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
,