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HomeMy WebLinkAbout2016-05-04 PACKET 07.B. Cottage J Grove ��er� Pride and Qro�P�rity Me�t Clt�/ COUI'1CII CONSENTAGENDA Acfion Request Form �'B' Meeting Date 5/4/2016 Department Administration Title of Request City Council Meeting Minutes - 4/6/2016 Regular Meeting Staff Recommendation Approve the 4/6/2016 City Council regular meeting minutes. ATTACH MENTS: Description Type Upload Date Draft Minutes Backup Material 4/22/2016 Cottage J Grove �here Pride and Pr�sperity Meet MINUTES COTTAGE GROVE CITY COUNCIL COUNCIL CHAMBER 12800 RAVINE PARKWAY SOUTH April 6, 2016 REGULAR MEETING - 7:00 P.M. (COUNCIL CHAMBER) 1. CALL TO ORDER — Mayor The City Council of the City of Cottage Grove, Washington County, Minnesota, held a regular meeting on April 6, 2016, at Cottage Grove City Hall, 12800 Ravine Parkway South. Mayor Bailey called the meeting to order at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE The audience, staff, Mayor and City Council Members recited the Pledge of Allegiance. 3. ROLL CALL — City Clerk The following were present: Mayor Myron Bailey, Council Member Steve Dennis, Council Member Justin Olsen, Council Member Jen Peterson, Council Member Thiede. Also present were: Charlene Stevens, City Administrator; Korine Land, City Attorney- LeVander, Gillen & Miller, PA; John Burbank, City Planner; Ryan Burfeind, Project Engineer; Les Burshten, Public Works Director; Joe Fischbach, HR Manager/City Clerk; Jennifer Levitt, Community Development Director/City Engineer; Sharon Madsen, Communications Coordinator; John McCool, City Planner; Robin Roland, Finance Director; Craig Woolery, Public Safety Director 4. OPEN FORUM Mayor Bailey asked if anyone in the audience wished to address the Council on any item that was not on the agenda. As no one wished to address the Council, Mayor Bailey closed the Open Forum. Mayor Bailey presided over the meeting. 5. ADOPTION OF AGENDA CITY OF COTTAGE GROVE • 12800 Ravine Parkway • Cottage Grove, Minnesota 55016 www.cottage-grove.org • 651-458-2800 • Fax 651-458-2897 • Equal Opportunity Employer Cottage Grove City Council April 6, 2016 Page 2 Motion by Council Member Olsen, second by Council Member Thiede, to adopt the agenda as presented. Motion carried: 5-0. 6. PRESENTATIONS - None. 7. APPROVAL OF MINUTES A. March 16, 2016 Special Meeting. B. March 16, 2016 Regular Meeting. Mayor Bailey and the Council Members approved the minutes as presented. 8. CONSENT CALENDAR Council Member Olsen wished to pull Item G for discussion. He stated the resolution before the Council to proclaim April 10 — 16 as Volunteer Week in the City of Cottage Grove was essentially a way to thank all of the people who donate their time and talent to make Cottage Grove a better place to work, live, or play. There will be a Volunteer Banquet on April 12, at the River Oaks Golf Course; the Volunteer of the Year will be announced at that time. He thanked all of the volunteers for making Cottage Grove such a wonderful community. A. Accept and Place on File the Parks, Recreation and Natural Resources Commission Meeting Minutes from 2-08-2016. B. Authorize the purchase of worker's compensation insurance from the League of Minnesota Cities Insurance Trust in the amount of $432,829.00, which includes the experience modifier, a premium discount, and a $10,000.00 per occurrence medical deductible. C. Rename Old Cottage Grove Park Softball field to Dan Collins Softball Field. D. Name the recently-acquired island in the Mississippi River as Joseph LaBathe's Settlers Island. E. Approve the promotion of Cathy Mohr to Assistant Finance Director. F. Approve the purchase of 70,000 pounds of RoadSaver 535MN Crafco Sealant from Brock White. G. Adopt Resolution 2016-054 proclaiming April 10 — 16 as Volunteer Week in the City of Cottage Grove. H. Adopt Resolution 2016-055 establishing order of business for City Council Regular Meetings, superseding Resolution 2015-108. I. Accept and Place on File the Planning Commission meeting minutes from 2- 22-2016. J. Appoint Mayor Bailey to the East Metro Strong Board with City Administrator Stevens as the alternate, and appoint Senior Planner Burbank to the East Metro Strong Technical Advisory Committee with Community Development Director Levitt as the alternate. Cottage Grove City Council April 6, 2016 Page 3 K. Accept and Place on File the Environmental Commission meeting minutes from 12-09-2015, and the joint Environmental Commission/Public Safety, Health and Welfare Commission meeting minutes from 1-13-2016. L. Approve the Amendment to Purchase Agreement, Development Agreement, and the Minimum Assessment Agreement, all contingent on approval by the Economic Development Authority, for the Gardenworld project. M. 1. Adopt Resolution 2016-056 approving a conditional use permit for Verizon to construct an equipment shelter with natural gas operated back-up generator and hard surface turnaround, and to add 12 antennas on top of the City's 3.0 million gallon water reservoir at 81 st and Innsdale. 2. Approve the site Lease Agreement with Verizon. N. 1. Adopt Resolution 2016-057 to restrict parking along both sides of Hadley Avenue from 100th Street to 90th Street (State Aid Project No. 110-107-004). 2. Adopt resolution 2016-058 to restrict parking on both sides of 95th Street from Hadley Avenue to Hamlet Avenue (State Aid Project No. 110-111-003). O. Adopt Resolution 2016-059 approving an interim conditional use permit to utilize the Cottage Grove Petroleum Tank Farm at 6483 85th Street as a temporary outdoor storage lay down area for piping and structural steel materials that will be used for a construction project at the St. Paul Park Refinery. P. Adopt Resolution 2016-060 approving a conditional use permit to allow the operation of heating and air conditioning, plumbing, and electrical businesses with outdoor parking of commercial vehicles at 11825 West Point Douglas Road South. Q. Adopt Resolution 2016-061 approving a conditional use permit to expand Minnesota Pipe Line Company's nonconforming parking lot at 6483 85th Street South. R. Adopt Resolution 2016-062 approving the plans and specifications and establishing a bid date of March 3, 2016 for the Summers Landing 1 st Addition Utility, Street, and Light Improvements project. S. Adopt Resolution 2016-063 awarding the 2016 Joint City Wide Street Striping project to the lowest accepted quote, supplied by AAA Striping Service Co., for $49,931.14. T. Adopt the City of Cottage Grove Logo Guidelines. U. Renew the package policy with a $50,000/$100,000/$1,000 deductible through the League of Minnesota Cities Insurance Trust as outlined in the Insurance Proposal from Lee F. Murphy Insurance Group in the amount of $216,430.00. V. Consider not waiving statutory tort liability limits for insurance coverage obtained through the League of Minnesota Cities Insurance Trust. W. Adopt Resolution 2016-064 amending Resolution 2016-040 Rescinding, Cancelling and Terminating Certain Previously Adopted Resolutions Pertaining to the Subject Property (Grove Plaza). X. Adopt Resolution 2016-065 approving the plans and specifications and establishing a May 6, 2016 bid date for the 2016 Seal Coat Program. Cottage Grove City Council April 6, 2016 Page 4 Y. Adopt Resolution 2016-066 calling for a Public Hearing on the issuance of Revenue Bond Financing to Cottage Grove Leased Housing Associates I, LLLP. Z. Adopt Resolution 2016-074 authorizing submittal of the Environmental Assistance (EA) Open Grant to help cover costs incurred to create Resiliency and Sustainability element of the Comprehensive Plan. Motion by Council Member Thiede, second by Council Member Peterson, to approve the Consent Calendar. Motion carried: 5-0. 9. RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES — None. 10. PUBLIC HEARINGS A. 1. Hold the public hearing on a variance application to reduce the front yard setback at Almar Village. 2. Consider approving a variance reducing the front yard setback along the east property line adjacent to Keats Avenue from 20 feet to 2 feet, a variance to minimum parking requirements, and the amendment to the existing conditional use permit for expansion of the current 3,250 square- foot Carbone's restaurant to 7,605 square feet in size, including a full bar with liquor, at Almar Village, 7155 Jorgensen Lane South. Planner John Burbank stated Carbone's wants to double the size of their facility. With that comes additional parking requirements and modification to their conditional use permit because of the liquor use and restaurant. There's an opportunity for some additional parking on the site, along the eastern segment of the property; prior to doing that, a variance would need to be processed. There are no additional changes to the site; they're asking for the variance request with the parking setback requirement to allow for demonstrated parking, should the need arise. The current ordinance reads there needs to be one parking space per 50 feet square feet; with the expansion request, additional parking would be necessary. With the parking variance, it would add about 19 additional 18-foot parking spaces, which would reduce the setback from 20 feet down to 2 feet. The conditional use is dependent upon the variance request. Council Member Dennis stated that he is a business owner and investor in the Shoppes at Almar Village. As such, he is prohibited from being involved in any more discussion or votes on the topic and chose to recuse himself at that time. The Applicant, Ken Piper, Tanek Architects, 118 E. 26th Street, Minneapolis, stated he was there on behalf of their client, and the landlord was also present. Mayor Bailey asked the landlord to step up to the podium; Debra Heddle, 847 4th Avenue South, South St. Paul, MN, the property manager, did so. Mayor Bailey asked if they determined there was a parking issue there in a year, if it was their intent to put in the parking spots; Ms. Heddle stated yes, they would be installing the 19 parking stalls if and when it was decided that was necessary. Requests Cottage Grove City Council April 6, 2016 Page 5 for Bids have already been sent out, so they'd be prepared. They have already made the decision that they will be adding 12 short-term parking signs in stalls that were already there for customers of the other tenants in the building; therefore, it wouldn't affect any parking stalls near those businesses. She stated with the Carbone's expansion, the landlord wants to make sure that they're taking care of the other tenants in the building. Mayor Bailey opened the public hearing. As no one wished to speak, Mayor Bailey closed the public hearing. Motion by Council Member Thiede adopt Resolution 2016-067 to approve the variance reducing the front yard setback along the east property line, adjacent to Keats Avenue, from 20 feet to 2 feet, a variance to minimum parking requirements, and the amendment to the existing conditional use permit for expansion of the current 3,250 square-foot Carbone's restaurant to 7,605 square feet in size, including a full bar with liquor at Almar Village, second by Council Member Olsen. Motion carried: 5-0. B. Hold the public hearing and 1. Consider approving a certificate of appropriateness authorizing the delisting of the Hill-Gibson House and property located at 7003 — 7007 East Point Douglas Road from the City's Local Register of Historic Sites and Landmarks; and 2. Consider approving a certificate of appropriateness authorizing the relocation or demolition of the structures at 7003 — 7007 East Point Douglas Road. Planner Burbank stated the property is located adjacent to Tutor Time and the 80th Street/northbound Highway 61 entrance ramp. There is an existing barn on that property, as well as a small utility structure, and the Hill-Gibson house, a duplex. The house was built in approximately 1858, reportedly constructed by Louis Hill; the previous family ownership was the Hugh Gibson family. It was listed on the City's Local Register of Historic Sites and Landmarks in 1998; at that time, approximately $50,000 was spent to redo the interior and exterior. However, since that time, there's been no financial investment into the property. It is bank owned; they acquired the property through the foreclosure process, and they've been trying to market it since 2013. The adaptive reuse sale of that was unsuccessful; hence, tonight's request. The Advisory Committee on Historic Preservation (ACHP) reviewed this information, as did the City Council, in February. Discussed were how to avoid demolishing the property or if relocation was an option; the Preservation Alliance of Minnesota asked to secure a relocation request for that property. They advised that relocation of the structure would be feasible, but with that, replacements would be needed for the roof, soffits, siding, windows, porches, entry stairs, and any other unknowns encountered in that process. They have identified a willing buyer and have asked for the time to try to have all of that pulled together; so, that's an option in lieu of demolition. Cottage Grove City Council April 6, 2016 Page 6 Ordinance 953 established the procedures for a property owner to have the ability to delist their property from the City's Register. Planner Burbank stated the property's been neglected for 18 years. With the demolition, Cottage Grove would lose another historic property in the community. The property is zoned for commercial use. Council Members stated they took this very seriously and asked Planner Burbank to speak about terms of condition of approval versus demolition. Planner Burbank said it went to a demolition permit, as part of that process they would do a historic education plan. Also, with a site plan, they'd recommend that it be a condition as part of that site plan approval. The demolition cannot occur without an approved site plan. So, it all gets wound together to preserve the history, with naming a library or common area, turning logs into benches or mantles, etc. Council Member Dennis asked about the proposed timeframe for potential relocation and asked how that timeframe would potentially impact the future development of the site for the investor. Planner Burbank stated there's a minimum 60-day review process, and there would also be the timeframe to prepare plans and specifications and related building permits, so probably three months. Council Member Dennis asked how that three-month timeframe could potentially impact them. Director Levitt stated the Applicant had indicated their schedule worked with their timetable; the impetus would be if the Preservation Alliance and the potential future owner of the home would be able to work within that timeframe, to be able to relocate that home by August. If the property is not delisted and approved for demolition, the Applicant would look to scale back the affordable senior housing component to fit on the existing two lots that they had initially anticipated undertaking for the development of their project. For many years, the bank had not been successful in finding a purchaser who was able to take on the historical component of it and Dominium has been a partner who's been willing to do that and uphold the City's desire to preserve history. The bank feels they have a purchaser who meets those expectations and elements. Director Levitt stated their recommendation is to proceed with the action of delisting and demolition or relocation if the Applicant is able to facilitate that. Mayor Bailey opened the public hearing. As no one wished to speak, Mayor Bailey closed the public hearing. Motion by Council Member Dennis to consider approving the certificate of appropriateness authorizing the delisting of the Hill-Gibson House and property at 7003 — 7007 East Point Douglas Road from the City's Local Register of Historic Sites and Landmarks; second by Council Member Thiede. Motion carried: 5-0. Cottage Grove City Council April 6, 2016 Page 7 Motion by Council Member Peterson to consider approving a certificate of appropriateness authorizing the relocation or demolition of structures at 7003 — 700 East Point Douglas Road, second by Council Member Thiede. Motion carried: 5-0. Council Member Olsen asked if there was anyone present from the Preservation Alliance of Minnesota; he asked them to step to the podium for a question. Ann Ketz, 75 West 5th Street, St. Paul, Program Manager of the Real Estate Program, was present. Council Member Olsen asked her to explain their objectives and goals in a situation like this one. She stated they're dedicated to preserving historic resources in Minnesota. They reach out to their network to find people who are interested in buying historic properties, which is how they found the potential buyer for the house in Cottage Grove. Council Member Olsen felt Dominium could help make the senior housing project happen, yet they didn't want to do that at the expense of Cottage Grove history. C. Hold the public hearing and 1. Consider adopting a resolution modifying Development District No. 1, establishing TIF District 1-17 (Dominium) and adopting the TIF plan for the district; and 2. Consider adopting a resolution approving an Interfund loan for the advance payment of project costs in connection with TIF District 1-17. Finance Director Robyn Roland stated the Economic Development Authority (EDA) requested at their meeting on February 9 that the City Council call a public hearing, which the Council did on February 17. She stated creation of a TIF District is part of a plan required under State Statute. TIF District 1-17 refers to a 184-unit affordable housing for seniors. The actual owner of the project will be Cottage Grove Leased Housing Associates 1 LLLP (which stands for Limited Licensed Limited Partnership). The project is a housing district under State Statutes; they are affordable rental housing units with income requirements, which are defined by the Internal Revenue Code. The tax increment will be paid to the developer in a pay as you go note. The developer is responsible for the costs and the reimbursement to the developer will help them offset the costs for the affordable housing component. The Planning Commission reviewed the TIF Plan at their March 28 meeting and found it was in conformity with the City's Comprehensive Plan and passed a resolution to that effect. The City will have some minor costs up front, and will be reimbursed out of the 10% from the TIF District that is allowable under State Statute. Unfortunately, those costs will initially put this fund into a deficit position; they're asking the Council to pass a resolution to approve an Interfund Loan, up to $100,000, although they don't expect it will be that high. Without the assistance of the City, this project would not happen due to the high cost of building affordable new housing and the cost of financing the proposed public improvements. Cottage Grove City Council April 6, 2016 Page 8 Director Roland stated they had received a letter from the Deputy County Administrator, who asked that the letter be placed in the public record at the public hearing. It was their acknowledgement that they were in favor of the TIF District and it met the corresponding requirements that they had as part of the County EDA. Mayor Bailey opened the public hearing; as no one wished to speak, Mayor Bailey closed the public hearing. Motion by Council Member Peterson to adopt Resolution 2016-068 modifying Development District No. 1, establishing TIF District 1-17 (Dominium), and adopting the TIF plan for the district, second by Council Member Thiede. Motion carried: 5-0. Motion by Council Member Thiede to adopt Resolution 2016-069 approving an Interfund Loan for the advance payment of project costs in connection with TIF District 1-17, second by Council Member Dennis. Motion carried: 5-0. D. 1. Hold the public hearing on the Hadley Avenue & 95th Street Improvements Project. 2. Consider adopting a resolution ordering the project. 3. Consider adopting the Assessment Appeal Waiver Agreements with Independent School District No. 833 and Summergate Development, LLC/Swanlunds Inc. with the City Attorney's ability to make minor language adjustments. Engineer Ryan Burfeind stated Hadley Avenue and 95th Street would be reconstructed to a three lane road, with curb, gutter, and storm sewer, one through lane of traffic each direction with center left-turn lanes. There is a proposed single-lane roundabout with a landscaped island at the intersection of Hadley Avenue and 95th Street with installation of city streetlights. The existing trails along that corridor would be replaced, along with new trails, adjacent to the Summergate development. Related utility work would be the installation of a sanitary sewer pipe to service the Summergate development. A more-detailed comparison between the costs of a roundabout and a four-way stop showed the roundabout would cost approximately $190,000 more than a four-way stop. The proposed roundabout actually includes less impervious surface (pavement, median, curb, and gutters) than a four-way stop. The roundabout is proposed to be concrete pavement, similar to the Jamaica Avenue roundabouts at Highway 61. There is a higher up-front cost, but there's less maintenance than with bituminous pavement. Because the roadway will be fully reconstructed, the roundabout is very feasible and cost effective. If not done now, additional intersection control would require a stoplight, which would cost approximately $200,000 to $250,000. Also, safety statistics show roundabouts are also safer than four-way stops or stoplights. Cottage Grove City Council April 6, 2016 Page 9 They're proposing the project be constructed in two phases; Phase 1 would be completed in 2016, where the roundabout work and 95th Street itself would be completed. Phase 2 would be completed in 2017, and that includes Hadley Avenue from 100th Street to 95th Street. They're proposing to bid the project as one package. Proposed assessment amount is $1,447,902. Assessment Appeal Waivers from Swanlunds and Summergate Development have been received. Summergate is responsible for 100% of the cost for items built that directly serve the development, which totals approximately $450,000. Pine Hill Elementary's proposed assessment is $210,165. The Special Benefit Appraisal for the school property was $41,600. Sanitary and storm sewer improvements on the Pine Hill Elementary property would require new easements; for that to be completed, there's a Special Benefit Assessment Appeal Waiver for the School District to grant the required easements in exchange for the proposed assessment. The total project cost is just over $6,100,000; the costs for the City of Cottage Grove are approximately $4,200,000, which includes funding through MSA and utility funds. The Summers Landing Development assessment is about $1,500,000. The money that would be reimbursed through the development agreement would be $453,147. There was a neighborhood meeting on February 18; the feasibility report approval, preparation of plans and specifications, and call for public hearing was on March 2. Tonight is the public hearing, and if the project were to be ordered, Phase 1 construction would start in June, 2016, after school is out. Hadley Avenue would be reopened before school starts again, and substantial completion of this project would be in the fall of 2016, with Phase 2 construction in 2017. Staff recommendation is to approve the request. Minnesota State Statute 429 requires that the resolution be adopted by a 4/5 vote for the project to be ordered. Council Members asked Engineer Burfeind: 1) If he was the staff liaison at the neighborhood meeting and if so, what the general feedback was, especially regarding the improvements on Hadley Avenue. 2) With all of the increased housing in that area, what the plan was for the 95th and Jamaica Avenue Intersection (as far as making the intersection easier to navigate, especially during rush hours). 3) He was also asked about the timeframe. Engineer Burfeind stated he was the staff liaison and that the road improvements information was well received. From a traffic-calming perspective that the roundabout would provide, they noted the additional benefits so there was support from the residents at the meeting. He also stated a study had been done and found that a traffic signal was warranted at the 95th Street and Jamaica Avenue intersection, which is included in the five-year CIP for construction. He Cottage Grove City Council April 6, 2016 Page 10 stated he could not remember the timeframe, but would bring that information back to the Council. Mayor Bailey opened the public hearing. Aubre Rabe, 7015 90th Street South, addressed the Council and stated she lives right next to Pine Hill Elementary. Regarding the construction going all the way down to 90th Street, she asked how her house would be affected. She thought her house and the one directly across from her were the only houses that had driveways on that whole stretch. She wanted to know how that was going to affect her house and if she'd still have access to her driveway, etc. Engineer Levitt stated hers was a very unique situation, but their intent was to try to push the sidewalk section closer to the curb to provide a little bit more of a buffer for any parked vehicles in the driveway. The geometrics make it harder for the City to make any larger adjustments, but their intent was not to make the current situation any worse but to try to improve it as much as possible. With any transition from the new sidewalk section as it's moved closer to the curb line, they would reconstruct any portion of the driveway that was disturbed. If the transition doesn't work, they would ensure that the driveway didn't have any awkward transition points. Mayor Bailey stated they'd communicate with her frequently, and they'd make sure that she had access and would know what's going on. Ms. Rabe stated her neighbor was concerned about the noise, and also the traffic at 90th and Hadley was basically like a runway. She thought a lot of people would continue to come down Hadley Avenue. Engineer Levitt stated they weren't looking to make any road changes there, but the noise and speed elements were things that they could have Public Safety enforce to help address that issue. Mayor Bailey thought with the new stoplight at 95th and Jamaica and the new housing development, those two changes might help calm the traffic. Ms. Rabe was asked if the number of large trucks going past those two residences had at all decreased; she said her neighbors have said there are still quite a number of semi trucks that come through. As no one else wished to address the Council, Mayor Bailey closed the public hearing. Motion by Council Member Thiede to adopt Resolution 2016-070 ordering the Hadley Avenue and 95th Street Improvement Project, second by Council Member Peterson. Motion carried: 5-0. Motion by Council Member Thiede to approve the Assessment Appeal Waiver Agreements with Independent School District No. 833 and Summergate Development, LLC/Swanlunds Inc. with the City Attorney's ability to make minor language adjustments, second by Council Member Dennis. Motion carried: 5-0. Cottage Grove City Council April 6, 2016 Page 11 11. BID AWARDS A. Consider awarding the bid for the 2016 Pavement Management Project to Hardrives, Inc. in the amount of $4,233,423.16 with Bid Alternate No. 1. Engineer Burfeind stated bids for this project were received on March 31. They received three bids for the project with the low bid provided by Hardrives, Inc.; their base bid was $4,155,934.49. There was one alternate for the project relating to the construction of a permanent cul-de-sac at the end of Meadow Grass Cove, which is located right above the hill, above Hardwood Avenue, near Kohl's. Currently, Meadow Grass Cove is a dead end with no turnaround so they're looking to construct the cul-de-sac. Staff recommends awarding this project to Hardrives with the Bid Alternate, in the amount of $4,233,423.16. Motion by Council Member Olsen to adopt Resolution 2016-071 awarding the bid for the 2016 Pavement Management Project to Hardrives, Inc., second by Council Member Dennis. Motion carried: 5-0. 12. UNFINISHED AND NEW BUSINESS A. Consider approving the proposal by Stantec for the Comprehensive Plan Update. Director/Engineer Levitt stated staff is recommending approval of the proposal as presented. Motion by Council Member Olsen to approve the proposal, second by Council Member Dennis. Motion carried: 5-0. B. Consider adopting a resolution approving the Summerhill Crossing 4th Addition preliminary and final plats. Planner John McCool stated the preliminary plat application is re-platting of a parcel plan this is three acres of land; the proposal is to subdivide that three-acre parcel into two buildable lots for commercial uses. There are two out lots on the west side of the three-acre parcel, each about 4,000 square feet. Currently, parking for the multi-office tenant use to the west of this site uses the parking area, both on the north and south sides of that existing office building. The current owner would continue to own those out lots as platted as part of this project. The Planning Commission held a public hearing on March 28; if the restaurant was not to be built and it would be used for something else, the owner or Applicant of the proposed use would have to come back and re-plat the property. The Planning Commission recommended approval of the Summerhill Crossing 4th Addition preliminary plat; the final plat is awaiting Council action for approval. Cottage Grove City Council April 6, 2016 Page 12 Motion by Council Member Olsen to adopt Resolution 2016-072 approving the Summerhill Crossing 4th Addition preliminary and final plats, second by Council Member Thiede. Motion carried: 5-0. C. 1. Consider passing an ordinance amending the Planned Unit Development for Summerhill Crossing, which is located on the northwest corner of 70th Street (CSAH 22) and Hinton Avenue South (CSAH 13). 2. Consider adopting a resolution approving the site plan and conditional use permit for the proposed Junction 70 Grille project. Planner McCool stated there were two other applications for a conditional use permit because liquor is proposed to be served in the restaurant, and there is a site plan review application for development of the restaurant use. The restaurant is proposed to be approximately 5,000 square feet of family-style restaurant with a bar. It has a lower basement area, about 1,700 square feet, which will be storage and office use. The main level is proposed to be approximately 180 seats; 40 seats are proposed for an outdoor patio area. There are 61 parking spaces on the property, which is about a one-acre parcel. They're also proposing six outdoor bean bag courts on the west side of the building. There will be landscape improvements on the perimeter of the property. The parcel plan to the east of the proposed restaurant site would be a vacant commercial parcel available for future development. There were previous plans for the site, which did not come to fruition; therefore, the Applicant has made application to have the Planned Unit Development to be amended to allow for commercial development on the property. Access to the property is off of Pine Arbor Drive, which will continue to be a shared access for all of the businesses in that area. As part of the Planned Unit Development (PUD), they are proposing to have shared parking for the restaurant use. There will be 18 parking spaces on the professional office building site, and 24 parking spaces permitted at the office site to the west. For future development on the east side, that will be a future conditional approval for shared parking. Landscaping will be on the perimeter of the building and the property itself; the retaining wall along 70th Street will be extended and that will also contain some landscaping. Planner McCool showed illustrations of the elevations of the proposed building, the outdoor patio area, which will have a metal roof, and metal fencing around the outdoor patio. The main building will have brick and metal siding. There will be outdoor speakers for the patio area, beneath the roof, but there will not be anything on the west side. Planner McCool stated the Applicant was present. The Applicant, Matt Hoefler, 233 Main Street South, Stillwater, MN, addressed the Council regarding issues of concern. The building to the north and the building to the west have 60 additional parking stalls for the PUD, 31 extra stalls to the west and 29 to the north. Both of those sites were developed with the original idea of having some sort of shared parking based on their occupancy Cottage Grove City Council April 6, 2016 Page 13 and the amount of stalls that were actually built on the site. The businesses have different hours of operation, so that should make for a good transition between office use and restaurant use. Mr. Hoefler stated they've developed many local restaurants and some across the country. He spoke about the exterior design and materials and stated the restaurant should blend in well with the surrounding buildings. He stated that the proposed site directly to the east could be a proposed use that could lend itself well to also have a shared parking situation. Regarding the noise concern, Planner McCool described the noise concern in a previous meeting and indicated the patio area was the main concern. If the music is too loud and if somebody calls the police, the police officer would listen at the property line, and if it's overly loud, they'd be instructed to turn it down. He reviewed the speaker placements. Regarding interior design, the plan is that it will be a family-oriented business and should not have a harsh impact on the surrounding areas. There will be solid stone countertops, wood floors, decorative lighting fixtures, and an Expo kitchen. There will be no pool tables, stages, karaoke, etc. The owner, Joel Lehman, addressed the Council. He is a resident of Cottage Grove and the owner of the proposed restaurant. He stated there was a preconceived notion it was a sports bar; instead, it's a family-oriented restaurant with a bar, although sports memorabilia will be present. There will also be meeting space available. He stated it would be there for everyone to enjoy. The Mayor and Council Members then asked Mr. Lehman several questions: • Do you own the Lone Oak Grill in Eagan? He confirmed that he did. • What would the menu selections be? He stated they were going to tailor the menu to the wants and desires of the customers. There will be a children's menu. Saturday and Sunday brunch will be available. • What would be the hours of operation? He stated that their current hours at Lone Oak in Eagan are from 11:00 a.m. to 2:00 a.m. and that's what they're planning for Cottage Grove. Weekend brunches would probably start at 9:00 or 10:00 a.m. • Would there be any gluten-free choices on the menu? He stated they were working on all aspects of the menu, especially gluten free, low sodium, vegetarian, etc. so they were looking at different options and would be conscious of the needs of their customers. • Have you had any conversation with the neighbors regarding the building elements to try to find some common ground? He stated that he had not but with the architecture, they're trying to bring character to it. It will look like a restaurant, and it will be esthetically pleasing; the only thing that will be seen from 70th Street will be the patio. • Do you have any concerns about the ins and outs to get to the restaurant? He stated anybody who was traveling east on 70th Street could not easily access the site. He was informed 70th Street is a County road so they might be able to address it with Washington County. Council wanted to ensure there were traffic control devices within the neighborhood to direct patrons appropriately. Cottage Grove City Council April 6, 2016 Page 14 Mayor Bailey asked if anyone in the audience would like to make comments or ask questions. Kevin Raun, 6791 Pine Arbor Boulevard, Cottage Grove, stated on behalf of the Pine Arbor Rambler Homeowner's Association, he was asked if he could point out a few things. He stated that they would have appreciated someone coming to talk to them about the restaurant. They have three concerns: 1) The architectural deviation. He spoke to Mike Rygh this afternoon, and he was the one who asked that the buildings be of similar architecture and material design. He stated the building doesn't look bad, but it's just out of place with the rest of the surrounding architecture. It's a deviation from what's already there. 2) Parking concerns. With parking comes traffic. The parcel that the restaurant will occupy is smaller than the other parcel. He was stunned to learn that the City bypassed its own ordinances under the PUD without a variance of public hearing. He understood the shared parking concept. He thought it was going to be busy with the main avenues being Hinton Avenue and Pine Arbor Boulevard. 3) Noise concerns. He hopes it will be a moot issue because this development will be a little bit further away. The noise ordinance was amended a couple years ago, but it's pretty subjective. Parks closed at 10:30 p.m., there are nighttime restrictions on other businesses, so they thought it might be appropriate to turn off the music at 10:00 p.m. He thought it would have been good to have a dialogue with the architect, with Mike Rygh, and with the owner to present their concerns. Mr. Raun stated Cottage Grove is an awesome City in which to live, work, and play, and there has to be cohesiveness of the business owners and the citizens. Council Member Thiede asked Mr. Raun what he'd change on the building to make it look like the others. Mr. Raun stated there's a lot of inetal on the building and there is not any metal on the existing buildings. There's some stone, brick colors, but he's not sure they match the other brick colors. He thought there was a way to make the building look similar and yet be different and stand out as a restaurant. He wasn't asking that it be a square box, but if you looked at the other buildings, there are some differences but it all flows. Council Member Thiede stated Mr. Raun could make suggestions or recommendations regarding the design elements. Mr. Raun stated they'd like to meet with them again and have this project tabled for a couple of weeks so they could have a dialogue. Keith Porter, 6803 Pine Arbor Court South, Cottage Grove, stated the house of him and his wife, Bonnie, was visible on the aerial view of the proposed site. He asked what the building on the site east of the proposed restaurant is going to be, and he asked if all of those elements together actually make the PUD; he said it was kind of being piecemealed together without knowing where all the cards were. Mayor Bailey stated when the original PUD was granted, there were not any specific building materials mentioned; it simply said, `architectural requirements provided general regulations that encourage quality materials.' He Cottage Grove City Council April 6, 2016 Page 15 stated that was vague but thought that was done intentionally to try to court certain types of businesses in there. On the layout, the original plan was to have two buildings kind of flanking each other, which would have frankly increased the number of cars and traffic that would be going in there with the restaurant kind of abutting 70th Street and Hinton Avenue. There is an interested party in the property next to where the restaurant will be going that is a much softer use that would have the ability to have additional parking meet the needs of both this restaurant as well as the needs of what's being proposed there. He can't say anything publicly yet because they're still working through the details, but they've been looking at coming to Cottage Grove for a very long time. He thought it would be a great amenity to that neighborhood and would alleviate any of the parking concerns. He stated they would not be adding a huge retail building that would generate more traffic. There was even a point where CVS pharmacy was interested in that corner, but they did not like the right-in, right out only as it related to 70th Street. Dick Hanson, 6918 Homestead Avenue South, Cottage Grove, stated he looked at the agenda, and all of the Council and City staff should be commended for the amount of time and effort they had put in. He appreciated that it was also available online so everybody had the opportunity to see it ahead of time. He stated he'd lived in Cottage Grove for 35 years, and development was always tough. He said this was a restaurant right in their neighborhood, which was exciting. He was not excited about the hours of operation, as there were very few restaurants in the City that stayed open that late; the ones that do don't have as many residential homes right next to them. He said that area is pretty much a senior citizen area. The Holiday gas station proved to be a good neighbor, they were responsive to the noise levels of the car wash, they made their case for staying open 24 hours, and it made sense. He suggested they might want to be a little restrictive on the times of operation. He stated there was also a concern about Cedarhurst Mansion getting their liquor license and how that would affect the surrounding neighborhood. There was a one year time period put on that to reevaluate how things had gone after one year; he wondered if that couldn't be done with this site. He thought this situation was unique enough that the Council should give it some special consideration. Debbie Foster, 6875 Pine Arbor Court South, Cottage Grove, stated her main concern was the traffic from Hinton to 70th. She lives in that court, and in the morning, trying to get out of that area to go to work while people are driving into the gas station is really difficult. She wanted them to think about that corner because if she needs to get out, the fastest way to do it if there's a lot of traffic is to go down and do the in-out, but if she wants to go to Carbone's, she would have difficulty. She asked if they'd look at that corner, too. Jim Gullickson, 6841 Pine Arbor Court South, wanted to know if the restaurant would be open seven days a week, every night until 2:00 a.m., or if other days the business would be closed. He was told it would be open seven days a week, Cottage Grove City Council April 6, 2016 Page 16 but the closing time could be changed; if there was nobody in the restaurant, there'd be no reason for them to stay open. Mike Rygh, 505 Lakeside Drive, Bayport, MN, stated he was thrilled with the quality of the architecture and what's trying to be accomplished. He stated the amount of brick, windows, and architecture was way over and above the cost of a square box that most businesses were doing with a soffit on the front that looks like every other retail center in town. He said this was exciting; this is a restaurant that we've been asking for, for almost 30 years. You can't have a nice restaurant without a bar; if you don't serve liquor, you're out of business. He stated this restaurant actually had character, pizzazz, and made a statement. He said the owner is spending more money to make it look special and be a landmark than he would have to, and he felt from an architecture standpoint, it was outstanding. If the color of the brick had to be tweaked, they could get that to fit in. Council Member Dennis stated there were a number of people who were concerned. He asked Mr. Rygh if he could shed a little light on how they got to this process so people could have a better understanding. Originally, it was set for something else, it went through rezoning with City staff, a costly process, and now we're back to the restaurant. He stated Cottage Grove is a unique animal. If you look at Hastings, Woodbury, and Inver Grove Heights and the number of restaurants they have, it's incredible. What was on the original PUD they thought made sense; if you see a building on 70th and County Road 19 sitting vacant, then it doesn't make sense to build more retail space. That's why they went away from the retail space. There's a site available and they wanted to do something with it; they didn't have a restaurant come forward for the last 12 years, so that's when the elderly housing came about. When he was working on elderly housing and they were trying to do that, there was no TIF money available and they were unable to come up with an investor who wanted to do the elderly housing. He thought that was a great idea, but if you can't find somebody to invest in the area, you have to change. He thought maybe St. Therese's in Woodbury scared everybody away with their enormous building. The property went back on the market after spending a lot of money on developing the senior housing, and the realtor stated somebody in Cottage Grove wants to build a restaurant. This is what they'd been looking for; a locally owned restaurant. He felt if they had compiled a list of what they wanted in a restaurant, this would have probably met almost every one of the criteria. He hopes the other business next to the restaurant will come together within the next year. Mr. Rygh stated he thought they had tried to deal with the patio, the sound, and traffic issues. Council Member Olsen asked that the property owner, business owner, and the architect take under consideration some of the things that their future neighbors had mentioned, and have some dialogue about those issues. Cottage Grove City Council April 6, 2016 Page 17 Terry Gullixson, 6841 Pine Arbor Court South, Cottage Grove, wanted to also voice her concerns about the hours of operation. She wanted them to remember that this was a neighborhood, and after 10:00 or 10:30, it was no longer family dining, but it becomes bar patrons. With that is some rowdiness, the noise level increases, and also concerns about drinking and driving. She asked if it was within the responsibility of the Council to look at the hours of operation; if they can be limited, she would strongly request that that occur. Mayor Bailey asked the Applicant, should things move forward with the project, what their timeframe was right now. The Applicant stated they'd like to get moving as soon as possible. Motion by Council Member Olsen to pass Ordinance 960 amending the Planned Unit Development for Summerhill Crossing, which is located on the northwest corner of 70th Street and Hinton Avenue South, second by Council Member Peterson. Motion carried: 5-0. Council Member Thiede asked if certain conditions should be put in at this time, e.g., the noise and hours of operation. Mayor Bailey thought that would be dealt with in Part 2. Council Member Olsen asked City Attorney Korine Land about the use of a PUD and how that relates to the City's ability or willingness, or both, to circumvent ordinance requirements. He wanted her input on whether or not that was an accurate understanding of the use of a PUD and some insight into why a PUD versus another tool. Attorney Land stated typically PUDs are used when there is a multi-use area. If there will be more than one user, it might be a tight side that you need to address, certain restrictions, or there will be some common areas that can be utilized cooperatively amongst all the users. PUD is a tool in the Planning Department's tool belt that they can use to accommodate those types of tight circumstances, but the businesses have some synergy and have cooperative shared parking arrangements between them. A PUD allows flexibility; it's a tool to use flexibility in the parking situation, setback situations, so you don't have to exactly conform to the letter of the ordinances if you're a stand-alone site. It's intended to be larger site developments when you have cooperative uses that can do some shared parking arrangements and be more flexible within that development. The Planners apply their tools with the rule book but a PUD just gives them a little bit more flexibility. Council Member Olsen asked why a PUD here versus the item under consideration earlier for the expanded use of Carbone's. Attorney Land stated those were two totally different applications because Carbone's was an additional variance that had not been previously contemplated as part of the original PUD. There was no forethought, there was no public hearing, and there was no Cottage Grove City Council April 6, 2016 Page 18 advance notice to the public or even to the City staff or the Applicant that that was going to be needed. That was an influx afterthought so it was brought before the Council as a variance to alert the public as a transparency issue to make sure everybody knew that this was over and above what had originally been contemplated as part of that PUD. This is a completely different application; it's a PUD amendment. So, we're addressing it as part of that, as part of that public hearing process, which was held at the Planning Commission. The parking variance was brought out at the public hearing, and that's why the neighborhood was addressing it here. The issue was well thought out, was addressed at the Planning Commission public hearing; it was just a totally different process. Council Member Thiede asked if they should include a one-year review to look at operations and see how everything is going after a year, with the hours of operation and noise issues. Council Member Dennis stated they need dining opportunities in Cottage Grove, and it had also been established that this particular PUD did not have strong definitive language on replicating the look of the building designs. Many retail and service area developments generally have some type of shared parking covenants. When the Shoppes at Almar Village came before the Council in 2002-2003, there were many pages of signatures of people who did not support that project. Many of the names on that document were people who became friends in doing business and working together. The fears people had were assuaged by reality that showed it wasn't a bad thing; in fact, it made a difference in the neighborhood with convenience, opportunity, and chances for people to do business locally. He stated that due to the time constraints, with an investor who had time considerations, he didn't think taking a moment of pause would be in order to really come up with anything substantial. He would vote to approve with a couple of points meant to protect the folks who live in the neighborhood: 1) A one-year review process where noise concerns would be assessed to make sure the business is operating within City Code guidelines and, as stated by Kevin Raun, to `ensure it's run well.' 2) Address the results of parking via the proposed agreement of shared spaces, to make sure it's working out well for people and there are no problems. If there are challenges, they would work to address those. 3) Sometimes it's difficult to limit hours of operation. When you have a lot riding on an investment, you rely on every hour of the day. Give them a chance and see how they do; if they aren't working out well, we will step forward to act on your behalf. It was discussed that perhaps the motion should include the review elements; Council Member Olsen asked Attorney Land for her input. Attorney Land stated hours of operation could certainly be addressed with the liquor license. If there were any issues with noise, those could be addressed by bringing him back for a Cottage Grove City Council April 6, 2016 Page 19 license hearing and address it with his liquor license. The noise ordinance is in place, so again neighbors don't like to call, but they will and encouraged citizens to do so. The police officers will also randomly walk through the business, as it has a liquor license, so they will also be monitoring the business. Attorney Land felt there were enough built-in checks and balances without requiring anything else in the ordinance. Motion by Council Member Olsen to adopt Resolution 2016-073 approving the site plan and conditional use permit for the proposed Junction 70 Grille project, second by Council Member Peterson. Motion carried: 5-0. After the vote was taken, Mayor Bailey asked the Council to take a five-minute recess while the room was clearing. Mayor Bailey then restarted the meeting. 13. RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS — None. 14. COUNCIL COMMENTS AND REQUESTS Council Member Olsen congratulated Cottage Grove resident Brad Frost, the coach of the University of Minnesota Gopher women's hockey team on their national championship victory this year. Council Member Peterson stated she had spoken to someone with an electric car and he had asked about charging stations in the City of Cottage Grove. She asked if that had been spoken about at the Planning Commission. Engineer Levitt stated that Hy-Vee will be installing those; no other businesses have looked to make that an element of their project. Council Member Peterson stated the Stone Soup "Soup-er Bowl" with be held on April 23, at the Park Grove Bowl. It's a fundraiser for the Stone Soup Thrift Shop in St. Paul Park. There will be lots of good food available that day. She encouraged citizens to go to www.stonesoupthriftshop.orq and get teams signed up; the deadline for that is on April 8. There will also be opportunities to sign up on the day of the event. Mayor Bailey reminded everyone that on April 16 at the Cottage Grove Ice Arena the Spring Business Showcase, which is run by the local Chamber of Commerce, but is partially sponsored by the City of Cottage Grove. He encouraged everyone to attend to learn about new developments and things taking place in the community. Mayor Bailey stated there are continually issues with the sound out in the entryway, and he asked if the cable group could get the sound working. Administrator Stevens stated they thought they had solved, but were disappointed to learn it had not been. They accommodated people this evening Cottage Grove City Council April 6, 2016 Page 20 by streaming the meeting into the St. Croix Room, but they will contact them tomorrow to get it corrected. Mayor Bailey stated when they do presentations in front of the Council desk, they need to move the microphones around; he felt they should have a handheld microphone. Administrator Stevens stated that microphone was ordered, but it had not arrived in time for the last meeting so she will check on the status of that. Mayor Bailey stated that either the historic Hill-Gibson house would be moved or it would be torn down, with elements incorporated into the development of Dominion. He asked what the rules and regulations are for having somebody put a property into some type of historic designation. In this case, the individual did that, sold his property, and left town, and then it fell into disrepair and somebody else was left holding the bag. He didn't know how that should be done, but he asked staff to come to the Council with some suggestions of what defines something as historic. Administrator Stevens stated they could look at that and bring back some recommendations of change based upon this experience; the Historic Preservation Committee would certainly be involved in that discussion. Mayor Bailey stated that on May 7, there will be the Spring Clean Up Day in Cottage Grove at the Public Works garage. Hazardous materials (paint, oil, etc.) will be accepted free of charge. Larger items (appliances, etc.) will be charged fees. There is more information available on the City's website. Only cash or checks will be accepted. 15. PAY BILLS Motion by Council Member Olsen, second by Council Member Peterson, to approve payment of check numbers 195465 to 195740 in the amount of $993,500.92 and EFT Payment of $179,823.46. Motion carried: 5-0. Council Member Thiede stated he saw a Fire Escrow Release for almost $41,000, and he asked what for an explanation. HR Manager/City Clerk Fischbach explained there had been a fire at a residence in Cottage Grove. The City required the homeowners to give them the insurance money, which the City keeps in case they don't fix the home. If the fixes aren't made, they use that money to fix it up if it goes to a County auction, etc. In this case, the homeowners satisfied the repairs, so the money will be released to the homeowners. That money is used by the City only if it's necessary. Council Member Thiede stated he saw a Fairway mower, which he assumed was for the golf course, at almost $40,000. He was trying to find that in the budget and he couldn't. He asked for somebody to show him at some point where that was in the budget. Administrator Stevens he would be given that information; she believed it was part of the Capital Improvements, in the vehicle section. Cottage Grove City Council April 6, 2016 Page 21 16. WORKSHOP SESSION — OPEN TO PUBLIC — None. 17. WORKSHOP SESSION — CLOSED TO PUBLIC — None. ADJOURNMENT Motion by Council Member Thiede, second by Council Member Olsen, to adjourn the regular meeting at 10:06 p.m. Motion carried: 5-0. Minutes prepared by Judy Graf and reviewed by Joe Fischbach, HR Manager/City Clerk.