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HomeMy WebLinkAbout07-27-26-R75 Years ' Approved: August 24, 2026 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING JULY 27, 2026 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; City Attorney Cynthia Kirchoff, Public Works Director/City Engineer David Swearingen; Community Development Director Jacob Reilly; and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Holden requested Item 8E and 8F be pulled from the Consent Calendar for discussion as Items 9A and 9B. She requested Item 6D be added to the agenda to allow for a Recap on the 75th Anniversary Celebration. MOTION: Councilmember Holden moved and Councilmember Weber 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 and neither of the advisory committees have met since the last Council meeting. The next JDA meeting will be on Monday, August 3Td at 5:30. 3. PUBLIC INQUIRIES/INFORMATIONAL ARDEN HILLS CITY COUNCIL — JULY 27, 2026 2 Kim Sawtell, 3637 Hamline Avenue North, explained she was in attendance on behalf of her whole street. She indicated she and her neighbors have concerns with the noise produced by the Genesis Event Center. She stated this business was generating a great deal of noise until 2:30 a.m. and sometimes 3:00 a.m. She reported she has spoken with the business owner and no changes have occurred. She requested the Council address this concern and require this business to follow the City's noise ordinance. 4. RESPONSE TO PUBLIC INQUIRIES None. 5. PUBLIC PRESENTATIONS A. Deputy State Fire Marshal Update Deputy State Fire Marshal Doug Johnson introduced himself to the City Council and noted he was a proud member of the Lake Johanna Fire Department. He provided the Council with a presentation on ways to keep seniors in the community safe and independent. He commented on the importance of cooking safety and having a fire extinguisher in the home. He reported fire deaths were on the rise and he would like to see this reduced in the State. He provided further information on why older adults were vulnerable to house fires. He recommended homes have smoke detectors in every bedroom as well as a carbon monoxide detector in the house. He encouraged all residents to have an escape plan in place, that includes family pets and once residents are out of their house they are to stay out. Mayor Grant thanked Deputy Fire Marshal Johnson for his presentation. 6.' STAFF COMMENTS A. Transportation Update Public Works Director/City Engineer Swearingen reported Xcel Energy was continuing with the installation of a 20" gas main along Highway 96 from 35W to Lexington Avenue. He noted the project would last into late fall. Public Works Director/City Engineer Swearingen stated the contractor has begun paving within the Karth Lake neighborhood and will begin utility improvements on Cummings Drive within the 2026 Street PMP project. Public Works Director/City Engineer Swearingen explained Highway 51 has a southbound right lane closure at this time and this will last through early August. He reported construction is expected to continue throughout the summer into the fall. Mayor Grant asked if MNDOT was being careful around the storm sewer line on Highway 51. Public Works Director/City Engineer Swearingen stated MNDOT's work in this area was complete and there were no impacts on the City's line. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 3 Councilmember Holden reported all of the driveways have been marked on New Brighton Road. She questioned when paving would begin on New Brighton Road. Public Works Director/City Engineer Swearingen indicated staff held the first meeting with the contractor today and the work scheduled for Arden Hills would not begin until September. He suggested residents with questions reach out to Ramsey County Public Works. Councilmember Weber noted he received a call from a resident with concerns trying to make a left onto Glen Hill or making U-turns. He understood the left turn lane has been fully closed. Public Works Director/City Engineer Swearingen reported this was the case noting the closure of the left turn lane would stop the U-turns from occurring. B. Night to Unite Proclamation Mayor Grant read a proclamation in full for the record declaring Tuesday, August 4 as Night to Unite in the City of Arden Hills and encouraged all residents to get to know their neighbors by participating in a Night to Unite block party. C. Elections Update Assistant to the City Administrator/City Clerk Hanson provided the Council with an update on the upcoming elections. She reported voting by absentee ballot was underway and discussed how residents could request an absentee ballot through the Ramsey County Elections Office. She reviewed the locations where ballots could be placed in a ballot box. She explained the Primary Election would be held on Tuesday, August 11. She indicated the City would have three Council seats on the November ballot, those being the Mayor and two Councilmembers. She stated candidate filing packets could be found online at the Minnesota Secretary of State's website or paper packets were available at City Hall, noting the filing period closes on Tuesday, July 28. D. Recap on 75th Anniversary Celebration Councilmember Holden thanked the residents of Arden Hills for attending the 75th Anniversary Celebration on Friday, July 17. She thanked City staff and especially City Clerk Hanson for all of her planning efforts. Councilmember Weber thanked City Clerk Hanson for her work on the 75th Anniversary. He appreciated the excellent turnout at this event and stated he would like to receive a full accounting for this event. Mayor Grant thanked staff and the volunteers that made the 75th Anniversary Celebration possible. He explained he had received many compliments regarding the drone show. He stated he would like to see an accounting from this event as well. Councilmember Rousseau thanked staff and the planning committee for all of their efforts. She suggested staff and the committee provide the Council with the lessons learned from planning this event. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 4 Councilmember Monson thanked staff and everyone who served on the planning committee. She appreciated the passion and skills from those serving on this committee. She stated she had a great deal of fun attending the 75th Anniversary Celebration with her family. Councilmember Holden appreciated how enough funding was raised to cover the expenses for this event. She discussed how other cities who hold yearly celebration events had committees or foundations in place to complete the planning efforts versus being lead by City staff. 7. APPROVAL OF MINUTES A. June 22, 2026, City Council Work Session B. June 22, 2026, Regular City Council MOTION: Councilmember Holden moved and Councilmember Weber seconded a motion to approve the June 22. 2026. Citv Council Work Session meetinp, minutes and June 22. 2026, Re�tgular City Council meeting minutes as presented. The motion carried (5-0). 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion to Approve the State of the City Policy C. Motion to Approve Professional Services Agreement with SRF Consulting Group, Inc. — Snelling Avenue and Royal Hills Trail Improvements Project D. Motion to Approve Quote from Electric Pump for Rehabilitation Project Parts — Lift Stations No. 1 and 4 G. Motion to Approve Arden Hills Public Works Design Manual 2026 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 (LL 9. PULLED CONSENT ITEMS A. Motion to Approve Cooperative Agreement between Ramsey County and City of Arden Hills for Rice Creek Boulevard Public Works Director/City Engineer Swearingen stated on June 22, 2026, the City Council received a presentation from Ramsey County and engineering consultant Kimley-Horn related to the Rice Creek Boulevard improvement project. This discussion included review of a draft final Cooperative Agreement which included language on the County's recovery of trunk utility costs. On July 6, 2026, Ramsey County received direction from the Joint Development Authority (JDA) for the proposed enhanced landscaping features and pedestrian lighting as they relate to the Rice Creek Boulevard project corridor. The decision was to remove those items from the overall roadway project and create a separate bid package for installation in 2027-2028. The landscape ARDEN HILLS CITY COUNCIL — JULY 27, 2026 5 surface coverage, streetligbts, light junction boxes, and the electrical conduit for the pedestrian lights will still be installed with the Rice Creek Boulevard construction. Public Works Director/City Engineer Swearingen reported based on the feedback received from these reviews, City and Ramsey County Staff have negotiated the final Cooperative Agreement. The City Attorney has reviewed the Cooperative Agreement and recommended language on the County's recovery of trunk utility costs has been incorporated within as it relates to Section 7. City staff recommends the City Council approve the Cooperative Agreement between Ramsey County and the City of Arden Hills for Rice Creek Boulevard. Councilmember Holden stated it was her understanding the city would be accepting the responsibility of the trails, utility, landscaping and lighting once the construction was completed. She stated this would mean the city was responsible for the maintenance until construction began on the overall project and questioned when the actual transfer would take place. Public Works Director/City Engineer Swearingen explained this was outlined in the agreement, noting maintenance and ownership responsibilities will be turned over to the City once the punch list and warranty issues are fulfilled. He indicated the County would see to the maintenance of the landscaping through the warranty period, which was two years. He noted the City would be responsible for maintaining the trail spaces and utilities upon completion of the project. Councilmember Holden reported it would be in the City's best interest to set funding aside for maintenance of these areas even before anything was built within the development. She stated she was concerned about the expenses the City would be incurring. Councilmember Monson highlighted this was an important step for Rice Creek Commons. She noted Outlot A had a building and a second building would be constructed in short order. She indicated this road was required in order to get any type of development done on the California parcel. She thanked the County for working with the city and for covering the costs of this project. She noted the County had funding open up and she appreciated the County's commitment to getting this project done. Mayor Grant reported this agreement appears to mirror the agreement that was drafted in 2016 for Outlot A. Public Works Director/City Engineer Swearingen explained the agreement mirrored how the utility construction costs would be recouped through the sale of the land. Mayor Grant commented in reading through the agreement he had issues with the fiber channel. He asked if staff had a chance to look through this portion of the agreement. He noted the City paid for and owns the fiber channel on Outlot A and wanted to ensure the same arrangement was in place for the California parcel. Public Works Director/City Engineer Swearingen stated the plan for the Rice Creek Boulevard includes fiber conduit that would be dedicated to the City. Mayor Grant inquired if the County would be installing the conduit and turning it over to the City. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 6 Public Works Director/City Engineer Swearingen reported this was the case. Mayor Grant stated in this agreement the County would be reimbursing the City for the watermain project that was completed across from Bethel University in order to support this project. He questioned when the City would be reimbursed for this project. Public Works Director/City Engineer Swearingen commented once the construction contract was awarded for Rice Creek Boulevard, the City could request reimbursement from the County. He anticipated this would take place in early 2027. MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion to Approve Cooperative Agreement between Ramsev Countv and City of Arden Hills for Rice Creek Boulevard. A roll call vote was taken. The motion carried (5-0). B. Motion to Approve Adoption of Election Sign Policy Councilmember Holden reviewed the proposed language changes within the election sign policy. She questioned if a resident complaint has to be received in order for a safety violation to occur. Community Development Director Reilly explained the intent was that a sign may be removed immediately only in those cases and could be removed by any City staff person who identified a problem as listed there. Councilmember Holden reported this was not what the policy states. Community Development Director Reilly directed the Council to Page I of the election sign policy and clarified the language regarding complaints and when a sign may be removed. Councilmember Holden stated this would mean a complaint does not have to be made in the event of a safety issue. Community Development Director Reilly reported this was the case. Councilmember Holden asked if public works staff will remove election signs that they deem unsafe. Community Development Director Reilly explained staff could be instructed to remove unsafe election signs. City Administrator Jagoe reviewed the first three bullet points on page three noting a process was in place when complaints are received by the City. She indicated the City would not be actively going out and patrolling election signs. However, if a staff member sees an election sign on City property, they would be directed to remove it. Councilmember Monson stated she read the language as if there is a complaint the three bullets are followed and if there is not a complaint the sign can be removed based on the next four bullets, which was a safety hazard. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 7 Councilmember Weber thanked staff for the clarification. Councilmember Holden clarified signs would only be removed after complaints are received. She appreciated the language proposed by Councilmember Monson, noting signs would be removed by City staff if. She asked if the language within the policy was clear enough for staff. City Attorney Kirchoff reported in reading the election sign policy it was implied staff may remove the sign immediately. Councilmember Holden asked what the earliest date was for election signs to be posted by City Councilmembers. Community Development Director Reilly explained signs could be posted by Council candidates 70 days before the general election and races with a primary could have signs posted 46 days prior to the primary election. Councilmember Holden called the question. MOTION: Councilmember Holden moved and Councilmember Rousseau seconded a motion to Approve Adoption of Election Sign Policy. The motion carried (5- 10. PUBLIC HEARINGS A. Planning Case 26-013 — 1300 Grey Fox Road — Powder Technologies — Conditional Use Permit Community Development Director Reilly stated EFH Co. ("The Applicant") is requesting a Conditional Use Permit and Site Plan Review to create an internal drive lane with the addition of 6,098 square feet of pavement on the existing 6.55-acre parcel at 1300 Grey Fox Road ("Subject Property"). The proposed constitutes a substantial modification to the existing Conditional Use Permit and Site Plan regulating the site, triggering amendments and City review. The proposal adds 6,098 square feet of pavement to create an internal drive lane. Landscaped area is proposed to be removed between the two existing parking areas and from a portion of the parking "peninsula" separating the east parking area from the east loading dock. The proposal will connect the two separate halves of the existing parking and loading area to accommodate truck maneuvering and circulation on the site Community Development Director Reilly explained the Applicant's narrative notes that site conditions require delivery trucks to back into the site directly from Grey Fox Road to access the loading docks. The proposal would allow trucks to enter the site in a forward direction, circulate internally, and back into loading docks entirely on -site. The proposal increases the established parking and loading area of 43,851 square feet by 6,098 square feet, bringing the percentage of parking/loading area to area of principal uses to 58.1%. The drive lane requires the removal of three (3) parking spaces on the site, bringing the total parking spaces on the site to 82 parking spaces. The Applicant is not requesting any changes to the established warehouse or office use areas within the building. An interior office remodel is anticipated in 2026 to accommodate expanded operations at the site. Those changes would not alter the nature or intensity of the approved uses. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 8 Community Development Director Reilly reviewed the history of the subject property, the Plan Evaluation and offered the following Findings of Fact: 1. The Applicant is a representative for the owner and occupant of the subject property located at 1300 Grey Fox Road, Arden Hills, MN. 2. The Subject Property is designated as Light Industrial & Office (IND) in the 2040 Comprehensive Plan. 3. The Subject Property is zoned I -FLEX Zoning District. 4. A warehouse requires a conditional use permit in the I -FLEX District. 5. The Applicant applied for a site plan review and conditional use permit to create an internal drive lane with the addition of 6,098 square feet of pavement at 1300 Grey Fox Road. 6. The Applicant proposes to remove 46 caliper inches of significant trees, to be replaced in accordance with City requirements, and to remove three parking spaces. 7. The Applicant states that the site can support up to 87 parking spaces shown in the proof of parking and that this number exceeds the parking needs for the approved operations at the site, based on the average need of 25 parking spaces. 8. The proposed plans will not result in insufficient parking for the uses permitted under the amended conditional use permit. 9. The proposed plan will not result in the subject property exceeding the maximum impervious surface coverage permitted in the I -FLEX zoning district. 10. The proposed plan is not expected to have significant impact on traffic or parking conditions. The proposed plan is intended to improve traffic circulation conditions both on the subject property and the adjacent public street, Grey Fox Road. 11. The proposed use is not anticipated to create a negative impact on the immediate area or the community as a whole. 12. The proposed plan will not produce any permanent noise, odors, vibration, smoke, dust, air pollution, heat, liquid, or solid waste, and other nuisance characteristics. 13. The proposed plan does not conflict with the general purpose and intent of the Zoning Code or the Comprehensive Plan for the City. 14. A public hearing is required for a conditional use permit. 15. Property owners within 1000 feet of the subject property were notified of the application as established in city code. 16. The Planning Commission held the required public hearing on July 8, 2026. Community Development Director Reilly reported the Planning Commission reviewed this application at the July 8, 2026 meeting. At that time, they recommended approval of the conditional use permit request with seven conditions by a 6-0 vote. Staff recommended adoption of Resolution 2026-037, approving Planning Case 26-013 for a site plan review and a conditional use permit to create a new drive lane at 1300 Grey Fox Road, based on the findings of fact in the July 27, 2026, City Council report, subject to the following conditions recommended by the Planning Condition: 1. 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. 2. The proposed parking area shall conform to all other regulations in the City -Code. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 9 3. A Grading and Erosion permit shall be obtained from the city's Engineering Division prior to commencing any grading, land disturbance or utility activities. The Applicant shall be responsible for obtaining any permits necessary from other agencies, including but not limited to, MPCA, Rice Creek Watershed District, and MnDOT prior to the start of any site activities. 4. The final plans shall be subject to approval by the City Engineer, Building Official, and Fire Marshal prior to the issuance of a grading and erosion control permit. 5. Final grading, drainage, utility, and site plans shall be subject to approval by the Public Works Director, City Engineer, and Community Development Director prior to the issuance of a grading and erosion control permit or other development permits. 6. Upon completion of grading and utility work on the site, a grading as -built and utility as - built shall be provided to the City for review. 7. Heavy duty silt fence and adequate erosion control around the entire construction site shall be required and maintained by the Developer during construction to ensure that sediment and storm water does not leave the project site. An additional condition is presented for consideration: 8. If complaints demonstrate that future parking conditions create congestion in the public rights of way, the applicant shall stripe the five spaces at the southeast corner of the property as shown in Attachment G, Proof of parking. Mayor Grant encouraged the applicant to engage with the Fire Marshal early on in this development process. Councilmember Holden inquired if the building to the east was notified of this project. Community Development Director Reilly explained all properties within 1000 feet were notified of this project. Councilmember Holden discussed the number of semis that pass use Grey Fox Road on a daily basis. She inquired if the proposed development would create a traffic concern. Community Development Director Reilly indicated the proposed project is designed to solve the traffic concerns. Mayor Grant opened the public hearing at 8:17 p.m. Madison Whalen, EFH representative, explained the intent was to have all trucks pull forward into the loading docks without encumbering the street. Mayor Grant closed the public hearing at 8:18 p.m. MOTION: Councilmember Monson moved and Councilmember Weber seconded a motion to adopt Resolution 2026-037 for Planning Case 26-013 for a Conditional Use Permit and Site Plan Review at 1300 Grev Fox Road subject to conditions as listed. The motion carried (5-0). ARDEN HILLS CITY COUNCIL — JULY 27, 2026 10 B. Planning Case 26-018 — Zoning Code Amendment — Chapter 13, Section 1320.16 — Amending Requirements for Affordable Housing to Clarify Applicability to Rice Creek Commons • Ordinance 2026-014 Amending Chapter 13, Section 1320.16 — Requirements for Affordable Housing to Clarify Applicability to Rice Creek Commons • Publication of Summary Ordinance 2026-014 Community Development Director Reilly stated on April 27, 2026, the Arden Hills City Council, upon recommendation by the Planning Commission, adopted Ordinance 2026-007 amending Chapter 13, Zoning Code to add Section 1320.16 — Requirements for Affordable Housing to identify when and how affordable units may be required to be included in new housing developments and in rehabilitation of existing housing units, including regulatory incentives and provisions for enforcement. As stated in staff reports and in meetings, those affordable housing provisions were not intended to be applied to the TRC. Upon further review, the City Attorney recommends that language memorializing that intent be added for clarity. Staff reviewed the recommended changes from the City Attorney. Community Development Director Reilly reported the Planning Commission reviewed this application at the July 8, 2026, meeting. The Planning Commission voted 6-0 to recommend approval of Planning Case 26-018 as submitted and offer the following findings of fact for consideration: 1. The City of Arden Hills is proposing to amend ordinance language to clarify the applicability of Ordinance 2026-007 to the TRC. 2. The proposed ordinance will include amendments to the language of Chapter 13 — Zoning Code, Section 1320.16. 3. The City Council approved Ordinance 2026-007 amending Chapter 13 Zoning Code on April 27, 2026. 4. As stated in the record, the intent and purpose of said ordinance is to provide a requirement for affordable housing in new residential developments in areas of Arden Hills not regulated by the provisions of the TRC. 5. The proposed ordinance amendment is consistent with the City's Comprehensive Plan. 6. There is an adopted comprehensive plan policy and goal to require affordable housing at Rice Creek Commons: a. The City of Arden Hills 2040 Comprehensive Plan (2019) Land Use Chapter states, "Future development of TCAAP shall be subject to a term sheet for development to be known as Rice Creek Commons in order to meet the goals of the Comprehensive Plan with a requirement that 20% of housing units in the development must be affordable at 60% of Area Median Income or less." b. The Comprehensive Plan guides 15.9 acres at Rice Creek Commons at sufficient density to accommodate at least 373 units of housing affordable to those with incomes at or below 80% AMI. 7. Amendments to the Zoning Code regulations require a public hearing prior to action by the City Council. 8. The Planning Commission held the required public hearing at the July 8, 2026, regular meeting. ARDEN HILLS CITY COUNCIL - JULY 27, 2026 11 Community Development Director Reilly commented on the proposed Ordinance amendments further and recommended approval. Councilmember Rousseau asked if the language could transition from TCAAP to Rice Creek Commons within the TRC. City Administrator Jagoe explained the TRC refers to the TCAAP site and noted additional amendments would be required if all references were changed to Rice Creek Commons. Mayor Grant recalled a recommendation came from the City Attorney to keep the references consistent. Councilmember Holden indicated all contracts refer to TCAAP and Rice Creek Commons was the marketing name for the property. Mayor Grant opened the public hearing at 8:25 p.m. George Boyadjis, 1117 Benton Way, asked if this language would apply to Catholic Financial facility development at Lexington Avenue. Community Development Director Reilly indicated the inclusionary housing ordinance applies to the 3499 Lexington Avenue proposal because it proposes more than 20 units of housing. Mr. Boyadjis stated he did not support this particular project. He was very concerned about this development and how it would change the neighborhood. Mayor Grant closed the public hearing at 8:27 p.m. MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to adopt Ordinance 2026-014, amendments to CitN Zoning Code Chapter 13 within Section 1320.16 Requirements for Affordable Housin(-, to clarifv where Section 1320.16 applies. The motion carried (5-0). MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to Authorize publication of Summary, Ordinance 2026-014 pursuant to Minnesota Statutes Section 412.191. The motion carried (5-0). C. Planning Case 26-017 - Zoning Code Amendment Ordinance 2026-015 Amending Chapter 13, Section 1380 TCAAP Redevelopment Code to Amend Clear Height Definition and Loading Dock Requirements - Ryan Companies • Publication of Summary Ordinance 2026-015 Community Development Director Reilly reviewed the proposed ordinance amendments. The draft language provides a revised definition of clear height and for a greater maximum clear height in facilities that include a loading dock. Amendments to Section 1380 - TCAAP Redevelopment Code, are only applicable to projects associated with the Rice Creek Commons ARDEN HILLS CITY COUNCIL — JULY 27, 2026 12 area of Arden Hills. Section 4.0 - Definitions Current Language Clear Height is defined as, "The distance from the top of the finished floor to the bottom of the finished ceiling in portions of commercial buildings used for warehousing or manufacturing." The Applicant states that the experience developing the Micro Control Company site identified internal inconsistencies in the TRC associated with maximum building height, clear height, and the definition of clear height. Community Development Director Reilly explained the Applicant describes these two changes as being necessary to address the fact that the TRC as adopted has internal conflicts where the maximum building height is 15 stories and the maximum clear height for buildings with a loading dock is 24 feet, yet any building that is 15 stories tall requires a loading dock. Similarly, the code identifies two different definitions for clear height, one in 4.0 Definition as the top of the finished floor to the bottom of the finished ceiling and in 6.1 where the clear height maximum is established and clear height is described as being measured from the surface of the ground floor to the lowest point on the ceiling. These conflicts in the code therefore inadvertently limit the usefulness of buildings for the proposed uses identified in the TRC for Campus Commercial. Community Development Director Reilly reported the amendments as proposed, according to the Applicant, are simpler and clearer and will allow for flexibility for a potential tenant pool. The Applicant's materials described a 28-foot to 32-foot clear height as the market standard for the desired industrial uses. Staff is aware that one potential reason for establishing the 24-foot clear height is to minimize the likelihood of undesirable - industrial uses such as strict warehouse/packing/picking operations. Other provisions in the TRC offer additional parameters to minimize those types of project proposers' interest in the site, both for Outlot A and for the "California Parcel." Some of the other code provisions that limit the likelihood of those uses include a limitation on the number of loading dock bays per wall/fayade and a limitation on the size/percentage of warehousing uses overall. Community Development Director Reilly stated the Planning Commission reviewed this application at the July 8, 2026, meeting. The Planning Commission voted 6-0 to recommend approval of Planning Case 26-017 as submitted and offer the following findings of fact for consideration: 1. The Applicant is proposing to amend ordinance language in Chapter 13 — Zoning Code Section 1380 — TCAAP Redevelopment Code. 2. The proposed ordinance amendment aligns the definition and description of Clear Height with industry standards. 3. The Applicant states that the proposed ordinance language will address current industrial real estate market data and remove design constraints associated with mezzanine office configurations. 4. The proposed ordinance amendment would allow for a maximum clear height of 32 feet for facilities that include a loading dock. 5. The Applicant states that loading dock door dimensions and configurations will continue to follow standard industry dimensions. 6. The Applicant states that the proposed ordinance language does not impact design standards established in the TRC. 7. The proposed ordinance amendments are generally in the public interest and in keeping with the City's Comprehensive Plan. S. Amendments to the Zoning Code regulations require a public hearing prior to action by the City Council. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 13 9. The Planning Commission held the required public hearing at the July 8, 2026, regular meeting of the commission. Mayor Grant asked if this change would only apply to Campus Commercial zoning or all of TCAAP. Community Development Director Reilly commented this change would apply to Campus Commercial and any facility that has a loading dock in the area known as Rice Creek Commons. Mayor Grant questioned if the clear height might invite less desirable tenants. Community Development Director Reilly stated the proposed clear height may invite less desirable uses or users, such as warehouse uses. However, he was of the opinion this risk was very low, in part because other aspects of the code provide additional limitations. Councilmember Monson reported the City had a developer that was working to bring businesses to the City and they have made it clear that industrial and advanced tech, which has high paying jobs, require 32 feet to attract this type of tenant. She questioned what other kind of uses would require a 32 foot clear height. Community Development Director Reilly indicated an understanding that there was a fear that a warehouse -only operation might seek to locate within Rice Creek Commons like an Amazon Distribution Center. He noted there were several elements within the TRC that would make this less likely. He also noted someone would have to come and ask for more permission to do more things in order to operate a warehouse only (primary use) operation. Councilmember Monson replied that this then was not the only item in the ordinance that would preclude a distribution center. There are other tools within the code that would limit that,kind of user. Thank you very much for that. Councilmember Weber inquired if this request came forward from the developer to the JDA in a lessons learned document based on a market issue. Community Development Director Reilly reported this was the case. Councilmember Weber stated in his experience in working with Ryan Companies they have worked in good faith with the City of Arden Hills. Mayor Grant opened the public hearing at 8:39 p.m. Dan Mueller, Ryan Companies, thanked the Council for considering his request. He stated he greatly appreciated the relationship he has with the City. He indicated this request was due to a response to the market and would meet the needs of a med tech prospect he was hoping to bring forward. He stated this prospect would be requesting two floors of office and would create meaningful jobs in the community. Mayor Grant questioned if two stories of office could be built in 24 feet. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 14 Mr. Mueller explained the stories would get quite tight and noted the 32 feet would allow for higher ceiling heights and would meet the needs of the market. Mayor Grant reported so long as the request meets the requests of the TRC, this request would not have to come back before the City Council but rather would be considered by the JDA. Councilmember Holden inquired if the JDA was supposed to limit office in these buildings. Mr. Mueller stated this was not his intent. He reported he had not intended to scale back the percentage of office space. Mayor Grant commented the requested clear height was for the office space and not the warehouse area. Mr. Mueller explained the two spaces were within the same building and would be tied together. Mayor Grant inquired if the building height of the office space could be higher than the warehouse space. Community Development Director Reilly commented this could occur but noted that was not what was being requested. He stated it was his understanding the loading dock and the clear heights were intertwined together. He reported buildings with loading docks, as written today, could not have a clear height that was higher than 24 feet. He indicated many buildings constructed today have loading docks with both warehouse and office space and the request was to have a clear height of at least 35 feet in order to allow for sufficient height for mezzanine -level office space. Councilmember Rousseau asked how many acres the new prospect was looking to purchase. Mr. Mueller explained the prospect was looking to purchase 12 acres in order to construct a 200,000 square foot building with 500 jobs. Councilmember Holden asked if there was another way to approve this change without changing the entire TRC. Community Development Director Reilly reported he did not have an alternative way for this to be considered. Councilmember Holden stated another option would be for the developer to go through the City process because the request was not aligned with the TRC. Community Development Director Reilly reported clear height was one of the things that was not allowed to be changed by the JDA. Mayor Grant understood this to be true, but noted clear height could be changed by the City. City Administrator Jagoe discussed Attachment 3 within the TRC which refers to the development review process for the JDA. She explained if a matter was brought forward that the JDA was permitted to adjust, the request remains on the JDA tract and if it was not within the ARDEN HILLS CITY COUNCIL — JULY 27, 2026 15 TRC requirements, those matters were pushed to the City process which were limited to a code amendment. This is following that City process. Mayor Grant stated he would like to see Attachment 3 because he did not recall that code amendments were required. He explained he greatly appreciated the fact that the proposed business would be bringing high paying jobs to the community. He indicated he was not interested in a distribution warehouse with 200,000 square feet and 20 employees was not what he was looking for on this site. Mr. Mueller reported this was understood and noted this was not what he was proposing. Mayor Grant commented he could support bringing in a business that was requesting a difference in building height that was bringing in good paying jobs. However, he was concerned about changing the code because this would now allow all industrial sites with a loading dock to have a 32 foot clear height. He stated he was looking for a way to find the right amount of flexibility without compromising the rest of the TCAAP development. Mr. Mueller stated while this was a deviation to the ceiling height, there were still use restrictions in place throughout the TCAAP development and these would be sufficient to not allow certain uses. Mayor Grant inquired if the Council could change Uses or Standards in the Commercial Campus District instead of Chapter 13 Section 1380. He stated he was looking for a way to have the proposed ceiling height change only apply to Outlot A, instead of the entire TCAAP development. Community Development Director Reilly reported the Council could approve part of the ordinance request, striking all references to loading docks and fix the definition. He indicated he could then bring back an alternate solution to address the 24 foot clear height. He clarified that on the City chart, following JDA board denial, an applicant may revise and resubmit an application for either a City TRC amendment or a project that meets JDA requirements. He reviewed the items the JDA could not change, reiterating that building height cannot be changed by the JDA. Mayor Grant asked how this item could move forward by only changing the ceiling height for developments on Outlot A. He stated he did not want to have distribution centers next to residential developments on the California parcel. City Administrator Jagoe asked the City Attorney if there was a way to revise the definitions and Section 2 - Provision E to say facilities that include a loading dock shall have a minimum clear height of 32 feet in the Campus Commercial zoning district, whereas all other zoning districts will have a clear height of 24 feet. Community Development Director Reilly reported warehousing is an accessory conditional use and would require permission no matter where it is in the TRC. He stated warehousing could not be a principal use. Mayor Grant supported the language as proposed by the City Administrator. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 16 Councilmember Monson questioned why the City Council would want to fix the ceiling height only on Outlot A when the entire industry was requesting a ceiling height of 32 feet. Mr. Mueller anticipated the City would be revisiting the TRC code for another amendment if the clear height was only raised to 32 feet for Outlot A. Councilmember Monson thanked Mr. Mueller for bringing this request forward and for following the process as set out by the City. She explained variances were not allowed in this case. She appreciated the fact that Ryan Companies was pursuing a business that would bring high paying jobs to the community and noted she was not sold on limiting the clear height to 32 feet on Outlot A. Rather, she was comfortable with staff s recommendation. Mayor Grant closed the public hearing at 9:03 p.m. Councilmember Holden stated when the Council went through this originally the intent was to protect the City from warehouse uses. While she understood Ryan Companies was bringing forward a high end user, this may not always be the case. She explained she could not support the 32 foot clear height at this time because she did not want a cheap looking industrial park located on TCAAP. Councilmember Rousseau asked if Ryan Companies was seeing any users seeking five acre parcels. Mr. Mueller explained businesses were typically looking for eight to ten acres. City Administrator Jagoe offered another suggestion for the Council to consider. She stated in looking at the TRC the compatibility of the Campus Commercial as well as the Flex Office District both offer manufacturing and processing as permitted or permitted with conditions. She suggested that her previous language be amended to allow both Campus Commercial and Flex Office to have 32 foot clear height buildings. Councilmember Weber asked the City Attorney if this was an acceptable course of action. City Attorney Kirchoff reported the Council had legislative discretion on how to write this language. She indicated the Council could state the rule was 24 feet except for as stated by the City Administrator. Councilmember Weber indicated he could support the recommendation from the City Administrator. Mayor Grant asked if the 500 jobs was a firm estimate from the prospective tenant. Mr. Mueller explained this was a real number from prospective company. Mayor Grant supported limiting the 32 foot clear height to the Campus Commercial zoning districts. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 17 MOTION: Mayor Grant moved and Councilmember Holden seconded a motion to adopt Ordinance 2026-015 and the publication of amendments to City Zoning Code Chapter 13 within Section 1380, TCAAP Redevelopment Code, modifying language pertaining to clear height and loading docks in Rice Creek Commons, modifying the language to read the 24 foot clear height can be increased to 32 feet on1v in the Campus Commercial zoning district on Outlot A. Mayor Grant stated the 500 good paying jobs would be a great add for the community. He indicated he could support a 32 foot building on Outlot A, but did not want to see 32 foot high buildings adjacent to residential homes. Councilmember Rousseau explained she supported adding Flex Office into the motion. AMENDMENT: Councilmember Rousseau moved and Councilmember Weber seconded a motion to modify the language to read the 24 foot clear height can be increased to 32 feet only in the Campus Commercial and Flex Office zoning districts. Councilmember Holden stated she would not support the amendment. Mayor Grant commented he did not want to run the risk of distribution center oriented businesses in TCAAP. For this reason, he did not support changing the clear height for the Flex Office zoning district. Councilmember Holden indicated Ryan Companies tentatively had 500 jobs from a prospective company, but this was not certain. She encouraged the Council to keep this a unique development versus creating an industrial park. Councilmember Weber stated this was a bleak outlook. He did not agree with this assessment. He noted the Council was proposing to change the clear height for two zoning districts on a 400+ acre property. MOTION: Councilmember Weber moved and Councilmember Rousseau seconded a motion to call the question. A roll call vote was taken. The motion failed 3-2 (Councilmember Holden and Mayor Grant opposed). Mayor Grant stated this project was designed and standards were put in place. He questioned how the project would end up given the number of changes that were being proposed when it comes to building height and boulevard lighting. He understood there was no guarantee the 500 jobs would come, but he suspected they would. He reiterated that he could support the 32 foot clear height in Campus Commercial, but he would not support the 32 foot clear height in Flex Office. Councilmember Holden commented she was struggling with motion. She reported the Council met with 15 different developers in order to make decisions for TCAAP. She questioned how many developers the JDA has met with to bring forward these changes. She anticipated the JDA had only met with Ryan Companies. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 18 City Administrator Jagoe explained the JDA has received a lessons learned document from Ryan Companies, who was the developer for Outlot A. She indicated the JDA has not met with other developers, but rather this text amendment was brought forward by Ryan Companies. Mayor Grant inquired if an amendment to the TRC had to be approved by the County. City Administrator Jagoe reported this was the case. She explained that the Flex Office zoning district was on the west side of the California parcel, on the west side of Rice Creek Boulevard and made up nine acres of the California parcel. A roll call vote was taken. The amendment motion carried 3-2 (Councilmember Holden and Mayor Grant opposed). A roll call vote was taken. The amended motion to modifi the lanuuat_,e to read the 24 foot clear hei(--ht can be increased to 32 feet onIN in the Campus Commercial and Flex Office zoniny, districts carried 3-2 (Councilmember Holden and MaN,or Grant opposed). MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to Authorize publication of SummarN Ordinance 2026-015 pursuant to Minnesota Statutes Section 412.191. A roll call vote was taken. The motion carried 4-1 (Mayor Grant opposed). 11. NEW BUSINESS None. 12. UNFINISHED BUSINESS None. 13. COUNCIL COMMENTS Councilmember Rousseau thanked all who attended the Committee and Commissions appreciation luncheon last week. She greatly appreciated all of the time these volunteers shared with the City of Arden Hills. Councilmember Rousseau stated the City was seeking volunteers for the Human Rights and Financial Planning Advisory Commission. Councilmember Holden reported MNDOT was seeking feedback on the I-694 travel study. She indicated the study was available on the City's website through Wednesday, August 5. Councilmember Holden congratulated the principal from Mounds View High School for being selected as Minnesota Principal of the Year. Councilmember Monson explained she attended the Committee and Commissions appreciation luncheon along with Councilmember Rousseau and Councilmember Weber. ARDEN HILLS CITY COUNCIL — JULY 27, 2026 19 Councilmember Monson stated she attended a Lake Johanna Fire Relief Board meeting and noted this group approved an increase to the pension payout, which did not require a payout from any of the member cities. Mayor Grant commented on the organics display at City Hall and explained organics were now being picked up for all Arden Hills residents in their regular trash container. Mayor Grant reported the grand opening/ribbon cutting ceremony for the Lake Johanna Fire Station would be held on Wednesday, July 29 at 2:00 p.m. He encouraged the public to attend this event noting tours would be held after the ribbon cutting ceremony. Mayor Grant thanked all who attended the 75t' Anniversary Celebration. City Administrator Jagoe thanked City Clerk Hanson, the volunteers and City Council for all of their efforts on the 75t" Anniversary event. ADJOURN MOTION: Ma% or Grant moved and Councilmember Weber seconded a motion to adjourn. The motion carried 4-1 (Councilmember Holden opposed). Mayor Grant adjourned the Regular City Council Meeting at 9:32 p.m. C\P,4-" d Jul Hanson Cit Clerk David Grant Mayor