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HomeMy WebLinkAbout11-25-24-R 'It -A II pENJHILLS Appro%c& December 16, 2024 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING NOVEMBER 25, 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, and Emily Rousseau Absent: Councilmember Tena Monson(Excused) Also present: Interim City Administrator Jessica Jagoe; Public Works Director/City Engineer David Swearingen; City Attorney Greta Bjerkness; Consultant Planner T.J. Hofer; and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Holden requested Item 8C be pulled from the Consent Agenda for discussion as Item 9A. MOTION: Mayor Grant moved and Councilmember Holden seconded a motion to approve the meeting agenda as amended. The motion carried (4-0). 2. TCAAP/RICE CREEK COMMONS UPDATE Interim City Administrator Jagoe stated the Joint Development Authority has not met since the last Council meeting, neither have either of the committees. The Ramsey County Board will not be holding a closed meeting in November to review the Purchase and Sale Agreement with Alatus for the California Parcel at Rice Creek Commons. Staff is waiting on an update from County Staff and Alatus as to a date for future scheduling of the County Board's consideration of the PSA terms. County staff is working to schedule a meeting with the Alatus team in December to review the negotiated terms. The next JDA meeting is scheduled for December 2na The City Council held a Special Work Session on November 18"'to review the Parks MOU and park amenity needs within Rice Creek Commons. The City's Parks Consultant provided several ARDEN HILLS CITY COUNCIL—NOVEMBER 25, 2024 2 suggestions in terms of the types of equipment and current trends for parks infrastructure for the Council to consider. Another City Council special work session has been scheduled for Monday, December 10'to review the City's 2022 term sheet with Alatus. Councilmember Holden reported the City was overbudget with Ehlers in 2024 and much of this was due to TCAAP. She questioned why the City was paying for Ehlers expenditures for the horizontal build out for this development. Interim City Administrator Jagoe commented she would discuss this with County staff and would further review the JPA language regarding this matter. 3. PUBLIC INQUIRIES/INFORMATIONAL Ben Lindau, 3288 Katie Lane, explained he was recently appointed as an alternate to the Planning Commission by the City Council. He discussed how the JDA wanted to have TCAAP be an all-electric carbon free development. He reported he was an architect that has worked on all electric, zero carbon developments. He stated he wanted to give his opinion on this type of development for TCAAP. He explained he initially had concerns about this, but with an energy consultant, Evergreen and LHB on board, as well as the experience Alatus had with constructing all electric buildings, he supported this initiative. He commented further on how he was looking forward to the future amenities that would be available to Arden Hills residents within this development. 4. RESPONSE TO PUBLIC INQUIRIES None. 5. PUBLIC PRESENTATIONS A. Senator Update Senator John Marty addressed the City Council and commented on the upcoming legislative session. He hoped the trail for Highway 10 would make progress. He reported 2025 would be a budget year and noted the preliminary numbers were coming in okay. He thanked the Council for their continued support and stated he looked forward to seeing Rice Creek Commons moving forward. B. State Representative Update State Representative Kelly Moller addressed the Council and stated she was happy to be back in front of the City Council. She explained she enjoys working on bills with constituents. She indicated she was heavily involved in addressing public safety issues along with student mental health. She discussed how the upcoming session may be challenging as federal dollars may be stripped from the State. Councilmember Holden thanked Senator Marty and Representative Moller for all of their efforts on behalf of the community. She encouraged both to continue to work on the trail along Highway 10. She asked how much of the budget forecast for 2025 included federal funding. ARDEN HILLS CITY COUNCIL-NOVEMBER 25, 2024 3 Senator Marty stated his budget relies on Medicaid funds and noted the feds pay a little over half. He explained he was counting on this funding and if it was lost, premiums would have to go up or the State would have to step in. Councilmember Rousseau congratulated Representative Moller for being named chair to the Ethics Committee and Public Safety Committee. She thanked Senator Marty and Representative Moller for representing this community well. Councilmember Fabel stated he was disappointed with the fact the legislature did not approve a bonding bill this year. He asked if action would be taken on a bonding bill at the beginning of the 2025 legislative session. Representative Moller commented she could not say, but understood people wanted that to happen. Councilmember Fabel questioned if affordable housing would continue to be a priority for the legislature in 2025. Representative Moller reported the State invested $1 billion in housing and noted housing would always be a high priority for the State. Senator Marty explained he understood the needs for housing in the State were critical and noted the housing chairs in both the Senate and House also understood this concern. Mayor Grant thanked Senator Marty and Representative Moller for their efforts on behalf of the community. He indicated he appreciated all of their efforts on the fire station. He thanked Representative Moller for working with him on sewer and water issues. He stated Arden Hills was a small community and did not have budget for lobbyists. He asked that Senator Marty and Representative Moller continue to advocate for a trail along old Highway 10. Senator Marty indicated this was a Safe Routes to School trail segment and noted he understood this was an important initiative for the community. 6. STAFF COMMENTS None. 7. APPROVAL OF MINUTES None. 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion to Approve Ramsey County Joint Powers Agreement for Recycling Funding ��Metion to ^„ e Resolution 2024 053 Authoring the- Appheation--fer ARDEN HILLS CITY COUNCIL—NOVEMBER 25, 2024 4 D. 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 23, 2025, with No Waiting Period E. Motion to Approve Resolution 2024-054 Certifying the 2024 Municipal election Canvass Recount Results MOTION: Councilmember Holden moved and Councilmember Rousseau seconded a motion to approve the Consent Calendar as amended and to authorize execution of all necessary documents contained therein. The motion carried (4-0). 9. PULLED CONSENT ITEMS A. Motion to Approve Resolution 2024-053 Authorizing the Application for Recycling SCORE Grant Funds from Ramsey County for 2025 Councilmember Holden asked how the grant funding will impact the amount residents will be paying for recycling. Interim City Administrator Jagoe reported the base amount for SCORE funding went up slightly. She noted the larger piece was the incentive funding. She indicated the City would continue to do an electronics recycling day and was considering a bulk item collection day. She commented there may be a way to use the funding towards the recycling rates, but this was still being explored. MOTION: Councilmember Holden moved and Councilmember Rousseau seconded a motion to Approve Resolution 2024-053 Authorizing the Application for Recycling SCORE Grant Funds from Ramsey County for 2025. The motion carried(4-0). 10. PUBLIC HEARINGS A. Quarterly Special Assessments for Delinquent Utilities Finance Director Yang stated water customers whose accounts are 90 days past due were informed that the City intends to certify delinquent charges to Ramsey County to be collected with property taxes. These customers have the right to a hearing in front of the City Council to discuss this matter prior to certification. Staff requested the Council hold a public hearing regarding the delinquent utilities. Mayor Grant opened the public hearing at 7:34 p.m. With no one coming forward to speak, Mayor Grant closed the public hearing at 7:35 p.m. B. Planning Case 24-019 Amending Chapter 13 — Zoning Code — Cannabis Zoning Standards Consultant Planner Hofer stated in 2023, cannabis was legalized for recreational use and the sale, possession, use, and growth of cannabis was decriminalized. The Office of Cannabis ARDEN HILLS CITY COUNCIL—NOVEMBER 25, 2024 5 Management (OCM) is currently drafting rules and standards for licensing and use of facilities that will deal with cannabis. The first draft of the rules was made available on July 30, 2024, and A Guide for Local Governments on Adult Use Cannabis (Local Guide) was published this year with the most recent version being updated in August. The OCM recently closed the application period for Social Equity Applicants and received over 1,800 applications. Licenses are anticipated to be issued shortly after the rules from OCM are finalized in 2025. Consultant Planner Hofer reported a considerable number of changes to the City Code will be required to address the registration of cannabis businesses and the use of cannabis; however, the zoning ordinance is specifically used to control for the time, place, and manner of the operations of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. Notably, if the City wishes to limit the amount of cannabis retail businesses within the City, this should not be done in the zoning ordinance, but in the section that establishes standards for registration. Nonretail businesses cannot be limited by number but can be zoned for specific areas of the City. Consultant Planner Hofer described the various cannabis businesses and discussed the registration/licensing process. It was noted the proposed ordinance includes amendments to 1305 Rules, Scope, Interpretation, & Definitions, subsection 1325.04 Definitions. Many of the definitions reference Minnesota Statute in order to make sure that definitions in the code remain current if statute changes. The proposed ordinance includes amendments to Section 1320 — District Provisions, subsection 1320.05 Land Use Chart. Allowed districts were amended by the Planning Commission to include mezzobusiness and microbusiness, as a conditional use in the B- 3 and GB zoning districts and "Retail, Cannabis Sales" as a conditional use in the B-3 district and a conditional accessory use in the GB district. Sales within the GB district was determined to fit as a conditional accessory use to be consistent with the existing standards within the GB district regarding retail (1320.13 Subd. 3 C.). Consultant Planner Hofer explained the proposed ordinance includes amendments to Section 1325 to create 1325.047 Cannabis Business Conditional Use Permit Criteria. These include application requirements and design and performance standards for cannabis businesses. The ordinance standards may need to change based on future changes to OCM rules. The standards include: • A 1,000 ft. setback from schools as allowed by Minnesota State Statue • A prohibition on outdoor operations • Standards regarding odor control and design standards • Screening and outdoor storage standards • Lighting standards and requirements • Water and wastewater requirements • Sign standard references to the City Code and OCM • Restrictions on business hours Consultant Planner Hofer reported changes within the proposed language from the November 6, 2024, Planning Commission meeting include language that exempts areas located north of Highway 694, east of Interstate 35W, and west of State Highway 10 in the Gateway Business zoning district from the 1,000 ft. buffer from schools, an amendment to the hours of the sale of cannabinoids for consumption to be consistent with state statute, and minor grammatical changes. ARDEN HILLS CITY COUNCIL—NOVEMBER 25, 2024 6 The Council should discuss the hours of the sale of cannabinoids for consumption. State statute allows for the sale between the hours of 8:00 a.m. and 2:00 a.m. of the next day, Monday through Saturday, and between the hours of 10:00 a.m. and 2:00 a.m. of the next day on Sundays. The Planning Commission discussed the hours of operation regarding this and was consistent in recommending that sales should cease at 9 p.m., but there was discussion about whether the beginning of sales should mirror State statute or be set at 10 a.m. every day. Local governments are allowed to limit this to 10:00 a.m. to 9:00 p.m. every day. The draft ordinance included in Council packets states hours of operation would be allowed from 8:00 a.m. to 9:00 p.m. Monday through Saturday, and between the hours of 10:00 a.m. and 9:00 p.m. on Sundays. Staff commented further on the proposed cannabis ordinance and requested the City Council hold a public hearing. Councilmember Fabel discussed how the proposed amendments would expand retail sales to the B-3 and GB zoning districts. Consultant Planner Hofer reported the proposed expansion would allow mezzobusinesses and microbusinesses to have retail sales within these districts. Mayor Grant commented mezzobusinesses and microbusinesses were not previously recommended by the City Council, rather the Council had only considered retail sales. He asked how mezzobusinesses and microbusinesses ended up in the recommendation. Consultant Planner Hofer stated mezzobusinesses and microbusinesses are specific license types and have specific uses related to them. He indicated because their uses were very particular and could include retail sales, they were included in the use table. Mayor Grant was of the opinion the mezzobusinesses and microbusinesses was a Planning Commission add and noted this was not discussed or considered by the City Council. Councilmember Rousseau asked what the tax revenue would be for these uses. Consultant Planner Hofer stated he could not speak to this. Finance Director Yang reported when looking at the revenue streams from the Department of Revenue, what happens is 10% of gross receipts are taxed and pulled into a special revenue fund and 50% is given to counties and 50% will be given to cities. She explained if Arden Hills had one retail business, the City would receive approximately $1,000 in tax revenues. Mayor Grant indicated the Council wanted to limit the number of businesses to one and asked if the proposed Ordinance would lead to more than one retail cannabis business. City Attorney Bjerkness advised under State Statute 342.13 local governments were given the ability to regulate the number of particular license types, which include cannabis retailers, mezzobusinesses with retail endorsements, and microbusinesses with retail endorsements. She indicated the City could limit these to no more than one. She reported medical use licenses were outside this cap. Councilmember Fabel questioned if the microbusiness and mezzobusiness licenses could be issued without the retail endorsement. ARDEN HILLS CITY COUNCIL—NOVEMBER 25, 2024 7 City Attorney Bjerkness commented she believed this could be done. Interim City Administrator Jagoe explained staff understood the City Council wanted to set the retail cap at one registration. She indicated because a mezzobusiness or microbusiness could have a retail endorsement, they were included in the ordinance for conditional use permit consideration. Consultant Planner Hofer reported the retail component for microbusinesses and mezzobusinesses was granted by the Office of Cannabis Management. He stated microbusinesses and mezzobusinesses with a retail endorsement could operate in up to three different retail locations associated with their licenses in different communities. Councilmember Fabel indicated he remains a bit confused on how the City could state within the ordinance that there will be one retail cannabis outfit in Arden Hills. Consultant Planner Hofer explained if the City sets a cap at one cannabis retailer and there is an existing retail use within the City, a microbusiness or mezzobusiness with a retail endorsement would not be able to register for retail sales, but could perform the other functions under their license. Mayor Grant opened the public hearing at 8:00 p.m. With no one coming forward to speak, Mayor Grant closed the public hearing at 8:01 p.m. 11. NEW BUSINESS A. Quarterly Special Assessments for Delinquent Utilities Finance Director Yang stated delinquent utility amounts are certified to Ramsey County quarterly. A list of utility accounts with a delinquent balance was compiled and notices dated October 15, 2024 were mailed. These customers were informed of their delinquent status and were asked to make payment of the delinquent balance by November 17, 2024. Utility accounts with an unpaid delinquent balance would be certified to Ramsey County to be added to property taxes payable in 2025. The certification amount is equal to the unpaid delinquent balance plus an eight percent penalty. The City will request that Ramsey County levy the delinquent balances against the respective properties. MOTION: Councilmember Holden moved and Councilmember Rousseau seconded a motion to adopt Resolution #2024-055 — Certifying Ouarterly Delinquent Utilities to Ramsey County. The motion carried (4-0). B. Planning Case 24-019 Amending Chapter 13 — Zoning Code — Cannabis Zoning Standards Consultant Planner Hofer stated a full evaluation of the proposed amendment and was included in the staff report under Agenda Item 10B. It was noted the City of Arden Hills is proposing amendments to the language of Chapter 13 of the Zoning Code to Section 1305 to establish definitions for cannabis uses, 1320 to determine zoning districts for cannabis uses, and 1325 to ARDEN HILLS CITY COUNCIL—NOVEMBER 25, 2024 8 establish performance standards for cannabis uses, in anticipation of the Office of Cannabis Management(OCM) issuing licenses for cannabis businesses in 2025. Consultant Planner Hofer reported the Planning Commission held a public hearing on the ordinance amendment. No comments were received. The Commission voted 6-0 to recommend approval, with six amendments, of Planning Case 24-016. The amendments have been described previously in this report. The Planning Commission reviewed this application at their November 6, 2024,meeting. The following findings of fact are offered for Council's consideration: 1. The City of Arden Hills is proposing to amend ordinance to establish definitions for cannabis uses, determine zoning districts for cannabis uses, and establish performance standards for cannabis uses. 2. The proposed ordinance will include amendments to the language of Chapter 13 —Zoning Code of the City Code. 3. Amendments to the Zoning Code regulations require a public hearing prior to action by the City Council. 4. The Planning Commission conducted a public hearing on November 6, 2024. Councilmember Rousseau commented she originally was interested in locating retail cannabis in the B-3 zoning district. She explained she wanted to see this use destigmatized and supported retail sales in both the B-3 and B-4 zoning districts. She stated she would be in favor of free market, but because there was so much change happening so quickly, she recommended the City limit the number of cannabis retailers to one. Mayor Grant indicated he supported retail cannabis sales only in the B-4 zoning district and supported the City only having one cannabis retailer. He stated he was concerned about odor and commented on how this may impact the B-3 business district. He reported he was a little concerned with the fact the OCM was still establishing the rules. He explained he was uncertain why the Planning Commission included microbusiness and mezzobusinesses. He stated he wanted to see the City Council proceeding cautiously allowing for one retailer. Councilmember Holden explained the Council discussed this matter extensively and noted she could support excluding retail sales in the Gateway Business and B-3 zoning districts. Councilmember Fabel questioned if the odor from cannabis was just from smoking or was there an odor from manufacturing as well. Mayor Grant stated it was his understanding the odor from manufacturing or growers comes from the flower of the cannabis plant and the odor was very poignant in the late summer early fall months. He reported the smell was likened to a skunk. Councilmember Fabel indicated he would like to keep retail sales off of County Road E and Lexington Avenue, which means he would only support retail sales in the B-4 zoning district. Mayor Grant asked if cannabis sales made sense in the Gateway Business District. Councilmember Holden stated she was uncertain how to go ahead with amending the proposed Ordinance. ARDEN HILLS CITY COUNCIL—NOVEMBER 25, 2024 9 Mayor Grant recommended staff rewrite the code in such a manner to meet the desired requirements. Councilmember Fabel commented on the hours of operation requirements. He stated he would like to see the City ordinance reflecting the minimum hours of operation required by State law. Consultant Planner Hofer reported the most restrictive hours that could be approved within the ordinance would be 10:00 a.m. to 9:00 p.m. Monday through Sunday. Councilmember Holden asked if the mezzobusiness and microbusinesses could be removed from the ordinance. Consultant Planner Hofer discouraged the Council from proceeding in this manner. He explained mezzobusinesses and microbusinesses are a specific license type the City may want to regulate. He reported the Council could opt to limit mezzobusiness and microbusinesses within the Gateway Business District. Councilmember Holden supported removing microbusiness and mezzobusinesses from the ordinance altogether. In addition, she recommended cannabis sales not be allowed in the Gateway Business district or the B-3 business district. Councilmember Fabel stated he thought he heard Consultant Planner Hofer recommend against the elimination of the microbusiness and mezzobusiness language from the ordinance. Consultant Planner Hofer directed this question to the City Attorney. City Attorney Bjerkness stated if the question was could the microbusiness and mezzobusiness language be removed, she believed the answer was no. She detailed how the language could remain for the B-4 zoning district but that the language could be removed for the Gateway Business and B-3 zoning districts. Councilmember Fabel commented given the concerns regarding odor, perhaps cannabis retail, microbusiness and mezzobusinesses should be limited to the B-4 zoning district. Mayor Grant supported the City putting proper regulations in place with the understanding the Council could always revisit the matter at a future date. Councilmember Holden believed it made more sense to allow retail sales in the B-4 zoning district versus the Gateway Business District because this area doesn't really have a small location and instead was full of warehouses with high ceilings. City Attorney Bjerkness stated after researching the matter further, she indicated the City cannot prohibit businesses with a microbusiness and mezzobusiness license. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to adopt Ordinance 2024-015 for Planning Case 24-019 regarding a Zoning Code Amendment to Chapter 13, Section 1305 to establish definitions for cannabis uses, 1320 to determine zoning districts for cannabis uses, and 1325 to establish performance standards for cannabis uses. ARDEN HILLS CITY COUNCIL—NOVEMBER 25, 2024 10 AMENDMENT: Councilmember Holden moved and Mayor Grant seconded a motion to amend Ordinance 2024-015, to prohibit cannabis uses in the B-3 zoning district. The motion carried 3-1 (Councilmember Rousseau opposed). AMENDMENT: Councilmember Holden moved and Councilmember Rousseau seconded a motion to amend Ordinance 2024-15, to prohibit cannabis mezzobusiness, cannabis microbusiness, and retail, cannabis sales in the Gateway Business District. Councilmember Fabel stated he would want to put off action on the Gateway Business District until he could visit this area. Councilmember Holden reported the businesses that would be allowed in the Gateway Business District would be the cultivation,manufacturing, and wholesale businesses. Councilmember Rousseau stated she agreed with this recommendation noting the Gateway Business District was not the right place for cannabis retail. Councilmember Holden called the question. The motion carried 3-1 (Councilmember Fabel opposed). AMENDMENT: Councilmember Holden moved and Councilmember Fabel seconded a motion to amend Ordinance 2024-015 Subdivision 3 Item J to have hours operation be from 10:00 a.m. to 9:00 p.m. Monday through Sunday. The motion carried (4-0). AMENDMENT: Councilmember Holden moved and Mayor Grant seconded a motion to amend Ordinance 2024-015, adding changes to Second 1325.047, Subdivision 3 adding the sign and security language from City staff. Mayor Grant reported security in retail cannabis establishments was very important. The motion carried (4-0). AMENDMENT: Councilmember Holden moved and Mayor Grant seconded a motion to amend Ordinance 2024-015, removing the language within Subdivision 3,Item K. The motion carried (4-0). Mayor Grant asked if a buffer zone was required around Bethel University. Consultant Planner Hofer stated the buffer allowed by State statue is somewhat unclear as to how it will be applied to post-secondary institutions. He indicated the proposed buffers are only for elementary,junior high, and senior high schools. The amended motion carried 3-1 (Councilmember Rousseau opposed). ARDEN HILLS CITY COUNCIL—NOVEMBER 25, 2024 11 MOTION: Councilmember Holden moved and Councilmember Rousseau seconded a motion to authorize staff to publish a Summary Ordinance of 2024-015. The motion carried (4-0). 12. UNFINISHED BUSINESS None. 13. COUNCIL COMMENTS Councilmember Rousseau explained City Council certified Planning Commissioner Weber for a four-year term on the City Council. She thanked Mr. Weber for his continued desire to serve the City of Arden Hills and stated she looked forward to serving with him over the next four years. Councilmember Fabel concurred with Councilmember Rousseau's comments. Councilmember Holden congratulated herself for being reelected to the City Council for another four years. Councilmember Holden thanked Sue O'Brien for doing the floral gardens within the townhome association. Councilmember Holden indicated she was very proud of Sea Cadet Josef Jirik for being promoted to Chief. Mayor Grant wished everyone a Happy Thanksgiving. ADJOURN MOTION: Councilmember Holden moved and Councilmember Rousseau seconded a motion to adiourn. The motion carried (4-0). Mayor Grant adjourned the Regular City Council Meeting at 8:46 p.m. JuU Hanson David Grant City Clerk Mayor