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HomeMy WebLinkAbout08-25-14 Special WS ,It �-AD�EN.�HILLS Approved: October 13, 2014 CITY OF ARDEN HILLS, MINNESOTA SPECIAL CITY COUNCIL WORK SESSION AUGUST 25,2014 5:30 P.M. -ARDEN HILLS CITY HALL 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 at 5:35 p.m. Present: Mayor David Grant (arrived at 5:42 p.m.); Councilmembers Brenda Holden, Fran Holmes, Dave McClung, and Ed Werner Absent: None Also present: City Administrator Patrick Klaers; Director of Finance and Administrative Services Sue Iverson; Community Development Director Jill Hutmacher; Associate Planner Matthew Bachler; and City Clerk Amy Dietl 1. AGENDA ITEMS A. TCAAP Zoning—Discuss Sections 1-5 Community Development Director Hutmacher stated that on August 18, 2014, the City Council held the first of three work sessions with Gateway Planning, the zoning consultant for the TCAAP Master Plan. At the first workshop, Brad Lonberger introduced performance based zoning, reviewed the framework and important elements of the code, and the City Council had an initial discussion regarding the draft of chapters 1 through 5 which are the administrative and process sections of the code. Most of the Council discussion centered on Section 3.3 (development review process) and Table 5.1 (schedule of permitted uses). Community Development Director Hutmacher explained that since August 18, City and County staff, the City Attorney, and the Joint Development Authority (JDA) Attorney have met to discuss the JDA development review and approval process, and how that process must comply with the Joint Powers Agreement(JPA)that was approved by the City Council in December 2012. Staff reported that Joel Jamnik, City Attorney, and Mike Norton, JDA Attorney, were in attendance for a discussion on the JPA and the JDA review process. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—AUGUST 25, 2014 2 Jamnik Jamnik, City Attorney, explained that the JDA would be working to implement the vision of the City based on the Council's approval of the Master Plan and land use plan for the TCAAP site. Councilmember Holden indicated that the City would have no involvement with the development of the site unless the Master Plan or land use plan needed amendments. Mr. Jamnik reported that this was the case. He explained that the City would make all of the policy decisions, while the JDA would be responsible for the development. Further discussion took place regarding how changes could be made to the Master Plan by the City Council. Councilmember Holden questioned how the City and County would handle a development that comes in requesting more than the 10% flexibility standard. She wanted to see future developments follow the City's guidelines. Michael Norton,JDA Attorney, reported that staff was still working to resolve this issue. Mayor Grant believed that density was an issue outside of the 10% standard. Mr. Norton stated that this was the case. Councilmember McClung wanted to make sure that the lines were defined and clear so that staff, the County and future developers understand which decisions the JDA is allowed to make. Councilmember Werner believed it would be difficult to draw the lines. Mr. Jamnik encouraged the Council to be as clear as possible on as many of the situations as possible. Councilmember Holden questioned how future redevelopment or building expansions would be addressed and asked if the JDA would be involved. Mr. Jamnik stated that if an addition or expansion was consistent with the regulations, it could proceed with a normal application through the JDA process. Councilmember McClung reported that the JDA would go away after the last piece of land on TCAAP was sold. Councilmember Holmes believed it would be confusing to have two different sets of zoning codes for the City after TCAAP was fully developed. She suggested that the codes be made as similar as possible. Mr. Norton believed that this could be accomplished in 20 or 30 years after full build-out of TCAAP. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—AUGUST 25, 2014 3 Further discussion ensued regarding the future development and transition away from the JDA in the future. Mayor Grant recommended that the Council not approve sections 1-5 until sections 6-11 are reviewed, as additional changes may be required. Councilmember McClung provided feedback on Section 3.3 noting that he would like it to be more restrictive with less discretion by the JDA. Mayor Grant believed that the 10% standard was a little too high. He wanted to see some checkpoints written into the different development levels. Councilmember Holden expressed concern with Table 3.3 in that it was hard to determine what the City has agreed to. She wanted to see the City set high and low standards for open space. Community Development Director Hutmacher discussed how the 10% minimum standard was viewed by staff for front and side yard setbacks. Mr. Norton recommended that the Council, staff and its consultants further discuss these standards to allow for development to occur without being too permissive. He reported that the JDA would have to follow the 60-day rule. Councilmember Holden suggested that the term "village" not be referred to in Section 1.0 and requested that the term "urbanism" be more clearly defined. She also requested that "per lot" be defined within the code and that Table 3.1 referring to signage be further clarified. Community Development Director Hutmacher noted that Table 3.1 was a table of contents of sorts and would provide future developers with information on where to look for further information on City Code standards. She indicated that if the TCAAP code was silent on any issue, it would revert back to the original City Code. Councilmember McClung suggested that the table include "permit required" on items that only require permits versus land use approvals. He believed that this would provide greater clarity for future developers. Mayor Grant questioned if the zoning regulations should include the number of jobs that were hoped for on the TCAAP site. Community Development Director Hutmacher stated that it would be difficult to regulate the number of jobs as a component of the zoning ordinance. Mayor Grant adjourned the special work session to the regular Council meeting at 6:55 p.m. Mayor Grant reconvened the special work session at 7:45 p.m. Councilmember Holden questioned if there would be sidewalks on each side of every street within TCAAP. She then commented on the expense and maintenance of these sidewalks. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—AUGUST 25, 2014 4 Community Development Director Hutmacher stated that she believed that there would be sidewalks on all streets, but perhaps not always on both sides. Councilmember Holden did not want to see secondary apartments and garage apartments allowed in TCAAP. Councilmember Holmes agreed. Councilmember McClung suggested that if secondary apartments were allowed, that it be only within the Town Center. Community Development Director Hutmacher commented that the secondary apartments allow for additional density and provide an affordable housing option, but that they create challenges in terms of design. The Council could choose to prohibit secondary garage apartments. The Council further discussed this issue and agreed that secondary and garage apartments should be taken out of the proposed zoning regulations. Councilmember Holmes questioned why the code included definitions for manor homes, carriage houses, stacked flats, row houses, triplex, quadplex, urban homes, etc. She suggested that the zoning rules simply address lot size and allow the homes to follow. Community Development Director Hutmacher stated that these definitions were included because they somewhat become a measure for density, and because these are terms builders are using. She reported that staff could work to better define and whittle down the number of definitions. Councilmember Holmes asked if there should be a distinct difference in the zoning standards between the Creek and the Hill neighborhoods. The Council further discussed this matter. Community Development Director Hutmacher noted that lot sizes might differ between the two neighborhoods. Mayor Grant anticipated that the Creek neighborhood would have larger lots along the back side of the development. It was his impression that the Creek neighborhood would be a bit more private and secluded than the Hill neighborhood. Councilmember McClung believed that each neighborhood would have a unique look and feel based on the natural surroundings. Councilmember Holden asked if staff could define neighborhood transition. Community Development Director Hutmacher reported that staff would work with the consultant to compile a definition. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—AUGUST 25, 2014 5 Councilmember Holden questioned if the Council had to include a density level within the Zoning Code. Community Development Director Hutmacher explained that the Council did not have to set a specific number of residential units. The ultimate number of residential units is related to the requirements and restrictions established in the Zoning Code. City Administrator Klaers stated that the Council would likely be approving zoning that would have a density range within it. Community Development Director Hutmacher indicated that the Council would need to reevaluate density once the remaining zoning chapters were available. Mayor Grant commented that as the plan stands, he cannot support it as he does not want units built on top of units within TCAAP. He wanted to greater understand what would fit on the site. Community Development Director Hutmacher thanked the Council for their input and noted that this item will be coming back to the Council for additional discussion. B. State of the City Topic Discussion Community Development Director Hutmacher stated that the City Council has scheduled State of the City events as follows: • Thursday, September 18, 7:30—9:00 am at Flaherty's Arden Bowl • Tuesday, September 23, 6:30— 8:00 pm at City Hall Event promotion is underway and includes: a. Shoreview-Arden Hills Bulletin advertisements b. City newsletter announcement C. Announcements at City Council meetings d. Website business news and home page e. Cable Bulletin f. City-wide post card mailing g. Business visits by EDC members h. Facebook and Twitter announcements Community Development Director Hutmacher commented that in order to prepare for the event, the City Council is requested to identify presentation topics and speaker assignments. Potential presentation topics include: • TCAAP Redevelopment Project o Master Planning Process o Rice Creek Commons renaming o Remediation, infrastructure and development schedule ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—AUGUST 25, 2014 6 • Snelling Avenue BRT o Project route and schedule o BRT and amenities o Proposed extension • County Road E Improvements o Project schedule o Project details o Highway 51/Snelling Avenue Bridge • Development Projects o Lexington Station o Arden Flats o Gradient Financial • Recycling Program o Change to Single-Sort and Carts (2015) o Options and resources for Business Recycling • Transportation Improvements o Round Lake Road o I-35W/Highway 96 bridge and trail o I-35W/County Road F bridge and trail o Lexington Avenue/County Road F • Arden Hills Foundation Update Staff noted that a MnDOT representative has been asked to attend the event to answer questions on transportation projects. Councilmember Werner believed that BRT would be an important topic to address. Councilmember Holden discussed the Rice Creek Commons name for the TCAAP site. She reported that she would not be referring to the site by this name. Councilmember McClung reported that he would not be able to attend the State of the City meeting on Thursday morning. Councilmember Holmes suggested that the recycling program not be discussed. Councilmember McClung believed that residents still had questions and suggested that it remain a topic for discussion. Mayor Grant recommended that the bridges in Arden Hills be addressed along with redevelopment of the Lexington Station area. He was in favor of a transportation update being provided by MnDOT. C. Preliminary 2015 Budget City Administrator HIaers stated the State Legislature has changed the certification date of the proposed maximum tax levy from September 15 to September 30. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—AUGUST 25, 2014 7 City Administrator Klaers explained that in preparation for adoption of the preliminary tax levy at the last meeting in September, the staff memo in the agenda packet addresses the following information: residential property values, discussion on preliminary levy, salary assumptions being used to prepare the preliminary budget, a discussion on EDA funding, and structural changes the Council made last year. City Administrator Klaers stated that according to information provided by Ramsey County in May of this year, the median home value in Arden Hills will increase from $264,700 for 2014 taxes, to $295,100 for 2015 taxes which is an 11.5% increase in value compared to the county average increase of 9.4%. In order to evaluate the tax impact to the residential property owner, two things need to be taken into account: the decrease in fiscal disparities (decrease of 2.4%) and the change in the taxable value (increase of 6.4% after exclusions). A table illustrating the impact to the residential property owner due to the decrease in fiscal disparity dollars and changes in the assessed market value was included in the agenda packet. Assuming no City levy change, the home owner that has a median valued home (value going from $264,700 to $295,100) will see their City taxes going up by$46.33 or 6.6%. City Administrator Klaers reported that the City's share of Fiscal Disparities has decreased, and the City's Tax Capacity has increased, which results in a 5.8% decrease in the tax rate. City Administrator Klaers indicated that the City's entire tax levy goes for General Fund expenditures. For the City of Arden Hills, the property tax levy accounts for approximately 79% of the General Fund revenues. Staff reviewed the City's property tax levies history. City Administrator Klaers stated that the 2015 preliminary budget is currently being prepared assuming a 2% wage adjustment for non-union staff and a 1.5% wage adjustment for union staff. In surveying surrounding communities, most have included a 1.5% - 3.0% COLA increase in their preliminary estimates. This assumption has a total effect on the General Fund of$21,167. City Administrator Klaers commented that Public Safety costs are set to increase by 6.54% for Fire and 4.5% for the Sheriff's contract. This alone would amount to a $77,002 increase in the budget or a levy increase of 2.4%. In 2014 the City Council made a structural change to put Park and Street maintenance items in the General Fund operating budget for those departments and discontinue the transfer of $200,000 from the General fund to the PIR. Capital Funds were discussed at the June meeting during the Capital Improvement Plan(CIP)review. Director of Finance and Administrative Services Iverson stated the City has had previous discussion about the EDA Fund. Staff recommends that a funding source be found for this fund in the future as the current funding source from the TIF District and the conduit debt fees will not be ongoing. Staff recommends that the Council consider recommending that the EDA establish a levy to fund this activity. This would be shown on the property tax statements as a special taxing district; however a preliminary levy would have to be certified by September 15, 2014, to the County as it is a special taxing district. Staff has prepared a number of tax levy scenarios for discussion in evaluating setting a levy. She reviewed these scenarios in detail with the Council. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—AUGUST 25, 2014 8 Director of Finance and Administrative Services Iverson commented that a final levy is established and certified in December. Once a preliminary levy is established, the amount can be reduced, but it cannot be increased. In order to proceed with budget preparation, it would be helpful to have additional Council input. Staff can prepare a full set of budget documents for Council review by next week and for discussion at a future work session. Director of Finance and Administrative Services Iverson noted that the upcoming work session calendar is pretty full with TCAAP items and that a non-Monday meeting to discuss the budget may be necessary. Councilmember McClung reported that he was willing to support a 2% levy increase as a maximum. Councilmember Holden was in favor of holding an EDA meeting to further discuss the budget. Mayor Grant recommended that the EDA meet on September Stn 2. COUNCIL COMMENTS AND STAFF UPDATES None. ADJOURN Mayor Grant adjourned the special City Council work session at 9:07 p.m. Amy Dietl David Grant City Clerk Mayor --AEN MILLS Request for Special City Council Work Session A special meeting may be called by the Mayor or by any two Councilmembers. Topics for meeting: A. Discuss Sections 1-5 B. State of the City Topic Discussion C. Preliminary 2015 Budget Requested Date: 08/25/14 Requested time: 5:30 PM Open meeting X Closed meeting Signature of person(s) making request: hm'J'Z� 08/20/14 Mayor or Councilmember Date Councilmember Date -This section to be completed by City staff- Date received: 9 / aa / I y Date meeting to be held: 08/25/14 Time of meeting: 5:30 PM Location: City Hall All necessary posting and notices have been completed. ►H Signature of Clerk Date City of Arden Hills * 1245 West Highway 96 Arden Hills,MN 55112-5743 Phone 651-792-7800 * Fax 651-634-5137 www.cityofardenhills.org