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HomeMy WebLinkAbout09-22-14 Special WS ,.It I ,-AIZEN�HILLS Approved: November 10, 2014 CITY OF ARDEN HILLS,MINNESOTA CITY COUNCIL WORK SESSION SEPTEMBER 22, 2014 6:00 P.M. - ARDEN HILLS CITY HALL CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the City Council work session at 6:17 p.m. Present: Mayor David Grant; Councilmembers Brenda Holden, Fran Holmes, Dave McClung (left at 8:30 p.m.), and Ed Werner(left at 8:00 p.m.) Absent: None Also present: City Administrator Patrick Klaers; Director of Finance and Administrative Services Sue Iverson; Public Works Director Terry Maurer; Community Development Director Jill Hutmacher; City Planner Ryan Streff; Associate Planner Matthew Bachler; and City Clerk Amy Dietl 1. AGENDA ITEMS A. TCAAP • Discussion with Single-Family and Multi-Family Developers Community Development Director Hutmacher indicated that the TCAAP regular and special meeting schedule has been updated, and noted that an additional special work session has been added on November 3, 2014, to be held after the Joint Development Authority meeting. If needed, additional meeting dates may include December 22 and 29, 2014. The schedule currently calls for the following: September 29, 2014, Special Work Session at 5:30 pm, Community Room • County Road I and Thumb Road Design Review(Infrastructure) • Zoning Definitions (Chapter 4) • Discuss Chapters 6-7 (Building and Site Development Standards, Building Design Standards) October 13, 2014, Special Work Session at 5:30 pm, Community Room • JDA Governance and Approval Process • Park Dedication Ordinance Discussion ARDEN HILLS CITY COUNCIL WORK SESSION—SEPTEMBER 22, 2014 2 • Discuss Chapters 1-5 October 20, 2014, Regular Work Session at 5:00 pm, Council Chambers • Discuss Chapter 11 (Sign Standards) October 27, 2014, Special Work Session at 5:30 pm, Community Room (Note: EDA meeting at 6:00 pm—Work Session may be continued after Regular Meeting) • Water and Sewer System Update (Infrastructure) • Discuss Chapters 9-10 (Open Space Standards, Streetscape and Landscape Standards) November 3, 2014, Special Work Session at 6:00 pm, Council Chambers • Workshop with Gateway Planning o Discuss Chapter 8 (Street Design Standards) and Attachments o Discuss Cumulative Comments on TCAAP Zoning o Discuss Revised Master Land Use Plan Map November 10, 2014, Special Work Session at 5:30 pm, Community Room • Stormwater System Update (Infrastructure Team) November 17, 2014, Regular Work Session at 5:00 pm, Council Chambers • Final Workshop with Gateway Planning o Review entire document o Provide direction on remaining comments o Review complete Master Plan November 24, 2014, Special Work Session at 5:30 pm, Community Room • Spine Road/County Road I/Thumb Road Update (Infrastructure) • Final review of draft zoning document, future land use map, and Comprehensive Plan amendment in preparation for public hearings at December 3, 2014, Planning Commission Meeting December 15, 2014, Special Regular Meeting at 7:00 pm, Council Chambers • Approve Final Master Plan • Approve TCAAP Zoning • Approve Future Land Use Map • Approve Comprehensive Plan Amendment December 22, 2014, Special Work Session at 5:30 pm, Council Chambers • If necessary to review TCAAP zoning December 29, 2014, Regular Meeting at 7:00 pm, Council Chambers • If necessary to approve TCAAP zoning January 11, 2015, Special Work Session at 5:30 pm, Community Room • Preliminary Plat Review(Infrastructure Team) January 25, 2015, Regular Meeting at 7:00 pm, Council Chambers ARDEN HILLS CITY COUNCIL WORK SESSION—SEPTEMBER 22, 2014 3 • Receive Infrastructure Feasibility Report(Infrastructure Team) Staff anticipated that additional regular and special work sessions will be scheduled to discuss TCAAP issues. Future meeting topics will be defined as those dates draw nearer. Community Development Director Hutmacher stated that City staff, County staff, and financial consultants have met with residential developers to get feedback on land values, absorption rates, desired amenities, lot sizes, and other issues. Len Pratt, Pratt Homes, and Daren Laberee and Rick Packer, Mattamy Homes, are present to share their experiences in residential building. Stacie Kvilvang, Ehlers & Associates, reviewed with the Council the For-Sale Developer feedback that she has received to date. She provided the Council with a number of visuals to provide greater perspective on the proposed lot size and style of homes that could be built within the TCAAP neighborhoods. She explained that people buy communities and not homes. In addition, retail amenities are important. Len Pratt, Pratt Homes, recommended that each of the neighborhoods have two entrances. He stated that the entrances to neighborhoods are very important and should be welcoming. He believed that the Highway 96 entrance was critical to the adjacent neighborhoods as it would hold higher-end housing. He did not recommend putting retail in this area unless it was really well done. He believed that offices and businesses would be a better fit along Highway 10. Discussion ensued regarding the vapor issue and where residential homes could or could not be built on TCAAP. Daren Laberee, Mattamy Homes, agreed with Mr. Pratt and stated that homeowners would not want to drive through an industrial or a business/office park to reach their house. If the land use is not residential, then high quality street landscaping is needed. The "driving experience" has to be pleasant. A monument sign would help welcome people into the area. Councilmember McClung hoped that the Gateway Overlay District would provide a nice entrance to TCAAP. Mr. Pratt suggested that this Gateway Overlay District be extended all the way to the adjacent neighborhood. Councilmember Holden commented that another option may be to flow from higher density residential to the lower-density residential neighborhood. Mayor Grant requested further comment on the unique types of housing styles that the builders could see on the TCAAP site. Rick Packer, Mattamy Homes, stated that there is a need for higher end, small footprint condos or townhomes for empty nesters who spend their winters somewhere other than in Minnesota. These units are called detached multi-family and can be built on a 50 foot lot. These units would be maintained by an association and come with a higher price point. ARDEN HILLS CITY COUNCIL WORK SESSION—SEPTEMBER 22, 2014 4 Councilmember Holden asked how many square feet this type of unit would have. Mr. Laberee explained that these units would be approximately 2,700-2,800 square feet. Councilmember Werner inquired if this was single story or two story living. Mr. Laberee reported that this was single story living, but that the units do have basements. Councilmember Holden questioned if alleys would be a good fit for TCAAP. Mr. Laberee stated that he has not done alleys with this type of product anywhere locally. He explained that alleys create very small yards and have extra construction costs with roadways on both sides of the home. Community Development Director Hutmacher discussed the current City Code proposed and stated that lots narrower than 50 feet would need a rear loading garage. However, the product referenced would be allowed to have a front loading garage. Mr. Pratt reviewed an empty nest product type that he was building and noted that their resale has been favorable. He stated that detached villas in the $400,000 price range were doing well. Councilmember Holden feared that this style of neighborhood would be similar to Woodbury and she did not support these types of neighborhoods. She was concerned that homeowners in the Hill neighborhood would be looking down on rooftops. Ms. Kvilvang explained that the City could have several different builders creating different styles of units to create variety. Councilmember McClung did not want to see numerous rows of beige houses either. Mr. Laberee discussed the Mattamy Homes policies to create diverse housing styles. He discussed the numerous color options available to homeowners that would assist in creating variety. Mr. Pratt urged the Council to encourage variety through both color and architecture. Mayor Grant questioned the preferred densities in the Town, Hill and Creek neighborhoods. Mr. Laberee anticipated that the Hill neighborhood (66 acres) would have three units per acre and would be all single-family homes. He did not recommend multi-family for this neighborhood given the topography. He explained that their bestselling lots were 65 foot wide with a 50 foot building pad. This fits in with the 2.7 units per acre mark. Mr. Pratt anticipated that the homes in this neighborhood would be customized to meet the needs of the clientele. Discussion shifted to parks and tot lots within the proposed neighborhoods. ARDEN HILLS CITY COUNCIL WORK SESSION—SEPTEMBER 22, 2014 5 Mr. Laberee recommended that the lit park be shifted closer to the spine road and businesses. He believed that a lit ball field would not fit well into the proposed neighborhood and could hamper values and desirability. He supported the smaller neighborhood park but suggested it be more centrally located. Ms. Kvilvang questioned what size pocket parks developers placed in neighborhoods. Mr. Laberee stated that his preference is for the City to complete the park. He stated that if an HOA were to complete the park, this would raise dues and could make the neighborhood less desirable. He suggested that the two proposed parks be combined into one. Mr. Pratt suggested that a larger park be centrally located in the Hill neighborhood. Community Development Director Hutmacher explained that the proposed park location was due to the slope and topography of the neighborhood. Mayor Grant asked if there was an advantage to place more homes per acre in a neighborhood for a developer. Mr. Pratt stated that 10 units to the acre were for $200,000 homes, while a lower density would increase the price of the home. He believed that the City would need a variety of housing and wide range of pricing on TCAAP. Mr. Laberee commented that people were paying more for single family homes today in most communities than for townhomes due to land prices and the cost of construction. He did not believe it would be in the City's best interest to put a large number of units on each acre. Ms. Kvilvang stated that based on the standards set by the City, builders would offer a variety of lot sizes and types of housing. Councilmember Holden indicated that originally it was thought that 1,700 units of housing would have to be placed on TCAAP. However, maybe 1,000 units would bring in the same value when selling the land. Ms. Kvilvang indicated that the builders would have to go in and do their calculations based on the land price before a determination could be made. Mayor Grant anticipated that density numbers would be driven by the Town neighborhood. Mr. Pratt questioned what was driving the 1,700 units. Ms. Kvilvang reported that the City and County have been discussing this number along with the overall expense to bring basic services to the property, while also cleaning the property. Councilmember Holmes explained that the Council has not reached consensus or agreed to 1,700 units. ARDEN HILLS CITY COUNCIL WORK SESSION— SEPTEMBER 22, 2014 6 Councilmember Holden questioned how the Council could ensure that the site had a variety of home styles and types. Mr. Laberee recommended that the Council stay away from percentages or actual numbers. Instead, he suggested that the Council write their desires into the introductory paragraph of the objective. This would provide the City with a stance and position on how the property was to develop, while still allowing for flexibility. Mr. Pratt believed that a variety of builders would also enhance the site by offering numerous home products. Councilmember Holmes asked if all of the homes in the Creek would have three car garages and larger homes. Mr. Laberee stated that this neighborhood has the largest capacity for premium lots and for this reason, justified a lower density. He recommended that the Council not pick a product for this neighborhood but instead, allow the market to drive the home product, style and architecture of the homes. Mr. Packer encouraged the City to make the neighborhood design extremely efficient to reduce future development costs. He suggested that the one-sided roads be removed. Councilmember Holden asked if each of the houses within the Creek neighborhood would have a sidewalk in front of them. Mr. Laberee anticipated that sidewalks would be on one side of the street for this neighborhood. Councilmember Holden expressed concern with the future maintenance of these sidewalks. Mr. Pratt believed that the interconnectivity and walkability of the entire TCAAP development should be considered. One of the top priorities for homeowners is a trail system. Further discussion ensued regarding lot widths and setbacks along with the coordinating house styles. Mr. Laberee provided comment on architecture that could be used to have homes with non- dominant garages. Mr. Pratt stated that the setbacks should vary depending on the housing types. For example, row homes or townhouses work well closer to the streets than larger single family homes. Councilmember Holden questioned how snow removal worked with smaller setbacks and homes closer to the street. Mr. Laberee commented that the snow would be stored in the right-of-way. He then discussed the spacing and distance for sidewalks and boulevard trees. ARDEN HILLS CITY COUNCIL WORK SESSION— SEPTEMBER 22, 2014 7 Councilmember Holden asked if there was a market for high-end condos. Mr. Pratt stated that condos were extremely difficult in this market, especially with how tricky liability insurance and lawsuits have become. Community Development Director Hutmacher explained that a multi-family developer was invited to this meeting, but the developer was unable to attend. She described how senior living developments differed from condominium complexes. Mayor Grant commented that condos could possibly be built near retail uses or near the Town Center. Councilmember Holden requested further information on what would be built in the Neighborhood Transition zoning district. Community Development Director Hutmacher stated that 34 acres was set aside for neighborhood transition housing. Mr. Laberee believed that detached townhouses, row houses, and cottage homes would fit this area nicely. He encouraged the Council to visit Silver Lake Village and Apache Plaza as they had a great mix of uses between retail, commercial, office, park and housing. Councilmember Holden inquired if 8-foot fences would be allowed in neighborhoods. Community Development Director Hutmacher stated that fences were only allowed to be six- feet in height. Mayor Grant thanked the developers for attending this evening and for sharing their expertise with the Council. • Council Feedback on Zoning Schedule and September 15th Work Session City Administrator Klaers noted that a TCAAP work session was being scheduled for November 3rd after the JDA meeting. Councilmember McClung stated that he would be leaving the meeting in five minutes. He discussed his upcoming work schedule and noted that he would miss several meetings due to out- of-town travel. Community Development Director Hutmacher discussed the amount of work that was still required on the Zoning Code. B. 2015 Budget and Tax Levy Director of Finance and Administrative Services Iverson stated that in preparation for adoption of the preliminary tax levy at the last meeting in September, staff previously distributed to the City ARDEN HILLS CITY COUNCIL WORK SESSION— SEPTEMBER 22, 2014 8 Council the proposed 2015 budget and tax levy information for discussion. This was handed out to all Councilmembers at the September 15, 2014, work session. An additional handout was distributed at the meeting that detailed staff salaries. The Council indicated that this salary data did not need to be included in the budget document. Director of Finance and Administrative Services Iverson explained that a final levy is established and certified in December. She indicated that once a preliminary levy is established, the amount can be reduced, but it cannot be increased. In order to proceed with preliminary budget preparation, it would be helpful to have additional Council input. Councilmember McClung reported that the highest levy increase he could support in December would be 2%. He encouraged the Council to find reductions in the budget. City Administrator Klaers commented that the current budget proposed a 4.5% levy increase and $35,000 of reserves being used. He stated that the levy increase equaled $148,000 and covered the public safety increase, the EDA transfer and the increase to street maintenance materials. Councilmember Holmes did not support an expense of$30,000 to the EDA budget. She saw no justification for this expense. Mayor Grant believed that at some point the EDA would need funds to complete projects. The Council had to determine how these economic development projects would be funded. Director of Finance and Administrative Services Iverson stated that the transfer of these funds assist in covering staff time spent on economic development activities. Councilmember Holmes questioned why the City was putting money into employees' HSA accounts. Director of Finance and Administrative Services Iverson indicated that using HSA accounts was a Council policy decision made in 2007, becoming effective in 2008. Previously, the difference between single and family coverage was put into Employee's ICMA-RC 457 plan accounts. At that time, it was determined that a higher deductible plan would lower costs for the City. In 2009, as an incentive for making the transition to such an insurance plan, the difference between the premium and the City's contribution was put into their HSA accounts. Mayor Grant stated that the Council could also decide to change this policy. Councilmember Holden and Councilmember Holmes were in favor of changing this funding policy. Further discussion ensued regarding the amount spent on individual and family insurance policies. Councilmember Holden wanted to see the exact amounts that were being paid monthly for individual and family coverage. ARDEN HILLS CITY COUNCIL WORK SESSION—SEPTEMBER 22, 2014 9 Director of Finance and Administrative Services Iverson apologized for the delay in getting the insurance information to the Council and stated that her reduced staffing levels have created delays in completing some of her tasks. She reported that the changes made to the medical plans have kept costs from going up over the past four or five years. Councilmember Holden wanted to see the amounts paid into the HSA's for the past five years. City Administrator Klaers explained that a policy change to the City's contribution to HSA plans amounts to a reduction in employees' pay. All of the recently hired employees understood that this policy of an HSA contribution by the City was in place before they started to work for the City. Councilmember Holden asked how many employees were on single coverage. Director of Finance and Administrative Services Iverson stated that four employees were on family coverage and the rest have single coverage. She reviewed her cost analysis noting that the premiums for the employees' policies were very high and this kept the City's expenses low. Councilmember Holmes supported a 5% levy increase. Councilmember Holden also supported a 5% levy increase as she wanted to see funding set aside for needed repairs to Snelling Avenue. Mayor Grant supported a 4% levy increase. Discussion shifted to pay and step increases for City employees. Councilmember Holden understood that employees would receive step increases, regardless of COLA. She requested further information.on how COLA and step increases would impact the budget. Director of Finance and Administrative Services Iverson reviewed the proposed increases within the budget and levy including the 2% COLA and step increases for employees. Mayor Grant asked that the COLA, step increases and benefit increases be broken down separately for the Council to review. Councilmember Holden asked if the vacated Parks and Recreation Manager position's salary was included in the budget for 2015. Director of Finance and Administrative Services Iverson stated that this salary was included. She indicated that the only budget change for employees was her request for a 0.75 FTE for an intern for the Finance and Administrative Services Department. She inquired if she should bring the budget to the Council with a 4.5% levy increase. Councilmember Holden supported staff bringing back the budget with a 4.5% levy increase. ARDEN HILLS CITY COUNCIL WORK SESSION— SEPTEMBER 22, 2014 10 Director of Finance and Administrative Services Iverson explained that she could bring a budget at both 4.5% and 5%. She reminded the Council that additional cuts could be made to the budget after the preliminary levy was set. 2. COUNCIL COMMENTS AND STAFF UPDATES Councilmember Holden expressed concern with the TCAAP zoning map. She wanted to provide feedback to staff before it was presented to the Council in the future. She believed that the feedback provided from the commercial and residential developers should be taken into consideration and adjustments should be made. City Administrator Klaers stated that staff would investigate the timing for the Comp Plan Land Use Map and would schedule a meeting for the Council to provide input early in the process. City Administrator Klaers discussed Nick Robert's proposal for Chesapeake Companies site. It appears there was a misunderstanding on the road improvement costs and that Nick Roberts was going to walk away from purchasing this property unless Chesapeake Companies pays the street improvement expenses. He stated that John McClure has offered the City $85,000 for the street improvements. Staff recommended that the City accept this offer and requested feedback from the Council on how to proceed. Councilmember Holden would not accept this low of an amount. Mayor Grant questioned if assessments should be levied at this time. City Administrator Klaers explained that the lot is vacant and it may be difficult for the City to prove the benefit of the new road. Mayor Grant asked if staff knew the value of the land. City Administrator Klaers reported that the County had the land valued at just over $3 million for the 20.8 acre parcel. Councilmember Holden inquired how McClure came up with the $85,000 offer. City Administrator Klaers explained that Chesapeake Companies wants this site acquisition to go through and the $85,000 was presented as the most they had available and a fair amount for the improvement. He reported that he would have more information on this matter for the Council to evaluate at the closed work session on September 29th. Councilmember Holmes questioned if the other two vacant lots would have the same issue. City Administrator Klaers stated that these lots may not develop for some time into the future and; therefore, the future assessment amount would be insignificant. Councilmember Holmes did not feel she could make a decision on the matter without further information from staff. ARDEN HILLS CITY COUNCIL WORK SESSION— SEPTEMBER 22, 2014 11 City Administrator Klaers explained that he would forward additional information regarding this matter to the City Council. ADJOURN Mayor Grant adjourned the City Council work session at 9:4 p.m. c i D Amy Dietl U David Grant City Clerk Mayor It' ---AEN HILLS 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. Discussion with Single-Family and Multi-Family Developers B. Comments Regarding Zoning from September 15 Work Session C. 2015 Budget and Tax Levy Requested Date: 09/22/14 Requested time: 6:00 PM Open meeting X Closed meeting Signature of person(s) making request: h444/,Z� 09/15/14 Mayor or Councilmember Date Councilmember Date -This section to be completed by City staff- Date received: / I S / I y Date meeting to be held: 09/22/14 Time of meeting: 6:00 PM Location: City Hall All necessary posting and notices have been completed. Signature of Cd 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