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HomeMy WebLinkAbout11-15-96 WSS CITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES • NOVEMBER 15, 1996 The meeting was called to order by Mayor Zaun at 5:00 p.m. in the City Hall administration meeting room. Those present: Mayor Zaun, Councilmembers Holberg, Johnson, Mulvihill, Sindt; R. Erickson, City Administrator; D. Feller, Finance Director; K. Nelson, City Engineer; M. Sobota, Community and Economic Development Director; D. Krings, Chief Building Inspector; J. Perron, Liquor Store Manager; B. Kempa, Senior Accountant; Roger Knutson, City Attorney; D. Licht, Northwest Associated Consultants; D. Eyler, SRF Consulting Group; Leslee Gustafson, Deputy Clerk. Mr. Erickson stated that Item No. 9 would be rescheduled for another work session. Mayor Zaun asked for staff direction on which of the remaining items need to be addressed this evening. Mr. Erickson responded that Items 2, 4, 5, 7, and 11 should be discussed so staff can proceed based on Council's directions. ITEM NO. 1: Minutes -August 12, October 21 work sessions. Mayor Zaun asked Council to review the minutes from the August 12, and October 21 work sessions. He advised the Council to inform staff if they have any corrections or additions before the minutes are received at a future City Council meeting. ITEM N0.2: Presentation -Zoning Ordinance Amendment: Tattoo Parlors/Body Piercing Establishments. Mayor Zaun suggested the presentations be limited, with the Council then free to ask questions. This would enable the Council to move forward as there is only one Planning Commission meeting in December. Mr. Licht stated that tattooing is increasing in the midwest; body piercing is emerging as a potential concern. He recommended these establishments be allowed as a permitted use within the B-4 Zoning District. Mr. Licht said operational concerns the City has with these establishments could be regulated by a License Ordinance. Mr. Licht stated Minneapolis City Code and the Internet provided information which was taken into consideration in drafting the proposed Zoning Ordinance and the License Ordinance. Councilmember Holberg asked about separate rooms for tattooing and body piercing and if they could operate as part of a beauty parlor. Mr. Licht stated that a tanning or beauty parlor could incorporate tattooing and body piercing as long as a separate room was used as this is required for sanitation purposes. Councilmember Sindt inquired if the state requires a license. Mr. Licht stated the state doesn't require a license. Councilmember Johnson asked if the terminology "to place jewelry" (refer to Attachment B), should be City Council Work Session Minutes November 15, 1996 Page 2 changed to avoid misinterpretation. Mr. Knutson stated he would make the necessary changes. Councilmember Holberg asked if this should be a conditional use issue as opposed to a zoning issue. Mr. Licht commented that licensing would cover these operations especially as it relates to health issues. Councilmembers requested that "Safety" be included on "Attachment C" and that on page six, under "C" the wording concerning licenses for both tattooing and body piercing be rewritten to more clearly indicate separate licenses are needed. Councilmember Johnson suggested that on page ten under "C" the wording should be expanded to read "or other sharp or pointed instruments that shave/pierce". Mr. Licht stated the wording will be changed. Councilmember Mulvihill asked if the City has an approved representative for inspecting these establishments. Mr. Licht commented that many cities have a Health Officer, but that Lakeville, at the current time, could retain a qualified representative to do inspections. The City Council directed staff to proceed with the suggested changes and then place on a future City Council meeting. • ITEM NO. 3: Status update re. 2 1/2 acre lot/zoning issue, New Market and Credit River Townships. Mr. Erickson stated Mr. Knutson and Mr. Licht have been monitoring New Market- and Credit River townships and their proposed rezoning which is inconsistent with the Scott County Comprehensive Plan. Mr. Erickson referenced Mr. Knutson's letter to the Metropolitan Council which was included in Council's packet. Mr. Knutson said he had received no response from the Met Council. Mr. Licht stated there appears to be total confusion on the part of both the Met Council and Scott County. He said that Scott County and the Met Council were meeting this week to discuss the proposed rezoning. Mayor Zaun commented that the Metro Council is holding a public hearing on the Regional Blueprint at the Burnsville City Hall on November 20th. He suggested attendance at this meeting at which time the City could present their concerns with the proposed rezoning. Mayor Zaun asked staff to think about the proper approach, options available and the strategy involved before attending this meeting. ITEM NO. 4: Consider scope of services (SRF) for I-35/Co. Rd. 50 interchange area traffic study. • Mr. Nelson introduced Mr. Dennis Eyler from SRF Consulting Group. Mr. Nelson stated a Scope of Services has been prepared by Mr. Eyler for Council's consideration. This study City Council Work Session Minutes November 15, 1996 • Page 3 was delayed until the completion of the interchange at CR 46. Mr. Nelson informed the Council that the Friendly Host Motel has submitted expansion plans and that staff would like the traffic study completed before the motel expansion is approved. Mr. Erickson stated it is critical to begin the study because of the time of year. Mr. Eyler said they would like a December 2nd start date, so traffic counts could be obtained before schools adjourn for the holidays. Mr. Erickson suggested the Council may want to place this item on the November 18th agenda to enable SRF to begin before winter sets in. Councilmember Johnson asked if there is a difference between winter and summer traffic. Mr. Eyler responded that there is a swing of up to ten percent between winter and summer traffic but they adjust for this swing. Councilmember Johnson asked if the estimated cost of the study was comparable with other studies done for the City. Mr. Erickson said the Council may want a "not to exceed" provision included in the Scope of Services. Mr. Eyler stated the study is based on an hourly fee. Mayor Zaun asked if they do time delay counts. Mr. Eyler responded that level service calculations are done for each intersection and an average delay for each vehicle. The City Council directed staff to place the Scope of Services for Traffic Study I-35 and CSAH 50 Interchange Area on the November 18, 1996 agenda. ITEM NO. S: Alcorn Distribution Center TIF proposal. At this time Mr. Erickson addressed the issue of a Joint Powers Agreement for Storm Water Detention Basin Construction and Maintenance with the Metropolitan Airports Commission. Mr. Erickson stated MAC has asked the City to extend water service to the south building expansion area of Airlake Airport and in the future provide limited sanitary sewer service to areas within the airport property if annexed into the City. Mr. Erickson suggested that the Council may prefer to have MAC initiate annexation with Eureka Township. The Council indicated they do not want to jeopardize the current relationship between the City and Eureka Township. The consensus of Councilmembers was to request that MAC base their extension of sanitary sewer on adopted rules that would govern uses compatible with airport related operations. Council directed staff to meet with MAC regarding the promulgation of rules related to sanitary sewer extensions. Mr. Sobota introduced Mr. North, the owner of Alcorn Distribution Center. Mr. North informed the Council his business moved to Airlake Industrial Park in 1976. He expects a ten percent increase in business next year. Mr. Sobota stated the proposed relocation and expansion of Alcorn's corporation headquarters and distribution center will be located on • the corner of Highview Avenue and CR 70. City Council Work Session Minutes November 15, 1996 • Page 4 Mr. Sobota commented that Alcorn's proposed expansion and the TIF District No. 16 plan will provide the needed improvements for future development in the area. The infrastructure would include the extension of a 16-inch watermain along CR 70, construction of a new storm pond on MAC property, and road improvements on Highview Avenue and CR 70. The TIF plan includes relocation of a railroad spur to facilitate an expansion of Rosemount Office Systems. Mr. Sobota stated staff and the Economic Development Commission is not recommending TIF assistance for Progressive Rail. Specifically, the proposed building is only 5,000 square feet with a limited re-use potential and would set a negative precedent. Mr. Sobota requested the Council consider: 1) Approval of the Alcorn proposal 2) Denial of the Progressive Rail proposal 3) Approval of TIF District No. 16 Plan to be sent to Dakota County and ISD 194 for hearing 4) Approval of the Joint Powers Agreement between the City of Lakeville and MAC Mayor Zaun asked why the initial request for TIF financing was reduced. Mr. Sobota stated staff had studied the application as it related to the public benefit and needs and then negotiated with Mr. North as to the needs of his site. He said the City is conservative with the use of TIF. Mr. Erickson stated the modified Alcorn site plan is appropriate for the "Gateway" to Airlake Industrial Park. Mr. Erickson stated that to avoid the LGA/HACA Penalty, the City will contribute towards the outlet/piping costs of the storm pond which will be constructed on MAC property. Mayor Zaun inquired as to the time frame on construction of Mr. North's building and when the TIF money would be paid out. Mr. Sobota stated Alcorn would begin receiving "pay as you go" TIF dollars in 1999 with a six year payback. Mayor Zaun stated ISD 194 may ask what the approximate difference in the School District's share of property taxes is now and will be when the TIF District expires. Mr. Sobota stated it should be between $65,000 and $75,000. Mr. Erickson commented that state statutes require ISD 194 be formally notified and they have so many days to officially respond. Mr. Erickson suggested a cover letter be included with the TIF Plan which would identify benefits to the School District. The City Council directed staff to proceed with the Alcorn proposal and the TIF District No. 16 Plan and denied the Progressive Rail proposal. ITEM N0.6: Airlake Airport Long Term Comprehensive Plan Update. • Mr. Sobota stated he and Councilmember Johnson had attended a Metropolitan Airports Commission public hearing to consider an amendment to the Airlake Airport Comprehensive • City Council Work Session Minutes November 15, 1996 Page 5 Plan. Mr. Sobota said that MAC has. proposed reducing the primary runway to 4,600 feet from the standard primary runway maximum 5,000 foot runway because of the prohibitive costs involved in either moving streets or railroad tracks to allow for the 500-foot clear zone. Mr. Sobota stated MAC is committed to construction of a crosswind runway and additional hanger space as stated in their Long Term Comprehensive Plan. Councilmember Johnson commented there were no objections to the plan at the hearing. He stated this plan was similar to the 1989 presentation. Mr. Erickson brought to the Council's attention Mr. Feller's memo which noted that MAC is endorsing proposed legislation changing the property taxes at the five reliever airports to those taxes paid at privately-owned airports in out-state Minnesota. He commented that there would be no significant affect on City taxes lost, however, ISD 194 would lose $23,810 in property tax revenue if this legislation passed. ITEM N0.7: Consider adoption of Individual Sewage Treatment Systems Ordinance. Mr. Krings informed the Council that Dakota County adopted Ordinance No. 113, On-Site Sewage Treatment Systems (ISTS), in July of this year. Mr. Krings stated that property owners were previously required to disclose the location and status of the outside sanitary • sewer system but were not required to have it inspected. This new ordinance would require inspections be completed by a State licensed ISTS Inspector. Mr. Krings stated the new ordinance for property transactions requires failing sewage systems must be upgraded within ten months, unless there is imminent threats to public health or safety, in which case, it must be corrected within 30 days. Councilmember Sindt asked how mortgage companies handled financing if a sewage system required repairs. Mr. Krings responded an approximate cost of repairs would be escrowed at closing. Mayor Zaun asked if any of the current inspectors on staff could do these inspections. Mr. Krings stated no, the City would have to pay a private inspector. Councilmember Mulvihill stated she was concerned for property owners who do not have the resources to repair their sewage system. Mr. Erickson responded there may be block CDBG grant funds available for this purpose. The City Council directed staff to proceed with placing Ordinance No. 113 on a future City Council agenda. ITEM NO. 8: Presentation regarding Liquor Store 4 site. Ms. Perron displayed a city map showing locations of the current liquor stores and the proposed site for Store No. 4 at Kenrick and County Road 46. Ms. Perron stated sales are up twelve percent from the first of the year and anticipated sales for the year will be approximately four million two hundred and fifty thousand. r City Council Work Session Minutes November 15, 1996 Page 6 Ms. Perron commented that the area around the I-35/CR 46 interchange is undergoing major changes in traffic patterns. She stated that Mr. Tushie had completed a preliminary site plan for the parcel owned by the City. The site has excellent access and visibility. Ms. Perron said the site is large enough to accommodate the required minimum of forty-eight parking spaces. She commented that staff had considered a shared tenant such as a video store. The addition could also house administrative offices for the liquor department. Ms. Perron stated the basement would be used for generaUrecords storage not product storage. Ms. Perron informed the Council that Store No. 1 is leased until May of 1997. This store is proposed to be relocated when the Town Square project moves forward. The lease on Store No. 2 expires in May of 1999. She stated this would provide Council and staff two- three years to make decisions on the future location of Store No. 2. Mr. Erickson stated the City could do a five year lease with a shared tenant such as a Video Update and after the five years the additional space would then be available for the City to expand the liquor store. He commented that the additional space could be used for administration purposes now if the Council was concerned about the City leasing to other businesses. Mr. Erickson said Store No. 1 will not exist in the near future where it currently leases. He stated Store No. 2 may have some business taken away when Store No. 4 opens. The City has the option to lease less space at the current location or move to Southfork. • The timing fits well with current terms of the lease. Councilmember Sindt asked if Store No. 2 noticed a drop in sales with the construction of the new interchange. Ms. Perron responded that overall sales are still up in all three stores, however, Store No. 3 did show a slight decrease for a short period of time after the interchange opened. Councilmember Holberg commented whether a City owned liquor store should be located at a "Gateway" location in the City. Councilmember Mulvihill stated that contrary to other entrances to the City, this proposed building is much more attractive than what currently exists. Councilmember Johnson stated he is not in favor of leasing public space. Mr. Erickson responded the additional space could be used for administration purposes and future expansion of the liquor store. Councilmember Holberg suggested selling the property to a business and with the profits locate another parcel in the area for the liquor store. Mr. Erickson stated no other site has the orientation and accessibility in this area. This site provides excellent visibility and would be user friendly. Councilmember Mulvihill liked the softness of the proposed building and did not favor leasing the additional space. Mayor Zaun inquired if staff had given consideration to notifying adjacent property owners of the intended use. Mr. Erickson suggested Council have Mr. Tushie complete a rendering(s) of the proposed building with administration space for Council's review. • . t City Council Work Session Minutes November 15, 1996 • Page 7 ITEM NO. 9: Presentation of Technology Evaluation & Needs Analysis. Mr. Erickson announced this item will be rescheduled. ITEM NO. 10: Discussion regarding Dakota County HRA acquisition of Tuma property. Mr. Erickson stated that Mr. Tuma, 20845 Howland Avenue, wants to stay at this location and is not interested in selling his property. Mr. Tuma has renters in a single family zoning disrict. Mr. Erickson stated there have been many police ICR' S generated from this residence. He commented that the property is in violation of the zoning ordinance and is code deficient. Mayor Zaun suggested the HRA move forward on the condemnation. Mayor Zaun asked if the VFW was in favor as he felt their support is needed in this action. Mr. Erickson suggested the City have Mr. Walston do the necessary paper work and have HRA do the relocation. He stated HRA is willing to spend $100,000. It may require an expenditure of up to $120,000 to complete the transaction including relocation benefits. The City would be responsible for any cost above $100,000. Mr. Erickson informed the Council that tenants also have a right to relocation money. Mayor Zaun suggested staff or Mr. Walston talk to family members about the proposed relocation. • The City Council directed staff to inform Dakota County HRA to proceed with the condemnation of Mr. Tuma's property located at 20845 Howland Avenue. ITEM NO. 11: 1997-98 Budget Review, continued (Water, Sewer, Liquor). Minutes taken by Mr. Feller. Respectfully submitted, ~. _._ . ~~,~~~~_ s Leslee Gustafson '` Deputy Clerk r: