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06/13/2005 - 00026823CITY COUNCIL MEETING CITY OF FRIDLEY J U N E 13, 2005 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:30 p.m. PLEDGE OF ALLEGIANCE ROLL CALL: MEMBERS PRESENT: OTHERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Billings Councilmember Wolfe Councilmember Bolkcom William Burns, City Manager Fritz Knaak, City Attorney Don Abbott, Public Safety Director Richard Pribyl, Finance Director Jon Haukaas, Public Works Director Julie Jones, Planning Coordinator Rebecca Brazys, Recording Secretary PRESENTATION OF VALUES FIRST 2005 COMMUNITY RECOGNITION AWARDS: Councilmember Barnette presented the following recognition awards: Individual: Gretchen Hanson Business: Joe DiMaggio's Community Organization: Banfill-Locke Center for the Arts High School Sportsmanship: Amy Lindstrom and Stashie Mack APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: Approval of City Council minutes of May 23, 2005. APPROVED. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 2 of 38 NEW BUSINESS: 1. Extension of Preliminary Plat Request, PS #03-18, by Town Center Development, Generally Located at 1282 Mississippi Street and 6490 Central Avenue NE. Dr. Burns, City Manager, explained that since the developer, Richard Whinnery of Town Center Development, has been unable to close on these properties due to legal challenges, he is asking for a six-month extension of the preliminary plat. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 2. Approve Metropolitan Council Section 8 Housing Assistance Program Contract for Administrative Services between the City of Fridley and the Metropolitan Council. Dr. Burns, City Manager, stated that the City has been providing Section 8 administrative services since 1976. Due to Federal budget cutbacks in this program, the Metro HRA lost some of their funding and is pulling back services that they once contracted out. Since Fridley has taken on a number of extra services in past years, the City is facing some cutbacks and other changes in its contract with Metro HRA. These include screening of waiting list selections and the screening of applicants who are moving to Fridley from other communities. We expect to lose $2,000 to $3,000. The City is also losing the administration of the Family Self-Sufficiency Program, a program that creates an incentive for Section 8 recipients who become employed full-time over a five-year period. The City has 10 FSS clients at $26.16 per month administration fee resulting in a loss of $261.60 per month. These take-aways have been replaced, at least partially, by new funding for conducting informal hearings for those who due to their abuse of the system have lost their Section 8 funding. The City also expects to potentially benefit from the removal of the $10,000 cap that Metro HRA has imposed on the City's use of surplus money. This will enable the City to use any administrative reserve funding from Metro HRA that it has not used to pay for its cost of administration. Since there have been some program reductions, the City does expect that any amounts over $10,000 will be minimal. City staff estimates the total revenue from this contract for 2005 will be $10,080. Staff recommends Council's approval. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 3. Approve the Anoka County Community Development Block Grant Program Agreement between the City of Fridley and the County of Anoka. Dr. Burns, City Manager, explained that the contract with Anoka County and the various exhibits attached to it provide the terms and conditions that govern the City's use of FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 3 of 38 $164,876 in CDBG funding. The money will be used for demolition and removal of blighted properties in the Gateway West project area. Staff recommends Council's approval. APPROVED. 4. Resolution Calling for a Public Hearing on Modifications to the Redevelopment Plan for Redevelopment Project No. 1 and the Tax Increment Financing Plans for Tax Increment Financing Districts No. 1-3, 6-7 and 9-17, Creation of Tax Increment Financing District No. 18 and Approval and Adoption of a Tax Increment Financing Plan Relating Thereto. Dr. Burns, City Manager, stated staff recommends Council's adoption of this resolution to set a public hearing for August 8 on this matter. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 5. Resolution Authorizing Final Changes in Appropriations for the General Fund, Special Revenue Funds and Capital Improvement Fund for the Year Ended 2004. Dr. Burns, City Manager, stated this re-appropriation moves money from line items where the budget allocation was not used to other line items where it was exceeded. It also seeks to align revenues for the various funds with expenditures. For the General Fund, the City used $58,104 of the $100,000 anticipated for unexpected expenditures. Staff recommends Council's approval. ADOPTED RESOLUTION NO. 2005-29. 6. Motion Withholding Sale of Tax ForFeit Land Identified in Anoka County PIN No. 24-30-24-31-0111 and Directing Staff to Initiate a Request for an Application to Acquire a Tax ForFeit Parcel for Right-of-Way Purposes (Generally Located at the Corner of Regis Lane and Fillmore Street) (Ward 2). Dr. Burns, City Manager, stated the subject parcel is under a street at the intersection of Regis Lane and Fillmore Street. The action tonight requests that Anoka County withhold the parcel from their sale of tax forfeit properties. Staff recommends Council's approval. APPROVED. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 4 of 38 7. Appointments — City Employees. Dr. Burns, City Manager, stated staff recommends the appointment of Steve Monsrud to the Sergeant's position recently vacated by Michelle Gease. Steve has a Bachelor of Science degree in Law Enforcement from Mankato State University. Steve has worked as an intern, a CSO and a police officer for the Fridley Police Department, and most recently, finished first in a multi-faceted testing process for this position. Staff recommends Council's approval. Dr. Burns stated staff is also recommending the appointment of Robert Larson to the police officer vacancy. Robert has a Bachelor of Science degree in Law Enforcement from Minnesota State University in Mankato. He has been a part-time police officer for the Hudson, Wisconsin, Police Department since September 2004. He has also worked for the Hudson Parks Department and as a bouncer at Dick's Bar and Grill in Hudson. He has been working as an officer recruit for the Fridley Police Department since May. Staff recommends Council's approval. APPROVED THE APPOINTMENTS OF STEVE MONSRUD AND ROBERT LARSON. 8. Claims (121737 — 122038). APPROVED. 9. Licenses. APPROVED. 10. Estimates. APPROVED. MOTION by Councilmember Barnette, seconded by Councilmember Wolfe, to approve the consent agenda with the removal of Items 1, 2 and 4. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom, seconded by Councilmember Barnette, to adopt the agenda with the addition of Items 1, 2 and 4. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 5 of 38 OPEN FORUM: Consideration of items not on agenda (15 minutes) Mr. Pete Eisenzimmer, 6535 Oakley Drive, stated the City has spent over $270,000 repairing storm sewer problems at the Springbrook Nature Center. He's had a drainage problem in his yard for over 15 years and has not received any assistance from the City to resolve this problem. Councilmember Bolkcom explained that a majority of the money spent at Springbrook was from grants from the Minnesota Pollution Control Agency. The Springbrook improvements were made not only to control drainage but to improve the quality of water that leaves the Springbrook property and ends up in the Mississippi River. PUBLIC HEARING: 11. Rezoning Request, ZOA #05-02, by Family Lifestyle Development Corporation, to Rezone Property from C-1, Local Business, C-2, General Business, and R-1, Residential, to S-2, Redevelopment District, Generally Located at 1314 and 1340 Mississippi Street and 6421, 6441, and 6461 Central Avenue NE (Ward 2). MOTION by Councilmember Wolfe, seconded by Councilmember Barnette, to open the public hearing and waive the reading. UPON A UNANIMOUS VOICE VOTE, MAYOR LUND DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING OPENED AT 7:55 PM. Ms. Jones, Planning Coordinator, stated the petitioner, John DeMello, is requesting a rezoning of five lots to S-2. These lots are located at 1314 and 1340 Mississippi Street and 6421, 6441, and 6461 Central Avenue. The petitioner is also requesting approval of a preliminary plat for the same property to allow construction of an Italian Villa style mixed use development. There will be 10,492 square feet of retail space on the lower level at the corner of Mississippi and Old Central, and 70 senior condominium units in the bulk of the development. The 1, 2 and 3 bedroom condominium units will be owner- occupied and have underground parking. Access to the complex would be directly across from the anticipated Town Center development on Central and Mississippi. The petitioner submitted a different proposal for a larger development in 2004 and that was denied. The 2004 denial revolved around concerns about density, traffic on 64tn Avenue, limited snow storage area, and landscaping opportunities. Ms. Jones explained the current proposal differs from the 2004 submission in that there are not two separate parcels; the retail and housing are in the same building on the current plan. Also this proposal does not include the three properties on 64t" Avenue, contains less retail space, is three stories high rather than four, and has 20 less condominium units. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 6 of 38 Ms. Jones stated there is currently a mixture of zoning classifications on this site, C-1, C-2 and R-1. The properties at 6441 and 6421 Central Avenue have split zoning with C-1 along Old Central and R-1 on the east portion of the property. The rezoning to S-2 makes it possible to have a mixed use development with retail and housing combined in one development. The S-2 zoning requires the site to have a Master Plan approved by the City. The site plan becomes the Master Plan and any modifications to the site plan following Council approval must be brought back to Council for review. The HRA must also review the redevelopment Master Plan, which they did at their June 2 meeting. Ms. Jones said that In relation to the City's Comprehensive Plan, such a rezoning needs to be consistent. The proposed retail/housing complex does meet several objectives of the Comprehensive Plan: • Provides more efficient land use. • Provides an opportunity for senior housing. • Provides added tax base and new jobs. Ms. Jones further stated this rezoning helps achieve the Comprehensive Plan's goals for this corner. Ms. Jones said petitioner had a housing market study done in 2003 and then updated in 2004 and 2005. This study indicated that senior housing was the best market for this site and that a market exists for 70 units, even with the Town Center development proposed for the opposite corner. Updated figures indicate the retail prices for the condominium units should range from $156,000 to $279,000, depending upon the size of the unit. The plat analysis reveals that the plat would consolidate five parcels into one. Although the petitioner is requesting S-2 zoning, the site will be planned according to C-2, General Business, and R-3, General Multiple Unit Housing regulations. The 10,492 square foot retail area meets speculative parking requirements, if proof of parking is included. There will be 46 stalls provided (52 are required) plus proof of parking for 8 additional stalls. The retail parking will not meet the setback requirement due to the County's request for additional right-of-way. The lot coverage for this development is at 28% which is below the code limit of 30%. The housing portion of this plat is 120,199 square feet and there will be three levels. The 70 condominium units would require a total of 129 market rate parking spaces or 70 spaces for assisted living facilities for the elderly. The petitioner is proposing 122 spaces with 110 of those spaces provided in underground parking. Staff is comfortable that they are meeting the parking requirements. The potential County right-of-way acquisition is what is creating problems with the parking setback requirements but the building setbacks are being met. Ms. Jones stated the landscape plan has been revised since the Planning Commission hearing on this proposal. The petitioner's landscape plan now provides 152 of the160 trees required. Staff has decided to set a policy where they would provide a 15% credit for developments utilizing rain garden areas in lieu of trees. Petitioner would get credit for 10 trees in exchange for the rain garden areas they have proposed. This proposal FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 7 of 38 would then meet the landscape requirements. The change from the Planning Commission hearing is that petitioner is adding a landscape buffer in lieu of fencing on the south side of the property. Ms. Jones said the 2001 City Comprehensive Plan reports that the Old Central and Mississippi intersection is carrying 57% of the traffic for which it was designed. The petitioner hired TDI to perform a traffic analysis in 2004. This was recently updated and TDI found that a traffic signal is not warranted at the intersection either pre or post development. This includes the impact of the development proposed for across the street. TDI continues to report that the existing roadway network will accommodate this development. Ms. Jones explained that the petitioner is working with the City's engineering staff and the Rice Creek Watershed District to refine necessary plans and obtain all necessary permits for storm water on this site. The major ponding and drainage concerns have all been met. The current proposal does not include the three lots on 64t" Avenue where there had been drainage concerns in the 2004 proposal. Ms. Jones said staff has received some calls from the public regarding this proposal. The petitioner held two neighborhood meetings which staff did not attend. Several residents spoke at the June 1 Planning Commission meeting. Their comments were mostly related to a disagreement with the Comprehensive Plan, traffic concerns, and the S-2 zoning. At the Planning Commission hearing, the landscape plan was short 69 trees. A subsequent discussion regarding the fencing requirement in Stipulation 15 resulted in a proposed change to the landscape plan. The petitioner feels there is a movement toward less fencing and more open area so they are proposing to make up some of the tree shortage and provide screening by providing landscaping rather than fencing. The Planning Commission recommended approval of ZOA #05-02 and PS #05-02 with the stipulations presented by staff. Ms. Jones stated staff concurs with the Planning Commission's recommendation to approve ZOA #05-02, as the proposed rezoning is consistent with the Comprehensive Plan and it will provide additional senior housing, retail opportunities and job opportunities. Staff also concurs with the Planning Commission regarding approval of PS #05-02 with the following stipulations: 1) Property to be developed in accordance with the Master Plan as shown on the site plan dated June 8, 2005. 2) Building elevations shall be constructed in accordance with architectural plan A7 and A8, titled Exterior Elevations, revised 5/19/05 and architectural plan A3, titled Building Plan Ground Level, dated 4/29/05. 3) Petitioner to obtain all necessary permits prior to construction. 4) Petitioner to meet the applicable fire code requirements in the International Fire Code. 5) Petitioner to meet all building and ADA requirements. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 8 of 38 6) Demolition permits shall be obtained for removal of the buildings at 1314 and 1340 Mississippi Street and 6421 Central. 7) Petitioner to provide revised Certificate of Exemption for wetland and to meet the Rice Creek Watershed District's regulations prior to issuance of a building permit. 8) No business signs shall be located within the County right-of-way. Any planning within the right-of-way to be approved by the County prior to planting. 9) Petitioner to obtain a permit from Anoka County for any work done within the County right-of-way. (A letter from Anoka County was presented to the Council this evening in which they are requesting a right turn-in and right turn- out only from this site onto Old Central.) 10) Petitioner to submit revised storm water management plans and calculations for approval by the City Engineering staff. 11) Storm pond maintenance agreement must be filed prior to issuance of building permit. 12) Petitioner shall obtain required NPDES permit and Rice Creek Watershed District permits. 13) City Engineering staff to review and approve grading and drainage plan prior to issuance of building permits. 14) Final landscape plan to be reviewed and approved by City Staff prior to the City Council public hearing regarding the rezoning on June 13, 2005. 15) Petitioner shall install a 7' high screening fence or planting screening along the east and south property lines, according to Section 205.14.6.G91) of the Fridley Zoning Code. 16) Petitioner to pay required Park Dedication fee of $3,287.25 (142,924 square feet of land times .023 per square foot). 17) Petitioner to provide City with a copy of the building's association documents prior to issuance of a building permit. 18) Building to be restricted to seniors and policies to do such shall be outlined in association documents and filed with the County with the final plat. 19) Provide proof that any existing wells or individual sewage treatment systems located on the site are properly capped or removed. 20) Property owner of record at time of building permit application to pay all water and sewer connection fees prior to issuance of a building permit. 21) The petitioner shall be responsible for the cost of any traffic improvements necessary to accommodate the traffic generated by the development, including signalization or other improvements, if determined necessary by Anoka County. 22) A development agreement outlining the developer's obligation to install utilities, etc., will be prepared by the City and shall be signed by the petitioner prior to final plat approval. 23) The petitioner shall provide walkway access from the site for pedestrian connections at the north and west sides of the property. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 9 of 38 Councilmember Wolfe questioned if the right turn-in and turn-out requirement will result in a lot of U-turns. Mr. Haukaas, Public Works Director, explained that entry into the site from southbound traffic would best be accomplished by turning east on Mississippi and then entering this site from that location. Anoka County is trying to eliminate a lot of left turn movements with this requirement and those left turn movements cause more confusion and accidents than the right turn-in. Councilmember Wolfe asked how many rental properties there would be in the residential building. Ms. Jones responded that it is her understanding the entire development is proposed to be owner-occupied. Councilmember Barnette stated some of the calls he received expressed concern over the number of rental units. He asked what assurance the neighbors have that these units will remain owner-occupied. Councilmember Wolfe expressed concern that the association rules for this development could change at some point in the future to allow rental units. City Attorney Knaak stated it is true that association by-laws can be amended, but they would not supersede restrictions placed on the property by the City. Councilmember Billings commented that if a percentage of the units do not sell, the developer would still be the owner of those units and would be paying the association fees on those units. Oftentimes as such associations get started, the developer is the association. Councilmember Bolkcom stated there have been questions raised about the notification process for this meeting and asked Ms. Jones to review that process. Ms. Jones responded that code requires that property owners within 350 feet be notified of the public hearing for such a project. City staff did meet that requirement and went one step further by notifying individuals who had attended previous public hearings on this matter. The public hearing notice goes out before the Planning Commission public hearing. Public notice for the Planning Commission and City Council public hearings are published in the Fridley Focus newspaper. She added that her telephone number is on the public hearing notice and residents are always encouraged to call with questions. Mr. Knaak indicated that staff did follow the correct notification procedure for this matter. Councilmember Bolkcom commented that a couple of months ago, when it was discussed that this proposal would be coming before Council, a statement was made at FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 10 of 38 that time that residents within 350 feet would receive a letter advising of the date. To her knowledge, that letter did not go out. Ms. Jones stated she is not familiar with the meeting Councilmember Bolkcom is referring to but there was not a separate notice mailed for Council's public hearing. At Councilmember Bolkcom's request, Ms. Jones reviewed the site plan, specifically the setback requirements. The building setback along Old Central is being met, but the drive aisle setback is not. Along the north end of the property on Mississippi, the parking setback will be approximately 8 feet short. Those setback shortages are due to the amount of land the County is taking along Old Central and Mississippi for the possibility of future expansion of those roadways. Councilmember Bolkcom asked for clarification on the parking requirements for this site. Ms. Jones responded they are meeting the parking requirements for the housing and retail sections. They have proof of parking for 8 additional stalls in the retail area. If the housing area is treated as market rate rather than a senior building, the parking space requirement would be higher. Since this is restricted to seniors, the parking requirement is lower. Councilmember Bolkcom asked about the change from a fence to landscaping. She asked if the landscaping will provide as much privacy for the adjoining properties as a fence would. Ms. Jones stated that would be a matter of personal preference. City code gives the developer the option of either putting in a fence or opaque landscaping (coniferous trees that will be full year round). On the east end, in addition to the landscape screening, the developer is proposing a retaining wall and berm to help screen that side of the development. The trees will be located on top of the berm. Along the south end, the developer is proposing 60 arborvitae which will be spaced together as close as they can. Along the east there will be a couple of different kind of spruce trees. Councilmember Bolkcom questioned if staff has looked into the rain garden option and how other cities are handling this. She asked how staff arrived at a 15% credit towards landscaping trees in exchange for the rain gardens. Ms. Jones responded that staff is not aware of what other cities are doing with respect to rain gardens associated with developments. Other cities are utilizing rain gardens in relation to street construction projects. The types of plants in a rain garden are important for it to function properly for storm water filtration. Staff looked at the shortage of trees and considered setting this as policy, not just for this development, but for other such proposals. It is difficult with the storm ponding requirements new developments face to have enough space to meet the tree-planting requirement. To take 15% of the amount of trees required and allow them to make up for that with rain garden areas is a reasonable compromise. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 11 of 38 Councilmember Bolkcom asked about Stipulation #7. Ms. Jones stated that is actually out-dated because the developer has obtained the exemption for the wetland. Staff has received the paperwork from the Rice Creek Watershed on this matter. To her knowledge, the petitioner is in compliance. Councilmember Bolkcom asked Mr. Haukaas to explain the relationship between the height of this building and the watershed concerns. She asked if there is any other option as far as the height of this building. Mr. Haukaas responded he does not see a relationship between the watershed district and the height of the building. He stated the concern would be the depth of the basement in relation to the water table in that area. The watershed district concerns would be related to water run-off which is affected by the surface area, not the building height. Councilmember Bolkcom commented that what Mr. Haukaas is saying is whether the building is one story or three stories high, it is basically the same as far as storm water. Mr. Haukaas stated that is correct. Councilmember Wolfe questioned the age of the statistics used to determine that people 55 and older do not drive as much as those 55 and younger. Ms. Jones stated she was not referring to any study but the City requirements for parking. The code gives an allowance for assisted living senior facilities. Staff is happy that this petitioner is exceeding the requirement of 70 parking stalls because staff does not believe that would be adequate for this age group. Councilmember Bolkcom referred to the Planning Commission minutes where the petitioner's architect stated that the watershed district requires that structures be two feet above the high water mark. Mr. Haukaas responded that the watershed district does have a requirement similar to flood plain requirements that the base level of a building be at a certain elevation above the high water mark of any ponding or storm water features or creek or river in the area. By calculating what their storm water is going to be and how high the storm water ponds may be that sets a minimum for where the building will be constructed. Mr. John DeMello, petitioner, stated he is the president of Family Lifestyle Development Corporation. To address some of the questions regarding rental property, he explained most banks require 50% of the project to be filled prior to ground-breaking. In addition, they will limit the amount that will be rented to the 5% figure that Town Center has proposed. They hope, however, that the building will fill up immediately so that rental units are not a concern. He stated they do have a very high water table on this site which is a major reason why a lot of land has to be brought in and the building has to be FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 12 of 38 constructed basically on top of the ground. Their project will actually provide relief for drainage issues on some of the surrounding property. Mr. Peter Villard, Architectural Works Villard, Inc., explained the major issues in the initial proposal were density, traffic, building height, snow removal, sunlight, and setbacks. They have tried to address those concerns by coming back with a smaller building, a smaller site, one parcel instead of two, 20 less units, 2'/ less units per acre. There are 22 less parking stalls for housing and 27 less stalls for the retail area for a total of 49 less parking stalls on site. The building itself has 7,500 less square feet of underground parking, 38,000 less square feet of housing and 3,000 less square feet of retail, for a total of 49,000 less square feet.. The building height is ten feet lower. They added the landscape screening on the east and south as well as major snow removal areas. They do have the conditional approval and wetland exemption from the Rice Creek Watershed District. They also received county approval for the right-of-way on June 8. The building setbacks are pretty extensive; 140 feet on the north, 104 feet on the west, and 18 feet on the east and 40 feet on the south. To address the sunlight issue, they are proposing 10 less feet in building height which allows for more sunlight to the properties east of this location. Mr. Villard further explained that the high water mark has been established on this site by their engineering consultants and the watershed district. The garage floor must be two feet higher than that high water level. The water table on this property is up so high they could not sink the building any further. They are adding the features required to accommodate the high water table on this site. He reviewed the landscaping proposed for this development. He stated along the east property line there is an 18-foot setback from their balcony to the property line and an 8-foot City easement. There will be spruce trees along the east as well as a retaining wall. On the south elevation, there will be 60 seven foot high arborvitae. All of the surface water coming from the south towards this site will be draining into this proposal's retaining area. Mayor Lund questioned who commissioned the study that determined the best use for this site. Mr. DeMello responded that his company commissioned Maxfield Research to do a feasibility study; including a demand analysis. Town Center development was included in that study. Maxfield Research typically tries to error on the conservative side and they think this project will be consumed at a rate of 4 units per month. As to comments that the developer paid the researcher to say what he wanted to hear, he said that would not be in the best interests of the developer, the banker or the investment group who will be risking millions of dollars. Mayor Lund commented that he believes the owners of the condominium units would work to keep the rentals to a minimum to protect their investment. He stated the association documents will set the standard for the number of rental units and stated he would like to see some limitation on rental units added to Stipulation #17. He added FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 13 of 38 that he realizes it is not uncommon for such developments to allow perhaps 5% of the units to be rental on a short-term basis. Mr. DeMello responded that his father will be purchasing one of these condo units. It is difficult to not allow rentals at all, but he believed a small percentage would be reasonable. He added that he does not want to see this become a rental property. Mayor Lund stated he would like to see that in writing; a limitation on the rental units in this property. He also asked if there will be a cement median in the entrance of Old Central that will restrict the right-in and right-out. Mr. Villard presented a copy of the County's right-in right-out and it does include a median. Mayor Lund asked if Council is being asked to rezone those single family homes along 64t" that are no longer in this project. Ms. Jones responded that during the initial presentation on this property last year, staff recommended including the three properties along 64t" to avoid spot zoning because they typically rezone to a physical boundary, such as a street. However, in the public hearings held last year there was a public record created by the surrounding neighborhood indicating they did not want those parcels on 64t" Avenue to be included for reasons of preserving the residential character of the neighborhood. Because that record has been created it is within the City's legal authority to rezone only to 6421 Central Avenue and not have it considered as spot zoning. Mr. Knaak concurred with Ms. Jones' statement. Spot zoning tends to be an island that is being created to accommodate a specific development, but if the uses are consistent in the rezoning with the contiguous parcels, for the most part it is not a problem. Councilmember Billings asked who determines what spot zoning is. Mr. Knaak responded that ultimately that would be determined by the courts. Councilmember Billings added the court would only determine it to be spot zoning if it is inconsistent with the surrounding zoning. It is up to the City Council to determine what appropriate zoning is for the City of Fridley and what appropriate zoning is for specific sites as long as Council considers the other elements that surround it. Rezoning to S-2 is an opportunity for the City to be able to maximize their zoning districts and create a mixed use on a specific site. Determination as to whether or not five, eight or ten lots are adequate to create an S-2 district is up to Council to determine. If Council does something that another party vehemently objects to, that party can go to court and it becomes their responsibility to prove to the court that what was done was without adequate foundation. Staff's preference and prior preference has been not to have a portion of a block one zoning and another portion of the block a different zoning. Council has tried aggressively to correct those kinds of situations. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 14 of 38 Mr. Bernard Marihart, 1373 64t" Avenue, stated he owns the property directly east of this proposal. He questioned if the developer made an effort to find property that was already properly zoned for this development or if the City offered some guidance to find appropriately zoned property. Mr. DeMello stated he owns this parcel of land and he is asking to develop this property. Mr. Marihart stated there are real estate investment companies that have a reasonable expectation that developers will at least look at their properties before the City rezones property for such a development. He presented digital pictures he created in an attempt to show how the building proposed for this site would look in relation to the buildings on his property. He explained that the 8 to 12 foot berm would be higher than the fence on his property and the building will be started above his fence. The proposed building will be 26 feet from his property line. He added that they will be knocking down most of the existing trees that would help shield some of the view of the new building from some of his neighbors. Mayor Lund and Councilmember Bolkcom commented that any property owner has the legal right to approach the City and request approval for rezoning. Mr. Marihart stated existing commercial property values would be negatively impacted if developers are not encouraged to develop those properties rather than seek rezoning. Councilmember Billings stated there is no property within the City of Fridley that is specifically zoned for this development. The current zoning on the petitioner's property is C-2, General Business; R-1, Single Family; and C-1, Local Business. There are 5 pieces of property with 3 different zonings involved in this proposal. The petitioner owns this property and is asking to develop it. He does not believe Council is working negatively towards the interest of any commercial property owner. This is 80% of what the City Council does; work on land use issues. Council and City staff work with people to try and accommodate the current and future needs of single family, business and industrial owners. There is nothing that gives the City Council the authority to tell a property owner that he must look into property already properly zoned. Council is obligated to hear proposals from individuals who own property they wish to develop. Mr. Burns, City Manager, said the City's zoning ordinance requires that a petitioner have site control over the property they are planning to develop. Mr. Pete Eisenzimmer, 6535 Oakley Drive, stated this project has been going on for about two years. It originally had 70 units. Council then asked the petitioner to revise their plan and the petitioner returned with a proposal for 90 units. Now they are back before Council with 70 units which he does not see as a compromise. They are putting a lot on a small area. If the County decides to widen Mississippi and Old Central, they will need the land for that expansion. He expressed his opposition to this proposal. Councilmember Billings asked for clarification on the right-of-way lines. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 15 of 38 Mr. Haukaas stated the right-of-way shown includes the additional right-of-way requested by the County. Mr. Villard explained that petitioner has agreed to give 10 feet on Old Central and 30 feet on Mississippi. Councilmember Billings stated if the developer were not donating land to the County there would not be any setback issues. Mr. Villard responded that is correct. Councilmember Billings commented that Council could fix that by removing any stipulations that the petitioner give this property to the County and the County and the taxpayers can pay for the land when they want to condemn it in the future. Ms. Bonnie Marihart, 1443 - 64t" Avenue, questioned if a building of this size could be constructed in the existing zoning. She asked that this property be developed with care so that it does not change the character of the neighborhood. She was concerned that people will miss the right turn in to this site and then use 64t" to turn around. She stated that she and her family spend a great deal of time in their backyard and fear that this proposed development will take away from their enjoyment of their property. Mr. Virgil Okeson, 1423 - 64t" Avenue, expressed his concern about the City setting a precedent for other developers to request this type of zoning change and side-stepping the zoning requirements. This should be taken into consideration. The shortages of parking, setbacks, and trees are all important issues to adjoining property owners. He is also concerned about 64t" Avenue being used as a u-turn street because of the right turn-in requirement. The residents of the condominium units will have visitors, yet there are only 12 parking spaces provided for guest parking. There will also be vendor trucks and repair trucks needing to access this area. There may also be an issue with flooding in this area based on the history of drainage concerns in this area. He was also concerned about the developer's ability to influence the amount of rental property allowed. This should be considered by the Council. He also referred to the effort by organizations, including the City's Chores and More program, to keep seniors in their homes. He took issue with the comments that a lot of people in the City want to move into facilities like this one being proposed. Mr. Mark Schwartz, 1372 - 64t" Avenue, stated he is very disappointed that he did not receive written notification of this hearing before Council. There was no publication of this meeting in the local paper. He believes this would constitute spot zoning. The record would reflect that the neighbors did not want S-2 zoning in this area at all, not just to 64t" Avenue. Due to the problems with the water table and the fact that this is the same plan as presented previously with the same problems, this is too much of a development for this piece of land. According to the Comprehensive Plan, the character of a neighborhood should not be changed as a result of a redevelopment. He expressed his opposition to this proposal. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 16 of 38 Ms. Jones presented a copy of the notice of this hearing which was published in the June 2, 2005, issue of the Fridley issue of the Sun Focus. Mr. Steve Williams, 1357 - 64t" Avenue, stated he moved to this property 10 months ago in an effort to escape the density of the city neighborhood where he previously resided. The trees in the woods behind his property are 50 to 60 feet high and provide a good buffer. It would be a shame to clear-cut those trees just to create this new development. The proposed landscaping will not provide adequate screening. He asked that the existing trees remain. Ms. Jean Schwartz, 1372 - 64t" Avenue, stated there were two neighborhood meetings held by the developer but the notices for those meetings were inadequate, which she believed showed total disregard for the residents. The initial proposal on this site was for 71 units with general retail. The Council indicated that was too large. This current proposal is only one less unit and the density appears higher. The building height will be, in reality, four stories. There is no allotment for an alley easement on this plot even though there is an existing easement off of 64t" Avenue. The driveway on the west side is only two feet from the property line. The required walkway would be close to the property line. The east setback is only 18 feet and a 7-foot fence and trees will do nothing to screen the view from the surrounding homes. The proposed landscaping will take 30 years before it has any effect on screening. The traffic count is estimating 845 total trips should be compared to the traffic from the existing three houses and one small business. Ms. Schwartz said the Comprehensive Plan states that the character of a neighborhood should not be changed. The parking spaces along Mississippi are within the 35 foot setback, much the same as they were last year. She questioned staff referring to any senior housing as an assisted living facility with regards to parking requirements. A senior condominium should not be referred to as assisted living unless there are facilities and staff that makes it assisted living. Many recent studies done on senior driving habits show that those driving habits have changed and are much the same as the general public. They still propose to remove single family homes and rezone R-1 land. The residents do not want this and do not believe this type of housing is appropriate for this area. Nothing has changed. She stated she is not opposed to redevelopment, but they need to be appropriate uses. There is no reason to place a big apartment building in the middle of single family homes. She pointed out an error on the preliminary plat for Spring Valley Estates in that one of the homes is missing and questioned what else is missing. S-2 zoning calls for all performance standards for uses in the district to be comparable or similar to uses allowed in other districts. This does not meet the standards in other zoning districts in many ways. To allow this to be built would be setting a precedent that allows every zoning code law to be thrown out. She understands there is latitude with the S-2 zoning, but thought there should not be as much latitude allowed. Looking at the 71-unit original proposal, the density was 26% and this proposal is 28%. She referred to a petition circulated last year with approximately 400 signatures of those residents opposed to the 71-unit housing development, against the rezoning, the retail, and the traffic and noise. She stated as FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 17 of 38 far as she is concerned, this petition is still valid. The overall discussion of the issue of zoning was that the neighbors did not want the S-2 zoning at all. It totally defies logic to stick an apartment building on property with single family homes and which abuts single family homes on two sides. There are a lot of open retail spaces in Fridley now. This was denied last year in a way that a lawsuit to challenge it would hold up. If Council looks at the reasons for denial, they are basically the same for this proposal. Talking to people in the community, she claimed that Fridley residents feel there is a need for more nice, single family homes, not more apartments. Ms. Pam Reynolds, 1241 Norton, referred to the minutes of the original meeting in March 2004 when the proposal was for 71 units. The consultant for the housing forums stated the City needs to give particular care to the integration of redevelopment projects when located adjacent to single family neighborhoods. She stated this proposal will drastically change the character of that neighborhood. The neighbors understand that sooner or later this site will be developed but not with two behemoth buildings. Ms. Nancy Jorgenson, 5730 Polk Street NE, referred to the 64t" Avenue storm and sanitary sewer project that was necessary due to some significant drainage issues. That project tried to correct some of those drainage problems. Developing what are now two large vacant properties will significantly change the storm water flow. She asked that staff inembers look at the material related to the 64t" Avenue drainage problems. Mr. Kurt Olson, 1384 - 64t" Avenue, asked if this petitioner will be the only benefactor of the change in the City's policy regarding rain gardens. Councilmember Billings responded that the Rice Creek Watershed District made a presentation to Council earlier this year and requested that Council allow the rain gardens in such developments as well as in conjunction with street projects. The proposal before Council tonight would be the first development where the rain garden concept will be tried and if it is successful then it will be utilized in future developments. Councilmember Bolkcom stated there are many other communities, such as Maplewood and Woodbury, where rain gardens are being used. It is not a new concept, but it is new to the City of Fridley. Ms. Marvel McNaughton, 6300 Pierce Street, asked if staff had located the proof of publication for this hearing. Mayor Lund responded that Ms. Jones does have a copy of the notice of this hearing and it was published in the June 2 edition of the Sun Focus. Ms. Susan Okeson, 1423 - 64t" Avenue, expressed her concern about the landscaping for this proposal, particularly the planned rain gardens, because they will not offer the screening of mature trees. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 18 of 38 Ms. Andrea Olson, 1385 - 64t" Avenue, stated there is one clear theme; if there is not enough room for this development to meet setback requirements on the north and east side or for all the tree requirements or trees and a sidewalk on the south side, there is just not enough room on this site for this proposal. There are many people in that area with a uniform, consistent message of opposition. Underground parking is not underground if you have to push dirt up. If the underground parking is higher than the homes around this site, it is not underground, which makes this a four-story building. She questioned why the neighbors should be forced to accept this structure because the petitioner purchased property with a high water table. The height of this structure will have to have a negative impact on the surrounding properties and drainage issues. It makes sense that this petitioner build a development that is appropriate for this site. The petitioner should not ask the City and the residents to make exceptions just so he can make a profit from this site. She believed the way the petitioner handled the neighborhood meetings was "deceitful" and that the neighbors were not advised of this hearing even though they had been given the assurance they would be. She also stated that this is spot zoning because it is an island to accommodate a specific project. MOTION by Councilmember Bolkcom, seconded by Councilmember Billings, to accept into the record the ordinance presented by Ms. Jones with the new stipulations and the letter from Anoka County (regarding the access to this development.) UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to receive the unapproved Planning Commission minutes of June 1, 2005. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Mayor Lund, seconded by Councilmember Wolfe, to accept into the record the letter dated June 8, 2005 from Marvel McNaughton. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom referred to other S-2 developments approved in an area of mixed zoning, including Medtronic and Christianson Crossing. She then asked about the alley easement. Mr. Haukaas, Public Works Director, stated there is right-of-way provided which still exists and will continue to exist. There is no distinction between alley and street right- of-way. Councilmember Billings asked for clarification as to the City's policy regarding alleys. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 19 of 38 Mr. Haukaas responded that the general direction he has been giving is that the City wants to vacate unused alleys and return the area to adjacent property owners. The right-of-way in this development, however, does need to be preserved because of the storm sewer project in that area. He does not believe there is any interest by the developer or the neighborhood to put a street through the right-of-way in question, so he does not see the need to take additional right-of-way at this time. Councilmember Bolkcom asked Mr. Haukaas if he is comfortable with the drainage plan for this development. Mr. Haukaas stated the developer's engineer, BKBM, has submitted storm water plans and calculations that show they are reducing the run-off to the east. In addition, the building plans include a piping system to collect the roof run-off and direct it into their ponds. Councilmember Bolkcom questioned the traffic studies that have been done and how it relates to the traffic study performed by the City. Mr. Haukaas stated the City runs traffic studies on a four-year cycle and the County does them on a two-year cycle. There has not been an appreciable increase in those counts for a long time. Councilmember Bolkcom asked if Mr. Haukaas is aware of any plans to increase Mississippi or Old Central in the next five years. Mr. Haukaas responded he does have a copy of the County's written five-year plan and proposed plans for the next ten to fifteen years and there is no intersection improvement included for Mississippi and Old Central. Councilmember Bolkcom questioned what height a structure could be erected in the C-2 or C-1 zoning currently on this site. Ms. Jones stated she would have to research that and get back to the Council. Councilmember Bolkcom stated at a recent joint meeting with the HRA, three developers who participated in that meeting indicated that there is an over-abundance of condominium units in the Minneapolis and St Paul areas, but not in the suburban areas. They also indicated there are a lot of people at all age levels who are looking for town homes or condominiums. She asked Councilmember Wolfe if, as a realtor, he sees a negative impact on surrounding single family homes when a condominium development goes in nearby. Councilmember Wolfe responded that every house is worth what you can sell it for. MOTION by Councilmember Wolfe, seconded by Councilmember Barnette, to close the public hearing. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 20 of 38 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 10:35 PM. OLD BUSINESS: 12. Second Reading of an Ordinance to Amend the City Code of the City of Fridley, Minnesota, by Making a Change in Zoning Districts (Rezoning Request, ZOA #05-01, by Har-Mar Incorporated, for Property Generally Located at 7110-90 University Avenue NE) (Ward 3). Ms. Jones, Planning Coordinator, stated this is the second reading of the ordinance. The Planning Commission held a public hearing on this matter at their April 20 meeting and unanimously recommended approval. Council held a public hearing on this matter on May 9, and the first reading of the ordinance was held on May 23. Staff recommends approval of this rezoning. The next item on the agenda pertains to this property as well because in rezoning this property, staff recommends Council approve a resolution to remove the four special use permits that exist on this property which will no longer be necessary after the rezoning. Staff received no calls regarding this matter after the first reading. Councilmember Bolkcom commented that the tenants currently on this property fit the commercial zoning better than the existing zoning. Ms. Jones added that another factor is Billiard Street Cafe is seeking to obtain a liquor license which they cannot do in an M-1 zoning. Many of the special use permits are related to Billiard Street Cafe. She concurred with Councilmember Bolkcom's comment that the proposed rezoning fits the current uses better than the M-1 zoning. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to waive the reading of the ordinance and adopt Ordinance No. 1203 on second reading. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 13. Resolution Eliminating Four Special Use Permits for the Property at 7110 — 7190 University Avenue, legally described as Lots 4-6, Block 1, Paco Industrial Park, except the North 35 feet of Lots 4, Anoka County, Minnesota (Ward 3). Ms. Jones explained two of the special use permits allowed expansion of the Billiard Street Cafe; one to reduce the parking setback and one to allow the use of office space. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to eliminate the four special use permits for the property located at 7110-7190 University Avenue. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 21 of 38 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY TO APPROVE RESOLUTION 2005-30. 14. Approve Liquor License to Greg Asproth for Billiard Street Cafe, Generally Located at 7178 University Avenue NE. (Ward 3). Mr. Pribyl, Finance Director, stated the Billiard Street Cafe has been in business in the same location for 17 years. A public hearing was held May 9 regarding the liquor license. The Police Department reviewed the backgrounds of the owner and manager and found no reason to deny this request. Staff recommends approval. Councilmember Bolkcom asked Greg Asproth, owner, if he will be applying for the 2:00 a.m. closing license and if he was aware of the requirements for that license. Mr. Asproth responded he will be applying for the late close and is aware of the restrictions related to that. He further stated they have worked closely with the police to address concerns regarding minors. Councilmember Bolkcom stated she forwarded to Public Safety Director, Don Abbott, an e-mail she received from a resident regarding this issue. Mr. Abbott stated he received the e-mail expressing concerns that minors would be allowed in the building where liquor is served. He explained that is not correct as the City ordinance prevents anyone under the age of 18 from entering the business except to eat, perform work, or in the presence of a parent or guardian. The entire establishment will be licensed. There will not be separate areas. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to approve the liquor license for Greg Asproth for Billiard Street Cafe located at 7178 University Avenue NE. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. Preliminary Plat Request, PS #05-02, by Family Lifestyle Development Corporation, to Create One Parcel Out of Five, Generally Located at 1314 and 1340 Mississippi Street and 6421, 6441 and 6461 Central Avenue NE (Ward 2). Mayor Lund repeated his concern to limit the amount of rental units to 5% or 10% in this development in the association agreement with the intent that it be for short-term only. The spot zoning concerns have been discussed at length and have been clarified. He questioned how the berm along the east side of the property will affect run-off. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 22 of 38 Mr. Haukaas responded the berm along� improvement that was put in for the 64" drainage will still get to that drain. the eastern edge is west of the drainage Avenue drainage project. The residential Ms. Jones suggested the architect review the drainage plans for this proposal. Mr. Villard stated they have addressed all of the surface water and it will be collected and filtered on site. All of the hard surface drainage from the roof is being collected with a series of downspouts into underground drainage pipes that go into the north catch basin, then to the collecting pond, and finally into a sedimentation pond. The proposed rain gardens will also drain to the sedimentation pond. All of the water from around the site collects from a number of areas and drains into the filtration pond. From that pond, it leaves the site at the southeast corner and goes into the storm sewer. They will also be collecting about 30% of the water from the properties to the south that drains toward their site. Ms. Schwartz commented that the pipe this entire site drains to already backs up and floods her back yard. Mr. Haukaas explained that the pipe Ms. Schwartz referred to goes into the ditch that comes from Harris Pond, then into a small ponding area off Rice Creek Road, then eventually goes to Moore Lake. Moore Lake drains to the north, back to Rice Creek, along Highway 65. The engineers for this development have designed a system to retain the surface water on site; the ponds are as much infiltration ponds as they are sedimentation ponds. The intent is to put the run-off back into the ground on site rather than allow it to run off to Moore Lake or Rice Creek. The outlet to that pond is 6 to 8 feet higher than the bottom of the pond so there would have to be about 8 feet of standing water in the pond before it would even go into the outlet and leave the site. They have shown that it would be at a lesser degree than prior to this development, so under most conditions there should be less water going into the pipe on 64t" Avenue than in a pre-developed state. Mayor Lund questioned what provisions have been made for guest parking for the condominium units. Mr. DeMello responded they would hope some of the retail spaces would be available, particularly on the weekends. In similar facilities, there is typically not a parking problem. Councilmember Bolkcom commented that what she has seen of senior housing units is that parking is not usually a problem. Mayor Lund stated in the original presentation snow storage was a concern and he asked if that has now been addressed. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 23 of 38 Mr. DeMello responded that they have specifically set aside large portions of the area to address the snow storage. Mayor Lund stated that since the Planning Commission meeting, it appears the developer has made an effort to comply with the landscape requirement of 160 trees. He stated he thinks the rain gardens will work well for absorption of surface water. Had it not been for the County requesting the right-of-way dedication, there would be no setback concerns for the parking. He commented that he has some concerns regarding the sensitivity to redevelopment in residential areas. He believes this proposal fits in this residential area and he liked the idea of combining the different zonings. Councilmember Bolkcom stated there appears to be a fair amount of difference between this proposal and the previous one. The snow storage concerns have been addressed; the setback issues are not nearly as significant; the lot coverage is about the same; and the landscaping is better in this proposal. Mr. DeMello stated he reduced the size of the building from four to three stories. There had been two lots with separate retail and residential areas with more of a setback encroachment. Councilmember Bolkcom stated another issue raised last year was the traffic on 64tn Avenue. This proposal has addressed those concerns by eliminating the access to 64tn Avenue. Councilmember Wolfe referred to the section of the Comprehensive Plan regarding drastic changes in the character of a neighborhood. He stated he has a problem when he hears from so many of his constituents who do not support such a project. He was also concerned with the removal of the existing mature trees to be replaced by new landscaping. He understood that the size of the building being proposed is a problem for surrounding neighbors. Councilmember Barnette stated he voted for this project originally and with all due respect to the surround neighbors, he believes the developer has made some significant changes since the original proposal, particularly how it affects those along 64t" Avenue. He believes more traffic will be generated by this development but other than peak hours, the surrounding roads are not that busy. Some of the neighbors would prefer that nothing be allowed on this site. Still others would prefer nothing but single family homes. This property could be developed commercially and he would prefer housing to commercial. All of the neighborhoods have gone through changes over the years. Council has a legal obligation to consider this petitioner's proposal and a moral obligation to consider the constituents concerns. Will Fridley continue to redevelop? He stated he hopes it does. Fridley has gotten older and needs redevelopment areas. Councilmember Billings pointed out that what is on the agenda tonight is the plat approval only. The rezoning will be voted on at the June 27 Council meeting. He FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 24 of 38 commented that it would be foolish to vote for the plat if they did not intend to vote for the rezoning. MOTION by Councilmember Billings, seconded by Councilmember Barnette, to approve Preliminary Plat Request, PS #05-02, for the properties located at 1314 and 1340 Mississippi Street and 6421, 6441 and 6461 Central Avenue NE with twenty-three stipulations. Councilmember Billings questioned Stipulation #21. He stated the surrounding roads are designed to carry far more traffic than this development will generate and he questioned how the City can require this developer to pay for signals at the intersection of Mississippi and Old Central at some point in the future. He did not believe that is a fair stipulation. The development across the street will generate even more traffic. Ms. Jones stated Town Center has the same stipulation in their approval, but if the signals do go in at some point in the future, the costs will be shared. MOTION by Councilmember Billings, seconded by Councilmember Bolkcom, to amend Stipulation #21 to read "The petitioner shall be responsible for sharing in the cost of any traffic improvements necessary to accommodate the traffic specifically generated by the development, including signalization or other improvements if determined necessary by Anoka County." UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION TO AMEND STIPULATION #21 CARRIED UNANIMOUSLY. UPON A VOICE VOTE, MAYOR LUND DECLARED THE MOTION TO APPROVE PRELIMINARY PLAT, PS #05-02, WITH THE FOLLOWING 23 STIPULATIONS AS AMENDED CARRIED ON A FOUR TO ONE VOTE WITH COUNCILMEMBER WOLFE VOTING NAY. 1. Property to be developed in accordance with Master Plan-Landscape and Grading Plan MP-1.0 and Master Plan-Utility and Grading Plan MP-2.0 dated June 8, 2005. 2. Building elevations shall be constructed in accordance with architectural plan A7 and A8, titled Exterior Elevations, revised 5/19/05 and architectural plan A3, titled Building Plan Ground Level, dated 4/29/05. 3. Petitioner to obtain all necessary permits prior to construction. 4. Petitioner to meet the applicable fire code requirements in the International Fire Code. 5. Petitioner to meet all building and ADA requirements. 6. Demolition permits shall be obtained for removal of the buildings at 1314 and 1340 Mississippi Street and 6421 Central. 7. Petitioner to provide revised Certificate of Exemption for wetland and to meet the Rice Creek Watershed Districts regulations prior to issuance of a building permit. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 25 of 38 8. No business signs shall be located within the County right-of-way. Any planting within the right-of-way to be approved by the County prior to planting. 9. Petitioner to obtain a permit from Anoka County for any work done within the county right-of-way. 10. Petitioner to submit revised storm water management plans and calculations for approval by the City Engineering staff. 11. Storm pond maintenance agreement must be filed prior to issuance of building permits. 12. Petitioner shall obtain required NPDES Permit and Rice Creek Watershed District permits. 13. City Engineering staff to review and approve grading and drainage plan prior to issuance of building permits. 14. Final landscape plan to be reviewed and approved by City Staff prior to the City Council public hearing regarding the rezoning on June 13, 2005. 15. Petitioner shall install a 7' high screening fence or planting screening along the east and south property lines, according to Section 205.14.6.G(1) of the Fridley Zoning Code. 16. Petitioner to pay required Park Dedication Fee of $3,287.25 (142,924 square feet of land times .023 per square feet). 17. Petitioner to provide City with a copy of the building's association documents prior to issuance of a building permit. 18. Building to be restricted to seniors and policies to do such shall be outlined in association documents and filed with the County with the final plat. 19. Provide proof that any existing wells or individual sewage treatment systems located on the site are properly capped or removed. 20. Property owner of record at time of building permit application to pay all water and sewer connection fees prior to issuance of a building permit. 21. The petitioner shall be responsible for sharing in the cost of any traffic improvements necessary to accommodate the traffic specifically generated by the development, including signalization or other improvements, if determined necessary by Anoka County. 22. A Development Agreement outlining the developer's obligation to install utilities, etc., will be prepared by the City and shall be signed by the Petitioner prior to final plat approval. 23. The petitioner shall provide walkway access from the site for pedestrian connections at the north and west sides of property. 16. Preliminary Plat Request, PS #05-03, by Timothy Van Auken to Subdivide Two Multi-Family Lots, Generally Located at 1475 and 1485 73rd Avenue NE (Ward 2). Ms. Jones, Planning Coordinator, stated the petitioner is requesting to subdivide his property at 1475 and 1485 73rd Avenue to create a total of 6 lots to allow for the construction of two new twin homes. The properties are zoned R-3, multiple unit residential. The proposed lots meet the minimum lot width requirement of 75 feet and the minimum lot size of 10,000 square feet for two unit buildings. The new twin homes FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 26 of 38 will meet all the necessary setback requirements. The lot coverage is shown at 25% which is below the minimum of 30%. All necessary utility/drainage easements are provided on the plat. The proposed lots would be too small for R-3 uses or construction of single family detached housing units in the future. The continued R-3 zoning is inconsistent with the City's Comprehensive Plan, so a minor Comprehensive Plan amendment continuing the R-3 zoning should be completed if this plat is approved. Ms. Jones further explained the proposed plat includes extending access from the 73'/ Avenue cul-de-sac to 10 feet within the back of the 1475 - 73rd Avenue lot. The ideal access design option would include moving the cul-de-sac west. Staff is analyzing the possible design and costs for this proposal. Ms. Jones stated staff recommends approval of Preliminary Plat Request, PS #05-03, as it provides additional home ownership opportunities. If approved, staff recommends the following stipulations be attached: 1. The petitioner shall obtain all necessary permits prior to construction. 2. Any remaining debris from demolition of existing home and any brush piles on site shall be removed prior to granting of final plat. 3. Grading and drainage plan to be approved by City's engineering staff prior to the issuance of any building permits in order to minimize impacts to the surrounding properties. 4. The petitioner shall provide proof that any existing wells or individual sewage treatment systems located on the site are properly capped or removed. 5. During construction, silt fencing shall be used where applicable. 6. Petitioner to pay required park dedication fees of $3,000 prior to issuance of building permits. 7. Petitioner to pay all water and sewer connection fees, including sanitary sewer extension. 8. The petitioner shall agree to preserve mature trees to the extent possible. All trees required to be removed for the new homes shall be marked and approved by City staff prior to issuance of building permits. 9. Twin homes shall meet all parking requirements. 10. Add appropriate address and marking requirements per Fire Code. 11. The petitioner shall agree to the terms of a development agreement that shall be prepared by City staff and approved by the City Council simultaneous with their final plat approval. Councilmember Barnette asked Ms. Jones to review the site plan. Mr. Haukaas, Public Works Director, explained the two properties are on 73rd Avenue with the back of the properties extending almost to 73'/. There is a cul-de-sac at the west end of 73'/ with a half street currently constructed that extends farther to the west. Mr. Van Auken is proposing to split the north half of his two lots and create 4 lots with 2 twin homes. Staff would prefer to see the cul-de-sac at the west end of the petitioner's lots, but they have never forced a petitioner to purchase additional property from their FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 27 of 38 neighbors. Mr. Van Auken is proposing to make the half street a whole street and he did reach an agreement with the property owner to the northwest who is willing to provide an easement to extend the half street all the way to the western edge of Mr. Auken's properties. This would allow a full width street past the new twin homes and allow driveways to come out onto that street and would provide snow storage area and turn-around area. In this case, there is a clear definition between the street and the driveways and the City already plows the existing half street. This proposal would create another dead-end street and the staff would prefer to have the cul-de-sac. Staff has looked at other options and has had discussions with the neighbors but some of them are not interested in a full size cul-de-sac. He recommends against putting in less than a full size cul-de-sac. Staff also looked at offsetting the cul-de-sac on Mr. Van Auken's property but that creates setback problems. Because there is already a half street there, there must have been some plan to develop it into a full street at some point in the future, so it would not be reasonable to deny this request just on that basis. He added that without full buy-in from the properties to the north, this seems to be the best plan and staff can support it. Councilmember Bolkcom questioned staff's objections to installing a smaller radius cul- de-sac. Mr. Haukaas stated the smaller radius is a concern for snow removal and emergency vehicles. Also the old cul-de-sac would have to be removed and a new one installed. The fire vehicles need a certain size to turn around. Staff can live with extending the dead-end street because it is already there and it would be a short extension. The Fire Department has a minimum distance they will go into a dead-end street and this would still fall within their minimum. Eliminating the existing cul-de-sac and putting in a smaller radius cul-de-sac at the west end would result in too great a length for the fire trucks. Also, Council has always been concerned about setting a precedent, so if we go to a smaller cul-de-sac for this petitioner they would have to do the same for the next. Councilmember Bolkcom stated the City should not set a precedent for dead-end streets either. Councilmember Billings stated his understanding is that if a reduced radius cul-de-sac were installed, staff would recommend removal of the existing full size cul-de-sac which means emergency vehicles would have to back all the way out to Pinetree Lane. He then questioned why the full size cul-de-sac would have to be removed. Mr. Haukaas responded if the full-size cul-de-sac remains, there is no need to install the smaller cul-de-sac. Councilmember Billings questioned if there is an easement for the road on the property to the east. Mr. Haukaas responded that easement exists. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 28 of 38 Councilmember Bolkcom commented that single-family homes could be placed on this site. Ms. Jones responded that is correct. Councilmember Bolkcom stated there does not seem to be a very good solution for handling the traffic out of these properties. Mayor Lund questioned how much more of this area is zoned R-3. Ms. Jones stated there is still large area with R-3 zoning, which would allow for the construction of an apartment building. Councilmember Billings questioned what is currently on the property immediately to the west and what is on the northern edge of that lot. Mr. Haukaas explained that apartment building was built about 6 or 7 years ago and their storm pond is along the northerly edge. Councilmember Billings stated he is concerned that the owners of that property, once the street goes in, will want to have access across that so they come in from 73'/. Mr. Haukaas responded that would take a significant amount of redevelopment of their lot to be able to restore the ponding someplace else and make that connection. He also explained that the road as proposed would stop short of that property for storage purposes. Councilmember Billings suggested we stop the dedicated plat and get an easement for the last ten feet so someone else can not connect to the roadway. Councilmember Bolkcom asked if this property is zoned R-3 how did it appear as a different zoning in the Comprehensive Plan. She also questioned the difference between a twin home and a double bungalow. Ms. Jones explained she assumes that this occurred because even though the property is zoned R-3, they contain single family homes, so the Comprehensive Plan reflected the zoning that would be consistent with the existing use. A twin home would be an attached single family home where each owner owns the property around their housing unit and is responsible for caring for that property. She added that the petitioner plans to live in one of the units. Councilmember Billings commented that a double bungalow is typically owned by one person. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 29 of 38 Mr. Haukaas stated staff did require the petitioner to extend the proposed roadway 20 feet beyond the last driveway so they could back up onto the street and drive straight out. Petitioner Timothy Van Auken, 1475 - 73rd Avenue, stated he respects Council's concerns. He initially planned to proceed with this project and finish the existing dead- end street. He has owned the properties over ten years and knew when he purchased the property there was a risk associated with the R-3 zoning. Six to seven years ago, a 20-unit apartment building was constructed right next to his home. At that time, he had an opportunity to buy his neighbor's property. A lot of developers have been interested in purchasing his property for the construction of an apartment complex. He has also looked into building single-family homes but the cost of extending the sewer and water and finishing the roadway made that prohibitive. There is water and sewer available at the back of 1485 with the intent of having that area developed. Also 1-'/ feet of the roadway easement is on his property. He initially proposed extending the half street but staff wanted him to share a driveway for the two proposed units, which he did not feel was feasible as far as curb appeal. He contacted his neighbor and obtained a roadway easement across her property to finish the half street. He is not closed to the cul-de-sac option but knows there is some concern about the size of the cul-de-sac. He stated he believes a precedent has been set with an unfinished dead-end street and he is just asking to be allowed to finish that dead-end street. He plans to be an owner-occupier with the intention of leasing out the one side--hopefully executive leasing to Medtronic employees. He is educated in residential property management. He would appreciate the opportunity to exercise his legal rights to develop his property in accordance with the City ordinances. He cares what his neighbors think and he does not want to create bad feelings. Ms. Pam Reynolds, 1241 Norton, stated there is R-1 zoning around the R-3 and if allowed to develop as R-3, it would bring R-3 uses into a single family neighborhood. The decisions the Council makes today could affect what happens to this single-family neighborhood in the years to come. Ms. Sue Sherek, 1530 73 '/ Avenue, stated the present zoning is R-3; however single- family homes have been on this property since 1951. The R-3 zoning is not consistent with the current or previous Comprehensive Plan. The future land use for the parcel in 2020 also shows single family. The west cul-de-sac on 73'/ is all R-1. The first R-3 property to the east is another single-family residence. At the Planning Commission, meeting the members suggested that Council address the issue of whether this property should be rezoned to R-1 to match the existing uses. The multi-unit apartment building to the west of the petitioner is completely fenced off with a 6 to 7 foot high fence. She asked Council to take action necessary to bring the zoning into compliance with the Comprehensive Plan and with the uses in the neighborhood. This also meets the second goal of the plan to provide single-family lots for residential construction. Mr. John Jackels, 1479 - 73'/ Avenue, presented a petition requesting that Council make the zoning on this property in compliance with the Comprehensive Plan. The FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 30 of 38 neighbors feel strongly about the single-family characteristic of the neighborhood. The other R-3 zoned properties do not have access onto 73'/ Avenue. Mayor Lund commented that the petitioner could sell the properties and a large apartment building could be constructed on the site because it is already zoned R-3. Mr. Jackels stated this proposal is the least attractive alternative for this property. The apartment building has been a good neighbor. Councilmember Bolkcom questioned if Council can legally change the zoning on this property when what is before the Council is a plat approval. Mr. Knack, City Attorney, stated what the Council is considering is a replatting and the question is whether or not this is appropriate in this zoning district. If the replatting is appropriate for the existing zoning and Council denies this, Council could face some difficulties if they do not have a concrete, factual basis for doing so. Councilmember Bolkcom questioned if the neighbors' opposition could be considered a factual basis for denial. Dr. Burns, City Manager, commented that the petitioner has applied for a replat and that is the question Council has to answer at this point. Ms. Sherek stated the second matter is the extension of the cul-de-sac which staff has stated cannot be constructed and still have buildable lots. With the entire square footage of the two properties, the lines to replat can be moved in such a way to have buildable lots. Mr. Van Auken's plan does not create an equal split between the north and south lots. If he moved those lines to the south he would create enough area to put the cul-de-sac on his own property. The City Code, Section 211.07.12 provides for dead-end or cul-de-sac streets and it does not say that a dead end street does not need to have this. Staff stated at the Planning Commission meeting that a precedent was set when the half street was done in 1986. No one determined the reason behind that action. That unusual extension occurred in anticipation of further subdivision of the remaining property to the west. It was assumed that a cul-de-sac would be placed at the end or the street would go all the way through to Hayes. Subsequent development to the west of the petitioner means it cannot be extended to Hayes but it does not mean the cul-de-sac can not be moved there. In fact, the existing cul-de-sac was done in bituminous in anticipation that eventually the whole thing would move. Also, members of the Planning Commission stated they could not vote for this proposal with the dead end option and they asked staff for the cul-de-sac options. If the development proposal goes forward, they would request that Council direct staff to work with the petitioner on the cul-de-sac proposal. Mr. Jackels stated he prepared a drawing showing the cul-de-sac at the west end with the standard 40-foot radius centered on the property line. His calculations show that in order to complete the cul-de-sac approximately, 500 square feet of his property would FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 31 of 38 be lost including a large tree. He is not in favor of losing the tree. He met with staff members to discuss the reduced radius cul-de-sac option. With the reduced radius cul- de-sac, Mr. Van Auken would still be able to make two 10,000 square foot lots. He also worked on drawing an offset cul-de-sac option in which he would not have to lose his tree but a fire hydrant would have to be relocated. His main point is that two buildable lots are possible on the petitioner's property with the cul-de-sac installed. As a traffic engineer, he believed that backing in and out of a dead end street would be very problematic at best, which is why he would like to see the reduced radius cul-de-sac. He further stated he would rather see a 34-foot dead end street width rather than the 30-foot width being proposed by staff. He also suggested the existing curb be relocated to center that street on the property line. MOTION by Councilmember Wolfe, seconded by Councilmember Bolkcom, to accept the petition and the letter from Sue Sherek into the record. UPON A VOICE VOTE, ALLVOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mayor Lund stated he is inclined to agree with Mr. Jackels that a cul-de-sac would be best. He did not see that the Council can now rezone the property to R-1. Mr. Van Auken agreed about the cul-de-sac, but the issue is the affected property owners being willing to dedicate the right of way from their property. He also stated he cannot move the property line to the south as suggested by the neighbors. He is willing to work with the neighbors but if Mr. Jackels does not take some of the setback on his property to allow the cul-de-sac, the petitioner will have problems. Mayor Lund suggested the petitioner try and work out some of these issues prior to the next meeting. Councilmember Bolkcom stated she cannot support the dead end street and asked if staff can reach some resolution regarding the cul-de-sac prior to the next meeting. Mr. Haukaas agreed that the cul-de-sac is the best option. If Council is not in favor of the dead end street, he agreed that the matter should be tabled until the next meeting. Ms. Debra Jackels, 147 73'/ Avenue. stated if this is approved, the petitioner will be putting up four homes the size of their home in less property which will change the neighborhood. Mr. Michael Tippler, 1667 73rd Avenue, stated this is an R-1 neighborhood. His back yard looks onto the east end of 73'/. He has lived there since 1992 and he agreed that this proposal is too much development in too small an area. Earlier this year he wanted to improve his home by creating an enclosed garage where a dilapidated carport existed. City staff indicated he could not do this because the lot he purchased has FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 32 of 38 1,470 square feet of accessory structure. He asked for an explanation why he was not allowed to proceed with his plans. Councilmember Billings asked what accessory structures are currently on Mr. Tippler's property. Mr. Tippler responded there is a four-car detached garage and a 12' x 16' shed. All he was trying to do was get rid of the flat-roofed carport and build a garage in the same amount of square footage. Mayor Lund asked that Mr. Tippler work with City staff to resolve his concerns regarding the garage. Mr. Tippler stated he thinks it would be a mistake to add more rental property when the current rental areas are already creating problems. Mr. Jackels stated he could not find a definition for "twin home" in the code and he questioned whether they will be owner occupied or rental. MOTION by Councilmember Wolfe, seconded by Councilmember Bolkcom, to table this matter to the June 27 Council meeting. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 17. First Reading of an Ordinance Amending the Fridley City Charter, Chapter 7, Taxes, Section 7.03.A, Pertaining to Utility Fees. Mr. Pribyl, Finance Director, stated earlier this evening, he handed out a corrected ordinance to Council members. As a result of the 2005 City Council and Commission Survey, it was determined that the City should limit its losses in the water and sanitary sewer utility funds due to increasing costs and the limitation of the City Charter, by holding a special election to amend this section of the Charter. Minnesota statutes allow an amendment by ordinance subject to the Charter Commission review. The ordinance before the Council is proposing a charter amendment that would begin the public discussion on this issue. If Council wishes to proceed, this would be the first reading and then it would be forwarded to the Charter Commission for review. The Charter Commission has a 60-day review period for approval or denial of the proposed amendment and that date would be August 12, 2005. If more time is needed for the review, the Charter Commission may adopt a resolution requesting a 90-day review period which would actually take the matter to November 10, 2005. The ordinance would need to be forwarded to the Charter Commission on June 14 for their review. State law requires that charter amendments that are to be placed on the ballot for a general election be forwarded to the county 12 weeks before the general election, which would require the City to notify the Anoka County by August 16, 2005. When forwarding the ordinance, the City Council may wish to express an urgency and request the FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 33 of 38 Charter Commission try to make their recommendation to the City Council by August 8 to allow enough time for the City Clerk to notify Anoka County of the special election. Mr. Pribyl said in 2000, there was a successful initiative petition which amended the City Charter. In 2000-2001 an Ad Hoc work group met to remedy confusing language and recommended an amendment to the Charter Commission to review. In 2001, the charter was amended by Ordinance 1152. In 2004, the Charter was amended by ordinance and a successful referendum petition was circulated resulting in a defeat of the amendment at the general election. During the 2006 budget preparation and planning, it was discovered that we were unable to recover the costs for providing water and sanitary sewer services to customers due to the language in the charter. Some of the costs incurred were due to Federal mandates regulating higher water standards, higher sewage disposal rates imposed by MCES and ongoing repairs and maintenance of infrastructure. This proposed charter amendment would help eliminate the potential for long-term subsidy from the general fund. The Charter review and recommendation should be returned to Council by August 3 so the second reading can be held at the Council meeting on Monday, August 8. If the second reading is held, the proposed special election would be held Tuesday, November 8, 2005, in conjunction with School Districts 13, 14 and 16. Staff's recommendation would be to discuss this item and pass the first reading of this ordinance and forward it to the Charter Commission. Councilmember Barnette commented the biggest reason for the failure of this issue during the last election was that the ballot question was very difficult to understand. Mr. Knaak explained that the ballot question has to be laid out by Council and must be "sufficient to identify the amendment clearly and to distinguish the question from every other question on the ballot." The closer you get to the actual language the less likely there would be a challenge to the ballot. Councilmember Barnette commented that the summary is fairly clear and the more words that are added, the more confusing it becomes. Mayor Lund commented that the Council could pass this on the first reading since it would then go to the Charter Commission who could further clarify the language. Ms. Nancy Jorgenson, 5730 Polk Street N.E., Charter Commission member, stated the Charter Commission does not meet again until September 26. However, they are going to attempt to meet in July to review this recommendation. They have discussed this matter several times. At its last meeting, the Charter Commission decided that the ballot question needed to be simplified and time was needed to educate residents on the issue. The Charter Commission, therefore, recommends that there not be a special election this year and that they work with the City Council to amend Chapters 7 and 11 at the same time. There are a number of reasons for this recommendation. There will be levy referendum issues for School Districts 13 and 14 on the ballot this year. It is very difficult when the City comes up against a School referendum, as most voters will support the increase for the children but not for the City's ballot question. She stated FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 34 of 38 she will call a special meeting of the Charter Commission in July and pass their recommendation on to Council. Mayor Lund stated Council could proceed with passing this on the first reading because in 2005 alone the City is looking at about half a million in losses that have to be pulled out of the storm water/sewer fund reserves. Ms. Jorgenson stated the Charter Commission believes the City should operate as a business. Also, they are aware that the City cannot charge more for water and sewer than the actual cost to maintain those services. They do believe the City should be able to make up those losses. Councilmember Bolkcom stated Council did hold a joint meeting with the Charter Commission related to this survey and she thought there was support at that meeting from some of the Charter Commission members. Ms. Jorgenson stated at the last Charter Commission meeting, only three of the members present wanted to go forward with this ballot question this year. The others did not. One of the issues the Charter Commission has discussed was not only looking at the fees for the cost of services but also having charges for the product consumed or post consumed wastes. She will inform Council members of the July meeting date. Mr. Bill Holm, 7424 Melody Drive N.E., Charter Commission member, stated he would like to applaud Council for bringing this item back for consideration. There may be some advantages to bringing this ballot question to the voters this year because there are fewer issues on the ballot which may result in more focus by the voters. However, there may be less turn-out than there would be in 2006. The key point is this needs to be on the ballot and the public needs to be informed as to how critical this issue is. MOTION by Councilmember Bolkcom, seconded by Councilmember Barnette, to waive the reading of the corrected copy of the ordinance and approve the ordinance on first reading. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 18. Resolution Supporting the Improvements to Springbrook Nature Center Associated with the SPRING (Sanctuary Protection & Renewal into the Next Generation) Project and Supporting the Request to the State of Minnesota for Financial Assistance. Mr. Jack Kirk, Recreation and Natural Resources Director, explained that Council has before it a preliminary grant application to the State of Minnesota and a resolution supporting improvements to the Springbrook Nature Center. A joint committee with representatives from the Parks and Recreation Commission and the Springbrook Foundation has worked on this application and continue to refine the overall plan for this FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 35 of 38 project. The estimated overall cost for this improvement project is $5,000,000 and the grant application seeks half of that from the State of Minnesota. The remaining half will come from private sources. The preliminary application deadline with the State is June 15. A more detailed application is due the end of September. The Parks and Recreation Commission has reviewed the application and the resolution and passed a motion in support of the application and the resolution. The application would be from the City of Fridley for a City of Fridley park. The application requires an accompanying resolution of support from the governing body. Staff recommends Council's approval. Councilmember Bolkcom asked if passing this resolution obligates the City in any way to extend funds to this project. It is her understanding that there would also be funds set aside for ongoing maintenance of improvements made as a result of this project. Mr. Kirk responded as stated in the application, the funds will come only from the State grant and private sources and will not involve City tax dollars. As part of the detailed plans, there will be a business plan that sets forth the maintenance dollars required which will be generated by fundraising dollars and increased revenues. Councilmember Wolfe stated grant money is taxpayer's money. It needs to be stressed that if by some miracle the foundation raises $2.5 million, they have to have enough money in escrow to run the Nature Center at no more cost to the City of Fridley. The Springbrook Nature Center is a beautiful place, but he has a problem with spending more tax dollars and he cannot support this. He would like to see the Foundation raise the $2.5 million first and then request grant dollars. He asked if by supporting this, the City is making a guarantee that they will come up with the $2.5 million. Mr. Kirk said no. It is in the application that the matching funds will be raised from private sources. The City is not committed at all. They also state in the application that the additional operating dollars will come from a combination of increased revenues and fundraising by the Foundation. All these issues will be addressed in detail in the business plan that will be submitted as a part of the final application. Mayor Lund reviewed the wording in the application and stated he believes it is very clear that the City is not committing dollars to this project or future maintenance. MOTION by Councilmember Bolkcom, seconded by Councilmember Barnette, to adopt Resolution No. 2005-31. UPON A VOICE VOTE, MAYOR LUND DECLARED THE MOTION CARRIED ON A FOUR TO ONE VOTE WITH COUNCILMEMBER WOLFE VOTING NAY. 19. Receive Proposal and Award Contract for the Installation of RediNolt Surge Protection Devices to Wells 2, 5, 6, 8, 10, 11 and 12. Mr. Haukaas, Public Works Director, stated they worked with a company called enterTECH to provide a performance contract that installs energy saving devices that FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 36 of 38 and surge protection systems on major electrical sources. They are guaranteeing a 20% savings in energy costs by reducing the transient voltage and other stray voltages that go through the meter and are essentially wasted. State Statute 471.345, the Uniform Municipal Contracting Code, allows cities to enter into performance-based contracts for energy efficiency projects such as this one without going through a full competitive bidding, generally because there are not enough companies for competitive bids. This case falls under Subsection 13 which states "A guaranteed energy savings contract that includes written guarantees that savings will meet or exceed the cost of energy conservation measures is not subject to competitive bidding requirements of this section or other law or City charter." They have been given such a guarantee. They have also spoken with the City of Coon Rapids and the City of New Brighton who have had these devices installed. This contract totals $58,000, and includes installing these devices on six sites covering about eight wells with a rate of return of about 35 months. Staff recommends Council's approval. Mayor Lund questioned what the guarantee is if the City does not realize the minimum 20% return. Mr. Haukaas responded that the company would cut a check to the City. They are guaranteeing 20%, but they expect the City to see a greater savings than that. The City of Coon Rapids exceeded the 20% mark, Crooked Lake Lodge saw a 22% savings, and Hampton Inn realized a 23% savings. These devices have consistently hit at or above the 20% range. MOTION by Councilmember Bolkcom, seconded by Councilmember Barnette, to award a contract in the amount of $58,000 to enterTECH of Minneapolis for the installation of Redi/Volt surge protectors to wells 2, 5, 6, 8, 10, 11, and 12. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. Approve Metropolitan Council Section 8 Housing Assistance Program Contract for Administrative Services between the City of Fridley and the Metropolitan Council. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to enter into the record an item received from Dr. Burns during the Council's pre-meeting related to this item. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Councilmember Bolkcom explained the main reason she removed this from the consent agenda is she would like to know if this will negatively impact the Section 8 recipients and how much funding the City will lose. FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 37 of 38 Dr. Burns, City Manager, stated he discussed this with the City's Section 8 Administrator, Pat Wolfe, and her main concern is the loss of the incentive program. She was responsible for investigating the properties and making sure the rates were fair and that will now be turned over to the Metropolitan HRA. Her experience has been that she is much more familiar with the conditions of rental property in our city and with the appropriate rates. However, the City has no choice but to hand that program over to the Metropolitan HRA. The City's role with the HRA has been to administer what essentially is a Federal program that passes through the Metro HRA. We have contracted with the HRA to provide certain administrative services. The Metro HRA has faced cutbacks in Federal funding housing assistance program and as a result, some of the added services the City has voluntarily taken on for Section 8 housing clients are now being recaptured by Metro HRA so they are not paying us for administering that part of the contract. We are losing some services, but on the positive side, they are eliminating the $10,000 cap on the City's ability to keep revenues that exceed the amount of costs that we have for providing the service. This should help the City to lay claim to some balances the City has, which is approximately $98,000. Anything the City is able to save on will be the City's to use for housing programs. The housing forums the City held last year were funded in part by the Section 8 surplus money. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to approve the contract for administrative services with the Metropolitan Council for the Section 8 Housing Assistance Program. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. Extension of Preliminary Plat Request, PS #03-18, by Town Center Development, Generally Located at 1282 Mississippi Street and 6490 Central Avenue NE. (Ward 2). Ms. Pam Reynolds, 1241 Norton, explained that she requested this item be removed from the consent agenda because she believes a year and seven months should have been long enough for the developers to get their business straightened out. She originally questioned how the zoning could be changed on this site when the petitioner did not own the property. Dr. Burns, City Manager, stated the petitioner is expecting a decision from Anoka County courts soon. The intent is to bring back the final plat once the legal issues have been resolved in the petitioner's favor. This request is for a six-month extension and if it is not resolved during that time, it will have to be considered again. Councilmember Bolkcom commented the judge just received the Court record last week and has 90 days to respond, so the Council has to give the petitioner 90 days. Councilmember Billings stated another thing to keep in mind is it is not the developer who has created this problem but the current owner of the property who entered into the FRIDLEY CITY COUNCIL, JUNE 13, 2005 Paqe 38 of 38 contracts. The developer entered into agreements with the owner in good faith and now the owner is unable to deliver. Ms. Jean Schwartz, 1372 — 64t" Avenue N.E., asked if this gets resolved, would there be any more discussion with Council. She would like the opportunity for another public hearing. Dr. Burns responded that their final plat will have to be approved and there is no public hearing. MOTION by Councilmember Bolkcom, seconded by Councilmember Barnette, to approve a six-month extension for Preliminary Plat, PS #03-18, by Town Center Development. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. Resolution Calling for a Public Hearing on Modifications to the Redevelopment Plan for Redevelopment Project No. 1 and the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1-3, 6-7, and 9-17, Creation of Tax Increment Financing District No. 18 and Approval and Adoption of a Tax Increment Financing Plan Relating Thereto. Mr. Pete Eisenzimmer, 6535 Oakley Drive N.E., requested this item be removed from the consent agenda but subsequently submitted a note withdrawing his request. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to adopt Resolution No. 2005-28. ADJOURN: MOTION by Councilmember Barnette, seconded by Councilmember Wolfe, to adjourn. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MEETING ADJOURNED AT 1:45 A.M. Respectfully submitted by, Rebecca Brazys Recording Secretary ������ Scott J. Lund Mayor