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HomeMy WebLinkAboutCC MINUTES 05231989 Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 101537 BOX: 21 Folder: CC MINUTES AND AGENDAS 1989 Document: CC MINUTES 05231989 • CITY OF ST. ANTHONY CITY COUNCIL MINUTES May 23 , 1989 The meeting was called to order at 7 : 30 p.m. with the Pledge of Allegiance led by Mayor Pro Tem Ranallo. - ROLL CALL - Present : Makowske , Marks , Ranallo Absent : Enrooth, Sundland Also Present: Susan VanderHeyden, Acting City Manager William Soth, City Attorney Ron Hansen, Planning Commissioner MAY 9 , 1989 COUNCIL MINUTES • Motion by Marks , seconded by Makowsk-e, to approve with the following changes : Page 3 , line two: Delete word "several . " Page 3 , line 20 : Delete word "was . " Page 6 , line 37 : Substitute "META partnership" for "owners . " Page 7 , line 31 : Add word "which" after the word "after. " Page 8 , lines 10 and 14 : Substitute "Jeffreys" for "Jeffers . " Page 8 , line 40 : Substitute "it is" for "its . " Motion carried unanimously. CHANGE TO AGENDA Mayor Pro Tem Ranallo reported that the matter of Evergreen Townhomes is to be tabled due to a request that it be set aside for a special meeting until certain issues can be decided. Additionally, passage of a City ordinance for a change in zoning requires a four-fifths vote, which cannot be obtained on May 23 , 1989 due to the two absences and one abstention. LICENSES/PERMITS/PETITIONS Motion by Marks , seconded by Makowske , to grant the following licenses as listed in the May 17 , 1989 Council agenda packet : • Contractors : J.C. Penney Co . , Inc . , Minneapolis , MN Norsk Concrete Construction, Inc . , Mounds View, MN • 1 • Diversified Construction, St. Louis Park , MN Crown Fence & Wire Company, Minneapolis , MN Porch Living, Inc . , Burnsville, MN Joe Nelson Stucco, Coon Rapids , MN Master ' s Craftsmen, White Bear Lake , MN Crandall Bros . , Crystal , MN Westphal Roofing, Mounds View, MN Amusement Devices : Bono ' s Malt Shop and Arcade (5) Motion carried:-_unanimously. CLAIMS Motion by Makowske , seconded by Marks , to approve payment of accounts payable upon withdrawal of one item, check #14197 in the amount of $1 , 829 . 33 . Motion .carried unanimously. Motion by Makowske , seconded by Marks , to approve payment of $2 , 170 . 00 to Miracle Recreation Equipment Company for the eleven-inch Cyclone • Slide. Motion carried unanimously. Motion by Marks , seconded by Makowske, to approve payment of $20 , 488 to MacQueen Equipment, Inc . for the Hustler 340 . Motion carried unanimously. Motion by Ranallo, seconded by Makowske , to approve payment of $19 , 627 . 86 to Metropolitan Waste Control Commission for sewer services . Motion carried unanimously. Motion by Marks , seconded by Ranallo, to approve payment of $582 . 92 to City of Minneapolis for one quarter the cost of operation and maintenance of traffic semaphore located at the intersection of Lowry Avenue and Stinson Boulevard, N.E. , for the period of January 1 through December 31 , 1988 . Motion carried unanimously. Motion by Makowske, seconded by Ranal.lo, to approve payment of $1 , 780 to Identity, Inc . for lapel pins . Motion carried unanimously. Motion by Marks , seconded by Makowske, to approve payment of $1 , 877 . 25 to Independent School District 282 for custodial services for February 1989 . Motion carried unanimously. REPORTS MAY 16 , 1989 PLANNING COMMISSION MINUTES Stonehouse, 2700 Highway 88 , Sign Request Planning Commission Recommendation Commissioner Hansen reported that the Planning Commission minutes dated May 16 ,__ 1989 ,prope.r_ly reflect the dis-cussion and_xecomm.enda.tions. o.f . the Commission on that date and their agreement with the findings of the City Council , as detailed on page 3 , lines 24 through 34 of those minutes concerning the Stonehouse signage package. Acting City Manager VanderHeyden indicated that the action remaining to be taken by the City Council was final approval . She presented a picture of the bar/lounge sign under discussion, given to her by Ray Nelson, and relayed to the Council Ray Nelson ' s request that the sign be permitted because it marks one of the entrances to the establishment . • Commissioner Hansen commented on the proximity of the Stonehouse to the gateway to the City, and remarked that although the Stonehouse is a source of tax revenue to the city, customers can and should be attracted to establishments without the clutter of excess signage . Mayor Pro Tem Ranallo pointed out that the new signage will bring the total square footage up to 144 square feet of the maximum 150 square feet permissible per businesss . Council Member Makowske agrees with the Planning Commission that additional signage is not needed, and that other signage stands out more with less total signage . Council Action Motion by Marks , seconded by Makowske , to accept the recommendations of the Planning Commission as detailed on page 3, lines 24 to 34 of the May 16 , 1989 Planning. Commission minutes , to recommend that the half barrel canopy sign be moved to the west side of the Stonehouse; that the letters for BAR and LOUNGE be removed from the front wall ; and that only the lettering on the sides of the barrel canopy sign which show from the street be retained. Motion carried unanimously. Mid-America Dairymen, Inc . Request Planning Commission Recommendation Commissioner Hansen referred the City Council to the recommendations of • the Planning Commission contained in their May 16 , 1989 minutes . Council Member Makowske asked whether this was a last-minute addition to the agenda, and Acting City Manager VanderHeyden replied that a public hearing was not required on the issue . Jim Gammill , Mid-America Dairymen, Inc . , requested that the Council adopt the recommendation of the Planning Commission, and offered to answer questions . Council Member Marks asked Mr . Gammill whether Mid-America Dairymen had signed a long-term lease, and whether they were searching for a subtenant to use up the remaining term of the lease . Mr. Gammill replied that they are actively engaged in soliciting a suitable tenant to fill their position in the shopping _ center Council Member Makowske asked whether "suitable" meant that they were looking for someone who could take the entire area or just the front portion. Mr . Gammill replied that two out of the three prospects who had expressed an interest in the location would like to use the entire square footage, resulting in Mid-America Dairymen completely vacating the premises . Mayor Pro Tem Ranallo questioned whether six months would be an adequate amount of time in which to resolve the situation, and Mr . Gammill indicated that he understood the Planning Commission to have • recommended a six- to twelve-month deferral of enforcement of zoning requirements . Commissioner Hansen indicated that Mid-America Dairymen has a lease which expires in November of 1991 , and that Mid-America would ideally like to have seen a deferral in enforcement until that time . Charles Diessner , Attorney for Mid-America Dairymen, Inc . , indicated that Mid-America is currently not in compliance with zoning requirements because they are not operating the retail portion of the space together with the warehouse . He clarified the fact that Mid-America ' s original request of the Planning Commission was a delay of enforcement of non-conformance with the zoning requirements for the term of the lease. Their options would be to either lease the entire space to one user, or to lease only the retail space to one user, thereby allowing Mid-America to continue to operate the warehouse. Mr . Diessner also indicated that , because of some concerns expressed by the Planning Commission and because of the lack of some background information at the time of the meeting, the Planning Commission recommended delay of enforcement of zoning requirements for six months, which is acceptable to Mid-America. Mid-America ' s intent is to attempt to lease the entire space, because if they can lease the entire space they will not need to appear -before the Planning Commission and the City Council again with further requests . They feel six months will give them adequate time to determine what they can do in the marketplace . Mayor Pro Tem Ranallo referred to a situation several years ago involving a print shop which was asked to move out by the Council because they were not engaged in retail activity and were in • non-conformance with zoning requirements , and asked Mr . Soth about the impact of this type of situation on the city. Mr . Soth replied that six months ' deferral is the maximum permissible amount of time, although even that length of time might be questionable. Council Member Makowske asked whether warehouse use fell in the light industrial category, and Soth replied that that assumption was correct. He added that former City Manager Dave Childs ' s letter to Mid-America Dairymen indicated that , if the warehouse use was incidental to the retail use, that it could be considered to be primarily retail use . In Soth ' s understanding, however, 'the retail use no longer exists and it is , therefore, a non-conforming use . In that case, nothing can be done to.. allo.w :Mid-America= to. stay- other than rezoning the property to industrial use, because a variance cannot be granted. Mr . Soth narrowed the issue down to the question of how long the city cqn defer enforcement before it becomes improper to do so. He recommended that enforcement not be deferred any longer than six months . He added that if there is one separate retail use and a different warehouse use, then it can no longer be said that the retail use is part of the warehouse use . In that case , subletting to a different retail use while continuing to make use of the warehousing area would be improper. Mayor Pro Tem Ranallo asked Commissioner Hansen if the Planning Commission had had the benefit of the information and legal opinion just presented by Messrs . Diessner and Soth they would have considered the issue differently. Hansen replied that they would have, and said that such concerns were reflected in the May 16 , 1989 Planning Commission minutes . Those concerns had to do with the amount, type , and frequency of deliveries taking place at the location. Their information was that the truck traffic was limited and took place in the rear of the space rather than the front . The fact that the activity was limited, subdued, and was not an ongoing freight operation influenced the Planning Commission to recommend a six-month delay of enforcement . Mayor Pro Tem Ranallo asked Mr. Gammill to describe the nature of Mid-America' s business operation when they first moved into the center, and if and when it had ever changed. Mr . Gammill replied that their original business operation was retail , and that in their estimation they have never changed from a retail to a wholesale operation. He described the business operation as a distribution center for their other retail stores , and stated that the use has not changed over their term of occupancy of the space. He described the typical truck traffic and its purpose at the St . Anthony location as being three to five stops per week to deliver and/or load merchandise to be delivered to their -other retail stores . Council Member Makowske asked Commissioner Hansen to define the • difference between motions made on page 6 and page 8 of the May 16 , 1989 Planning Commission minutes by Commissioners Wagner and Franzese , respectively. • Mr . Diessner replied that one of the concerns that Mid-America had with the first motion was that it was tied to the company being allowed to lease the entire space to only one user. Not being able to lease the space to a single user, Mid-America would be required to ask the City for an extension or some other type of consideration. Mid-America, for that reason, was not pleased with the first motion, but was happy with the second motion because it did not limit them to a single user. Commissioner Hansen agreed with the explanation of the difference between the motions offered by Mr. Diessner . Mr . Diessner pointed out to the Council that when Mid-America - recognized the .existence of a problem from a_ retail traffic standpoint for an extended period of time, they immediately talked to then City Manager Dave Childs about the problem. They felt that they were given the type of assurance that Mr . Childs could give them in his position that the City would work with Mid-America and not enforce the zoning requirements right away, one of the reasons being the problems that the City had had with that center and promises from the owner of the center in terms of the development and expansion and enhancement of that center . Mid-America ' s position is that they did not receive. the retailing enhancements that were promised to them as well as to the City three years ago, and that the enhancements that are being put in place now are too late for them. iMr . Diessner further indicated that former City Manager Childs was sympathetic to the problems that Mid-America faces in terms of the losses the company has suffered because of some commitments both Mid-America and the City felt had been made to them, and that from that standpoint, he understood that the City was not enforcing the zoning requirements as strictly as it might have in some other cases because there are some unique facts that relate to the Mid-America Dairymen. Commissioner Hansen reiterated that the primary concern of the Commission was not to set precedents by turning vacant space in the shopping center into warehousing space , which would be non-conforming use. He emphasized that the Commission was being generous in allowing a deferment of six months because of the infrequency of truck traffic at the location. Council Member Marks stated that it appeared to him as though the actions of the Planning Commission were actually limited by state statute , and that correct interpretation of state statute would not permit a retail use and a warehouse use in the same space if the warehouse use was separate and not incidental to the retail use . City Attorney Soth agreed with Council Member Marks, and stated that the City could not grant variances or waivers of its own zoning but would have to change the zoning. Marks stated that his understanding from the discussion was that it would not be legal for the City to work out another agreement after the six-month period was ended, and that it would be appropriate for the Council to follow the recommendations of the Planning Commission by giving Mid-America six months ' time to sublease the entire space with • no other option. Soth stated his agreement with Marks ' s interpretation of the ramifications , and stated that the only justification for delaying, enforcement for any period of time at all arises from the reasonableness of the City in allowing the leaseholder to make other arrangements . He felt that if the City were receiving complaints from a neighbor or a property owner about the situation that it might be appropriate to enforce the zoning requirements in a shorter period of time than six months , but in the absence of such complaints that six months was both a generous and reasonable amount of time . He noted, however, that delaying enforcement for the term of the lease would be inappropriate ac-tion.. _ Mayor Pro Tem Ranallo offered both his agreement that conditions in the center until recently have been less than desirable for a retail outlet , and his approval ofthe changes currently being made. Motion by Makowske, seconded by Marks, that the Council grant a six-month delay of enforcement to allow the leaseholder, Mid-America Dairymen, Inc . , the opportunity to sublease their entire 9 , 377 square feet of space to a tenant. Motion carried unanimously. • Mayor Pro Tem commended the Planning Commission for their work in arriving at their recommendation, and Council Member Marks expressed his hope that Mid-America Dairymen would be able to proceed satisfactorily. Lang/Nelson Requests Planning Commission Recommendation Commissioner Hansen reported that Lang/Nelson is making two requests : one, for a temporary trailer to be used as an apartment rental office; and two, for an additional , temporary, directional sales sign, four by eight feet in size, to be located at 2905 Kenzie Terrace , the site of the former Mr. Hobo' s restaurant, during the final phase of the Kenzington project. He stated that the Planning Commission moved to allow the trailer and the sign for a period not to exceed May lst , 1990 , subject to assurances that the sign will not obstruct traffic and is properly maintained during that time period. . Mayor Pro Tem questioned whether Lang/Nelson would encounter difficulties regarding the sign if the restaurant property were to be sold and a restaurant to begin operations at 2905 Kenzie Terrace . Paul Brewer of Lang/Nelson indicated that they do need the consent of the owners to locate a sign on that property, and that they currently have the consent of one owner but not of the other. Should such a sitatuion arise in the future, they will either have to obtain the consent of the new owner (s.) or find another location for the sign . Mayor Pro Tem Ranallo asked Mr . Brewer to describe the exact location • of the proposed sign. Mr . Brewer responded that it would be a post sign similar to that presently on site, and that it would be just off the grass right on the edge of the parking lot facing the intersection of Kenzie and Silver Lake Road. He then presented an artist ' s rendering of what the sign would look like to the Council . Mayor Pro Tem Ranallo expressed the view that the trailer was a necessity, but questioned the reasoning behind erecting a sign two blocks away from the building site. Mr. Brewer responded that, considering the present disrupted traffic pattern, their concern was to be able to direct people to the site from the closest main intersection with a minimum of difficulty in locating the site. Council Member Marks noted that the request for the sign is actually for less than a one-year period. Motion by Marks , seconded by Ranallo, to grant the requests from Lang/Nelson to erect: 1 . The proposed temporary trailer on the construction site to be used as a rental office as requested from June 1 , 1989 to September 28 , 1989 . 2 . The proposed directional sign not to exceed four feet by eight feet in the location requested on the vacant restaurant property for a period not to exceed May 1 , 1990 , subject to staff review of maintenance and upkeep of the sign and assurance that a sign in that location will not obstruct traffic . Aye: Marks , Ranallo. Abstention: Makowske . Motion carried. Thanks Expressed to Former City Manager David Childs Commissioner Hansen expressed on behalf of the entire Planning Commission their thanks to David Childs . He stated that , as City Manager , Mr . Childs was extremely helpful and an asset to them. They look forward to continuing in that tradition with Acting City Manager, Susan VanderHeyden. COUNCIL REPORTS Marks Attends Board Meeting of Youth Service Bureau Council Member Marks reported that he attended the full board meeting of the Youth Service Bureau on Thursday, May 18 , 1989 . They reviewed statistics which revealed a 90 percent chance that people who are incarcerated in state prisons were abused as children, leading to the • conclusion that one of the ways to stop crime is to deal with the problem of child abuse . Makowske Attends Historical Society Meeting, Ramsey County League of I I • Local Governments Meeting Council Member Makowske reported that she attended the meeting of the Historical Society of May 22 , 1989 , and that by-laws and articles of incorporation were worked on. Their next meeting is scheduled for the 26th of June. She additionally attended the Ramsey County League of Local Governments meeting. Items discussed were: 1 . Recycling in general and the Super Cycle program in particular . - - - 2-., Monies expended:, up to ,$8- mill-ion by someRamseyCou.n y ,parks ,, for park equipiment. 3 . Construction of bike paths and walking paths from old Burlington-Northern railroad beds , and the linking of park systems within Ramsey County using those paths . Ranallo Reports on VillageFest Mayor Pro Tem Ranallo reported that progress on VillageFest arrangements is continuing smoothly and that the float has been ordered. The next Villagefest meeting will be Tuesday, May 30 , 1989 , • at which time one of the topics of discussion will be selection of the logo. Ranallo to Attend League of Minnesota Cities Conference Mayor Pro Tem Ranallo reported that the League of Minnesota Cities Conference is scheduled for Tuesday, June 6th through Friday, June 9th, and that he is a candidate for Vice President of that League . VanderHeyden Discusses Recycling Acting City Manager VanderHeyden relayed Council Member Enrooth ' s suggestion that the Council consider whether or not St. Anthony wishes to proceed with a recycling ordinance in view of the fact that there is a glut in the newspaper market and an impending glut in the glass market . The ordinance as presently worded would require haulers to recycle or deliver to a recycler all newspapers, glass , and aluminum. Mayor Pro Tem Ranallo expressed the view that the Council should work out the wording of the ordinance, return it to the task force, and proceed from there . The current market glut of recycleable materials is likely to be a temporary situation and the City should be ready to proceed with a recycling program once market conditions change. Council Member Makowske agreed that the best course would be to proceed. Council Member Marks offered the opinion that the haulers themselves might be in favor of recycling because of recent large increases in tipping fees . DEPARTMENTS AND COMMITTEES Brief discussion preceded the orders to file the following: 1 . Hance & LeVahn, Ltd. report regarding matters conducted at the Hennepin County District Court up to and including May 3 , 1989 . 2 . Police Reserves April 1989 Report. 3 . Liquor Operations April 1989 Sales Summary. Council Member Makowske expressed thanks to the Reserves for their time. Acting City Manager VanderHeyden responded to a question posed by Council Member at the last City Council meeting, explaining that incidents listed at the bottom of the Police Reserves Report with no numbers are incidents which did not occur. ACTING CITY MANAGER Staff Meeting Notes - May 16 , 1989 Acting City Manager VanderHeyden reported that Public Works Director Larry Hamer is currently working with the Rice Creek Watershed District • (of which Silver Lake is a part) which is trying to get a grant from the State of Minnesota to study the water quality of the District in cooperation with Columbia Heights and New Brighton. Landscaping Around the St. Anthony Village Sign Acting City Manager VanderHeyden reported that a landscape plan for the area around the St . Anthony Village sign has been obtained by the Gardener ' s Club and is included in the Council packet . The money for that project would come from the Beautification Fund, the source of which is recycling. Acting City Manager VanderHeyden noted that approval by the Council of the expenditure was not required, but that such approval would lend formal support to the project . Motion by Marks , seconded by Ranallo, to approve expenditure 'of $998 . 02 to the Gardener ' s Club to plant shrubs , trees , etc . necessary for landscaping around the St. Anthony Village sign; the Gardener ' s Club to assist the Public Works Department in planting. Motion carried unanimously. City of St. Anthony Insurance Package Mark Flaten, American Risk Services , introduced the St. Anthony insurance policy for its annual review, and distributed copies of the 6/1/89-90 renewal package to the Council . He reviewed the history of the City ' s insurance policies , including the • fact that the Council in 1988 made the decision not to purchase umbrella liability but to go with the sovreign municipality limit of $600 , 000, and also chose a $10 , 000 per occurence deductible with a $50 , 000 aggregate limit . He pointed out that the savings as a result of that decision were approximately $80 , 000 in policy period ' 88/ ' 89 versus ' 87/88 . Mr . Flaten informed the Council that ' 89/ ' 90 policy year insurance costs could be reduced by approximately $5, 000 providing a change in liquor liability carrier was made from TransContinental to Park Glenn. This suggested change is prompted by the fact that Stonehouse food/liquor sales last year were estimated to be fifty-fifty in favor of food sales, but that- actual- f-igures =during- the last ten -months- of operation indicate that that is not the case , and that the City will be unable to obtain the benefits of such a favorable food to liquor sales ratio under the policy with TransContinental . Several other markets were investigated, one of which was Park Glenn. American Risk Services recommends that St. Anthony change its liquor liability policy from TransContinental to Park Glenn, a comparatively new company which now has an established track record and competitive rates, and pointed out the figures on the fourth and fifth pages of the renewal packet showing savings of approximately $25, 000 in support of that recommendation. • The difference in coverage between the two programs is that the TransContinental policy has a separate policy and a separate $500 , 000 limit for each of the four locations covered, while the Park Glenn program has a $500 , 000 shared limit among all four locations , preventing erosion of the limit- on one location due to a large loss at that one location while still providing the full $500, 000 limit at each individual location. In reviewing the property premiums versus property values , Mr . Flaten pointed out that the premiums have gone up at a lesser rate than the values , evidence that the Council has been prudent in choosing a larger deductible. Mr . Flaten indicated that the City has received dividends from the League of Minnesota Cities Insurance Trust , largely as a result of the design of the claims made contract program. Under that program, there is no tail; that is , no claims that are incurred in an earlier time are reported at some future time. Mayor Pro Tem Ranallo indicated the importance of the City' s support for 'the League, and the fact that through savings resulting from the City' s participation in the League ' s insurance program the City has actually recovered their dues to the League. Mr. Flaten reviewed the savings the City has made due to its favorable • workers ' compensation experience . Actual experience is reflected in the retrospective basis premium program, and has worked to the City' s advantage because losses have been low. Mr. Flaten recommended that the Council choose the retrospective basis premium program for the • 189/ ' 90 policy year, as well . He indicated that St . Anthony ' s workers' compensation experience has improved steadily over the last few years , and that it is currently five percent better than the average city. He commended the City for that improvement and requested that the League be allowed to use St. Anthony' s experience in a future League magazine article as a good example of how such improvement can be achieved. Motion by Marks , seconded by Ranallo, to approve the City of St. Anthony 1989/ ' 90 insurance renewal with the recommendations made by American Risk -Services . Motion carried unanimously. NEW BUSINESS Evergreen Townhomes Bill Soth briefly described the redevelopment issues involved in the Evergreen Townhomes project. He stated that under the .tax exemption laws for the notes that Evergreen intends to sell to its investors , the interest that those investors earn on the notes is tax-exempt only if it meets the requirements of the statute, one of which is that the City be a borrower. This situation would involve the City actually doing the soil correction work. Soth voiced opposition to the City • undertaking such risk and liability. Acting City Manager VanderHeyden indicated. that she would coordinate scheduling of a special Council meeting to address the redevelopment issues . Motion by Marks , seconded by Makowske, to table the Evergreen Townhomes Ordinance 1988-005 and the resolutions . Motion carried unanimously. ADJOURNMENT Motion by Makowske, seconded by Marks , to adjourn the City Council meeting at 8 : 47 p.m. Motion carried unanimously. Respectfully submitted, Doris Hoskin, Secretary WAr Ma or ATTEST: City Clerk