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HomeMy WebLinkAbout05-19-14CITY OF LAKEVILLE CITY COUNCIL MEETING MINUTES May 19, 2014 Mayor Little called the meeting to order at 7:00 p.m. in the Council Chambers at City Hall. Members Present: Mayor Little, Council Members Davis, Swecker, Anderson and LaBeau Staff Present: Allyn Kuennen, Administrative Services Manager; Roger Knutson, City Attorney; Jeff Long, Police Chief; Chris Petree, Public Works Director; David Olson, Community & Economic Development Director; Dennis Feller, Finance Director; Brett Altergott, Parks & Recreation Director; Daryl Morey, Planning Director; Judi Hawkins, Deputy Clerk 3. Citizen Comments: Mr. Pat Owens, 16023 Excelsior Drive, voiced concerns about the grade and condition of his driveway as a result of the street reconstruction program. Linda Melom, 19052 Inman Trail, expressed her concerns about the removal of Canadian Geese from Antlers Park. She appealed to Council to continue to explore options that will not include destruction of the geese. Council Member Anderson stated that the expanding goose population at Antlers Park has created a nuisance and an unhealthy situation for the park and for the water quality of Lake Marion. Several methods have been explored and attempted in an effort to discourage the geese from nesting there. Because none of those efforts have been successful he supports trying the proposed method this year but is open to continuing to explore other options. Ken LaBoone, 20072 Italy Avenue, pointed out the ecological relationship between the geese and Bald Eagles, a natural predator of the geese. 4. Additional Agenda Information: None 5. Presentations/Introductions Chief Long presented the Police Department 2013 Annual Report. Council Member Swecker added that the Facebook page of Bravado.com recognized the City of Lakeville as the safest place in to live in Minnesota among cities with a population over 10,000. Chief Long recognized Captain Kevin Manias and cited highlights of his career. Captain Manias is retiring on May 30, 2014 after more than 28 years with the Lakeville Police City Council Meeting Minutes, May 19, 2014 Page 2 Department. Captain Manias expressed his appreciation for the opportunity to have worked for the City; Council expressed their thanks for his years of service. Mr. Altergott presented the April Parks & Recreation Department monthly report. He added that Lake Marion is near its high water level. Sandbags will be available to homeowners beginning tomorrow and the lake will be monitored. 6. Consent Agenda Council Member Anderson asked that items 6h and 6i be removed from the consent agenda. Council Member Swecker requested that Item 7 be added to the consent agenda Motion was made by Swecker, seconded by Anderson, to approve the consent agenda items as follows: a. Claims for payment b. Minutes of the May 5, 2014 City Council meeting c. Minutes of the April 28, 2014 City Council work session d. Agreement with Blue Water Science for engineering services e. Confirmation of Planning Commission Chair Brooks Lillehei f. Resolution No. 14-38 in support of the Minnesota Department of Employment and Economic Development Job Creation Fund Application for Menasha Packaging Company g. Resolution No. 14-39 accepting the First Park Lakeville AUAR Update h. (Removed from consent agenda) i. (Removed from consent agenda) j. Acknowledge receipt of Lakeville Arenas 2015 Budget 7. Resolution No. 14-41 approving the preliminary and final plat of Diamonte at Spirit of Brandtjen Farm and Resolution No. 14-42 designating "No Parking" areas Roll call was taken on the motion. Ayes - Davis, Little, Swecker, Anderson, LaBeau City Council Meeting Minutes, May 19, 2014 Page 3 6.h. Joint Powers Agreements with Dakota County for acquisition of right-of-way along CSAH 9 (Dodd Boulevard) and CSAH 50 (Kenwood Trail) The Joint Powers Agreement relates to Dakota County's share in the acquisition costs as well as abatement and demolition costs for property located at 19920 Kenwood Trail. 61 Resolution No. 14-40 approving acquisition of property located at 19920 Kenwood Trail Dave Olson provided additional information regarding the purchase of property near the intersection of Ipava Avenue and County Road 50/Kenwood Trail which will be needed as part of the Kenwood Trail improvement project. The proposed purchase price is $157,000, but additional costs will be incurred for abatement, demolition, etc. The property owner will not be required to test the water due to the upcoming demolition; the well and septic system on the property will be capped. Documents were drafted by the realtor but have been reviewed by the City Attorney's office. Council Member LaBeau is not comfortable with approval of an agreement with a dual -agency broker and the vulnerability of a document which lacks page numbers. City Attorney Roger Knutson agreed that page numbers should be included. Anderson expressed the importance of the City focusing on risk management. Anderson requested a summary of total costs for future purchases. Motion was made by Anderson, seconded by LaBeau to approve Items 6.h. and 6.i relating to the purchase of property located at 19920 Kenwood Trail. Roll call was taken on the motion. Ayes -Little, Swecker, Anderson, LaBeau, Davis, 8. Resolution approving the acquisition of property from Lakeville Land Ltd. for a future municipal liquor store Dave Olson provided an overview of the proposed purchase of lot 2, block 1 and lot 3, block 1, Lakeville Commerce Center, located on the west side of 35W, north of County Road 70. The proposed purchase price for the two lots totaling 4.52 acres is $1,967,490. Based on continued growth in sales, an additional liquor store will be needed in two to five years and due to the current availability of the land, staff believes that this is an opportune time for this acquisition. Lot lines of the two adjoining parcels would be reconfigured to make best use of the property, and the remaining property not used for the store will be resold. The due diligence period identified in the agreement is July 7, 2014, with closing by September 5, 2014. Council Member Anderson asked what risks the City might assume with the covenant that gives the seller final approval of building designs. City Attorney Roger Knutson stated that paragraph 6 of the Purchase Agreement clarifies that the purchase is being made subject to the covenants originally established in 1997 which give the seller ultimate approval of what is built on the property. Knutson stated that the owner had declined the City's request to delete that clause from the purchase agreement. City Council Meeting Minutes, May 19, 2014 Page 4 Council members did not have a copy of the Declaration of Covenants in their materials. Council Member LaBeau wants to make sure that the architectural control provisions are specifically defined in the document and not open ended. Anderson stated that he needs to have all the information before he can make a decision. Mayor Little asked if the purchase can be tabled until Council has had an opportunity to review the covenants. Knutson stated that the due diligence and closing dates would then also need to be adjusted. Council Member Davis stated that the Liquor Committee had discussed the covenants and the fact that other businesses built in this development were subject to the same guidelines. There is an opportunity for the City to design the building at this time and work with the developer to receive approval now. This would entail spending about $15,000 on designing a building and potentially being locked into that design, but the City would have the assurance that the future building would meet the covenants. Council Member LaBeau concurs that the City has been given the opportunity to receive building design approval during the due diligence period but does not agree that funds should be spent designing the building at this time because building specifics are not yet determined. She is not comfortable with approval of the covenant. Olson stated that if the basic design is established and agreed on, details can be adjusted when construction takes place. Council Member Swecker asked how the language is different than the City's performance standards for commercial buildings and the Zoning Ordinance. Olson described building materials required by the City but a side by side comparison has not been completed. Mr. Kuennen stated that the City's Zoning Ordinance on building material is more strict that the covenants. LaBeau asked the City Attorney to clarify if the developer would have the ultimate authority regarding approval of the plan; Mr. Knutson stated they would. At this time, the Declaration of Covenants was provided to the Council. Mayor Little called for a ten-minute recess to provide an opportunity to review the materials. Mayor Little reopened the meeting and stated that after reviewing the document he is confident that the City will be able to stay within the standards set forth by the owner in paragraph 6. Council Member Anderson agreed that the standards seem reasonable and align with the City's own regulations. The City wishes to build a quality liquor store and would abide by these requirements, and he supports the acquisition of the property. Council Member Swecker is concerned with the risk of having a covenant that will dictate the final look of the City's building; however, she believes the standards are appropriate for the area. She believes this is an excellent opportunity to purchase property in the desired location at a good value. City Council Meeting Minutes, May 19, 2014 Page 5 Council Member LaBeau asked Mr. Knutson to clarify for Council members that the seller maintains the right of final approval. Mr. Knutson stated that the seller has stipulated minimum standards in the covenants for the City's exterior building materials and design. Mayor Little stated that Council relies on staff and by not originally being provided with the covenant document they were put at a disadvantage for making this decision. Motion was made by Swecker, seconded by Davis, to approve Resolution No. 14-43 approving the acquisition of lot 2, block 1 and lot 3, block 1 of Lakeville Commerce Center from Lakeville Land Ltd. Council Member Anderson asked if the owner could deny approval of the building design for other reasons than those specified in the covenant. Knutson said yes. Anderson asked if the Council is comfortable in taking that risk and if the purchase price is refundable if the design is denied. Olson provided some examples of buildings in Lakeville Commerce Center that have been able to work well within the guidelines. It was clarified that the City would own the property and could sell it if necessary. Council Member LaBeau stated that if the seller maintains control the plans can be denied for any reason. She suggested bringing the agreement back to the seller with a proposal that the City follow the language in paragraph 6 regarding building materials but ask the seller to remove the clause maintaining ultimate control in paragraph 1. Knutson stated that this would significantly limit the seller's discretion. Council Member Anderson suggested either amending the motion or approving the agreement subject to certain provisions associated with the Declaration of Covenants. Council Member Swecker believes the covenants as stated and the City's ordinances will result in a quality building and wants to finalize the purchase. City Attorney Knutson advised that Council could move forward by amending the motion to approve the purchase subject to restrictions in the Declaration of Covenants and stating that the building must be approved if it meets the standards as defined in paragraph 6.a through 6.h. However, until Council approves the agreement, it can be withdrawn by the seller. Following approval by both parties, the seller would not be able to withdraw the agreement. New language would nullify language in paragraph 1 by stipulating that if the City follows the covenants in paragraph 6 the plans must be approved. The original motion was withdrawn and amended as follows: Motion was made by Swecker, seconded by Davis, to approve Resolution No. 14-43 approving the acquisition of Lot 2, Block 1 And Lot 3, Block I of Lakeville Commerce Center from Lakeville Land, Ltd. as presented subject to the Declaration of Covenants, City Council Meeting Minutes, May 19, 2014 Page 6 Conditions and Restrictions as applied to the property being purchased and, provided the design standards defined in paragraph 6.a. through 6.h. are met, Lakeville Land, Ltd. must approve the building design. Council Member LaBeau asked if Lakeville Land Ltd. has placed a deadline on Council approval. Knutson stated that Lakeville Land can withdraw their proposal any time prior to Council approval but must notify Council of their decision. Roll call was taken on the motion. Ayes-Swecker, Anderson, LaBeau, Davis, Little Mayor Little requested that he be present during future negotiations with the seller. 9. Unfinished business: None 10. New business: None 11. Announcements: City offices will be closed on Monday, May 27 in observance of Memorial Day A Job Fair will be held on Thursday, May 22,d at Heritage Center, 9:30 - 1:00. Several area businesses will participate. Next regular Council meeting, June 2, 2014 Mayor Little adjourned the meeting at 9:24 p.m. Respectfully submitted, Ju awkins, Deputy City Clerk n Matt Little, May r