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HomeMy WebLinkAbout03-19-12-WS ,-ARZEN�HILLS Approved: April 16, 2012 CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION MEETING MARCH 19,2012 5:00 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor David Grant called to order the City Council Work Session meeting at 5:01 p.m. Present: Mayor David Grant, Council Members Brenda Holden, Fran Holmes, Nick Tamble, and Ed Werner Absent: None. Also Present: City Administrator Patrick Klaers; Community Development Director Jill Hutmacher; City Planner Meagan Beekman; and Planning Commissioners Janet Stodola, Clayton Larson, Roberta Thompson, Angela Hames, and Andrew Holewa 1. ADOPT AGENDA MOTION: Councilmember Holmes moved and Councilmember Holden seconded a motion to approve the meeting agenda as presented. The motion carried unanimously (5-0). 2. AGENDA ITEMS A. Arden Village Review and Update City Planner Beekman presented the City Council with information on Arden Village. She explained that Sand Companies was the developer for the project and were seeking a letter of support for their 2012 tax credit application for the Minnesota Housing Finance Agency. The application deadline is late May. In preparation of this application, the developer requested an opportunity to speak with the Council and discuss the project in further detail. City Planner Beekman explained Arden Village is a 55-unit four-story building with workforce rental housing located at 1296 County Road F. The development would also include a tot lot playground and picnic area for residents. At the time of the approval a zoning code amendment ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 2 was approved changing the site from Industrial to High Density Residential. The City previously approved a letter of support for up to $225,000 of TIF for this development. Staff recommended the Council discuss the project along with the letter of support. John Belisle, Midwest Housing, discussed the Arden Village Development further noting that the project planning began in 2009. He noted this is a high quality project with the goal being to create workforce housing geared towards working families. He noted Sand Companies has been in business for 20 years. The rental rates were discussed in detail, along with income limits. He noted credit and criminal background checks are completed on each renter. Mr. Belisle commented he has completed four applications for this project to the Minnesota Housing Finance Agency. He indicated additional funding sources were being sought to subsidize the reduced rental rates. Arden Village received an earmark for $250,000 in home funds last year from Ramsey County, which will be given again in 2012. Mr. Belisle stated that tax credits for housing projects are granted on an extremely competitive basis. For this reason, he is seeking a City Council letter of support for the 2012 tax credit application for the Minnesota Housing Finance Agency. Councilmember Holden requested further information on the project's financing and how the programs are funded. Mr. Belisle reviewed a chart with the Council. City Administrator Klaers requested City Planner Beekman discuss the City's low to moderate income housing goals as approved by the Metropolitan Council Mr. Belisle stated he had reviewed the 2030 Comprehensive Plan when this project began. City Planner Beekman stated the Met Council assigns a certain number of housing units to each community for low to moderate income housing units based on demographics and rate of projected growth. The community is then expected to adopt these goals and participate in the Met Council's Home Program. At this time, the City's goal is to add 288 affordable housing units by 2020. Participation in the Met Council's Home Program is required to receive any grants and funding available from the Met Council; however, she noted the program was voluntary. City Planner Beekman explained the need for affordable housing is made visible through this program. She reported Arden Village met the affordable housing standards. Mr. Belisle stated the local participation allows for additional funding opportunities through the Met Council Further discussion ensued regarding the application process with the Minnesota Housing Finance Agency and tax credits. Councilmember Holmes expressed concern that funds were being requested from the City when the developer was not investing the same amount. The developer was receiving tax credits to cover their expenses while the City would be out $225,000 in TIF money. ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 3 Mr. Belisle commented that without assistance this project could not move forward. City Planner Beekman indicated developers expect to make money over time through a development. The City was not looking to make a profit on the development but was looking to make an investment in the community. Community Development Director Hutmacher added that the cost of building these units would not allow for them to be geared towards workforce housing. For that reason, tax credits and grants reduce the capital costs of development so that rents are affordable. City Administrator Klaers stated the only risk with the development would be if the units were not rented. Mayor Grant questioned how much of the land costs were recouped through the sale of the antenna tower. Mr. Belisle explained he was asked to keep this information confidential. City Administrator Klaers stated the information may be public and available through Ramsey County. Councilmember Holden was in favor of providing some TIF dollars for the project. She was uncertain if the entire $225,000 was necessary. City Planner Beekman questioned if the application with the Minnesota Housing Finance Agency would be jeopardized if the TIF amount was reduced. Mr. Belisle did not feel this would jeopardize the application, as the City was assisting with reduced Park Dedication Fees and a trail. He noted the City did approve a higher density for the site, which assisted the project. Mayor Grant felt it would be difficult for the City to offer the same amount of TIF year after year as developments and initiatives throughout the community change. He questioned if $100,000 were offered by the City if Sand Companies could make up the difference. Jamie Thelen, Sand Companies, indicated Sand Companies has been investigating other funding sources to assist with the project. Councilmember Holmes asked for the estimated net profit for the first year of operation. Mr. Belisle anticipated the development would make approximately $50,000 in the first year after paying all operating expenses and debt services. He explained the units had to remain affordable for 30 years. City Administrator Klaers questioned if it would be appropriate to have Ehlers review the information and determine an appropriate level of TIF for the proposed development. ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 4 Community Development Director Hutmacher explained the "But For" analysis from Ehlers could provide the Council with additional information on the proposed development and its overall financing. Mayor Grant asked if staff knew the expense of the "But For" analysis. City Administrator Klaers estimated this to be a $5,000 expense and would be paid for by the developer. City Planner Beekman indicated if the TIF funds were granted, the assistance would be available to the developer for 12 years. After that time, full property taxes would be paid. Mayor Grant stated the City could also take TIF from Cottage Villas and apply it to this project. That would allow the tax revenue from this project to be collected from Day 1. The advantage of using these funds was that it was slated for affordable housing. City Planner Beekman stated this would be an option and the City would see some cost savings by not creating a new TIF district. Mayor Grant questioned if the Council wanted to proceed with the $225,000 in TIF or allocate a lesser amount. He was willing to provide TIF funds to the development but was uncertain if the full amount was necessary. Councilmember Tamble stated he was in favor of the development but was unable to commit to a dollar amount. Councilmember Holden agreed. Councilmember Holmes indicated she too supported the project. Councilmember Werner was not solid on the numbers but was willing to pursue TIF for this development. He questioned if the City had to determine an amount at this time or simply offer support for the project. Mr. Belisle commented that an amount did have to be included in the letter of support for the Minnesota Housing Finance Agency. He offered to walk Councilmembers Werner and Tamble through the facility in White Bear Lake to provide more information on the proposed development. B. The Salvation Army dult Rehabilitation Center City Planner Beekman presented the City Council with further information on the Salvation Army Adult Rehabilitation Center. She noted this issue was discussed at a previous work session meeting. The Salvation Army was interested in moving their adult rehabilitation facility to the property at 1300 Grey Fox Road. The applicant is proposing the reuse of the existing warehouse building, and to construct a new building that would be the location of the site's housing and administrative functions. ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 5 City Planner Beekman explained the Council had raised several concerns and questions with the project, which were forwarded to the applicant. Staff provided the Council with the February 21" draft minutes along with the 2012 proposed tax statements. She commented this evening would allow for further discussion on the redevelopment concept. Mayor Grant commented several Planning Commission members were present for the joint meeting scheduled for this evening. David Anderson, Frauenshuh, thanked the Council for their time this evening. He reviewed the Council's questions and Salvation Army's answers provided within the staff report. Annette Bauer, Salvation Army, commented one of the concerns expressed by the Council was the police presence or calls to the site. It was noted there were two calls to the Minneapolis site per month for the past three months. She explained that several of these calls were to the adjacent Thrift Store and did not involve the rehabilitation center. Ms. Bauer stated internal security could be investigated for the rehabilitation center. She then reviewed the number of full time employees onsite. George Fraser, Salvation Army, commented the front desk was manned 24 hours a day, 7 days a week, in addition to the four full time employees available onsite. Ms. Bauer stated the men in the program receive a stipend to cover personal expenses, after successfully completing 30 days in the program. This amounts to $12,000 a month, collectively. Councilmember Holden indicated this conflicted with the information provided last month, in that the residents would not be out in the community. Bill Price, Salvation Army Administrator, offered further clarification on the program parameters stating the men were in class from 6:00 a.m. to 8:00 p.m. for the first 30 days, Monday through Friday. After that time, passes are allowed after the work day and on weekends. This would allow the men to spend their allowance in the community. Mayor Grant inquired how the men in the program were transported to Salvation Army stores for work. Mr. Price explained most of the beneficiaries in the program go by public transportation. He noted only 30 to 40 beneficiaries are working in Salvation Army stores. Mr. Price stated vans would be an option if public transportation was not an option. He explained that cars were not allowed at the Salvation Army for the beneficiaries that were in the program. He noted some of the residents did not have a driver's license. Councilmember Holden questioned what percentage of residents did not have a license. Mr. Price stated this was completely subject to change depending on the clientele but estimated one-third of the residents did not have a driver's license. ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 6 Councilmember Holmes commented the public transportation in Arden Hills would be more limited than the buses available in downtown Minneapolis. She questioned if this would limit the access available to the residents. Mr. Price indicated this may change the way things are currently done, but more vans could be brought to the site to assist with transportation. However, this issue would not limit the redevelopment. Mayor Grant understood that alcoholism was treated through the rehabilitation program. He questioned if gambling concerns were also treated. Mr. Price stated gambling problems were often found with alcohol addictions. He explained the primary program to treat gambling addictions was offered through Fairview Riverside. He indicated the program does address "switching addictions" to assure the residents do not move from one issue to another. Councilmember Holden commented that after speaking with several individuals regarding the program she understood that the Salvation Army took the cream of the crop, which was assisting with the high success rate for the program. City Administrator Klaers indicated one of the core questions that still needs to be addressed was if the Council was interested in rezoning the property to allow Residential in the I-Flex zone. Ms. Bauer stated visitors at the site have not been a problem, but concern was expressed by the Council Mr. Fraser discussed the visitor situation stating family was only allowed from 8:00 p.m. to 10:00 p.m. He indicated the visitor time allowed the resident to become integrated back into their family throughout the rehabilitation process. Councilmember Holden asked if a retail store was proposed for Arden Hills. Ms. Bauer stated a retail store was not proposed at this time. She then discussed the proposed benefits of improving the site. The Salvation Army would be willing to assist with a city-wide recycling day or recycling initiative. Councilmember Tamble indicated he was impressed by the Salvation Army tour. He stated Arden Hills had a great deal of tax free property with the colleges and stated he wanted to see the potential redevelopment venture mutually benefit the City. Mr. Price questioned what number the City would need to hit in order to make this venture beneficial. He recommended the Council consider this further. Councilmember Holden explained she was struggling with rezoning the property. ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 7 Councilmember Werner commented this same concern was brought up by the EDC. One issue that still hasn't been addressed is how the residents of Arden Hills will react to the Salvation Army proposal. Councilmember Holmes noted the rezoning could be done in such a way to allow for an interim use permit for the Salvation Army. Another option would be to create a PUD with the rezoning. Each would require a 4/5 vote. Mayor Grant stated he did not see how the Council could put a residential use in the Industrial zone. He indicated the transportation issues for the City would also be a concern. He understood the improvements proposed for the property would benefit the City, but felt the use did not fit the site. He commented the Financial Planning and Analysis Committee was not in favor of additional tax free property in the City. The burden created would affect Arden Hills residents. Overall,he felt the proposed use was wrong for the site. Mr. Anderson explained the City's portion of tax loss would be $10,000 per year. He questioned if the Salvation Army were to bring more than $10,000 into the City if this would assist with the decision. Mayor Grant appreciated the recycling aspect. However, the use still did not fit into the Industrial site. Councilmember Holmes reviewed the surrounding uses at this location. She did not feel the rehabilitation center would interfere and fully supported the Salvation Army coming to Arden Hills. Mayor Grant indicated the Salvation Army does provide a great service through the program at the rehabilitation center and should be respected. Councilmember Werner agreed stating he appreciated the tour and the work completed by the Salvation Army. However, at this time, he could not support the rezoning. Councilmember Tamble stated the majority of the Council did not support the rezoning. However, he would support the issue if financial issues were further discussed. Mr. Price understood the Council's concerns. He indicated there were 120 rehabilitation centers throughout the United States and nearly all were located in light industrial or mixed use zoning districts. The reason for this was to avoid putting a warehouse in a residential zoning district. Councilmember Holmes felt this was a good point. She recommended the Council consider this redevelopment as it was a unique facility with residential and light industrial. Mayor Grant questioned how the current Minneapolis site was zoned. Mr. Price stated the site was zoned industrial (I-2) with a residential overlay that allows for housing. He commented the downtown warehouse district has transformed over time with more and more housing. ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 8 Mr. Anderson thanked the Council for their time and for the comments provided this evening. C. 2012 Work Plan and Project Priorities Discussion City Planner Beekman indicated the Council has made it a practice to hold a joint meeting with the Planning Commission on a yearly basis. This was a good way to hold valuable discussion and provide feedback to Staff on the City's work plan, goals and project priorities for 2012. She reviewed several items up for discussion noting direction from the Council would be appreciated. Chair Larson stated the Planning Commission's role and responsibility was the subject of an email he sent to the Mayor last year. This issue was raised after the Council discussed a Planning Commission item for over two hours. Feedback provided from the Mayor stated the Planning Commission did not need to change their method of review at this time. Chair Larson felt the Planning Commission should encourage the applicant to participate in public hearings. He added that more questions could be asked of the applicant to provide more information to the public. Mayor Grant agreed with these recommendations stating engaging the applicant would provide additional information to the residents. However, he cautioned the Planning Commission from straying off topic.. He encouraged the Planning Commission to stick to the City Code when reviewing all cases. Couneilmember Holden thanked the Planning Commission for all of the hard work completed on behalf of the community. She was impressed with the way the Planning Commission meetings were run. She stated if the public wanted additional information on the planning cases, the packet was available online. Chair Larson stated if an issue was controversial, attendance at a meeting was high and comments were taken and considered from the public. Mayor Grant commented non-controversial items at the Council level were placed on the Consent Agenda for approval. However, this provided the public with no information to the public. He recommended a brief staff presentation be given at the Planning Commission on items to provide the public with basic information on each case. Chair Larson indicated this suggestion would address non-controversial items as well as controversial ones. Commissioner Holewa stated communication with the public was good for the entire approval process. The more comments, both positive and negative, brought to the City the better. Councilmember Holmes asked if a checklist could be reviewed with each item to assure that all issues were addressed before being approved. ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 9 Councilmember Holden stated this would address her concerns when non-controversial issues were approved with no comments. There would be a greater reflection of the planning cases in the meeting minutes if a brief staff report were given. Chair Larson explained the information provided within the staff report was extremely thorough and addressed all of the issues with each planning case. Commissioner Stodola indicated the summary within the staff report provided such complete information it is not typically rehashed within the Planning Commission meeting. Commissioner Holewa questioned why some issues were brought to the Council for discussion prior to being reviewed by the Planning Commission. City Planner Beekman stated this was done only for issues that required a policy decision, such as rezoning or increased density as was the case with Presbyterian Homes and Pulte. This allows the applicant to receive feedback to see if it is worth pursuing their project. After input is provided by the Council, the item would then be brought to the Planning Commission for a work session discussion. Commissioner Thompson stated it would benefit the Commission to discuss the key points or review a checklist of information for each case to assure that controversial issues are addressed. City Planner Beekman explained the information provided to the Planning Commission for each case from staff was drafted after much discussion with the applicant. The Planning Commission then reviews the case to see if it is in compliance with City Code. If this is the case, the Planning Commission recommends approval. It is then left up to the Council to approve or deny with further comments or conditions. Chair Larson further discussed design standards for the City in comparison to other communities. He stated businesses were willing to alter their trade package building standards so long as the buildings remain recognizable. Commissioner Stodola questioned if specific design standards could be set for the B-2 zoning district and not for others. City Planner Beekman stated this was allowed. Mayor Grant moved the discussion along to the 2012 Work Plan. The B-2 design standards were discussed. City Planner Beekman stated the Planning Commission could review the standards at an upcoming meeting to see if the standards were still meeting the goals and objectives for the corridor. Councilmember Holden agreed stating new products were available since the standards were created. ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 10 Chair Larson discussed a recent business trip to Irvine, California stating architectural design standards there brought together color schemes and landscaping. City Planner Beekman was in favor of the Planning Commission reviewing the design standards to update the information and provide further direction for future developments.. Mayor Grant requested the Council provide comment on the Commission's work plan. The Council was in favor of the Planning Commission proceeding with the adoption of wetland setbacks within the Zoning Code. Mayor Grant stated the development of a Parks and Open Space Zoning District for the TCAAP and AHATS property could be put on hold until the sites were proposed for redevelopment. Councilmember Holmes felt this item was a low priority. Mayor Grant and Councilmember Holden agreed. City Planner Beekman stated the City's bike parking requirements needed to be reviewed as the parking standards were unclear. Commissioner Holewa commented the number of required bike parking spaces should be clarified within the B-2 zoning district. The goal would be to provide for a more pedestrian friendly community, Councilmember Holmes asked if other communities were addressing bike parking needs. City Planner Beekman explained some cities have a requirement that for every certain number of parking spaces, one bike space was necessary. However, this does not regulate the look of the bike rack, which the City may want to address as well. Councilmember Holden stated there were no bike racks at the City's parks either. She indicated the City may want to address this as well. Councilmember Holmes questioned how the Planning Commission would be proactive in implementing the B-2 zoning plan. Commissioner Thompson indicated this meant the Planning Commission .was actively considering planning cases proposing redevelopment in this area of the City. City Administrator Klaers stated the key word for this item was "proactive," meaning the Commission would take action to promote redevelopment within the B-2 zoning district. Further discussion ensued regarding the opportunities available at the Carroll's property. Councilmember Holden suggested the Planning Commission continue with the proactive implementation of the B-2 zoning plan on an ongoing basis. She requested the Planning Commission also review the B-2 zoning design standards this year. ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19,2012 11 Councilmember Holden questioned if the City should review its parking standards. She felt the City of Arden Hills required too many parking spaces at this time. City Planner Beekman stated parking maximums could be reviewed and discussed. She commented it has been her experience that developers were typically requesting more parking than was required by the City. Mayor Grant commented the Council felt it was a high priority for the Planning Commission to review the B-2 design standards. City Planner Beekman stated aesthetic items could be written into the design standards, such as lighting and color palettes. Councilmember Holmes questioned how many signs were allowed in the residential zoning district. She felt this issue should be addressed as she felt two signs should not be allowed in residential areas. City Planner Beekman explained eight square feet of on-premise signage was allowed in the residential zoning district. One sign could not exceed six square feet. Councilmember Holmes asked if real estate signs could be regulated separately from business signs. Commissioner Hames indicated the sign content could not be regulated. Councilmember Holmes inquired if the residential business signs could become permanent. Commissioner Hames stated this was the case for some home businesses. Councilmember Holmes requested the Commission review this issue further. City Planner Beekman explained she could proceed with a Code amendment with consensus from the Council. She noted the item could be amended at the Council level and did not require a recommendation from the Planning Commission. Councilmember Holden suggested this item be reviewed at an upcoming work session by the Council. The Council was in agreement. Mayor Grant thanked the Planning Commission for their time this evening and for the discussion. D. Public Inquiries Mayor Grant stated he requested this agenda item. He was not pleased with the current process for public comments and inquiries. He suggested the Council consider a wording change which would allow the public three minutes of discussion for items on the agenda. The intent would be ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 12 to allow for limited discussion, while allowing people to speak. He did not want to turn items into public hearings when not properly notified. Councilmember Holmes did not see why there needed to be any limits. She felt everyone had the right to speak. Mayor Grant stated he would write up new language and pass it along to the Council. 3. COUNCIL COMMENTS AND REQUESTS Councilmember Holden stated she was receiving traffic complaints from the businesses along Lexington Avenue and Red Fox Road. She noted this may be a Ramsey County Sheriff s issue as cars are running red lights backing up traffic in the left hand turn lanes. She indicated this was taking place during the evening rush hour. City Administrator Klaers stated he would speak to Ramsey County. Councilmember Tamble commented he attended a seminar on March 61h called Reinventing TCAAP. The event recapped TCAAP's history. Councilmember Tamble noted the U.S. Department of Fish and Wildlife was interested in dredging Round Lake. He stated this recommendation would need to be considered by the City. He explained the topic would be discussed again in April. Mayor Grant stated on April 18th CTV-15 was holding an appreciation event in Arden Hills. He would be in attendance at the event presenting the welcome. City Administrator Klaers indicated an animal control officer has been hired, however the City would need to extend Rick's contract through April. The Council was in favor with this. City Administrator Klaers explained the school superintendent was invited to speak at an upcoming Council meeting. This was scheduled for April 301h and he was requesting 30 minutes to speak. ADJOURN Mayor Grant adjourned the City Council Work Session meeting at 8:49 p.m. Patrick Klaers David Grant City Administrator Mayor