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HomeMy WebLinkAboutMinutes i� ��tJV� �ri°t � y � ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ���� �ri e ar�d PC�� t MINUTES COTTAGE GROVE CITY COUNCIL March 21 , 2018 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 21, 2018, 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; Les Burshten, Public Works Director; Christine Costello, Director of Economic Development; Joe Fischbach/HR Manager/City Clerk; Jennifer Levitt, Community Development Director/City Engineer; Sharon Madsen, Communications Coordinator; Robin Roland, Finance Director; Pete Koerner, Director of Public Safety. 4. OPEN FORUM Mayor Bailey opened the open forum and 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 Mills to adopt the agenda; second by Council Member Dennis. Motion carried: 5-0. 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 21, 2018 Page 2 6. PRESENTATIONS A. Meritorious Service Award Staff Recommendation: Present Meritorious Service Award to Sergeant Michael Coffey for his efforts in implementing the multi jurisdictional MFF Team. Along with implementing the team, Sergeant Coffey has been instrumental in training over 300 officers, developing policy, callout procedures and requirements, and standard operating procedures. The nomination came from a team member that recognized Sergeant Coffey's efforts. Mayor Bailey invited the Council Members to join him and Director of Public Safety Pete Koerner in front of the dais for the presentation. Director Koerner explained the necessary requirements to receive the Meritorious Service Award. He stated the Mobile Field Force program had been created by Sergeant Coffey and members of other jurisdictions. He stated that what Sergeant Coffey had done was the norm for him; there was no question when this program had been suggested that Sergeant Coffey would be chosen to work with Washington County. Director Koerner stated this award for Sergeant Coffey was long overdue. Since 2008, there have been a half dozen Meritorious Service Awards so they're not just given to anyone. Director Koerner reviewed Sergeant Coffey's many accomplishments since he was hired and stated he's very passionate about his work. Washington County Sergeant Legut actually nominated Sergeant Coffey for the award; Director Koerner stated Sergeant Coffey would be the first to tell you the Mobile Field Force was a team effort. Director Koerner read the Certificate aloud, presented Sergeant Coffey with the Chief's Coin, and Captain Rinzel presented Sergeant Coffey with the medal and ribbon. Sergeant Coffey stated he was not expecting this and was shocked when it happened; he stated that this award was not about him and there were half a dozen other people who should be standing here with him, as it's truly a team effort. He's proud of the team and their accomplishments and was excited to see where they'd be in the future. He thanked everyone and especially Sergeant Legut for the nomination. 7. CONSENT AGENDA A. Approve the February 21, 2018 City Council Regular Meeting Minutes. B. Approve the March 7, 2018 City Council Regular Meeting Minutes. C. Receive and place on file the approved minutes for the Arts Commission meeting on February 13, 2018. D. Accept and place on file the minutes from the January 9, 2018 meeting of the Advisory Committee on Historic Preservation. E. Consider authorizing plans and specifications from Stevens Engineering for replacement of north and south rinks at the Cottage Grove Ice Arena. F. Authorize the purchase of workers' compensation insurance from the League of Minnesota Cities Insurance Trust in the amount of$389,818, City Council Meeting Minutes March 21, 2018 Page 3 which includes the experience modifier, a premium discount, and a $25,000 per occurrence medical deductible. G. Execute Joint Powers Agreement with Washington County Sheriffs Office, Police Departments of Forest Lake, Oak Park Heights, Oakdale, St. Paul Park, Stillwater, and Woodbury, which together make up the entity known as the Washington County Mobile Field Force (MFF). H. Pass Ordinance 993, amending City Code Title 5, Chapter 4, regarding Animal Control. I. 1) Adopt Resolution 2018-035 approving the Cottage Grove Woods preliminary plat and final plat that subdivides two existing taxing parcels of land with a cumulative land area of approximately 17.6 acres into two lots and one outlot. 2) Adopt Resolution 2018-036 approving the site plan review application from Triple Angels Healthcare for the construction of a 9,215 square foot one-level building with 15 parking spaces and a future building addition of approximately 6,732 square feet with additional parking. J. Adopt Resolution 2018-031 authorizing the preparation of a feasibility report for the West Point Douglas Road Reconstruction & Utility Project from 96th Street to the Jamaica Avenue intersection. K. 1) Adopt Resolution 2018-032 approving the Comprehensive Plan amendment to change the land use of the property at 6541 85th Street South from Parks and Private Open Space to Low Density Residential. 2) Adopt Resolution 2018-033 approving the preliminary plat and final plat to be called Thompson Grove Country Club, which will subdivide a 1.36-acre parcel of land into three single-family residential lots. 3) Adopt Resolution 2018-034 approving the Contract for Residential Development. L. Receive response to Council Member Johnson's request to provide information about the community at model homes in our new developments. M. Appoint Ken Brittain as Chair of the Planning Commission. N. Approve the Private Utility Easement Agreement for a private electrical facility located on Outlot B of Sunny Hill Park, adjacent to the Well 12 property along Ideal Avenue. O. Adopt Resolution 2018-038 calling for a public hearing by the City Council on the proposed adoption of a modification to the development program for Development District No. 1 and the proposed establishment of Tax Increment Financing District No. 1-18 therein and the adoption of the tax increment financing plan therefor. P. Authorize sending the letter of support to the Metropolitan Council Environmental Services for the Wastewater Reuse Program. Q. Approve the temporary construction easement agreement with HHHJWB, LLC, for the temporary grading on land within Hamlet Park. R. Approve the issuance of rental licenses to the properties listed in the attached table. City Council Meeting Minutes March 21, 2018 Page 4 S. Adopt Resolution 2018-037 approving the interim conditional use permit for a 25-year period and a variance to the 300-foot minimum setback requirement for the proposed construction of a one-megawatt community solar garden by US Solar Meister on approximately 10 acres in the southwest corner of a 38.9-acre parcel of land. T. Appoint Commissioner Joe Kovarik as Chair of the Arts Commission. U. Adopt Resolution 2018-043 awarding the quote for the 2018 Citywide Sweeping Project to Mike McPhillips, Inc. for$81 per hour based on that company's lower average fleet age, their proximity to Cottage Grove, and their past work history for the City. V. Recommend to the Washington County Board of Commissioners the reappointment of Don Pereira as a Manager for the South Washington Watershed District. Council Member Mills wished to pull Item T, Council Member Dennis wished to pull Items M and S, and Council Member Thiede wished to pull Item E for further comment and/or discussion. Mayor Bailey advised Council they'd be voting on the agenda items, but Items E and S would be voted on separately as there was going to be some discussion about those. Council Member Mills stated she'd like to recommend Joe Kovarik as the Chair of the Arts Commission for the next year; she'd appreciate supporting votes from the Council. Council Member Dennis stated he was recommending Ken Brittain be appointed as the Planning Commission Chair. He reviewed Mr. Brittain's history with the Planning Commission; it initially began in 2003. Those who know Mr. Brittain appreciate his work and know he does a really good job serving in the lead capacity on the Commission. Council Member Dennis asked for the Council's support in reappointing Mr. Brittain as Chair. Motion by Council Member Thiede to approve the agenda, except for Items E and S; second by Council Member Johnson. Motion carried: 5-0. Council Member Thiede stated he wanted more information on Item E, the Cottage Grove Ice Arena System Replacement. There was extensive planning and research in 2014, and he hadn't seen in the plans any breakdown on the $189,300. He also noticed there was a 10% charge for expenses, for which he requested an explanation. Jordan Hirman, Recreation Facilities Manager, and Scott Ward, an owner and Vice President with Stevens, were both present to answer questions. Mr. Ward stated that in 2014 the study was performed on the Cottage Grove Ice Arena to look at the ice system; that was a planning study to help determine what type of systems would be possible for the replacement of the existing R-22 system. At that time, no design work was done; they looked at different options and provided cost estimates and scheduling City Council Meeting Minutes March 21, 2018 Page 5 for the City so they could plan for the replacement. This proposal is for the full design services and construction administration services for the replacement of those systems. There'd be months of design work in 2018 and construction would take place in 2019, beginning in March. It's not just the ice system design; the cost includes a whole team of designers (architects and mechanical, electrical, and structural engineers) and updating the refrigeration system to meet fire codes, etc. Council Member Thiede confirmed he was correct in that there was no breakdown of how the $189,300 was calculated; he was advised that could be provided to him. Most of the work will be done inhouse, but there are architectural and mechanical consultants that they'll be using. Council Member Thiede asked about the extra 10% fee; he was advised that's just an administrative fee. For this project, there will be some copying fees; most of their work is electronic now. The other expense for this project will be mileage from their office to here. He was advised that 10% fee could be removed; it's just their standard practice to include it. Mayor Bailey asked Mr. Hirman to explain why the R-22 process is becoming obsolete; he replied that R-22 is being phased out by 2020. Currently, there is between 8,000- 9,000 pounds of R-22 in the system; at $25 per pound, that's $200,000 sitting in the floor. It was cost effective to start planning this in 2014 so by 2019 the plans and funds would be on hand to start the replacement. Ammonia is the best alternative at this time. Mayor Bailey asked if the process will be to bring all the rinks together under the same umbrella. Mr. Hirman stated that the new west rink has ammonia, a separate system, and the new one will also be a separate system, so there will be two completely separate systems housed on the property. Mayor Bailey asked if they'd be looking at other things to make the building more energy efficient; that was confirmed. Those items would be coming back before the Council for their decision on what will be done and the costs involved. Mayor Bailey thanked both gentlemen for answering questions. Motion by Council Member Thiede to approve authorizing plans and specifications from Stevens Engineering for replacement of north and south ice rink systems at the Cottage Grove Ice Arena, with the condition that we get the detail on the $189,300 and also removing the 10% on the expenses; second by Council Member Dennis. Motion carried: 5-0. Council Member Dennis stated Item S, the US Solar community garden, brings some challenges. The Kohls family approached him with concerns that they had regarding their property and where this solar garden would be placed on the property. There is a fear that if the variance is allowed and the solar garden is put in the corner of the property, setbacks by definition would allow additional solar garden expansion onto other areas of the property, which the Kohls family opposes. If it stays in the middle of the parcel, Council Member Dennis feels they would be prohibited from expanding the footprint because of the distance allocations. A variance is a permanent condition of the property; he said he'd reached out to City Attorney Land, who provided him with information. He read aloud proposed language changes he would like made. If the City Council Meeting Minutes March 21, 2018 Page 6 area was zoned for solar, what would prevent them from coming back later, saying that they'd like to have more land; he felt there was no protection unless some language was added. The Kohls family is seeking to mitigate noise and disturbance to their property by asking that the private access road be as far away as possible and along the western front, which would divide between the other solar garden that is presently there and their property. He felt that was reasonable and made sense from a structural standpoint. He asked the Council to do what would be in the interest of this family. Council Member Dennis asked that Cheryl Kohls have a chance to address the Council. Cheryl Kohls, 11825 70th Street South, Cottage Grove, stated she and her husband have lived there for about 40 years. She stated their main concern is this is a 40-acre plot; she didn't think it would take long before somebody else would come in and want to do the same thing. She felt if it was allowed for US Solar without setbacks on 10 acres, then you've set a precedent for the next 10 acres and so on. They're asking if there's a way US Solar can use the 10 acres and keep the rest of the 30 acres for farming. If not, then they oppose the variance and would ask the Council to go back to what the City had decided for setbacks. Erica Forsman, Project Developer with US Solar Corporation, 100 North 6th Street, Minneapolis, gave a summary of their intent. In addition to the application they made, they felt it might be better for the community to request a variance that would move the site further from the road and further from the neighbor. They'd met with Mrs. Kohls and requested pine and deciduous trees were added to the plan. US Solar recommended a rural fence, but City staff recommended they go with a chain-link with barbed wire. There is not an ability to expand outside of the 10-acre lease. She spoke with the landowner, and if Council feels it's absolutely necessary to add additional language, they would accept that; we're asking for a variance on two sides of the property, not on the Kohls' side or the side from the public right-of-way. They didn't feel the additional language would be necessary. Regarding the location of the road, she asked as the City Attorney recommends language that they keep in mind that in addition to Washington County, Xcel has an easement there, as does the solar garden owner to the south. While we believe we can get approvals there, they asked it not be a requirement that it's there but perhaps a requirement that we attempt to seek all the proper approvals to locate using the existing access road on that western property line. Ms. Forsman stated they've spoken to the solar garden owner to the south; it's a win- win if they take over the maintenance on that road for them. They said that would work, but they haven't approached Xcel or Washington County because that's part of our conversation in terms of prepping for building permits about using that site. They're trying to use the road that's already there. City Attorney Land stated she'd suggested they'd attempt to move the road as far to the west as possible, subject to the appropriate parties that are interested in that private access road; they can work on the exact language, but as long as the property owner and the solar company are agreeable to that term, they can draft the appropriate City Council Meeting Minutes March 21, 2018 Page 7 language to make sure that it's subject to approval to try to get it into the private access road. If that's not possible, then it's as close to that western boundary line as possible. Council Member Dennis stated his goal was to ensure that the two points of concern were met; he asked Mrs. Kohls how she felt about this. Mrs. Kohls stated they agreed with the road and they can use the same road or go around the west side. Council Member Dennis stated US Solar might not come forward with the request to put additional expansion in there, but he wondered if another company might. He asked what we would do then, as the zoning is already set. Mayor Bailey asked if the intent for the variance was because they were shifting it off of the center, which was creating a setback situation; Ms. Forsman stated yes, and the fact that it's just an interim conditional use permit (IUP) request. Mayor Bailey asked if that was a desire to get it further away from the Kohls' property or if it was a desire for the landowners to continue farming on that property; the landowners replied, yes, absolutely. Mayor Bailey stated if the owners' intent was to continue farming the existing property, if would make sense if it was shifted, and asked how that could be addressed in this process. He requested Attorney Land's input. Attorney Land stated logistically it wouldn't be possible to place the solar farm on that particular lot, given that they're taking up 10 acres; if another solar company were to come in to try to use the balance of the property, they would be required to meet all setbacks. She felt the City was pretty well protected without having to go to the extreme of saying that the landowner can't use the property for other than what you have already deemed to be an acceptable use. The solar company is willing to agree that they will not come back and ask for an expansion. The property owners agree that they will not ask for an expansion of this particular IUP. We can't put an unreasonable restriction on the balance of the property for something that's already deemed to be appropriate if someone were to come in with an application that meets all of the City's guidelines and requirements. Mayor Bailey stated if somebody were to come in they wouldn't meet the guidelines. Attorney Land stated her guess was they'd not be able to do it and make it economical, as it would have to be such a small footprint that it wouldn't be worth their while. Ms. Forsman commented that there's only a very skinny L-shaped strip of land for which they could even apply for an IUP. Mayor Bailey asked if the City required a minimum of 10 acres, that strip of land would not meet the 10 acres; Attorney Land stated that's what she believed. Council Member Johnson asked if the 10 acres could turn into 20 acres by adding to the top and to the side, as it would still stay 300 feet away from the property. He wondered if they couldn't just build onto the 10 acres. Ms. Forsman stated if it was another developer that would not be an economical shape to work in; once this is installed, to reconfigure, it doesn't seem that it would be likely. She felt the landowner just didn't want additional restrictions; they're fine with the setbacks as they stand. Council Member Johnson asked if when the solar garden was put in, if it could only be in the City Council Meeting Minutes March 21, 2018 Page 8 square shape or put into an L shape, and if they can do strips of land with solar; Ms. Forsman replied it gets very expensive, and the costs would be prohibitive for wiring. Motion by Council Member Dennis to put the 10-acre parcel back in the middle of the 40-acre property; no one seconded. Motion failed. Motion by Council Member Dennis to approve the US Solar Meister interim conditional use permit for a 25-year period and a setback variance to allow the proposed construction of a one-megawatt community solar garden on approximately 10 acres of land in the southwest corner of a 38.9-acre parcel of land, subject to the conditions recommended by the Planning Commission, which are located in the attachment draft resolution with the following condition: Resolution condition 12, as a condition of the variance, if approved, the maximum area occupied by the solar ray field and ancillary equipment is limited to 10 acres of land inside the proposed leased area, excluding landscaping wind rows proposed on the north and east sides of the solar array field. No additions or expansions of solar-related equipment or its resulting operation may be added on the property outside of the original leased area; second by Council Member Thiede. Motion carried: 5-0. 8. APPROVE DISBURSEMENTS A. Approve payments for the period of 3/7/2018 through 3/22/2018 for the amount of$833,477.73. Motion by Council Member Thiede to approve disbursements; second by Council Member Mills. Motion carried: 5-0. 9. PUBLIC HEARINGS A. McDonald's Redevelopment and Vacation of Sanitary Sewer Easement Staff Recommendation: 1) Hold the public hearing to vacate and discontinue the public sanitary sewer easement over the property at 7355 East Point Douglas Road. 2) Adopt Resolution 2018-039 vacating and discontinuing the public sanitary sewer easement. 3) Adopt Resolution 2018-040 approving the site plan for the demolition and redevelopment of the Cottage Grove McDonald's restaurant located at 7355 East Point Douglas Road South. Community Development Director/City Engineer Jennifer Levitt stated this public hearing was regarding the easement area for the sanitary sewer; she felt it would make sense to go through the site plan application so the importance of the easement vacation and reestablishment could be explained. The site plan was to reconstruct the McDonald's restaurant, 7355 East Point Douglas Road, across from Hy-Vee. She reviewed the proposed site plan and how it compared to the existing McDonald's. She explained the footprint of the building will be situated in the same orientation. The two City Council Meeting Minutes March 21, 2018 Page 9 access points off of East Point Douglas Road will remain, with an improved sidewalk adjacent to East Point Douglas Road. The current site plan provides for 51 parking stalls, as nearly 75% of their business is via the drive-thru. The trash enclosure will now be within the building itself. Engineer Levitt reviewed the existing easement for the sanitary sewer pipe; they're proposing to realign the sanitary sewer straighter to ensure serviceability and ensure proper flow, which is an improvement. She asked the Council to hold the public hearing and adopt the two Resolutions for the McDonald's restaurant. Mayor Bailey asked about the landscaping and green space; Sean Murphy with Landform, 105 South 5th Avenue, Suite 513, Minneapolis, MN, 55401, stated they're excited about this project. With the relocation of the sanitary sewer, it will be landscaped but not with anything that will have much height to it, as Public Works likes to have trees located in other places. They're still working on modifications to the landscape plan to properly orient trees, shrubs, and perennial plants to conform with the City Ordinance. Mayor Bailey opened the public hearing; as no one wished to speak on this topic, Mayor Bailey closed the public hearing. Motion by Council Member Dennis to Adopt Resolution 2018-039, vacating and discontinuing the public sanitary sewer easement; second by Council Member Thiede. Motion carried: 5-0. Motion by Council Member Mills to Adopt Resolution 2018-040, approving the site plan for the demolition and redevelopment of the Cottage Grove McDonald's restaurant, located at 7355 East Point Douglas Road South; second by Council Member Johnson. Motion carried: 5-0. Mayor Bailey asked what the timing of this project would be; he was advised the new McDonald's should be opening later this fall, and construction would start somewhere in July or the end of August. 10. BID AWARDS — None. 11. REGULAR AGENDA A. Hamlet Heights Preliminary Plat Staff Recommendation: 1) Adopt Resolution 2018-041 approving the preliminary plat for a single family residential subdivision containing 241ots and three outlots on a 10.35-acre parcel of land to be known as Hamlet Heights. 2) Adopt Resolution 2018-042 authorizing staff to execute the required documentation to acquire the tax forfeited property(Parcel 17.27.21.33.0090) adjacent to the Hamlet Heights Subdivision for public right-of-way purposes. City Council Meeting Minutes March 21, 2018 Page 10 Director Levitt stated this was an application made by Eternity Homes. Hamlet Heights is a single-family residential subdivision on just over 10 acres of land; it's located adjacent to Hamlet Park. It's guided as low-density residential and zoned R-3, so there are no zoning changes proposed. Public utilities are already stubbed to the site, and sanitary sewer is currently in place. Landscaping will meet ordinance requirements on every lot and will ensure the additional open space area is landscaped appropriately. Council Member Thiede asked about emergency access options to that area; Director Levitt stated there was a significant grade change from where the water tower sits in relation to the plat. A squad car could probably use it going downhill, but if an ambulance or fire apparatus were needed, it would be more challenging. To ensure accessibility, they're recommending the trail be used instead. Council Member Johnson asked about the tax-forfeited land and who currently owned that land. Attorney Land stated Washington County owns the land because it was tax forfeited, so Washington County always offers it to the local government unit to see if they want to acquire it. In this case, it makes sense for the City to use it. Mayor Bailey asked if the applicant wanted to speak; John Anderson, Eternity Homes, 14832 Estate Avenue Southeast, Prior Lake, Minnesota, stated they're looking to develop this site this summer by paving streets and start building homes this fall. Council Member Johnson asked if these homes would have full basements; he was advised they would. Council Member Johnson asked how difficult it would be to put full basements in with that land; Mr. Anderson stated they'd done soil samples and they knew there was bedrock in the ground in certain areas. They're also raising the site up with the fill from the pond area so they don't think it will be a problem. Bill Murphy, 8960 Hamlet Avenue South, Cottage Grove, stated he's lived on the dead end of Hamlet Avenue for 50 years; now there are 24 houses that are going to be built on the empty area. He said there are concerns about bedrock blasting and damage to the existing homes. This is not the first time a developer has tried to build houses in that area; eight years ago Orrin Thompson attempted to add more homes, but they cancelled their plan after four homes were damaged with excavation and blasting. He stated there are concerns about storm water runoff, basement foundations, and emergency access. At the Planning Commission Meetings, they understood our concerns and are working hard to avoid damaging existing homes. He wanted to confirm that this was a preliminary approval only and the final approval would come before the Council before any construction starts, this was confirmed for him. Mayor Bailey asked Engineer Levitt to speak to concerns from the neighborhood meetings. Regarding storm water challenges, basins were constructed; the developer will be paying for necessary storm water conveyance of that out to the regional storm water basins, so that issue should no longer be seen. Regarding the blasting, it's City Council Meeting Minutes March 21, 2018 Page 11 important that residents understand the City would have to issue a permit for the blasting; as part of that, there's very specific criteria regarding the monitoring, which is done by third parties. As part of the grading permit issued, conditions would be placed on them to ensure those items are also addressed. The developer has indicated much of the site is being raised with filament material; if conditions change as part of the grading permit, they'd be asked to halt construction and if blasting is necessary, they'd get the necessary protocol in place to ensure that that happens. That activity would not take place before they came to the City for approval to ensure that their monitoring plan is appropriate. The City wants to ensure that the residents' property is protected and will do everything necessary to document and ensure their property is protected from the activity on the site. Council Member Johnson asked if the monitoring would monitor the actions of the blast, what if the one blast causes the damage and that's when that process is stopped. Council Member Johnson stated regarding homeowner's insurance, if the homeowner would be out money or if there could be a bond or something put in place that would take care of that if there was something that happened so the homeowner would be taken care of, and then the insurance companies can go at from there. Engineer Levitt stated with any type of blasting, they're putting actual monitors in the ground so they're testing the actual vibration that's coming through; there are allowable levels of vibration to be emitted through the earth so there are standards. Documentation of existing condition of the property is sometimes necessary; the sanitary sewer line actually runs straight through the site. If anyone should be concerned about vibrations, it's actually the City because that's a trunk sanitary sewer line, which serves the Thompson Grove neighborhood. Council Member Johnson stated he understood that, but he's concerned about residents who've been there for 50 years. He wondered about a performance bond or damage bond that could be there just in case something happened so they'd be protected. He wondered if there was anything that could protect everybody. Attorney Land stated they'd be entering into a development agreement with this developer for the project, so they can certainly build in an extra protection regarding that concern. When it comes before the Council again, we can point out what protections would be reasonable and what the developer has agreed to do in order to protect the City's infrastructure, as well as the residential neighborhood adjacent to it. Mayor Bailey stated he was at the neighborhood meeting and the developer had stated that they would do what was necessary to protect the homes in that area. He felt the more we can do to be certain that everything necessary has been done to protect everyone is a good thing. Motion by Council Member Dennis to Adopt Resolution 2018-041 approving the preliminary plat for a single family residential subdivision containing 24 lots and three outlots on a 10.35-acre parcel of land to be known as Hamlet Heights, subject to the conditions found in the draft staff report; second by Council Member Mills. Motion carried: 5-0. City Council Meeting Minutes March 21, 2018 Page 12 Motion by Council Member Thiede to Adopt Resolution 2018-042 authorizing staff to execute the required documentation to acquire the tax forfeited property (Parcel 17.27.21.33.0090) adjacent to the Hamlet Heights Subdivision for public right-of-way purposes; second by Council Member Johnson. Motion carried: 5-0. 12. COUNCIL COMMENTS AND REQUESTS Council Member Mills stated on March 24, there was a Paint `N Sip at River Oaks; there are a few spots still open so if you'd like to join this event, please do so. Mayor Bailey stated he and his wife would be there, so anyone who wants to come and laugh at his painting is welcome to do so. Council Member Dennis stated the previous evening Mayor Bailey and he attended the Park Grove Library Community Engagement at the Park Grove Library in Cottage Grove. They're reaching out to the community for feedback and thoughts on what could be structured into a brand-new library. The website address is ���r..�r��.h�c�ll.ii.�..�r /f���r�. There will be updates and ways for people to become engaged in the process of defining what the new library could look like. Council Member Dennis stated on May 3, in the Council Chambers, he and Council Member Thiede would be hosting a Town Hall Meeting for the community. There will be an overview of recent happenings and want to hear citizens' thoughts and opinions on City operations, budget issues, current policies, or anything else that's important to the community. Council Member Dennis stated he had a chance to attend the single family homebuilders panel on March 15; three different builders were present. He shared some things he learned: Lot widths: 65 feet is now the new 80, with average depths anywhere from 130-140 feet. New homes: More livable with vaulted ceilings and open floor plans. More money is being spent on the home's interior amenities with granite, stainless steel, and upgraded fixtures. Exterior treatments are trending toward stone and brick as accents, as opposed to entire facings. Extra emphasis is being placed on back yards as an entertainment amenity. Desirability leading factors: Location, design, and price. Schools are no longer considered to be a Top 5 motivator for people. Builders are encouraging people to consider livability first and foremost; "Space and room is a matter of perception." Differences between new and existing home costs have never been greater; the market has seen up to a 70% disparity between the two. We are near record low levels of available used housing. Pricing parameters are based on these factors: Land cost, labor, materials, and fees. A typical home would include $75,000 for lot improvements, excavation with grading, and landscaping. A home can cost from $200,000 to $250,000 for labor and materials, plus the cost of the land itself. Homes cannot be built at price points less than what the market seeks and is prepared to bear while still providing builders and developers with a City Council Meeting Minutes March 21, 2018 Page 13 level of margin that supports those projects. Council Member Dennis stated his parents had bought a home in 1968 for about $20,000; 21 years later, when he built his house in Cottage Grove, the cost was about five times higher. Now, houses start at about $360,000 to $450,000. Council Member Thiede stated tomorrow evening, March 22, in the City Hall Training Room is the My Future Cottage Grove group meeting regarding retail and restaurants. It's an open meeting and input from all residents would be welcome. Mayor Bailey stated Saturday morning, March 24, at the Cottage Grove Ice Arena is the local Easter Egg Hunt; the number of people allowed inside is limited, so he encouraged people to check out the Parks and Recreation Facebook page or contact the Recreation Department to sign up; there's still a bit of space available. Mayor Bailey stated on Sunday morning, March 25, the annual Cottage Grove Lions Easter Breakfast will take place at the Cottage Grove VFW Red Barn. This is an annual event put on by the Lions so he encouraged everyone to attend. Mayor Bailey stated on the evening of April 3, at Park High School, there will be a meeting with the Pollution Control Agency, the DNR, and the Department of Health regarding what the 3M settlement means to the City of Cottage Grove, and the process that will be followed regarding treatment for our community. Public feedback will be welcome. Mayor Bailey stated Kids Fest will occur at the Cottage Grove Ice Arena on April 7, in the morning; it's a free event so he encouraged families to attend. 13. WORKSHOPS — OPEN TO PUBLIC — CONFERENCE ROOM A. Majestic Ballroom Site Redevelopment Christine Costello, Director of Economic Development, stated Matt Yetzer and Chris with MWF Properties were present to discuss the redevelopment of the former Majestic Ballroom site, which is just east of the Public Works facility on West Point Douglas Road. It's part of the Langdon Village, which has always been guided for future redevelopment with a combination of commercial and high-density residential. This area is part of the Bus Rapid Transit (BRT) process. Road improvements to West Point Douglas Road and the addition of utilities will be necessary in order for redevelopment of the area to occur. Matt Yetzer of MWF Properties stated they're very early in the process of redevelopment, with basically just a site plan completed, and they're looking for Council feedback. Council Member Thiede asked how soon they'd break ground; he stated the earliest would be in the spring of 2019. Council Member Thiede asked if they'd be building condos, etc. or rental units; he advised they'd be rental units. He reviewed their City Council Meeting Minutes March 21, 2018 Page 14 previous developments in other cities. Council Member Thiede asked what their current vacancy rate was; he was advised overall it's one-to-two percent, and their development in Newport was fully leased before they opened. Their proposed project is 174 units, four stories, with one-, two-, and three-bedroom units, from 700 to 1,150 square feet. Rents will range from $950 to $1,340. He reviewed the site plan, and stated there will be underground parking available, as well as a parking lot. Council Member Johnson asked if they only built rent-controlled facilities; he was told that was correct, as there's much demand for these properties. Council Member Johnson asked him why he felt Cottage Grove was the right community for development; he responded there were many factors, one was the land availability, and the other is the market demand, as there's a waiting list for the Newport development. The Langdon Village area needs development; they're excited to be the first ones in that area as the need for housing is so high. Council Member Johnson stated income needed to be proven to get in, but he asked if residents had to prove their income every year; he was advised that was not the case. Council Member Thiede asked if there's the ability to put their development anywhere in the Langdon area, if that was still the best place for it, as it's a taller building. He asked if there were some alternative designs available. Mayor Bailey felt there was a need for this type of housing in Cottage Grove. He'd like to see a master plan of this area, with the area along Highway 61 left for commercial opportunities, with heavy doses of housing more towards the back. He asked about the connectivity from the south and where that fit into this picture, as the increased traffic would create some issues with traffic flow. Mayor Bailey stated he was not convinced that the proposed location was the spot for their development. Council Member Johnson stated we have seven new businesses and about 20,000 more residents moving into Cottage Grove. Council Member Mills confirmed this proposal is just over a mile from where the BRT would be. She felt the development should also be close to other amenities and wondered if it's feasible to do a pedestrian bike bridge, similar to Newport's, to bring that connectivity for the residents. Director Costello stated this area was close to the Business Park, with many jobs available there. Council Member Johnson stated he liked the overpass idea also, as we have to bring that side of the highway to the other side for better access without needing to have a vehicle. Director Costello stated with the road connecting to Innovation Road, we need to have a conversation with 3M, as retailers have indicated until there's that connection they're not interested in West Point Douglas Road as much as East Point Douglas Road. So, they City Council Meeting Minutes March 21, 2018 Page 15 need to look at that as part of the master plan. Housing could bring in commercial businesses, so they're on that cusp. Chris stated this was good feedback, and this site was under contract until November. Council Member Johnson asked what size this development was compared to some of the others he had shown them; Chris stated this will be the biggest one they've ever developed, but they're currently developing some that are over 350 units. Council Member Johnson asked if all residents would have underground parking; he was advised 24 units would not have underground parking. Council Member Johnson asked if there was any way to tell how many people who'd moved into Newport were bus riders; Chris said they could do a survey. Chris stated it was mostly younger families and retirees who were moving into their developments. The Met Council requires affordable housing units in every community to meet the region's demands; that needs to be reported every time a Comprehensive Plan update is done. Increased retail business will occur with this development; they're expecting anywhere between $870,000 and $1,700,000 in annual commercial demand will be added to the market. With the extension of the road, that would be another catalyst for future development. He reviewed their estimated schedule: In August, 2018, land use and TIF approvals will be completed. In November, 2018, Minnesota Housing and Met Council will award their annual RFP selections. April, 2019, would be the earliest construction would start. Grand opening will be after 15 months of construction, so possibly July, 2020. Director Roland stated TIF would be similar to The Legends, another TIF project. In housing projects like this and The Legends, up to 25% of the funds that are generated by the TIF project are usable in the overall TIF area. So, that would be part of what would help pay for the road improvements in that area. Chris stated they'd still pay the current taxes that are paid by the Majestic. Mayor Bailey asked what the timeframe would be; Director Levitt stated they could probably have a master plan in front of Council in the first meeting in May. Chris stated all they need for the application to Minnesota Housing was site control, which they already have, and a letter of support by June, so they can accommodate the schedule. Director Levitt stated they'd talked about possibly relocating the four-story structure; she asked if there were any other concerns. Council Member Thiede stated some renderings of how things might fit and what's feasible regarding location of the structure. Council Member Thiede stated just getting the road through to Innovation Road would be important. Council Member Johnson stated it should look like the area was planned, so the master plan would be nice to have. City Council Meeting Minutes March 21, 2018 Page 16 Mayor Bailey asked if they really thought they could get that done in a month; Director Levitt stated that they'd try. She advised that Stantec was working on our Comprehensive Plan so they're already working on the land use and zoning components. Director Levitt stated regarding utilities, for sanitary sewer issues, we might have additional land acquisition or easement that we'd need to acquire. So, there are a few challenges with that. One of the infrastructure challenges is timing; the road is very narrow, and the fact that we have to excavate all the way back to Acorn Mini Storage with the depth of the actual sanitary sewer and pulling it up all the way past Public Works, that's why the feasibility report was authorized to look at those costs. If any project occurs in 2019, it's probably beneficial to get the actual roadwork done. The amount of construction vehicles, materials, etc. coming to the site, they can't simultaneously exist during road construction with the utilities. As part of the feasibility, we can also look at additional utility extension possibilities. Mayor Bailey stated he'd be interested to see how it blends; since it's along Highway 61, they wanted it to be a step up, and it looks like that can be provided. He felt the Red Rock Square project in Newport looked too plain for what he's looking for in Cottage Grove. Chris stated that's how they were directed to make it look with their master plan. Mayor Bailey with it looking nice, that would set a tone for how the Langdon Village area would be developed. Council Member Dennis stated Highway 61 is our corridor and felt we needed to be mindful of the structures we build. He agreed with having a master plan to see how this could fit in; it would be wonderful if staff could pull that together in a short period of time with all of the other projects taking place. Council Member Johnson asked if West Point Douglas Road was a County or a City road; Director Levitt stated it was a City road and the County will dedicate it back to the City because we've been plowing and maintaining it for so many years. Right now, though, some of it is in the DOT right-of-way. Council Member Johnson asked why that road was in such poor condition; Mayor Bailey stated there was previously no development going on there to pay for that. Chris asked if the intent of the Langdon Village was to have more of an urban type area with flat roofs, etc. Mayor Bailey stated that yes, the design that they saw on the schematic was what they'd like. Chris stated that would give them a good sense of direction; they'd reconfigure it to see what might work and would continue to work with staff. 14. WORKSHOPS — CLOSED TO PUBLIC — None. 15. ADJOURNMENT City Council Meeting Minutes March 21, 2018 Page 17 Motion by Council Member Dennis, second by Council Member Thiede, to adjourn the meeting at 9:26 p.m. Motion carried: 5-0. Minutes prepared by Judy Graf and reviewed by Joe Fischbach, HR Manager/City Clerk.