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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