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HomeMy WebLinkAbout2015-05-06 PACKET 04.A.i. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # � " DATE 5/6/15 • / . . PREPARED BY: Community Development Jennifer Levitt ORIGINATING DEPARTMENT STAFF AUTHOR * * * � * * * * * � � � * * * * * * * * * * * * * * * * * * * * � * * * * * * * * * * * * * * * COUNCIL ACTION REQUEST: Receive and place on file the approved minutes for the Planning Commission's meeting on March 23, 2015. STAFF RECOMMENDATION: Receive and place on file the approved Planning Commission minutes for the meeting on March 23, 2015. BUDGET IMPLICATION: $N/A $N/A N/A BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE ADVISORY COMMISSION ACTION: DATE REVIEWED APPROVED DENIED � PLANNING 4/27/15 ❑ � ❑ ❑ PUBLIC SAFETY ❑ ❑ ❑ ❑ PUBLIC WORKS ❑ ❑ ❑ ❑ PARKS AND RECREATION ❑ ❑ ❑ ❑ HUMAN SERVICES/RIGHTS ❑ ❑ ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS: ❑ MEMO/LETTER: ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: � OTHER: Planning Commission minutes from meeting on March 23, 2015 ADMINISTRATORS COMMENTS: i � JI � F` t 1 ' t t' + �� �� , �� � t h� Y �F'� City Administrator Date * * * * * * * * * * � * � * * * * * * * * * * * * * * * * * * * * * * � � * * * * * * * * * * * COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER City of Cottage Grove Planning Commission March 23, 2015 A meeting of the Planning Commission was held at Cottage Grove City Hall, 12800 Ravine Park- way South, Cottage Grove, Minnesota, on Monday, March 23, 2015, in the Council Chambers and telecast on Local Government Cable Channel 16. Call to Order Chair Brittain called the Planning Commission meeting to order at 7:00 p.m. Roll Call Members Present: Ken Brittain, Justin Fox, Adam Graf, Kimberly Graff, Wayne Johnson, Kathy Kline, Jim Rostad, Roger Zopfi Members Absent: Chris Reese Staff Present: Jennifer Levitt, Community Development Director/City Engineer John M. Burbank, Senior Planner John McCool, Senior Planner Zac Dockter, Parks and Recreation Director Robin Roland, Finance Director Justin Olsen, City Councilmember Approval of Agenda Graf made a motion to approve the agenda. Johnson seconded. The motion was approved unanimously(8-to-0 vote). Open Forum Brittain asked if anyone wished to address the Planning Commission on any non-agenda item. No one addressed the Commission. Chair's Explanation of the Public Hearing Process Brittain explained the purpose of the Planning Commission, which serves in an advisory capacity to the City Council, and that the City Council makes all final decisions. In addition, he explained the process of conducting a public hearing and requested that any person wishing to speak should go to the microphone and state their full name and address for the public record. Public Hearings and Applications 6.1 Park Dedication Fees — Case TA2015-007 The City of Cottage Grove has applied for a text amendment to the City's Subdivision Ordinance, City Code Title 10-4-3C, Schedule of Park Dedication Requirements, to increase Planning Commission Minutes March 23, 2015 Page 2 of 7 the cash amount required to be paid in lieu of a land dedication for subdivision of residen- tial land from $3,200 to $3,400. Dockter summarized the staff report and recommended approval. Johnson asked if this increase would not cover the deficit that has occurred as a result of the decrease in 2012. Dockter responded that is correct for the two examples in the staff report. For each development the City negotiates land dedication versus cash payment in lieu of ded- ication. Johnson asked about the long-term plan. Dockter responded that typically park dedication fees are looked at every year but may have to be reviewed more frequently. He explained that the city wants to keep the fees down to get developers in. In some cases, a developer will pay cash in lieu of land if the development is small and there will not be a park. Also fees are collected for the park dedication fund when a commercial property is developed. Johnson asked if the City prefers land for parks or park funds. Dockter responded that there is master plan for parks, such as in the East Ravine which has four neighborhood parks and one community park. When a development is being reviewed, it is decided whether there will .be a land dedication, fees in lieu of land, or a combination of both, following the park master planning process. Rostad asked about the park financing in the DR Horton project. Dockter explained that money collected for park dedication is only used for one very specific purpose, which is park devel- opment. That money can be used to buy land or to develop the park, but cannot be used to maintain existing parks. Rostad asked if the money for park development is in a dedicated fund and not from the general budget. Dockter stated that the money is placed in a Park Trust Fund. Graff asked how this increase would affect the developments that have already been in the planning process. Dockter responded that the new fees would take effect when the City Coun- cil adopts the ordinance amendment, and any agreements that are already in place would be honored. Burbank stated that language in subdivision approvals states that the amount paid for park dedication fees is at the rate in effect at the time of final plat approval. Zopfi asked how much is in the reserve fund. Dockter responded that he does not know the balance but all the money in the park dedication fund has been spoken for. The City has Capital Improvements Plan which shows where all the dollars are allocated. Rostad asked if the same funds are used for replacement of park equipment. Dockter re- sponded that the park dedication fund does not cover maintenance and replacement of park equipment, but it would cover new additions to existing parks or a complete renovation. Graf stated that the City of Cottage Grove is under the median and asked why the proposed amendment would not increase to match the median for park fees. Dockter responded to be competitive in the market; the City usually stays below the median for park dedication fees. Brittain stated that it seems that the idea is not to recover 100 percent of the cost of park construction from the residential developments because funds are also collected for commer- cial and other developments. Planning Commission Minutes March 23, 2015 Page 3 of 7 Graff asked why this fee was reduced fairly significantly in 2012. Dockter explained that the fee is figured using the equation on page 1 of the staff report, which takes into account current property values. Johnson asked how Cottage Grove compares to other cities on the amount of park fees charged for commercial development. He also asked if the park dedication fee could impact whether businesses locate in the City. Dockter responded that basing the fee on a percentage allows adjustment based on the cost of the property, and the commercial amount can be negotiated between the City Administrator and the developer. Brittain opened the public hearing. No one spoke, Brittain c/osed the public hearing. Fox made a motion to recommend approval of the text amendment. Gratf seconded. Motion passed unanimously(8-to-0 vote). American AGCO has applied for site plan approval for the construction of a 96,000 square foot warehouse and light industrial use that will be attached to the west side of AGCO's existing building at 7800 97th Street South. McCool summarized the staff report and recommended approval subject to the conditions stipulated in the staff report. Graff asked if City staff has any concerns about the location of the underground diesel storage tank next to the pond and stormwater basin drainage. McCool responded that there are design standards that they would have to abide by. The applicant has met with the Public Safety Department as to what those design requirements are. Rostad asked if the scale on the site would have a significant impact on traffic on 97th Street and if it would only be used by AGCO trucks or could other entities use the scale. McCool responded that the applicant has evaluated their needs for the site, which is why they placed the scale at the west end of the building. Rostad noted that condition #3 prohibits outdoor storage, but mentions the bulk fuel storage tank. McCool stated that the tank will be under- ground. The outdoor storage reference prohibits pallets and materials outside but storage of trailers and the bulk fuel storage tank are excluded. The bulk storage for motor fuel will be outside the building but underground. Graff stated that the City has heard concerns about access onto 95th Street due to commercial traffic and asked if this proposed project would increase the traffic flow on 95th Street. McCool responded that the primary access to the property is 97th Street, which connects to Jamaica Avenue. He believes 99 percent of the truck traffic will use the 97th Street connection to Jamaica to get to Highway 61. He does not envision that there will be any traffic on 100th Street or 95th Street. He explained that 97th Street currently dead ends and there will be a city project to extend 97th Street to Hemingway Avenue. Graff asked about traffic impacts to the Jamaica Avenue roundabouts and if any traffic studies have been done for that area. McCool responded that when the roundabouts were proposed, the future traffic for the Cottage Grove Business Park was calculated in the design for the roundabouts. Geoffrey Benedict, Vanguard Construction, introduced John Duclos, President of American AGCO and its related companies, and Russ Rosa, project architect. Planning Commission Minutes March 23, 2015 Page 4 of 7 John Duclos, President of American AGCO, 7900 and 7800 97th Street, stated that as far as how their expansion will impact traffic, there will be a little bit of an increase but not proportion- ate to the amount of increased parking spaces, which are just to help the existing parking that they have and is a little over capacity for what they are dealing with. Kline made a motion to approve the site plan subject to the conditions listed in the staff report. Rostad seconded, Motion passed unanimously(8-to-0 vote). 6.3 TIF District No. 1-15 — Case CP2015-009 The City of Cottage Grove and the Economic Development Authority are requesting review of the modification to Tax Increment Financing District No. 1 (creating TIF District No. 1-15 for the expansion of American Logistics within the Cottage Grove Business Park) for con- formance to the City's comprehensive plan. (This application does not require a public hearing.) Roland provided an overview of tax increment financing, summarized the staff report, and recommended that the Planning Commission adopt a resolution finding that this particular pro- ject conforms to the Comprehensive Plan and recommends that the City Council finds that it is a viable project under the Comprehensive Plan. Brittain summarized that the intent of tax increment financing is to capture new taxes above and beyond what is being collected in an area with an existing tax base to finance improve- ments, which in the long-term will provide more taxes to the general fund. Roland responded that was correct, stating that "but for" this particular incentive, the project would not occur. In this particular case, there were discussions that this expansion may not happen in Cottage Grove but somewhere else. Brittain asked if the project is not done, the taxes would stay the same. Roland stated that was correct. Brittain noted that if the project is done using TIF, it is for a defined period of time and after that time period, the taxable value of that area due to the improvements would continue to benefit. Roland agreed. Johnson asked what protections are there if before the business closes or is bought out before the time period ends. Roland responded that if that happens, the TIF District ends and the taxable districts get their money as the property would still be paying taxes. If the property were sold, the new owner would have to pay the taxes on it. Johnson expressed concern about companies taking incentives and then closing. He then asked if the property tax value of the property is the same when there is not an operating business on it. Roland explained that the City of Cottage Grove utilizes minimum assessment agreements in which when the developer signs the development agreement they are also required to sign a minimum assessment agreement so that the tax base for that particular building cannot fall below a certain amount. Rostad asked in Johnson's scenario if a business is sold and moved, is there a risk that the City may not be able to collect the larger rate but get only the normal share of those taxes. Roland r esponded that if the business is no longer at the location, the City would be required to decertify the TIF District because the agreement is with a particular property owner. If the business is sold, the process would then start over with the new owner, but it would probably not have the minimum assessment agreement. Rostad asked if it was the same property owner but they moved their operations, would the TIF end because they are no longer using Planning Commission Minutes March 23, 2015 Page 5 of 7 the property for the designated purpose. Roland responded it would not meet the criteria that were outlined in the TIF agreement, which is a very specialized document and has to be fol- lowed in order for the City to continue to collect TIF. Graf asked if the City has ever had to end a TIF prior to the scheduled timeframe. Roland responded in a couple of cases but itwas because, although TIF was certified, no development happened in the knockdown period, the improvements did not take place, and expenses were not incurred, so the district was shut down because it did not meet the criteria. Olsen explained that TIF is a contract that is statutorily guided and protects the issuing author- ity, which in this case is the City of Cottage Grove, from any sort of disparate consequence because of the way the statute is written. There are a lot of other tools that communities use to encourage development, including forgiving taxes; Cottage Grove does not do that. Instead, we choose to utilize the TIF model whenever it is appropriate. The City's attorneys put the contracts together to ensure that we are protected and there are alternate ways of receiving what is owed. This tool has been very effective for the City for many years in terms of encour- aging growth and development. He wants to assure the Commission that these TIF agree- ments are examined very closely before they are moved forward so that the City and other taxing districts are protected. Gratf made a motion that the Planning Commission adopt Resolution No. PC2015-001, which finds the proposed modification to TIF District No. 1 is in conformance to the City's comprehensive plan. Graf seconded. Motion passed unanimously(8-to-0 vote). Discussion Items 7.1 All Commission Meeting — Saturday, March 28, 2015 Levitt encouraged all Commissioners to attend the All Commission Meeting on Saturday, March 28, in the Training Room at City Hall. She stated that there will be presentations, par- ticularly on the Council's goals and objectives for 2015 along with four breakout sessions to receive feedback to staff. Approval of Planning Commission Minutes of February 23, 2015 Graf made a motion to approve the minutes from the February 23, 2015, Planning Com- mission meeting. Graff seconded. Motion passed unanimously(8-to-0 vote). Reports 9.1 Recap of March City Council Meetings Levitt reported that at the March 4, 2015 City Council meeting, the Council approved the ordi- nance amendments to City Code Title 8-5, Stormwater; Illicit Discharge and Illicit Connection, and Title 11-6-12, Grading, Filling or Excavation. At the March 18, meeting, the Council ap- Planning Commission Minutes March 23, 2015 Page 6 of 7 pointed three new Planning Commission members and the Planning Commission Chair; for- mally adopted the City's code enforcement policy; and awarded the bid for the 2015 Pavement Management Project, which came in about $1 million below the engineer's estimate and includes the 97th Street extension to Hemingway Avenue. Olsen welcomed Justin Fox, Kathy Kline, and Roger Zopfi as new members of the Planning Commission. He reported that in the Business Park, in addition to the expansion of American AGCO, Werner Electric has announced an expansion that should result in about 70 new jobs; Andersen Windows made a presentation to the Council about a possible expansion that would add about 200 new jobs over the next three years; and there are possibilities of expansion to other businesses. He stated that there could also be announcements coming soon regarding the Home Depot and Rainbow sites. He noted that at the All Commission Meeting on Saturday, there will be an opportunity to talk about the financial wherewithal of the City. He announced that on April 4 at the Ice Arena, there will be an Easter Egg Hunt. Johnson asked if the turf at the ice arena would be permanent. Olsen responded that the turf is seasonal and will be on the dry floor side of the arena from March until the fall. Johnson asked if the arena could be permanently turfed. Olsen responded that the City does pretty well financially from ice time and does not see that being done in the foreseeable future. Graff stated that a goal of Parks staff is to have an indoor arena. Rostad asked about the 70th Street Open House. Levitt responded that Washington County will hold its first open house on the proposed improvements to 70th Street from Highway 61 to Jamaica on Wednesday, March 25, from 4:30 to 7:00 p.m. at the Washington County South Service Center. The County engineering staff will be there to listen to any concerns, questions, or issues from the public regarding the 70th Street corridor. On April 29 there will be another open house regarding improvements to 70th Street from Jamaica to TH95. Graff asked if the City had any indication that Famous Dave's was closing before it happened. Olsen responded no. Graff provided some feedback she received from citizens, which included parking issues. There was discussion regarding parking for that location. Burbank reported that the Advisory Committee on Historic Preservation is selling Community Cookbooks, which includes recipes from local residents and historical information on Cottage Grove. The cookbooks are $15 and are on sale at City Hall and at the Strawberry Festival. 9.2 Response to Planning Commission Inquiries None 9.3 Planning Commission Requests None 9.4 Annual Organizational Meeting Planning Commission Minutes March 23, 2015 Page 7 of 7 Accept 2014 Planninq Commission Rules Graff made a motion to accept the 2015 Planning Commission Ru/es. Rostad seconded. Motion passed unanimously(8-to-0 vote), Election of Officers Olsen stated that Graff volunteered for Vice Chair. There were no other nominees. The nom- ination of Graff as Vice Chair of the Planning Commission was approved by unanimous consent. Olsen asked if Johnson is interested in continuing to serve as Secretary. He agreed. There were no other nominees. The nomination of Johnson as Secretary of the Planning Com- mission was approved by unanimous consent. Adjournment The meeting was adjourned at 8:50 p.m, by unanimous consent.