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HomeMy WebLinkAbout2012/04/16 - ADMIN - Minutes - City Council - Regular Ifffit. Louis Park OFFICIAL MINUTES M I N N E S O T A CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA APRIL 16,2012 1. Call to Order Mayor Pro Tern Sanger called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Pro Tern Susan Sanger, Steve Hallfin, Anne Mavity, Julia Ross, Sue Santa, and Jake Spano. Councilmembers absent: Mayor Jeff Jacobs. Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), Director of Public Works (Mr. Rardin), Director of Parks & Recreation (Ms. Walsh), Environmental Coordinator (Mr. Vaughan), Housing Programs Coordinator (Ms. Larsen), Housing Supervisor (Ms. Schmtker), Planning/Zoning Supervisor (Ms. McMonigal), Senior Planner (Mr. Walther), Planner (Mr. Fulton), Communications Coordinator (Mr. Zwilling), and Recording Secretary (Ms. Hughes) la. Pledge of Allegiance lb. Roll Call 2. Presentations 2a. Retirement Recognition for Craig Panning, Parks and Recreation Manager of Buildings and Structures Mayor Pro Tern Sanger recited the resolution recognizing the contributions of Craig Panning and presented a plaque to Mr. Panning for 37 years of service to the City. Mr. Harmening stated that Mr. Panning has been an outstanding employee and a wonderful steward of the City's Rec Center. He congratulated Mr. Panning on his retirement and expressed the City's thanks for his years of service. 2b. Caring Youth Day Proclamation Mayor Pro Tern Sanger recited the Caring Youth Day proclamation and presented the proclamation to Mr. Bob Ramsey. 2c. Recognition of Donation from Cargill and the St. Louis Park Lions Club for Tree Planting Mr. Vaughan stated the Reforest St. Louis Park program is a partnership with the Tree Trust with a goal to reforest St. Louis Park in the advent of invasive species. He stated that Cargill has donated $6,000 to the Tree Trust and St. Louis Park Lions Club has donated $250 to the Tree Trust, which will be used to plant 80 trees in Oak Hill and Wolfe Parks. He expressed the City's thanks to Cargill and St. Louis Park Lions Club for their generous donations. City Council Meeting -2- Apnl 16, 2012 Mayor Pro Tern Sanger expressed the City Council's thanks to Cargill and St. Louis Park Lions Club for helping with the City's reforest efforts. 3. Approval of Minutes 3a. Study Session Meeting Minutes March 26,2012 Mayor Pro Tern Sanger requested that a sentence be added to the fifth full paragraph on page 5 that states "She stated the City failed to inform drivers that they had to stop when a trail user was already in the roadway." She also requested that the first sentence of the seventh full paragraph on page 5 be revised to state "Mayor Pro Tem Sanger fere did not think it would address the problem of drivers not stopping for trail users and urged the City to further educate drivers and trail users." The minutes were approved as amended. 3b. City Council Meeting Minutes April 2,2012 Mayor Pro Tern Sanger requested that a sentence be added to the fourth full paragraph on page 4 that states "She stated she would not have originally voted to support this project if she had known it was going to be changed in this manner and would support the proposed project reluctantly because the project has been half done for such a long time." The minutes were approved as amended. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Adopt Resolution No. 12-061 to recognize Parks and Recreation Manager of Buildings and Structures Craig Panning for his 37 years of service to the City of St. Louis Park. 4b. Approve the 2012 Neighborhood Grants. 4c. Appoint the following commissioners to serve on the Task Force for the St. Louis Park Outstanding Citizen Award Program for a term to expire based on their respective commission term or a three year maximum, whichever is reached first: 1. Marjorie Douville, Fire Civil Service Commission 2. James Gainsley, Board of Zoning Appeals 3. Justin Kaufman, Housing Authority. 4d. Approve for Filing Vendor Claims. 4e. Approve for filing Housing Authority Minutes March 14, 2012. Councilmember Hallfin requested that Consent Calendar item 4b be removed and placed on the regular agenda. It was moved by Councilmember Ross, seconded by Councilmember Santa, to approve the Agenda and items listed on the Consent Calendar as amended to move Consent City Council Meeting -3- April 16, 2012 Calendar item 4b to the regular agenda as item 8c; and to waive reading of all resolutions and ordinances. The motion passed 6-0 (Mayor Jacobs absent). 5. Boards and Commissions—None 6. Public Hearings 6a. Westwood Villa Condominium Association's Housing Improvement Area (HIA) Ms. Larsen presented the staff report and explained that Westwood Villa Condominium Association petitioned the City to establish an HIA for site improvements financed with a loan from the City. She stated that Council received a written report regarding the proposal on April 9, 2012, and requested additional information related to the need for improvements and the associated cost. She advised the Association has been working for several years on how to pay for the improvements and the loan is intended to pay for required elevator updates, replacement of the roof and mansard siding, and replacement of the heating and cooling system. She indicated the estimated cost of improvements represents a conservatively high estimate and the average cost per unit is $33,000 which, financed on a 20 year term, would equal $2,900 annually or $242 monthly. She noted when the actual construction bids come in, the project consultant expects to reduce the contingency costs for a savings of approximately $150,000 or an average $2,000 per unit. She stated Council also requested further information regarding the payment impact and stated the Association has limited options for financing the improvements and the Board believes a large special assessment would put the Association at greater financial risk than the more affordable HIA fee. She noted the City provides hardship deferrals and some owners have indicated they will apply for this deferral. She stated Council also expressed some concern regarding trust issues with the property management firm and explained the Board contracted with a new management firm, Multiventures Properties Inc. as of April 1, 2012, and also used a reserve adviser and AMBE Ltd. to prepare a scope of work and oversee the construction. She indicated that firewalls to reduce the City's financial risk are included in the staff report and added when units are sold the HIA fees are treated the same as a special assessment. Councilmember Ross asked if interest is built into the HIA fee. Ms. Larsen replied that interest has not been calculated into the estimated $33,000 HIA fee and the interest rate is estimated to be 5.5%. Mayor Pro Tern Sanger opened the public hearing. Ms. Michelle Arulfo, 2200 Nevada Avenue South, #310, appeared before the City Council and stated she is the Vice President of the Westwood Villa Board. She explained the Board started this process in 2009 and has determined that the HIA is the best option. She introduced Board members Susanna Presseller, JoAnn Schutz, Barb Skrivanek and Rick Grabovsky from AMBE Ltd. She stated that if there was any way to do the improvements one at a time, they would not need this loan. She explained that the flat roof is at a point where they have catastrophic problems including leaks. She indicated City Council Meeting -4- April 16, 2012 the flat roof is attached to the mansard and was not attached properly, resulting in water getting between them and there are animals living in the mansard roof. She stated the deck system's base beams are rotted and structural engineers have indicated the decks are structurally unsafe. She stated the chiller system is 40 years old and requires mold removal. She stated they have received correction notices regarding the bathroom vents because approximately two-thirds of the vents are not working and the building does not have proper ventilation. She indicated it is important for all the contractors to work together and to make sure the improvements are done correctly the first time. She noted the elevator does not meet State Code and is a first priority for repair. She acknowledged that the improvements are expensive and some homeowners will have difficulty paying an extra $250 per month; however, if they do not get the HIA loan, they will be required to do a special assessment, which will result in a higher monthly cost. She then presented several photographs of the building. Councilmember Ross asked how much property owners pay for homeowner's association fees. Ms. Arulfo replied the average homeowner's association fee is $320 per month. Ms. JoAnn Schutz, 2200 Nevada Avenue South, #113, appeared before the City Council and expressed support for the HIA. She stated they need to have this loan and thanked the City Council for the opportunity to make this loan available to them and added without the HIA loan, it would be a much greater hardship for their residents. Ms. Cindy Anderson, 2200 Nevada Avenue South, #311, appeared before the City Council and stated she had water leaking through her patio door over the weekend and was concerned that it will happen again. She expressed concern about the condition of the roof and the building's air conditioning. She expressed support for the loan and added it will be a hardship for her but is willing to get a part time job to cover the loan. Mr. Thad Radel, 2200 Nevada Avenue South, #114, appeared before the City Council and expressed support for the loan. He felt the HIA loan was the most affordable way to get the repairs done. He thanked Ms. Larsen for her help in answering all their questions and looks forward to working with her and the rest of City staff. Ms. Susanna Presseller, 2200 Nevada Avenue South, #121, appeared before the City Council and thanked Council for considering the HIA loan. She expressed support for the loan and recognized that it will be a hardship but without the improvements, the building will continue to significantly deteriorate and their property values will plummet. Ms. Gretchen Mellieus, 2200 Nevada Avenue South, #110, appeared before the City Council and stated she was against the loan. She stated she appreciated all the work done by the Board. She stated she cannot explain the hardship the increased monthly fee will put on owners on top of the high homeowner's association fees. She indicated that a 20 year assessment will make it impossible to sell and she stated she has been trying to sell for five years. She stated this will extend her ownership unless she is forced into foreclosure. She recommended that the Board take more time to prioritize the list of projects. She felt that a special assessment might be easier to manage because it is a short term fee rather than the 20 year assessment being proposed. City Council Meeting -5- April 16, 2012 Mr. Alexander Nemets, representative of Vladlen Nemets, 2200 Nevada Avenue South, #218, appeared before the City Council and stated they oppose the loan. He agreed that the improvements were necessary but an additional $250 per month for his parents would be terrible. He asked for further consideration of the improvements to see if it was possible to decrease the price of repairs. Mr. Demetri Stulman appeared before the City Council and stated he owns two units and expressed support for the HIA loan. He indicated this process has been ongoing for three years and the cost is only going to get more expensive if they consistently put off addressing the problems. He felt if they let it go any further, there will be no worth to the building. He stated he had faith that the properties will be worth what they were before if these improvements are made and the improvements cannot be delayed any further. Ms. Harriet Halverson, 2200 Nevada Avenue South, #202, appeared before the City Council and stated she has lived there for 36 years and has slowly watched the project go to ruin. She stated she was willing to make her contribution so they can go back to where they used to be and be proud of their address. Ms. Millie Osman, 2200 Nevada Avenue South, appeared before the City Council and stated she was against the HIA loan. She felt that this process has been handled terribly and residents have had no input. She stated they have had two meetings with 30 minutes allowed for questions at each meeting and the rest of the meeting was private. She indicated they have no idea what the improvements will look like or what kind of materials will be used. She stated the Board voted yes for the caretaker unit and said it would have been nice if homeowners had been informed of this. She said the ratio of the cost of work to the buildings value is too high. Mayor Pro Tern Sanger closed the public hearing. Councilmember Ross stated she lives at Greensboro and they are going through the HIA process now. She stated it was important to keep the City's housing stock maintained. She stated there are always costs associated with maintaining your home but was reluctant to approve this because it represents a large amount of money for 66 homeowners to absorb. She acknowledged the improvements are needed but still had some questions regarding the project and was not comfortable with moving forward. She stated she would like to see a lower dollar amount for the improvements. She requested further information regarding the bidding process as well as the Board's input from homeowners. She stated she would also like to hear more about the potential risks to the City in terms of repayment for those residents electing the hardship deferral and for those in foreclosure. She also requested information regarding the final vote of homeowners. She indicated she does not want to be quick to vote on this and would like to defer action until May 7 to allow time to talk to the homeowners and City staff. It was moved by Councilmember Ross to table action on First Reading of Ordinance Establishing the Westwood Villa Association Inc. Housing Improvement Area Pursuant to Minnesota Statutes, Sections 428A.11 to 428A.21 and to set the Second Reading for May 7, 2012. The motion failed for lack of a second. City Council Meeting -6- April 16, 2012 Mayor Pro Tern Sanger stated that the questions raised by Councilmember Ross could be addressed tonight. Ms. Larsen explained the HIA vote is taken by owners signing petitions, and that 38 residents signed petitions in support of the HIA, or 58% approval for the HIA. She noted the association-owned unit was not included in the final count of 38. Ms. Larsen stated that the city does provide a hardship deferral for low-income seniors and disabled person. The city provided a questionnaire asking residents if they were considering applying for the hardship deferral or whether residents would be paying for the HIA up front. Five owners indicated they would be eligible for the hardship deferral. When the deferred unit is sold, the owner pays their fee with interest. She noted that the HIA loan is 105% of the project costs, which covers delinquent and deferred fees. She stated that the City's risk is low, and the City has not previously had an HIA where the City did not receive payment. Mayor Pro Tern Sanger reopened the public hearing. Mr. Richard Grabovsky, AMBE Ltd., 7201 Ohms Lane, Edina, appeared before the City Council and stated they were hired two years ago to perform an assessment of the building and prepare a report to the previous management and board, which identified the major problems. He stated that specs were prepared and sent out for bid, with five contractors bidding on the project. He explained the ongoing repairs to the roof and stated the roof is well past its life expectancy and needs to be replaced. He added that residents living on the third floor run a high risk of having moisture infiltration. He stated the new roof comes with a 15 year total system warranty and a five year contractor warranty. He indicated the cost for putting in new deck posts was competitively bid by five contractors with an approximate $100,000 span between the bids. He did not feel there was anything that could be done to lower the cost particularly since public safety is cntical and codes must be met. He stated the mansard cannot be scraped down and painted and they intend to save as many of the structural members as possible and install new material with a longer life and less upkeep. He noted the bids were done two years ago and they are working to keep prices in line, but a lot of materials going into the building are oil based which adds to the cost. He stated they are specifying good quality material to keep the building watertight and safe and the Board is very concerned about the numbers. Councilmember Spano asked what would happen if this loan is not approved. Ms. Larsen stated that from the City's perspective, the Inspections Department has written correction notices for the venting system, which must be brought up to Code. She indicated the Association would have to find another way to finance the improvements, which could require a special assessment at a much larger amount and shorter term. Councilmember Spano asked what mechanisms are in place to ensure maintenance is not deferred in the future. Ms. Arulfo replied that the reserve study done in 2008 will be redone if the HIA loan is approved and a plan will be implemented for the next 20 years with homeowner's association dues reflecting that change. City Council Meeting -7- April 16, 2012 Ms. Larsen noted that the Development Agreement will require the Association to update its reserve study and ensure that future dues are adequate to maintain reserves and fund future maintenance. Councilmember Ross stated she was uncomfortable with the project costs and was concerned that some residents feel the process has not been as transparent as it should be. She indicated that since this is the first reading, Council will have time before the second reading to address resident concerns and have further conversations with residents, the Board, and the Board's consultant. It was moved by Councilmember Ross, seconded by Councilmember Mavity, to adopt First Reading of Ordinance Establishing the Westwood Villa Association Inc. Housing Improvement Area Pursuant to Minnesota Statutes, Sections 428A.11 to 428A.21 and to set the Second Reading for May 7, 2012. Ms. Arulfo stated the Board recognizes the high cost for 66 homeowners and the Board is committed to lowering the cost as much as possible. She indicated they will reduce the contingency to 20% and as bids come back, the Board would like to lower the contingency to 15%if possible. Councilmember Ross encouraged the Board to seek local bids if possible because buying local can result in cheaper costs. Ms. Arulfo stated the Board held four information sessions with residents. She added the Board also holds quarterly meetings where the Board has shared information and held forums at each for a total of 12 forums. She advised they cannot select materials until the bids come back and they will be forming committees to get homeowner involvement in these decisions. Ms. Mellieus stated the process has been confusing and indicated a letter sent by the Association to homeowners with the petition and survey was unclear. The survey asked if owners intended to pay off the amount early or if they qualified for the hardship deferral. She stated it was not clear in the petition language that if a resident returned the petition in any way, shape, or form that you were voting for it. She asked the City to amend its petition voting process to make it much clearer so residents know what they are signing and to require residents to clearly state "yes" or "no" to the loan. She added it appeared that the letter was taking a random survey on whether residents would elect deferral or pay off the loan early. Ms. Larsen agreed that the process can be confusing and stated that the City is required to follow State law. She indicated that the EDA Attorney prepares the petitions to meet statutory requirements. Councilmember Ross urged the City to work with counsel on revising the petition process to add language making it clear that residents are voting either yes or no to the proposed HIA. Ms. Larsen noted that the City conveys to residents, in writing and verbally, that signing the petition is considered a yes vote and not signing is a no vote. Regarding the confusion of the Association's letter and city petition and questionnaire, she added that City Council Meeting -8- April 16, 2012 staff contacted residents where there were questions or if staff felt residents were confused about what they were signing. She noted that there is a 45-day veto period following adoption of the ordinance. Ms. Barbara Skrivanek, 2200 Nevada Avenue South, #207, appeared before the City Council and stated that many of the improvements have to be done soon and they need the HIA loan because they need the money up front. She stated a special assessment will require residents to come up with a large sum of money in a few months and the impact of this would be much greater than the proposed $250 per month for the HIA. Mayor Pro Tern Sanger reclosed the public hearing. Councilmember Mavity stated she understood the gravity of this situation and appreciated the burden this will place on many residents. She indicated St. Louis Park prides itself on having quality housing and felt these improvements must be done and the HIA represents the least painful way of completing the improvements. Mayor Pro Tem Sanger stated she would reluctantly support this not because of need, which has been laid out clearly, but because of the amount that residents are being asked to pay and the burden to residents. She also expressed concern that the amount of the loan is a high percentage of the overall value of the entire property. She requested that Council have a future study session discussion about HIA parameters of projects going forward and whether there should be limitations or caps on the program. The motion passed 6-0(Mayor Jacobs absent). 7. Requests, Petitions, and Communications from the Public—None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Ellipse II on Excelsior (e2) Major Amendment Resolution No. 12-062 Mr. Walther presented the staff report and stated the proposed changes to the 58-unit apartment development include adding a total of three bedrooms for a total of 65 bedrooms, increasing the 5th level floor area, moving and expanding the rooftop patio area, increasing the green space, adding one tandem parking stall, and adding landscaping. He stated the reduced building footprint allows additional green space with a reduced Ground Floor Area Ratio of 0.29. He explained the roof plan encloses the previous patio location and moves and expands the rooftop patio increasing DORA to 12.8%. He stated the landscape plan has been increased to provide 54 trees, 232 shrubs, and 539 perennials. He advised that 109 parking stalls are provided including 22 stalls designated for commercial use. He indicated that by filling in the northwest corner, the building's height and shadow cast onto the neighboring apartment has increased. He explained the Ordinance requirements and stated in this case, the previous development had zero days over the daily limit in a year and the maximum allowed is 60 days. He stated the proposed development would have 34 days where there is a shadow that exceeds the daily limit, but it would still meet the yearly limit. He added that a neighborhood meeting was held and four people attended with no major concerns expressed at that meeting. City Council Meeting -9- April 16, 2012 It was moved by Councilmember Mavity, seconded by Councilmember Hallfin, to adopt Resolution No. 12-062 Amending and Restating Resolution No. 12-008 and Approving a Major Amendment to the Final Planned Unit Development at 3924 Excelsior Boulevard for Ellipse II on Excelsior("e2"). The motion passed 6-0 (Mayor Jacobs absent). 8b. Business Park Zoning District Mr. Fulton presented the staff report and explained the intent of this zoning district is to adhere to the Comprehensive Plan. He stated this district increases the number of jobs per acre, maintains the business/employment character of the Business Park areas, and allows for redevelopment in accordance with current market trends for office and related business activities. He stated one of the goals of the Ordinance is to be efficient with land use and encourage integration between land uses in the area, and advised that two major areas guided in the Comprehensive Plan for Business Parks include the Belthne Boulevard area and Highway 7 and Louisiana. He stated staff will begin the process of rezoning these areas to be in conformity with the Comprehensive Plan following the second reading. He stated the Ordinance allows three new uses including research and development, light assembly, and low impact manufacturing and processing and these uses would be allowed with a CUP. Councilmember Spano asked if the City is targeting the types of businesses represented by the new land use categories. Mr. Fulton explained that these types of uses more accurately reflect where the market is going and staff has been working with the Economic Development staff on ordinance development to insure it incorporates appropriate uses and market trends. Councilmember Spano stated that the two areas planned for rezoning are slated for light rail stations and asked how much of the drafting of the Comprehensive Plan included involvement by Met Council and the light rail planning groups. Ms. McMonigal advised the Met Council reviews the Comprehensive Plan for content and the Met Council is not as concerned with local land uses. She stated the Business Park Zoning District represents a mixed use development area, meeting the market trend that is moving away from strictly industrial to more industrial/office with some ancillary service and retail uses allowed. She noted that additional overlays may be applied in some LRT station areas and the City will likely make additional changes in zoning to accommodate transit oriented development. Mr. Fulton stated that staff has kept the potential for light rail in the forefront and the Ordinance was written with the expectation that this Zoning District could be applied throughout the City and not just in the areas around the light rail stations. Councilmember Mavity asked what kind of buffering is in place for these types of uses adjacent to single family housing areas and referenced the Oak Hill neighborhood. Mr. Fulton stated it was important to remember these areas were previously guided for industrial use. He indicated the Business Park Zoning District has been tailored to City Council Meeting -10- April 16, 2012 provide greater restrictions for setbacks and other performance standards to protect the adjacent single family residential area. Councilmember Santa asked if the shadow study requirements also apply in the Business Park Zoning District. Mr. Fulton replied in the affirmative. It was moved by Councilmember Ross, seconded by Councilmember Mavity, to Adopt First Reading of Ordinance Amending the St. Louis Park Ordinance Code Relating to Zoning by Adopting Sections 36-231 through 36-233 Relating to the Business Park District and to set the Second Reading for May 7, 2012. Mayor Pro Tern Sanger requested that the definition of research and development in Section 36-142(e) include a statement that this use does not result in noxious or offensive odors, sounds, vibrations, emissions, smoke or external nuisances upon adjacent properties. She felt it was essential to have this statement in the definition to prevent any external adverse impact on the neighbors. She also requested that staff consider adding language that requires sidewalks in these areas. Councilmember Ross agreed with the friendly amendment. Councilmember Mavity seconded the friendly amendment. The motion passed 6-0 (Mayor Jacobs absent). 8c. Approve the 2012 Neighborhood Grants Councilmember Hallfin stated he requested removal of this item from the Consent Calendar in order to point out to residents the importance of grants that the City provides to the neighborhood associations. He encouraged neighborhoods that are not currently organized to contact Marney Olson who can help organize the neighborhoods and assist with grant applications. It was moved by Councilmember Hallfin, seconded by Councilmember Santa, to approve the 2012 Neighborhood Grants. The motion passed 6-0 (Mayor Jacobs absent) 9. Communications Councilmember Spano reminded residents that tomorrow is the deadline for filing taxes. Mayor Pro Tem Sanger stated the home remodeling tour is Sunday, May 6th, and further information is available on the City's website. Councilmember Hallfin stated that a benefit will be held for Officer Pollitz's family on Saturday, April 28th, at Toby Keith's. 10. Adjournment The meeting ad'o ed at 9:28 p.m. Nancy Stroth, ity Clerk Susan Sange , Mayor Pro Tern