entrance at the East end of 79th, especially if Lot 1 got spun off at a later date. The Engineering Assiatant said that there are easements running para11e1 to 79th. A copy of the easements was sent to the City Attorney. The Chairman said there appears to be a rectangular shaped parcel on the Northeast corner of 79th Way and a dedicated street. There could be a cul de sac built at that point. Mr. Jacobson com¢nented that with the cul de sac at 79th Way, you will actually have an access point. Mr. Harris asked Mr. Fudali about Lot 7 which would be landlocked. Mr. Fudali answered that when they met with the Engineering Department and the City Attorney, they felt that by giving an easement for ingress and egress, it would protect the lot from going tax forfeit. The Engineering Assistant said that copies of the easementa were forwarded to the City Attorney who is out of town naw. Mr. Juster would check them as far as the legal part was concerned, but he n, did not call before he left as to whether or not they are satisfactory. The area requirements are 2,500 square feet for each unit. These lotss, �s individual tracts, will nqt hold the size of building� ��ing b�ilt. The enti.�e tract has enough land to take care�of the entire concept. The parking require- PlanninQ Commission MeetinQ - November 4, 1970 Pa�e 4� �� ment,s are met. One way the City could protect themselves would be to issue all � the permits at one time on the entire tract. The Chairman wondered what would happen if, when a structure was built on Lo�t 1 and Lot 2 was sold. Mr. Fud�ali said they would end up with a bigger signi- ficant risk than the City would if the plat were approved. There was the possi- bility of a building permit being denied. Chairman Erickson said that he never heard of this type of mortgaging before and he checked with Bloomington Planning Commission. He understood one mortgage company would issue a mort�age for the entire concept, but do so one at a time as the buildings are completed. Mr. Fudali answered that ordinarily you do not get involved with mortgagea in a plat, but this is not the situation here. His concern is what would happen if Five Sands, Inc. goes bankrupt, but if something should go wrong, the City would have a platted piece of ground. The Engineering Assistant said the entire tract will hold 295 units. Taking out Lot 7, the recreational area, the complex would have to be decreased. Chairman Erickson asked why they did not continue to file under metes and bounds. Mr. Fudali said they could, but they could not file the deed on the Pearson property then. They would like to have five separate tax statements, as everything else is separate. The Engineering Assistant was asked to find out from the County if they would re-combine the two parcels, compute the area on the individual lots, and find out the terms of the agreements at the time of rezoning. n Mr. Fitzpatrick said that he was somewhat disturbed about the "what if" - questions, as they could apply to anything. He continued that we do have ta take the intent on some things, and although Mr. Harris says we are hooked sometimes, I feel usually not. �1 Mr. Schmedeke said the Subcommittee discussed this same project previously this evening. They approved the plat. They did not take a pessimistic view of it. They felt the potential intent was to finish this project. Although Mr. Clark and the City Attorney met, he would like to look further at the request, but he surely would not object to it. Chairman Erickson did not believe the attorney had submitted any opinion and he would like to have the benefit of his counsel. The Engineering Assiatant said the City Attomey agreed there was risk involved. He could not think of any way to post a bond to run for "R" number of years stating that this would always remain in one ownership. He gave the impres- sion that there would be reasons involved for the problem of simplifying all the deacriptions and platting would be the proper method. Chairman Erickaon said it was his understanding that if the City does not accept the plat, the County will not accept the sepaxate deeds. There will not be separate tax statements. It appears that this would not be one complex if five separate buildinga had five separate owners. He felt the Commission should have more time to study the loose ends, and would request that the City Attorney attend the November 18th meeting. MOTION by Harris, seconded by Fitzpatrick, that the public hearing o�' the Plannin� Comtaission Meeting - November 4, 1970 _ Page 5 ��._._. proposed preliminary plat, P.S. #70-04, Five Sands, by Five Sands, Inc. be con- `--�'�' tinued until the next Planning Commission meeting of November 18, 1970. Upon a voice vote, all voting aye, the motion carried unanimously. One of the items of.concern is the recreational lot. If there is a separate o�aner for the recreational lot and five owners for the other buildings, who wi11 be paying 20% of the operation costs of the recreational building and how will this be handled legally if one of the five buildings should change ownership. 2. PLANTING BOULEVARD (40FEET) IN MOORE LAKE HIGHLANDS 4TA ADDITION: The auggestion was again discussed for using the 40 foot strip for a nursery . The City could plant seedlings and then later transplant them to other areas in the City. Or the school could use the land for a classroom project. Mr. Fitzpatrick said that the Park Board is now cognizant of this problem, and if the Planning Commission wished to take it off the agenda and refer it to Parks, they would work on it. Mr. Schmedeke said he did not want it to be lost in the shuffle. He thought it would be a wonderful oppoYtunity to plant a variety of evergreens and see which type grows best in Fridley. Another factor the Commission felt that should be checked was the comparison of the cost of transplanting a tree which had been growing with that of a tree purchased with a one year guarantee. Then should they over-plant and then transplant, or � use it for a pleasant place to walk. MOTION by Sehmedeke, seconded by Harris, that the Planning CouQnission refer the problem of the 40 foot Planting Boulevard in Moore Lake Highlands 9th Addi- tion to the Parks and Recrea tion Commission for their s�udy and solution. Upon a voice vote, all voting aye, the motion carried unanimously. ADJOURNMENT : There being no further business, Chairman Erickson adjourned the meeting at 9:45 P.M. Res ectfully s bmitted v���, . . c. ' . � �¢u.c�-✓� Hazel (J' Brian Recording Secretary �