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03/02/1998 - 00000149THE MINUTES OF THE REGULAR MEETING OF THE FRIDLEY CITY COUNCIL OF MARCH 2, 1998 The Regular Meeting of the Fridley City Council was called to order by Mayor Jorgenson at 7:30 p.m. PLEDGE OF ALLEGIANCE: Mayor Jorgenson led the Council and audience in the Pledge of Allegiance to the Flag. ROLL CALL: MEMBERS PRESENT: Mayor Jorgenson, Councilman Barnette, Councilman Billings and Councilwoman Bolkcom MEMBERS ABSENT: Councilman Schneider APPROVAL OF MINUTES: COUNCIL MEETING, FEBRUARY 23, 1998: MOTION by Councilwoman Bolkcom to approve the minutes as presented. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS: 1. RESOLUTION AUTHORIZING CITY MANAGER, WILLIAM W. BURNS, TO SIGN THE GRANT AGREEMENT END GRANT ("THE GRANT CONTRACT") FOR THE YOUTH INITIATIVE GRANT AS REPRESENTATIVE OF THE CITY OF FRIDLEY: Mr. Burns, City Manager, stated that this agreement spells out the terms for receipt of $280,250 for the finishing of the lower level of the Fridley Community Center. These terms relate to record keeping, permitted use of grant money, documentation of the final plan and costs, payment of prevailing wages, and local matching requirements. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 2. RECEIVE THE MINUTES OF THE PLANNING COMMISSION MEETING OF FEBRUARY 18, 1998: RECEIVED THE MINUTES OF THE PLANNING COMMISSION MEETING OF FEBRUARY 18, 1998. FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 2 3. RECEIVE BIDS AND AWARD CONTRACT FOR HACKMANN AVENUE WATER LINE REPAIR PROJECT NO. 317 AND HACKMANN CIRCLE STREET RECONSTRUCTION PROJECT NO. ST. 1998-1: Mr. Burns, City Manager, stated that ten bids were received and opened on February 25 for this project. This project involves the reconstruction of Hackmann Avenue and Hackmann Circle, as well as for replacement of the water line along Hackmann Avenue from Hathaway Lane to Tennison Drive. The low bidder was Forest Lake Contracting, Inc. in the amount of $382,705. It is recommended the bid be awarded to them. The bid contained an option for the sump pump connections and, if this proceeds, there will be a change order for this project. RECEIVED THE FOLLOWING BIDS FOR THE HACKMANN AVENUE WATER LINE REPAIR PROJECT NO. 317 AND HACKMANN CIRCLE STREET RECONSTRUCTION PROJECT NO. ST. 1998-1: I: �.�i -.�i Forest Lake Contracting, Inc. S.R. Weidema, Inc. Valley Paving, Inc. Thomas & Sons, Inc. Midwest Asphalt Northwest Asphalt, Hardrives, Inc. W.B. Miller, Inc. Arnt Construction C.S. McCrossan Inc. Co., Inc. Total Bid $382,705.00 $404,042.39 $408,454.05 $412,733.00 $414,577.00 $414,914.83 $419, 981 . 50 $438,027.00 $462,665.00 $502,331.00 AWARDED THE CONTRACT TO THE LOW BIDDER, FOREST T,AKF' CONTRACTING, INC. IN THE AMOUNT OF $382,705.00 FOR THE HACKMANN AVENUE WATER LINE REPAIR PROJECT NO. 317 AND HACKMANN CIRCLE STREET RECONSTRUCTION PROJECT NO. ST. 1998-1. 4. RECEIVE BIDS AND AWARD CONTRACT FOR REPAIR OF WELL NO. 2, PROJECT NO. 316: Mr. Burns, City Manager, stated that bids for the repair of Well Nos. 2, 6 and 7 were opened in January and contracts were awarded for Well Nos. 6 and 7. At that time, however, the bids were rejected for Well No. 2 and this portion of the project was re-bid. Four bids were received and opened on February 25. The low bidder was Keys Well Drilling in the amount of $32,181. It is recommended the contract be awarded to them for the repair of Well No. 2. RECEIVED THE FOLLOWING BIDS FOR THE REPAIR OF WELL NO. 2, PROJECT NO. 316: FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 3 I: �.�i -.�i Keys Well Drilling Bergerson Caswell Well Co. Mark Traut Wells E.H. Renner & Sons Total Bid $32,181.00 $35,544.00 $43,622.50 $46,954.00 AWARDED THE CONTRACT FOR THE REPAIR OF WELL NO. 2, PROJECT NO. 316 TO THE LOW BIDDER, KEYS WELL DRILLING IN THE AMOUNT OF $32,181.00. 5. CLAIMS: AUTHORIZED PAYMENT OF CLAIM NOS. 79390 THROUGH 79525. 6. LICENSES: APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE IN THE LICENSE CLERK'S OFFICE. 7. ESTIMATES: APPROVED THE ESTIMATES, AS FOLLOWS: Forest Lake Contracting 14777 Lake Drive Forest Lake, MN 55025 TH 47 and I-694 Ramp N.E. Reconstruction Project No. ST. 1997-3 FINAL ESTIMATE . . . . . . . . . . . . . . M.C. Magney Construction, Inc. 19245 Highway 7 Excelsior, MN 55331 $ 4,559.85 Wellhouse No. 1 and Water Booster Station Project No. 298 Estimate No. 6 . . . . . . . . . . . . . . . $31, 614.10 Councilwoman Bolkcom requested that Item 1 be removed from the consent agenda. No persons in the audience spoke regarding the proposed consent agenda. MOTION by Councilman Barnette to approve the consent agenda items, with the exception of Item l. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 4 ADOPTION OF AGENDA: MOTION by Councilwoman Bolkcom to adopt the agenda with the addition of Item 1 from the consent agenda. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. OPEN FORUM, VISITORS: There was no response from the audience under this item of business. NEW BUSINESS: 8. FIRST READING OF AN ORDINANCE REPEALING CHAPTER 407 OF THE FRIDLEY CITY CODE IN ITS ENTIRETY, AND ADOPTING A NEW CHAPTER 407, ENTITLED "RIGHT-OF-WAY MANAGEMENT" AND AMENDING CHAPTER 11 OF THE FRIDLEY CITY CODE, ENTITLED "GENERAL PROVISIONS AND FEES:" Mr. Flora, Public Works Director, stated that a public hearing was held February 23 on this proposed ordinance. At that meeting, comments were received from Minnegasco, Northern States Power and Paragon Cable. Those comments have been reviewed and, as a result, several changes have been made in this ordinance. The changes include the definition of pavement; added language regarding the supremacy of a franchise; an added caveat of delayed penalty; the requirement for City permits regardless of agency right-of-way ownership; establishment of a two-year guarantee period consistent with existing franchises; deletion of two denial items because they were incorporated into another section and our reconstruction restoration templates; clarification of underground facilities; deletion of the nuisance aspect; expansion of the nuisance item for abandoned facilities; and addition of the registration fee. Mr. Flora stated that these changes have been reviewed with representatives from Minnegasco, Northern States Power, and Paragon Cable. He felt there was no major discontent with this ordinance as currently written. Mr. Al Swintek, representing Minnegasco, thanked Mr. Flora for listening to their concerns. He stated that Mr. Pilon attended a meeting on February 25 to discuss these issues. Although progress has been made, there is still a substantial amount of work before there is a meeting of the minds. He hoped that they could come to an agreement that is workable for everyone. He requested this ordinance be tabled in order to give time for these issues to be worked out. Mayor Jorgenson asked if the construction schedule would be affected if this item is tabled. FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 5 Mr. Flora stated that the City would not have an ordinance for any spring construction. Mayor Jorgenson asked if there is a first reading of the ordinance this evening. She said the second reading occurs on March 16. She wondered how long before it would become law. Mr. Flora stated that it would become law ten days after publication. Mayor Jorgenson stated that if this is tabled until April, the construction season would be well under way. Mr. Swintek stated that his concern is if there is a first reading of the ordinance this evening. He said then it would be only one vote away from becoming law. Mayor Jorgenson stated that it appears there is a meeting of the minds on some of the issues. She would trust that staff would work with the utility companies before the next City Council meeting on March 16. She felt that the City had to look at other companies that will be doing business in the City this construction season. She asked Mr. Swintek if there were any specific items to which they were opposed. Mr. Swintek stated that it would be best for Mr. Pilon to address these issues; however, he could address a few. As a franchise utility, Minnegasco felt it should not be necessary to take out a construction performance bond. The franchise agreement addresses the City's recourse if Minnegasco does not perform up to certain standards. Another concern is the need to pay permit fees to the City on state and county roads, as well as some issues regarding the unusable facilities and user fees. Mayor Jorgenson pointed out that the City can only recoup the actual costs for administration. Mr. Knaak, City Attorney, stated that any fees have to be related to the costs for administration and cannot be a means by which to generate income. Mayor Jorgenson stated that the City wants to have a good working relationship with companies that have franchise agreements, but it does not want to preclude other companies from coming into the City. She was sympathetic to Minnegasco's needs but felt inclined to proceed with the first reading of the ordinance and work on the issues before the second reading of the ordinance. Mr. John Theis, Northern States Power, stated that Northern States Power is definitely opposed to user fees. He felt that some of the permit fees are excessive. Their objections to this ordinance are on file. Even though changes have been made, there is still FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 6 disagreement. Northern States Power has a good relationship with the City and pays a considerable amount of property and real estate taxes. He requested that this ordinance be tabled to enable them to work further with staff. Mr. Theis referred to the City of Edina ordinance which he felt was a good ordinance. Councilman Barnette asked in what ways Edina's ordinance is more favorable. Mr. Theis stated that it does not have some of the user fees. Mr. Flora stated that the Edina ordinance does not have any permit fees for any franchised organization. He felt a number of issues may change when the Public Utilities Commission task force submits their recommendations. This ordinance will probably need to be modified to adopt the Public Utilities Commission items, but, in the meantime, the City still needs an ordinance under which to operate. Councilwoman Bolkcom suggested that staff could contact Edina on their ordinance. Also, the City could further communicate with the utility companies regarding their concerns. Mayor Jorgenson stated that if Council is not prepared to proceed with the second reading at the next City Council meeting this ordinance could possibly be tabled at that time. MOTION by Councilman Barnette to waive the reading and approve the ordinance on first reading. Seconded by Councilwoman Bolkcom. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. 9. PRELIMINARY PLAT REQUEST, PS #98-01, BY HOLIDAY STATIONSTORES, INC., TO CREATE A 1.26 ACRE LOT FOR A 3,690 SQUARE FOOT CONVENIENCE STORE, CAR WASH, AND FIVE GAS PUMPS TO BE LOCATED IN THE NORTHWEST CORNER OF THE HOLIDAY PLUS SITE, GENERALLY LOCATED AT 242 57TH AVENUE N.E. (WARD 3): Mr. Hickok, Planning Coordinator, stated that in addition to this preliminary plat request there are requests for a special use permit, variances, and approval of a comprehensive sign plan. This plat includes two lots, a new lot (Lot 1) at Main Street and 57th Avenue and the existing Holiday Plus Store on Lot 2. The purpose of the plat is to allow the construction of a convenience store with motor fuel dispensing and a car wash on Lot l. Each lot meets the minimum standards of the C-3 zoning district. Mr. Hickok stated that the petitioner, Mr. David Hoeschen, has agreed to move the access drive from its current location to a location that aligns with the proposed driveway for the Steve Linn development on the north side of Main Street. As part of the street improvement plan for 57th Avenue, the access drive for this FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 7 lot will be shared with the larger Holiday site with cross parking and cross access easements. Future access to 57th Avenue will be restricted to the three access drives identified on the 57th Avenue improvement plans. Mr. Hickok stated that staff recommends approval of this preliminary plat. The Planning Commission has concurred subject to six stipulations which he outlined. MOTION by Councilwoman Bolkcom to approve preliminary plat request, PS #98-01, with the following stipulations: (1) subject to approval of Variance Request, VAR #98-03 and approval of Special Use Permit, SP #98-01; (2) cross-parking and driveway easement documents shall be prepared and recorded with the final plat at Anoka County; (3) the petitioner shall dedicate all additional right-of-way necessary to complete the 57th Avenue improvement projects as shown on the City's improvement plan dated February 3, 1998; (4) the petitioner shall agree to restrict access to the three locations shown on the City's plan for 57th Avenue improvements dated February 3, 1998; (5) the petitioner shall pay the required park dedication fee at time of building permit issuance for the stationstore; and (6) the 1994 variance stipulation requiring a clean-up/landscape plan for Lot 2, Block l, Holiday North 2nd Addition, shall be completed, approved by City staff, and plant materials installed prior to issuance of a certificate of occupancy for the stationstore building. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. 10. SPECIAL USE PERMIT, SP #98-01, BY HOLIDAY STATIONSTORES, INC., TO ALLOW A MOTOR VEHICLE FUEL OPERATION AND A MOTOR VEHICLE WASH ESTABLISHMENT TO BE LOCATED IN THE NORTHWEST CORNER OF THE HOLIDAY PLUS SITE, GENERALLY LOCATED AT 242 57TH AVENUE N.E. (WARD 3): Mr. Hickok, Planning Coordinator, stated that this is a request by Mr. Hoeschen for a special use permit to allow both motor fuel operations and a car wash on this Holiday Plus site at 242 57th Avenue. This zoning district, C-3, General Shopping Center, permits these uses with a special use permit. Mr. Hickok reviewed the code requirements for operation of this type of facility. Staff believes this special use permit is appropriate for this location and recommends approval. Mr. Hickok stated that the Planning Commission has concurred with staff's recommendation for approval subject to nine stipulations, which he outlined. MOTION by Councilwoman Bolkcom to grant Special Use Permit, SP #98-01, with the following stipulations: (1) subject to approval of Preliminary Plat Request, PS #98-01 and approval of Variance Request, VAR #98-03; (2) all signs shall be reviewed and approved FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 8 by staff to assure compliance with Chapter 214 of the City Code; (3) the petitioner shall submit a performance bond in the amount of three percent of the construction costs prior to issuance of a building permit; (4) the petitioner shall install underground irrigation for the landscape areas surrounding the stationstore site; (5) the petitioner shall comply with all outdoor storage requirements; (6) the petitioner shall comply with all outdoor sales and storage provisions of Chapter 205 of the City Code; (7) the petitioner shall install all waste trap and filtration devices as required by the Building Code for Car Wash facilities; (8) the petitioner shall install adequate informational signage on-site to assure proper flow of traffic around the building and to assure that cars waiting to be washed do not block access from 57th Avenue N.E.; and (9) the petitioner shall assure that all use of the intercom on this site is for instructional and emergency purposes only. Intercom volume shall be set so intercom messages do not carry beyond stationstore property. Seconded by Councilman Billings. MOTION by Councilman Billings to modify Stipulation No. 9 by deleting the first sentence and in the second sentence to change the word "does" to "do." Seconded by Councilman Barnette. Upon a voice vote, Councilman Billings voted in favor of the motion. Mayor Jorgenson, Councilwoman Bolkcom and Councilman Barnette voted against the motion. Mayor Jorgenson declared the motion failed. Councilman Barnette stated that at some stations there is outdoor display of pop, salt pellets, and wood. If the storage is not permitted at this location it also should apply to existing stores. Mr. Hickok said that if stations have outdoor storage it becomes a code enforcement issue. Mayor Jorgenson stated that in regard to the intercom she understands they will use it to welcome their customers. She received a complaint on one of the other service stations, as they were using their intercom to play music, and the neighbors objected. Mr. Hickok stated that the intercom is quite necessary for emergency or instructional purposes. This stipulation is for the intercom to be used for instructional and emergency purposes and not to play music. Councilman Billings questioned if it was the City's business whether the service station was playing music. The stipulation indicates that the intercom should not be audible off the property that is more important than for what the intercom is being used. Councilwoman Bolkcom stated that some people perceive music as noise. She was in favor of using the intercom for emergencies and instructional purposes. FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 9 Mayor Jorgenson felt that music is a personal preference, but these sounds can travel through a residential neighborhood. She also felt the intercom should be used for instructional and emergency purposes only. Mr. Hickok stated that in terms and welfare of the residents, various opinions as to what is troublesome area to control. of protecting the health, safety if music was allowed there are audible. This then becomes a Councilman Billings stated that the location of this station is in a predominantly industrial/commercial area. However, he felt if this station was located in a residential neighborhood he would have a problem with the architectural features. The massive amounts of white on the roof and canopy are part of the new trademark for Holiday; however, it is very bright. Mr. Dave Hoeschen, representing Holiday Stores, stated that he would agree. Where Holiday stations abut residential neighborhoods they make modifications. This architecture addresses how safe their customers feel and what they are requesting. UPON A VOICE VOTE TAKEN ON THE MAIN MOTION, all voted aye, and Mayor Jorgenson declared the motion carried unanimously. 11. VARIANCE REQUEST, VAR #98-03, BY HOLIDAY STATIONSTORES, INC., TO REDUCE THE FRONT YARD SETRACK FROM 80 FEET TO 66 FEET; TO REDUCE THE SIDE CORNER SETRACK FROM 80 FEET TO 49 FEET; TO REDUCE THE PARKING AREA SETRACK FROM 20 FEET TO 9 FEET ALONG THE ENTIRE LENGTH OF 57TH AVENUE; ALL TO ALLOW THE CONSTRUCTION OF A 3,690 SQUARE FOOT STATIONSTORE, FIVE GAS PUMPS, CAR WASH, AND RECONFIGURATION OF THE PARKING AREA AT THE HOLIDAY PLUS SITE, GENERALLY LOCATED AT 242 57TH AVENUE N.E. (WARD 3): Mr. Hickok, Planning Coordinator, stated that this variance request is to reduce the front yard setback from 80 feet to 66 feet along the 57th Avenue right-of-way, to reduce the side corner setback from 80 feet to 49 feet adjacent to the Main Street right-of-way, and to reduce the front parking setbacks along 57th Avenue from 20 feet to 9 feet along the entire Holiday site (including the main store). Mr. Linn's building (across the street from this site) has a very similar setback. Mr. Hickok stated that as a result of Holiday's design analysis, it was determined that the stationstore should be constructed as close to 57th Avenue as possible. The City has approved similar variance request in the past for the Linn property and for Miller's Funeral Home. Staff recommends approval of these variances with ten stipulations which he outlined. The Appeals Commission has concurred with staff's recommendation. Mr. Hickok stated that in regard to Stipulation No. 7, Holiday has complied and shifted the entire building to the south. FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 10 MOTION by Councilwoman Bolkcom to grant Variance Request, VAR #98-03, with the following stipulations: (1) the enclosure for the compressors, on the east elevation of the building, shall include three (1 foot-6 inch x 1 foot-6 inch height necessary to match the height of the screening fence) brick pilasters with a 4 inch pre- cast concrete cap to match the new fence details that will be placed along 57th Avenue. Also, the screening slats shall be selected in a color that will match the new fence proposed along 57th Avenue NE; (2) subject to approval of PS #98-01 and approval of SP #98-01; (3) landscape plan shall be modified to accommodate the planned streetscape improvements along 57th Avenue NE. A new landscape plan shall be submitted for staff review and approval prior to issuance of the building permit; (4) the canopy signage lights (facing north) shall be turned off by 10:00 p.m. until a new commercial building is constructed on the northwest corner of 57th Avenue and Main Street; (5) all parking islands south of the new structure shall be configured in a manner that will allow a Fall Golden Ash in each (except the island with the tank vents). All vacuum and other additions to the island shall be situated in a manner that will accommodate a tree; (6) the overhead door facing 57th Avenue shall be replaced by a pair of side hinged doors; (7) the 25 foot drive aisle north of the proposed store shall be shifted south 10 feet to accommodate the new 57th Avenue streetscape and plantings; (8) create mock windows of a dimension to match those on the plan submitted on February 18, 1998 and dated February 18 by staff; (9) the 1994 variance stipulation requiring a clean-up/landscape plan for the principal Holiday site shall be completed, approved by City staff, and plant materials installed prior to issuance of a certification of occupancy for the stationstore building; and (10) recognition of a(City required) variance to allow a nine foot parking setback along 57th Avenue. Seconded by Councilman Barnette. Councilman Billings asked if these variances apply to the new site where the stationstore is constructed or the entire Holiday site. Mr. Hickok stated that the two variances for the building setbacks apply to the new site. The petitioner is in control of both of the sites and the parking setback to nine feet is integrated across both the stationstore site and the Holiday Plus site. Councilman Billings stated that this variance request actually involves two parcels of property, the stationstore and the Holiday Plus site. He questioned if all stipulations and setbacks apply to both sites. Mr. Hickok stated that the parking setback applies to all the property along 57th Avenue; however, the other variances are very specific to the stationstore site. The subdivision separates the two pieces of property, and it becomes very clear that the stationstore site is the one being addressed. It is not the intent of staff to have any stipulations, other than the one concerning FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 11 the parking setback, apply to both the stationstore site and Holiday Plus site. Councilman Billings stated that this discussion should be part of the record so it is clear to any future owner as to how these variances apply. He asked if these variances would be recorded at the County against both pieces of property. Mr. Hickok stated that they would be recorded against both parcels. Councilman Billings stated that he understands it is staff's intent to correct a situation that the City and the County are causing by the improvement of 57th Avenue. Mayor Jorgenson questioned the internal traffic patterns. Mr. Hickok stated that each of the access points were designed for two way traffic. The main access drive would be enhanced by having a new drive aisle. The circulation of traffic will not be diminished in the parking lot. Councilman Billings assumed that the south side of the site will be improved so there will not be grass growing out of the cracks in the asphalt. UPON A VOICE VOTE TAKEN ON THE MOTION, all voted aye, and Mayor Jorgenson declared the motion carried unanimously. 12. APPROVE A COMPREHENSIVE SIGN PLAN FOR HOLIDAY COMPANIES, GENERALLY LOCATED AT 250 57TH AVENUE N.E. (WARD 3): Mr. Hickok, Planning Coordinator, stated that the City Code requires that when a complex has three or more tenants a comprehensive sign plan needs to be approved for the development. He submitted a drawing of the proposed sign plan. Gander Mountain is becoming a new element of Holiday Plus and is included on the sign plan. Staff recommends approval of the comprehensive sign plan with the exception of the pylon sign proposed along I-694, as this would exceed the signage allowed. Mr. Hoeschen, representing Holiday Stores, stated he expects that the new tenants will want a pylon sign adjacent to the freeway. MOTION by Councilwoman Bolkcom to approve the comprehensive sign plan for Holiday Companies, with the exception of the free standing pylon sign. Seconded by Councilman Billings. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 12 13. SITE PLAN AND MASTER PLAN APPROVAL AMENDMENT, MPA #98-01, BY MEPC AMERICAN PROPERTIES, INC., TO APPROVE THE SITE PLAN AND REVISED MASTER PLAN TO PERMIT A ONE-STORY, 106,705 SQUARE FOOT FLEX BUILDING FOR HIGH TECHNOLOGY COMPANIES ON A TEN-ACRE SITE AT THE WESTERN END OF THE FRIDLEY EXECUTIVE CENTER PROPERTY, GENERALLY LOCATED AT THE NORTHWEST CORNER OF I-694 AND HIGHWAY 65 (WARD 1) : Ms. Dacy, Community Development Director, stated that there are several items before Council this evening related to the Lake Pointe technology center. These include approval of the site plan and master plan amendment, a preliminary plat request to create a ten acre lot for the proposed development, a special use permit for a nine foot wide parking stall in the redevelopment area, and a special use permit to allow a parking area inside the R-1 zoning line. A video was presented on buildings in Golden Valley and Eden Prairie which are similar to the one proposed in Fridley. Ms. Dacy stated that the exterior of the building would be brick in a sandy rose color with tan accents. The majority or about three- fourths of the buildings will be finished for Class A office space and one-fourth for storage or production. High tech uses are proposed, and the loading areas to the rear are smaller than what would be found at a manufacturing facility. The developer is proposing two wing walls to limit the view of the loading area. Ms. Dacy stated that the property is zoned S-2; however, there is a narrow strip of R-1 zoning that still exists and that contains the buffer area. The site plan is for a 106,705 square foot one-story high tech building on the west ten acres. This would leave room for a multi-story office building or 250,000 square feet of office space in two buildings, each with 125,000 square feet, and a multi- story ramp to serve these two buildings. Ms. Dacy stated that staff requested that the developer provide a drawing on the appearance of the building from I-694. She presented the computer graphic from the elevation at the interchange of Highway 65 and explained that the metal roof screen will adequately screen the HVAC equipment. A three foot arbor vitae hedge was proposed as part of the landscaping plan in the buffer area along the north edge of the development. There would also be a retention pond in the southwest portion of the site which meets all the storm requirements for this site of development. The required parking requirements have also been met. Ms. Dacy stated that the Planning Commission reviewed these requests on February 18 and recommended approval of all the items. The Housing and Redevelopment Authority (HRA) considered the site plan and amendment to the Master Plan on February 19. The HRA recommended approval of the site plan and amendment to the Master Plan; however, there was discussion on the roof plan. Staff recommended additional screening on the roof, but the HRA suggested FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 13 that this not be included, as the requirement was unrealistic and not practical. Councilman Billings asked if the ponding on the west side is for this ten acres only or for the entire parcel. Ms. Dacy stated that the ponding is for this ten acres only. There will be additional ponding needed as the site is developed. Councilman Billings stated that this building would cover about half the acreage of the entire site. The original proposal was to have multi-story buildings. He asked for an explanation of this change. Mr. Burns, City Manager, stated that in January, the HRA recognized that the City has worked, without success, to attract multi-story corporate office space for this site. After reviewing the economics of corporate office space versus tech flex, it was determined, for at least part of the site, that the City would head in the direction of tech flex. It was felt that the City wanted to recoup some of the investment before the tax increment district expired. Tax increment allows the City to use the increment generated from improvements on the property to fund allowable improvements on the site which makes it easier for a developer to develop the site. Councilman Billings asked how much the HRA has invested in this site and what increment will be generated. Mr. Burns stated that about $7.5 million has been invested in the site. Ms. Dacy stated that the estimated annual taxes are approximately $1,462,000 and will generate about $5.1 million in tax increment, if this building is constructed this year and assuming construction of Phase II of the development. Councilman Billings stated that at the July meeting of the HRA it was clear that this building would take up over half the site. Ms. Dacy stated that the lot area was not discussed, but the developer has submitted site plans. The option discussed in July was two, 50,000 square foot buildings which may have encompassed more area than this proposal. Councilman Billings said he asked discussion about constructing one at a later date. He stated discussion to this effect. at the July meeting if there was building and the second building that as he recalls, there was Ms. Dacy stated that she did not specifically recall this discussion, but she has seen several site plans. The developer suggested starting with this one-story concept of a mixed use for tech flex which could be used by one company. In the Phase II FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 14 development, a company could then have their corporate offices constructed. Councilman Billings asked how this proposal went from two to one building. Ms. Dacy stated that the developer indicated they felt 100,000 square feet was the right size for the market, and this design seemed to work better for leasing the site. This building would provide for four finished sides and would be screened on three of the sides with a saw tooth design on the corners. Councilman Billings stated that, at this point, the HRA felt the City had waited long enough for multi-story and were not going to get four multi-story buildings on that site. Ms. Dacy stated that the concern was this type of building offered a Class A environment and would not be inconsistent with the multi- story phase. The market is right for these types of companies. Councilman Billings asked how many different organizations have been approached by the HRA and the developer to construct projects on this site before going with this proposal. Ms. Dacy stated that in the mid-1980's the HRA executed a development contract with Woodbridge. Unfortunately, development did not take place due to the economic conditions. Councilman Billings stated that several years ago MEPC came in with their own master plan for three buildings which was a change in the master plan from 1987. He asked how many different companies MEPC has contacted and why they feel they are unable to accomplish the mission they set out to do several years ago. Ms. Dacy stated that MEPC did a lot of work and submitted at least seven proposals to major companies. MEPC also made other contacts regarding the commercial site and potential hotel and bank site. There were a number of issues, one being that this site is away from other similar developments. There was also a concern regarding the location. Chief executive officers had a preference for locations to the west or south. She felt it was hard for MEPC to initially overcome those type of images. The one asset the site has is excellent access and visibility. Mr. Burns stated that there are a greater number of projects in the tech flex category than in the corporate area. There are not that many corporate office projects. Another issue was the economics. This kind of project is much more favorable for the City and HRA than the multi-story office building. The developer was willing to build speculatively for this tech flex space, but he was not willing to gamble on speculative space for a corporate office development. FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 15 Councilwoman Bolkcom asked if the lack of access limited corporations from building on this site. Mr. Burns stated he felt the issues outlined by Ms. Dacy were more prevalent than the access. There is not a lot of executive housing in the immediate area to compliment the corporate offices. Ms. Dacy stated that the tech flex building can house companies that are expanding and growing to the point that a multi-story office building would not be out of the question for corporate headquarters. The City Council and the HRA control the master plan, the amendment, and what would occur on the rest of the site. Ms. Dacy stated that to get back to the original vision for this site, it was contemplated that there would be two buildings and the parking ramps. The HRA would have had to use the tax increment to construct the parking ramps. Mayor Jorgenson asked how much increment from the remaining thirteen years of the district would have gone toward constructing the parking ramps. Ms. Dacy stated that the cost for constructing the ramps would be $15 million. In the original concept for the multi-story buildings and parking ramps, there was a net cost of $3.4 million which would result in a negative balance. In this proposal, there would be a positive balance of $2.4 million. Mayor Jorgenson stated that the City would be money ahead by going to the single-story building and not constructing parking ramps. Mr. Burns stated that with the original proposal, the City would have to contribute the parking ramps and the land. In this proposal there would be revenue from the land and no cost for the parking ramps. Councilman Billings stated that he has received telephone calls regarding traffic in the adjacent residential neighborhoods. He asked how many entrances and exits there would be to this site. Ms . Dacy stated that there would be two, one at Lake Pointe Drive and Highway 65 and the other on the west end at Seventh Street and Lake Pointe Drive. There would be less traffic with this proposal, as there would be less space and not as many employees. Councilman Billings stated that if traffic was backed up on Highway 65, probably the only street that would be affected would be West Moore Lake Drive which people may use as an alternate. Seventh Street has always been viewed as a minor entrance and exit to this site. If an assessment was made as to whether this building will have a positive or negative impact on traffic, he assumed it would be positive rather than negative. FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 16 Mr. Dave Jellison, MEPC, stated that the question has been raised as to why they are constructing one building versus two. He felt that a 100,000 square foot building would be more marketable versus a 50,000 square foot building. The buildings they have marketed in other cities are about 90,000 square feet in size. In the 1980's companies wanted to update their image. Now they want to keep their costs down. There has not been a multi-level parking ramp built in the cities in the 1990's. Mr. Jellison stated that road construction will be proceeding, and improvements will be not be completed until 1999. These things are a concern, and they will have to work at ways of getting people into this site. He felt they have some ideas that will not disrupt the neighborhoods and allow access. Councilwoman Bolkcom stated that she understood the building would be constructed, but until there is a tenant, the inside would not be finished. She asked if construction would begin before the intersection improvements are completed. Mr. Jellison stated that they would like to begin construction this summer. They want to be sure they can get traffic to the site. Hopefully, they will have tenants the first part of 1999. Councilwoman Bolkcom asked if their sites in other communities have residential properties in close proximity. Mr. Jellison stated that in Golden Valley to the north of their site, there are some very expensive condominiums. He felt that most of the people are happy with their project. These residents also had the same concerns as Fridley residents about the traffic. Residents on the north of the site will not have to look at a parking ramp, as there will be landscaping and a service parking lot. Mayor Jorgenson stated that she has heard a lot of positive comments about this plan. Several people made reference to the larger corporate office users in the City. She asked if any of the corporations in Fridley could build on this site if they wanted to. Ms. Dacy stated it is possible that someone could build either a corporate office or manufacturing facility, depending if Council approved it. Mayor Jorgenson stated that several residents to the north are concerned about manufacturing on this site. The type of company locating in a tech flex building would be a design and engineering company versus a smaller company that will have a full fledged manufacturing facility. Mr. Jellison stated that the buildings would not be designed with 24-foot high ceilings which are required for manufacturing. The FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 17 operations would be very clean with companies probably involved in technological research. Councilman Billings stated that he wanted to make sure that the taxes are paid on the building even though the space may not be leased. He asked if there are other tech flex type buildings in Fridley. Mr. Jellison stated that the East River Road Business Center is an example of a tech flex building. Others are located in the northern portion of the City. Councilman Billings stated that there are vacancies in the East River Road Business Center, as well as other similar facilities. He questioned how companies can be attracted to this facility. Mr. Jellison stated that he felt the design and color of the buildings, with the glass, is excellent and will attract possible tenants. There would be sufficient parking available to expand office space. The site would be visible and the type of user they would attract is a company that wants a good working atmosphere for their employees. Councilman Billings asked Mr. Jellison if he felt that once this single story building is constructed that it would set a precedent and the city will end up with two single story buildings on the site. Mr. Jellison stated that he does not believe this building will detract from an office tower. He felt the City had a certain clientele for each of the prototypes, and this building would be compatible with corporate offices. In a multi-use park, he did not think there would be a problem with either one. Councilman Billings asked if there are any assurances that there would not be a service door or access point to the building. Mr. Jellison stated that there is the possibility of having a service door at some time in the future. Councilman Billings stated that he would like to discourage an access point so that there is a solid wall. Councilman Billings stated that buildings are often appraised based on the cash flow analysis. He asked if there is anything in the development agreement that locks the City into a value on this building. He felt that if it is vacant, the value should not go down. Mr. Jellison stated that they are agreeing to a minimum value in the development agreement. FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 18 Councilwoman Bolkcom asked if American Properties will be sold. Mr. Jellison stated that the entire American Properties is for sale. They have had no shortage of buyers, but he could not be sure what would happen. Some of the best corporations in America are considering purchasing the company. Councilwoman Bolkcom asked if this would have a negative impact on the project. Mr. Jellison stated that this package would be put together and taken to the Board to request approval to proceed with the project. Councilman Barnette stated that this plan is for the one-story tech flex building. In Phase II, hopefully, there would be some office buildings and, in Phase III there may be a hotel and restaurant. He asked if the site would support a second one-story building excluding the idea of a hotel and restaurant. Mr. Jellison stated that if the City decided to proceed with two the high tech buildings and attracted clientele, it would be possible to proceed with a hotel and restaurant on the site. He has been dealing with one major user for this site, and they have had specific requests regarding the hotel. Once this project is under way and finalized, if this user wants to proceed with the site, he felt something could be finalized for a hotel and possibly one or two restaurants. He would not exclude this idea. Mr. William Nee, 219 Logan Parkway, stated that when he read the article in Focus News, he was very upset. He felt the City was being well-served by this Council, staff, the HRA, as well as all of the citizen groups. It is with reluctance that he decided he should speak. He felt the community would be best served if the City stopped and looked at what they were trying to accomplish on this parcel and what they will be actually doing. He always felt there was room for a mix on this site that made sense. Mr. Nee stated that when he moved to Fridley, Jim Klobuchar made the City synonymous with dog patch, and years were spent proving that to be a lie. This is the last piece of land where Fridley can make a statement to the metropolitan area about who we are, what we are about, and what we stand for. He felt it deserved a new look to make the people of Fridley proud. He was not entirely sure that this tech flex building would be out of the question. He felt it would use too much land. He recalled that Ms. Dacy said that 75 percent was office. This means it could be four or five stories high and one-quarter of the footprint, with manufacturing on the first floor. Ms. Dacy stated that the building could be four stories tall. The issue is that one-story provides tech flex space which is popular in the market for the technological companies. These are the FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 19 companies which are expanding. Some of these companies are moving out of the taller office buildings. From the site plan perspective, if it is one or four stories, the site can accommodate it. The City is trying to attract industry but still not detract from corporate office space. Mr. Jellison stated that companies do not want four or five story buildings with manufacturing on the first floor. They want 50,000 to 60,000 square feet of floor space without any elevation. If you do not have elevators or a lot of common areas, it keeps costs down. Councilman Barnette stated that he felt, with Bill Nee being here, it is like E. F. Hutton, when he talks everyone listens . Bill Nee brought the pictures that Woodbridge had given Council and gave the drawings to everyone. This was the vision the City had for this property. It would be great to have four or five multi-story buildings on this site. However, in listening to all the people the HRA, the Planning Commission, and staff, things have changed. This proposal is not necessarily what he would like for this site, but economics drive business. Apparently, the economic market is for the single story tech flex building. The City has been sitting on the property for a long time already and probably should sit on it longer. However, in looking at the HRA's decision, there was total approval. Councilman Barnette stated that he truly appreciated Bill Nee coming here to voice his concerns. Mr. Nee stated that the remark in Focus News bothers him where it was stated that, almost in despair, this may be the best we can do. He understands the inclination and the desire to get a building on the property, but there are some things the people of Fridley expect, such as a good hotel and several enterprises that create excitement and polish the City's image. He felt there was an easy market to do the kind of selling that MEPC does. He did not know if anyone else would be interested, but he thought United was the best of those interested in marketing the property, as they are sales people. He is not convinced that MEPC are sales people. He felt it was worth it to stop and take another look and request the developer to try to get something that works for the people of Fridley, as well as for their firm and some of the firms the City hopes to have participate in the community. He asked that these requests be denied and that Mr. Jellison go back to the drawing board to see if he can come closer to helping the City realize their goals. Mayor Jorgenson thanked Mr. Nee for coming to speak to the City Council. Councilwoman Bolkcom asked if there is a time frame for Council to take action. FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 20 Ms. Dacy stated that the sixty-day action period will expire March 17. MOTION by Councilman Billings t the Planning Commission and Hou approve amendment, MPA #98-01, the following stipulations: shall be submitted and approvec of the property; (2) all uses = the following list of permi associated with corporate/Clas: high technology uses, hot banks/financial institutions, C Section 205.03.59 of the zoning uses as specifically approved individual building after const to those uses identified in review and approve each use architectural plans of each bui � concur with the recommendation of >ing and Redevelopment Authority and to the 1996 Master Plan subject to (1) appropriate plat applications prior to each phase of development n the development shall comply with =ted uses: office uses typically A office developments, office and el and conference facilities, lass III restaurants as defined in code, daycare facilities; and other by the City. Uses allowed in each ruction will be the same or similar =his application. The City shall prior to occupancy; (3) detailed ldina shall be submitted durina the plat application process; or if a plat is not required, plans shall be submitted, reviewed, and approved by the City prior to issuance of a building permit. The type of materials used on the exterior walls shall be approved by the City; (4) a comprehensive signage plan shall be reviewed and approved by the City Council prior to issuance of the first building permit based on the plan dated March 29, 1996 and addressing the following issues: (A) wall signs (building identification and tenant signage) shall meet the wall sign requirement of the sign code; (B) no free-standing pylon signs are permitted; (C) height, width, illumination and type of all signs shall be clearly identified; (D) two free-standing project identifier (D) signs are permitted, the size and height to be approved by the city Council; (E) all free-standing signs shall be set back ten feet from property lines; and (F) the petitioner shall receive a sign permit prior to installation of each sign; (5) the petitioner shall work with the City in preparing transportation demand strategies to promote ride-sharing and transit use to the property; (6) twelve to fifteen foot light standards shall be installed along Bridgewater Drive adjacent to the residential area. Sodium high pressure lights shall be used for the parking lot lights and street lights; (7) appropriate permits from the Rice Creek Watershed District, Six Cities Watershed Management Organization and the Minnesota Pollution Control Agency for storm water management and grading shall be obtained prior to the issuance of a building permit. Detailed engineering plans and calculations shall be submitted in conjunction with plat applications and building permit applications for review and approval by the City; (8) when appropriate, MEPC shall accept the transfer of the Indirect Source Permit from the HRA; (9) detailed landscaping plans shall be submitted in conjunction with plat and building permit application. Ten to twelve foot evergreens shall be installed along the north wall of the proposed parking ramp. The detailed landscaping shall be based on the concept plan dated FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 21 March 29, 1996. An irrigation plan shall also be submitted at the time of building permit issuance; and (10) park fees shall be paid prior to initiation of construction of the first development on the site. Easements shall be dedicated at time of plat approval over the existing bikeway/walkway areas. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. MOTION by Councilman Billings to concur with the recommendation of the Planning Commission and Housing and Redevelopment Authority and approve the site plan for the Lake Pointe Technology Center with the following stipulations: (1) the proposed colors of the exterior materials shall be approved by the Planning Commission, HRA, and City Council; (2) the plat and special use permit requests shall be approved; (3) the petitioner shall comply with the requirements of the HRA's development contract; (4) the 33 existing perimeter trees shall be protected during construction. The petitioner shall transplant as many trees as possible from the interior of the site to other areas on or off site as approved by staff; (5) the petitioner shall construct metal panel rooftop screen as indicated on the plans dated January 16, 1998. The petitioner shall also incorporate additional screening (vegetation or other materials) on the roof of the building if required by the City as part of the site plan review for the multi-story office development; (6) the sign plan dated January 16, 1998 shall be amended to replace the wall panel signs with a plan to provide a sign with individual letters; and (7) the petitioner shall comply with the Engineering Department requirements as stated in the memo dated January 26, 1998. Seconded by Councilman Barnette. MOTION by Councilman Billings to delete the second sentence of Stipulation No. 5. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. UPON A VOICE VOTE TAKEN ON THE MAIN MOTION, all voted aye, and Mayor Jorgenson declared the motion carried unanimously. 14. PRELIMINARY PLAT REQUEST, P.S. #98-02, BY MEPC AMERICAN PROPERTIES, INC., TO CREATE A TEN-ACRE LOT FOR A 106,705 SQUARE FOOT, ONE-STORY FLEX BUILDING AND TO CREATE OUTLOTS FOR FUTURE DEVELOPMENT AND TO DEDICATE PUBLIC RIGHTS-OF-WAY AT THE FRIDLEY EXECUTIVE CENTER PROPERTY, GENERALLY LOCATED AT THE NORTHWEST CORNER OF I-694 AND HIGHWAY 65 (WARD 1): MOTION by Councilman Billings to concur with the recommendation of the Planning Commission and approve preliminary plat request, P.S. #98-02, with the following stipulations: (1) the petitioner shall execute the City Storm water Pond Maintenance Agreement and record it along with the filing of the final plat at Anoka County; FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 22 (2) the petitioner shall prepare and dedicate final bikeway/walkway easements in Lot 1 along Lake Pointe Drive and record the easements, along with filing the plat at Anoka County; (3) the petitioner shall pay the park dedication fees of $36,137.81 at time of building permit issuance for the Lake Pointe Technology Center; and (4) the Special Use Permit request and the site plan and master plan requests shall be approved. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. 15. SPECIAL USE PERMIT REQUEST, SP #98-02, BY MEPC AMERICAN PROPERTIES, INC., TO PERMIT NINE-FOOT WIDE PARKING SPACES: AND SPECIAL USE PERMIT REQUEST, SP #98-03, BY MEPC AMERICAN PROPERTIES, INC., TO PERMIT A PORTION OF THE DRIVE AISLE OF THE PARKING AREA WITHIN AN R-1 ZONING DISTRICT AT THE FRIDLEY EXECUTIVE CENTER PROPERTY, GENERALLY LOCATED AT THE NORTHWEST CORNER OF I-694 AND HIGHWAY 65 (WARD 1): MOTION by Councilman Billings to concur with the recommendation of the Planning Commission and grant Special Use Permit Request, SP #98-02. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. MOTION by Councilman Billings to concur with the recommendation of the Planning Commission and grant Special Use Permit Request, SP #98-03. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. 1. RESOLUTION NO. 15-1998 AUTHORIZING CITY MANAGER, WILLIAM W. BURNS, TO SIGN THE GRANT AGREEMENT END GRANT ("THE GRANT CONTRACT") FOR THE YOUTH INITIATIVE GRANT AS REPRESENTATIVE OF THE CITY OF FRIDLEY: Councilwoman Bolkcom stated that she was concerned that the City allow the youth to do some of the work. She wanted to make sure that the City listens to their input, right down to the interior decorating. She felt the architect was more interested in doing the project than having the youth participate. Mayor Jorgenson stated that she concurs with Councilwoman Bolkcom's comments. Mr. Burns, City Manager, stated that one of the goals is youth involvement. Staff is still investigating the possibility of letting the youth do the mural and some cabinet work. Jack Kirk, Recreation and Natural Resources Director, is contacting people. He felt the City was headed in that direction. FRIDLEY CITY COUNCIL MEETING OF MARCH 2, 1998 PAGE 23 MOTION by Councilwoman Bolkcom to adopt Resolution No. 15-1998. Seconded by Councilman Barnette. Upon a voice vote, all voting aye, Mayor Jorgenson declared the motion carried unanimously. 16. INFORMAL STATUS REPORTS: Mr. Burns, City Manager, stated that Jack Kirk was to present an update on the Community Education Center after this regular meeting. He also hoped to discuss the Council/Commissions survey. He stated that Mr. Flora was informed today that the County wants to remove parking on Old Central Avenue. Mr. Flora stated that the County wants to remove parking on the first 200 meters on Old Central Avenue that is involved with the Lake Pointe improvement project. They would like a letter from the City Council indicating their support. Mayor Jorgenson stated that this improvement project will not move forward as planned. She asked how much work would be done in 1998. Mr. Flora stated that what will probably happen this year is removal of the median and bypass paving, as well as starting the intersection work at Highway 65 and Lake Pointe Drive. He thought the I-694 ramps would be done in 1999. There are a lot of agencies involved in this project. They also need to meet both Federal and State requirements. It was the consensus of the City Council that this issue be placed on the agenda for March 16 and that the residents affected be notified. Mayor Jorgenson reminded everyone of the caucuses on Tuesday, March 3. If there are any questions they can call the City Clerk at 572-3523. ADJOURNMENT : MOTION by Councilman Barnette to adjourn the meeting. Councilwoman Bolkcom. Upon a voice vote, all votin Jorgenson declared the motion carried unanimously and Meeting of the Fridley City Council of March 2, 1998 11:10 p.m. Respectfully submitted, Seconded by g aye, Mayor the Regular adjourned at Carole Haddad Nancy J. Jorgenson Secretary to the City Council Mayor