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2003-07-01 City Council minutesPage No. 1 July 1, 2003 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, July 1, 2003 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, Minnesota was held at 7:30 o'clock p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Huber called the meeting to order at 7:30 p.m. The following members were present: Mayor Huber, Councilmembers Krebsbach, Schneeman and Vitelli. Councilmember Duggan had notified Council that he would be late. PLEDGE OF ALLEGIANCE The City Council, audience and staff recited the Pledge of Allegiance. AGENDA ADOPTION Councilmember Vitelli moved adoption of the revised agenda for the meeting. Councilmember Schneeman seconded the motion. Ayes:4 Nays: 0 APPROVAL OF MINUTES Councilmember Krebsbach moved approval of the amended minutes of the regular meeting held on June 17, 2003. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 Councilmember Duggan arrived at 7:35 p.m. CONSENT CALENDAR Councilmember Schneeman moved approval of the consent calendar for the meeting, revised to move items 6, and 6, to the regular agenda, along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the minutes of the June 24, 2003 Planning Commission meeting. b. Acknowledgment of the Building Activity Report for June. c. Acknowledgment of a report on the 12"' Annual Celebrate Mendota Heights Parks. Page No. 2 July 1, 2003 • Adoption of • • ORDINANCE ADOPTING 11 • BUILDING C•r WHICH PROVIDES •. THE APPLICATION, ADMINISTRATION, AND ENFORCEMENT OF 1 MINNESOTA STATE BUILDING CODE BY REGULATING P ERECTION, CONSTRUCTION, `• 1 ALTERATION, REPAIR, MOVING, REMOVAL, DEMOLITION, • EQUIPMENT, HEIGHT, r MAINTENANCE OF ALL BUILDINGS AND/OR STRUCTURES IN TIES MUNICIPALITY; PROVIDES FOR THE ISSUANCE OF PERMITS AND COLLECTION OF • PROVIDES I FOR VIOLATION THEREOF; REPEALS ALL ORDINANCES AND PARTS OF ORDINANCES THAT CONFLICT 1 1 ORDINANCE SHALL PERPETUALLY INCLUDE THE MOST •' ENT EDITION OF 1 11 • STATE BUILDING CODE • OF 1 OPTIONAL APPENDIX CH. • OPTIONAL APPENDIX CHAPTERS SHALL NOT APPLY UNLESS SPECIFICALLY . r•• r e. Adoption of Resolution No. 03 -41, "RESOLUTION ACCEPTING WORKA ND APPROVING FINAL PAYMENT f. Approval of the list of contractor licenses dated July 1, 2003. g. Approval of the List of Claims dated July 1, 2003 and totaling $173,493.32. Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 PRESENTATIONS Mayor Huber presented Public Works Director Danielson with a plaque of appreciation in recognition of his service as Acting City Administrator for the past three months. CASE NO. 03 -11, FEFERCORN Council acknowledged a memo from Administrative Assistant TOWN CENTER Hollister regarding the final development plan for the condominium component (Linden Lofts) of the Village at Mendota Heights (Town Center). Mr. Ross Fefercorn, from RMF Entities, was present for the discussion. Page No. 3 July 1, 2003 Mr. Fefercom explained that there are two buildings, one having 20 units, and the other 16 units. He showed the final design drawing of one of the buildings and reviewed the site plan, stating that the buildings are located on Linden Street, on the northeast quadrant of the development. There is a central court between the two buildings. Both buildings are similar in materials and feature pitched roofs, stucco details, a reddish brick and a stone veneer at the base of the buildings. Each condominium will have its own deck, and the corner units will have two decks. There will be a common gathering room unique to each building and a second floor exercise room. The gathering room is about 1,800 square feet and should accommodate a gathering of 80 to 90 people easily. Another detail that was added in the last week was a change in the roof that will allow the air conditioning unit to be hidden. Councilmember Krebsbach stated that the streetscape will important to the community and she wanted to be sure it does not look like a very large dressed up apartment building from Dodd. She asked if it could be possible to something comparable to the front, where the roof is broken up. Mr. Fefercom responded that the addition of the pergolas adds a very l nice three dimensional scale. Mr. Fefercom stated that he can bring back a colored elevation of the Dodd Road side. Councilmember Duggan noted that there is extensive landscaping that would possibly address Councilmember Krebsbach's concerns about breaking up the detail. Mr. Fefercom stated that the townhome buildings and the condominium buildings are curved, so one would never see a flat elevation from any side. Also Dodd Road is glancing away in both directions and it is preceded by the wetland area and the landscaping. Also, on the middle units the deck areas are curved also. Responding to a question from Councilmember Schneeman, it is most likely that he will begin construction on the smaller building first. Construction will begin on the townhouses in about a month. Councilmember Duggan asked if there have been improvements in the stucco used today versus the stucco used ten years ago which is causing problems for some of the homes in Copperfield in terms of internal moisture buildup and mold. Mr. Fefercom responded that as homes have been built tighter and tighter, heating and ventilation systems have not kept up with the Page No. 4 July 1, 2003 demands of the tightness of the houses and as moisture from human use inside the house builds up it isn't allowed to escape. For the past two years ago, builders have been required to add heat/air exchangers in homes to keep the level of moisture balanced. Without the exchangers, moisture builds up in the wall cavity and becomes moldy over the summer months. These homes will have heat/air exchangers. Also, the exterior is brick as well as stucco, and there will be weep holes. Councihnember Vitelli moved adoption of Resolution No. 03 -42, "A RESOLUTION APPROVING A FINAL DEVELOPMENT PLAN FOR A PLANNED UNIT DEVELOPMENT FOR THE NORTH NEIGHBORHOOD OF THE TOWN CENTER REDEVELOPMENT PROJECT." Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 CASE NO. 03-23, GELDERMAN Council acknowledged an application from Mr. John Gelderman for a conditional use permit and wetlands permit to allow an accessory structure, retaining wall and wildlife pond at 1812 Valley Curve. Council also acknowledged associated staff reports. r Mr. Gelderman stated that he is requesting a wetland permit to build a shed in the back and associated filling needs and retaining walls, and meandering nature walks in the back yard. One option involved digging a nature pond in the back yard for wildlife, but he is no longer pursuing that option. The wetland in his back yard is a type two wetland, which has no water in it, and the city ordinance has an exemption to fill about 2,000 square feet. He is asking to be allowed to fill in about a 261 square foot area for the shed, and to do a small area for the nature paths, and for the retaining walls to extend about a foot into the wetlands. Because the proposed shed is 200 square feet, a conditional use permit is required. Councilmember Schneeman stated that she supports the request. Regarding the S WCD denial of Mr. Gelderman's plan for a pond, Councilmember Duggan stated that he would support a proposal for the pond in the future because it would be an expansion and enhancement of the wetlands in the city. Councilmember Vitelli moved adoption of Resolution No. 03 -43, "A RESOLUTION APPROVING A CONDITIONAL USE PERMIT Page No. 5 July 1, 2003 AND WETLANDS PERMIT FOR A GARDEN SHED AND RETAINING WALL AT 1812 VALLEY CURVE." Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 CASE NO. 03- 03 -26, FINK Council acknowledged an application from Mr. Robert Fink for a preliminary plat and variance to create one additional lot at 1850 Arvin Drive. Council also acknowledged associated staff reports and petitions from the neighborhood. Mr. Paul McGinley was present on behalf of the applicant. Assistant Hollister stated that Mr. Fink owns two lots at 1850 Arvin Drive. The larger lot has a home on it. Mr. Fink visited staff a couple of months ago with the idea of combining the two lots and creating a new lot in the northeast corner of the larger lot. The Planning Commission recommended approval conditioned on approval of the grading plan by city engineering and that the applicant combine the existing southern, landlocked parcel with the contiguous larger lot to the north. He explained that the portion of Wachtler along the smaller lot was vacated and is currently an unbuildable lot since it has no frontage and will never have frontage. If Council approves the subdivision, the approval should be contingent upon combining it with the larger lot. Councilmember Krebsbach asked if someone created the problem by subdividing the property in the past. Public Works Director Danielson stated that Wachtler was vacated in 1974. Assistant Hollister informed Council that Mr. Fink has owned the property for about twelve to fifteen years. Councilmember Vitelli stated that it is important to note that the vacation of Wachtler created this problem for the owner. Councilmembers Krebsbach and Schneeman commented that Mr. Fink bought it under the existing conditions. Mr. McGinley, from Loucks McLagan Engineers, Surveyors and Planners, stated that Mr. Fink and Ms. Jean Zaikaner own two parcels, consisting of a north parcel at 75,586 square feet with their house on it and a vacant south parcel at 15,384 square feet. Lot 10 is the north parcel, the other parcel is a part of original Lot 9 to the south. He stated that he does not know when Lot 9 was split. He stated that the history seems to be that the Wachtler vacation must Ayes: 4 Nays: 1 Vitelli CASE NO. 03 -27, MINEA Ayes: 5 Nays: 0 CASE NO. 03 -28, MENDOTA HEIGHTS CHURCH OF Page No. 6 July 1, 2003 have been petitioned by the owners on the east side. The entire street was vacated, but the vacation is only recorded against the properties to the east in Somerset Hills and not against the properties adjoining it in Ridgewood Park. Mr. Fink proposes to divide the property into two lots. The new proposed north parcel would have 29,500 square feet. Responding to a comment from Mayor Huber, Mr. McGinley stated that two plans were included in Council's packet but only the most current plan, dated June 16, should have been included. The other plan was the original drawing and it was included in error. Councilmember Krebsbach moved to table discussion to July 15 because this affects the neighborhood, and Council has not had the opportunity to review the appropriate documents. Councilmember Schneeman seconded the motion. Councilmember Duggan stated that he has two concerns about drainage. He stated that his is comfortable with the proposal, which just moves a lot line north, and would support the proposal in general terms. Council acknowledged an application from Mr. Thomas Minea for a wetlands permit to allow construction of a deck 86 feet from the wetlands area at 1562 Wachtler Avenue. Council also acknowledged associated staff reports. Mr. Minea was present for the discussion. Mr. Minea stated that he has been a resident for nearly fifty years and has lived at his current home for sixteen years. His home had an extensive fire in January and during the process of rebuilding, they decided to put a wrap- around deck between the three season porch and the den, which would only extend six feet out into the buffer area and it will be elevated. His lawn has very little slope towards the wetlands. The vegetation is all grass. Councilmember Vitelli moved adoption of Resolution No. 03 -44, "A RESOLUTION APPROVING A WETLANDS PERMIT FOR A DECK AT 1562 WACHTLER AVENUE." Councilmember Vitelli seconded the motion. Council acknowledged an application from the Mendota Heights Church of Christ for a conditional use permit to allow installation of C Page No. 7 July 1, 2003 CHRIST a fence around the daycare playground area at 680 Highway 110. Council also acknowledged associated staff reports. Reverend Connie McCallister was present for the discussion. Reverend McCallister stated that the request is for approval of a fence that would be in back of the church and would secure the playground area. It would be a four foot tall, black galvanized fence. Councilmember Duggan moved adoption of Resolution No. 03 -45, "A RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR A FENCE AT 680 HIGHWAY 110 (MENDOTA HEIGHTS UNITED CHURCH OF CHRIST)." Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 CASE NO. 03 -30, MENDOTA Council acknowledged an application from Mendota Golf LLP GOLF LLP for an amendment to the comprehensive plan to change the designation for the Mendota Heights Par 3 Golf Course property from GC "Golf Course" to LR "Low Residential District." Council also acknowledged associated staff reports, a letter from Alan Spaulding, and a memo from Assistant Hollister regarding the recommendation from the Parks and Recreation Commission. Assistant Hollister stated that the Mendota Heights Par 3 is owned by Cashill Spaulding Properties and for at least the last six months they have been interested in marketing the property. A couple of months ago, Lyman Development presented a concept plan to Council and the Planning Commission for a 30 lot subdivision on the property. No formal action was taken by the city on that concept plan, but both the Commission and Council indicated they were not interested in changing the comprehensive plan designation to facilitate the development. Mr. Cashill has now submitted a formal application to amend the designation of the property from GC Golf Course to low density residential for the purpose of marketing the property to people who would be interested in developing the property as a single family development. Since this is a formal application, formal action is required by both Council and the commission. Notices of the public hearing by the Planning Commission were mailed and published, and there were many neighbors at the meeting. Staff has also received several emails and voice mails from the neighbors concerning this issue. He stated that within the spectrum of zoning decisions that cities make, comprehensive plan designations and zoning designations fall squarely within the legislative authority of the city. Those are the Page No. 8 July 1, 2003 types of decisions, as opposed to variances and other things, in which the city has the most authority and the most discretion in deciding what they wish to do. Unlike the concept plan proposed by Lyman Development, where the firm submitted a concept drawing showing possible lots, Mr. Spaulding has not accompanied his application with any drawing for any specific residential design. He made it clear in his materials that he has no specific development plan in mind but would simply like the change in designation. He has provided some financial information about the golf course designation and how it has been doing. Mr. Spaulding stated that the property remains under purchase agreement to Lyman Properties. Although he is solely asking for the guidance of the property tonight, it is his intent to move forward with Lyman to develop the course. He stated that he submitted a thorough accounting of the golf course situation. He stated that his firm has operated the course for eight years and tried to be good neighbors. They have done a good job of operating the course and keeping it in good condition and tried several things to make the course profitable, including putting on an addition to sell food and to have leagues and events. They bought equipment and put in a new irrigation system, but they have not been able to make the golf course a success. They would like to sell the course so they can move on to different career paths and sell the golf course to recapture some or all of their investment. Mike Cashill met with the city to express their interest in selling the golf course. In marketing the property, they made several calls to brokers and friends, and they marketed it themselves. The only interest they had was from developers. There was interest from one person as a golf course, but the price was no where near where it had to be. They decided they had to move forward with the comprehensive plan redesignation to make it compatible with the zoning. He stated that he can find no merit in the factual findings of the Planning Commission. First, they cited that a golf course is the highest and best use for the property. The price he has it under contract for is well over double and almost triple what anyone came forward with for a golf course, so its highest and best use is not as a golf course.. Second, the character of the neighborhood is consistent with single family use of the site. The golf course is the only commercial use of property within a quarter mile of the site — everything else is residential. In his opinion, the reasons given by the Planning Commission for denial are irrational and injurious to his rights as land owners. They ignored the principal question of the application, and that question is if it is fair for the city to give the property a conflicting status of the zoning and comprehensive plan guidance. Unlike any other land owner in Mendota Heights, they Page No. 9 July 1, 2003 have to satisfy the conditions of both. Other property owners merely 1 have to satisfy the conditions of zoning. If they wish to use the property for anything other than golf course, they need approval. He stated that the comprehensive guide plan is arbitrary and contradictory to zoning, and they are being forced to subsidize this resource, and that in his opinion is a taking of his property rights. Councihnember Krebsbach commented that golf courses are customarily within residential areas. She asked what business is within a quarter mile. Mr. Spaulding responded that Somerset Golf Course is within a quarter mile and Town Center is probably about that distance. He stated that on league nights and Saturdays and Sundays, parking goes half way down Bachelor and that is inconsistent with the neighborhood because the neighborhood is single family. He is working to make the property more consistent. Councihmmber Schneeman stated that she has a tough time with the request because the owners bought it as a golf course and it is a treasure to the neighborhood because it is like a park and a park is consistent with the neighborhood. She stated that she would like to know what they paid for the property and what they want for it. Mr. Spaulding responded that his firm purchased the property for $1,289,000 and this is the eighth season of operation. They have had an operating loss for all eight seasons, so they have substantially more than that invested in the property. He stated that at the time they bought the property, their attorney said that even though the comprehensive plan was golf course it was zoned residential, and they could have developed it on the date of their purchase and when they purchased it they were competing with developers. In a sense, for eight seasons they have subsidized the golf course and saved it from becoming residential development for eight years. City Attorney Schleck responded that it is interesting that Mr. Spaulding used some terms he equates as legal terms of art, one of them being that the city's actions may be injurious to him. The other one he talked about was that the Planning Commission's decisions were arbitrary. Those are legal terms of art and have specific meanings. He asked if Mr. Spaulding if he is coming before Council tonight with the idea that, depending on the decision of the Council, that he may be instituting litigation against the city. Mr. Spaulding responded that he would greatly prefer not to. Page No. 10 July 1, 2003 Attorney Schleck asked if that is something is contemplated as part of Mr. Spaulding's plans. i Mr. Spaulding responded that after eight seasons of losses and being in a situation where it is requiring the owners time and they are losing money, anything they have available to them is a distinct possibility to move on. Councilmember Vitelli asked what the sell price was to the golfing group that was interested in purchasing the course. Mr. Spaulding responded that it never got that far — it wasn't close enough to even consider. Councilmember Vitelli asked what the owners would sell the property to the city for. Mayor Huber stated that he would prefer that Council focus on the land use at this time. Councilmember Schneeman stated that since there is a threat of lawsuit, she did not think Council could even discuss the matter. i Attorney Schleck suggested that Council has a proposal before it on the agenda and perhaps Council should continue with the public discussion and address the proposal before Council. He felt that Mr. Spaulding has made it clear what position his company has and that Council should continue on with the process of evaluating the application that is before the city. Councilmember Vitelli stated that the point he is trying to make is that Council does not owe it to land owners to double their money. If this is a golf course and has been planned as a golf course, making it R -1 is essentially doubling the money of the investor and the city does not owe that to the investor. The key point he would like to see the owners pursue is an aggressive attempt to sell it as a golf course. If they are going to try to sell it to people who are interested in investing in a golf course and their sell price is $2.7 million he can see why they are not too interested. If they want to sell it to the city for $2.7 million, they would basically be trying to sell it as R -1 property. Also, in the tax statements there is a line item at the bottom of the statements called other deductions. He asked what makes up that line item that swings this from a profitable situation to a non - profitable situation. Page No. 11 July 1, 2003 Mr. Spaulding stated that the does not know without looking into it. It may include depreciation. Councilmember Vitelli responded that depreciation is listed separately as are taxes, licenses, and salaries. There is a big line item that swings it from a profitable statement to a negative statement. The other deductions item was $68,000 in 1995, $46,000, then $22,000, then $17,000. Then they jumped up to $85,000 in 2000, then $62,000. then $50,000. He stated that he would like to know what those are. Mr. Spaulding responded that he can submit his income statement which details expenses more than the tax return does. Councilmember Vitelli stated that also in the year 2000 taxes and licenses was $3,000. In 2001 it was $31,000 and $30,000 last year. He asked why those went up so drastically. Mr. Spaulding responded that he would guess there are two or three different accounting firms that prepared them and maybe they have different ways. He submits the income statements to them each year. For a few years they prepared their returns themselves. Councilmember Vitelli asked what the real estate taxes are. Mr. Spaulding responded that he believes they are $7,000 or $8,000 a year. Councilmember Vitelli asked how the company could get to $30,000 for taxes and licenses. Mr. Spaulding responded that some business operations do not jibe perfectly with tax statements and expenses get lumped together. There is a detail that typically gets attached to the tax statements to detail the expenses. He stated that he would be pleased to submit the income statements in detail. Councilmember Vitelli stated that he would like to be convinced that the owners are not grooming this to be a loser and that partners are not taking money out of it on other deductions. Mr. Spaulding responded that none of the partners have received any interest, distribution, management fee or wages or any other compensation and no return on their investment or time. Page No. 12 July 1, 2003 Attorney Schleck stated that Mr. Spaulding stated that he spoke to an attorney eight years ago who told him that the comprehensive plan has to run with the zoning. If the attorney had done more research, he would have found that the statute changed in 1995. Attorney Schleck read from Minnesota Statute 473.858 that states that after August 1, 1995 a local government shall not adopt any fiscal device or official control which is in conflict with its comprehensive plan. That is pretty clear that the comprehensive plan controls, and that has been the position that the courts in the State of Minnesota have taken ever since the law was passed in 1995. Mr. Spaulding stated that the owners were always under the impression since they purchased the golf course that they could develop the golf course, and that was kind of a safety net. If one were to look at the price at that time and the operating statement at the time they purchased the property, that justified a price of about half of what they paid for it. They paid more for it because they thought that with some different ideas and hands on management, they could improve the operations but safety net of being able to develop it if it didn't go well. That was the only reason they paid the inflated price for it, which is more than it is worth as a golf course today. Golf courses are not being built or acquired in Minnesota at this time. He has sold two other golf courses and is attempting to sell this one and has a fourth one that is currently for sale. The amount of interest he has received over the past two years on all four of them has been negligible as far as operating a golf course. Councilmember Duggan asked if those golf courses were sold as golf courses or for development. Mr. Spaulding responded that they were sold to developers. Councilmember Duggan stated that he believes there was some discussion in one of the local papers in the recent past about golf courses and their challenges, and he feels Council needs some clarification on the finance questions raised by Councilmember Vitelli. He stated that the response from the people is that they want the property open and the golf course to continue. The challenge to the city has is how to help that. He would like to work amicably with the owners but to keep the options open for three or four months. Mr. Spaulding stated that he sent a letter to the Mayor and Councilmembers after the Planning Commission meeting. He stated Page No. 13 July 1, 2003 that he called Lyman Properties to see if they were amenable to keeping it as a golf course and he was open to that. Councilmember Duggan asked if there is an end date to the purchase agreement. Councilmember Schneeman stated that the issue that is before Council is the comprehensive plan designation. Mayor Huber stated that the Council updated the city's comprehensive plan a few years ago and held many public hearings. He asked Mr. Spaulding if he participated in any of those hearings. Mr. Spaulding responded that no one on behalf his company was aware that there were any hearings. Mayor Huber stated that he is certain that the hearing notices would have been posted in accordance with law. This would have been discussions that took place after the law changed in 1995. When Council was going through that process, Mr. Spaulding and his partners chose not to participate in the process even though the law changed. Mr. Spaulding responded that he was not aware of it. None of the partners attended the hearings. Councilmember Krebsbach stated that the plan updating process was very extensive. Mayor Huber asked for comments from the audience. Mr. John Chasman, 723 Evergreen Knolls, stated that Council is faced with the challenge of balancing the good of the city and being reasonable to the businesses in the city. With respect to the comment from the applicant that they always knew that they could develop the property, he submitted that they always intended to develop the property. This was designated as a golf course in all memory since 1979. Notwithstanding the issues of zoning and the land use act, it was still designated as a golf course. Did the applicants undertake the venture and use reasonable approach in the businesses they took. The applicant cites they purchased the property with the intention of continuing the golf business. Any business person would be applying financial models to determine the return on investment. Certainly, someone purchasing four golf courses would have a keen eye on the numbers. The applicant stated Page No. 14 July 1, 2003 at the last meeting and today that they had to bid up on the Par 3 property. By the applicant's admission, the property was valued at $900,000 when they bought it but they paid $1.289 million. They could say that they made a mistake in 1995 and one mistake is reasonable. They could always sell as development and realize a gain, but they decided to keep going. The land use act was adopted in 1995 and they had to know, because debate was going in the legislature, they had to know that something was going on with the comprehensive plan. There was a review of the city's comprehensive plan in 1998 and it was known then that it was designated as a golf course. They could say they did not know that the comprehensive plan update was coming. Their reasonable plan was not reasonable in the beginning and the applicants should have initiated what they intended to do in 1995. Going eight years is not going to change the original flaw in their decision. It is not reasonable for the city to consider eight years later to make adjustments in a flawed business plan in 1995. In looking at the tax statements, he was not sure where the cash flow was going. He did not understand if it is a loss or not a loss. What was submitted was one of four pages of the partners tax form. There is more detail on the other pages, and he would suspect those pages would say there was a gain on the land. They built equity and could sell it for their price. Mr. Tom Van Horn, 758 Evergreen Knoll, stated that has he understands it, the owners of the Mendota Heights Par 3 Golf Course have applied for a change from the GC designation to the low density residential designation. That could be summarized more simply: the owners are here to ask for a bail out. They have talked in the past about adding sprinkler systems, redoing the club house and putting up a new building for machines, and he commends them for that. That is not what this is about tonight. This is all about some businessmen who paid too much, borrowed too much, and now want the city to bail them out at the expense of decades of citizens of Mendota Heights so that they can make a couple of million dollars. That is what this issue is all about. He pointed out that since the owners purchased the course in 1995, first of all they paid $400,000 to $600,000 to much. They stated in the material they submitted to the Council that the selling price of the land parcel to them was higher because they were competing with other buyers who were planning to buy the land for development. So they paid too much to beat out the other developers, and it was their decision to do that. They also stated in their letter that they were comfortable paying the higher price and the reasons why they paid the higher price. Just because they outbid other developers doesn't mean they should be Page No. 15 July 1, 2003 bailed out. In their letter they stated that if they had known about the looming changes to the statute in 1996 they either would not have bought the property or would have done so at a vastly reduced. He stated that statutes change every year, and that is what happened here. He felt that the change was made to prevent people from doing exactly what Mr. Spaulding is asking. Most importantly, they paid too much and borrowed too much and it is too much of a debt load. If one looks at the 1995 tax statement, they had $65,000 in interest alone and in 1996, $71,000 in interest alone. That was greater than all of the maintenance and repair and all the salaries combined. They are businessmen and can borrow as much as they want, but that is not a reason for a bail out and it is not the reason the golf course is not profitable. He felt that they were intending from the beginning to be right where they are now, to pay to much, to borrow too much, to never show a profit and to bull doze the golf course and walk away with $2 million. They have done that to two other golf courses. It is time to tell them not in Mendota Heights. He stated that from what he has been told, the owners are very successful businessmen, not only because of all the money they made from selling the other golf courses but because they have had profitable businesses also. They do that because they buy low and sell high. Sometimes people make mistakes, and they have not learned that yet. They are with some good company, the state, many cities in the state, the schools and many investors who have lost millions of dollars recently. They have to do what everyone else does and take a loss. In this case, they sell the golf course as a golf course. He stated that he hopes that fifty years from now that the golf course is still there for the enjoyment of the city. Mayor Huber stated that Mr. Spaulding is here on a land use matter and he is very sympathetic to the fact that the proposal has people's emotions running high. He asked those who comment tonight to carefully consider what they say. People may not be happy with what the applicants want to do, but they are here to make a proposal. He would like to keep the comments related to whether this is the appropriate land use. He asked people to keep from making comments that might cross over to being disparaging remarks about the applicants. Dr. Jim Smith, 1716 Trail Road, stated that he does not know much about land use or business but does know about green space. He moved to Mendota Heights twenty years ago because he saw the city Council as someone who would protect the environment and the green space. It is sad for him to see what is happening to the green space on Dodd Road. It is also sad that Trail Road has become a Page No. 16 July 1, 2003 speedway. That is the reason he wants to see the golf course remain as a golf course. The city needs green space. That is what land use is all about — protecting the future of the environment. Those in the city who were involved when the comprehensive plan was updated were concerned about insuring there would be a certain amount of green space in the city. When that is gone, Mendota Heights loses its integrity and it becomes like every other suburb. Ms. Leigh Opp, 789 Evergreen Knoll, stated that she agreed with Councilmember Vitelli's comments. She stated that if she were here asking to change her single family lot into a commercial business and ask for a zoning change for the use of that property she doesn't think people would let her double or triple her money by selling it as commercial when she bought it as residential. She didn't know why there would be any different treatment for other people in the same community asking to change a golf course to a different type of zoning. Mr. Bruce Kopuck, 1696 Dodd Road stated that since he has moved to his property, the Ridder property to the south has developed and with the prospect of the golf course being developed he has already seen a significant diminishment in the wildlife in his area and that is a source of significant sadness to him. As he drives home from work down Dodd Road, especially in the summer evenings, he sees many kids in golf classes on the golf course and he commends Mr. Spaulding for sponsoring that activity. That is what makes Mendota Heights a special place to live. He stated that he hopes Council will be resolute in its commitment to saving these wonderful open spaces. Mr. John Roach,706 Evergreen Knolls, asked whether low density means fewer homes. He stated that under the original (Lyman) proposal the homes were going to be $500,000 to $700,000 and that would almost have to be high density. That is a low price range considering the homes that butt up to it. Mayor Huber responded that something other than single family use would have no chance. Councihnember Duggan stated that the Lyman proposal was for 30 lots and he asked if they would consider reducing the number of homes. If it went forward, the reduction would be to 22 or 23, and the sizes of the lots and the homes would have been in keeping with the Evergreen Knolls area and the Bachelor side. The city has no control over what the cost of the homes might be. C, Page No. 17 July 1, 2003 Ms. Pam Ehrlich, 1656 Gryc Court, stated that she feels the golf j course should remain open space for children. She was concerned about the new homes on Dodd and all the homes on 110 and Dodd Road, and the city must retain open space for the children. Mr. Spaulding stated that the golf course was built in the 1950's as a profit making business. His point is that his company is only the second owner. He asked if it is fair that the ramifications of the change in designation fall on their shoulders. The person they bought the property from bought it and developed it for a profit and sold it to them for a profit. He stated that he was 27 years old and living in an apartment on Victoria Road with Mike Cashill when the golf course came up for sale and they thought it would be fun to buy and maintain a golf course. At that time they were renovating apartment buildings. They thought the golf course would be a diversion and would be an enjoyable part of their career and they did most of the renovation of the club house themselves. Two years ago they spent $70,000 on a maintenance shed. Why would they spend $70,000 if the planned to tear it down. Four years ago they spent $50,000 on a new irrigation system. It is unfair for people to say they had negative intentions or planned to defraud the city of its open space. They came to the city before they tried to sell the golf course. Councilmember Schneeman asked if they bought the other golf courses before or after Par 3. Mr. Spaulding responded that Mendota Heights was the first golf course they purchased. Councilmember Schneeman stated that when they were showing no profit all along she felt it made no sense to that they would buy three more golf courses. Mr. Spaulding responded that they paid $855,000 for the second course, $1 million, for the third and $600,000 for the fourth one. The people they bought the golf courses from probably called them because they were dumb enough to pay that much for the first one. Councilmember Schneeman responded that they sold them to developers and made a lot more money. Mr. Spaulding stated that in eight years of operating the golf course he has received dozens of calls from neighbors. He tried night golf with lighted golf balls and the police were there all the time. They had a major law suit that cost tens of thousands of dollars because Page No. 18 July 1, 2003 golf balls were hitting the home. They had people calling and asking them to move trees and to compensate them for golf balls hitting their cars. All those things made them spend additional money and make it less profitable. He asked where all those people are now He felt that single family residential has a less negative impact. His intent in applying was to get a change in the comprehensive plan designation to be consistent with the zoning, and he asked for the lowest possible use. He asked the Council what the negative impacts of that property being single family residential would be. Mayor Huber stated that Mr. Spaulding has talked about conflicting guidance from the city, but the city has not changed the comprehensive plan designation on this for twenty five years or more and all notices of public hearings were published when the comprehensive plan was updated. Mr. Spaulding responded that the city has always been very fair to them whenever they have asked any changes, and he has never received any conflicting information from the city. Councilmember Krebsbach moved adoption of Resolution No. 03- 46, "A RESOLUTION DENYING A COMPREHENSIVE PLAN AMENDMENT FROM GC "GOLF COURSE" TO LR "LOW- " DENSITY RESIDENTIAL" AT 1695 DODD ROAD." ` Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 RECESS Council took a brief recess. CASE NO. 03 -16, Council acknowledged an application from Mr. Craig Wagenknecht WAGENKNECHT for preliminary plat and variance to create three additional lots at 1062 Wagon Wheel Trail. Council also acknowledged associated staff reports and a letter of opposition from Mr. Roger Manthey, 2258 So. Lexington. Assistant Hollister stated that the Planning Commission recommended approval of the subdivision conditioned upon the applicant consulting with the Fire Chief and submitting revised drawings, both of which he planned to do this week. Mr. Wagenknecht has indicated that he would be willing to continue the discussion to the July 15 meeting to allow him time to prepare revised drawings and discuss access and vehicle turn around with the fire department. With respect to the 60 day review period, the original 60 day review period has been extended an additional 60 Page No. 19 July 1, 2003 days, to the beginning of August. July 15 would be the last regularly scheduled meeting at which Council can take action on the matter under the current 120 day period unless the applicant agrees to extend the review period. The application is to divide the property located at 1062 Wagon Wheel Trail into four lots. Mr. Wagenknecht came to Council with a proposal for three lots in May and had with him an alternate plan for four lots. The Council referred him back to the Planning Commission for consideration of the four lot alternative. The Planning Commission recommended approval of the four lot alternative with seven conditions that are detailed in a proposed resolution to approve the preliminary plat. Mr. Hollister reviewed each of the recommended conditions. Mayor Huber stated that he viewed the property over the weekend and the more he has thought about the proposal, his feeling is that the appropriate development of the land would be to bring in a public street. That may mean that only three lots could be developed, but Council has clung tightly to the concept that lots should front on public streets and he feels that should be continued. Councilmember Krebsbach stated that she may end up agreeing, but that she would find it more desirable to have three lots than four and whether the street is private or public she would like to see a turn around at the end. Councilmember Schneeman stated that she would like to hear the input from the Fire Chief before making any decision. Councilmember Duggan stated that if the acreage on the drawing is added up, that does not equal the acreage that is presented for the four lots on the plat that was submitted. He was concerned that there may be other inaccuracies. He stated that as he looked at the preliminary plat requirements, the submissions are incomplete. There is no tree survey or soil survey and there is no vegetation and tree preservation plan. Mr. Wagenknecht stated that there is a drawing that shows the topography and the significant vegetation. He stated that he contacted Dakota County and they gave him the soil results. That was included in his original submission letter. Mayor Huber stated that if Mr. Wagenknecht has additional materials he would like to submit, Council can continue the discussion. He also asked for comments from Council on whether all of the lots should front on a public street. If that is the consensus, Page No. 20 July 1, 2003 Council should deny the current application and allow Mr. Wagenknecht to reapply and come directly to Council. Councilmember Krebsbach supported a public street. She also stated that she feels the proposal should be for three lots. Mr. Wagenknecht responded that at the last Council discussion he presented a three lot proposal that included a flag lot, and Council told him that it would prefer four lots with a common road over the flag lot. With respect to the private road issue, he stated that in the past sometimes there have been problems with private roads because they were done without any legal maintenance agreement between the adjoining property owners. With townhouses and common shared properties being more common now, agreements are being put together and if there is an agreement between all of the four property owners saying that they all agree to maintain the road every so many years, those problems can be avoided. Councilmember Schneeman stated that she would prefer to table the matter to July 15 so that more information is available. Councilmember Duggan stated that former Planning Commissioner Friel called him today and stated that he was surprised that Council was considering a subdivision with a variance in it. Normally in an ` independent subdivision there should not be any variance request. The subdivision should be able to stand on its own merits. City Attorney Schleck responded that the variance is that a buildable lot in Mendota Heights must front on a public street. In the preliminary plat as proposed, the lots will not front on a public street — what is proposed is a private street. Normally one would not ask for a variance from the subdivision ordinance requirements, you would either be able to do it or you wouldn't, because subdivision is not a restriction on land use. Mayor Huber stated that it appears that there is a consensus that the lots should front on a public street. The preferred route to take would be to deny the application and let Mr. Wagenknecht that if he wants to come back with a new application, he can come back directly to Council. Councilmember Krebsbach moved to deny the application. Councilmember Duggan seconded the motion. Ayes: 5 Nays: 0 Page No. 21 July 1, 2003 Councilmember Schneeman stated that when the city does an improvement project it becomes very difficult in the assessing process if there are both public and private streets. Councilmember Duggan moved to allow the waive the 180 day requirement for reapplication and to waive the required application fee. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 CASE NO. 03 -31, BUROW Council acknowledged an application from Burow Pond LLP POND LLP for a conditional use permit for planned unit development and a wetlands permit to allow a 24 unit attached condominium building and accessory structure at 1875 South Victoria. Council also acknowledged associated staff reports, a neighborhood petition and copies of numerous email messages. Mr. Dan Tilsen was present on behalf of the applicants. Assistant Hollister stated that the applicant has already applied for and received approval of a preliminary plat for seven single family lots on the property. Victoria Road is currently a county road and there are discussions going on with Dakota County about seven driveway accesses and about turn back of the road to the city. In response to the interest expressed by some neighbors, Mr. Tilsen agreed to apply for a conditional use permit for a 24 unit condominium building on the north end of the property and leave the southern part of the property open and green. Mr. Tilsen appeared before the Planning Commission last month with the concept and the commission recommended denial. The city planner had suggested that perhaps if the city approved a CUP for a condominium building, that it be limited to 16 units. Mr. Tilsen indicated that he needs 24 units to make the project feasible and if he was limited to 16 units he would not pursue the condominium proposal. Mr. Tilsen also indicated that if the CUP application is denied he will continue to pursue the seven lot subdivision. Mayor Huber asked if anyone on staff who would take exception to the city planner's recommendation to limit the building to 16 units. Assistant Hollister responded that the planner based his recommendation on what he perceived as the buildable density of the lot — he removed the pond from consideration. Mr. Hollister agreed with that analysis because there is a clause in the PUD section of the Page No. 22 July 1, 2003 zoning ordinance that says that for density purposes bodies of water cannot be used. Mayor Huber stated that some residents have asked about the possibility of making Marie and Victoria a four -way stop. Dakota County has indicated the road will be turned back and if that occurs it will be under Council's control to determine whether to install a stop sign or not. Installation of stop signs are directed to the police department for analysis, and if the road is turned back, Council will direct the Police Chief to do an analysis. Mr. Tilsen stated that his feeling is that Council has the authority to interpret a PUD and CUP density issues and give flexibility for a project. At 16 or 24 or even 30 units, this project would be a very low density project. He feels Council has the authority to decide whether it is appropriate to have a 24 unit building on the site. He stated the rule of a 10 acre minimum for a PUD is arbitrary and seemed to be a good number to choose (he was on the planning commission at that time) this parcel because it is close enough to ten acres that the intent of the ten acre rule need not be applied. He did not feel that the commission discussed the issue very thoroughly with respect to his proposal. He stated that he feels his proposal is about vision, good planning, best use open space, green space, historical significance and the rural character of Mendota Heights. He is proposing to keep and restore the existing barn. The barn and the open land would be maintained by the home owners association. He talked to people who build condominiums and others and was told that two parking spaces would be needed underground for each of the units. There are two levels of buried parking underground and eight units on each of three floors above the parking. He tried to minimize the size and height of the building. He realizes that architecture is an issue that has taken on a life of its own for the project, and if Council has the vision to approve the proposal he will work with an architectural committee and work out the issues. He proposes an all brick building with stone around the bottom to match the barn. He would be willing to put a gable roof on it if desired, but he is trying to keep the building as low profile as possible. The trees on the north, on the hill and along the trail would remain with this proposal. It preserves 55% to 60% of the view from Victoria. The issue on the golf course development was open space and protecting the character of the city. He believes what he is proposing is a good plan. Although it does raise some emotions, he believes it is good for neighbors to discuss it. Page No. 23 July 1, 2003 Mayor Huber responded that what he has consistently heard from residents has been very complimentary of Mr. Tilsen and how he has approached developing the property, whether those people were pro or con with respect to the condominium proposal. Councilmember Krebsbach asked about the proposed architecture and was concerned about reducing the mass. She noted that Mr. Tilsen has stated that he is amenable to working with an architectural review committee, which would include members of Council. She asked to what extent Mr. Tilsen is willing to make indentations in the building to make it look _much more like a residential structure. Mr. Tilsen responded that he would be willing to work with the city. His focus has been to create a building footprint that minimized the size of the building and made the most efficient use of the land and retained the maximum amount of trees and open space. When he discussed the matter with staff, they felt it would be acceptable at this point just to show pictures of what the building might look like. He showed a photo of the Eagle Ridge condominium building, which he feels is a handsome building that stands the test of time. That is why he was proposing all brick construction. Councilmember Krebsbach stated that would not be acceptable in this neighborhood and would not be appropriate with the historic barn. The building should more closely reflect the character of the neighborhood. Mr. Tilsen responded that he has not designed the building and is very open. He stated that under the PUD, Council has the authority to approve everything in the design and he is very willing to work with an architectural review committee. Councilmember Krebsbach stated that the architecture is one of the very strong conditions of her supporting the application and also that the footprint not increase. She asked what guarantee there would be that the open space would exist in perpetuity. Mr. Tilsen stated that part of the PUD approval would be that the property not be further subdivided. He also stated that nearly all of the land south of the barn and west of the barn is in a drainage utility easement. It would be part of the proposal that there could not be further development. Councilmember Krebsbach asked what can be done to guarantee the preservation of the barn for twenty or thirty years. Page No. 24 July 1, 2003 Mr. Tilsen responded that he is committed to restore the barn and will pay for that restoration but is not committed to bring it into a use. He would like the flexibility for the association to be able to use the barn for a party room or storage, but they would have to comply with all of the building code requirements if they wanted to use it for any use other than no use. He stated that the barn is better than it looks. It needs shoring up and needs a lot of money put into it to make it look like. It would be set up so that the association would maintain it. Councilmember Krebsbach asked about maintaining the grassland that gives the view to the pond. Mr. Tilsen stated that if it is left alone, the maples would take it over. The association would be committed to maintain the area as it is, even more prairie like. Councilmember Krebsbach stated that she walked around to the other side of the pond and she is more committed than ever to a condominium use. The reflection of the barn in the pond is a phenomenal site and if the condominiums can be scaled to appear to be more residential and she has the other assurances, she is prepared to support it — at 24 units. Responding to a question from Councilmember Krebsbach, Mr. Tilsen stated that if he went to 16 units it would increase the footprint of the building by 30% and greatly increase the market range. He would market 24 units in the range of $300,000. With 16 units he would have to increase that range to well over $550,000. That is not the price range he wants to be in and he does not think it would work and they would take a long time to sell. It would also not serve the community well. The calls he has been receiving are from residents in the neighborhood who are looking to downsize and have money in their pockets after they sell their homes. He stated that he has done a layout for a sixteen unit building with 32 underground parking spaces, but it does not work well and would cause the removal of more trees and less of a setback from the lot to the north. There was discussion over the planner's comments on density. Mr. Tilsen felt that there are many examples in the community of where water has been included in land area for density purposes. This is a unique property and it will take unique thinking to accept that the PUD is a good use. Page No. 25 July 1, 2003 Councilmember Schneeman asked Mr. Tilsen whether he really cares l whether the development is single family or condominium. When Mr. Tilsen appeared before the Council with the single family proposal he said that it made no difference to him one way or the other. Mr. Tilsen responded that he feels that the PUD is a better use and better for the citizens of the community. When he made the other proposal, he wanted to come to the city with a project that would meet all city requirements and needed a project to move the county forward and needed a project so that he could tell the bank he had a project. He also needed a project so that he could feel good about spending more money and take it to the next step. Councilmember Duggan stated that Council heard many community comments when the seniors assisted living proposal was made for the property. That would have been 60 units and would have blocked and destroyed everything. Mr. Tilsen is proposing a 24 unit condominium tucked on a corner of the property. He stated that like Councilmember Krebsbach he is surprised that he favors the condominium versus single family. His concern over the single family proposal is that people want open space in Mendota Heights. The condominium is the only way to save 50% of the open space on the site. He stated that he has had four or five calls in favor of the condominium. He commended Mickey Kieffer and Kevin Milbery for the work they have done with regard to the development. If there are seven homes on the property, no one walking by on Victoria will be able to see the pond. He did not care for the building drawing showed by Mr. Tilsen but would support something similar to the Eagle Ridge development and similar to Town Center The condominium proposal would keep the area open, which is what most people want. Mr. Mickey Kieffer, 1830 Rolling Green Curve, stated that there were surveys sent out to everyone within one and one half to two blocks of the perimeter of the site. The survey results were that 174 respondents wanted seven single family homes and 18 people who wanted condominiums. The planning commission declined the request for the condominium, which apparently has not met two of the five requirements. He is present to represent his neighbors who would like to see single family homes, which has been approved by the city, and to reject the conditional use permit for planned unit development and the wetlands permit. Traffic from seven homes would be 28 trips per day versus 96 trips per day from the condominiums. Page No. 26 July 1, 2003 Mr. Kevin Milbery stated that he likes to think outside the residential versus condominium argument and look back at the history of the property and what Mr. Burows brought to the city. What has happened is development allows seven single family homes but it would be very invasive to the city as the way it is positioned. Some of the developments that have taken place in the city, such as Knollwood, have really changed the look of the area. What would be accomplished with a 100 foot lot and a home that could be as wide as 80 feet with a 2.5 story front and a base of three stories on the back side, the wall that would be created would take away everything the property has allowed the city to have. The open space that has been created in the condominium proposal is a gift that everyone will benefit from. He knows that change is inevitable, but he feels it would be in the best interest of the community to approve the condominium versus seven large homes on 100 foot lots. In his survey, he surveyed 49 properties surrounding the pond and 18 owners responded positively to the condominium and 9 responded negatively. The Kieffer survey was more comprehensive and included a much larger area, including Eagle Ridge. He was surprised that the people who live in those townhouses and condominiums oppose the condominium. He felt that the space generated by the condominium proposal and the beauty of the property will make the city a more valuable place. Responding to a question from Councilmember Krebsbach, he stated that he had 7 ` people who live on the pond favor the condominium and five turn it down. In the second survey, there were more people on the pond who said no to the condominium. Councilmember Krebsbach noted that the vast majority of the people who responded to the Kieffer survey live in Eagle Ridge. Councilmember Schneeman stated that she knows people who boarded their horses on the Burow farm and they oppose the condominium. Councilmember Krebsbach moved to approve the application before Council with the condition that the barn be preserved, that there be an architectural review committee comprised of neighbors and Council members, that the open space be guaranteed in perpetuity, that planting of the green space be managed so that brush does not overtake the view, and that the barn be strengthened so that it can withstand normal wear. Councilmember Duggan seconded the motion. Page No. 27 July 1, 2003 Mayor Huber pointed out that if Council approves the motion, Mr. 1 Tilsen has the conditional use permit. There is a departure from density, and Council would be giving the applicant a lot without seeing anything. He did not think Council would give anyone else that much latitude given the concerns that have been expressed about the structure. Council-member Krebsbach stated that she would want the ability that the architectural review committee can determine a standard. Councilmember Duggan stated that this is under a PUD and Council has all kind of latitude in reviewing and approving the final design and tell Mr. Tilsen what Council wants. Administrator Lindberg stated that Council could require Mr. Tilsen to come back for final approval and Council has the opportunity to set conditions, but granting this tonight would be granting a lot without seeing many concrete details. Council would have the opportunity for review in the future, but Council would be giving an approval tonight. Councihmember Schneeman stated that she is not going to support the motion because she has been contacted by too many people who were happy there were going to be houses there. She stated she thinks Council has a better feel for what will go there for sure. The survey really didn't make a lot of difference to her, but the people who boarded horses there want houses there. They have been on the property and kind of lived on it. Councihnember Vitelli stated that he will not support the motion either. There is too much of a risk in the maintenance of the barn because it has to be paid for by the association and those prospective buyers are not here. It is too much of a risk If they don't come forward with money, the maintenance won't happen. Secondly, approving this and then working architectural details is too much of a risk also. He felt there will be a big gap between what Mr. Tilsen can afford and agrees with an what the residents agree with. The third item is the density, 24 families versus seven is a big difference —and it bothers him planting that in the middle of what would be expected to be a single family residential area. His fourth concern, also a risk item, is trying to guarantee that the rest of the space will remain open in perpetuity. What he has learned during his time on Council is that there are all kinds of covenants and rules and ten years later there are reasons to change them. He does not know that legally one can guarantee there will always be green space and there Page No. 28 July 1, 2003 will always be a barn. There is too much risk in that. Finally, to him it is just too undefined to be granting approval to the proposal. Councilmember Krebsbach stated that if there is if there is some other way more information can come forward she would be fine with that but does not know what that information would be in terms of what kind of conditions to set. Mr. Tilsen has approval for seven lots but doesn't have driveway approvals. If Council is moving in a different direction, she would think Council would have to take some kind action or get some kind of assurance that he will do more in terms of developing what the architectural design would look like. She agreed with Councilmember Vitelli that there is a risk in approving the conditional use permit and that is why she wants it some way defined that there would be a committee to review the architecture. With respect to the risk over guaranteeing that the open space will remain, her point is that by denying this for the single family plan, the open space is gone and the barn is gone without making an effort to preserve it and retain it. Mr. Tilsen stated that there are many PUDs that have guaranteed open spaces. The Ivy Hills townhouses have huge open space and they tried to add on but the city turned them down. The density was tied to the PUD, and to put a deed restriction on a parcel that will be one parcel is commonly done in cities. The deed restriction says that ` it cannot be further subdivided and that is filed with the county. With respect to the barn, he would want to have an attractive product so that people would want to buy a condominium there. He would fix the barn up and the long term maintenance, with a maintenance schedule, by the association is a slight risk in his opinion. As far as the issue of 24 units and architecture, this has been a healthy discussion. He wondered if there is a way to fashion approval contingent on the architectural or with the table it with the architectural coming back to Council. The problem is if Council is still against it on the basis of 24 versus 16 units, there is no reason for him spending the money on architectural detail. The question is whether or not he has a project that Mendota Heights wants. He asked Council to come to a direction that would allow him to either stop or move forward. Mayor Huber stated that there should be action on the motion. Councilmember Krebsbach stated that she would be willing to withdraw the motion if Council wants a motion to table. Page No. 29 July 1, 2003 Councilmember Duggan agreed, stating that the matter can either be tabled or held over until Mr. Tilsen has time to come back on his initiative with more acceptable and more detailed architectural designs. There will be another 30 to 45 days before anything can happen about the driveways. That would give the neighbors more time to think about open space versus the single family. Mayor Huber stated that his hang up is the 50% departure from the density and he was concerned about Mr. Tilsen spending more money when he is probably not going to support the conditional use permit. Councilmember Duggan withdrew his second to the motion. Councilmember Krebsbach withdrew the motion. Councilmember Krebsbach moved to table. Councilmember Duggan seconded the motion. Councilmember Krebsbach stated that reason she moved to table is to allow Mr. Tilsen time to come back with architectural drawings. Mayor Huber responded that Mr. Tilsen is asking for an indication of whether Council is willing to accept 24 units. Tabling the issue without giving him an answer would not help him. Councilmember Schneeman agreed, stating that what Mr. Tilsen needs to know is whether Council is willing to look at condominiums. Mr. Tilsen stated that if he looked for a similar piece of property, with a lake on it, there would be instances where the water area was not excluded from the density calculation. He felt his proposal fits within the density issue and the issue of waiving the exact determination on the ten acre rule is more key to the ordinances than the density issue. In his mind, if Council wants to discuss it further, he is not under a strict time table. He can look at the issues and see if there is a resolution or not and Council can pass or deny it at the next meeting. Mayor Huber stated that he has a sense that the majority of Council is going to support the Planning Commission recommendation. Councilmember Schneeman stated that she is going to support the recommendation. VOTE ON MOTION: Ayes: 2 Nays: 3 Huber, Schneeman, Vitelli Page No. 30 July 1, 2003 Councilmember Vitelli stated that he is also leaning against the plan. Councilmember Duggan stated that Council does not have a design plan or architecture that Council can either latch onto or say no to. Councilmember Vitelli asked if there are other examples of associations that are maintaining a historical facility like this. Councilmember Krebsbach stated that this is a big decision and if Mr. Tilsen is willing to work on this more it should be tabled. She asked Mr. Tilsen if he is willing to look at a lower density. Mr. Tilsen stated that he doesn't think a lower density will work. He has looked at a different footprint and the market and the physical constraints and does not think the lower density will work. He stated that his issue is that he does not agree with the planner's report, which says in the beginning that he is allowed up to 28 units and in the end only 16. He agreed with the beginning of the report. Councilmember Schneeman stated that she would prefer to see houses on the site. Councilmember Duggan asked Mr. Tilsen if he is comfortable with tabling the matter until he can come up with a design. Mr. Tilsen stated that he is comfortable with tabling it on the architectural detail issue but there are other issues. The ten acre rule and net density are issues. Is Council willing to waive the ten acre rule on the basis that the site is close enough to ten acres so that he does not have to comply with all five conditions that apply if a site is under the ten acres. Secondly, is Council willing take a look at existing PUD's in Mendota Heights to see if there is a comparable density issue and resolve the issue, perhaps directing to staff to look at comparables to see if it has truly been determined in the past that the density should be 16 or 24. The third issue is architecture. Councilmember Vitelli stated that he does not think he can see himself approving 24 units and it is not financially viable at 16. Councilmember Schneeman moved adoption of Resolution No. 03- 47, "A RESOLUTION DENYING A CONDITIONAL USE Page No. 31 July 1, 2003 PERMIT FOR A PLANNED UNIT DEVELOPMENT AND WETLANDS PERMIT AT 1875 VICTORIA ROAD SOUTH." Councilmember Vitelli seconded the motion. Ayes: 4 Nays: 1 Krebsbach CASE NO. 03 -32, BADER Council acknowledged an application from Mr. Michael Bader for preliminary plat and variance to allow the subdivision of 1673 Delaware Avenue. Council also acknowledged associated staff reports. Mr. Bader was present for the discussion. Assistant Hollister stated that Mr. Bader had a previous application denied by Council. Council determined that the alternate plan he presented at that time constituted a new application and referred Mr. Bader back to the Planning Commission. The commission reviewed that proposal at their June meeting and recommended approval with six conditions, which he reviewed for Council. There was considerable discussion about whether the county had actually denied access to Delaware Avenue. Mayor Huber asked Public Works Director Danielson for his representation on his conversation with Dakota County about access to Delaware. Public Works Director Danielson responded that after the commission meeting, he held a conference call with the county traffic engineer, Pete Sorensen and the county surveyor, Fred Johnson. They are two of the five members of the Dakota County Plat Commission Review Board, so they said that what they say could not be a representation of what the full board would officially say when a plat is put before them, but they are the two technical members of the board. They said they would consider an access onto Delaware but the obstacles to approval were great. They had a plan of the area in front of them and looking at the plan They said that in order to grant the access it would have to improve the safety of Delaware Avenue. One of first things they saw that they would require was to have the Bader driveway, the Drake driveway and the Chadima driveway all be combined into the new access point, and the access point would have to be directly across from an access east of Delaware in West St. Paul. Because they are only two of five, they said that to get a formal response the city must submit a formal request for review. Mr. Bader stated that he is asking for approval of the subdivision of his original ten acre parcel into to additional lots to the west. Prior to Page No. 32 July 1, 2003 purchasing the land, he hired a land use planner who developed some different plans, including raising the house, which would have been much less costly than doing the renovation they did. He also developed plans for subdividing, including coming off Delaware or Foxwood. They were discouraged from coming off Delaware and were encouraged to come off Foxwood for topographic reasons and because it was consistent with the city's overall plan for the Super Block. There is a plan somewhere that loops the water from Wentworth to Marie and there is an easement from Foxwood that abuts his property. The plans for the city utilities would continue that loop and would assist in the elimination of septic systems all along Delaware and use that utility easement over 1673 Delaware for eventual city sewer. He stated that he too has investment backed expectations. He had to purchase the property at lot 3, Foxwood in order to gain access and to fulfill his expectations to develop the western portion of the land, which was consistent with the city's overall plan. Now he finds out that he is landlocked from Delaware. The county plat will not grant access. The only reasonable access is from Wentworth, which is consistent with the county's April letter after Mr. Danielson sent them his plans A and B. Plan B did call for the vacation of his driveway. There may have been some misunderstanding by the neighbors who thought he was going to retain his driveway and keep access to Delaware. The county has asked for twenty feet of right -of -way on Delaware, which he will grant, but they have denied by letter and in the conversation with Mr. Danielson, granting him access to develop from Delaware. He stated that he talked with Mr. Menkens and he finds it upsetting to be the poster child for some issues. He was told by Mr. Danielson and did research himself, that his is the first variance that has been requested for a cul -de -sac greater than 500 feet. As his attorney explained at the planning meeting is that the city has not historically applied it in situations like this where the property is landlocked. The clear terms of the subdivision ordinance actually exclude by definition situations like his where there is no other reasonable access. He feels it is arbitrary to require a variance. The planners report indicates that historically no variance has been required. Assuming he could get access from Delaware, it is very steep and more trees would need to be taken out. His property is landlocked and he has a right to develop his property consistent with the subdivision ordinance. He needs direction from Council, something he can discuss. One of his neighbors is threatening a law suit. Mr. Bader stated that he is not threatening anything. He has owned the land since 1998. Mr. Oney has built a home since then and Dr. Lutz has cleared much of the land and there has been no request to the homeowners committee, and there really is no committee. He thanked city staff for being Page No. 33 July 1, 2003 very helpful. He stated that Dr. Lutz' representative, Mr. Berg, was critical of staff record keeping in file to support his contention that the city was involved in drafting the restrictive covenants. Mr. Berg was the attorney that actually drafted the covenants. Councilmember Krebsbach stated that she has been on Council for a long time, and the city has never gotten involved in covenants. Mr. Bader stated that at the commission meeting, Mr. Berg indicated that because the covenants were filed prior to the plat, the covenants prevent the city's ability to utilize its utility easement. He stated that covenants are private matters. Council's job is to apply the ordinances. He does not feel he needs a variance but if Council feels he needs a variance, he has met the criteria. He stated that he has shown a photo of a cul -de -sac on Abbey Way which has development much more dense than he is proposing and at the end of the cul -de -sac there is a 12 foot private drive that serves two homes and there is no turn around. He stated that he has put maps together that proves this Council has approved private drives in the Super Block. He stated that he is okay with a private drive if the city wants to take the neighbors' concerns into consideration and not extend the right -of -way to the Drake property. A private drive would eliminate the neighbors concerns but it does not give the city an overall plan for the super block, but neither did Mr. Menkens. He stated that he is talking about two lots that are consistent with the city's overall plan. He stated that his strong impression is that a private drive would appease the neighbors. He feels their thoughts on development are different from his. Councilmember Schneeman asked Mr. Bader if he would ever look forward to buying and developing the Drake property. Mr. Bader responded that he is not a developer and only wants to develop his own property. He is not interested in the Drake property. Mr. John Uban, consultant planner for Mr. Bader, stated that when he was the city's planner about ten years ago, the super block and specifically Foxwood was before the city. This is only one of three times the super block had been looked at. The city had many ideas and plans but resolution could not come about because specific interests did not want to contemplate any future subdivision of any parcel. One of those was the Ridder piece, and that has developed. He showed a graphic of lots in the area that had been subdivided by virtue of flag lots and private driveways. That was the most expeditious way of doing it without a public road system. When Page No. 34 July 1, 2003 Foxwood came about, the owners to the south did not want to deal with a road system, but a public easement for utilities was put in place. He stated that he looked at access off of Delaware for the Baders and it doesn't make a great deal of sense coming that way because of the steep slopes and trees. There are concerns about coming off Foxwood because of adjacent land owners concerns. The Bader property is heavily wooded but there is a large meadow on Lot 3 (lot adjacent to Foxwood) where a road, private drive, flag lot, public right -of -way or any of those solutions could take place and not disturb a significant number of trees, so much of the screening that is available to the neighbors can remain. The proposal before Council is one in which the extension of the public right -of -way has been moved over so that the whole 30 feet easement for the benefit of the adjacent property is undisturbed. An oversized cul -de -sac with a hydrant will provide better fire protection than any other lot in the super block. The solution minimizes tree removal and provides fire protection. It can also be done as a flag lot with a private road without doing public right -of -way. Councilmember Krebsbach asked where the utilities will come from. Mr. Uban stated that in the future a connection could be made to Ridgewood. Public Works Director Danielson stated that at this point staff are proposing that any new houses in this area be served by on -site septic systems. Mr. Uban stated that there are choices to do this differently, with public right -of -way, flag lot, cul -de -sac or private driveway. All of those options are available and all can be done with great sensitive to existing screening, woods and topography. He stated that past history shows him that this is the process the city has chosen to subdivide this area, piece by piece painfully looking at every detail concerning adjacent neighbors. Mayor Huber stated that Mr. Uban has categorized this as a political solution. He asked what Mr. Uban's thoughts are on what some might view as an extension of the political solution and if that avails the city of less options short of the property owners to dedicate their land to the Dodge Nature Center. Most of the lots have developed and whether or not the current owners want to develop or not, it is likely that some day it will happen. Page No. 35 July 1, 2003 Mr. Uban responded that if the city says at this point that it does not want to make the political decisions blind to the rest of the area, it must choose a solution that protects future opportunities. That is were continuing an easement to continue the pattern to the south would be a prudent decision. That would at least give the opportunity for a future road. Access could happen in different ways. Council has two choices, to continue public right -of -way to the south with the private drive or just a private neck lot with an easement over it that would include utilities and some future exercise of the right to put a road on it if an adjacent land owner requested access. Mr. Gary Fuchs, representing Tom and Linda Garrett, stated that the Garretts are opposed to the proposal for several reasons. They live on the parcel of property along side of Foxwood. When Foxwood was developed in 1993 it was a political solution to a host of neighborhood concerns from what he has been told. It ultimately lead to the development of Foxwood. At that time, very specific restrictive covenants were imposed on Foxwood. It also specified two groups of people who could enforce those covenants — one group are those who live within the Foxwood development. They are treated differently in the covenants from the owners of the lots that surround Foxwood. He stated that he is pointing this out because Council and the Planning Commission have heard from Mr. Bader and others that there is supposed to be an architectural review committee. That may or not be true, but Mr. Garrett would not be part of that because he is a neighboring property owner. The declaration that was recorded in 1993 says that in order to provide for the necessary administration, preservation and enhancement of the property and certain neighboring properties, the declarant declared that the property shall be transferred, held, sold, conveyed, occupied and developed only subject to the covenants, conditions and restrictions. When the property in Foxwood was platted, those were the terms that went with the properties. It applies to the neighboring properties too. The declaration identifies a no cut zone within Foxwood. He showed a drawing identifying the no cut zone. That zone must be maintained in its existing landscaped conditions. Managed pruning and additional planting and replacement is permitted, but no earth, gravel, soil or any other natural substance shall be removed and there shall be no excavation other than in relation to new plantings and no fill shall be brought in as landfill. Dr. Lutz, Mr. Oney bought their properties knowing those were the conditions, and so did Mr. Bader. Those are the terms that go with Lot 3. There are areas identified within the zone for homes. In order for Mr. Bader to build a street or driveway he would have to violate Page No. 36 July 1, 2003 the covenants of the no cut zone which the neighbors have the right to enforce. He referred to a letter from 1992 in which Gerald Mazarra wrote to Kevin Batchelder in response to the Foxwood PUD. The letter discusses the entire declaration and about how it would protect the neighboring properties. It is true that people make assumptions and promises that may not make sense several years later, but in this case there was a compromise made in 1993 under a PUD, which required city participation and a contract of sorts between the developer and the city. In addressing that issue, one of the planning commission members said he wasn't here in 1993. The citizens should have a right to rely on an institutional memory. That doesn't change anything and is not a relevant position to take in making a decision. Councilmember Krebsbach stated that she has been on Council since 1992 and can recall at every discussion when Foxwood was discussed was that Mayor Mertensotto always pointed out that the city does not get involved in covenants — they are a private matter. Mr. Fuchs agreed that the city does not enforce covenants but the point he is making is that if the city approves a plat of a public street it will never be built because of the covenants. Councilmember Krebsbach asked whether the law enforces superceding the city's right to build a public street. Mr. Fuchs responded that the city has condemnation authority and can take property for public purposes whenever it wants to. If the city grants this request, all it is granting is Mr. Bader's right to plat, but not the right to build because the restrictive covenants prohibit it. Councilmember Krebsbach stated that what she remembers distinctly is that it did not have sanitary sewer, and the access was kept looking like a private road on public right -of -way. That was the solution. Nothing in the motion said anything about the covenants. Mr. Fuchs stated that the Planning Commission has had this matter twice. The first time, the proposal for the cul -de -sac was to come off Wentworth and make a slight curve. The bulb portion of the existing cul -de -sac was to have been vacated. The commission recommended denial of that proposal. One reason was that there was no hardship with respect to the cul -de -sac. When the Council reviewed it, they voted to deny based on the recommendation of the planning commission. The current proposal shows the cul -de -sac coming off Wentworth and goes straight down and ends in a cul -de- Page No. 37 July 1, 2003 sac. It is about the same distance as the first proposal. His client's position is that if there was no hardship to support the first cul -de -sac variance, there is none to support this one. Also, in order to support a variance, the city ordinance requires the commission to make certain findings. There were no findings made by the planning commission at its last meeting. There was no finding there are special circumstances or conditions affecting the property, no finding that the granting of the variance will not be detrimental to the public welfare or injurious to the property in the area, nor was there a finding of an extreme physical hardship due to topography. He stated that when the same proposal except for the vacation of the bulb in the cul -de -sac is submitted and one time there is of no hardship, therefore denial and the next is approval with no finding of hardship. One of those has to be an arbitrary decision. He stated that with respect to the county plat commission, he has spoken to Fred Johnson several times, the applicant has spoken with Mr. Sorenson, and he got a memo from Public Works Director Danielson who spoke to both Mr. Johnson and Mr. Sorenson. There are now three different versions of what the plat commission may do. Even Mr. Danielson did not say the county would not grant access. They will grant access under certain conditions, but that is only two of the members. It is entirely possible he could have access under conditions that are acceptable to him. The Planning Commission condition was that the applicant submit information on what the plat commission would do, and he has not seen anything. To find out what the plat commission will do, the city has to go down and ask him. They respond to requests from the cities. He stated that without that definitive answer, the Planning Commission conditions have not been fulfilled. If the city approves the application and the right -of -way is platted through Lot 3 and the restrictive covenants are enforced, why would the city want a right -of -way that it cannot build on without condemning the neighbors and why would Mr. Bader want a piece of property (Lot 3) with a right -of -way through it that he can't build. If the covenants can be enforced the road cannot be built unless the city condemns all the owners out of a deal they thought they had in 1993. Also only one perc test has been done on Lot 3 to determine where the drainfield can go, and the only good spot is in the middle of the right -of -way. What will be done with the new owner when he shows up for a building permit. He felt that the decision made on the first proposal was the correct one — that it should be denied. There is no hardship shown to justify the variance on the cul -de -sac, no finding to support a hardship or a variance by the Planning Commission. Page No. 38 July 1, 2003 Mr. Tim Oney stated that he has tried to embrace a reasonable person's standard. He looked at MS 394 and 492 today, which stated that hardship does not include hardship caused by the owners action or inaction if the hardship was reasonably foreseeable. If the Baders purchased the property in 1998 and did a net present value, there may be a case, but they should have foreseen that. The hardship exists off of Foxwood and off of Delaware and somebody has to be first. The hardship cannot be caused by undue economic hardship, - a road could come down from Delaware if it minimizes the net profit of the project, that is fundamentally not the city's concern. He stated that there is nothing in the covenants that says the city has to enforce them. He bought his property in 2000, and in the closing his attorney asked him if he was sure he knew what he was getting into. He has two documents with a quorum of the architect committee, where they signed his house plans. The covenants say that even if the committee fails to enforce something, that does not waive the effectiveness of the covenants. If this is tenuous at best, he would not like to be pushed into litigation. He built his home in a reasonable manner. If the city wants to bring sewer and water all the way through, that would be great. He is the first property owner hooking up. Mr. Bader stated that the Drakes and Obers own a parcel at Ridgewood, and that is the reason Mr. Drake does not want the extension of the right -of -way for the cul -de -sac to run to his property, because he would want to develop from Ridgewood. Foxwood was not a PUD (referring to the comment from Mr. Fuchs about the letter from Mr. Mazarra to Kevin Batchelder). He stated that he has reviewed the history and detail. It started out as a PUD and the developer was directed by Council to develop it not as a PUD. The letter from his planner, Mr. Kretman, addresses the reasons he feels a variance is required. He did not put forth any justification for a variance in reliance on the supplemental report from the city planner saying a variance is not required. Also, he was shocked to hear it said that a variance was required. He stated he was advised on the Friday before the Council meeting that he was not allowed access from Delaware (which would not have required a variance). There has been a perc test on Lot 3 and it is a mound system for Lot 3 with gravity drain, and the city has an opinion letter on that. That information has been submitted to Dakota County. With respect to the no cut zone, he showed photos as examples of how one of the property owners has violated that zone by piling cut wood on it. He stated that he has given Mr. Garrett more than a 30 foot buffer when Foxwood was approved — the buffer is now in excess of 66. Page No. 39 July 1, 2003 Councilmember Duggan stated that Council must wait for resolution about access to Delaware and must wait for resolution of the question of who is right with respect to the covenants. He asked whether there is any plat benefit -is it first come first served, existing property owner such as Mr. Oney, a property owner who does not yet have a plat. City Attorney Schleck responded that there are a myriad of issues related to that question. There are the rights of land owners, one versus another. Secondly, is the issue of the deprivation of property rights based on governmental decisions. With respect to the priority issue, someone who owns the land has certain rights with respect to that land. If they have governmental approvals, they have the rights that are given to them by those approvals and it is up to the governmental body to decide if approvals for other land owners somehow impact that. Councilmember Duggan stated that he knows that a subdivision is voluntary but does believe that a variance as part of this consideration is n of acceptable. All the lots are larger than required. The variance is being able to get past the existing platted cul -de -sac and get to the new area. Attorney Schleck responded that they are two different issues, subdividing the land versus approving a non - standard cul -de -sac and the two are not necessarily combined. Councilmember Vitelli asked Attorney Schleck the following. If Council approved the plat and there was a dispute on the covenants and Mr. Bader lost, what is the result. If Council disapproves it, Mr. Bader goes to resolve covenants and wins, what can Council do. Can he come back with a proposal or does Council's denial forever prohibit it. If Council approves it and there is a dispute on the covenants, Council would have approved a plat and the plan could not be executed because of the covenants. Attorney Schleck responded that the issue is the street. It is not an impossibility. He tends to agree with Mr. Fuchs with respect to if a city requires a public street to be put in, the city would have to compensate the property owners for the destruction of their property rights with respect to the covenants. In other situations where this has come up, there has been a developers agreement whereby the developer agrees to pay all the costs. That is an option. He did not think it is good public policy or in the best interest of the city to approve a land owner dispute, which is essentially what would Page No. 40 July 1, 2003 happen if the streets were approved. As Mr. Fuchs discussed, these are private covenants enforceable between the land owners but there is a dispute. In other situations where this has come up, the city has asked the parties to resolve the dispute prior to taking action as a Council. A similar situation was Hidden Creek, where there were similar issues between some of the land owners and some issues related to driveway access easements that the city required the developer to resolve with the adjoining land owners before Council would take any action. With respect to the question if Council disapproves and Mr. Bader won on the covenants, Mr. Bader could come back with the proposal. Councilmember Vitelli asked if the city is required to allow property to be subdivided as long as it meets zoning requirements. Attorney Schleck responded that case law says that if a party meets all of the requirements of the subdivision ordinance, the city should approve the subdivision with no variances or changes. Councilmember Vitelli stated that his last question has to do with providing Mr. Bader with access to his land. The city doesn't have a problem because he has access to Lot 3 from the cul -de -sac and to his other land from Delaware. He asked if the city has a problem with Mr. Bader arguing that the city is denying access. Attorney Schleck responded that he would argue that the city does not have a problem. With respect to what a city must do and must not do, the city must not restrict a property owner from all economical use of their property. Simply because someone has an idea of how they can make better or more valuable use of their land does not give them the right to do that if it conflicts with the police powers of a municipal body. The municipal body has the right to protect the health, safety and welfare of the community. The property owner does not have an entitlement to develop the property. Councilmember Schneeman stated that this discussion has been disturbing because there have been many things said. First, did the Baders really know about the restrictive covenants when they bought their property. Some people say they did. She feels the city will lose something in this as far as integrity. At the time Foxwood was develop made good effort to let people build in Foxwood. If there are covenants, why does Council not pay attention to them. She felt many promises were made and the city made some of those promises. She would like to get a real reading on the curb cuts on Delaware — the full committee's input. Page No. 41 July 1, 2003 Councilmember Krebsbach stated that what the city would have said in 1992 was that the covenants are a private matter. Councilmember Krebsbach moved to deny the application for preliminary plat and variance at 1673 Delaware Avenue because the issue of covenants must be resolved, and to direct the City Attorney to prepare a formal resolution and findings for adoption at the July 15 meeting. Councilmember Duggan seconded the motion. Councilmember Vitelli commented to Mr. Bader that he will support the motion simply because he feels the covenant issue should be resolved. It is simple for Mr. Bader then and simple for the Council because the city would then not be getting in the middle of the private issue of the covenants. He will vote for denial because he thinks the covenant issue should be resolved and then the city can get involved. Mayor Huber stated that he will also support the motion for the same reasons and because he is thinking about the long term of the area. Ayes: 5 Nays:0 VICTORIA ROAD Council acknowledged and briefly discussed a memo from Public Works Director Danielson regarding county turnback of Victoria Road to the city. It was noted that Mendota Heights would maintain the Lilydale portion of the road and bill them for the costs. Councilmember Krebsbach asked if the city has been plowing the intersection with T.H. 13. Public Works Director Danielson responded that it has been maintained by the state, the county and the city. Lilydale has agreed to pay Mendota Heights for its share of the cost of maintenance of its portion of the road. Council directed the Public Works Director to draft a joint powers agreement with Lilydale. REFUNDING BONDS Council acknowledged memos from Finance Director Schabacker regarding refunding of the 1994 General Obligation Bonds and refunding of the 1995 improvement bonds. Mr. Monte Eastvold, from Northland Securities, was present for the discussion. Page No. 42 July 1, 2003 Mr. Eastvold reviewed information on savings to the city if the refunding is authorized. He compared interest rates on the existing ~ issues versus anticipated rates if the refunding is approved. Councilmember Duggan moved to approve a contract with Mericor Financial Services, Inc. to review and render an opinion with respect to the fairness associated with the pricing of the bond offerings. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 Councilmember Vitelli moved adoption of Resolution No. 03 -48, "RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $730,000 GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS OF 2003." Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 Councilmember Schneeman moved to approve the contract with Northland Securities at the stated interest rates. Councilmember Duggan seconded the motion. Ayes: 5 Nays: 0 Mr. Eastvold stated that the 1995 bond refunding issue is a cross over and in a cross over refunding, the hiring of Mericor is not required. Councilmember Duggan moved adoption of Resolution No. 03 -49, "RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $690,000 GENERAL OBLIGATION CROSSOVER REFUNDING BONDS OF 2003, PLEDGING FOR THE SECURITY THEREOF SPECIAL ASSESSMENTS, AND LEVYING A TAX FOR THE PAYMENT THEREOF." Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 Councilmember Duggan moved approval of a contract with Northland Securities at the stated interest rates Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 COUNCIL COMMENTS Councilmember Krebsbach stated that she would like the Parks and Recreation Commission to look at increasing the park contribution Page No. 43 July 1, 2003 requirement. She stated that the fee is currently $1,700 per lot and she felt that $5,000 would be more appropriate given the value of property in the city. Administrator Lindberg responded that the commission meeting for July has been cancelled but that staff would bring the matter to the commission at its next meeting. Councilmember Vitelli informed Council that he attended the first meeting of the Noise Oversight Committee at the airport last week. The key event was designating two co- chairmen. There are representatives from the surrounding cities on the committee. He represents Mendota Heights and there are elected officials from Eagan, Bloomington and Minneapolis and there are representatives from the charter airlines and commercial airlines. His impression is that it is a very professional group of people that are open minded and do not seem to have axes to grind. The next meeting is scheduled for July 17. Mayor Huber announced that he will most likely not be at the July 15 meeting. ADJOURN There being no further business to come before Council, Councilmember Schneeman moved that the meeting be adjourned. Councilmember Duggan seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 1:15 a.m. K thleen M. Swanson City Clerk ATTEST John J be Maybr-