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HomeMy WebLinkAbout1995/04/17 - ADMIN - Minutes - City Council - Regular MINUTES iI I CITY COUNCIL MEETING II� 1; ST. LOUIS PARK,MINNESOTA I I ,' April 17, 1995 1. Call to order Mayor Hanks called the meeting to order at 7:30 p.m. 2. Presentations Mayor Hanks read a proclamation for Environmental Health Week. 3. Roll call The following members were present at roll call: Jeff Jacobs, Allen Friedman, Ron Latz, Robert Young, Gail Dorfman and Lyle Hanks. Also present were the City Manager(Mr. Meyer); Deputy City Attorney(Ms. Pace), Director of Community Development (Mr. Harmening), Director of Public Works(Mr. Rardin); Asst. to the City Manager(Mr.Larson), Dir. of Parks and Recreation(Mr. Gears);Dir. of Finance(Ms. McBride); Personnel Officer(Mr. Wysopal); Dir. of Inspections(Mr. Petersen) and Supt. of Engineering(Mr. Moore). 4. Approval of minutes It was moved by Councilmember Jacobs, seconded by Councilmember Dorfman, to approve. the minutes of the April 3 Council meeting The motion passed 5-0-1 (Councilmember Latz abstained). It was moved by Councilmember Jacobs, seconded by Councilmember Dorfman, to approve the study session minutes of April 10, 1995. The motion passed 6-0. 5 Approval of agenda It was moved by Councilmember Jacobs, seconded by Councilmember Friedman, to approve the consent agenda for April 17, 1995. The motion passed 6-0. It was moved by Councilmember Jacobs, seconded by Councilmember Friedman, to approve the agenda for April 17, 1995. The motion passed 6-0. PUBLIC HEARINGS 6a. Request of Paragon to transfer control of the Cable TV system to Time Warner Inc. 64 City Council meeting minutes April 17, 1995 Councilmember Dorfman had a couple of questions: Has a waiver from the FCC been received in light of the fact that Time Warner intends to acquire Paragon in less than the required 36 months. Mark Hammerstrom, Paragon Cable, said this transaction was exempt from the 3-year holding period under two exceptions applicable: (1) KBLCVOM will continue to operate the business entirely; and (2) this is a tax-free transaction. Councilmember Dorfman asked who would pay for attorney Grogan's fees(he is evaluating the transaction). Mr. Larson said this was currently being evaluated by Paragon and Time Warner, but that the City has requested full reimbursement from them.. It was moved by Councilmember Jacobs, seconded by Councilmember Dorfman, to continue the hearing to May 15, 1995. The motion passed 6-0 6b. Amendment to a continued special permit to permit the addition of a physical therapy room at Park Nursing Home. 4415 36 1/2 St. Resolution 95-51 There being no one wishing to speak, the Mayor closed the hearing with the right of Council to thereafter reopen and continue it at a future date. It was moved by Councilmember Jacobs, seconded by Councilmember Dorfman, to adopt Resolution 95-51 entitled"Resolution rescinding Resolution 7397 adopted on June 6, 1983 amending a continued special permit under Section 14:8-6.4 of the St Louis Park Ordinance Code relating to zoning to allow the addition of a physical therapy room for property zoned R-4 Multriple Family Residence District located at 4415 W. 36 1/2 St." The motion passed 6-0. PETITIONS, REQUESTS, COMMUNICATIONS 7a. Request of G& P Properties for time extension of variance It was moved by Councilmember Jacobs, seconded by Councilmember Dorfman to extend the time extension of the variance appeals at 3601, 3633 and 3663 Park Center Blvd. The motion passed 6-0. RESOLUTIONS AND ORDINANCES 65 City Council Minutes, May 15, 1995 6e. Application of Honeywell, Inc., for comprehensive elan amendment changing land-use designation from IL Light Industrial to C Commercial at 1625 Zarthan Avenue. Tom Harmening, Community Development Director, summarized the Honeywell/Ryan request as well as the City processes involved in the future land-use characteristics for the property. The developer is proposing a commercial use of approximately 390,000 square feet of retail which, if approved, will also require a zoning change. He presented and explained the various staff studies, consultant studies, traffic studies presented for Council review, including the Planning Commission deliberations and recommended denial of the comprehensive plan change. In conclusion, Mr. Harmening noted the staff report before the Council outlined several alternative actions in addition to the Planning Commission recommendation. These alternatives include various forms of approval of the land-use change, whether for the entire site or a portion; it also includes various forms of denial of the developer's application. He said the Council could consider denying the request and directing staff to return with a proposal for a land-use analysis of the entire area. The study could include a market analysis and financial-feasibility component. III William McHale, representing Ryan Construction, stated their proposal is a 400,000 square foot community shopping center. He believed most of the many issues raised over the past year have been answered including the economic vitality of the proposal. He said the City hired Economic Research Corp. and its partner, Cimaros, whose findings were that the project and economic viability increased the tax base, generated jobs, had site compatibility. The findings also indicated a distinct economic superiority to the proposed over the existing land use. Mr. McHale further noted the various trraffic studies indicated the project will complement the existing traffic situation, maintain the level of services and is superior to all other uses other than the existing industrial. He said BRAA, Strgar-Roscoe, Barton-Ashmann, and Westwood Engineering agree with that conclusion. If there is an unresolved issue, he continued, it is probably the appropriateness of the land use, so Honeywell hired BRW, land planner for Centennial Lakes and Edinborough to study the proposal. He said BRW will testify that Ryan is the appropriate user of this multi-use district, the comprehensive plan and the traffic plan also work. In BRW's estimation, a mixed use project such as Centennial Lakes or Edinborough on the site would require massive subsidies which are problematic because of existing high assessed value and the changes in the TIF laws since the Edina project was completed. Bill Weber, professional planner and resident presented his analysis of the Ryan proposal. , Greg Mattson, project architect for Ryan Construction, presented slides of typical berming, screening, paths, walks, lighting, etc. He concluded by stating that Honeywell/Ryan have been working in good faith with the City for over a year, and are the only real project to come forward. They will increase the tax base, add jobs, and not negatively impact the existing traffic patterns or levels of service in the area. The following persons spoke in detailed lengthy opposition to the project: Carson Brooks, 2230 Ridge Drive, representing the 240-unit Sunset Ridge Neighborhood Assn.; Jeff Spielman, 2120 Ridge Drive; Karin Schoeberl, 2010 Ridge Drive; Lauren Dillard, 2040 Ridge Drive; Ed Wintheiser, 6114 Cedar Lake Road; Ben Steinberg, 5801 Cedar Lake Road; Brian Rule, Sunset Ridge Condos; Diane Markin, 1616 Alabama Avenue; Gary Berschied, 1604 Blackstone Avenue; Frank Freedman, 1530 Pennsylvania Avenue; Karen Noby, 1619 Alabama Avenue; Kris Russ, 1626 Zarthan Avenue. Tim Keane, Larkin, Hoffman, 7900 Xerxes Avenue , representing Honeywell, reiterated past comments supporting the proposal including increase in tax base, the commercial goal statement of the comprehensive plan, superior traffic access. Following further discussion, the Mayor closed the hearing with the right of the Council to thereafter reopen and continue it at a future date. Councilmember Haun asked if Honeywell had offers other than Ryan's for the property. Bill Bowen, 40 Park Lane, Minneapolis, responded for Honeywell; that CB Commercial solicited offers and received six or seven for commercial. Ryan's was not the highest bid, but was selected based on its quality and ability to work with councils and neighborhoods. Responding to Councilman Haun, Mr. McHale advised that Ryan has exchanged letters of interest with Super Valu and Cub Foods but does not have signed documents binding to the site. Councilmember Dorfman spoke to the long process leading to the hearing and that there has been some pressure on Council to make a speedy decision which may not be in the best interest of the community. She said the Council and staff have focused on what's best for Honeywell, being fair to Ryan, what the market will bear, and are big-box being overbuilt in the metro area. She argued that these are secondary concerns. She cited a newsweek article and discussed TIF financing, Livable Communities Act, and Metropolitan Council grants and loans. She did not believe the property should be industrial, that it probably should be commercial--but perhaps not with the green light for a big box. Councilmember Haun referred to the success of the Park Nicollet project which had been a concern to many in the neighborhoods when first proposed. He discussed the City's tax base. He said if the comprehensive plan remains Industrial for the site, a smoke stack business could be built. He was against using City funds when a private developer wishes to expend dollars. Councilmember Jacobs stated the application presents a difficult decision. He agreed that if the Council does not institute a plan amendment, Honeywell would be free to sell to a developer for industrial, or warehouse. He stressed that you have not seen truck traffic until you have lived next to a warehouse. Responding to a question related to future control of development, the City Attorney explained were the comprehensive plan to be amended to commercial, a subsequent rezoning would be necessary. It was her understanding that commercial would allow the Ryan proposal as a conditional use depending upon the developer's plan There may also be subdivision applications, as well as issuance of State and Federal permits. But, the City, other than the conditional -use process, does not have any controls in the place Responding to Councilmember Jacobs, the City Attorney believed a new comprehensive plan district which may apply to this site and other sites in the City could be developed. She further stated the Council could pass a resolution or motion directing staff to prepare a resolution approving a comprehensive plan amendment that designated the Honeywell site as something other than industrial which gives guidance to staff what that designation should look like; that would require four votes. When the amendment returns, it would take five votes to pass. This provides the opportunity to insure it provides all controls and considerations and consistencies with the plan, its goals and policies about which the neighborhood and Council have expressed concern. It was moved by Councilmember Jacobs, seconded by Councilmember Dorfman, that staff prepare a resolution approving an amendment to the comprehensive plan to change the land-use plan designation for the property at 1625 Zarthan Avenue from light industrial to a designation which describes mixed use/commercial use that is consistent with the goals and policies of the comprehensive plan including the "neighborhood chapter." That the resolution will specifically provide that the approval of the amendment in the comp plan is not an approval or disapproval of the site plan submitted by Ryan Development. Further, that 111 the resolution include direction that any changes to the City's map and comprehensive plan will control and mitigate the impact of a future land use on the neighborhood and surrounding area. Further, that if such resolution cannot be produced by June 5, staff may ask for a deferral on June 5.. Responding to the Mayor, Councilmember Jacobs explained his motion includes discussions with Ryan, Honeywell and the City. That his intent was to insure the industrial designation did not, for lack of five votes or some other reason, remain on the property; and to give the Council more discretion in terms of controlling the size and nature of development. Councilmember Latz discussed the many concerns and issues from employment to alternative uses for the site, as well as the impact of any commercial development on other commercial sites in the City. He cited problems in other shopping malls. He was not convinced what the economic vitality of mixed use would be, and that the City may need to hold this project until the market catches up, and that may mean stage development. But, if there is not enough control to insure the City is not putting local retailers out of business, not to mention the traffic concerns, he was unable to support any subsequent comprehensive plan amendment. Councilmember Dorfman noted the motion is to direct staff to redefine a new mixed-use commercial land designation under the comp plan. She was concerned that the process include the developer and the community—such as the creation of a task force. • Councilmember Jacobs noted his motion was to direct the staff to prepare a resolution approving the amendment to the comprehensive plan, intending to move forward quickly. Certainly he wished to involve all interested parties at some point, but he regards this as a land-use planning issue and when the Council receives the resolution for adoption, it could debate the issue whether or not it wants Ryan involved. The Mayor noted that Ryan has an option on the land. Councilmember Young asked what the actual increased traffic Would be; he wished to shed some accuracy on the numbers bandied about. Sheldon Johnson, Rocine, Anderlicht and Associates, 2335 Hwy 36, St. Paul, stated the average daily traffic generated by the development proposed would be approximately 17,000 vehicles per day. Not all are new trips; approximately 40 percent is traffic already on the roadway system. So, if you multiply 17,0000 by .6, you arrive at 10,000. So, you are talking about 5000 trips into and 5000 out of the development new to the system. He explained these projections are not solely for Cedar Lake Road, but the entire area. Councilmember Haun stated he would support the motion if Ryan were to return June 5 and advise if they remain interested in the project. The City Manager stated that staff may not be able to return with something as definitive as the motion by June 5, but would report by June 5. Councilmember Haun explained his intent was that Ryan be privy to the information that staff is working on, allowing them to be fully aware in two weeks what staff is contemplating in the resolution, even though it is not on paper. Following further discussion, the motion passed 6-0. PETITIONS, REQUESTS AND COMMUNICATIONS There were no petitions, requests or communications. RESOLUTIONS AND ORDINANCES Attachment at request of Tim LARKIN, HOFFMAN, DALY & LINDGREN LTD. Keane, JAME9 P LARKINALAN M ANOERS� ROBERTL HOFFMAN T JACKF DALY OONNAL ROBAGL • D KENNETH LINDGREN ATTORNEYS AT LAW MMMAEL W SCHLEP on eyWe GERALD H FRIEOELL TERREN R E BI ALLAN E MULLIGAN GABA GRAY attorney GARY-PHERJ E JANESC ERICKSON CHRISTOPHER)HARRISTHAL EDWARD!DRISCOLL 1500 NORWEST FINANCIAL CENTER MICHAEL a ROBERTSON GENE N FULLER - BRUCE J DOUGLAS JOHN O FEULLMER 7900 XERXES AVENUE SOUTH WILLIAM a GRIFFITH JR s ROBERTBOYLE JOHN J STEFFENHAGEN FRARKI HARVEY BLOOMINGTON,MINNESOTA 55431-1194 DA"IELW VOSS CHARLES 8 MODELL JOIN R HILL CHRISTOPHER J OIETZEN PETER J COYLE JOHNR BEATTIE TELEPHONE(812)835-3800 MICHAEL SMITH LINDAI FISHER VLIS R BIDE THOMAS P STOLTMAN FAX(812)898-3333 DWIGHT N HOLUBO MICHAEL C JACKMAN ANDREW F PERRIN JOHN E DIEHL ANN M MEYER JON 8 SWIERZEWSKI FREDERICK K.HNUSER IS THOMAS J FLYNN LARRY D MARTIN JAMES P OUINN JANE E BREMER TODD I FREEMAN RENEE L JACKSON PETER K.BECK CHRISTOPHER K.LARDS GERALD L BECK MARCY R KREISMAN JOHN B LUNDOUIBT MARIEL E PIILOLA DAYLE NOLAN' DAMON E SCHRAMM JOHN A.COTTER' STEPHEN J KAMINSKI BEATRICE A.ROTHWEILER RACHAEL A.JAROSH PAUL B PLUNKETT AMEL•A A BULWUN , ALAN L KBDOLV THOMAS F ALEXANDER KATHLEEN M PICOTTE NEWMAN DANIEL T KADLEC MICHAEL B LEBARON SHARNA A.WAHLGREN GREGORY E KORSTAD GARY A.VAN CLEVE' OF COUNSEL DANIEL L BOWLEG TIMOTHY J MCMANUS JOSEPHGlns ANDERSON nLIOTHrJ KERNE GMS 'ALSO ADMITTED IN WISCONSIN May 15, 1995 Mayor Lyle Hanks Members of the City Council City of St. Louis Park 5005 Minnetonka Boulevard St. Louis Park, Minnesota 55416-2290 Re: Honeywell Property -- 1625 Zarthan Avenue I. Ryan Construction Development Proposal Dear Mayor Hanks and Members of the City Council: This letter is offered on behalf of the Ryan Construction Company's application for a Comprehensive Plan Amendment to change the plan designation for the Honeywell property located at 1625 Zarthan A‘enue (the Property) from Light Industrial to Commercial. The exist;rg facility was originally constructed in 1966 as a bulk distribution facility on the 42-acre site. Honeywell has most recently operated the plant as a two-story office, research and light assembly facility. In 1994, the taxes payable on the Property were in excess of$740,000. Honeywell believes that the proposed redevelopment plan of retail/commercial is one that provides significant public benefits that include providing goods and services to the trade area, significant increase in tax base, and a high-quality, high-amenity development with long-term viability--all on a site that is intrinsically well-suited to the proposed use. Honeywell further believes that the accumulated record before the City Council supports reguiding the property from Light Industrial to Commercial for the following reasons. 1. Comprehensive Plan. One might argue that the proposed change in the Comprehensive Plan suggests an intrinsic conflict with the Comprehensive Plan. The City of St. Louis Park Comprehensive Plan adopted in May 1977 designated the Property Diversified Development District(DDD). However, the Comprehensive Plan update adopted in April 1991 redesignated the guiding as Light Industrial land use. Although the Honeywell Property did not receive much II , LARKIN, HOFFMAN, DALY& LINDGREN, LTD. Name Date Page 2 discussion at the time of the 1991 change, anecdotal discussions have confirmed that the change to Light Industrial was to guide consistent with the then present land use. There are goals and policy statements in the 1991 Comprehensive Plan that support the present reguiding request. • Statement: The City's traditionally strong industrial base is becoming outdated and obsolete. Goals: IIA. Encourage a diversified economic base that fosters economic viability. Comprehensive Plan, Chapter 3, Page 3-2. Response: The proposed Ryan shopping center affords retail uses and complements the economic base with uses and sales opportunities that are not generally available in this area or in some cases not available anywhere in the city of St. Louis Park. • Commercial Goals: IIC. Insure that commercial developments have access to transportation facilities which have the capability of serving traffic needs based on facility size and trade area. IID. Maintain the City as a major commercial and business center. Comprehensive Plan, Chapter 5, Page 5-3. Response: The record is replete with references from traffic experts and even the city's own planner that the Property is afforded superior access to transportation facilities. Further,the addition to this use to the city of St. Louis Park economic base will further t1 e city's status as a major commercial and business center. • Commercial Policies: IIIC. Insure that regional commercial and businesses have access to expressways, or freeways. Community commercial and businesses have access to thoroughfares and that neighborhood,commercial and businesses have access to collector streets. IIIE. Actively pursue the elimination of adverse impacts associated with commercial strip development. IIIF. Insist upon a positive image both aesthetically and functionally on public and private property in commercial areas through proper design of landscaping,parking, architecture, street furniture, and signage. Comprehensive Plan, Chapter 5, Page 5-3. Response: As noted above, the access to major thoroughfares is excellent. The contemporary site design and architecture as indicated in presentations to city officials LARKIN, HOFFMAN, DALY& LINDGREN, LTD. Name Date Page 3 confirm that the design avoids adverse impacts associated with other designs that promote commercial strip development. Finally,the green areas, buffer areas, landscaping, and parking presented aesthetically pleasing and functional use through proper design. As indicated in the BRW Report and Economic Research Associates Report, the area defined above is currently lacking a diverse mix of retail commercial uses. The traffic conditions will be monitored in accordance with the I-394 Traffic Ordinance. As indicated in public meetings by the developer, amenities including pedestrian linkages will be included to enhance the circulation and aesthetics of this area. • IV. Plan and Program. Other General Business Areas. The northeast corner of the City, generally bounded by Highway 100, I-394, Cedar Lake Road,and the Soo Line tracks, contains a diverse mix of office, retail and industrial uses. The City should pursue continued development of this area, including the development of under-utilized land. Traffic conditions should be monitored in accordance with the I-394 Overlay Traffic Ordinance. Additional amenities, including pedestrian linkages and transit facilities should also be pursued to enhance the desirability of this area. Comprehensive Plan, Chapter 5,Page 5-5. Response: 2. Appropriateness of Commercial Designation. Honeywell engaged the noted land planning and engineering firm BRW, Inc.,to render a professional opinion as to the most appropriate designation for the Property. The BRW analysis dated May 5, 1995,concluded the following: • Retail business is the only viable activity for this site. BRW Report, Page 2. • Commercial would be consistent with the Comprehensive Plan. Ld. at 2. • Industrial is a hold-over designation from another era. Ld. at 2-3. • Industrial is no longer an appropriate land use designation. Id. at 4. • Commercial is a highly appropriate land use designation. Ld. at 5. • Retail development would help fulfill the Comprehensive Plan's aim of a"mixed-use"district.Ld. at 1. The BRW analysis thoroughly discussed these findings and that report is part of the record in this matter. LARKIN, HOFFMAN, DALY&LINDGREN, LTD. Name Date Page 4 3. Traffic. The Planning Commission suggested that a basis for denial is the finding that the proposed land use would increase traffic levels. Since the facility and site are no longer in use, any change in land use will increase traffic levels. More to the point,however,the Ryan proposal has been the subject of the following traffic studies. Honeywell Site Traffic Study prepared by Strgar-Roscoe-Fausch, Inc. (SRF)and dated January 20, 1995. view of the Honeywell Site Traffic Impact Analysis prepared by Bonestroo, Rosene, Anderlik &Associates, Inc. (Bonestroo) and dated March 20, 1995. Responses to Bonestroo Review of Traffic Study for Honeywell Site prepared by SRF and dated April 5, 1995. Summary of Trafficlmpacts of Proposed CommercialDevelopment on Honeywell Site prepared by SRF and dated April 19, 1995. )3arton-Aschman Review of SRF Traffic Report prepared by Barton-Aschman for MEPC and dated April 18, 1995. Additionally, the City's traffic consultant, Bonestroo,concluded that although the Ryan proposal will result in increased traffic levels,the resulting increases will create no degradation in the levels of service or create the need for an investment in additional transportation infrastructure. CONCLUSION The city of St. Louis Park is bound by state statute to promulgate and peric dically update sts Comprehensive Plan. Minn. Stat. § 462.355 and § 473 et. seq. It is well established that when a city acts in a legislative capacity as it does in the case of comprehensive planning, the acts of the city will be judged. by a standard of reasonableness. Van Landshoot v. the City of Mendota Heights, 336 Nw.2d 503, 508 (Minn. 1983). This standard is variously expressed as: is there a"reasonable basis"for the decision? or is the decision"unreasonable, arbitrary, or capricious?" or is the decision"reasonably debatable?". Han v. City of Coon Rapids, 313 NW.2d 409, 417 (Minn. 1981). The record in this proceeding is one where the evidence in the record and factual basis supports a finding for the reasonableness of the reguiding of this land use from Light Industrial to Commercial. We respectfully request the council approval of the reguiding of the Property from Light Industrial to Commercial for the reasons herein included herein. Should you have questions relating to the foregoing, please contact me at 896-3203. LARKIN, HOFFMAN, DALY& LINDGREN, LTD. Name Date ` Page 5 Sincerely, ��i di IP , Timothy J. ' e..4 e, for LARKIN, HOF • , DALY&LINDGREN, Ltd. cc: William Bowen, Honeywell Bill McHall, Ryan Companies 0097461 01 ,