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HomeMy WebLinkAbout2001-12-19 MINUTES REGULAR MEETING COTTAGE GROVE CITY COUNCIL December 19, 2001 OPEN FORUM —7:15 p.m. Open forum provides a person an opportunity to inform the Council of a problem or to request information related to City business not scheduled for Council action and on the Agenda. Mayor Shiely encouraged persons to limit their remarks to two (2) minutes per issue. Present: Mayor Sandy Shiely Council Member Rod Hale Council Member Cheryl Kohls Council Member Pat Rice Council Member Jim Wolcott Also Present: Ryan Schroeder, City Administrator Ron Hedberg, Finance Director John Mickelson, Public Safety Director John McCool, Senior Planner Les Burshten, Public Works Director Jerry Bourdon, City Engineer, BRAA Michelle Wolfe, Assistant City Administrator Caron Stransky, City Clerk Corrine Thomson, City Attorney, Kennedy and Graven No one stepped forward to speak during Open Forum. CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota held a regular meeting on Wednesday, December 19, 2001, at the Cottage Grove City Hall, 7516 80`h Street South. Mayor Shiely called the meeting to order at 7:30 p.m. ROLL CALL Present: Mayor Sandy Shiely Council Member Rod Hale Council Member Cheryl Kohls Council Member Pat Rice Council Member Jim Wolcott Also Present: Ryan Schroeder, City Administrator Ron Hedberg, Finance Director John Mickelson, Public Safety Director Jerry Bourdon, City Engineer, BRAA Les Burshten, Public Works Director John McCool, Senior Planner Michelle Wolfe, Assistant City Administrator Caron Stransky, City Clerk Corrine Thomson, City Attorney, Kennedy and Graven Regular Meeting—December 19, 2001 Cottage Grove City Council Page 2 Mayor Shiely presided over the meeting. ADOPTION OF AGENDA MOTION BY WOLCOTT, SECONDED BY HALE, TO APPROVE THE FINAL AGENDA AS PRESENTED. MOTION CARRIED 5-0. PRESENTATIONS NONE. APPROVAL OF MINUTES A. November 7, 2001 Regular Meeting. B. November 20, 2001 Regular Meeting. Mayor Shiely stated that the minutes stand approved as presented. CONSENT CALENDAR Council Member Hale stated that he had a question on Item C, the 2002 Legal Services Contract with Kennedy and Graven. He asked if they were extending the contract. City Administrator Schroeder explained that it is an existing contract with new provisions for a one-year term. Council Member Hale asked for clarification. City Administrator Schroeder stated that it was their fourth year and he clarified that a 90-day termination clause was included. Council Member Kohls stated that she had questions on Item I, the final plat for Almar Village Townhomes. She referenced a discussion regarding headlights shining into yards and noticed there is no berm along the south property line of the Almar Village project site. She stated that she contacted the Community Development Director regarding the berm and asked if the grading has been completed for the south side edge of the property. Doc Bohlman of Tollefson Development confirmed that the mass grading for the project has been completed. He reviewed a discussion he had with Associate Planner John Burbank and Community Development Director Kim Lindquist with the Council. He explained that the berm and grade elevations along the south property line of the Almar Village site does conform to the city approved grading plan. Council Member Kohls asked if there would be landscaping along the south property line to help shield motor vehicle lights from shining into the existing single family properties. Mr. Bohlman stated that the landscaping would be done based on the plans submitted. He stated that he would provide her with his card if she had any further questions. Council Member Kohls stated that she has questions regarding Item K with respect to a write off of Ambulance Service fees. She stated that it is quite high and acknowledged the explanation provided. She asked Finance Director Hedberg to clarify the policy for collection and any changes. Finance Director Hedberg stated that there are two changes he would like to make, compress the billing review process from 120 days down to one month and review the collection agency. He stated Regular Meeting-December 19, 2001 Cottage Grove City Council Page 3 that often times there are indications that insurance would pay right away and it appears that the collection agency is slipping. Council Member Kohls stated that it appears that they had a good record and that now they don't, and suggested that they go through the process earlier in the year to avoid the write-offs. Finance Director Hedberg confirmed that they are not getting the results and referenced the new employee turnover. He clarified that part of the increase includes the write-offs. He stated that it is for accounting purposes and they are excluding them from the revenues. Mayor Shiely noted that there is an increase in Medicaid that is non-collectable. Finance Director Hedberg confirmed and clarified the reasons for the increase to the Council. MOTION BY WOLCOTT, SECONDED BY RICE, TO: A. ACCEPT AND PLACE ON FILE THE FOLLOWING MEETING MINUTES: i. PUBLIC WORKS COMMISSION FOR NOVEMBER 12, 2001. B. APPROVE THE 2002 EMERGENCY MEDICAL SERVICES CONTRACT BETWEEN THE CITY OF COTTAGE GROVE AND THE TOWNSHIP OF GREY CLOUD ISLAND AND AUTHORIZE THE MAYOR AND CITY ADMINISTRATOR TO EXECUTE THE CONTRACT. C. APPROVE THE 2002 GENERAL LEGAL SERVICES CONTRACT WITH KENNEDY AND GRAVEN AND AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT. D. AUTHORIZE ISSUANCE OF LIQUOR LICENSES FOR 2002 FOR THE FOLLOWING ESTABLISHMENTS: BOONDOCK'S BAR AND GRILL, COTTAGE GROVE VFW POST 8752, ��B FOODS, DEMORI'S, G-WILL LIQUORS, MGM LIQUOR WAREHOUSE, MISSISSIPPI DUNES GOLF LINKS, NEW MOON RESTAURANT AND SPORTS BAR, RAINBOW FOODS, RIVER OAKS GOLF COURSE, RODEO, SHAMROCK LIQUORS AND SUPERAMERICA. E. APPROVE CHANGE ORDER NO. 1 TO THE ALMAR VILLAGE UTILITY AND STREET IMPROVEMENTS CONTRACT WITH HYDROCON INC., FOR A DEDUCT OF $59,860.00 TO DELETE THE PRIVATE DRIVEWAY CONSTRUCTION FROM THE PROJECT. F. APPROVE CHANGE ORDER NO. 2 TO THE ALMAR VILLAGE UTILITY AND STREET IMPROVEMENTS CONTRACT WITH HYDROCON INC., FOR THE INSTALLATION OF PRIVATE STORM SEWER AT THE GROVE PLAZA, WALGREEN'S SITE IN THE AMOUNT OF $49,620.00. G. AUTHORIZE STAFF TO PREPARE PLANS AND SPECIFICATONS FOR THE SCADA SYSTEM UPGRADE PROJECT. H. ADOPT RESOLUTION NO. 01-191, A RESOLUTION APPROVING THE PRELIMINARY AND FINAL PLAT FOR TIMBER RIDGE 2ND ADDITION. I. ADOPT RESOLUTION NO. 01-192, A RESOLUTION APPROVING THE FINAL PLAT KNOWN AS ALMAR VILLAGE TOWNHOMES. J. ADOPT RESOLUTION NO. 01-193, A RESOLUTION CERTIFYING DELINQUENT UTILITY BILLS. Regular Meeting—December 19, 2001 Cottage Grove City Council Page 4 K. ADOPT RESOLUTION NO. 01-194, A RESOLUTION AUTHORIZE THE WRITE-OFF OF COTTAGE GROVE EMS ACCOUNTS RECEIVABLE. L. APPROVE THE APPOINTMENT OF RON HEDBERG, FINANCE DIRECTOR, TO REGULAR FULL-TIME STATUS. M. ADOPT RESOLUTION NO. 01-195, A RESOLUTION ESTABLISHING RATES FOR THE USE OF WATER FURNISHED AND FOR THE USE OF SANITARY SEWER SYSTEM AND OTHER RULES OR REGULATIONS PERTAINING TO THE BILLING THEREOF; REPEALING RESOLUTION NO. 01-190. N. AUTHORIZE THE SOLICITATION OF BIDS TO LEASE 75 GOLF CARS IN THE SPRING OF EACH NEW GOLF SEASON FROM 2002 THROUGH 2O05 FOR THE RIVER OAKS GOLF COURSE. MOTION CARRIED 5-0. Mayor Shiely stated that if anyone is present for issues on the consent calendar all have been passed. RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES NONE. PUBLIC HEARINGS A. Consider Authorizing Issuance of a Massaqe Business License to Jeannie K. Dukic of The Bodv Source, LLC to Operate a Massage Parlor at 7155 80th Street South to Provide Massage and Physical Fitness Training Services. Mayor Shiely opened the Public Hearing at 7:42 p.m. Mayor Shiely closed the Public Hearing at 7:43 p.m. MOTION BY WOLCOTT, SECONDED BY KOHLS, TO AUTHORIZE ISSUANCE OF A MASSAGE BUSINESS LICENSE TO JEANNIE K. DUKIC OF THE BODY SOURCE, LLC, TO OPERATE A MASSAGE PARLOR AT 7155 - 80T" STREET SOUTH TO PROVIDE MASSAGE AND PHYSICAL FITNESS TRAINING SERVICES. MOTION CARRIED 5-0. B. Consider Granting a Drainage and Utility Easement Vacation for Lot 39. Block 2, Almar Villaqe Addition. Senior Planner McCool explained the purpose of the drainage and utility easement vacation and pointed out that a similar blanket easement will be rededicated as part of the Almar Village Townhouse final plat. Mayor Shiely opened the Public Hearing at 7:44 p.m. Nobody spoke. Mayor Shiely closed the Public Hearing at 7:45 p.m. Regular Meeting—December 19, 2001 Cottage Grove City Council Page 5 A MOTION WAS MADE BY WOLCOTT, SECONDED BY HALE, TO ADOPT RESOLUTION NO. 01- 196, A RESOLUTION VACATING A PORTION OF A DRAINAGE AND UTILITY EASEMENT IN ALMAR VILLAGE ADDITION. MOTION CARRIED 5-0. C. Hold Public Hearing and Consider Authorizing Issuance of an On-Sale Intoxicating and Special Sunday Liquor License to Cedarhurst, Inc. Mayor Shiely opened the Public Hearing at 7:46 p.m. Mayor Shiely closed the Public Hearing at 7:47 p.m. MOTION BY RICE, SECONDED BY KOHLS, TO AUTHORIZE ISSUANCE OF AN ON-SALE INTOXICATING AND SPECIAL SUNDAY LIQUOR LICENSE TO CEDARHURST, INC., CONTINGENT UPON APPROVAL OF THE CONDITIONAL USE PERMIT APPLICATION FOR LIMITED VENTURES CONDUCTED AT AN HISTORIC PROPERTY TO ALLOW USE AS A CATERING FACILITY FOR BANQUET EVENTS, SATISFACTORY COMPLETION OF A FIRE INSPECTION, COMPLIANCE WITH STATE AND LOCAL LAWS RELATING TO LIQUOR, AND THAT NO SALE, CONSUMPTION AND POSSESSION OF LIQUOR SHALL BE ALLOWED OUTDOORS EXCEPT ON THE VERANDA. MOTION CARRIED 5-0. D. Hold Public Hearing, Consider Ordering Improvements and Authorizing Bonestroo, Rosene, Anderlik and Associates to Prepare the Plans and Specifications for the Proposed Street Improvements in the 2002 - 2004 Pavement Management Project in the Thompson Grove Neighborhood City Engineer Bourdon stated that they have received a substantial response from the neighborhood meetings. He stated that the information has been posted on the City website and response has been good. He stated that their proposal includes further communication with the residents and reviewed the agreements with the Council. He stated that the feasibility report before the Council comes with a recommendation to bid over a three-year period. He stated that based on comments received, engineering is comfortable in doing this in two years. He suggested changing to an option to bid over a two-year period. Mayor Shiely opened the Public Hearing at 7:48 p.m. There being no public testimony, Mayor Shiely closed the Public Hearing at 7:49 p.m. MOTION BY HALE, SECONDED BY WOLCOTT, TO ADOPT RESOLUTION NO. 01-197, A RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATION, WITH THE OPTIONS RECOMMENDED BY THE CITY ENGINEER. MOTION CARRIED 5-0. BID AWARDS NONE. UNFINISHED AND NEW BUSINESS A. Consider Amending the EDA Bylaws. Mayor Shiely clarified the intent and content of the changes to the bylaws with the Council. Council Member Hale moved to approve, including Items 1 and 3. Regular Meeting—December 19, 2001 Cottage Grove City Council Page 6 Mayor Shiely clarified Council Member Hale's intent for motion to the Council. Council Member Hale stated that there is no argument at the table for Items 1 and 3. MOTION BY HALE, SECONDED BY KOHLS TO AMEND THE EDA BYLAWS AS FOLLOWS: 1. AMEND THE ORDER OF BUSINESS AS CALL TO ORDER, ROLL CALL, APPROVAL OF MINUTES, BUSINESS ITEMS, OTHER BUSINESS AND ADJOURNMENT. 2. ADD A SECTION WITHIN ARTICLE IV MANDATING THAT ALL EDA STRATEGIC PLANS, WORK PLANS AND PROJECTS RECEIVE COUNCIL RATIFICATION AND/OR APPROVAL. MOTION CARRIED 5-0. Mayor Shiely asked for feedback regarding Items 2 and 4. She stated that she did not see any reason not to pass these items. Council Member Kohls stated that she does have concerns regarding Items 2 and 4. Council Member Hale stated that it was not his intent or the Council's, to weaken the EDA but to make the Council more accountable. He explained the role EDA plays in the City of Cottage Grove stating that the citizens are taxed in support of the EDA and that the Council needs a strong responsibility to the EDA. This was not meant to weaken them. He stated that they do a wonderful job adding that the overall responsibility of the EDA is with the Council. He stated that some members of the EDA are not members of the community, which in turn requires the Council to have strong ties with the EDA. He stated that he would support the language changes. The Council decided by consensus to leave Items 2 and 4 as written with no changes and no need for a motion. B. Consider Authorizing Changes in the Marketing/Food Preparation Operation at River Oaks Golf Course City Administrator Schroeder explained the reasons for the changes noting that they have relationships with several catering firms. He stated that there was some discussion about bringing it all in-house and that this is not their recommendation. He stated that they are recommending that they allow continued catering by River Oaks as well as a shorter list of caterers that comply with City policies. He referred the Council to the packet of information provided for their review and reviewed the contents with the Council. He stated that the EDA has asked Staff to make some projections for the long-range needs if in-house catering should begin to grow. Mayor Shiely agreed that it is important to continue providing choices with some element of competition. She noted that others might prefer different caterers noting that if they were full-time they would have to expand the facilities. Council Member Hale stated that they do not know the impact it would have and that they want to go ahead, provide food from our side versus caterers. He explained that they would need to determine what the return on the investment would be before implementing. Mayor Shiely stated that it is important to communicate with River Oaks that they have the right to eliminate any caterer who does not comply with the standards. Regular Meeting—December 19, 2001 Cottage Grove City Council Page 7 MOTION BY WOLCOTT, SECONDED BY RICE, TO AUTHORIZE THE CHANGES IN THE MARKETING/FOOD PREPARATION OPERATION AT RIVER OAKS. MOTION CARRIED 5-0. C. Consider Approval of a Zoning Amendment to Change the Zoning from R-2.5, Residential, to PUD Planned Unit Development; a Preliminary Plat to Create Five Commercial Lots; a Site Plan Review of a Neighborhood Convenience Center with Senior Housing; and Conditional Use Permits to Allow a Gas Station and a Daycare Center on the Northwest Corner of 70`h Street and Hinton Avenue. Senior Planner McCool acknowledged that the audience and Council are probably already familiar with the project and he was available to provide an overview if the council felt it was necessary. Mayor Shiely asked if the Council would like to discuss first or make a motion. Council Member Kohls asked staff to give an overview of the project. Senior Planner McCool explained the zoning amendment request, describing the planned unit development (PUD) proposes. He explained the mixed land uses on the property. He stated that the conditional use permit would apply to the proposed daycare facility and fuel facility and the site plan includes senior housing and retail overall parking. He said that the Planning Commission reviewed these applications at public hearings held in August and November 2001. The planning Commission approved the applications via a 6-3 vote on November 26, 2001. Correspondences from residents objected to the change from low density residential of the property to a commercial land use. Council Member Hale stated that before them are three resolutions and asked for clarification regarding the difference between this type of daycare and an in home daycare. Senior Planner McCool clarified that the daycare is considered commercial with outdoor use and that due to the outdoor use it falls under the conditional use permit. Council Member Kohls expressed concerns regarding the ability for another business to move in should the daycare ever leave and asked if this resolution would hold the developers accountable for only placing a daycare or could another business move into the building. Senior Planner McCool clarified that the developers would be accountable for a daycare and explained that they would need to come back to the City for approval if there are changes regarding the use of the building or the land. Deborah Kopp, 6962 Ideal Avenue South stated that she has been present at every Planning Commission Meeting and that she is not here to argue the legal aspects. She commented on statements made by developers and engineers and explained that they were told it was not about the individual business. She said it is about individual businesses, but is not opposed to doctors and businesses. She does have a problem with another gas station. She stated that the development proposal is not appropriate when there are 30 conditions attached for approval. She thanked the Council and asked for their careful consideration. Dick Hanson, 6918 Homestead Avenue South, thanked the City Council members, particularly Mayor Shiely and Council Member Hale in getting with the City Attorney regarding legal concerns and those involved with the gas station study. He referenced the recent issue of the Bulletin that contained several comments from West Draw residents. He welcomed the West Draw residents and assured them that they are not trying to speak on their behalf. He acknowledged that Council has viewed the Planning Commission meetings and provides a summary of comments made by residents. He addressed the three City processes under consideration. He referenced the homeowners' notification noting that they were not informed of the land use changes or allowed for input on council's intent to Regular Meeting—December 19, 2001 Cottage Grove City Council Page 8 relocate the commercial land use designation to 70th and Hinton. He reviewed the process and timeline with the Council stating that the Almar Village project has been approved and now two more sites are waiting in the wings. He stated that the Planning Commission is split in their decision; homeowners and citizens vary in their opinions and most seem to oppose the commercial land use regardless of size. He stated that this center is not small in scale and that this would be the second largest gas station in Cottage Grove. He asked for a moratorium on all rezoning of neighborhoods until all ordinances and zoning changes have been approved. He stated that the PUD process is not meant to be the primary tool for the City of Cottage Grove or other cities and believes the PUD process is being used too frequently. He stated that Council has to draw the line with no more PUD's. He encouraged the Council to begin addressing their issues and requested elected officials to address his comments, not just a yes or no answer. Jim Chilcott, 6790 Ideal Avenue S, thanked the Council for taking the time to hear their concerns. He stated that most residents commute to other areas of the Metro area but choose to live in Cottage Grove. Chilcott said that placing a large commercial area next to an established residential area causes great concern and affects the character of our community. He explained that there has been inappropriate guiding of this parcel and asked how 80% of the residents of this community were not notified of these discussions. He felt the neighboring residents are not listened to and requested that they be notified ofi meetings being set up to discuss their concerns. He referenced the inappropriate use of the PUD ordinance stating that in this instance every citizen in Cottage Grove is affected by it. He stated that the PUD application is harmful and a negative impact on this community noting that it is the zoning ordinance that creates a livable neighborhood and community. He asked if this PUD would be beneficial. He read a letter dated Oct 24, 2001, that he had received from the City addressing his concerns regarding citizen notification. He explained that the letter included attachments and documents that were available to the public concerning the comprehensive plan process. He stated that the only publication he found was a letter from Mike Rygh to City Staff dated October 12, 1999 requesting a commercial landuse designation on the northwest corner of 70th street and Hinton Avenue. Chilcott said Rygh's letter was a request whereby a public notification to neighboring property owners was not implemented. He reported that he found no article published in the Bulletin concerning the city's consideration to allow a large commercial area at 70`h and Hinton. Mayor Shiely explained that it would be very difficult to pinpoint dates and times. She further explained that throughout the 1990's there were many discussions about this property on the Planning Commission and that it has been considered a potential site for senior housing. She stated that this property has always been considered for some form of commercial development. Mr. Chilcott said he did not find any reference in the West Draw Task Force's final report relative to commercial landuse at 70`h and Hinton. He acknowledged that the City Council had discussed neighborhood commercial landuse designated at a council workshop but that meeting was also full of other controversial issues. He referenced the EDA concepts and asked if it would impact current businesses in the City. He referenced the council's responses to the size of the commercial areas and felt neighborhood convenience centers should be small. He explained that the first time any resident had an opportunity to comment on the location was when a comment was made by a Council Member during the workshop stating that 70th and Hinton would be a better location than 65th and Hinton. Mr. Chilcott said that their petition did not address the PUD application and that they did challenge the use of the PUD early in August 2001. Mr. Chilcott asked several questions regarding the City Attorney's remarks with the size of the parcel. City Attorney Corrine Thomson explained her legal opinion relative to the application process. She further explained that the acreage for this application complies with PUD requirements. Mr. Chilcott Regular Meefing—December 19, 2001 Cottage Grove City Council Page 9 stated that the applicant does not have the correct land area defined and using a PUD for this parcel is not correct. City Attorney Thomson explained that her example was strictly related to how the ordinance is interpreted. She stated that this application complies with the 12 acre minimum area requirements and abuts two minor arterials per the development standards because it is sitting on a minor arterial. Senior Planner McCool reported that the plat consists of 12 gross acres excluding the existing right of way, and the area being developed still exceeds 10 acres. Mr. Chilcott felt the property is not in a transition area between difference land use categories and therefor a PUD is not appropriate. City Attorney Thomson reiterated her previous comment that she is not making the determination that this property is located in a transitional area, but the application complies with the development standards imposed by city ordinances. Mr. Chilcott reviewed the City's response to the citizens regarding the legality and minimum requirements for PUD and interprets City Attorney's opinion to mean there is a different land use. City Attorney Thomson clarified that Mr. Chilcott has misinterpreted her explanation and emphasized that the property does not have to be located in a transitional area. Mayor Shiely reiterated City Attorney Thomson's comments and clarified that the transitional area is moot. Mr. Chilcott said the interpretation is based on the language and use of the words 'or' and 'and'. He suggested that the reason for the type of response from staff might be because they did not want to address the issues with Council. City Attorney Thomson said Mr. Chilcott is misinterpreting what she and what staff have stated. She again explained her interpretation and stated that Mr. Chilcott apparently disagrees with her legal opinion . Mr. Chilcott presented his interpretation of the code and PUD ordinance noting that the City has provided an erroneous opinion. He explained that the PUD states any portion of the PUD must match the residential guiding of the property and that there is clearly a legal issue here. City Attorney Thomson stated that she has not reviewed all of the ordinances and that she does not want to comment without reviewing. Mayor Shiely supported City Attorney Thomson and agreed she needs an opportunity to prepare for this discussion. Mr. Chilcott requested that this application be denied because it is not in compliance with the Comprehensive Plan. He restated that the use of the PUD and high-density zoning would allow the City to misuse the change in land use guiding. He asked the Council to address the issue and asked if they are committed to the land use guiding as it applies to this request. He asked that they reduce the number of pumps down to two, decrease the size of the store and deny the application. Mayor Shiely stated that she read in today's Bulletin that the Council had turned their backs and is not listening to the citizens of Cottage Grove. She stated that they have listened this evening. Mr. Chilcott acknowledged Mayor Shiely and thanked the Council for their time. Mayor Shiely called a break at 9:23 p.m. Mayor Shiely called the meeting back to order at 9:35 p.m. Regular Meeting—December 19, 2001 Cottage Grove City Council Page 10 Mike Rygh, 8235 River Acres Road, stated a PUD provided better control for the City. He acknowledged that the citizens are not happy with the proposed PUD and explained that it would provide more control as to what can go into this area. Mayor Shiely referenced earlier comments regarding the number of conditions recommended to approving the PUD which clearly shows that the City has reviewed the PUD. Mr. Rygh agreed and explained the process noting that more stipulations are applied with the PUD and that by utilizing a straight zoning of the property would not be as restrictive. Mr. Rygh referenced the issues regarding the amount of housing versus commercial. He stated that they reviewed the needs of the community and based on the results they are adding an additional 10% in household, which creates a need for additional services. He explained that 80th Street is congested and that adding an additional 10% in population, without the services, would only make the congestion worse. He stated that the most important criteria considered when looking for senior housing are the services that are available in the area. He explained that the daycare would be needed due to the increase in households and the increase in market demand. In the West Drawn area he stated that the commercial area is 4.1 acres and that it includes an arterial street. He said their project is very similar in size to a development such as The Seasons in Woodbury. He referenced the gas/convenience center and stated that they would like to provide a service that would benefit the neighbors. Mr. Rygh said between 4 and 6 gas pumps would be adequate. He explained that he would build a quality center that looks nice. He stated that this is a key parcel in the area and that this is a great place to develop a mixture that includes commercial and senior housing. Council Member Kohls asked Mr. Rygh to display the layout showing the locations intended for the � senior housing, the daycare and the convenience store. Mr. Rygh provided a review of the layout with the Council. Council Member Kohls asked for Mr. Rygh's thoughts on the kind of tenants for this location. Mr. Rygh stated that it could be a combination of businesses such as a dentist, a deli, and a daycare. Joe Fogerty, 513 Mariner Drive, Bayport, agreed with Mr. Rygh and stated that a general mix could include a doctor, a deli, and a professional service. He stated that the tenant mix would be a little different than The Seasons since that sight is located next to a large, commercial area. Mayor Shiely asked Mr. Rygh to clarify the type of gas station they are considering, the number of pumps and how it would look in appearance. Mr. Fogerty addressed Mayor Shiely's questions stating that they would design the station based on the architectural controls. He explained that there would be covenants and restrictions. Council Member Wolcott referenced the possibility of the pumps facing the interior street. Mr. Rygh clarified the location of the building, the car wash and the pumps for the Council. He stated that this is open for discussion. He acknowledged the Council's need to solidify the process as much as possible stating that if they do not make the space now, the need for services will be pushed further away from the Community. Council Member Hale asked how the seniors would access the convenience store and the proposed commercial buildings. Mr. Rygh explained that they have stipulated an 8-foot sidewalk on the interior streets with crosswalks for safety. He stated that with the PUD they can specify the location of the sidewalk and suggested that they place it on the interior for safety purposes. Regular Meeting—December 19, 2001 Cottage Grove City Council Page 11 Senior Planner McCool clarified the process they took to determine the density and recommended that Council defer actions on the density issue until the January 2, 2002 City Council Meeting. He explained that this would give them an opportunity to provide a response prior to the meeting. Mr. Chilcott agreed and suggested a Community meeting versus a City Council forum. He referenced the 60-to-120-day expiration and asked if it could be extended. Senior Planner McCool stated that it could be extended with the applicanYs approval. Mr. Rygh stated that each unit would have unique requirements and maintenance issues to consider. He suggested that they take careful consideration and remain flexible with any process brought forward to address the senior housing density issues. MOTION BY WOLCOTT, SECONDED BY HALE TO TABLE FURTHER DISCUSSION TO THE JANUARY 2, 2002 CITY COUNCIL MEETING TO ALLOW THE CITY PLANNER AND CITY ATTORNEY TO WORK OUT A RESPONSE ON THE DENSITY ISSUES. MOTION CARRIED 5-0. Mayor Shiely suggested an early start for the January 2, 2002 meeting and asked Mr. Chilcott to notify the neighbors of the date and time. D. Consider Approval of a Conditional Use Permit for Limited Commercial Ventures Conducted at an Historic Property, Cedarhurst, to Allow Continued Use as a Catering Facility for Banquet Events. Senior Planner McCool stated that this application relates to Mr. Tao wanting a liquor license on premise. He explained that Mr. Tao's intent is not to operate any differently than the last five years, except to be allowed a liquor license at the premises. Xaua Tao, 6940 Keats Avenue, owner, stated that he and his family live at Cedarhurst and he asked for the Council's approval for a Conditional Use Permit. He reviewed the location of the property and described that it has been used for a variety of groups and would continue the previous tradition. He assured the Council that they have no intention to expand the facility or turn it into a public restaurant or bar. He reviewed the historical aspect of the building. He thanked the Council for their consideration. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION NO. 01-198, A RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR LIMITED COMMERCIAL VENTURES CONDUCTED AT AN HISTORIC PROPERTY LOCATED AT 6940 KEATS AVENUE SOUTH. MOTION CARRIED 5-0. E. Consider Approval of the Feasibility Report and Ordering the Preparation of Plans and S�ecifications for the 80th Street Redevelopment Project (Hardwood Corridor and the Kohl's Site). City Administrator Schroeder explained that this project has two feasibility studies. He stated that they had asked for a tabling of the discussion when it first originally appeared on the agenda. He explained that they have determined that the two projects were linked and that if the 80th Street project does not go forward they would have to revisit the Hardwood project. He stated that they are requesting that they look at this as one project and be allowed to proceed with the Hardwood development and the redevelopment of 80th Street. Council Member Hale asked if a Public Hearing was done to discuss the preliminary plans and if the public has been notified. City Administrator Schroeder stated that it is not required and confirmed that the public had been notified. Council Member Kohls stated that she has contacted several Residents and that they said they were not notified. Regular Meeting—December 19, 2001 Cottage Grove City Council Page 12 Council Member Hale stated that he is uncomfortable with supporting this without a Public Hearing. He referenced the costs and explained that this entire thing is contingent upon Kohls coming to Cottage Grove. He agreed that they would need some realignment to Hardwood and expressed concerns stating that if Kohls doesn't happen, they have invested a lot of time and money. He stated that he would like to see something in writing from Kohls before moving forward. Mayor Shiely asked for clarification on the $10 million. Council Member Hale clarified for the Council and asked for some form of printout that provides an analysis that would show how much they would receive from Kohls to pay for this project. He further explained that it would also include how much they would receive from Kohls for a TIF district. He noted the depressed economy and asked if Kohls is in the same place today as they were when this started. He stated that he would like some form of commitment and acknowledgement of the costs and that they are still planning to come through on the project. City Administrator Schroeder explained that Kohls is in the process of working with Staff to provide the site plan specifications. He stated that he is not sure if all of the information has been received. Senior Planner McCool clarified that all information has been received and would be presented at the January 28, 2002 Planning Commission meeting. City Administrator Schroeder stated that they have had considerable discussion and stated that Kohls told them that they have 60 stores proposed in their budget for 2002. He stated that this project is important to Kohls and they would be moving forward. He stated that the numbers are the same or similar to what is in the feasibility study with one large exception, which is the land transaction. He explained that the land transaction is not subject to the feasibility study but that it is a part of the development agreement with Kohls. He stated that they have a $2.6 million cap with Kohls being responsible for the remaining portion. He reviewed the MSA and land acquisition responsibilities, costs and process with the Council. He stated that the Storm Fund would pay for anything that is stormwater related. He explained that in this table it is suggested that the tax increment would subsidize the storm water expenses and he reviewed the information with the Council. Council Member Hale expressed his concerns regarding the MSA funds. He reviewed the projects approved and their costs noting that this would soak up the majority of MSA dollars. He stated that he would like to see Kohls absorb some of these costs. City Administrator Schroeder clarified the division of responsibilities between the City and Kohls for the Council. Council Member Hale stated that there is nothing beyond the $2.6 and asked for clarification. City Administrator Schroeder explained that this amount is capped. He stated that they would still pay the maximum $2.6 and Kohls would be responsible for the $1.6 million plus any additional costs. He stated that the numbers they are working with is the $2.6 and explained the funding to the Council. Council Member Hale expressed concerns that there would be further expenses beyond the $2.6. City Administrator Schroeder clarified that they are not responsible for anything over the $2.6 and Kohls would address any expenses over the $2.6. Council Member Hale asked for further clarification on what Kohls is paying for. City Administrator Schroeder explained that Kohls is paying for the land, the preparation for land and the risk for the high side. He stated that the City's exposure is capped at $2.6 million. Council Member Kohls stated that it appears there is a gap in the numbers. City Administrator Schroeder stated that their exposure is the $2.6 million and that the City is not responsible for anything over that amount. Regular Meeting—December 19, 2001 Cottage Grove City Council Page 13 Mayor Shiely clarified that everyone has concerns and expressed her agreement with Council Member Hale. She expressed concerns noting the risk and the possibility that Kohls could decide it is too expensive and decide to leave. City Administrator Schroeder explained that in the development agreement Kohls is obligated to provide their intent to proceed or not proceed and that they have been provided a deadline for their response. Mayor Shiely asked if once this was in place, would the City have legal recourse. City Administrator Schroeder confirmed that they would have legal recourse. Council Member Hale asked for further clarification and asked if the numbers work out to the $2.6 maximum. He stated that the numbers do not appear to be realistic. City Administrator Schroeder clarified that the land acquisition exposure is $1.6 million and the total is $2.6 million. He clarified what is included in the numbers for the Council and stated that once they hit the $2.6 million maximum the City is done, Kohls picks up the remainder of the costs. Mayor Shiely asked for clarification as to why they wouldn't wait until their due date for their commitment after which they would have legal recourse. City Administrator Schroeder explained that they are obligated to hand over the property by June 5, 2002 and that in order to meet this commitment there are several things that need to be accomplished. He stated that the obligation to provide go/no go comes from both and clarified the needs to the Council. He explained that they need to clarify they are in agreement. Council Member Hale expressed concerns regarding the notification of Residents. City Administrator Schroeder acknowledged that he did not notify anyone of this meeting but that he has had several communications with Residents in an effort to keep them informed of the project. Council Member Wolcott stated that he is willing to spend a few thousand dollars to go ahead with the plans and specifications. He explained that this would provide some of the answers and actual figures that they need to review the costs. Council Member Kohls asked for clarification on the timeframe and activities. City Administrator Schroeder reviewed their progress with the Council. He stated that from an engineering standpoint it is very difficult to determine the requirements for a project like this and make things balance. Council Member Kohls acknowledged Council Member Wolcott's willingness to spend a few thousand dollars and asked City Engineer Bourdon to clarify the costs for the City. City Administrator Schroeder stated that it would depend on how far it gets before they say no. City Engineer Bourdon clarified that this is a very complicated project and reviewed the costs with the Council. Council Member Kohls asked City Administrator Schroeder if they would be having this discussion if Kohls was not coming to Cottage Grove. City Administrator Schroeder explained that the Kohls project is a direct cause for the change from the original plan and that the road is being redesigned to address the access issues. Council Member Kohls provided a map and asked for clarification on the access issues to other areas. City Administrator Schroeder reviewed the East Point Douglas reroute with the Council and provided a visual map of the realignment for their review. Council Member Kohls stated that she has a large concern with taking three years of MSA dollars for this project. She asked for clarification stating that if they take the money for this project, how would they make up the difference if they do not have dollars available for another project. City Regular Meeting—December 19, 2001 Cottage Grove City Council Page 14 Administrator Schroeder stated that when they last discussed this issue they had approximately $1 million in the MSA and $1.5 million would be added during 2002. He stated that it would use dollars from 2001 through 2003. He explained that they would have to allocate dollars for the Hadley project and that if this project happens before 2004, they would have to borrow the dollars. He further explained that this would push off the expansion of 100th & Hadley, which is beyond the current Comprehensive Plan. Council Member Wolcott acknowledged Council Member Kohls concerns stating that this is the same thing they had to do with the Hadley project and explained the process they took to the Council. He stated that they would need to get approval to borrow any money. City Engineer Bourdon stated that they could borrow ahead at no interest or get an advance to cover the funding. Council Member Hale asked if they are even, ahead or borrowing. City Administrator Schroeder stated that they have $1 million available now and that if they receive the additional funding they would be ok with both projects. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION NO. 01-199. A RESOLUTION APPROVING THE FEASIBILITY REPORT AND ORDERING PREPARATION OF PLANS AND SPECIFICATIONS FOR THE 80T" STREET REDEVELOPMENT PROJECT (HARDWOOD CORRIDOR AND THE KOHLS SITE). MOTION CARRIED 5-0. F. Consider Authorizing the City Administrator to Enter into a Contract with IAC for Ice Arena Advertising Services Upon Review and Approval of the Proposed Contract by the City Attorney. Zac Dockter explained the proposal to the Council. He stated that they are trying to help the organizations with the services noting that they are not pushing hard on this issue. He stated that the advertising space is not being taken advantage of and that the City would like to help boost for a new source of revenue. He reviewed the cost of the wall space ads with the Council. He reviewed the conditions and issues with the Council. Mayor Shiely clarified that they are asking for a motion on three separate items. Mr. Dockter confirmed that this is what they are requesting and clarified for the Council. Council Member Rice asked if they have any projections on what would be gained. Mr. Dockter stated that there is a potential for$30,000 and that it would depend on how the Community responds. Council Member Rice asked for clarification on the maintenance. Mr. Dockter stated they would be responsible for all maintenance. MOTION BY KOHLS, SECONDED BY RICE, TO AUTHORIZE THE CITY ADMINISTRATOR TO ENTER INTO A CONTRACT WITH IAC FOR ICE ARENA ADVERTISING SERVICES UPON REVIEW AND APPROVAL OF THE PROPOSED CONTRACT BY THE CITY ATTORNEY AND TO SET THE ADVERTISING PRICE AT $1,000 AND THAT ALL DASHER BOARDS WOULD BE PURCHASED THROUGH IN ARENA COMMUNICATIONS (IAC). MOTION CARRIED 5-0. RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND QUESTIONS NONE. COUNCIL COMMENTS AND REQUESTS Regular Meeting—December 19, 2001 Cottage Grove City Council Page 15 Mayor Shiely stated that she would like to make Council appointments at the January 2, 2002 meeting. She asked the Council to provide her with their interests and requested that they schedule their workshop meeting. City Administrator Schroeder stated that the EDA has a meeting scheduled for January 8, 2002 that would be dealing with strategic planning. He suggested making the results of this meeting a part of their workshop discussion. Council Member Hale asked if they were committed to another neighborhood meeting prior to the January Council meeting. Mayor Shiely clarified that they are going to have the neighborhood meeting on the same evening, prior to the Regular Council meeting. City Administrator Schroeder stated that Assistant City Administrator Wolfe and Director Public Safety Mickelson have put together a recruitment process and would like feedback from the Council. Assistant City Administrator Wolfe stated they have received 27 responses noting that the candidates have been closed. Mayor Shiely stated that she would like to wish everyone a Happy Holidays from the Cottage Grove City Council. PAY BILLS MOTION BY WOLCOTT, SECONDED BY HALE, TO APPROVE PAYMENT OF CHECK NUMBERS 121675 TO 121856 TOTALING $453,379.66. MOTION CARRIED 5-0. WORKSHOP SESSION —OPEN NONE WORKSHOP SESSION — CLOSED NONE ADJOURNMENT MOTION BY WOLCOTT, SECONDED BY HALE, TO ADJOURN THE MEETING AT 11:00 P.M. MOTION CARRIED 5-0. Respectfully submitted, Bonita Sullivan TimeSaver Off Site Secretarial, Inc.