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06-12 Work Session CITY COUNCIL MEETING MINUTES Richfield, Minnesota Special City Council Work Session June 12, 2018 CALL TO ORDER The work session was called to order by Mayor Elliott at 6:00 p.m. in the Bartholomew Room. Council Members Pat Elliott, Mayor; Edwina Garcia; Michael Howard; Maria Regan Gonzalez; Present: and Simon Trautmann. Staff Present: Steven L. Devich, City Manager; Chris Link; Operations Superintendent; Melissa Poehlman, Planning and Redevelopment Manager/Assistant Community Development Director; Matt Brillhart, Associate Planner; and Jared Voto, Executive Aide/Analyst. Item #1 SOLAR PROJECTS UPDATE Operations Superintendent Link provided a brief history on the topic of solar. He stated staff has been working with an installer and identified areas for the placement of solar arrays at multiple facilities, both 20 and 40 kW systems. He discussed the City’s agreement partners (Xcel Energy, Ideal Energies, and Green 2 Solar) and their relationship with the City. He stated there was no cost to the City for the installation of solar and there is an option to purchase at year 14. Lastly, he discussed the ability for the City to show how the arrays are working, by putting a monitor on the website or possibly the monitors at City Hall. Mayor Elliott asked about the energy savings and if the City did due diligence of the companies. Operations Superintendent Link responded that it is basically a wash with electricity costs, but the City will never pay more in electricity than we would if we did not have solar. He stated the City checked references and that the provider has done a number of projects throughout the state, including with Richfield School District. City Manager Devich mentioned that Jim Strommen, attorney for Kennedy & Graven, spent a lot of time with the agreements for the City. Mr. Strommen is also the attorney for the Suburban Rate Authority and is very knowledgeable with utilities. City Manager Devich also mentioned that the City took time to identify the locations for solar arrays. Mayor Elliott asked about the timeline for installation. Operations Superintendent Link responded that if the agreements were approved the Public Works Facility could begin installation in September, with the other buildings following. He mentioned the agreements and estimates will be shared with the City Council. Special Council Work Session Minutes -2- June 12, 2018 Item #2 MIXED-USE DEVELOPMENT PROPOSAL FOR 101 66TH STREET EAST (66TH STREET & 1ST AVENUE) City Manager Devich introduced the topic as an opportunity for the Council to learn about changes that have occurred on the proposed development to address issues brought up by the neighbors, knowing that not some issues can be addressed and other cannot be addressed, and answer any questions. Ryan Anderson, ISG, architect for the project, provided background and history of the project. He also discussed changes made that include additions to buffering of adjoining residential property adjacent to the building. Julie Lapensky and Mike Plantan, neighbors of the proposed development, stated the building is too large for the site, this project being a prototype for other mixed use buildings in Richfield, their interest in businesses that are compatible with R-1 zoning, their interest in making it a dead end street, and the economic viability of the development going smaller. Council Member Garcia asked about the possibility and type of a restaurant on the site. Paul Lynch, developer, responded that there are no restaurants on that site currently. He stated potentially yes if a coffee shop or Jimmy John’s-type restaurant were interested in the site. Council Member Howard asked staff how the mixed use designation worked and what types of businesses were permitted in the site. Associate Planner Brillhart referenced the resolution that was recommended by the Planning Commission. There is a stipulation in the resolution that limits the amount of restaurant space in the development to 2,000 square feet, of the 6,000 square feet of commercial. He went on to list possible types of commercial uses. Mayor Elliott suggested the developer focus on commercial uses that would benefit the neighborhood. Mr. Lynch agreed with the Mayor’s suggestion. Council Member Howard discussed the Plaza 66 development and he recalled discussions about parameters on hours that commercial businesses could be open and asked if that was put into the resolution. Assistant Community Development Director Poehlman could not recall if restrictions were included in the resolution and mentioned that the liquor regulations limit the hours of operation and could be added to the resolution, however the type of restaurant would not typically have late hours of operation, but if it was a concern it is something that could be added. Council Member Howard stated it would be something he would be interested in to build in assurances. Council Member Garcia asked about what happens if people start parking on the streets. Assistant Community Development Director Poehlman responded that staff believes there is adequate parking to serve the needs of the development, but there is always a chance for spillover parking. Staff has tended to wait to see if a problem actually arises and then addressing it. Special Council Work Session Minutes -3- June 12, 2018 Mayor Elliott commented he thought staff has dealt well with parking issues and that there have been very few locations that have been an issue, except for 68th and Penn. Council Member Trautmann asked about the financing of the project. Mr. Lynch responded with the economy doing well construction subcontractors are more difficult to hire and there are different ways as a general contractor to control their costs. He stated they are looking at the project from a cost and timing standpoint. He stated they have been looking at different materials that add to curb appeals and their costs. He also stated he has financing and would be able to have the bank provide something to the City Council if it is requested. Council Member Trautmann thanked him for his response and stated the fear he has is the Council gets pitched on one product but end up with something different due to cost reasons that lessens curb appeal. Mayor Elliott asked for the best case scenario timeline. Mr. Lynch responded if the project is approved at the next Council meeting, they would start construction in 2018. Council Member Howard discussed the developer’s responses to questions from the neighborhood and references policies in place to mitigate concerns. He commented with the Chamberlain development the developer wrote a letter to the neighborhood and city making some commitments for the policies and to work with the neighborhood and asked if that was something to do here to ensure accountability. Mr. Lynch responded by clarifying as the landlord he has a lease with renters that require them to adhere to the policies and procedures of the property. In the future if there is an issue that as a landlord he needs to address he can update the policy and provide it to his renters and they must adhere to it. He stated he could provide policies to the City and gave some examples of policies. Assistant Community Development Director Poehlman suggested providing the letter than the Chamberlain development submitted so he has an idea of what the Council is looking for. Council Member Regan Gonzalez commented that one piece is policies for tenants but another was agreement with the neighborhood related to buffering and types of fencing. She asked City staff what type of recourse the City has if things that are agreed to are not completed by the developer. Assistant Community Development Director Poehlman responded as this moves forward the Council should be approving site plans that show where all the items are to be located and materials and these should be included in the stipulations and known now. She commented on the Chamberlain, which is a much larger development; there is more opportunity for things to be moved around and language was included that the developer will continue discussions with the neighborhood about the location of amenities, but in this case the buffer cannot be moved so there aren’t as many unknowns. Council Member Howard stated there seems to be a lot of buffering and asked the neighbors for their reaction to the changes there from what it was originally proposed to what is proposed now, noting the neighbors directly to the south of the proposed development were not in attendance. Ms. Lapensky responded that it would be difficult to speak for the adjacent neighbors. Mr. Plantan responded that the concessions may be great for those neighbors it doesn’t solve the issue for the whole neighborhood of the scale and aesthetics that are troublesome. Special Council Work Session Minutes -4- June 12, 2018 Mayor Elliott commented about the aesthetics of the building and it was clarified that this was not up for approval this evening. Council Member Garcia stated she was still concerned about the restaurant and parking. She stated she would like to go to the site and view it with staff, and also meet with the nearby residents. Ms. Lapensky stated she appreciates Council Member Garcia’s comments and stated the neighborhood is feeling the project continues to progress with little concessions and people are still frustrated. She stated she hoped for something that would make it better and nothing has truly changed in the eyes of the neighborhood. She also stated that knowing that it contributes to the tax base of the city and asked what can be done to make it livable to the neighborhood. Council Member Trautmann asked about snow removal and a shadow effect that could be created. Mr. Anderson responded that this has been part of the discussion throughout the process and a concern with snow from 66th Street. He stated there will be agreements between the commercial tenants and landlord, which is typical with these projects. He also detailed changes to the site to allow for more snow storage and changes to the stormwater infrastructure to handle melting snow. Mayor Elliott asked the developer if he uses triple-net leases and about snow removal. Mr. Lynch responded he uses triple-net lease where he takes care of all of the snow, and he hires a snow contractor to remove the snow. He stated if there is a buildup of snow the contractor hauls the snow off the property. Associate Planner Brillhart clarified that the City is responsible to snow removal along 66th Street and that the Public Works Department has reviewed the plans for the property. He stated shadows slow the melting of ice, but that is true of any multi-story building along 66th Street, and our Public Works Department has not shared any concerns. He also stated that they have previously included stipulations on developments with tight parking that requires all parking spaces be available year-round. This stipulation would likely be included. Council Member Regan Gonzalez commented that she does not like the fact that the building is a big rectangular box, understanding that the developer looked at different options and asked if this is the most economically viable option for this space. Mr. Lynch responded that yes, for the last two years this is the direction they have been pursuing. Mr. Anderson also responded that when they talk about the scale of the building, the depth of the building uses standard commercial multi-residential building, a standard for the industry. He stated that in order to adjust the scale, having less depth, could really increase the costs. ADJOURNMENT The work session was adjourned by unanimous consent at 6:52 p.m. Special Council Work Session Minutes -5- June 12,2018 Date Approved: June 26, 2018 ' c A+ t \J , Maria Regan G nzalez M r Pro Tempo (eiJ I/‘14hL:- ..li:434•% *Or ed Vot even L. Devich Executive Aide/Analyst City Manager