HomeMy WebLinkAbout05-13-13-SWS -- xQEN HILLS
Approved: June 24, 2013
CITY OF ARDEN HILLS, MINNESOTA
SPECIAL CITY COUNCIL WORK SESSION MEETING
MAY 13,2013
6:00 P.M. -ARDEN HILLS
CALL TO ORDER/ROLL CALL
Pursuant to due call and notice thereof, Mayor Pro-Tem Holmes called to order the special
City Council work session meeting at 6:00 p.m.
Present: Mayor David Grant (arrived at 6:20 p.m.); Councilmembers Brenda
Holden, Fran Holmes, Dave McClung, and Ed Werner
Absent: None
Also present: City Administrator Patrick Klaers; Community Development Director Jill
Hutmacher; Public Works Director Terry Maurer; Community Development Intern
Matthew Bachler; City Attorney Joel Jamnik; Prosecutor Elliott Knetsch; and Deputy
Clerk Amy Died
1. APPROVAL OF AGENDA
The Council accepted the agenda as amended moving Item 2B before 2A.
2. AGENDA ITEMS
B. Discuss Country Financial Zoning Amendment Request
Community Development Director Hutmacher stated that the City has received a request for a
Zoning Code amendment from Country Financial to allow for higher education use in the B-2
zoning district with a Conditional Use Permit. The property is located at 2 Pine Tree Drive and
includes a 5-story, 227,138 square foot multi-tenant building. Country Financial has vacated
much of the building (62% is currently vacant) and is currently marketing the building for sale or
lease.
Community Development Director Hutmacher explained that Country Financial has received a
request for leased space from Bethel University for 26,000 square feet for administrative offices,
general and specialized classrooms, meeting rooms, common spaces and other general educational
purposes. Most classes offered at this location would be held between 5:30 p.m. and 10:00 p.m.
ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 13, 2013 2
Monday through Thursday. There would also be limited use of the leased space during the hours
of 8:00 a.m. and 10:00 p.m. Monday through Saturday.
Community Development Director Hutmacher reported that according to information provided
by Country Financial, Bethel students, guests, faculty and administration will not exceed four per
1,000 square feet leased during normal business hours and no more than eight per 1,000 square
feet after normal business hours. It was noted the property currently has approximately 4.29
parking stalls per 1,000 building square feet. No additional parking is proposed.
Community Development Director Hutmacher indicated that the City approved a similar
zoning amendment request on May 22, 2006, for Rob Davidson for property owned at 1212 Red
Fox Road in the B-4 zoning district. In that situation, the Council determined that higher
education and special education uses were consistent with the purpose of the B-4 district and a
Special Use Permit was approved.
Community Development Director Hutmacher commented that she has been working with the
Economic Development Commission on an analysis of commercial and industrial property in
Arden Hills. Preliminary results have shown that, although the overall level of office vacancy in
Arden Hills (17.9%) is comparable to vacancy levels in the northeast Twin Cities submarket
(18.8%), the office vacancy rate in the B-2 District is approximately 45%. She noted the vacant
space at Country Financial represents more than 60% of the office vacancy in the B-2 District.
Community Development Director Hutmacher requested the Council consider whether high
education is an appropriate use for office space in the B-2 District and provide staff with guidance
on how to proceed with this issue.
Councilmember McClung asked if there would be a corresponding decrease in the property tax
value with Bethel moving in or if Country Financial would retain ownership of the property. He
expressed concern with expanding institutional property in the City of Arden Hills.
Community Development Director Hutmacher stated that her understanding is that a tenant in
a building does not change the property tax status of the building. However, there may be a
process for a tax-exempt user to claim a rebate for their portion of the building.
Mayor Pro-Tem Holmes questioned if the City would approve the tax-exempt status.
Randy Hagerty, Country Financial, explained that this approval process was actually approved
by the County.
Councilmember Holden inquired if a Special Use Permit could limit the hours of operation to
evenings.
Community Development Director Hutmacher stated that the applicant is requesting a
Conditional Use Permit and the City could add conditions on the use. She explained that the
property is an office building and parking is available from 8:00 a.m. to 5:00 p.m. for office uses.
Discussion ensued regarding onsite parking at the office building.
ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 13, 2013 3
Councilmember Werner asked which floors Bethel was interested in occupying.
Mr. Hagerty did not have an answer to this question.
Councilmember Holden stated this is a good use for the property and noted she would think
further about special conditions for the use.
Councilmember McClung indicated he is not opposed either, but did have concerns with tax
base issues. He wants clarification on this item before making a final decision.
Mayor Pro-Tem Holmes is interested in knowing where Bethel will locate in the Country
Financial building. She requested staff investigate this matter as well as the other questions
discussed earlier and report back to the Council at a future meeting.
Mr. Hagerty thanked the Council for providing feedback on this issue. He looks forward to
discussing the matter further with the City as he wants to see this building fully utilized.
A. Discuss Enforcement of the Rental Housing Registration Program
Community Development Director Hutmacher stated that in 2011 and 2012, staff worked with
the previous City Attorney to thoroughly evaluate the rental registration program and determine
whether the City could take additional actions to enforce the rental registration program and
mitigate or prevent related code enforcement issues.
Community Development Director Hutmacher explained that as of January 1, 2013, the City
has a new City Attorney. The Council requested that the City Attorney review the City's rental
registration ordinance and code enforcement practices to determine whether additional measures
should be taken.
City Attorney Jamnik introduced himself to the Council and noted that he has reviewed the
City's ordinances. He agreed with the previous attorney's conclusions. He stated that the City
has a sound registration ordinance. He explained there are no material differences between a
registration and a licensing procedure. He stated the enforcement protocols are soundly laid out.
City Attorney Jamnik indicated that communication with property owners regarding
expectations is essential for City staff. He encouraged staff to adopt a sound communication
process with effective follow through on citations. He has no changes or recommended revisions
for the current ordinance. He stated it will be difficult for the City to assure 100% compliance
from all rental property owners.
Mayor Grant arrived at the meeting at 6:20 p.m.
City Administrator Klaers commented that the City only has a few problem rental properties
and each is registered. The City is just having difficulty with them being compliant.
Mayor Grant stated that the key to compliance will be consistent, repeated enforcement by the
City.
ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 13, 2013 4
Councilmember Holmes agreed and encouraged the City to use its enforcement power to keep
rental properties in line. She wanted to be assured that rental units were not allowed to house six
students.
City Attorney Jamnik explained that he has reviewed citation letters sent to rental properties and
noted staff is doing their part. He then discussed how court action could be taken by the City.
Elliott Knetsch, Prosecutor at Campbell Knutson, recognized that over occupancy by college
students is a concern. He discussed in detail a case he handled recently in Lakeville. He noted
that for the most part, the City is gaining compliance and with a good enforcement program, the
City should expect to achieve 90% compliance in most cases.
Mayor Grant thanked Mr. Knetsch for the example but stated his hope is for rental properties in
Arden Hills to become more conforming so matters do not escalate to a criminal case level.
Councilmember Holden indicated that Bethel and Northwestern were willing to provide the City
with names and addresses for students with local addresses. She noted there is a home in her
neighborhood that has been advertised as a five bedroom home even though the home is a rambler
with only two bedrooms on the main level. She is concerned that there are students living in the
basement without proper egress windows.
Mr. Knetsch discussed how the Court may handle this type of situation. He noted that a search
warrant would need to be obtained for the City to inspect the interior for life safety or other issues.
City Attorney Jamnik commented that if the City is aggressive in its enforcement, commitment,
and follow through, success is more likely. However, in cases where property owners are not
responsive, excessive occupancy is a very difficult issue to prove.
Councilmember Holden asked how complaints are currently handled by staff.
Community Development Director Hutmacher indicated that the Building and Code
Enforcement Inspector handled most complaints.
City Administrator Klaers stated that he handled a complaint recently, and he documented the
phone calls and emails. In addition, information was noted regarding the actions taken by the
Ramsey County Deputies and the tickets that were issued.
Councilmember Holden expressed frustration regarding how to respond to residents with
complaints about rental properties.
Community Development Director Hutmacher explained that staff does not receive a great deal
of complaints regarding rental properties. She stated that the only property that has been a major
concern has been the home on Eide Circle.
Mayor Grant asked if the Council wanted to have a standing item on all future work session
agendas to discuss problem properties. He indicated that this would allow staff to update the
Council on the progress that is being made.
ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 13, 2013 5
Community Development Director Hutmacher commented that she receives a report from the
Building and Code Enforcement Inspector on a regular basis regarding all of the open complaint
cases. It is her understanding that the majority of complaints are handled within a couple of
weeks. She noted that there are not many problem properties.
Councilmember Holmes stated that her only concern is with one particular rental property.
Mayor Grant stated that the Council and staff are not in total agreement on how much of a
problem rental properties are in the community. He encouraged the Council and staff to come
together on this issue.
Councilmember McClung stated that he sees this as a communication issue between the Council
and staff. He suggested that open and closed code enforcement issues be brought to the Council's
attention on a regular basis as this will make the Council aware of problem areas.
City Administrator Klaers encouraged the Council to make staff aware of problem properties to
assure that letters are sent and that the proper follow-up is done.
Councilmember Holmes inquired if the City has a set policy for handling complaints and asked
if letters are sent.
Community Development Director Hutmacher reviewed the internal policy that is followed by
staff when a complaint is received. She stated that an inspection is done and a determination is
made to see if the complaint is valid. She noted that letters are sent to properties in violation.
Mayor Grant is in favor of Councilmember McClung's idea to have staff create a spreadsheet
of code enforcement issues with problem properties so the information can be reviewed briefly by
the Council at work session meetings.
Councilmember Holden commented that this information would greatly assist her in speaking to
residents regarding the actions being taken by the City.
Mayor Grant agreed stating that he wants to see the City being proactive on enforcement issues.
Councilmember Werner requested to see a list of the 84 registered rental properties in the City
of Arden Hills.
ADJOURN
Mayor Grant adjourned the City Council work session at 6:59 p.m. and noted that the work
session will reconvene after the regular City Council meeting.
RECONVENE
Mayor Grant reconvened the City Council work session meeting at 9:04 p.m.
C. Discuss Snelling Avenue North Street Project
ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 13, 2013 6
Public Works Director Maurer stated that there are a few streets in the City that have had a
stripping problem with the top layer of bituminous paving separating from the base course. This
is an issue that has occurred statewide and MnDOT has been working on trying to pinpoint the
cause so it can be eliminated in the future. MnDOT has suggested that the solution to the problem
when it occurs is milling and patching of the stripped areas.
Public Works Director Maurer indicated that staff has been working to address the problem
through the annual street maintenance budget. Last year, the City tackled Arden Oaks Drive
through a combination of bituminous patching and using a filler material for the smaller/shallower
areas. This year, the City plans to mill and patch the stripping on Tiller Lane so it can be ready for
a sealcoat in a subsequent year.
Public Works Director Maurer explained that one of the worst streets with the stripping
problem in the City's system is Snelling Avenue North. He noted that almost 50% of the road
surface needs to be milled and patched. Patching this much of the surface area is not cost
effective and cannot be accomplished without leaving a very rough driving surface.
Public Works Director Maurer commented that another solution is to do a mill and overlay
project for Snelling Avenue North and fund it with MSA dollars. The City has estimated the cost
of this approach to be between $125,000 and $140,000. This represents about 10% of our
currently available MSA funds. One other benefit of this approach is that the City could restripe
the road with the centerline moved slightly to the west to allow on-street parking on the east side
of the street. It was noted that if the Council were to approve this approach, the work could be
accomplished this fall. Staff requested the Council discuss the matter and provide direction to
staff.
Councilmember Holden asked if the Arden Oaks Drive project was assessed to the homeowners.
She expressed concern with assessing for the proposed project if Arden Oaks Drive was not
assessed.
Public Works Director Maurer explained that this project was not assessed back to the
homeowners as the City's crews were used to complete the work. He noted that a mill and
overlay project would require much more work and that Snelling is an MSA route.
Mayor Grant questioned the last time homeowners had been assessed along Snelling Avenue.
Public Works Director Maurer indicated that there has not been a mill and overlay on Snelling
Avenue in the past 20 years. He stated that the roadway has been sealcoated, but no major
reconstruction work has been completed.
Further discussion ensued regarding the reconstruction work completed on Katie Lane.
Mayor Grant inquired which portion of Snelling Avenue would be worked on.
Public Works Director Maurer explained that the portion of North Snelling Avenue from
Highway 96 to Briarknoll is what needs to be fixed.
ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 13, 2013 7
Councilmember Holmes questioned why this project would not be assessed to the benefiting
property owners.
Public Works Director Maurer commented that the maintenance needed on this roadway is at a
level above patching and sealcoating. He reported that 50% of the roadway will need to be
patched, which led him to recommend the mill and overlay project. He noted that the roadway is
currently 20 years old, but that there was a problem with the original mix. He stated that the road
should not require this level of repair given the traffic levels along this MSA route. He stated that
he does not recommend the use of MSA funds unless the project is absolutely necessary.
Councilmember Holden asked if a sidewalk or striped bike path could be added to get pedestrian
traffic more easily to the park.
Councilmember McClung indicated that drivers along this roadway are going fast and pedestrian
safety should be considered. He recommended the entire roadway and the parking spaces near the
park be striped.
Public Works Director Maurer stated that this issue could be reviewed further by the Council
after the plans for the roadway are drawn up by staff.
The Council supported staffs recommendation for the mill and overlay project for North Snelling
Avenue and the use of MSA funds.
Public Works Director Maurer explained that he will request bids and report back to the
Council at a future meeting.
3. COUNCIL COMMENTS AND STAFF UPDATES
City Administrator Klaers asked if the Council is available at 6:00 p.m. on May 28th for a work
session meeting to discuss transit planning.
Councilmember McClung stated that he is not available that evening.
Mayor Grant was uncertain if he would be able to attend.
City Administrator Klaers reviewed the proposed agenda for the May 20th work session
meeting. He requested the Council respond to the email he sent regarding this meeting and
complete the survey prior to May 20th. He noted that the two homeowners with issues on their
utility bills be pushed back to the May 28th or June 17th meeting.
Mayor Grant noted that the City received another letter from Paul Johnson regarding the Vikings
Stadium. This is the eighth or ninth letter from Mr. Johnson as he is still lobbying to have the
stadium located in the City of Arden Hills.
ADJOURN
Mayor Grant adjourned the City Council work session meeting at 9:44 p.m.
ARDEN HILLS CITY COUNCIL WORK SESSION—MAY 13, 2013 8
Patrick Klaers David Grant
City Administrator Mayor