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HomeMy WebLinkAbout07-14-2003PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting July 14, 2003 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 6:30 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: Stigney, Quick, Marty (arrived at 6:43 p.m.), Gunn, and Linke NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Gunn/Stigney. To Approve the July 14, 2003 Agenda as Presented. Ayes – 4 Nays – 0 Motion carried. 4. APPROVAL OF EDA MINUTES A. June 9, 2003 Minutes MOTION/SECOND: Stigney/Gunn. To Approve the Minutes of June 9, 2003 as Presented. Ayes – 4 Nays – 0 Motion carried. 5. CONSENT AGENDA None. 6. EDA BUSINESS A. Report on the Soil Test Borings for the County Road H2 Property Economic Development Coordinator Backman provided a report on the soil borings indicating that the report is favorable and less soil correction would be needed than originally believed. Economic Development Coordinator Backman indicated that the tests had come in under budget noting that the EDA authorized $2,995 and the invoice came in at $2,895.00. He then recommended that the EDA accept the report. Mounds View EDA July 14, 2003 Regular Meeting Page 2 MOTION/SECOND: Quick/Gunn. To Accept the Soil Test Borings Report for the County Road H2 Property as Presented. Ayes – 4 Nays – 0 Motion carried. B. County Road H2 Residential Project Pre-Development Agreement between Pro Craft Homes and the City of Mounds View Economic Development Coordinator Backman indicated that on June 9, 2003 the EDA selected Pro Craft Homes to be the developer for this project and since then the developer has been communicating with homeowners on the block. He then said that, given the potential investments, Staff felt that a predevelopment agreement would be appropriate. The purpose of which is to delineate the responsibilities and obligations and serve as a starting point for negotiations. He then reviewed the areas covered by the agreement and indicated that Staff was seeking direction from Council as to whether the developer should be allowed to install the infrastructure improvements or whether the City should do so. President Linke asked Public Works Director Lee for his opinion on the matter. The Developer indicated they would prefer to put in the infrastructure from the standpoint of coordinating timing of the development and said it makes economic sense for all parties to have one contractor to coordinate. Commissioner Marty arrived at 6:43 p.m. Public Works Director Lee indicated it would be his recommendation that any infrastructure that is publicly owned be installed by the City. President Linke asked whether the City could work with the projected timeframe of this development. Public Works Director Lee indicated that the timing would work out perfectly with the street project that is scheduled for that area. He then said that Staff anticipates that the developer would have the site graded and ready by June 1, 2004 and then the City’s contractor would install the infrastructure. Economic Development Coordinator Backman indicated that, in terms of environmental cost, Staff does not anticipate any remediation nor does Staff expect any need for eminent domain or relocation of tenants to be occurring. He then said that the City would need to determine who would install the infrastructure. Mounds View EDA July 14, 2003 Regular Meeting Page 3 Economic Development Coordinator Backman indicated that the City would be reimbursed for the soil report as listed in the predevelopment agreement. Economic Development Coordinator Backman indicated the developer would pay for the normal permit and development review plans that are part of this project. Darren ______ from Pro Craft Homes addressed the EDA and said that if the City wants to install the infrastructure they are willing to comply with that requirement. He then said that the timing of June 1, 2004 would work but said they would like to be able to have lots available in June of 2004. Economic Development Coordinator Backman indicated that Staff anticipates closing on the property within the next few months, soil work this Fall, and construction of one or two model homes by June of 2004. He then explained that there is an existing structure on 3016 and Staff is in the process of obtaining quotes for demolition and that would be a logical site for a model home. Dan Lindberg of 7188 Knollwood Drive indicated that he represents nine of the residents adjacent to this property and would like to submit a petition to the City requesting that the City remove the four lots it owns from this development and they would also ask that those lots owned by the City be rezoned to CRP. Mr. Lindberg indicated that he has been fighting the City for 30 years to prevent development in this area and this proposal is disgusting. He then said he lives here because of the large lots and wildlife and the feeling of living in the country and this development reduces those benefits. Mr. Lindberg indicated that one of the benefits of this City is its large lots and open areas but it seems that the City is trying to develop all open areas in the City. He then referenced a copy of an article in a newspaper concerning Fridley’s proposal to eliminate Spring Brook Nature Center and said he had included it in the information he had for the EDA. Mr. Lindberg indicated that any development on this site reduces his and his neighbor’s quality of life and they are asking that the City not do that. He then provided the EDA with a petition signed by10 of the 17 residents adjacent to the development. David Minkstra of 3000 County Road H2 indicated he is deeply discouraged with this process because none of the residents knew this was going on. He then said that he feels the City is going behind residents’ backs and trying to pass this and they are elected officials who are supposed to be doing the public business for public benefit and he believes this is a violation of the public trust. Mr. Minkstra indicated that he wants the area left alone as there is an abundance of wildlife in the Mounds View EDA July 14, 2003 Regular Meeting Page 4 area that would be run out if the area is developed. He also said he would like a walking path installed to allow the rest of the community to walk the area and enjoy the wildlife. He further commented that he feels the City is trying to accommodate developers and not its own residents. Mr. Minkstra asked that the City hold a public hearing where the public is invited so that all residents know what is going on and what the City intends to do with the property. Bill Rice of 2932 County Road H2 asked how many homes would face H2 if this is approved. Economic Development Coordinator Backman indicated there would be two or three new homes depending upon which plan is approved. Mr. Rice asked when the silt fence and trail were going to be started. Public Works Director Lee indicated that was a question on the H2 reconstruction project and said that it would be in late August. Mr. Rice indicated that if this plan goes through he is opposed to extending Spring Lake Road to the south through the new development because it would cause more traffic and accidents. He then suggested moving the road down by 3016 and using a cul-de-sac. Mr. Rice asked if it is possible to get a deer crossing sign west of Knollwood and west of Pleasantview Drive because there are deer crossing there all the time. He then said that he hopes this does not go through but, if it does, he does not want Spring Lake Road extended as proposed. Mr. Minkstra said he does not believe the results of the soil testing because his house is 50 years and it is still settling and every time he has to paint he has to repair cracks in the plaster. He also indicated that his driveway sank two inches over the last 10 years. Mr. Minkstra indicated that he was an engineer for 40 years and he has dealt with technical data and had all kinds of smoke blown in his face and anytime the technical data does not pass the sanity test you should watch out. He further commented that he feels houses will crack and settle and also indicated that there is a creek in the area so that indicates that the ground water comes to the surface and anyone who tries to put a basement in there is going to be flooded and he would not trust any construction that goes back there. Mr. Minkstra indicated that with the road paving project a holding pond was put in but this proposal eliminates that pond and provides more runoff that will be detrimental to Rice Creek and he does not approve of that. President Linke asked what kind of engineer Mr. Minkstra was. Mounds View EDA July 14, 2003 Regular Meeting Page 5 Mr. Minkstra indicated he was a mechanical engineer. Economic Development Coordinator Backman indicated he has found Twin City testing to be above board and has had no negative experiences with them. He further commented that he did not tell them what to report they simply reported what was found when the soil borings were done. Mr. Backman indicated that there are willing parties involved with the project and one of those private owners is Mr. Fyksen. Mr. Fyksen of 3048 County Road H2 indicated that he has listened to the comments this evening and he is also a nature lover. He then said that a City needs to keep growing to continue to thrive and since there are financial constraints for the City right now this redevelopment project is a way of generating revenue for the City. Mr. Fyksen further commented that there is not much higher end housing in Mounds View and he feels this development offers existing residents the opportunity to upgrade their housing without having to leave the City. Mr. Fyksen indicated that he feels having a $400,000 or $500,000 home located next to his $200,000 rental property will only increase its value and not detract from it. He further commented that there are deer all over in the City and there are plenty of wild areas for them so developing this area will not drive them out. Mr. Fyksen indicated that he is open to negotiations on selling his property and feels he has the right to do that if he wants to. He also thanked the City for indicating that they did not intend to use eminent domain to force a sale if negotiations are unsuccessful. Jim Melcher of Pro Craft Homes indicated that they have received positive feedback from other residents that are interested in upgrading their housing and want to stay in Mounds View. Vice President Stigney indicated there had been a question concerning damp basements and then asked whether there is a guarantee on water infiltration on the homes to be built. Mr. Melcher indicated that he has always been very responsible for the condition of the home when it is sold as well as after that with the warranty he provides. He then said that it does not do him any good to build a house with a wet basement because it tarnishes his reputation and he has to pay to fix it anyway so the utmost care will be taken to ensure that the basements are not wet. He further commented that drain tiling would be used and the roadbed would be raised to create natural drainage. Mounds View EDA July 14, 2003 Regular Meeting Page 6 President Linke commented that the report from Twin City Testing suggests the size of footings at 1500 per square foot and he usually sees 3000 pounds. Mr. Melcher indicated that they are not looking at under sizing because the cheapest investment you make is in the footings. He then assured the EDA that there would not be a problem with that. Vice President Stigney asked whether drain tiling would be installed in the homes. Mr. Melcher indicated that they generally do so on the interior but on walkouts it works out well to do both and most of the homes to be built will be walkout basements. He then said that the drain tile and the sump would be automatic. Mr. Melcher indicated that the pond does not disappear it is relocated and they will base the size and depth based on the estimates of water drainage. Commissioner Quick indicated he would like to know what the elevations are in that area as well as the flood plain elevation. Commissioner Marty indicated that he likes Option 1 better if the City can work it into the timeframe with the City installing the streets and utilities. Mr. Lindberg commented that it sounds like this is a done deal and asked what kind of development they could expect next because he has looked at the sheets Staff has with them and it appears there is other development planned for the area. President Linke indicated that is not part of this plan and explained the line around the property indicates that the City owns the property. Mr. Lindberg asked if there would be an overall master plan rather than one piece at a time. President Linke indicated the City started with three developers and said this has been going on since January and it has been in the paper several times as well as on cable. Mr. Lindberg asked the City to get citizen involvement on these things and said he would like to minimize the impact to his property. Economic Development Coordinator Backman indicated the highest part of the property is at 902.4 feet and the lowest is at the edge of the ditch at 890. Commissioner Quick asked for the elevation for the flood plain. Mounds View EDA July 14, 2003 Regular Meeting Page 7 Economic Development Coordinator Backman indicated the Water Resources Information Management Data labels the area SC4 which translates into a regulatory flood protection level of 875 and a recommended building depth of 878.9. Mr. Lindberg indicated there is a lowland area just south of Wooddale and asked how far up that came because he has standing water in his yard. Economic Development Coordinator Backman indicated that the lowland area is 650 feet south of where they are discussing. Public Works Director Lee indicated that Staff would look into what was causing water to back up into the block. Mr. Lindberg expressed concern that the development would drain onto his property. President Linke indicated the development is not allowed to create drainage onto neighboring properties. Mr. Rice asked if there would be another meeting on this proposal. President Linke indicated the City is looking at draft proposals to work with a developer to begin the process and indicated that there have been several meetings on this already. Mr. Rice commented that he has put in drain tile and the only time you do that is when you have a water level that is too high. Jerry Blanski of 2933 Wooddale commented that he really liked what President Linke just said that you cannot create or push water onto someone else’s property because he has been fighting that issue for years with the prior City Engineer. He then said that he is not sure if Mr. Lee is aware of the situation but he has been working with Mr. Pittman and Mr. Pittman has guaranteed him that his property would be taken care of and water should not be there for his lot and the two lots north of there. He further explained that when they put the pipe in there they raised the property and created water flow that comes from two or three lots north of him and puddles in his yard when there is a big rain and he has standing water creating a mosquito hole. President Linke asked Staff to stay on top of the issue and keep Council advised. Commissioner Quick commented that, based on the elevations, the farthest in the ground any of the houses could go would be six feet and that amounts to needing an awful lot of fill to allow for basements. Commissioner Marty indicated he did not like the language in the agreement concerning eminent Mounds View EDA July 14, 2003 Regular Meeting Page 8 domain because he does not believe in that and Staff has indicated that the City is not planning on using it. President Linke indicated that the document just leaves that as an option but the City has said it is not going to use it. Economic Development Coordinator Backman clarified that eminent domain is an option of last resort and the City does not anticipate using it at all. MOTION/SECOND: Marty/Gunn. To Approve the Draft County Road H2 Pre-Development Agreement Between the City of Mounds View and Pro Craft Homes with Option 1 Having the City Construct the Street and Utilities and all Costs Recovered through Assessments Placed on the Lots Within the Development. Vice President Stigney indicated that the agreement does not list what plan is to be used and he asked whether that should be addressed. Economic Development Coordinator Backman indicated that this is a pre-development agreement and the details will be refined as the process moves forward. Ayes – 4 Nays – 1(Quick) Motion carried. C. Resolution Recommending Approval of the Acquisition of Tax Forfeited Property, described as Lot 36, Knollwood Park, from Ramsey County for $68,901.14 Economic Development Coordinator Backman reviewed how the parcel became available and indicated the City is able to purchase the property from Ramsey County for $68,901.14. He then recommended utilizing TIF funds to do so. Interim City Administrator Ericson indicated that the City could not utilize TIF funds because, according to the State Auditor, the City cannot move forward with any TIF purchases unless the plan designates it. He then said that the City could utilize funds from the special projects fund as this is a short term expenditure and the City would be reimbursed by the developer for the property. Vice President Stigney asked whether the costs needed to be established on paper with the developer. Economic Development Coordinator Backman indicated that the Agreement approved does not discuss the terms of the lot purchase. Mounds View EDA July 14, 2003 Regular Meeting Page 9 Vice President Stigney asked whether there were any time constraints on the purchase of the lot from Ramsey County. MOTION/SECOND: Marty/Stigney. To Postpone Resolution 03-EDA-175 Until Such Time as there is a Signed Development Agreement or Written Agreement Between the City and the Developer. Ayes – 5 Nays – 0 Motion carried. 7. REPORTS None. 8. NEXT EDA MEETING: July 28, 2003 9. ADJOURNMENT President Linke adjourned the meeting at 7:46 p.m. Respectfully submitted, Recorded and transcribed by: Joan Lenzmeier TimeSaver Off Site Secretarial, Inc.