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HomeMy WebLinkAbout08/22/1994 Council Minutes1 1 1 CLOSED CITY COUNCIL MEETING CITY OF LINO LAKES COUNCIL MINUTES AUGUST 22, 1994 DATE August >22,'1994' TIME STARTED : 5:30 p.m:. TIME ENDED 6:30 P.M. MEMBERS PRESENT: Reinert, Neal, Kuether,'Elliott,,; Bergeson MEMBERS ABSENT : None Staff members present: Consulting Planner, Al Brixius; City Attorney, Bill Hawkins; Assistant to the City Administrator, Dan Tesch and Clerk -Treasurer Marilyn Anderson. Jim Golembeck from the League of Minnesota Insurance Trust was also present. The purpose of the closed session was to discuss a proposal for settlement of the Reshanau Park Estates Homeowners Association (RPEHA) litigation. Mr. Hawkins gave a brief background on this matter. A jury trial had been scheduled for August 15, 1994. However, the RPEHA had presented a proposal for settlement. The City Council met in a closed session on July 25, 1994 and directed the Consulting Planner, City Attorney and the City Administrator to prepare a counter proposal to the RPEHA proposal. Mr. Hawkins asked Mr. Brixius to outline the counter proposal. Mr. Brixius explained that he did meet with Mr. Hawkins and Mr. Schumacher and discussed whether the City should go through the process of granting a PDO for use of the outlots. If the City were to propose that the RPEHA apply for a rezone to PDO and such an application were made, the City would have to follow all ordinance requirements including: holding a public hearing (it probably would be a large audience), publishing notices in the official newspaper and directing the process through the Planning and Zoning Board. A public hearing could be controversial and the City Council would have to agree in advance that they would look favorably at granting a PDO. Mayor Reinert noted that originally the RPEHA was directed to apply for a PDO and they withdrew the application before the City Council could take action. PAGE 1 CLOSED CITY COUNCIL MEETING AUGUST 22, 1994 Mr. Brixius continued by saying that if a PDO rezone was approved by the City Council the public would expect the City to enforce all of the rules outlined in the PDO such as user rules. This could be a real issue if the City is not prepared to enforce the rules. Mr. Brixius asked the City Council if they really wanted to pursue a settlement agreement. Mr. Brixius also noted that if the matter goes to trial and the RPEHA wins, the judge may order the City to give approval of use of the outlots. If this happens the City Council cannot be held responsible for enforcing rules and regulations regarding the use of the outlots. There would be no precedent set as far as the use of the lots is concerned. Other owners of similar property will not be able to come before the City Council and demand the same use for their lots because the City did not grant such use of the RPEHA's lots. Mr. Brixius outlined settlement terms that could be offered to the RPEHA. He noted that a new house has been constructed on a lot adjacent to the access to the outlots. This may help in monitoring the use of the outlots. There was also discussion regarding monitoring the use of the outlots. It was noted that the penalty for abusing the use would be revocation of the PDO zoning. Mr. Golembeck explained the City will use a defense that the RPEHA did not go through the PDO process. Mr. Golembeck said that the RPEHA will argue that to do so would have been futile. He also said that someone here had mentioned that if the City were to approve a PDO, a precedence will be set. Mr. Golembeck said that even if the court rules that the RPEHA can use the outlots as they have requested (and the City does not give approval) a precedence will be set. Mr. Brixius continued by outlining conditions that would be placed on the PDO. Mayor Reinert said that this would be an administrative nightmare. He asked if it would be more appropriate to ask the RPEHA to apply for a Conditional Use Permit. Mr. Brixius explained that the current ordinance does not address this type of use and so the ordinance would have to be amended. The only mechanism the City has to control the use of the outlots is by approving a PDO. Mr. Hawkins told the City Council that normally a person or organization must exhaust all remedies before they start legal action. In this case the RPEHA is claiming that it would have been futile for them to make application. Mayor Reinert asked if the RPEHA broke the law when they started using the outlots. Mr. Golembeck said that he explained that situation at the last meeting. He felt that the outlots must be rezoned so that they PAGE 2 1 1 1 1 CLOSED CITY COUNCIL MEETING AUGUST 22, 1994 can be used for recreational purposes. The RPEHA must apply for a PDO rezone and go through the process. Council Member Kuether said that the RPEHA claims that they do not need a permit to use the outlots for recreational purposes. Mr. Golembeck said that the City will let them use the outlots if they go through the process. However, the Council must be on record saying that they will look positively at the request. This would not be a guarantee. Council Member Bergeson noted that the last time the City Council talked to Mr. Golembeck about this matter, they were told that the City may not "fare" well in court. Mr. Hawkins said his opinion is still the same, the RPEHA broke the law. However, since he issued that opinion, Mr. John Miller, former City Planner has been deposed and has said that the boat launch and recreational use of the outlots was suppose to be a part of the final plat approval. Also, the boat launch was dismantled by several people and some of these persons were members of City boards. This will go against the City during the trial. Mr. Hawkins said he still feels the City has a good chance of winning in a court trial. Mr. Golembeck is involved in this matter because there is a claim against the City for damages. However, nobody is trying to push a settlement option onto the City Council. Mayor Reinert explained that the City has always offered to go through the process. The chairman of the Planning and Zoning Board would agree to step down during the consideration at the Planning and Zoning Board level. Mayor Reinert said he felt that this may become a "war" and there will be more hard feelings. Mr. Hawkins said that the City Council will have to explain to other residents on the lake that this has to be brought to a conclusion and a negotiated settlement appears the most appropriate. Mr. Brixius suggested a series of meetings with other residents to let them know what the City Council plans to offer to the RPEHA. He also suggested meeting with the Planning and Zoning Board to let them know the City is initiating this action. They should know that if the City does not act positively, the court may order the City to allow the RPEHA to use the outlots as they wish without any restrictions. Mayor Reinert said he would love to see the matter solved peacefully but felt that there would be animosity. Mr. Brixius explained that if the City Council did not feel comfortable with his suggestion, they should not pursue a negotiated settlement. Council Member Bergeson said that if there are negotiations, the PAGE 3 CLOSED CITY COUNCIL MEETING AUGUST 22, 1994 RPEHA must first get into compliance by removing all the facilities that are currently on the outlots. Mr. Hawkins said that he will let the attorney for the RPEHA know about this stipulation. Mr. Brixius noted a couple of issues; who is going to distinguish between a boat that is owned by RPEHA member or a guest. Several suggestions were offered but none approved. Mr. Hawkins asked what type of use of the lake has the RPEHA had this summer? Mayor Reinert said it would be difficult to tell however, the use has increased. Mr. Golembeck asked if the City Council were to negotiate a settlement, how many boats would they like to see on the lake. Council Member Bergeson suggested that Mr. Golembeck and Mr. Hawkins establish this figure. Mr. Hawkins asked if the City Council wanted him and Mr. Brixius to start the negotiating process and set up neighborhood meetings? Mayor Reinert said yes, and soon, to show the neighbors that the City Council is concerned about the use of the lake. Mr. Golembeck asked if the conditions outlined by Mr. Brixius should remain the same. Mayor Reinert said yes. Mr. Brixius said that it should be explained at the neighborhood meetings that if problems still persist, the matter will go to trial. Mr. Hawkins said that once the neighborhood meetings have been set, the Council should be very adamant in showing that they are behind what is happening and that any agreement must include some lake usage. Mayor Reinert said he felt, in the interest of the lake, everyone around the lake should become a member of the group that looks at pollution, wake, and other matters concerning protecting the lake. Mr. Brixius said that once the neighborhood meetings have begun, and if it is determined that there will be no agreement, then everyone should be made aware that the matter will go to court and there is no guarantee what will happen. Council Member Bergeson also suggested that a closed meeting be held with the Planning and Zoning Board to let them know what the situation is. Mayor Reinert asked if all City Council members agreed with what is being proposed. Council Member Neal said he felt the matter should go to court. Council Member Kuether felt that would be to costly. Mr. Hawkins told Council Member Neal that the City has a better chance of negotiating an acceptable solution. The meeting adjourned at 6:30 P.M. These minutes were considered, corrected and approved at a PAGE 4 1 CLOSED CITY COUNCIL MEETING AUGUST 22, 1994 regular meeting of the City Council on June 12, 1995. NlarlynrG. Anderson, Vernon F. Reinert, Clerk -Treasurer Mayor PAGE 5