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HomeMy WebLinkAbout2015/05/18 - ADMIN - Minutes - City Council - Regular (2) If! St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA MAY 18,2015 1. Call to Order Mayor Jacobs called the meeting to order at 7:33 p.m Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Steve Hallfin, Gregg Lindberg, Anne Mavity, Susan Sanger, and Jake Spano Councilmembers absent None Staff present: City Manager (Mr Harmening), City Attorney (Mr. Scott), Director of Engineering (Ms. Heiser), Director of Operations and Recreation (Ms. Walsh), City Clerk (Ms. Kennedy), Senior Planner (Mr. Walther), Controller (Mr. Swanson), Economic Development Coordinator (Mr Hunt), Associate Planner (Mr. Kelley), Utilities Superintendent (Mr. Hall), Assistant Zoning Administrator (Mr. Morrison), Community Development Intern (Mr. Boyce), and Recording Secretary (Ms. Hughes). la. Pledge of Allegiance lb. Roll Call 2. Presentations 2a. Retirement Recognition for City Attorney Tom Scott Mayor Jacobs presented Mr. Scott with a plaque in recognition of his 19 years of service as the City Attorney and extended the City Council's thanks and best wishes in his retirement. 3. Approval of Minutes 3a. Special Study Session Meeting May 4, 2015 The minutes were approved as presented. 3b. City Council Meeting May 4, 2015 Councilmember Brausen requested the addition of a paragraph at the bottom of page 5 that states "Councilmember Brausen felt that the funds expended on neighborhood associations provided a wonderful return on dollars spent and would like to see the City properly funding the neighborhood associations even if grant monies are not available." The minutes were approved as amended. 3c. Study Session Meeting May 11, 2015 The minutes were approved as presented. 4. Approval of Agenda and Items on Consent Calendar City Council Meeting -2- May 18, 2015 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. Moved to 8f 4b. Approve the second reading and Adopt Ordinance No. 2466-15 Amending Chapter 36 of the Zoning Ordinance Relating to Yards, Parking, and Screening Requirements; and authorize summary publication. 4c. Approve the acquisition of the "13th Lane" and "Texas Avenue" properties currently owned by the Minnesota Department of Transportation (MnDOT) and to sell the properties to Melrose Development, LLC and enter into a purchase agreement with the same. 4d. Adopt Resolution No. 15-066 establishing certain Municipal State Aid Street segments and Resolution No. 15-067 revoking certain Municipal State Aid Street segments. 4e. Adopt Resolution No. 15-068 to recognize Public Service Worker David Vann for his 33 years of service to the City of St. Louis Park. 4f. Approve for filing Environment and Sustainability — Sustainable SLP Meeting Minutes April 7, 2015. 4g. Approve for filing Planning Commission Minutes April 15, 2015. Councilmember Sanger requested that Consent Calendar item 4a be removed and placed on the Regular Agenda It was moved by Councilmember Lindberg, seconded by Councilmember Brausen, to approve the Agenda and items listed on the Consent Calendar as amended to move Consent Calendar item 4a to the Regular Agenda as item 8f and to waive reading of all resolutions and ordinances The motion passed 7-0 5. Boards and Commissions - None 6. Public Hearings 6a. Refunding of Park Nicollet Private Activity Revenue Bonds and Host Approval Resolution No 15-069. Mr. Swanson presented the staff report and explained that Park Nicollet Health Services requested that the HRA of the City of St. Paul issue revenue refunding bonds, Series 2015A and 2015B, as taxable or tax-exempt obligations in the amount of$493.6 million The proceeds will be used to refund several outstanding bond issues and pay for issuance of the bonds He stated the City would continue to receive its fee of 1/8th of 1% of the outstanding principal balance, payable in semi-annual installments. He then introduced Ms. Catherine Lenagh, CFO of Park Nicollet Health Services, and Ms. Julie Eddington, bond counsel with Kennedy Graven. City Council Meeting -3- May 18, 2015 Ms. Eddington explained the City issued bonds for Park Nicollet in the past and because of Park Nicollet's recent merger with HealthPartners, Park Nicollet needed to place their trust indenture documents under one master trust indenture and refinance all of its debt under the HealthPartners umbrella. She stated Park Nicollet will pay the City's administrative fee for the amount of the bonds, both taxable and tax exempt, related to facilities in St. Louis Park and added this issuance will not affect the City's credit rating nor will it impact the City's ability to issue bonds this year. She advised that the administrative fee paid to the City would continue until the current bonds mature on the same amortization schedule as the Series 2008 and 2009 bonds. She noted that because bonds are being issued without debt service reserve funds, the principal amount is slightly decreased so the City's administrative fee will be decreased slightly. Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs closed the public hearing It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to adopt Resolution No. 15-069 Consenting to the Issuance of Health Care Revenue Refunding Bonds to Refinance Health Care Facilities located in the City The motion passed 7-0 6b. The Shoreham — Public Hearing and First Reading of Ordinance Vacating Right-of-Way Mr Kelley presented the staff report and explained the applicant requested that the City vacate alley right-of-way as part of the redevelopment proposal for the Shoreham development. He stated that the appropriate utilities were notified of the request and staff received no opposition to the request. Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs closed the public hearing. It was moved by Councilmember Sanger, seconded by Councilmember Hallfin, to approve First Reading of Ordinance Vacating an Alley lying between CSAH 25 Frontage Road and 31 S' Street West which connects France Avenue and Glenhurst Avenue and to set Second Reading for June 1, 2015 The motion passed 7-0 6c. Westside Center — Public Hearing and First Reading of Ordinance Vacating Public Easements Mr Boyce presented the staff report and explained that the property owner, COB, LLC, started multi tenant renovations of the former Nestle/Novartis site and requested the vacation of utility easements for expansion of the site and other site improvements. He presented an aerial map and site layout depicting the addition of a ring road for increased traffic, reconfiguration of parking, and outside storage for Lyman Lumber. He also presented a map of the easements to be vacated and stated the City would retain a 10' utility and drainage easement on the site. He added that Comcast, Xcel Energy, and City Council Meeting -4- May 18, 2015 CenterPoint have indicated a willingness to relocate their utilities at the property owner's expense. Councilmember Sanger asked if there would be any negative impact on the adjacent wetlands. Mr. Walther replied there had been wetland delineation on the site with one small area qualifying as a wetland per the Minnehaha Creek Watershed District. The balance of the site was fill and not designated as a wetland. He advised there was a floodplain within the area and, as part of this project, there would be fill within the floodplain and compensatory storage required Councilmember Hallfin noted that when Nestle/Novartis occupied the site there was a significant drain on the City's water capacity and asked if the City had taken that into consideration. He also asked about the proposed outdoor storage Mr. Walther replied that the water usage with the new tenants was significantly less than when Nestle/Novartis occupied the site. He stated the outdoor storage was an accessory use to an existing use in the building and was allowed in this district with some limitations. Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs closed the public hearing. It was moved by Councilmember Sanger, seconded by Councilmember Spano, to approve First Reading of Ordinance Vacating Easements — 5320 West 23rd Street and to set Second Reading for June 1, 2015 The motion passed 7-0 7. Requests, Petitions, and Communications from the Public—None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. First Reading of Liquor Ordinance Amendment and Zoning Text Amendment Related to Breweries Ms Kennedy presented the staff report and explained that Steel Toe Brewery requested an amendment to the Zoning Code to increase the maximum number of barrels of malt liquor that can be produced on an annual basis from 3,500 to 20,000 barrels She stated the text amendment needed to be accompanied by a corresponding amendment to the City's liquor licensing provisions and the amendment was in response to changes to the Statute enacted in 2014 which increased the limit to 20,000 barrels. Councilmember Spano asked if the increased capacity to 20,000 barrels annually and resulting increase in operations for Steel Toe Brewery would have any negative impact on the roads in the area from increased semi-truck traffic. Mr. Harmening stated that the infrastructure in the zoning district was built to accommodate heavy use and staff did not believe there would be any negative impact. City Council Meeting -5- May 18, 2015 It was moved by Councilmember Spano, seconded by Councilmember Mavity, to approve First Reading of Ordinance Amending Chapter 3, Section 57, of the St Louis Park City Code Increasing Production Capacity for Brewer Off-Sale Malt Liquor Licenses and Brewer Taproom Licenses and to set Second Reading for June 1, 2015 The motion passed 7-0 It was moved by Councilmember Spano, seconded by Councilmember Mavity, to approve First Reading of Ordinance Amending Chapter 36 of the St Louis Park City Code Increasing Production Capacity for Breweries Located in the Industrial Park and Business Park Zoning Districts and to set Second Reading for June 1, 2015 The motion passed 7-0 8b. Preliminary/Final Plat of Minnota Addition — 4903 Cedar Lake Road. Resolution No. 15-070. Mr. Morrison presented the staff report along with an aerial photo and several pictures of the site. He stated the property owner intended to plat approximately 44,977 square feet of unplatted property with 3,600 square feet of land from the neighboring townhome development As part of the plat, the City required construction of a sidewalk on the public right-of-way He advised the property owner intended to construct one building with 16 townhome units and each unit would have access to two private underground parking spaces He stated a neighborhood meeting was conducted and the proposed development was well received. It was moved by Councilmember Brausen, seconded by Councilmember Spano, to adopt Resolution No. 15-070 Giving Approval for Preliminary & Final Plat of Minnota Addition The motion passed 7-0 8c. The Shoreham Development — Preliminary & Final Plat and Preliminary & Final Planned Unit Development (PUD). Resolution No. 15-071. Mr. Kelley presented the staff report and explained the Preliminary and Final Plat combined six parcels into one 2.23 acre lot and included provision of the required drainage and utility easements He stated the developer requested a subdivision variance along the southeast portion from 10' to 3' for the underground parking He presented several renderings of the project and described the site plans for the proposed development. He also presented floor plans and stated that one level of underground parking for residential use was provided. He stated the proposal provided 97 trees, 648 shrubs, and over 1,000 perennials and grasses. The proposal exceeded the City's DORA requirement by providing 14.2% DORA, and the proposal included two landscaped areas including a historical marker of the ASAP Building. He stated that 90 additional parking stalls were required for non-residential uses before the 10% reduction, resulting in 279 parking spaces and the proposal provides 290 spaces. He advised that a traffic study was done as part of the Comprehensive Plan amendment and was updated to include the proposed medical office use. A minimal change in trip generation from the previous traffic study was found, however there was no change in the intersection level of service. City Council Meeting -6- May 18, 2015 He stated that a public hearing was held on May 6, 2015, and a suggestion was made to have the units be "for sale" units and all other comments related to the reconstruction of France Avenue, which would be privately maintained by the developer but built to City standards and would provide for two-way traffic It was moved by Councilmember Sanger, seconded by Councilmember Mavity, to adopt Resolution No. 15-071 Approving the Preliminary and Final Plat of The Shoreham Addition with Variance from Subdivision Ordinance for 3907 and 3915 Highway 7, 3031 Glenhurst Avenue, and 3914 and 3918 315t Street West Councilmember Spano stated he was pleased to see some recognition of the historic ASAP Building and requested that the developer try to integrate something more robust into the project that more fully recognized the historic nature of the ASAP Building. The motion passed 7-0 It was moved by Councilmember Sanger, seconded by Councilmember Mavity, to approve First Reading of Ordinance Amending the St Louis Park City Code Relating to Zoning by Creating Section 36-268-PUD 1 as a Planned Unit Development Zoning District for the Property Located at 3907 and 3915 Highway 7, 3031 Glenhurst Avenue, and 3914 and 3918 31st Street West and to set Second Reading for June 1, 2015 The motion passed 7-0 8d. 4900 Excelsior — Preliminary Plat and Preliminary Planned Unit Development(PUD). Resolution No. 15-072 Mr. Walther presented the staff report and stated the proposed Preliminary Plat would combine two parcels into one and dedicate right-of-way and easements He advised that the proposal had been modified since the Planning Commission public hearing by reducing the building to five stories with 177 residential units He presented several renderings of the project and several precedent images depicting screening used in other projects He also presented the results of the shadow study and noted critical dates showing shadows on two neighboring buildings at Excelsior & Grand, and the condo building across the street. He pointed out that one of the conditions of preliminary approval was to confirm that the project met the City's shadow requirements. He presented the first floor plan and advised that the parking count included on-street parking for a total of 33 on-street parking spaces He reviewed density as well as floor area ratio, ground floor area ratio, and DORA and advised that the landscaping plan provided 22 trees and 61 shrubs along with alternative landscaping. He explained that 224 parking spaces were required for the residential use and the underground parking contained 240 spaces, while 113 parking spaces were required for the commercial use and the plan included 99 spaces. However, the commercial use was eligible for a 10% transit reduction, so the total parking required for the overall development was 326 spaces and the plan provided for 339 spaces He stated the shared parking study determined that the peak time for the grocery store was projected to have a demand for 106 parking spaces and there would be 99 spaces available at the ground level. Staff recommended that 20 spaces in the underground ramp be required to be provided as shared parking with commercial tenant employees to free up spaces for customers and guests on the ground level He advised that the traffic study considered current and City Council Meeting -7- May 18, 2015 projected traffic with or without the development and concluded that the proposed development would have little impact and that the intersections studied would operate acceptably. The only impact found was to westbound Excelsior Boulevard turning left onto Quentin due to the limited green light time and short queuing available. He stated the Planning Commission recommended approval of the Preliminary Plat, denial of the subdivision variances, and denial of the PUD. Councilmember Mavity stated the City was seeing a lot of development along Excelsior Boulevard and would see more development in the future, which was appropriate for this commercial corridor. She referenced the resident-driven planning process recently completed for the south side of Excelsior Boulevard and stated that another development across from Trader Joe's would be coming before Council and she wanted to be careful about considering these projects separately She opined that the Council should be considering the total impact of these projects on the entire corridor. She felt the developer missed the mark by their proposed height reduction off the front of the building because she felt Excelsior Boulevard could handle additional height better than the back side. She also felt the proposed footprint of the building was being stretched to the boundaries and the largest impact appeared to be on the condo owners at Park Commons and she was not sure the City had fully considered that impact. She stated there were details she hoped could be further worked on, such as snow being hauled off the site and restricting hours of deliveries, and she wanted to make sure the City was attentive to those details that impacted the livability of nearby residents. Councilmember Sanger agreed with approving the Preliminary Plat but would not support the PUD. She was concerned about the lack of green space around the building and from an aesthetic point of view did not think it was a good idea to have so much impervious surface She was also concerned about parking and felt it was important to recognize that the on-street parking spaces were already being used and did not think the developer should be allowed to count those spaces. She was concerned about the number of small one-bedroom units being built in the community and questioned what was going to happen when there was no longer a big demand for one-bedroom units. She was concerned about the bland architecture of the building and felt that too much was being crammed onto the site. She requested the City take a step back to look at all the development being proposed on Excelsior Boulevard Councilmember Hallfin agreed with the Planning Commission's recommendation and agreed that it appeared the developer was trying to cram a lot into the space and was not giving the building the aesthetic that was normally seen in St. Louis Park He noted the building looked like what the City's Ordinance indicated it could look like. He referenced the City's housing policy and stated this proposal did not meet that policy. Councilmember Spano stated that while there was not a large park on this site, Wolfe Park was located one block away and was one of the biggest parks in the City. He stated a significant portion of the housing stock in the City was built from 1946-1951 and most of those houses were modest in size, yet St Louis Park remained in high demand and challenged the mindset that no one would want to live on this property in the future. He stated he would support this project but was troubled by the way the City conducted its traffic analyses, because every time a project was brought forward, the traffic study was wholly contained in the project and never addressed impacts to adjacent property. He stated Excelsior Boulevard was a major thoroughfare with residential neighborhoods half City Council Meeting -8- May 18, 2015 , a block away and requested that Council discuss how the City could differentiate those residential neighborhoods from the commercial district to reinforce that you are leaving a commercial district and entering a residential neighborhood. Councilmember Brausen stated he was generally in favor of the project and felt the developer was being responsive by repeatedly making modifications to their plans He felt the City was within the guidelines on Excelsior Boulevard related to height and the overall project met the City's parking and DORA requirements. Councilmember Lindberg agreed with Councilmember Brausen but felt Council needed to take some additional time to make sure it felt good about all aspects of the proposal. It was moved by Councilmember Mavity, seconded by Councilmember Hallfin, to adopt Resolution No. 15-072 Granting Approval of Preliminary Plat with Subdivision Variances for Perimeter Drainage and Utility Easements—Park Commons West The motion passed 7-0 It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to continue action on Resolution Approving a Preliminary Planned Unit Development (PUD) located at 4760 and 4900 Excelsior Boulevard—4900 Excelsior The motion passed 7-0 8e. First Reading of Zoning Ordinance Amendment Pertaining to Discontinuance of Water Service Mr. Hall presented the staff report and stated that due to the upcoming water meter replacement project, the current Ordinance allowed only for testing and repairing of water meters and did not include allowing access for replacement of water meters. He stated the proposed amendment allowed discontinuance of water service for not allowing access to the water meter and allowed a reasonable time for the property owner to hire a licensed plumber to replace the water meter and/or related equipment It was moved by Councilmember Sanger, seconded by Councilmember Brausen, to approve First Reading of Ordinance Relating to Discontinuance of Water Service, Amending Chapter 32 of the St Louis Park City Code and to set Second Reading for June 1, 2015 Councilmember Spano requested that Section 1(6) be revised to define what a reasonable length of time was for the work to be done to provide clarity when shutoff could occur Councilmember Brausen was opposed to the amendment proposed by Councilmember Spano and felt the term "reasonable" was sufficient and gives some discretion to staff Councilmember Sanger agreed and pointed out that if the City reached the point of shutting off the water, the property owner had already received several notices so the discontinuance of service should not come as a surprise. Councilmember Lindberg stated he was confident that staff was working hard to communicate with residents and the discontinuance of water service would be a last resort City Council Meeting -9- May 18, 2015 Mayor Jacobs stated he was uncomfortable with shutting off someone's water service because they have not allowed access, especially if someone had paid their water bill and the City had cashed their check He stated he would be comfortable if language was included that gave City staff the option of informing residents that if they do not provide access, the City would charge them to read their water meter manually. The motion passed 5-2 (Mayor Jacobs and Councilmember Spano opposed) 8f. Preliminary Development Agreement between the EDA, the City, and PLACE. Resolution No. 15-073. Councilmember Sanger stated she liked many of the environmental aspects of the project and that it included larger apartments, but did not agree with the amount of affordable housing She stated the City's housing policy required 20% affordable units and this project had three times the number of affordable units She added that she was well aware of the strong need for more affordable housing in the metro but questioned how much affordable housing should be included in any one project and in any one community. She referenced Met Council's policy of seeking to disperse affordable housing throughout the metro and noted that St. Louis Park was already in the top 10% in terms of affordable housing. She opined she would be more comfortable having more affordable housing when the rest of the metro area had their share of affordable housing. She expressed concern that the project was not consistent with what residents wanted or expected and felt the Council should hold a citywide meeting to get input on what kinds of developments residents wanted in the community. Councilmember Brausen stated he felt the balance on this project was wonderful and that there had been a mischaracterization of affordable housing as low-income housing. A family had to make $55,000/year to qualify for one of these units. He pointed out that this project would provide workforce housing, and the fact that 60% was concentrated in one four-building complex didn't bother him He also stated that there would be a wide spectrum of people with diverse incomes living in this development. Councilmember Spano added that that the project was mixed use, mixed income workforce housing. It was transit friendly, bicycle friendly and had an urban forest He stated that not one project that had come before the Council had everything, and if the worst thing this project created was more affordable housing, he could live with that. Councilmember Mavity stated that when she spoke to residents in Ward 2, she heard from retirees living in small homes valued at $185,000-$225,000 The target income to qualify for a unit in this development was $42,000, providing a way for retired people to stay in St. Louis Park when they move from their homes. She pointed out that St. Louis Park had almost no options for affordable, low-maintenance housing for retirees. She asserted that one of city's greatest challenges was to provide affordable housing for people who would love to live in St. Louis Park and raise their children in the school system but who cannot find affordable housing. She concluded by stating that this development was exactly what was needed because it would provide a range of choice that the community did not currently have. Mayor Jacobs added that this development met a lot of the goals that the city had and would be a great addition to St Louis Park City Council Meeting -10- May 18, 2015 It was moved by Councilmember Brausen, seconded by Councilmember Mavity, to adopt Resolution No. 15-073 Approving Preliminary Development Agreement between the St Louis Park Economic Development Authority, the City of St Louis Park, and PLACE The motion passed 6-1 (Councilmember Sanger opposed) 9. Communications Mayor Jacobs thanked everyone who participated in the Ice Cream Social on Sunday and thanked Sebastian Joe's for donating the ice cream. Councilmember Spano congratulated Mr. Harmening on his 20 year anniversary with the City and thanked him for his years of service. 10. Adjournment Mayor Jacobs adjo -d the meeting at 9:47 9.m. ... ,�4a. /. _ _ . _ Melis:. Kennedy, City Clerk Jeff Ja'o sOM yor