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HomeMy WebLinkAbout2017/03/06 - ADMIN - Minutes - City Council - Regularfff St. Louis Park MINNESOTA 1. Call to Order Mayor Spano called the meeting to order at 7:30 p.m. OFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA MARCH 6, 2017 Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Gregg Lindberg, Anne Mavity, Thom Miller, and Susan Sanger. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), Economic Development Coordinator (Mr. Hunt), City Attorney (Mr. Mattick), Assistant Zoning Administrator (Mr. Morrison), City Planner (Ms. Monson), Senior Engineering Project Manager (Mr. Shamla), and Recording Secretary (Ms. Pappas). Guests: Michael Marguieles, spokesperson for developer, and Dean Dovolis, architect. Ia. Pledge of Allegiance lb. Roll Call 2. Approval of Minutes 3a. City Council Meeting Minutes February 6, 2017 Councilmember Lindberg noted on page 6, paragraph 3, the phrase "on Minnetonka Boulevard" should be removed. Councilmember Sanger stated on page 10, at the bottom of the page, the phrase, "which will be filled as a result of this current sidewalk project" should be added. Also on page 11, on the 3rd line down, the phrase, "which will be removed for roadway construction" should be added. Councilmember Mavity stated on page 13, in the 0' paragraph, "would vAaanee' should be changed to "would not allow a variance." It was moved by Councilmember Lindberg, seconded by Councilmember Hallfin, to approve the February 6, 2017 City Council Meeting Minutes as amended. The motion passed 6-0-1 (Councilmember Brausen abstained). 3b. City Council Meeting Minutes February 21, 2017 Mayor Spano noted on page 7, in the 2 n paragraph, it should read "...small cell antennas are viewed as a utility..." Councilmember Sanger noted on page 4, under the Place Project in the 2nd paragraph, 2nd to last sentence, it should read, "She continued when the project is finished the market value will be approximately half of its total construction costs." Councilmember Sanger also noted on page 7, referring to the city manager's award, it should read, "League of MN Cities presented the award to the city manager." City Council Meeting -2- March 6, 2017 It was moved by Councilmember Sanger, seconded by Councilmember Miller, to approve the February 21, 2017 City Council Meeting Minutes as amended. The motion passed 7-0. 4. Approval of Agenda and Items on Consent Calendar 4a. Accept for filing City Disbursement Claims for the period of January 28, 2017 through February 24, 2017. 4b. Moved to 8e. 4e. Approve Second Reading and Adopt Ordinance No. 2513-17 amending Chapter 20-5 of the St. Louis Park Code of Ordinances relating to prohibited acts to allow alcohol at the Recreation Outdoor Center ("ROC"); regulations for Parks and Recreation, and to approve the ordinance summary for publication. 4d. Adopt Resolution No. 17-045 approving the new Amended & Restated Agreement, between the City and T -Mobile Central LLC, for communication antennas and related equipment on the City's water tower at 5100 Park Glen Road. 4e. Adopt Resolution No. 17-046 approving the new Amended & Restated Agreement, between the City and T -Mobile Central LLC, for communication antennas and related equipment on the City's water tower at 8301 W. 34th Street. 4f. Adopt Resolution No. 17-047 authorizing St. Louis Park Lions Club's request for placing temporary signs in the public right-of-way. 4g. Adopt Resolution No. 17-048 appointing Jim de Lambert as Commissioner, Patrick Noon as Alternate Commissioner, and Erick Francis as the Technical Advisory Committee (TAC) member to the Bassett Creek Watershed Management Commission (BCWMC) to serve terms expiring January 31, 2020. 4h. Adopt Resolution No. 17-049 authorizing the implementation of parking restrictions adjacent to sanitary lift stations located near 2901 Nevada Avenue and 2449 Gettysburg Avenue. 4i. Approve for filing Telecommunications Advisory Commission Meeting Minutes of December 14, 2017. Councilmember Lindberg requested that Consent Calendar item 413 be removed and placed on the regular agenda as item 8c. It was moved by Councilmember Brausen, seconded by Councilmember Hallfm, to approve the Agenda and items listed on the Consent Calendar as amended to move Consent Calendar item 4B to the Regular Agenda as item 8C; and to waive reading of all resolutions and ordinances. The motion passed 7-0. 5. Boards and Commissions - None 6. Public Hearings 6a. Alley Vacation (5605 36" Street W/3700 Hwy. 100) Ms. Monson presented the staff report and request of 36th Street, LLC, for the vacation of the northern eight feet of alley right-of-way for the purpose of redeveloping the parcel located at 5605 36th St. W., the Elmwood housing project. She stated that as the right-of- way is not needed for public purposes, it can be vacated and combined with the adjacent properties. Xcel Energy maintains overhead electric utility lines in this area. Therefore, City Council Meeting -3- March 6, 2017 the city will retain a two -foot public drainage and utility easement over the southern portion of the alley. Additionally, she noted the city will retain the southern eight feet of the alley right-of-way to facilitate a potential shared access between 5605 36th St. W. and 3700 Hwy. 100 in order to improve access and circulation between the two properties in the future. The southern half of the alley right-of-way is currently used for landscaping between the two properties. Mayor Spano opened the public hearing. No speakers were present. Mayor Spano closed the public hearing. Councilmember Mavity commented this is a logical step as the city is looking at redevelopment in this area. It was moved by Councilmember Movity, seconded by Councilmember Brausen, to approve First Reading of an Ordinance vacating the northern eight feet of alley right-of- way and set the Second Reading of the Ordinance for March 20, 2017. The motion passed 6-1. (Councilmember Miller opposed) 7. Requests, Petitions, and Communications from the Public — None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. The Elmwood — Preliminary and Final Plat, Preliminary and Final Planned Unit Development. Resolution No. 17-050 Ms. Monson presented the staff report. She noted that 36th Street, LLC, submitted applications for Preliminary and Final Plat and Preliminary and Final Planned Unit Development for redevelopment of the 36" Street Business Center and American Legion. The applicant proposes to demolish the existing building and construct a six -story, mixed-use building with 85 residential units, 20% of which will be affordable at 60% area median income, along with approximately 4,920 square feet of commercial space, and 188 parking stalls. The unit mix includes 14% 1 -bedroom units, 23% 1 bedroom plus den units, 44% 2 -bedroom units, and 19% 2 -bedroom plus den units. Ms. Monson added that the PUD is needed to rezone the property from I -P Industrial Park to allow for a mixed-use building. The PUD also provides flexibility on height and density. The proposed PUD is 0.99 acres, and council approval is also needed for a PUD under two acres. Councilmember Mavity stated she is supportive of this development, noting it is in alignment with what has been developing in the neighborhood for 20 years. She added the structure is height appropriate and adjacent to Highway 100. With the addition of more affordable units and the DORA, it is in line with the plan that was set in 2003. She noted that currently the city is working on St. Louis Park Visioning 3.0, and she wants to be certain the city stays in line with what the community is looking for. She added this will not be the last development in this area, and the neighborhood has had traffic concerns here. She noted at the PLACE development, they have actually removed much of the parking, and this is a very positive way to reduce traffic in the area. Councilmember Mavity stated she shares the concerns of the Planning Commission. She wants to be sure that there are plenty of evergreens at the development and that the City Council Meeting -4- March 6, 2017 landscaping plan includes pleasant greenery in the wintertime, as well as the summer. She also asked staff how park dedication fees will be spent in this area. Mr. Harmening stated that as with other developments, the developer pays into the park improvement fund, and this becomes part of the capital plan that the council approves. He added it is up to the council if they would like to see dollars used at The Elmwood. Councilmember Brausen asked if the developer was interested in trading off some of the parking for more affordable housing units or additional commercial space. Ms. Monson stated the developer did reduce some of the off-street parking, but spaces are needed to help support the commercial businesses. She added that the developer included many storage units and also underground bike parking spots. Councilmember Brausen asked if there was a dollar amount on the TIF financing. Mr. Hunt stated the developer has applied for TIF and will be recommended for TIF assistance at the March 27 Study Session. Councilmember Brausen asked if the TIF will be according to all of the city's formulas, and Mr. Hunt answered yes. Councilmember Brausen asked if the TIF is not approved, if the development will continue as presented. Mr. Margulies, spokesperson for the developer, stated that related to the TIF, the developer added more affordable housing and a floor to the building, along with more amenities. He stated the TIP will be requested in order to finance the project, adding the project has challenges with the 20% affordable housing component. He added that the TIF will help meet the requirements of the affordable housing, which will be a good value for seniors. Councilmember Miller stated he will oppose the project tonight. He added it is a good- looking development and serves a need for St. Louis Park residents. However, he does not think the development meets the 2003 vision for this area. He stated it does not have commercial on the first floor and not enough mixed-use. He stated it has the public art component but does not provide anything to the community. Councilmember Lindberg stated he is not supporting this project either. His main concern is the lack of commercial space on the first floor. He added this needs to be the right development, and it will require TIF to get it done. He does not see community use on the first floor. While he has a strong desire to see senior affordable housing in St. Louis Park, it must be balanced with what we are hearing from residents on these projects. Councilmember Sanger stated that when the project was originally proposed, she liked the five -story building vs. the current six -story proposal. She, however, gives the developer credit on the inclusion of many 2 -bedroom and 2 -bedroom plus den units. Because of this, she can support the six -story proposal. Councilmember Sanger asked if the original proposal required TIF assistance. Mr. Margulies answered yes. Councilmember Sanger asked what the expenses are which lead the developer to make the TIF request. Mr. Margulies stated it is a combination of construction costs; the fact that the first floor has no residential component; and the smaller number of units. He added in the end, in order to invest in constructing this building with any return, TIF is needed to offset the lower rent for the affordable units. Councilmember Sanger asked Mr. Margulies if there were no affordable units, if they would still ask for TIF assistance. Mr. Margulies stated it is difficult to say. He noted that the balance gets tenuous, between higher rents and still trying to appeal to seniors looking for a certain rental price. City Council Meeting -5- March 6, 2017 Councilmember Mavity asked what the rentals costs will be for the project. Mr. Margulies stated they will be at $1.75 per square foot, as compared to most in the Twin Cities which are at $2 per square foot and up. He added the 1 -bedroom will be $1,200 per month, the 1 -bedroom plus den will be in the $1,500-1,600 range, and the largest 2 - bedroom will be $1,700-1,800 per month, which is less than the market price. He noted also the affordable units will be $975 per month for a 1 -bedroom and $1,000 per month for a 2 -bedroom. Councilmember Mavity noted that with the city's aging population, there are not a lot of housing products available, and this project fills the gap. She added we need more housing targeted for seniors in our community in order for them to stay in St. Louis Park. Councilmember Hallfin added that the Planning Commission held a public hearing on this project and voted to pass this on to the council. When commissions make a recommendation to the council, we need to take them seriously. He stated he will go along with the Planning Commission's recommendation on this development. Councilmember Brausen stated he agrees with Councilmembers Mavity and Hallfin, noting this is a desirable development and a welcome addition in this area, where so far there are only luxury units. He stated he supports this development. Mayor Spano stated he would like to see commercial on the ground floor, but added he doesn't think there is a project that exists that will always have everything the council wants. He added he will not stand in the way of a project that provides 2 -bedroom units for $1,000 and is just blocks away from the light rail. He believed this offer of affordable senior housing is too good to pass up. Mayor Spano also noted the council will need to be cautious on park dedication fees for projects, adding he would like to see fees go into the fund and then allow park and recreation staff to make the decisions on how the fees are used. It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to adopt Resolution No. 17-050, approving the Preliminary and Final Plan, subject to conditions; and, to approve First Reading of an Ordinance adding Section 36 -268 -PUD 8 of the Zoning Code and amending the Zoning Map from IP — Industrial Park to PUD 8 for the property located at 5605 361" Street West, and setting the Second Reading for March 20, 2017. The motion passed 5-2. (Councilmembers Miller and Lindberg opposed) 8b. Zoning Ordinance Amendment Relating to Religious Institutions in Residential Zoning Districts. Mr. Morrison presented the staff report. He explained that the Thai Buddhist Center of Minnesota purchased the former Church of the Reformation at 2544 Hwy. 100 and is requesting an amendment to the zoning ordinance to allow up to 15 people to live at the religious institution in the R -I Single -Family Residence Zoning District. He added that if the zoning code is amended, staff proposed the regulations to allow dwelling units as accessory uses to religious institutions should apply in all residential zoning districts. Staff also proposes several conditions which are outlined in the staff report to council. Councilmember Sanger welcomed the group to the community and asked if staff can confirm that the monks will live in the existing center and that they will not be City Council Meeting -6- March 6, 2017 constructing an additional building on the site. Mr. Morrison stated that is their preference, however, the remodeling costs are causing them to review options, including a separate building. Councilmember Sanger added the council is glad the group is here, and the neighbors are also glad. She stated they are appreciative the group is preserving the existing building, which is an example of mid-century architecture, and thanked them for also keeping the community garden. Councilmember Miller, who lives in this neighborhood, stated this is a big win for the neighborhood and a fine example of the architectural style. He added he welcomes ethnic diversity, as well as faith diversity to the neighborhood. Mayor Spano congratulated the group and stated he has a feeling they will become a good partner to the other religious organizations in the area — Benilde-St. Margaret's and Beth El Synagogue. He stated there will be good opportunity for interfaith dialogue, and it is great that there will be a new presence in the community, adding that the group will have good neighbors to work with. It was moved by Councilmember Sanger, seconded by Councilmember Miller, to approve the First Reading of Ordinance amending Chapter 36 of'the City Code to allow dwelling units as an accessory use to Religious Institutions in the residential zoning districts, and to set the Second Reading for March 20, 2017. The motion passed 7-0. 8c. Approve Final Plans and Specifications, and Authorize Advertisement for Bids. Resolution No. 17-051 Mr. Shamla stated that on October 17, 2016, the council approved the development of plans and specifications for the Texas Avenue rehabilitation project. This street is an important north/south route in the city that carries over 8,000 vehicles per day and includes a Metro Transit bus route. He added that CenterPoint Energy will be replacing their 24 -inch high-pressure gas main on this segment of Texas Avenue in 2017, and coordinating the city project with the CenterPoint Energy project will result in cost savings, as well as a reduction in inconvenience to the property owners and the traveling public. Mr. Shamla stated construction will begin in April, 2017, and is planned to be completed in November, 2017. Councilmember Lindberg stated he had asked for this item to be taken off the consent agenda in order to get clarification on the motion. Mr. Shamla stated that originally the council was looking at two different concepts for this project. In October, staff asked for council's guidance to move forward; however, the city was not ready for bid documents. Now the final plans are set and ready for approval. Councilmember Lindberg asked about rerouting the bus onto Sumter Avenue, adding that Merino Transit was not able to provide information at the neighborhood meeting. Councilmember Lindberg asked if staff could explain if there are any new developments to the reroute. Mr. Shamla stated staff has received bus and user counts, but unfortunately there are no other routes that work. City Council Meeting -7- March 6, 2017 Councilmember Lindberg stated then the decision about moving bus traffic to Sumter / Avenue is out of the city's control. He added that this complicates how he looks at this l item, given resident feedback, and as the council is asked to approve plans tonight. He stated he has concerns and wants to be sure staff has the best resources to build the project right. Knowing that this project must be completed, he wants the city to ensure safety for our residents, with the least amount of disruption. Councilmember Lindberg added his comments from October still stand on this project. It was moved by Councilmember Lindberg, seconded by Councilmember Brausen, to adopt Resolution No. 17-051, approving final plans and specifications, and authorizing advertisementfor bids. The motion passed 7-0. 9. Communications Councilmember Hallfin encouraged all to attend the 10h annual Empty Bowls fundraiser for STEP on Thursday, March 9, at Westwood Lutheran Church,. Councilmember Mavity stated she is very excited about the grand opening at Copperwing Distillery on Cambridge Avenue at 2 p.m., Saturday, March 11. She added this is the first distillery open to the public in St. Louis Park. Councilmember Brausen noted he will be at the STEP fundraiser. Mayor Spano added he will be serving soup, adding this is a great cause. Mayor Spano stated that on March 23, the State of the City address will be given at 4:30 p.m. at the non-profit organization Matter, located at 7005 Oxford Street. The Outstanding Citizen Award will also be presented at this event, and he encouraged all to attend. Mayor Spano noted the Visioning 3.0 process is in progress and encouraged folks to contact city offices or the council, or to go to the website at stlouispark.org/vision for more information. He added there will be Facebook town hall meetings where citizens can provide comments and ask questions, adding there are lots of ways to participate. 10. Adjournment The meeting adjourned at 8:45 p.m. Melis Kenned , City Clerk