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HomeMy WebLinkAbout10-28-24-R 'It --fi EN-HILLS Approved: November 12, 2024 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING OCTOBER 28,2024 7:00 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 regular City Council meeting at 7:00 p.m. Present: Mayor David Grant, Councilmembers Tom Fabel, Brenda Holden, Tena Monson and Emily Rousseau Absent: None Also present: Interim City Administrator Jessica Jagoe; City Attorney Greta Bjerkness; Public Works Director/City Engineer David Swearingen; Finance Director Joua Yang; City Planning Consultant T.J. Hofer (WSB); and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Monson requested Item 8K be pulled from the Consent Agenda for discussion as Item 9A. Councilmember Holden requested Item 8B be pulled from the Consent Agenda for discussion as Item 9B. MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the meeting agenda as amended. The motion carried (5-0). 2. TCAAP/RICE CREEK COMMONS UPDATE Interim City Administrator Jagoe stated the Joint Development Authority has not met since the last Council meeting. The Energy Advisory Committee met last week and are finalizing a policy recommendation to implement the Green Energy Vision for the November JDA meeting. This recommendation is supported by the analysis described in the Green Energy Presentation that was presented to the JDA at their October 71h meeting as well as the Draft Sustainable Design Guidelines and the initial review of the LEED for Communities scorecard. The Energy Advisory ARDEN HILLS CITY COUNCIL — OCTOBER 28, 2024 2 Committee recommendation and Green Energy Final Report will be brought forth to the JDA at their next regular meeting on Monday, November 4th. Ramsey County and Alatus have exchanged comments on the PSA drafted by the County Attorney, and County staff are continuing discussions with Alatus on negotiating the final terms of the PSA. There is a tentative closed session scheduled for the County Board on Tuesday, November 26th but it is dependent on discussions with the Developer. Also, the City Council will be holding another special work session on Thursday, November 7th at 5:30 PM for a Rice Creek Commons discussion on future agreements and development items. Councilmember Holden asked who requested building specs for Building 116. Interim City Administrator Jagoe explained she did not know who made this request, but noted she would look into this further. 3. PUBLIC INQUIRIES/INFORMATIONAL None. 4. RESPONSE TO PUBLIC INQUIRIES None. 5. PUBLIC PRESENTATIONS None. 6. STAFF COMMENTS A. Transportation Update Public Works Director Swearingen stated New Brighton Road was a County road and would be completed by Ramsey County in 2026. He reported he had no further transportation update and requested this agenda item be removed from future agendas until next spring. The Council supported this recommendation. B. Elections Update Assistant to the City Administrator/City Clerk Hanson provided the Council with an update on the upcoming election. She reviewed the early voting hours and locations. She noted all voting on election day, Tuesday, November 5 would occur at polling places throughout the City of Arden Hills. 7. APPROVAL OF MINUTES A. October 14, 2024, City Council Work Session B. October 14, 2024, Regular City Council C. ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 3 MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the October 14, 2024, City Council Work Session minutes and the October 14, 2024, Regular City Council meeting minutes as presented. The motion carried (5-0). 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item- Claims and Payroll C. Motion to Approve Interim Policy Extension (Dress for Your Day and Flexible Scheduling) D. Motion to Approve North Suburban Access Corporation Professional and Technical Services Agreement E. Motion to Approve Resolution 2024-047 Appointing Eva Acosta to the Parks, Trails and Recreation Committee (PTRC) as a Youth Committee Member F. Motion to Approve Resolution 2024-048 Accepting Donation from the Arden Hills Foundation for the Flashlight Pumpkin Hunt G. Motion to Acknowledge the Application of Ducks Unlimited North Suburban Chapter 239 for an Exempt Permit to Conduct a Raffle with the Event being January 25, 2025, with No Waiting Period H. Motion to Approve Resolution 2024-049 Revoking CSAH Designation on New Brighton Road I. Motion to Approve Contract for Water Services with the City of Roseville J. Motion to Approve Professional Services Agreement Amendment No. 2 with SRF Consulting — MnDOT Safe Routes to School Grant Application and Program �M,ianagement—Old Highway 10 Trail Project K. otion to AutheFize Purehase and installation of Playgr-euad Equipment at Fr-eeway Park and Pur-ehase ef Additional Equipment for-Arden Oaks L. Motion to Approve Payment No. 3 — Hydro-Klean, LLC — 2024 CIPP Lining Project MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to approve the Consent Calendar as amended and to authorize execution of all necessary documents contained therein. The motion carried (5-0). 9. PULLED CONSENT ITEMS A. Motion to Authorize Purchase and Installation of Playground Equipment at Freeway Park and Purchase of Additional Equipment for Arden Oaks Park Councilmember Monson stated there was discussion around having one of the two parks slated for improvements in 2025 being more nature based. She explained this topic was discussed further by the Council during a work session and after reviewing plans, the Council learned the playground equipment was not nature-based but rather was nature themed. She commented further on how the parks master plan would assist with planning for future parks and park amenities, such as a nature-based playground. ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 4 MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion to Authorize Purchase and Installation of Playground Equipment at Freeway Park and Purchase of Additional Equipment for Arden Oaks Park. The motion carried (5-0). B. Motion to Approve 2024 3rd Quarter Financials Councilmember Holden reported the City receives its property tax payments from the County in April and October. She indicated the 3`d quarter financials only went through September 30. She stated the City's revenues would go up significantly in October once the City's second property tax payment was made by the County. Councilmember Monson asked if the City would have a revenue shortfall in 2024. Finance Director Yang commented there would be a revenue shortfall in 2024 due to a decrease in building permit revenues. She anticipated this amount would be $150,000 to $200,000. She explained after further forecasting she understood there would be some savings on the expenditure side, which would lead the City to be on budget through the end of the year. MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to Approve 2024 3rd Quarter Financials. The motion carried (5-0). 10. PUBLIC HEARINGS A. Ordinances for Implementation of Electric Franchise Fees and Rcne-'i'al of Existing Electric and Gas Franchise Agreements Finance Director Yang stated the Minnesota Public Utilities Commission regulates public utilities and has authorized cities to impose a franchise fee on energy providers for utilization of public rights-of-way through a utility franchise agreement. When a franchise fee is levied on a private utility, it is passed on directly to customers and itemized on customer bills. These fees are invoiced and collected from all property classes, including residential and commercial property, public agencies, and non-profit businesses. Franchise fees are an equitable way to raise funds for important infrastructure needs. A franchise fee can only be implemented through a franchise agreement with the local energy provider (Xcel Energy). There are over 370 franchise agreements for electric and/or gas services that have been established throughout Minnesota, and the City of Arden Hills has a long history of partnering with Xcel Energy with both gas and electric franchise agreements in place for many years. Finance Director Yang reported the City is anticipating future gaps in funding for infrastructure needs. These gaps are largely due to increased costs for the new Lake Johanna Fire Department (LJFD) station project,trail projects, and an equipment needs schedule. . Finance Director Yang explained staff held a Capital Funding Update Open House on Saturday, April 20th at City Hall, sharing the anticipated future gap in capital funding for the City. Staff shared information on the City's current infrastructure investments and priorities, revenue sources, and the need for the City to generate additional revenue to fill the gap. Staff reviewed franchise fees and property tax levies as financing options and their impact to property owners. A survey was released, thereafter, for City residents and businesses to provide additional input. ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 5 Finance Director Yang indicated during the May 13, 2024 Work Session, staff shared the survey results. There were 73 residential survey responses, with approximately 54% choosing a franchise fee option (22% - electric only; 32% - gas and electric), approximately 30% choosing a property tax levy option, and approximately 17% choosing the combination of property tax levy and franchise fee option. For those respondents who chose any combination of a franchise fee option, approximately 64% indicated the City should consider dedicating the fees for a specific purpose. Some common themes included bike lanes, park and trail improvements; structures and road maintenance; storm water system maintenance and utility infrastructure; fire station. Respondents also provided their concerns and additional comments for Council consideration. Some common concerns shared is that an increase to property taxes would burden taxpayers and would remain in effect indefinitely. Additionally, some respondents shared that non-profits should be assessed a fee in lieu of taxes, which would mean assessing a levy increase on residents and imposing a franchise fee on nonresidential and non-profit organizations. Council's.consensus was in favor of implementing electric franchise fees, to be directed towards the LJFD new station. Staff commented further on the franchise fee process. Finance Director Yang commented at the July 22 budget work session, and included in the 2025-2029 CIP budget, are franchise fee assumptions of$375,000 annually, estimated to start in 2025 to offset debt service for the new fire station. Per the August 19 budget work session, Council directed staff to work with the City's financial advisor, Ehler's, to determine the timing and structure of a bond issuance to occur in the spring of 2025, in order to align with the anticipated development of the new fire station. Staff and Ehler's recommend that the City issue bonds independently of one overarching project bond, as this will allow the City to take advantage of more favorable interest rates through the issuance of Bank Qualified (BQ) bonds (less than $10 million of tax-exempt bonds). At the September 23 work session, Council discussed at length, the cost of the new fire station in conjunction with debt service and franchise fees. Finance Director Yang stated at the October 14 work session, Council discussed the various electric franchise fee rate structure scenarios provided by Xcel Energy. Council directed Xcel to provide rate options for a revenue target of $435,000, which would be a 10% revenue cushion above the $395,000, 15- year annual debt service payment. This would allow the City to meet its annual debt service obligation, with any excess collected to be directed towards paying down the principal balance. With the debt service payments expected to occur in February 2026, staff recommends adoption of the franchise fee rate structure no later than November 2024. This timing is crucial to allow Xcel Energy time to meet the Public Utilities Commission's requirements. Finance Director Yang reported Xcel Energy is the natural gas and electric service provider to properties in the City of Arden Hills. Ordinance 2009-014, electric distribution and transmission franchise ordinance, and Ordinance 2009-015, the natural gas franchise ordinance, were approved by the City on November 30, 2009. Both ordinances have twenty-year terms that expire on November 30, 2029. City staff and the City Attorney have been working with Xcel to prepare updated franchise ordinances for review. While the franchise agreement is structured as an ordinance, it is legally considered a contract that requires approval from both parties. According to the League of Minnesota Cities, the primary purpose of these franchise ordinances is to provide uniform provisions that incorporates the broad municipal statutory franchise rights that exist in Minnesota Statues and rules from the Minnesota Public Utilities Commission (MPUC) into an ordinance or agreement for each service. The franchise agreements also provide the City an ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 6 opportunity to negotiate and charge a franchise fee, which is discussed in further detail in the below section. It is important to note that the franchise agreements only apply to the use of public rights-of-way and public property, which includes public roads, parks, and trails. Electric or gas lines that cross private property are subject to the regulations in the underlying private easement. Lastly, the City Council directed city staff to bring forward at the October 28th City Council regular meeting, the necessary ordinances for implementation of electric franchise fees and associated agreements. A public hearing is not required for ordinance adoption, the Council elected as part of the process to allow an opportunity for public comment as part of this meeting. Mayor Grant made a statement of clarification noting the City had not relied on building permit revenues as an additional funding source in the past. He explained building permit revenues were designed to cover the expense of the building inspections department and were not a revenue source for infrastructure. Councilmember Holden reported State law regulates the City should not bill permit fees more than is being used for inspection time. She commented on Slide 18, noting the fire department made a decision very quickly to purchase this property, when it became available in Arden Hills. She indicated the City paid cash for its portion of the land and did not have to bond. Mayor Grant commented the bonds that will be issued for the fire station will be less than the total value of the building. He stated this was because Arden Hills, Shoreview and North Oaks received $6.2 million from the State in funding for the fire station. He thanked the City of Shoreview for their efforts to receive this funding. Councilmember Fabel explained he has been the lone voice of opposition to the franchise fee. He commented on Page 2 it states the Council's consensus was to move forward with the franchise fee. He commented consensus was defined as group solidarity in sentiment and belief. He stated there was not solidarity in this group regarding franchise fees. He provided further discussion on the language within the memorandum noting the public service commission has authorized cities to impose a franchise fee on energy providers for utilization of public rights of way through a utility franchise agreement. He reported the agreement has nothing to do with the receipt of electrical services for citizens. He explained the authority the utility has to use rights of way is not predicated on the imposition of a franchise fee. Rather, an additional tax would be placed on property owners that was unrelated to electrical services. He understood franchise fees were a way to raise funds for infrastructure needs, but he objected to the imposition of franchise fees because it was not equitable. Mayor Grant stated 30%, or $800 million, of the value of development in Arden Hills is non- profit. Finance Director Yang reported this was correct. Mayor Grant commented if a property tax increase were approved by the Council instead of a franchise fee, there would be $800 million worth of property not contributing. Councilmember Holden indicated police and fire responded to all properties in Arden Hills. She believed paying an additional $3 per month was a good deal for these services. ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 7 Mayor Grant explained he took part in the Partners in Energy (PiE) meeting last week. He stated in this meeting he learned the average manufactured home in Arden Manor pays $1,875 a year in energy costs and the average assistance offered was $550 per year. He noted additional resources are available to seniors. Councilmember Monson also commented on how the City was partnering with Xcel Energy on the PiE program to help provide additional energy reduction strategies in which the City's residents can participate in. She indicated there were specific programs geared towards manufactured home residents to assist with defraying energy costs. Mayor Grant reported all manufactured homeowners qualify for a free home energy audit. He was hopeful that as this program rolls out, those living in the manufactured home park could participate in this program. Mayor Grant opened the public hearing at 7:45 p.m. Steve Scott, 4286 Norma Avenue, explained a prior Council floated a notion of a franchise fee to cover unanticipated costs, but noted this was shouted down by the public. He commented franchise fees were already being charged for cable services in the City. He stated his preference was to defer the construction of the fire station until they have enough grant dollars in place. He commented further on how expensive it was to borrow money at this time. Gregg Larson, 3377 North Snelling Avenue, commented the City's survey of 73 residents was meaningless. He indicated this survey only reflected 1% of eligible voters. He stated the vote before the Council was a deja vu, noting a franchise fee to fund parks was denied by the City Council in 2014. He reported Councilmember Holden and Mayor Grant opposed the previous franchise fee at that time and now they want them. He encouraged residents and voters to listen up. He was of the opinion the franchise fee was bad policy because this expense would be added or hidden into residents' monthly energy bills. He indicated this tax was regressive because all residents would be charged the same amount. He explained both AARP and the Chamber of Commerce opposed this tax. He reported this tax would not be tax deductible like a property tax increase would be and noted this would be a forever tax. He commented on how this tax would adversely impact non-profit properties. He encouraged the Council to raise revenue in a transparent manner and not through a hidden fee on an electric bill. With no one coming forward to speak, Mayor Grant closed the public hearing at 7:52 p.m. B. Planning Case 24-016—Planned Unit Development Amendment and Site Plan Review—Elegant Event Center—3776 Connelly Avenue Consultant Planner Hofer stated the Applicant previously submitted a land use application for a Zoning Code Amendment, Master Planned Unit Development, Final Planned Unit Development, Conditional Use Permit, and Site Plan Review to redevelop the existing approximately 11,000 square foot commercial building on the property at 3776 Connelly Avenue. This application was approved, with conditions, with Resolution 2024-038 on July 22, 2024. The Subject Property is currently owned by Standout Properties, LLC and the building was most recently occupied by the Northern Lights Bingo Hall and Bright Side Cafe. The Applicant's previous proposal was to renovate the existing building and resurface the parking lot. The Applicant proposed a phased development with the event center established in Phase I and restaurant and adult day care uses to ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 8 be established in Phase II and Phase III, respectively. With the previous proposal, the Applicant sought review and approval for Phases I and II. Consultant Planner Hofer reported the PUD Development Agreement was approved on September 23, 2024. The Applicant is now asking to amend the Planned Unit Development (PUD) Agreement to allow for the west elevation and part of the north elevation of the building to have an exterior material that is not defined as a desirable material. The Applicant is proposing to not replace the exterior materials on the specified elevations and to instead paint the existing concrete block exterior material to match the approved exterior materials of the other elevations. Consultant Planner Hofer explained a Site Plan Review is required by the City Code for any Planned Unit Development Amendment. Since the Planning Commission review, the Applicant has submitted updated site and landscaping plans approved as part of Planning Case 24-014. From the PUD approval, there are minor changes to the proposed site plan with curbing and parking island configurations and the landscaping plan has differing plant species. Resolution 2024-038 requires that any significant changes be approved by the Planning Commission and City Council, and the proposed changes to the site submitted on October 16, 2024, were deemed to be minor. These proposed minor changes are still under review by city staff and will be considered for approval as part of future permit reviews. No additional changes to the layout of the site are proposed with this application. This commercial corridor is accessible by way of County Road E West. This area is used by several businesses for a variety of retail, manufacturing, distribution, warehousing, and office uses. Consultant Planner Hofer reviewed Plan Evaluation in further detail with the Council and requested the Council hold a public hearing. Mayor Grant opened the public hearing at 7:58 p.m. With no one coming forward to speak, Mayor Grant closed the public hearing at 7:59 p.m. 11. NEW BUSINESS A. Franchise Fees Ordinance Approving r finance 2024-012 A rovin New Electric Franchise Fees and d AuthorizingPublication of Summary Ordinance rY • Ordinance 2024-013 Approving an Electric Franchise Agreement (Construct, Operate, Repair and Maintain Electric Distribution Systems in Arden Hills) and Authorizing Publication of Summary Ordinance • Ordinance 2024-014 Approving a Gas Franchise Agreement (Construct, Operate, Repair and Maintain Gas Distribution System in Arden Hills) P P and Authorizing Publication of Summary Ordinance Finance Director Yang stated franchise fees are an equitable way to raise funds for important infrastructure needs. A franchise fee can only be implemented through a franchise agreement with the local energy provider (Xcel Energy). The City is anticipating future gaps in funding for infrastructure needs, largely due to increased costs for the new Lake Johanna Fire Department (LJFD) station project, trail projects, and an equipment needs schedule. After an open house held in April 2024 and several work session discussions, Council majority was in favor of implementing electric franchise fees, to be directed towards the new Lake Johanna Fire ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 9 Department station. Ehler's provided preliminary debt service schedules, to align with the construction of the new facility, with debt service payments expected to occur in February 2026. Staff recommends adoption of the franchise fee options no later than November 2024, to allow Xcel to meet the Public Utilities Commission's requirements. Finance Director Yang commented despite one ordinance being for electrical service and the other for natural gas service, the provisions of the two ordinances are nearly identical, with the exception of that the proposed new franchise fee rates are included in the electric franchise agreement ordinance under Section 9. Both ordinances are proposed to have twenty-year terms which is the same term as the existing agreements. The City's existing gas ordinance is set to expire in 2029 and is being brought forward for renewal to align with the two electric franchise agreements. There are no changes to the gas ordinance as the City will not be imposing a franchise fee on gas utilities. Finance Director Yang reported the City will need to adopt a new and separate ordinance for implementing an electric franchise fee. The City has not imposed a franchise fee on gas or electric services in the past. The franchise fee structure will be a monthly flat fee on each premise. The fee structure can be amended anytime throughout the twenty-year agreement. These ordinances/agreements have been reviewed by the City Attorney and will need to be fully approved and executed prior to Xcel Energy's implementation of franchise fees on customers' bills. Staff reviewed a potential timeline for the franchise fee ordinance and recommended approval. Councilmember Fabel noted the proposed ordinance establishes the residential rate at $3.25 and staff presented a franchise fee of$3.00. Mayor Grant commented the final document will reflect the rate the Council approves. Councilmember Rousseau explained her interest in the proposed franchise fee was to distribute the public safety expense amongst all residents and businesses in the community. She reported she was interested in the franchise fee within Schedule A because it would have commercial properties paying an additional $10 or $20 per month versus residents. Councilmember Holden asked how many people completed the survey. Finance Director Yang reported 73 residents responded to the survey. Councilmember Holden commented one of the speakers asked that the City delay building the fire station. She explained the City has a contractual Joint Powers Agreement between Arden Hills, Shoreview and North Oaks, requires the fire station to be built in 2025. She asked how many non-profits were located in Arden Hills. Mayor Grant estimated there were close to 80 non-profits in Arden Hills. Councilmember Monson stated she supports the franchise fees. She understood it was an imperfect process, but the franchise fees would provide the right outcome. She indicated the City has held public hearings and has written about the franchise fee within the Arden Hills Notes. She indicated the City was not trying to hide the fees from the public, but rather was trying to mitigate the concerns. She reported if the City were to levy for this, the City would have an additional 8% ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 10 levy increase. She stated the City has funding from the State that has a timeline and she did not want to see the City miss out on the $6 million in grant funding if the project were pushed out. She commented further on how project costs would only continue to increase if the project were pushed out into the future. Mayor Grant explained this fee would run for 15 years and some Council in the future would make a decision about the franchise fee. He reported everyone in the community would pay equally for this fee. He was hopeful that the PiE program would be able to offer assistance to those living within the mobile home community. He stated when considering the fairness, he stated all people in the community who use the fire department would be collectively paying for the fire department. He indicated he would support this franchise fee so long as a specific fund was set up for all franchise fees. He explained he was uncertain what the interest rate would be for the bonds, but he hoped the franchise fees would assist with paying off the bonds early. He stated he did not recall how he voted on a franchise fee in the past, but noted with this franchise fee, the City had a public safety need and these funds would be dedicated to a specific purpose. Councilmember Monson stated she could support Option A4 moving forward. Mayor Grant reported he supported Option A4 as well. MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to Adopt Ordinance 2024-012 for implementation of Electric Franchise Fee Ordinance, based on Option A4, which includes a residential rate of$3 per month, small commercial and industrial at $22 per month and large commercial and industrial at $329 per month and authorize publication of a Summary Ordinance of 2024-012; and to Adopt Ordinance 2024-013 renewal of Electric Franchise Agreement Ordinance with Northern States Power and authorize publication of a Summary Ordinance of 2024-013. A roll call vote was taken. The motion carried (4-1 Councilmember Fabel opposed). MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to Adopt Ordinance 2024-014 for renewal of Gas Franchise Agreement Ordinance with Northern States Power and authorize publication of a Summary Ordinance of 2024-014. The motion carried (5-0). Mayor Grant explained this Ordinance was necessary to allow both the gas and electric franchise agreements with Northern States Power to expire at the same time (15 years from now). He reiterated that no franchise fee would be charged for gas services. Councilmember Monson reported for clarification that every City has a franchise agreement in place with gas and electric service providers. The motion carried 4-1 (Councilmember Fabel opposed). ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 11 B. Resolution 2024-050 Approving a Planned Unit Development Amendment and Site Plan Review—Elegant Event Center—3776 Connelly Avenue Consultant Planner Hofer stated the Applicant previously submitted a land use application for a Zoning Code Amendment, Master Planned Unit Development, Final Planned Unit Development, Conditional Use Permit, and Site Plan Review to redevelop the existing approximately 11,000 square foot commercial building on the property at 3776 Connelly Avenue. This application was approved, with conditions, with Resolution 2024-038 on July 22, 2024. The PUD Development Agreement was approved on September 23, 2024. The Applicant is now asking to amend the Planned Unit Development(PUD) Agreement to allow for the west elevation and part of the north elevation of the building to have an exterior material that is not defined as a desirable material. The Applicant is proposing to not replace the exterior materials on the specified elevations and to instead paint the existing concrete block exterior material to match the approved exterior materials of the other elevations. Consultant Planner Hofer explained a Site Plan Review is required by the City Code for any Planned Unit Development Amendment. Since the Planning Commission review, the Applicant has submitted updated site and landscaping plans approved as part of Planning Case 24-014 that will be considered as part of future permit reviews. Changes to the proposed plan are minor and the landscaping plan has not changed substantially from what was approved with Planning Case 24-014. Resolution 2024-038 requires that any significant changes be approved by the Planning Commission and City Council, and the changes to the site submitted on October 16, 2024, were deemed to be minor. No additional changes to the layout of the site are proposed with this application. Consultant Planner Hofer commented further on the request and offered the following Findings of Fact: 1. The property located at 3776 Connelly Avenue is designated for Community Mixed uses on the 2040 Comprehensive Plan. 2. New building construction or site modification identified requires the submittal of a Site Plan Review application prior to construction. 3. For proposals for new construction, redevelopment of a site, and significant modifications to existing sites in the B-3 Zoning District, a Planned Unit Development is required. 4. The Master and Final Planned Unit Development generally conforms to the requirements of the City Zoning Code and design standards. 5. Resolution 2024-038 approved a Planned Unit Development for the Subject Property with flexibility for the following areas: parking requirements, landscaping, building materials, transparency, signage, lighting, and site furnishings. 6. A Master and Final PUD Development Agreement was approved by the City Council on September 23, 2024. 7. Where the plan is not in conformance with the City Code, the Applicant has requested flexibility. 8. Flexibility through the PUD process has been requested in the following areas: exterior materials. 9. A public hearing for a Planned Unit Development Amendment request is required before the request can be brought before the City Council. 10. The Planning Commission held a public hearing for this land use application on October 9, 2024. ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 12 Consultant Planner Hofer reported the Planning Commission reviewed this application at their October 9, 2024, meeting. At that time, they recommended approval with conditions of the Elegant Event Center application for a Planned Unit Development Amendment and Site Plan Review with the following conditions: 1. The project shall be subject to any and all conditions of approval of Resolution 2024-038. 2. The project shall be completed in accordance with the submitted plans as amended by the conditions of approval. Any significant changes to these plans, as determined by the Community Development Director, shall require review and approval by the Planning Commission and City Council. 3. A violation of any condition set forth in the permit shall be a violation of this Code and shall be cause for revocation of the permit. 4. The Master and Final PUD Development Agreement shall be amended to reflect the approval for additional flexibility from exterior building materials and the plans reviewed with this request. The Master and Final PUD Development Agreement shall be fully executed prior to the issuance of building permits. Councilmember Monson stated she would be supporting this request. Councilmember Holden indicated she would be supporting this request as well. She commented on how she appreciated the fact the applicant would be renovating this space while bringing a new business into the community. MOTION: Councilmember Holden moved and Councilmember Rousseau seconded a motion to approve Planning Case 24-016 and the adoption of Resolution 2024- 050 for the Elegant Event Center Planned Unit Development Amendment and Site Plan Review for an Event Center and Restaurant at 3776 Connelly Avenue, based on the findings of fact and submitted plans, and the four conditions in the October 28, 2024,Report to the City Council. Councilmember Rousseau thanked the applicant for her interest in this property. She stated she was very excited for this new business and encouraged the applicant to engage with the Gateway Business Bureau. The motion carried (5-0). 12. UNFINISHED BUSINESS None. 13. COUNCIL COMMENTS Councilmember Rousseau welcomed youth commissioner Eva Acosta to the PTRC. Councilmember Rousseau explained on Friday, Councilmember Holden and herself met with the Rotary Club to discuss an Adopt a Park project. Councilmember Rousseau commented on the tour that was conducted at Floral Park and stated the Norway maples that were planted may be an invasive species. ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 13 Public Works Director/City Engineer Swearingen reported the species of Norway maples that were planted within Floral Park were recommended species from the University of Minnesota. Councilmember Rousseau reported the PTRC met last week and discussed their 2025 plan. She commented the group was interested in addressing encroachment issues and plantings in the coming year. Councilmember Rousseau indicated the EDC met last week as well and this group was working to visit with local business owners. Councilmember Rousseau thanked Boston Scientific for their cleanup efforts at Crepeau Park. She suggested a thank you card or email be sent to Boston Scientific thanking them for their efforts. Councilmember Rousseau stated on October 12, Scout Troop #419 and neighbors from the Floral neighborhood worked to address the flower beds in Floral Park. She recommended a thank you note be sent to this scout troop as well. i Councilmember Rousseau commented on the outreach event that was held at Hazelnut Park. Councilmember Rousseau wished everyone a safe Halloween. Councilmember Fabel thanked HKGi staff for the excellent presentation to the Council at the work session regarding the City's zoning code. He was pleased that the City would be looking more closely at the housing codes and that 500 more housing units had been added to the Rice Creek Commons development for Arden Hills residents. Councilmember Holden thanked the Arden Hills Foundation for donating pumpkins for the Flashlight Pumpkin event. Councilmember Holden questioned how residents could get more information about the PIE program. Mayor Grant stated the City's communications coordinator was drafting a timeline and pieces of information that would be sent to the manufactured home park. Councilmember Holden thanked the Gathering Place for hosting a Trunk or Treat event on Saturday. Councilmember Holden thanked the Boy Scouts for their efforts at Floral Park. Councilmember Holden stated there have been comments about why is the City only buying HOA playground equipment. She reported this is not the case and requested further information regarding the playground equipment from the Public Works Director. Public Works Director/City Engineer Swearingen explained the term HOA style play structure came from the type of equipment that was installed at Floral Park or Cummings Park. He indicated this term came up when the City began planning for the 2025 park improvement projects. He stated the Council provided staff with direction to pursue playground options that ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 14 were a step above HOA equipment. He reported three options were provided for both Freeway and Arden Oaks Park and noted the options that were chosen were the step above the HOA structure style. Councilmember Holden requested further information regarding the Colleen improvement project. Interim City Administrator Jagoe reported staff was drafting letters that would be sent to property owners that have not yet prepaid before the November 15 deadline to make them aware of the interest rate that was set back in April, while also letting residents know if they prepay the assessment by November 151" deadlines, no interest would be charged. She noted 65 individuals have prepaid to date. Councilmember Monson reported the Fire Board met and was still reviewing the operating budget with hopes of approving the budget in November. She indicated the fire department has a new Assistant Fire Chief Jonathan Rasch. She indicated the fire station was still on schedule for design and she anticipated the project would be put out for bid in January or February of 2025. Mayor Grant stated more information would be sent to Arden Manor regarding the PiE program in the coming weeks. Mayor Grant explained he became aware of a rumor that was going through town that the City was balancing its budget by selling City property. He commented this was not true. Mayor Grant thanked Finance Director Yang for her work on the franchise fees. ADJOURN MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to adjourn. The motion carried (5-0). Mayor Grant adjourned the Regular City Council Meeting at 8:43 p.m. Juli anson David Grant Cit Jerk Mayor