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.
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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
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Matt Little, May r