HomeMy WebLinkAbout2016 [07] Jul 18 July 18, 2016
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Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session
on Thursday, July 18, 2016 at 6:00 PM in the St. Joseph City Hall, opening the meeting with the Pledge of
Allegiance.
Members Present: Mayor Rick Schultz, Councilors: Dale Wick, Matt Killam, Renee Symanietz, Bob Loso.
Administrator Judy Weyrens.
Citv Representatives: City Engineer Randy Sabart, Finance Director Lori Bartlett, Community
Development Director Therese Haffner, Police Chief Joel Klein, Public Works Director Terry Thene
Others Present: Len Bechtold, Gary Kraft, Tom Gustafson, Tom Opatz.
Public Comments
Len Bechtold, 412 7�h Ave SE approached the Council in opposition to the proposed three story senior
facility entitled Fortitude Senior Housing. Bechtold stated, in his opinion, the building does not fit in the
neighborhood and will be the tallest building on the southern side of MN Street excluding the Church of
St. Joseph and the St. Benedict facilities. Bechtold stated that prior to the public hearing conducted by
the Planning Commission, he submitted a letter to staff along with 8 other signatures of neighbors
showing their concerns with the three story building. Bechtold stated the Mayor was not approached to
sign the letter because they felt it may be a conflict of interest. Bechtold referred to a statement made in a
staff memo stating that at the second neighborhood meeting a show of hands showed the majority in
attendance were in support of the three story building. Bechtold believes the statement is misleading as
the question that was questioned did not question preference of a two story facility.
Gary Kraft, 706 Graceview Drive approached the Council to express concerns with the three story senior
facility entitled Fortitude Senior Housing. Kraft approached the Council stating he is not opposed to the
senior living project, but does have concerns. Kraft's concerns include the height of the structure and the
potential future use of Outlot A. Kraft suggests having language in the developer's agreement stating the
future intentions for the development of Outlot A.
Aaenda Apqroval: Loso made a motion to approve the agenda with the addition of item 9d,Sale of
Current City Hall.The motion was seconded by Loso and passed unanimously.
Consent Aaenda: Wick made a motion to approve the consent agenda.The motion was seconded
by Symanietr and passed unanimously.
a. Minutes—approved the minutes of July 7, 2016.
b. Bills Payable—approved payment of check numbers 050763-050802, Payroll EFT
#001219-001224 and Accounts Payable EFT#001739-001743.
c. Donations—accepted the donations and their purposes as presented.
d. Policies—adopted the policies as presented effective upon adoption.
e. 2016 Fee Schedule Amendment—adopted the proposed 2016 fee schedule
amendments.
f. Financial Reports—accepted the 2"°quarter 2016 and June 2016 financial reports as
presented.
g. Transfers—authorized the 2016 transfers as requested.
h. Fire Relief—accepted the Fire Relief Report and authorized the Administrator to execute
the Fire Relief Report indicating that the Fire Relief has presented the report to the City
Council identifying the liability for 2016.
Coalition of Greater MN Cities(CGMC): Carolyn Jackson, staff attorney for the CGMC, approached the
Council to provide an update on activities during the 2016 Legislative session. She stated that she
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presents 88 cities throughout Minnesota outside the greater metro area. In 2015 the Legislature failed to
complete the tax bill or the comprehensive transportation package. Additionally, 2016 is a bonding bill
year and the bonding committee received over$5 billion in bonding requests. The session started with a
$900M surplus. Republicans wanted to spend the surplus on tax cuts and transportation funding and the
Democrats wanted to use one-time funding believing the economics wouldn't last. Jackson stated the
goals of the GCMC was to return local government aid to the levels of 2002, to pass Greater MN
economic development programs, a comprehensive transportation package, and funding for water and
wastewater infrastructure. At the beginning of 2016, Jackson stated the Senate had supported the GCMC
proposal of getting back to the LGA levels of 2002. However, the House proposed to cut$84M from
Minneapolis, St. Paul, and Duluth which the GCMC believes undermines their proposal. As a result of
GCMC making LGA the focus of Lobby Day, the House backed away from the huge tax cuts to focus on
more modest goals supporting a$20 million increase in LGA. Had the bill passed St. Joseph would have
seen an increase of$100,000 in LGA.
Due to the increased regulations for water and wastewater treatments, the Governor's bonding bill
recommended funding for three clean water infrastructure programs: Point Source Implementation Grant,
Wastewater Infrastructure Fund, and Federal EPA Matching Grants. The CGMC argued that clean water
infrastructure programs should be the foundation of the bonding bill. Both the House and Senate included
the funding in their bills at an amount of$133.5M. However, the bill was brought forward in the last hour
and failed due to two different bills being passed, one by the Senate, the other by the House.
Jackson stated transportation continues to be an issue in what needs to be done. Everyone is in
agreement that$600-$700M needs to be dedicated to transportation improvements. However, no
agreement was reached on the bill.
Fortitude Senior Livinq of St. Joe:Weyrens stated that the Planning Commission conducted a public
hearing for a PUD amendment and Preliminary Plat for a development entitled Fortitude Senior Housing
of Saint Joe, LLC. The PUD Amendment revises the 2002 Graceview Estates (GVE) PUD, changing the
housing type for a portion of the property to R3 allowing for a senior complex. When the PUD as
approved in 2002 the development encompassed slightly over 90 acres and included a variety of housing
types to include single family, multiple family, townhomes, patio homes, bay homes and a senior
complex. The development retained an R1 Zoning district with a PUD umbrella, allowing for mixed use
and identifying the total density for the PUD. The PUD was developed in phases and the zoning used for
the structures was dependent upon the type of the structure. For example when the Graceview
Apartments were constructed the R3 provisions were applied.
As the market stalled so did the development. In 2006 the GVE Developer requested to amend the PUD
to modify the housing types to include carriage style homes, increasing the density adding six more
housing units. The portion of GVE that was amended was purchased by Fortitude Housing for the
purpose of constructing a senior complex. The proposed housing type proposed was not consistent with
the type of housing identified for the area which was purchased, so the developer(Tom Opatz)was
required to complete the PUD Amendment process. In reviewing the request the approved density as
amended in 2006 identified the property would serve 51 residential structures and the proposal of
Fortitude included 47. Therefore the density was not increasing,just the housing type.
Tom Opatz purchased the property with the understanding that he would need approval from both the
Planning Commission and City Council, The property was in foreclosure at the time of purchase and it
was not maintained by the former owner. In an effort to inform the abutting property owners, Opatz
conducted two neighborhood meetings to present the project and solicit comments. While the proposed
facility only encompasses a portion of the property, leaving over four acres undeveloped, it is not the inent
of the developer to construct additional buildings. Weyrens stated that the portion not proposed for
development will be platted as an outlot and as such it cannot be deveioped without submitting a
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development plan and plating. Additionally, any development of the outlot will be limited to the density for
the entire site, with the potential of four single family units.
The property sat in tax foreclosure for quite some time and the property was purchased by the current
developer. The developer came to the City wanting to put a senior living complex on the property with a
proposed density of 47 units.Weyrens added that Outlot A is tied to the property as is the developers
agreement. The development on Outlot A is limited to 4 single family homes.
Weyrens stated the major concerns expressed at the public hearing included the height of the building
and adding a different type of use. Weyrens clarified that the original 2002 PUD anticipated three, three
story apartment buildings with various types of sing{e family units attached and detached. 1'he maximum
height in 2002 is the same as it is today, 40 feet for three stories whichever is less.The Ordinance was
amended from 35 feet to 40 feet around the same time as the PUD was approved through a public
hearing process.
Schuftz questioned why the area is being platted again when it has already been in the past. Schultz
expressed concerns with the lot being developed as senior housing as a lot near there is platted for
senior housing as well. Schultz stated the City would be choosing who to accommodate. Schultz
questioned if the City wants two senior living complexes back to back when that was not in the initial
concept. Weyrens clarified that when a property is designated as an outlot it cannot be developed
without platting. Therefore, whatever is constructed on the property purchased by Opatz would require
platting. The PUD Amendment is needed to change the housing type, as was completed in 2Q06 when
six additional units were added. In the matter before the Council the density is not increasing,just the
housing type.
With regard to the potential of two senior housing units in the same vicinity,Weyrens stated that they are
different types of housing. The developer of the second unit has presented a concept and it is anticipated
to be market rate without services. The building proposed by Opatz serves the low to moderate income
and provides services.
Loso stated that when the same property was proposed for development in the early 2000's, there were
the same issues as today with neighbor opposition. Loso added if he lived in the neighborhood he would
like the land to remain field land as well, but the developer has the right to develop it. Loso questioned
whether the plan could go to a two story plan versus the three story plan. Schultz added that the
Graceview Apartments are at 35 feet and questioned if the Council has the authority to change height
requirements.
Wick stated the height requirements cannot be changed at the meeting, but the change could be looked
at in the future. The Ordinance allows a property owner to build a maximum height of 40 feet and he
does not see how the City can limit a developer to less, it would require an Ordinance Amendment. With
regard to the Graceview Apartments, Weyrens stated that the height worked for the developer and it was
agreed through a mediation process; however, that developer could have pursued the maximum height.
In the matter before the Council, the developer is requesting to use the maximum allowed height that is
allowed in the Zoning Ordinance.
Killam questioned how many jobs will be added with the construction of the Fortitude facility. Wick stated
when it was brought to the EDA,there were one or two positions that were going to be added and that it
would not be nearly as many employees as Country Manor due to the type of services it will provide.
Tom Opatz, Fortifude Senior Housing approached the Council on his own behalf. Opatz stated that he is
proposing a three story building for two reasons, quality living for residents and affordability. His
experience in providing senior housing is that hallways become too long in two story facilities and they
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start taking the characteristics of a nursing home. His goal is to provide independent living options that
feel like one is living in a traditional home. The seniors in the St. Joseph area are looking for affordable
housing and that can be accomplished with a three story building. If the building is only two stories it no
longer becomes affordable due to the construction costs. The financial analysis completed by the City
financial advisor provided evidence that a financial gap exists with the three story building and Tax
Increment Financing was warranted. Therefore, a two story facility would be cost prohibitive.
Opatz stated that if the Council votes no, he will be liquidating and donating the property to a developer
for low income housing. He cannot provide the housing in St. Joseph that seniors are requesting so he
will look at the neighboring community's for property to construct the facility that he proposed in St.
Joseph. Regarding the neighboring lot platted for senior living, Opatz stated due to the watershed, it is
very unlikely that a complex wiN be able to be built there. Opatz stated that Fortitude has an affordability
piece that allows those that live in St. Joseph to continue living in the facility after their assets have been
spent. Loso questioned whether a two story is viable on the property. Opatz stated the three story plan is
what is before the Council and what is being requested for approval. He cannot build a two story facility
and keep affordable at the same time.
Wick questioned if the engineering pieces have been resolved. Sabart stated they are still working
through a couple items and received a revised submittal today from the developer's engineer. Sabart
added the outstanding items are minor and would not prohibit approval at this meeting.
Symanietz stated when she bought her house she researched and found that senior living was allowed in
the Outlot to the Southwest of Fortitude and believes the developer of that property should get a fair
chance at developing. Symanietz added she is in favor of a two story, not a three story facility.
Killam made a motion authorizing the Mayor and Administrator to execute resolution 2016-041
Approving the Planned Unit Development(PUD)Amendment and Preliminary Plat.The motion
was seconded by Loso; motion carried.
Aye:Wick, Killam, Loso
Nay: Schultr,Symanietz Motion Carried 3:2:0
Wick made a motion authorizing the Mayor and Administrator to execute Resolution 2016-042
Approving the Final Plat entitled Fortitude Senior Living of Saint Joe LLC. The motion was
seconded by Loso; motion carried.
Aye: Wick, Killam, Loso
Nay: Schultr, Syamanietz Motion Carried 3:2:0
Committee Reports
Park Board: Killam reported the Park Board is waiting for the electrical and mechanical drawings for the
proposed Millstream Park Shelter. Once they become available, they will be brought to the Council.
Killam stated Park Board Chair Anderson and Public Works Director Thene will be working on the
dimensions for a possible dog park in Millstream Park. Once the size is determined, then quotes can be
collected for potential costs such as fencing and water. Other items to include in Millstream would be a
playground and band shell. Regular updates will be brought back to the Council to keep everyone
informed.
Killam stated the Park Board is working on a flyer to incorporate other parks in the City to give to new
residents. Sponsoring a tree is a program where people can sponsor a tree where they pick the type of
tree and which park the tree would be put in.
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Loso stated the Park Board should look at implementing co{umbariums in the parks as an additional
revenue source.
Planninq Commission: Schultz reported that Cory Ehlert approached the Planning Commission regarding
the expired Interim Use Permit(IUP)for 29 MN Street E. The IUP allowed Ehlert to operate a rental unit
in a commercial zoning district without a business use. The Commission agreed to move forward with
allowing Ehlert to apply for a new IUP which requires a public hearing.
Temporarv Housinq: Haffner updated the Council regarding new legislation that allows for temporary or
transitional housing for a mentally or physically impaired person by allowing them to stay in a temporary
dwelfing on a relative or caregivers property. Unless City's opt out of the provision, they would be
allowed. Most of the area Cities are opting out of the mandated legislation and looking at alternatives.
The Planning Commission concurred with opting out and wilf be hofding the required hearing in August.
Joint Planninq Board: Schultz reported the Joint Planning Board approved an administrative lot split for
Melorse Associates allowing for a land exchange involving 3.85 Acres.
Administrator Reports
Government Center. Proposal Request:Weyrens reported that the Government Center project is
progressing slightly ahead of schedule. The project is being built as a construction management project
and as such from time to time price revisions are requested. The revisions include both owner changes
and unforeseen changes in the�eld. The contract allows the Administrator to approve any revisions up to
$ 10,000 with any revision greater approved by the Council. At this time two revisions exceed$ 10,000.
The first is the addition of bullet proof glass for the reception areas. The cost for the protective glass is
approximately$ 16,500. Weyrens stated that the City has the opportunity to apply for a matching grant
through OSHA to help offset the cost. The second revision is the addition of venting for the police lockers
which is approximately$ 10,000.
Loso made a motion authorizing the Administrator to execute PR-14 installing bullet proof glass
for the reception areas and authorizing staff to submit a grant to OSHA for a matching granting
the amount of$8,280; and approving PR-22 adding the ventilation for the lockers at an estimated
cost of$ 10,000.The motion was seconded by Symanietz and passed unanimously.
Loso questioned why the building is not connected to the Community Center.Weyrens stated the building
is designed to connect in the future if need be. Loso suggested having the connection completed now so
that walls do not need to be torn down in the future. Killam agreed with Loso on having the Government
Center connected to the Community Center.
Field Street ROW:Weyrens stated the Field Street design required ROW acquisition from 5 property
owners: College of St. Benedict, Raymond &Jackie Meyer, Elite Development, Tim &Ann Heymans, and
Kevin &Amy Kluesner. Brad King from SEH met with all property owners to present the City's offer. Four
of the five acquisitions have been resolved and staff is seeking approval of the terms and payment.All
property owners were paid the same per acre rate and some had other considerations such as loss of
rent and easements.
Loso made a motion authorizing payment for the ROW acquisition and authorize the Mayor and
Administrator to execute the required documents for the acquisition.The motion was seconded
by Schultr and passed unanimously.
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2017 Budqet: Killam suggested having money allocated to the dog park.Weyrens stated she would
include that as part of the Park Board Budget.
Sale of Current Citv Hall:Weyrens stated that the Collegeville Credit Union has opted to step away from
the purchase of the City Hall. In an effort to salvage the sale, Weyrens provided some options to the
Credit Union and extended the deadline for response. As no response was received the City now in a
positon were we have to sell a building. Weyrens stated that she was contacted by Collegeville
Communities to list the property with a sixty day exclusive listing.
Loso made a motion authorizing the Administrator to formalize an exclusive listing agreement
with Collegeville Communities to list the property at 25 Coilege Avenue N. The motion was
seconded by Schultz and passed unanimously.
Mavor Reaorts: Schultz stated the Coalition is going into litigation with the EPA and MCPA regarding the
new water and wastewater regulations. Schultz stated it would be 5 years without seeing an impact.
CGMC is proposing maintaining a fund in the amount of$250,000 in which $50,000 from existing CGMC
assessments; $50,000 from a proposed 4.75%surcharge on membership dues for CGMC members;and
$150,000 from an annual voluntary assessment of$.35 per capita. Schultz stated he is against the
proposal and will report back to the Council as the discussion continues.
Adiourn: Loso made a motion to adjourn at 7:20 PM; seconded by Killam and passed
unanimously.
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