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HomeMy WebLinkAbout05-12-25-R 'It ,-ARZEN HILLS Approved: June 9, 2025 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING MAY 12, 2025 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 Brenda Holden, Tena Monson, Emily Rousseau and Kurt Weber Absent: None Also present: City Administrator Jessica Jagoe; Public Works Director/City Engineer David Swearingen; Finance Director Joua Yang; and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Monson requested to pull Items 8E and 8F from the Consent Agenda for discussion at Items 9A and 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 City Administrator Jagoe stated the Joint Development Authority met on May 5t'. Agenda items were a Communications Report, 2025 Budget Amendment and review of the Road Map. The budget amendment includes the additional scope for green energy and sustainability work contracted with LHB over two years that includes support on implementation of the Sustainability Design Guidelines with developers and the waiver process and community engagement. Additionally, the amendment also reflects a grant awarded to the project through the Department of Commerce to provide financial assistance to examine the technical and economic feasibility of installing geothermal energy systems. ARDEN HILLS CITY COUNCIL—MAY 12, 2025 2 On May 71h, the JDA Advisory met with Alatus to discuss the framework of the 2023 term sheets items that need to be structured for the development agreement. The Preliminary Development Agreement expires June 30th. JDA staff restated the need for the information on what, when, and where of the vertical development in order to have an understanding and discussion on private and public financing. Alatus agreed to provide a development plan and anticipated phasing as well as a response to the County's prevailing wage ordinance and a justification for an exception if they are asking for that on any part of the vertical development before the next advisory meeting. The Energy Advisory Committee has not met since the last Council meeting. Advisory committee meetings as they are scheduled, will continue to be posted on the City's website. Councilmember Holden questioned if a financial review has been done by the City or County. City Administrator Jagoe commented she did not believe this had been done by the JDA but noted this was being done by the County as part of the purchase and sale agreement. Councilmember Holden inquired where Ryan Companies would be getting water for the loop system on Outlot A. City Administrator Jagoe and Councilmember Monson explained the water would be coming from geothermal wells. Councilmember Holden asked if this well system had been approved by the Army Corps of Engineers. City Administrator Jagoe stated the developer would have to go through the permitting process as part of the sustainability guidelines. Mayor Grant commented June 30 was the deadline for the agreement with Alatus. He explained if the City reaches this deadline, he recommended communications with Alatus cease so as not to expose the City to an agreement without any conditions. He recommended any extension be considered 10 days in front of June 30 to ensure an extension is in place by June 30. He reported if the City were to go beyond June 30, litigation could happen. Councilmember Weber did not believe it was advisable for the City Council to be discussing this matter at this time, noting the City was in a good faith negotiation timeframe with Alatus at this time. Councilmember Monson indicated conversations were moving quickly and information was flowing between the JDA and the developer, which was a positive outcome. She commented the City received a grant for $72,000 for the geothermal planning. She discussed the groundbreaking ceremony that was held for Outlot A. Councilmember Holden stated she believed the Mayor should be able to make comments when he has concerns regarding the City and the City's position. 3. PUBLIC INQUIRIES/INFORMATIONAL ARDEN HILLS CITY COUNCIL—MAY 12, 2025 3 None. 4. RESPONSE TO PUBLIC INQUIRIES None. 5. PUBLIC PRESENTATIONS A. Twin Cities Gateway Al Stauffacher, Twin Cities Gateway (TCG) President/CEO, provided the Council with a presentation from TCG, which now includes 11 communities. He discussed the mission of TCG, which was to inspire visitors to discover the vibrant TCG communities to enhance economic growth/vitality. He reported that TCG's vision was to serve as a premier tourist destination, showcasing ultimate sports, the rich culture, and natural beauty of the Gateway communities. Lisa Berkas, TCG Marketing Director, commented on TCG's strategic plan for the next three years, noting that the goals were to increase visitors, to be welcoming to all, to achieve organizational stability and growth, and to increase partnerships and collaborations. She explained the State of Minnesota had $24.2 billion in total economic impact for 2024. Mr. Stauffacher explained there were 25 lodging properties located within the 11 member cities and noted Arden Hills was fourth in lodging tax. He provided further information on the TCG Executive Board, noting this group met quarterly. He stated Arden Hills was represented by Mayor Grant and John Connelly who worked for the North Chamber of Commerce. He commented on how his office ran lean and mean with only two individuals in the office. He discussed how the local lodging taxes were returned to member cities to advertise, market and promote city events. He explained Arden Hills would be receiving $19,375 in grant funding in 2025. Ms. Berkas commented further on the marketing plan for the coming year. She discussed the social media and email marketing efforts the TCG was pursuing. She presented the Council with information on TCG's new logo. She reviewed data of where people were coming from and how they were spending their dollars in the community. Mr. Stauffacher discussed his sports marketing efforts, noting he meets with all City Park Directors annually and he attends all major sports tourism conferences. He reported the 2024 USA Cup was the largest in history and reported Arden Hills had 499 rooms from this event. He commented on the Minnesota Ice Swim and Norwegian Foot March events that were held in Arden Hills and explained he would be working to assist in growing these events in 2026. Councilmember Holden asked if Boston Scientific still held their yearly tours for those individuals with pacemakers and stated if this was still done, she encouraged TCG to speak with this organization about setting up a larger event. Mr. Stauffacher indicated he would speak with Boston Scientific about this event. Councilmember Weber requested further information regarding the regional grant opportunities that were available for tourism events. ARDEN HILLS CITY COUNCIL—MAY 12, 2025 4 Mr. Stauffacher discussed how the applicants for regional grants should go through the TCG and noted the funding was provided on a 1:1 match. B. Proclamation Recognizing May 18-24, 2025 as National Public Works Week Mayor Grant read a proclamation in full for the record declaring May 18 through May 24, 2025 to be National Public Works Week in the City of Arden Hills. MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to adopt a proclamation recognizing May 18-24, 2025 as National Public Works Week. The motion carried (5-0). C. Proclamation Recognizing May 11-17, 2025 as National Police Week Mayor Grant read a proclamation in full for the record declaring May 11 through May 17, 2025 to be National Police Week in the City of Arden Hills. MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to adopt a proclamation recognizing May 11-17, 2025 as National Police Week. The motion carried (5-0). 6. STAFF COMMENTS None. 7. APPROVAL OF MINUTES A. April 14, 2025, City Council Work Session B. April 14, 2025, Regular City Council C. April 28, 2025, Regular City Council MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the April 14, 2025, City Council Work Session minutes as amended, the April 14, 2025, Regular City Council meeting minutes as presented and the April 28, 2025, City Council Work Session minutes as amended. The motion carried (5-0). 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion to Approve First Quarter Financials C. Motion to Approve Appointment of Senior Communications Coordinator D. Motion to Approve Purchase of Portable Pickleball Nets E. Motion to Approve Resolution 2025 041 Aeeeptiag Donations from--Bt13e1 ARDEN HILLS CITY COUNCIL—MAY 12, 2025 5 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 Approve Resolution 2025-041 Accepting Donations from Bethel University and Kerri Seemann Councilmember Monson discussed the Summer Passport program, which would be held in the Arden Hills parks throughout the summer. She thanked Kerri Seemann for her ongoing volunteer efforts and her donation of native plants. Councilmember Holden stated she had a small problem with the proposed prize language. She clarified that individuals will receive a small bottle of water for participating, and then all participants will be entered into a drawing for a prize. MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion to Approve Resolution 2025-041, Accepting Donations from Bethel University and Kerri Seemann. The motion carried (5-0). B. Motion to Accept Proposal for Consulting Services from Hue Life for Strategic Planning Services Councilmember Monson stated the Council would be working with Hue Life on strategic planning services. She looked forward to the Council coming together to assist with setting priorities for the City for the next few years. Councilmember Holden reported the Council would be working to set clear goals for the next two to three years. MOTION: Councilmember Monson moved and Councilmember Weber seconded a motion to Accept Proposal for Consulting Services from Hue Life for Strategic Planning Services. The motion carried (5-0). 10. PUBLIC HEARINGS None. 11. NEW BUSINESS None. 12. UNFINISHED BUSINESS A. Resolution 2025-040 Amending Resolution 2025-007 to Modify Language of Conditions 28 and 29 in the Conditions of Approval of Planning Case 24-018— Trident Development ARDEN HILLS CITY COUNCIL—MAY 12, 2025 6 City Administrator Jagoe stated in an April 22, 2025 narrative letter to the City Council, Attachment A, Trident Development (the "Developer") proposed to make a financial contribution in the amount of$90,000.00 toward the cost of the 1,373-foot trail at 1700 Highway 96 W (the "Subject Property") in place of bearing the total expense of the trail as required in Condition 28 of Resolution 2025-007. The City Council reviewed the Developer's request and the adoption of Resolution 2025-040 with an amendment to Condition 28 at the April 28, 2025 City Council meeting and the staff report for this request is included as Attachment B. Resolution 2025-040 also included updated language to Condition 29, which references a 396-foot trail segment associated with the Development. City Administrator Jagoe reported discussion was had about the amount of the proposed financial contribution. The Council discussed if the Developer could commit to increasing the financial contribution to which the Developer stated they could agree to a $100,000.00 contribution but would need to discuss any increases above $100,000.00 with the Development's financial partners. The City Council passed a motion to table the request to discuss at the next City Council meeting on May 12, 2025. The Developer has submitted a new proposal. The Developer proposes to make a$200,000.00 financial contribution to the cost of the trail. City Administrator Jagoe explained as established in Conditions 26 and 27 of Resolution 2025- 007 the Developer would pay a total of $1,223,500.00 in residential dedication and park development fees. The fees are calculated based on the fair market value of the Subject Property and the number of residential units. The fair market value of 20% of the land that would otherwise be dedicated to the City is $450,000. The total park development cash contribution in lieu of land based on the proposed 119 units is $773,500.00. Staff reviewed the total fees in further detail with the Council. City Administrator Jagoe reviewed the options available to the City Council, noting the Council could approve Resolution 2025-040 with the revised Conditions 28 and 29 based on the City Council approval of Planning Case 24-018 on January 13, 2025. Condition 28 to read: "The Applicant shall install at their expense a trail along Snelling Avenue and within Snelling Avenue right-of-way, adjacent to the Subject Property, which shall be approximately 1,373 feet in length to serve as a connection to Royal Hills Park and consistent with City Code requirements. The final location and specifications of the trail connections shall be approved by the PW Director/City Engineer and Community Development Director. The costs in excess of $200,000 incurred to the Applicant for the installation of the approximately 1,373 feet will be deducted from the Applicant's park development fee." Condition 29 to read: "The Applicant shall install a trail along Snelling Avenue and within Snelling Avenue right-of-way, adjacent to Ramsey County PID 213023110007, which shall be approximately 396 feet in length to serve as a connection to Royal Hills Park and consistent with City Code requirements. The final location and specifications of the trail connections shall be approved by the PW Director/City Engineer and Community Development Director. The costs incurred to the Applicant for the installation of the approximately 396 foot long trail will be may be deducted from the Applicant's park development fee." ARDEN HILLS CITY COUNCIL—MAY 12, 2025 7 Councilmember Monson asked if the estimated trail costs of$442,000 included trail design and engineering. Public Works Director/City Engineer Swearingen reported this amount includes soft costs and construction of the trail from start to finish. Councilmember Monson inquired if the City would be completing the work, or would the trail be completed by the developer. Public Works Director/City Engineer Swearingen stated this would be determined by the City Council, but noted the trail would have to be built to State Aid standards. Councilmember Holden questioned if it would be reasonable to have the developer complete the trail given how they will have equipment in the area to install the parking lot. Public Works Director/City Engineer Swearingen commented the City would have to complete the design work. He noted he was uncertain of what the developer's timeline would be. He indicated the City could consider doing the trail work as part of the 2026 PMP if the Council wanted the City to complete the work. Councilmember Holden supported the developer completing the work. Mayor Grant indicated the Russian Orthodox Church trail portion would be a City obligation. He stated the 1,373 feet of trail comes to $343,000 of which the applicant has come forward with $200,000. Councilmember Rousseau asked if the Council had discussed a timeline for this trail. Public Works Director/City Engineer Swearingen stated the City Council had not set a timeline. Councilmember Rousseau supported the Council putting a timeline in place. Councilmember Weber agreed, stating he would like to have more information on the entire project schedule. City Administrator Jagoe commented the timing for the trail would be addressed within the development agreement. Mayor Grant stated he believed this made sense and encouraged staff to work on the timing for the trail within the development agreement. Councilmember Holden inquired if the City Council should make a decision on who was going to build the trail or should this be worked out by staff. City Administrator Jagoe explained the second to last sentence could read: the final location, specifications of the trail connections, and decision on whether the developer or the City to install the trail shall be approved by the Public Works Director or Community Development Director. ARDEN HILLS CITY COUNCIL—MAY 12, 2025 8 Councilmember Monson indicated she would prefer to have a decision made on who would be constructing the trail in order to provide specific direction for the developer. She commented she would prefer to have the developer install the trail. Councilmember Weber agreed the Council should make a decision on this matter. Mayor Grant stated he supported the developer completing the trail. Councilmember Monson recommended the language remain in place that states the developer shall install the trail. In addition, she recommended a timeline be placed in the condition, stating the trail shall be installed prior to a Certificate of Occupancy being issued. Councilmember Holden stated she preferred allowing the developer one year to complete the trail. Councilmember Rousseau asked what staff would prefer. Public Works Director/City Engineer Swearingen reported he has a team that understands the State Aid design guidelines for roadways and trails. He commented he was not that familiar with the applicant's engineering firm. He indicated there would be a lot of back and forth and he would have less control if the developer were to complete the trail. For this reason, he recommended the City complete the trail to ensure the trail followed the proper State Aid design guidelines. Mayor Grant suggested the trail be completed at the same time as the parking lot, if the developer were to complete this work. Councilmember Monson commented she could support staff s recommendation, noting this would change Condition 28. She indicated Condition 28 should be changed to read: Developer will fund up to $200,000 towards the approximately 1,373 feet of trail that will not be deducted form the park fee. Councilmember Weber stated the City would be paying for the trail, with the exception of the $200,000. Councilmember Holden supported the City building the trail as proposed by the Public Works Director to ensure the proper guidelines are followed in a timely manner. Mayor Grant explained that of the $343,000 for the 1,373 trail section, the developer would be paying $200,000, and the remainder would be taken from park dedication fees. He indicated it would be the Council's preference to have the City complete the trail. Councilmember Monson recommended Condition 29 be struck entirely and suggested Condition 28 read: Developer will fund up to $200,000 to the City for installation of trail along Snelling Avenue. Councilmember Weber supported this recommendation. Councilmember Holden recommended the $200,000 be used for the trail. ARDEN HILLS CITY COUNCIL—MAY 12, 2025 9 Mayor Grant supported the development agreement speaking to the $200,000 from the developer being used for the trail. He reported the City Attorney would be drafting a development agreement that reflects the comments being made by the City Council at this meeting. Councilmember Rousseau indicated she would like to change the $200,000 payment from the developer to $250,000. She commented she would like to see this amount increased slightly because staff would now be completing the work. Councilmember Weber stated he would support this recommendation. Councilmember Monson questioned if there was any way to have the trail installed in 2026. Councilmember Weber commented he supported the trail being constructed in 2026 as well. Councilmember Holden indicated she believed the additional $50,000 should not be required from the developer. She discussed how it would cost the City more if the trail were installed by Trident because the plans would have to be double-checked. Mayor Grant explained he believed $200,000 was a reasonable number for the trail contribution. He discussed how this trail property was currently owned by the church and once the trail was completed, would be available to the public. He reported he did not want this project held up by requiring an additional $50,000 from the developer. He supported moving this project forward and he appreciated the fact the developer was coming forward with $200,000 out of the $343,000 expense. Councilmember Holden expressed concern with the fact that developers may find it difficult to develop in Arden Hills. She noted the Planning Commission had previously raised concerns about the building being too high or that there was too much tree loss. Councilmember Weber reported these concerns were raised by residents in the community and explained these residents felt they had been ignored by the developer. Councilmember Monson stated she was concerned about the Council setting a precedent and she questioned how many units $50,000 was worth. She recalled that the City approved the additional density of 17 units within this development and expected a trail in return. She indicated she could support this item moving forward with the developer paying somewhere between $200,000 and $250,000. Councilmember Rousseau commented she would be willing to support requiring a payment of $225,000 from the developer. Councilmember Weber stated he could support this recommendation. Mayor Grant supported the City keeping the payment from the developer at $200,000. ARDEN HILLS CITY COUNCIL—MAY 12, 2025 10 MOTION: Mayor Grant moved and Councilmember Holden seconded a motion to adopt Resolution 2025-040 Amending Resolution 2025-007 to Modify Language of Conditions 28 and 29 in the Conditions of Approval based on the City Council approval of Planning Case 24-018 on January 13, 2025 requiring the City to build the trail. Mayor Grant asked the developer to come forward to speak to the payment amount for the trail. Roger Fink, Trident Development, explained his original plan for this development was to come forward with 128 units because this met the density guidelines. He reported the number of units had to be reduced, along with the land costs, but noted the construction costs per unit remained as is. He stated the project had to be put on hold when interest rates and construction costs increased. He indicated he was now bringing the project forward noting the project barely pencils now. He commented on how the trail expense would be eating into the return on investment. He expressed frustration with the fact that when he was previously asked to increase the trail allotment from $100,000 to $200,000, he had the understanding he would then receive approval, only to now have the Council proposing the amount be increased to $250,000. He stated this project was out of money and he could not do this anymore. He indicated he was pleased with the Council's decision to have the City complete the trail. Councilmember Monson stated the motion on the floor was to keep the developer's contribution towards the trail at $200,000 with the City completing the trail. Mayor Grant reported this was the case. AMENDMENT: Councilmember Monson moved and Councilmember Holden seconded a motion to strike Condition 29. A roll call vote was taken. The motion carried (5-0). Councilmember Monson indicated she would be supporting the motion as proposed by Mayor Grant. She called the question. A roll call vote was taken. The amended motion carried 4-1 (Councilmember Weber opposed). 13. COUNCIL COMMENTS Councilmember Rousseau explained it was brought to her attention that a group of six to eight individuals in an unmarked vehicle stopped a commercial vehicle and removed this individual. She commented it was believed this was ICE enforcement actions, but reported the City has not received any communications regarding this immigration enforcement action. She requested the Ramsey County Sheriff's Office attend a future meeting in order to discuss the event and provide information on reporting expectations. Councilmember Weber stated he supported this recommendation. Councilmember Weber reported the Planning Commission met last week, where a variance request was discussed, along with the thrift use ordinance. ARDEN HILLS CITY COUNCIL—MAY 12, 2025 11 Councilmember Holden reported the gardens on Highway 96 and at City Hall were in great condition. She thanked staff for their efforts. Councilmember Holden stated there was a fire at TCAAP and this was reported on the 6:00 news. Councilmember Holden questioned when the Council had to make a decision on the court striping at Hazelnut Park. Public Works Director/City Engineer Swearingen explained this work would be completed along with the Hazelnut Park parking lot. He recommended the Council address this topic along with the Parks System Master Plan. Councilmember Monson asked that the City Council receive a presentation on fair housing. Councilmember Monson explained she supported the City Council receiving a presentation from the Sheriff's Department on what happens locally when it comes to ICE. Councilmember Monson questioned when the bollards would be replaced. Public Works Director/City Engineer Swearingen commented the bollards would be replaced once the street sweeping operations were completed by the County. Councilmember Monson encouraged the public to attend the Touch a Truck event at Perry Park on Saturday, May 17 from 10:00 a.m. to 1:00 p.m. Councilmember Monson explained there would be a groundbreaking event for the new fire station on Thursday, May 22 at 1:00 p.m. Mayor Grant explained that the City Council attended a groundbreaking ceremony for Outlot A within Rice Creek Commons and welcomed Micro Controls to Arden Hills. Mayor Grant reported he attended a nine-cities meeting where Flock cameras and municipal cannabis licenses were discussed. Mayor Grant stated he looks forward to attending the groundbreaking ceremony for the new fire station. He thanked everyone who had a part in getting this new station approved. Finance Director Yang provided information on the debt financing for the City's share of the new fire station. She explained on Monday, April 28 the City awarded the sale of$2.9 million in general obligation improvement bonds. She congratulated the City for receiving a AAA bond rating prior to the bond issuance. Mayor Grant stated in 2012 the City of Arden Hills put a number of financial policies in place to assist with strengthening the City's financial position. He explained there were not many cities with a population under 10,000 that have a AAA bond rating. He stated he appreciated the fact the City has stood by the financial policies that were put in place 10+ years ago. ARDEN HILLS CITY COUNCIL—MAY 12, 2025 12 Councilmember Holden asked how much the City would be paying in interest on the $2.9 million bond. Finance Director Yang estimated the City would be paying $1.1 million in interest. ADJOURN MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion to adiourn. The motion carried (5-0). Mayor Grant adjourned the Regular City Council Meeting at 9:00 p.m. Jul' Hanson David Grant City Clerk Mayor