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HomeMy WebLinkAboutMinutes i� ��tJV� �ri°t � y � ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ���� �ri e ar�d PC�� t MINUTES COTTAGE GROVE CITY COUNCIL March 15, 2017 COUNCIL CHAMBER 12800 RAVINE PARKWAY SOUTH REGULAR MEETING - 7:00 P.M. 1. CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota, held a regular meeting on March 15, 2017, at Cottage Grove City Hall, 12800 Ravine Parkway. 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 The following were present: Mayor Myron Bailey, Council Member Steve Dennis, Council Member Wayne Johnson, Council Member La Rae Mills, and Council Member Dave Thiede. Also present were: Charlene Stevens, City Administrator; Korine Land, City Attorney- LeVander, Gillen & Miller, PA; Ryan Burfeind, Assistant City Engineer; John Burbank, Senior Planner; Harry Taylor, Public Works Supervisor; Joe Fischbach/HR Manager/City Clerk; Jennifer Levitt, Community Development Director/City Engineer; Sharon Madsen, Communications Coordinator; Robin Roland, Finance Director; Craig Woolery, Director of Public Safety; Becky Ahlvin, Management Assistant. 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. 5. ADOPTION OF AGENDA Motion by Council Member Dennis, second by Council Member Thiede, to adopt the agenda. Motion carried: 5-0. 6. PRESENTATIONS 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 City Council Meeting Minutes March 15, 2017 Page 2 A. 2016 Annual Report Video Mayor Bailey stated Communications Coordinator Sharon Madsen would present the 2016 Annual Report Video, which she did. The video was a summary of Cottage Grove's highlights for the past year, which included business, residential, retail, parks, ice arena, golf course, and roadwork improvements. A new communication tool for Cottage Grove residents included Facebook Live for "My Cottage Grove" meetings, so all residents could participate. Mayor Bailey thanked SWCTC for putting the Annual Report video together, which will also be available on Facebook and YouTube. 7. CONSENT AGENDA A. Approve the February 15, 2017 City Council Regular Meeting Minutes. B. Approve the March 1, 2017 City Council Regular Meeting Minutes. C. Receive and place on file the approved minutes from January 10, 2017, meeting of the Advisory Committee on Historic Preservation. D. Receive and place on file the approved minutes from the January 23, 2017, Planning Commission meeting. E. Appoint Chris Carey to fill the vacant position on the Economic Development Authority to a term ending on March 15, 2023. F. Appoint Joseph Gall to a term on the Advisory Committee on Historic Preservation ending February 28, 2019. G. Appoint Jeff Abelson to his first term on the Planning Commission ending February 28, 2019. H. Appoint Herb Japs as Chair of the Advisory Committee on Historic Preservation. I. Appoint Ken Brittain as Chair of the Planning Commission. J. Authorize the City to not waive the statutory tort limits where an individual claimant would be able to recover no more than $500,000 on any claim to which the statutory tort limits apply per Staff and City Attorney recommendation. The total all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. K. Adopt Resolution 2017-029 approving the plans and specifications and establishing an April 13, 2017 bid date for the Belden Sanitary Lift Station Improvements. L. Authorize service agreement with Hoffman and McNamara for spring boulevard tree planting in the amount of$62,991.00. M. Adopt Resolution 2017-028 accepting the donation of Outlot G, Eastridge Woods 2nd Addition from D.R. Horton to the City of Cottage Grove. City Council Meeting Minutes March 15, 2017 Page 3 N. Adopt Resolution 2017-030 approving the plans and specifications and establishing an April 20, 2017 bid date for the 2017 Joint Seal Coating Project. O. Pass Ordinance 978 amending City Code Title 11-6-13C related to architectural design and construction materials for non-residential structures located in industrial and commercial guide and zoned districts. P. Adopt Resolution 2017-034 establishing an April 19, 2017 public hearing for the TH 95/Manning Avenue Safety Improvement Project. Q. Approve the Maintenance Agreement between Washington County and the City of Cottage Grove for maintenance of the roundabout at the intersection of County State Aid Highway No. 19 and East Point Douglas Road South. R. Adopt Resolution 2017-035 approving the City of Cottage Grove's Wellhead Protection Plan amendment as approved by the Minnesota Department of Health. S. Appoint Justin Atkinson as Chair of the Arts Commission. Council Member Mills wished to pull Item S; Council Member Dennis wished to pull Items G and I; Council Member Thiede wished to pull Items F and H; and Mayor Bailey wished to pull Item E for further comment and/or discussion Council Member Mills announced that Justin Atkinson was appointed as Chair through the Arts Commission and hoped the Council Members would tonight approve his appointment to that position. She thanked Justin for stepping up and taking that position with the Arts Commission. Council Member Dennis stated he's serving as the Council liaison to the Planning Commission, and he'd like the Council to appoint Jeff Abelson to his first term on the Planning Commission; his term will end on February 29, 2020. He also wished for the Council to appoint the Planning Commission Chair, Ken Brittain, as he'd already been serving in that role and had done a great job of running those meetings. Council Member Thiede stated he's the Council liaison to the Advisory Committee on Historic Preservation, and he asked the Council to approve Joseph Gall to fill an open seat on that Committee. He also asked the Council to approve the appointment of Herb Japs as Chair of the Advisory Committee on Historic Preservation. Mayor Bailey stated he is the President of the Economic Development Authority and Council Member Dennis is the Vice President; they'd interviewed applicants for the Economic Development Authority and chose Chris Carey to fill the vacancy created when Tony Jurgens was elected to the House of Representatives. Mayor Bailey stated that Chris and his wife also own businesses in Cottage Grove so they were excited to see him join the Economic Development Authority. City Council Meeting Minutes March 15, 2017 Page 4 Motion by Council Member Thiede to approve the Consent Agenda, second by Council Member Mills. Motion carried: 5-0. 8. APPROVE DISBURSEMENTS A. Approve payment of check numbers 200085 to 200240 in the amount of $773,279.58 and EFT Payment of$126,815.40. Motion to approve disbursements by Council Member Dennis, second by Council Member Johnson. Motion carried: 5-0. 9. PUBLIC HEARINGS A. General Obligation Capital Improvement Plan Bonds 2017A Staff Recommendation: Adopt Resolution 2017-027 providing for the sale of not more than $9.69 million General Obligation Capital lmprovement Plan Bonds of 2017A. Finance Director Robin Roland stated tonight's public hearing is to consider the General Obligation Capital Improvement Plan (CIP) Bonds for 2017A. CIP Bonds are unique, as they're provided for under State Statute 475.521; they finance required building projects by municipalities, and include City Hall projects, Fire Station projects, standard maintenance, and Public Works projects, which will be beneficial to the community and are not to be financed by other means. They could be financed through lease revenue bonds, but that would result in a higher interest rate. State Statute provides for the process to hold a public hearing and to have a CIP approved by the City Council; there's also a different process that occurs before the bonds are sold, approximately 30 to 60 days after the initial public hearing. The bonds will be used to pay for the Central Fire Station project, which will be built on the current site of Fire Station #2, on 80th Street. Director Roland summarized a history of Fire Station #2, as well as the other three fire stations. She reviewed the two service models, including duty crews of paid, on-call volunteers and full-time staff vs. the new model, 12 full-time staff rotating on three shifts, with four staff at the main station at all times. The Central Fire Station is also a consolidation to a central location; as can be attested to by Chief Redenius and Chief Woolery, it provides the best responses times. Fire Station #4, near Jamaica Avenue, will remain open to house equipment, but the other two fire stations will close. Public Safety staff inembers have been involved in the consolidation planning since 2014, and a report was made to the Council in February, 2016. The study identified a 30,000 square foot building, built at the current Fire Station #2 location, as renovating the existing facility would not be cost effective. The estimated cost is $9,000,000. The five-year CIP has included the Central Fire Station; operational costs are budgeted in the 2017-2018 Budget for the existing station and the transition to the new Central Fire City Council Meeting Minutes March 15, 2017 Page 5 Station. The Central Fire Station will include training rooms, conference rooms, offices, and sleeping facilities, which is part of the planned building project. They went out for bids; the bids are back and the construction management firm has those. They are currently reviewing all of the bids, and the City Council will be reviewing the bids at the next Council Meeting, on April 5. The CIP Bonds packet includes an interest rate; she's been asked why the dollar amount listed on the bond issue is $9,600,700. That's the "not to exceed" amount; this is the maximum amount for which the City's bonds would be issued for this project. They had no idea how the construction bids would come in on the project, so gave a little leeway in order to avoid needing to hold a second public hearing in case the numbers had changed. Director Roland stated CIP Bonds get lower interest rates because they're a General Obligation of the City, which means the City is responsible for repayment of that debt as part of the general tax levy. Tonight's public hearing is to talk about that and the impacts of the financing on the project, sources, and uses; the City is using some of its existing funds to pay for the costs incurred to this point, such as the Space Needs Study as well as the architect, engineering, construction management costs, etc. The current City Hall was paid from Interfund Loans by the City; the City is paid back every year with a levy of about $500,000. That's included in the current property tax levy, and the City's been paid back for approximately the last five years. Director Roland suggests the financing for the impact of these bonds is a combination of refinancing the loans that are on the City Hall building and calling some existing debt, as we have the funds to pay cash outright, and both of those items would reduce the amount of the impact on the City's property tax levy. At the highest levy, $9,600,700, there's a potential of$650,000 each year that the City would have to levy in property taxes to pay for the new bonds; between the refinancing of the debt and the calling of the existing debt, the amount can be reduced down to $200,000 each year to the property tax levy. That would be a 1.4% increase to the property tax levy as it sits now, which meets the City Council's direction to reduce the impact of the financing of this project, as were discussed in the CIP and budget conversations. Director Roland stated they will hold the public hearing; after that is done, she asked the Council to adopt the Resolution to give the preliminary approval for the issuance of the bonds in an amount not to exceed $9,600,700 million and adopt the CIP. After the Resolution is adopted, it also calls for the sale of the bonds on April 19, subsequent to a reverse referendum period of 30 days. Once the 30 days passes without a challenge, the City would be able to issue the debt on April 19, subsequent to the Council awarding the bids, which will be approximately $9,000,000. Director Roland stated she'd take any questions. Council Member Thiede asked if Ehlers was estimating the bids at 3.5%; Director Roland stated they estimated it would be less. City Council Meeting Minutes March 15, 2017 Page 6 Mayor Bailey opened the public hearing and asked if anyone wished to speak on this item; as no one wished to speak, Mayor Bailey closed the public hearing and looked for direction from the Council or a motion. Council Member Mills made the motion to Adopt Resolution 2017-027 providing for the sale of not more than $9.69 million General Obligation Capital Improvement Plan Bonds of 2017A, second by Council Member Dennis. Motion carried: 5-0. B. Allina Health System Bonds Host Approval Staff Recommendation: Adopt Resolution 2017-031 approving the issuance of bonds by the City of Minneapolis and the Housing and Redevelopment Authority of the City of St. Paul on behalf of the Allina Health System. Director Roland stated this public hearing is not for the City's debt; it is what is known as conduit debt. Allina Health Care Systems in 2005 and 2009 issued debt through the City of Minneapolis and the Economic Development Authority of the City of St. Paul, and they are refinancing that debt. Jennifer Hanson from Dorsey & Whitney, the bond counsel firm, was present. Director Roland stated the bonds had to be approved in their refinancing, as they approved the original refinancing, because there is an Allina facility in Cottage Grove that will be impacted by the refinancing. The Allina facility was built with the original financing, and the public hearing needs to be held in order to give what is known as host approval for the revenue bonds. Ms. Hanson stated that this is a technical requirement of the Internal Revenue Code, which requires every City with facilities that got bond financing to approve the issuance of the bonds by the other City. These are not bonds of the City of Cottage Grove, and are only conduit bonds of the City of Minneapolis and St. Paul. Mayor Bailey asked what effect this really had on the City of Cottage Grove; Director Roland stated it doesn't have any effect, as we're not responsible for the repayment of these bonds, they don't count against the City's bond rating. It's merely a formality due to State Law and the IRS Code. Mayor Bailey opened the public hearing and asked if anyone wished to speak on this item; as no one wished to speak, Mayor Bailey closed the public hearing. Motion by Council Member Dennis to Adopt Resolution 2017-031, approving the issuance of bonds by the City of Minneapolis and the Housing and Redevelopment Authority of the City of St. Paul on behalf of the Allina Health System; second by Council Member Johnson. Motion carried: 5-0. 10. BID AWARDS — None. 11. REGULAR AGENDA City Council Meeting Minutes March 15, 2017 Page 7 A. Lennar Homes Concept Plan — Bothe/Milbrandt Properties Staff Recommendation: Adopt Resolution 2017-033 approving Lennar Homes'concept for a residential development on approximately 146.52 acres of land currently owned by the Bothes and Milbrandts, located at 8180 and 8190 65th Street South. Community Development Director/City Engineer Jennifer Levitt stated this property is located just to the north of 65th Street, to the west of Inwood Avenue, and adjacent to the Woodbury-Cottage Grove border. The property is currently agricultural use; there is an additional 18.75 acres of land that's located in the City of Woodbury. There are two houses on the existing farmstead, along with farm outbuildings. There's over 160 acres of land, 18.75 acres of which is in Woodbury; Lennar approached the City of Cottage Grove for approval of a concept plan in 2014. Since then, they've revised their concept and are looking to substitute 55 single-family home lots with 20 quad units, which total 88 units, and reduce the 70-to-80 foot lots with some detached single-family homes on a narrower lot of 55 feet, which they've termed a Villa product. Overall, there's a net increase from 302 detached single-family units to 355 residential units on the property. In 2014, the City of Woodbury had higher density there and had commented that it wasn't consistent with their land use plan; there's now a variation in the new concept with larger lots. The developer is still working with the City of Woodbury regarding the development that Lennar is proposing here. Director Levitt stated future land use is low-density residential, so this is consistent with that. Part of this development is the expansion of Sunnyhill Park; they're anticipating more passive use facilities, such as picnic shelters, trails, flexible play fields, and an enhanced open space for the residents. The Planning Commission made it clear that an active farm in an urban residential setting don't go hand in hand; they've got some boundaries where they're suggesting development not occur until the farmstead is gone, in 2019, and it's not an issue with the developers and/or owners. Upper Ravine Parkway will begin at Hinton and 65th Street, which is where the monuments will be placed; Mayor Bailey confirmed that construction would begin at that point. Director Levitt stated they need to work out the coordination of construction of the parkway, specifically regarding drainage and associated utilities, through the preliminary plat process. Council Member Mills asked when development would be taking place regarding utilities, etc.; Director Levitt replied that's difficult to say because it's dependent on two other landowners selling further to the east. The sanitary sewer is currently sitting at Jamaica Avenue, and it would need to be brought across the Wolterstorff property and the Kemp parcels. At this point, there aren't any preliminary plats or concepts for those two developments; therefore, it's unknown when those utilities would be brought forth. It's very expensive to try to acquire the necessary easements and construct the sanitary sewer line in advance of the development so there will be a little bit of a wait. The City Council Meeting Minutes March 15, 2017 Page 8 developer's phasing and staging plan for this area would buy them some additional time until that would be made available. Council Member Thiede asked Director Levitt if all of the roads were public or if some of them would be private roads; Director Levitt stated the main roads throughout the subdivision will be public roads. The driveway sections in between the quads would be privately owned and privately maintained. The roads that are located throughout, within a 60-foot right of way, would all be public roads serving the parcels. The Applicant, Paul Tibone, Title Manager with Lennar, 16305 36th Avenue North, Suite 600, Plymouth, Minnesota, thanked the City and staff for working with them. They had a good Planning Commission meeting on the concept plan. He stated there are 228 lots, with 18 acres located in Woodbury; he gave Woodbury an updated concept earlier this week so it can be coordinated properly. The continuation of Sunnyhill Park will be approximately six acres. There will be an HOA amenity in the middle, which will be privately owned and maintained. It could be a combination of some outdoor facilities, a clubhouse, etc., and they're not sure if there will be a pool. There will be a linear trail connection in a southeast to northwest pattern, which goes right through the heart of the community. Mr. Tibone reviewed the different type of homes they'd be building: • Discovery Homes: Single-family, detached homes with a base two-car garage with a third-car option, typically targeted toward a young family; • Landmark Homes: A little bit bigger, detached single-family homes with three-car garages; • The Villas: Detached townhomes and quad townhomes, both are an age- targeted product; these are designed for people who want to downsize and get into a maintenance-free living situation. The detached townhomes are targeted for empty nesters; the quad townhomes are concentrated in groups of four with a shared-wall design. They're focused more toward single, elderly family, who still want a feeling of community around them and don't want to be in a big house by themselves. • The NextGen: It's called a home within a home; it's a single-family, detached home, and it features a NextGen suite. The intention is to provide an alternative to senior care or assisted living, with a multigenerational living concept. Mr. Tibone thanked the Council and stated he'd take any questions. Questions from Council Members were posed and fielded by both Mr. Tibone and Director Levitt regarding: NextGen homes being on the same utilities, with the same address, etc.; zoning requirements for the different sizes of homes; how multiple vehicles within the NextGen HOA would be handled, especially if children were going to be living there; the placement of the quad homes and Villas; and the pricing of the different styles of proposed homes. Mr. Tibone advised the NextGen homes would all be one address, and stated a common fear with NextGen homes is that someone would try to rent out the other unit; it's disclosed to the buyer that that's not allowed and they've worked with City Council Meeting Minutes March 15, 2017 Page 9 City staff regarding ways to implement that. Director Levitt stated zoning is confusing with the various lot sizes, but when they come through for preliminary plat, those could be broken out more specifically for each classification of lots and proposed products on the subdivision. Mr. Tibone stated he'd have to see what the HOA documents said regarding outside parking and he would follow up on that. Mr. Tibone stated they could look at shifting the quads' location. Mr. Tibone reviewed the various proposed price points for each style home. Mayor Bailey asked where else Lennar was building the Villas and quads; Mr. Tibone stated there were some in the west metro, in Otsego. The quads are a fairly new product for them and they've not yet constructed any, but they're being proposed here and in Rogers. Mayor Bailey asked if there'd be one homeowner's association for all of those or if there'd be three; Mr. Tibone replied it would probably be three. There would be a master HOA, an HOA tailored specifically toward the maintenance of the Villa product, and an HOA tailored specifically toward the maintenance of the private roads and the quad home products. Mayor Bailey asked about the community gathering place that may or may not have a pool; he asked if that would be available to everybody in all three of the HOAs or if it would be specific to a certain group within that. Mr. Tibone stated they're still exploring that, and it would depend on the amenity that went in; he's not promising or guaranteeing a pool, but it could be done either way. Mayor Bailey stated he'd noticed Director pockter had referenced some concerns about parking, taking away some of the green space as Sunnyhill is finished off; he wondered about other options, and Mr. Tibone advised their engineers were taking a look at that. Council Member Dennis stated the Council has had a desire to see a wider spectrum of housing opportunities made available; he felt quad houses or NextGen were options that would be more fulfilling for the community. Council Member Dennis asked Mr. Tibone if he thought anyone would be constructing single family, stand-alone homes that would be in the $200,000 range. Mr. Tibone stated it was tough to get into that range due to the prices of land, materials, and labor; those prices generally go up. Mr. Tibone stated a smaller house on a smaller lot, starter-type homes, might hit that price target, but it would still be challenging. Council Member Johnson asked about the quad homes; he stated this community would be going into the East Ridge, Grey Cloud Elementary, and Cottage Grove Middle School area. If the quad homes don't become 55+ homes and end up being homes with children, he felt that could make a big impact on the schools; he wanted to know if it could be assured the quad homes could be 55+ with no children. Mr. Tibone stated they would not be age restricted; however, based on the price point and the makeup of the community, that's who they felt would be interested in that type of unit or a young, single professional. He felt young families would outgrow 1,300 to 1,500 square feet pretty quickly and be looking for something a bit bigger, more private, with a yard, etc. based on their market research data. Council Member Johnson asked how much City Council Meeting Minutes March 15, 2017 Page 10 different these are than a townhome of that size; Mr. Tibone stated the quad homes are actually smaller. Council Member Johnson asked about the HOA amenity and the expansion of Sunnyhill Park, and if that would bring future animosity, with other Cottage Grove residents feeling it's only for that specific neighborhood community. Mr. Tibone stated they'd consider that during the preliminary plat process and what the HOA amenity will be, community wide or age targeted. Council Member Thiede stated that Item 19 in the Declaration of Covenants for the HOA includes details addressing the number of NextGen homes that would be allowed within the development, with references that an address number must be displayed on the exterior dwelling for both units and the property owner obtains a rental license if the occupants are not family members. He stated that sounded like there's one house that has two street numbers. Mr. Tibone affirmed that and stated he had to circle back on that with staff and would address that with staff; the intention at this time is to have them be one address. Mayor Bailey asked if anyone wanted to speak on this item before the Council voted; no one elected to speak. Mayor Bailey looked to the Council for a motion. Council Member Thiede stated unless Item 19 regarding the NextGen homes was changed from two addresses on one house, he didn't think he could approve that. Director Levitt stated that issue would be worked through with the Public Safety Department. She felt by the time they had a preliminary plat, that issue would be resolved. They would bring that to the Public Services Commission to get their input on that concern; tonight it's just a concept plan approval. Council Member Thiede asked why they just didn't label those homes as duplexes; Director Levitt stated there was a concern if someone was in the suite that emergency personnel would know to which unit they should respond; their concern was only for an emergency response activity at the premises and not related to the utility services or a rental unit. They're just trying to ensure the Public Safety response model to those properties. Council Member Johnson stated another issue would be the consideration of moving the quad homes further to the east, if that could be reviewed as a possibility, moving it away from the Pine Cliff neighborhood a little bit. He stated it was a suggestion. Mayor Bailey stated the idea was for staff to gather input on what the options and concerns might be, one being Item 19, and the Applicant stated he'd look at some different options. Mayor Bailey stated the placement of homes on the site made sense to him. Mayor Bailey asked the Council if they'd make a motion to approve. Council Member Dennis made a motion to Adopt Resolution 2017-033, approving Lennar Homes' concept plan for a residential development on approximately 146.52 acres of land, currently owned by the Bothes and Milbrandts, located at 8180 and 8190 City Council Meeting Minutes March 15, 2017 Page 11 65th Street South; second by Council Member Mills. Motion carried: 4-1 (Nay by Council Member Thiede). B. Villas of Hidden Valley Staff Recommendation: 1. Pass Ordinance 979 approving the zoning amendment to rezone the property at 7275 Harkness Avenue from R-2, Residential Estate, to R-5, Medium Density Residential District with a Planned Development Overlay (PDO). 2. Approve the Villas of Hidden Valley Planned Development Overlay Plan. 3. Adopt Resolution 2017- 032 approving the preliminary plat for the Villas of Hidden Valley for the development of 191ots for detached single-family residential homes. Director Levitt stated Mike Rygh Homes had made an application for a zoning amendment; the property is located on Harkness Avenue, Hardwood Avenue is located west of the property, and the existing Hidden Valley neighborhood is to the east of the property. The subdivision creates 19 units, and they will be constructing a sidewalk along Hardwood Avenue, as well as an additional right of way for the re-creation of Harkness Avenue at some future time. The developer will also construct an overlook to the basin, the trail area will be extended with some benches for viewing, and there'll be a large, two-tier retaining wall on the south property line to address some topography issues. There will be significant landscaping on the southern property line to soften the retaining wall there, as well as boulevard tree planting and standard shrub and tree placement on each lot. Regarding zoning, it is currently low-density residential; the planned development will have 3.99 units per acre, which meets the classification. Hidden Valley is zoned R4 and R5, as is the Auburn Woods subdivision. There will be modifications and changes to the zoning; lots range now from 6,700 square feet to 14,000 square feet. The average square footage of the 19 proposed lots is 9,000. The developer is also working to install a screening and privacy fence along the south property line. The developer will try to preserve the visual appeal with the trees for properties on the north side of the basin. Director Levitt reviewed the benefits of the development; it will have a private street, privately owned and maintained by the HOA. The homes will be one-story, rambler- style design homes. The Planning Commission and City staff recommend that the Council approval all items. Mayor Bailey invited the Applicant's associate to speak. Todd Polifka, of Custom One Homes, 6939 Pine Arbor Drive South, Suite 100, Cottage Grove, addressed the Council. He stated this is a desired product asked for by the community, as there aren't many similar types of homes in the City. Mayor Bailey stated he'd received some emails asking if there'd be an HOA and what it involved; Mr. Polifka stated that yes, there'd be an HOA. There will be no sheds or outbuildings allowed on the back, and all cars will need to be parked in the garage spaces. It will be a very unique and very well-maintained development. Mayor Bailey asked what kind of timeframe they were looking at; Mr. Polifka stated they'd like to move dirt as soon as City Council Meeting Minutes March 15, 2017 Page 12 possible, beginning building in June, and would like to have one-or-two dwellings ready to go for the fall Parade of Homes. They're currently marketing this development in the spring Parade of Homes; they already have a list of six-to-eight people who are already extremely interested in the product. Mayor Bailey asked where they'd be building the retaining wall on the south side, and if they'd be working with the homeowner who lives to the south to lessen the effect of some of these homes; Mr. Polifka stated they've already had a discussion with the homeowner, which is how the retaining wall and fence got created. Mayor Bailey asked if anyone would like to speak on this issue; Mark Angelo, 7399-73rd Street South, stated he lived right across the pond from this proposed development. When Mr. Angelo first learned about this development, he tried to keep an open mind about it because he realized the City needed one-level living type homes, which are being proposed, with the aging of our population. He attended both the informational meeting in January and the Planning Commission in February; after he attended those meetings, he had concerns about the proposed development. Mr. Angelo stated he's been a flood protection engineer for over 30 years so he didn't want to buy a house on a pond without doing some checking to see what the flood levels were on the pond. He checked with the City and asked about the land around the pond; he learned that there was private land on the south side of the pond, but it was zoned for a rural nature where there could be a maximum of three homes built on that property. He and his neighbors felt they had done his due diligence to try to find out more about their homes and the surrounding land. Mr. Angelo felt it was unfair to the people who bought a home in that area, as now the City's considering changing the zoning to allow 19 homes to be built; had he known that, he likely would not have bought the property. Mr. Angelo asked that the Council also consider the residents who live around that pond when making their decision. Regarding the ponds, he asked if there'd be a whole series of ponds, there'd be multiple ponds along the way or if they'd be able to put one pond in to serve all those properties instead of many ponds down Harkness Avenue. Ponds increase liability, and there have been some negotiations done with the developer for him to compensate the City for putting the ponds on the park property. He was concerned about putting ponds on a public property for the financial benefit of one person; he felt that was a bad precedent to set. Ponds will require maintenance, including dredging to filter sediment, and that should be accounted for. If the ponds were built on the developer's property, the City would still have to maintain them. Regarding the variances, he hoped they'd noticed in the presentation that there was a comparison of the lot sizes, setbacks, and they were comparing averages versus minimums; six of the 19 properties proposed have lot sizes smaller than 7,500 square feet. He cautioned them when they only look at averages compared to minimums, which he thought was deceiving. Lot sizes, setbacks, and road width don't meet City standards, City Ordinances, or codes, so he asked what the point was of having ordinances and codes if you're not going to follow them. City Council Meeting Minutes March 15, 2017 Page 13 He knew the City was worried about liability; as an engineer, he always tried to design things in accordance with codes and standards to limit his liability. If the development is approved as it's shown, it didn't meet the standards of the City, and he felt that would open up the City to liability. He recalled an emergency situation regarding road width in a similar development in Woodbury where the ambulance could not get down the road with cars parked on both sides of the street. He stated parking is always an issue in HOAs, especially during the holidays. Mr. Angelo stated he didn't feel the City was looking at the big picture, as there are too many variances in the development and the zoning not connecting with the Comprehensive Plan. He felt a decision on this should be postponed until there's a chance to make all of those connect and make them consistent and look at that neighborhood as a whole, rather than looking at each property down Harkness Avenue. Mayor Bailey asked if anyone else wished to speak; no one else wished to address the Council. Mayor Bailey asked Director Levitt if there were any legal issues they should be concerned about; Director Levitt stated she'd defer to the City Attorney to see if she felt there were any issues with the way they had proposed the project with the Planned Development Overlay. Director Levitt stated there was one key element to highlight; as a Planned Development Overlay, it enables you to have that give and take from the City standards, as was seen with D.R. Horton's project in East Ridge Woods and Lennar's in Cayden Glen, or the one in Grayson Meadows, which are all Planned Development Overlays. It gives the Council flexibility to vary from some of the standards with other elements that are going to be a benefit to the community. In this case, it's a Planned Development Overlay and has those similar properties and characteristics. Attorney Kori Land stated there is an issue where the zoning ordinance and the Comprehensive Plan don't match, which is where the City needs to take a look at those issues. The City hasn't had the opportunity to do that, but she felt the City was planning on doing that with the Comprehensive Plan update that they're currently studying and were going to look at that overall area. This project just gave it a jumpstart; she said that we need to look at this area right now because we have a project right now. The plan was to make the zoning ordinance and the Comprehensive Plan consistent; this amendment does that, and so, although it wasn't planned to do it immediately, it was eventually going to be addressed in the Comprehensive Plan to make the zoning ordinance consistent with the Comprehensive Plan direction it was headed. The opportunity arose, and City staff chose to make the change now, as opposed to waiting for the Comprehensive Plan overhaul. Mayor Bailey asked if there was the Comprehensive Plan and then the guide and the guide was what we were using in this case. Director Levitt stated that was correct; the Comprehensive Plan outlines the future land use. As Mr. Angelo indicated, it's currently zoned R2, which is 1.5 units per acre, but the overlying guidance for the property is low- density residential, which is the 1 to 4 units. As talked about in the Strategic Plan, we City Council Meeting Minutes March 15, 2017 Page 14 wanted staff to go back and reanalyze that area to ensure that the Comprehensive Plan steering team, as they're analyzing land use throughout the community, was focusing more on this to ensure that it was zoned appropriately and guided appropriately going forward. Staff is undertaking that effort. Regarding the ponds, Mayor Bailey asked if the developer would build the ponds on the property next to them, which would be City-owned property; Director Levitt stated that was correct. In the future, if we start developing further down Harkness and Hardwood, he asked where that water was proposed to go. He felt we had just approved some upgrades to the lift station tonight in the Consent Agenda, which would service some of that area; Director Levitt confirmed that. Mayor Bailey asked if there was already some pond capacity along Hardwood Avenue; Director Levitt stated there were some large basins just to the north of this property, but there is also a large basin linear, following Hardwood, that's between Hardwood and Harkness. There is some capacity there to address the rate control. Director Levitt stated as with any project regarding rate and water quality components, without having an overall comprehensive study of how it's going to develop, it was premature for her to guess how we could manage that in a very cost-effective way; however, she believed as they look at the development of that area, we could find a way to ensure that we're providing that in the most efficient way. Obviously, if there are opportunities for us to reduce the impacts to trees due to storm water basins that can be constructed efficiently, meaning smaller, with less impact, they want to be able to ensure that that can also happen. That's something that they'll have to undertake in a more comprehensive review of the area. Regarding the actual storm water basin, the fee that Mr. Rygh is paying is equivalent to $70,000 per acre for the land that is just to the north in the public open space, and approximately .41 acres of land is what's being dedicated as part of a storm water basin. Regarding the storm water ponds, all of the City ponds that are constructed as part of any development are actually put into an outlot and dedicated to the City. As Mr. Angelo pointed out, maintenance needs to occur in those basins. They found many years ago that homeowners' associations were not geared up to do that activity and it was best for the City to undertake the management of those basins. Obviously, it provides for flood protection because there is a capacity that can be eaten up in those basins with the sediment that's deposited. They also want to ensure the water quality is maintained; therefore, the City undertakes that effort. From a liability standpoint, they construct basins all over the community and haven't had an issue. Regarding safety of those basins, there are two things, a maintenance bench and an aquatic bench, which are small, sloping areas that are approximately 1 to 10, so it's very tapered in its design; therefore, if anybody were to enter the basin, it doesn't have a steep drop-off by any means. They're also infiltration basins, so most likely City Council Meeting Minutes March 15, 2017 Page 15 they're not going to hold a lot of water, only probably for a few days after a large rain event. On the comment made regarding the street widths, Director Levitt clarified the actual street width from curb to curb is 28 feet, which is the City standard. Regarding the narrowing that's referenced, it's the narrowing of the right of way; right of way typically is 60 feet, and in this case it's being proposed at 50 feet. Due to that and the reduced snow storage, it's better that it's operated under a homeowners' association for plowing and maintenance with the narrow right of way. The actual turning movement of the radius of the cul-de-sac does not impede our emergency vehicles on navigating that circle, so there should not be any issues pertaining to that. Under the HOA, they'll probably address parking also, similar to their other developments. Mayor Bailey asked if it had previously happened where we told a developer we're not going to develop a pond over here, on your property, but instead we're going to do it over here; Director Levitt replied that had been done with the South Washington Watershed District. The D.R. Horton subdivision, East Ridge Woods, Lennar's development, Cayden Glen, and the Grayson Meadows development all utilize the South Washington Watershed District's open space to provide an efficient manner for treating the storm water. So, in that sense, we have. Mike Rygh's subdivision, Everwood 4th, did something similar with treatment occurring downstream, adjacent to Hardwood, a few years ago. It's not an uncommon practice for the City to do that, as the goal is to be able to treat storm water in the most efficient manner possible. Mayor Bailey asked what they were providing the City for the ponds being offsite; Director Levitt stated it was Condition #17, offsite storm water facility fee is $24,586, which is equivalent to $70,000 an acre, or approximately .41 acre basin; the payment of that fee is due to the City once the development agreement between the City and the developer is fully executed. Condition #16 is the park dedication of$64,600, in addition to the trail and benches overlook that will be constructed. Condition #18 requires the developer to pay a tree mitigation fee of$28,600, in addition to the trees that they're planting on the subdivision. Motion by Council Member Mills to pass Ordinance 979 approving the zoning amendment to rezone the property at 7275 Harkness Avenue from R-2 Residential Estate, to R-5, Medium Density Residential District with a Planned Development Overlay (PDO); second by Council Member Thiede. Motion carried: 5-0. Motion by Council Member Dennis to approve the Villas of Hidden Valley Planned Development Overlay Plan, second by Council Member Johnson. Motion carried: 5-0. Motion by Council Member Thiede to Adopt Resolution 2017-032 approving the preliminary plat for the Villas of Hidden Valley for the development of 19 lots for detached single-family residential homes, second by Council Member Mills. Motion carried: 5-0. City Council Meeting Minutes March 15, 2017 Page 16 12. COUNCIL COMMENTS AND REQUESTS Council Member Mills congratulated Billy Thao, who was named the Artist of the Month through the Arts Commission; he shared some of his artwork, which is on the City's Facebook page. Council Member Mills stated the next Fare For All will be held Thursday, March 16, at All Saints Church, and they're also still looking for some volunteers so she encouraged anyone who can help to do so. Council Member Mills stated the Lions' Easter breakfast will be on April 2 at the VFW Red Barn; she encouraged people to bring their children, as the Easter Bunny will be there. Council Member Dennis commended Mayor Bailey on the great job he did on the State of the City address, and acknowledged the work Communications Coordinator Sharon Madsen did on that presentation. Council Member Dennis stated one thing that wasn't mentioned, though, was the number of permit valuations for industrial, commercial, and residential developments, which was approximately $160,000,000, which he thought was absolutely fantastic. He didn't think they'd ever had numbers like that in the past. Council Member Dennis thanked the individuals who were authorized tonight for Commission appointments; he thanked them for volunteering for the City, to help make a difference. He encouraged anyone interested in serving on a Commission to access the City website, Boards and Commissions, and download an application. City Clerk Fischbach would love to receive applications from residents for those positions. Mayor Bailey stated the Friday Fish Fry continues at The Eagles Bar & Grill; they've been very busy, and the food is fantastic. Mayor Bailey stated there will be a Kid Fest, at the Ice Arena, on March 25; there will be many things for the kids to do, so he encouraged anyone interested to bring their kids there. Mayor Bailey stated on April 8, the Cottage Grove Recreation Department will be having the annual Easter Egg Hunt, which will be on the inside turf, so weather won't be an issue. He encouraged everyone to join in on that event. Mayor Bailey stated on April 22 the Chamber Business Showcase will take place at the Ice Arena; come and try different foods and check out the vendors. It's a free event and is open to the public. Mayor Bailey and City staff will be there, at the City booth, so he always likes to hear what people have to say. Mayor Bailey stated the Minnesota Wild is working with the Minnesota Army National Guard; they're having a contest, Hockey Town Minnesota, and the City of Cottage City Council Meeting Minutes March 15, 2017 Page 17 Grove is competing against Brooklyn Park and Duluth. Coordinator Sharon Madsen stated that's been posted on the City's Facebook pages, it's on Mayor Bailey's Facebook page. You basically go on there and vote for which City you believe should be named at the next hockey game for the Minnesota Wild, and they'll announce the fact that Cottage Grove was selected as the hockey city of the state. He encouraged people to vote for Cottage Grove and find out how we were named as a contender in the contest. Mayor Bailey stated regarding the Villas of Hidden Valley, he wanted to know when the City would be to the point where the Comprehensive Plan committee would come to the City Council and give an update of what their thoughts were. He knew they were looking at that entire area for perhaps a guidance change; he wanted to be able to give that information to the public. He felt people weren't against this type of housing, but were concerned because we don't quite know what's planned for the areas next to it. Director Levitt stated they'd sought a proposal for assistance on the study of that area; they anticipate they'll have that proposal before the Council on April 5, as it has an aggressive schedule to have something before you to look at the details and options by July for master planning of that area. 13. WORKSHOPS — OPEN TO PUBLIC — NONE. 14. WORKSHOPS — CLOSED TO PUBLIC — NONE. 15. ADJOURNMENT Motion by Council Member Dennis, second by Council Member Thiede, to adjourn the meeting at 9:15 p.m. Motion carried: 5-0. Minutes prepared by Judy Graf and reviewed by Joe Fischbach, HR Manager/City Clerk.