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1993-08-03 Council minutesPage No. 3711 August 3, 1993 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, August 3, 1993 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, was held at 7:30 o'clock P.M. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. Mayor Mertensotto called the meeting to order at 7:30 o'clock P.M. The following members were present: Mayor Mertensotto, Councilmembers Huber, Koch, Krebsbach and Smith. AGENDA ADOPTION Councilmember Smith moved adoption of the revised agenda for the meeting. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Krebsbach moved approval of the consent calendar for the meeting along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the Code Enforcement monthly report for July. b. Acknowledgment of the minutes of the July 27 Planning Commission meeting. c. Authorization for the preparation of plans and specifications for a resurfacing project on Marie Avenue, from Wachtler Avenue to Victoria Road. d. Approval of the list of contractor licenses dated August 3, 1993 and attached hereto. e. Approval of the list of claims dated August 3, 1993 and totalling $257,794.85. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 PROCLAMATION Mayor Mertensotto introduced Lisa Getsug and Laurie Smith, co- presidents of the St. Paul Section of the National Council of Jewish Women (NCJW), and Vicki Katz, Vice President Page No. 3712 August 3, 1993 for Public Relations of the NCJW. He stated that Ms. Katz had asked the city to adopt a proclamation acknowledging September 9, 1993 as the NCJW's Day of the Working Parent, and read the proposed proclamation for the audience. Councilmember Huber moved to adopt a "PROCLAMATION ACKNOWLEDGING THE NATIONAL COUNCIL OF JEWISH WOMEN'S DAY OF THE WORKING PARENT." Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 1992 AUDIT Mr. Steve Laible, from Peat Marwick Main, was present to review and answer questions on the 1992 Audit of city funds. Mayor Mertensotto pointed out highlights in the city staff's transmittal letter to Peat Marwick. Mr. Laible briefly reviewed General Fund revenues and expenditures and several exhibits contained in the report, and answered council questions. Responding to a question from Councilmember Krebsbach on whether any trends in revenues and expenditures were noted, Administrator Lawell stated that staff will prepare an analysis, including a forecast on permit revenues, for the budget workshop. DAKOTA ALLIANCE FOR Council acknowledged a memo from Administra- PRESERVATION for Lawell regarding appointment to the Dakota Alliance for Prevention. Councilmember Huber moved to recommend to the Dakota County Board of commissioners that Mr. William Payne be appointed to the Dakota Alliance for Prevention as the city's representative for a term which will expire in July, 1994, and that Councilmember Koch serve as the city's alternate representative. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 AIRPORT RELATIONS Council acknowledged a memo from Administra- COMMISSION for Lawell regarding appointments to the Airport Relations commission. Councilmember Krebsbach moved to appoint the following individuals to serve on the Airport Relations Commission, effective immediately: Mr. Baars asked that the first condition in the proposed resolution be amended to allow him to remove the existing storage shed prior to final inspection on the garage rather than prior to issuance of a building permit for the new garage. Mayor Mertensotto responded that Mr. Baars would have to guarantee removal of the shed and stated that the city's building inspectors would be directed to "red tag" the new garage until the existing shed is removed. Mayor Mertensotto also stated that he does not want there to be any misunderstanding on the garage doors. Mr. Baars responded that the doors will be nine feet wide and eight feet tall. Councilmember Smith stated that she would like to clarify the fifth condition - that Mr. Baars will be planting trees along the south garage wall and will not use the parking pad that currently exists. She also suggested that the sixth condition be changed from "residential vehicles" to "non-commercial" vehicles. Mr. Baars responded that he will be using the existing parking pad but will not add a new pad - there will not be an open space for parking. Councilmember Krebsbach stated that nothing in the resolution speaks to the placement of the garage. Mr. Baars responded that he would like to center the structure in the middle of Page No. 3713 August 3, 1993 David Olson, Joseph Leuman and Scott Beaty to three-year terms expiring on January 30, 1997; Gregg Fitzer and Ellsworth Stein to two-year terms expiring on January 30, 1996; and William Healy and Dr. James Olin to one-year terms expiring on January 30, 1995. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 CASE NO. 93-12, Council acknowledged a memo and proposed BAARS resolution relative to discussion continued from July 20th on an application from Mr. Clifford Baars for a conditional use permit to construct a detached garage at 1947 Knob Road. Mr. Baars asked that the first condition in the proposed resolution be amended to allow him to remove the existing storage shed prior to final inspection on the garage rather than prior to issuance of a building permit for the new garage. Mayor Mertensotto responded that Mr. Baars would have to guarantee removal of the shed and stated that the city's building inspectors would be directed to "red tag" the new garage until the existing shed is removed. Mayor Mertensotto also stated that he does not want there to be any misunderstanding on the garage doors. Mr. Baars responded that the doors will be nine feet wide and eight feet tall. Councilmember Smith stated that she would like to clarify the fifth condition - that Mr. Baars will be planting trees along the south garage wall and will not use the parking pad that currently exists. She also suggested that the sixth condition be changed from "residential vehicles" to "non-commercial" vehicles. Mr. Baars responded that he will be using the existing parking pad but will not add a new pad - there will not be an open space for parking. Councilmember Krebsbach stated that nothing in the resolution speaks to the placement of the garage. Mr. Baars responded that he would like to center the structure in the middle of Page No. 3714 August 3, 1993 the existing parking area (existing driveway) for aesthetic purposes. Mayor Mertensotto suggested that two conditions be added: that the structure may not be any closer than 50 feet to the south boundary line of the applicant's property, and that the structure shall not exceed 14 feet in height. Councilmember Krebsbach moved adoption of Resolution No. 93 -42, "A RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR ACCESSORY STRUCTURE AT 1947 KNOB ROAD," amended to include the two additional conditions and to change "residential" to "non- commercial" in the sixth condition. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 CONVENTION AND Council acknowledged a memo from the City VISITORS' BUREAU Administrator regarding consideration of a convention and visitor's bureau (CVB) proposal, along with the following items submitted by Mr. Dave Johnson, from the Courtyard by Marriott, and Mr. Dan Aberg, from the Northern Dakota County Chambers of Commerce: CVB draft marketing plan dated April 15, 1993; draft CVB budget dated April 12, 1993; draft ordinance establishing a local lodging tax; and draft agreement between the city and the CVB. Mr. Johnson and Mr. Aberg were present for the discussion. Mr. Johnson explained that the proposal has changed from when it was first considered by Council in that there would be two separate convention and visitor bureaus for Mendota Heights and Eagan. He stated that Mendota Heights is surrounded by larger communities which have CVBs and that it is necessary for him to participate in a bureau so that he can be on an equal footing with the rest of the hotel community in the area and so that he does not need to use his operating budget to promote the motel. Mayor Mertensotto briefly reviewed the request for Council adoption of an ordinance establishing a local lodging tax. He explained that state statute permits cities to impose a 3% lodging tax to support marketing of the community, and that if adopted the tax Page No. 3715 August 3, 1993 would apply to the Marriott and to the Mendota Heights Motel. He then asked for questions and comments from the audience. Ms. Toni Bedi, owner of the Mendota Heights Motel, stated that she is strongly opposed to the proposal. She informed Council that she has not been informed on what has transpired and had just found out that the matter was to be discussed this evening. She felt the lodging tax would be very detrimental to her business. Councilmember Krebsbach stated that she believes that at the last discussion on the matter Mr. Johnson had stated that Ms. Bedi supported the proposal. Mr. Johnson responded that he had stated that Ms. Bedi had attended one meeting with him and Mr. Aberg and that she was trying to contact the owners of motels similar to hers. He explained that at the meeting the financial burden on the Mendota Heights Motel caused by the Mendota Bridge closing was discussed at length and that Ms. Bedi was concerned that she would not be the only small motel operator who would have the tax. He informed Council that the Eagan hotels will be taxed and that he does not know if Ms. Bedi understands the full impact of the proposal. He felt that a CVB has the potential to aid her business because there are many families looking for accommodations that are less expensive than the Marriott and Ms. Bedi has the ability to draw the same leads from a CVB as the other hotels. Mayor Mertensotto asked how the bridge closing has affected the Mendota Heights Motel. Ms. Bedi responded that there has been a 50 to 60% reduction in business. She stated that the meeting referred to by Mr. Johnson was a very informal meeting and she was disappointed because she felt she was an outsider - all of the other attenders were from bigger businesses. She further stated that after that meeting she heard that the city had been given a packet of information on the benefits but she had not received the information and was not aware of the last discussion before the Council. Page No. 3716 August 3, 1993 Councilmember Krebsbach stated that Council did not necessarily endorse the concept at the last discussion and asked why a draft agreement was prepared. Councilmember Huber asked why Ms. Bedi would not have been made aware of the item when it was on the agenda the last time. Administrator Lawell responded that the matter was before Council in June and that if this were a city-initiated project, the city would have notified her. He explained when Mr. Johnson and Aberg originally approached him on the matter he believed that they had met with Ms. Bedi and that the request was coming from the hotels and motels in Mendota Heights and Eagan, including the Mendota Heights Motel. With respect to the draft ordinance, he stated that the documents were prepared and initiated entirely by Mr. Aberg and Mr. Johnson. Councilmember Smith expressed concern that Ms. Bedi had not been notified of the meeting, pointing out that at the June discussion Council had asked what her reaction was to the proposal. She stated that representations had been made at that time that Ms. Bedi had been contacted and had no objections. She explained that Council is concerned about how the proposed tax would affect Ms. Bedi. Ms. Bedi responded that the manager of the Airliner Motel in Eagan had indicated that he would be present this evening to support her but is not present. She informed Council that she has never supported the tax and is only one of two businesses in the city which would be affected by it. She also stated that the Terrace Motel in Eagan is also opposed to the proposal. Mr. Aberg responded that he met with Ms. Bedi in April and the owners of the two Eagan motels were also invited but did not attend. At that time Ms. Bedi was given information, and no further meetings as a hotel group have been held since that time. He explained that he did not notify Ms. Bedi about the June Council meeting because it was only intended to inform Council on what was being planned - he prepared this evening's documents for Council review and did not expect action this evening. The proposed ordinance is a Page No. 3717 August 3, 1993 duplicate of what was adopted by Eagan. He further stated that he thought the city would notify Ms. Bedi about this evening's meeting. Mr. Aberg stated that he has not heard any objection from the Terrace Motel and that its manager never appeared at any of the Eagan meetings. Ms. Bedi informed Council of the difficulties the motel is having because of the bridge closing and that it will be financially difficult as it is to operate the motel until the bridge and highway reconstruction is completed. She stated that if the tax is imposed she will have to reduce her rates by 3 %, which would damage her business. Councilmember Huber stated that Ms. Bedi's financial position is unfortunate but that he believes the CVB would benefit her by providing advertising. He pointed out that the tax would be used to promote the hospitality industry in the city. He suggested that Council indefinitely table the matter. Mayor Mertensotto asked what can be done to help Ms. Bedi with access problems to the motel. Administrator Lawell responded that Mn /DOT has installed several signs directing people to the kennel, greenhouse and motel but the signs are far away from the sites. He stated that staff will contact Mn /DOT and ask them to put up additional signs closer to the businesses. Mayor Mertensotto stated that if Mn /DOT refuses to install signs indicating that there is unobstructed access available to the three businesses, then the city should install the signs. Mr. Aberg stated that it was never his intention to put someone out of business by making the tax proposal and that he was not aware of the severity of the motel's problems. Councilmember Krebsbach stated that she opposes the proposal because it does not fit her vision of the city, pointing out that Council has worked hard to maintain the city as a low key residential community. Page No. 3718 August 3, 1993 Mr. Johnson responded that he tries to spend much time participating in activities in Mendota Heights and Eagan and that he feels the city is "missing the boat" by not approving the request. Mr. Johnson stated that the purpose of a CVB is to create awareness of where the city's hotels are located. He further stated that a CVB would not bring throngs of people into the residential areas of the community because the hotels are located far away from the residential area. He felt that his hotel will be damaged if a CVB is not approved because all of the other hotels in the area have CVB's and he has a limited marketing budget which would not allow him to compete. Mayor Mertensotto pointed out that Mr. Johnson is talking about using the city's taxing authority yet the Chamber of Commerce is available for economic development. Councilmember Huber stated that he is concerned about what happened with the Mendota Heights Motel but that he is also concerned that Council has had a recent proposal from a quality corporate citizen asking for tax increment financing to enable them to develop their business and Council agreed. He stated that the Marriott is a quality corporate citizen in the business park asking Council to use its taxing authority, and that it bothers him to say no. He felt the proposal needs further consideration. He pointed out that when the Marriott Corporation asked for approval of its facility, council asked them to build a quality facility, to reduce the emphasis on liquor sales and to run a quality business - all of which has been done. He stated that in order for the Marriott to be successful, it must charge a fairly high rate for its rooms and if the tax were imposed, the Marriott would have to increase its rates to those who use the facility. He stated that he would like to see the discussion continue and to work with the owners of the Mendota Heights Motel. Mayor Mertensotto stated that 95% of the tax revenue would go to the CVB whose purpose would be to promote the Marriott. He stated that the recent tax increment request from a corporate developer was to try to keep a Page No. 3719 August 3, 1993 business in the business park and there is no comparison between the requests. Councilmember Huber responded that his concern is that Council tried to work with Northland so that they could make a competitive proposal with others who were competing for business space. The Marriott is already in Mendota Heights, and that while he does not completely agree with the proposal he would like to continue discussions because there may be some common ground that could be worked out. Mr. Johnson asked if he could request that a task force be put together which would include him and Ms. Bedi, Council members and city staff members. He stated that he would hate to walk away from the meeting thinking he totally lost and would like to explore the matter further to see if there is a way to compromise. Mayor Mertensotto stated that he has spent much time with Mr. Johnson by phone and in meetings and understands that Mr. Johnson has met with each of the Council members individual. He further stated withdrawing the proposal at this time would not preclude Mr. Johnson from bringing the matter before Council again. Mr. Johnson responded that it is very difficult to form a compromise agreement by meeting Council members individually. Councilmember Krebsbach pointed out that since the tax is regulated by state statute Council must vote either yes or no - there is no ability to compromise. She stated that since no compromise is possible, she would have to vote no but that she would like Council to work with Mr. Johnson on economic development. She further stated that the Marriott is a good and important business in the city. Councilmember Smith stated that she is open- minded on the issue because she feels the Marriott is an important part of the community and she does not want the Marriott to be at a competitive disadvantage. She stated that she has reservations, including the image the city has of itself and how the CVB would fit into that image. She suggested that perhaps Council must look at the city in two ways, one Page No. 3720 August 3, 1993 for residences and the other the business community. She felt that the city is neither a tourist nor a convention destination and stated that she is bothered that the statute says that the tax must be used to fund a CVB for the purpose of marketing the city as a tourist center. Mr. Johnson stated that small cities which do not have tourist bureaus still impose the tax. Mayor Mertensotto stated that Council will meet at a goal setting session later in the month and the need for a CVB and economic development will be raised for discussion at that workshop. IVY FALLS CREEK UPDATE Council acknowledged a report from Assistant Engineer Eckles on the status of the Ivy Falls Creek project. Mayor Mertensotto briefly reviewed the history of the project, including the retention of outside engineering expertise, and informed the audience that a funding mechanism has been established for the $1 million project. He explained that Council had determined that all easements should be acquired before a construction contract is awarded to be sure that the project would not exceed its estimated cost. He stated that the staff report informed Council that there are easements which have not yet been acquired, from Eric Miller and the Ivy Falls Homeowners' Association. Mayor Mertensotto informed Council that he has spoken to Ms. Joan O'Brien recently regarding the Association easement and she asked that Council defer a decision on condemnation until an Association meeting can be held. He stated that the Miller easements are critical to the project. Engineer Eckles informed Council that a minor easement needed from Richard Smookler has not yet been acquired. Mayor Mertensotto recommended that staff continue to negotiate with the Homeowners' Association and Mr. Smookler. Because Council wants to acquire all easements before the project is begun, he recommended that the city commence condemnation proceedings to acquire the Miller easements. Page No. 3721 August 3, 1993 Attorney Hart stated that he supports condemnation proceedings for the Miller easement. He informed Council that he has been negotiating with Mr. Miller and his legal counsel, and while it is possible that a negotiated settlement may be reached it is time to move towards condemnation. Mayor Mertensotto asked that status of the easements already negotiated. Engineer Eckles responded that the city has not yet paid for any of the easements. He stated that staff had anticipated that payment would not be made until the easements are filed but that it is beginning to be a problem to continue to hold onto the easement documents. He explained that Dr. Denis has his property for sale and he would not want to have to negotiate for the easement with new owners. Council concurred in his recommendation that payment be made for the Denis easement. Mayor Mertensotto asked what is proposed with respect to replacing existing trees. He also asked if large trees will be planted. Engineer Eckles responded that landscaping is proposed in the project, but not "one for one" tree replacement. He explained that a large number of dead and fallen trees will be taken out and many are on the verge of falling. Public Works Director Danielson stated that staff had not planned on planting large trees and has been working closely with the Park Commission on revegetating the Ivy Falls Park, which is where most of the trees will go. Mayor Mertensotto suggested that staff confer with a landscape architect with respect to revegetation of the creek area. Mr. Danielson responded that the roadway will be revegetated and that staff has talked with a number of seed suppliers to determine the best seed for the shady areas and steep slopes. He further stated that staff has also talked with Barr Engineering with respect to mimicking a site which Barr worked on. He informed Council that staff has spoken to individual home owners about trees on their properties. Page No. 3722 August 3, 1993 Engineer Eckles stated that it is important to have some type of ground cover to hold the soil down, and in some cases planting large nursery stock trees would be counter- productive. Councilmember Smith stated that she agrees that the creek must be stabilized, but on the other hand, people are concerned with what the area will look like after construction. She felt that if a large number of sizeable trees will be taken from an area, the city should do its best to replace as many as possible with something that will grow in a reasonable time. Engineer Eckles responded that this is a very big issue - this is a natural area that is reseeding itself naturally. He stated that the city could plant nursery stock trees that would possibly not grow any faster than those naturally reseeded. Mayor Mertensotto stated that the city should do what it can so that the area is not bare any longer than it has to be. Administrator Lawell informed Council that there was a community meeting on the project last week and everyone who would be impacted by the project was invited to attend. Engineer Eckles stated that approximately two- thirds of the affected property owners attended the meeting and that the response was positive. He explained that at the meeting staff addressed a number of concerns which were raised. He stated that one question which could not be answered was about the association property. He informed Council that the association plans to meet on August 12th and that he has been invited to give a presentation on the project at that meeting. There being no further discussion, Councilmember Krebsbach moved adoption of Resolution No. 93-43, "A RESOLUTION DIRECTING THE ACQUISITION BY CONDEMNATION OF CERTAIN PERMANENT DRAINAGE AND TEMPORARY CONSTRUCTION EASEMENTS IN THE CITY OF MENDOTA HEIGHTS, DAKOTA COUNTY, MINNESOTA." Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 Page No. 3723 August 3, 1993 NDC -4 Council acknowledged receipt of NDC -41s 1994 budget and revised 1993 budget, its 1992 annual report and a draft "Amended Joint and Cooperative Agreement." Mayor Mertensotto stated that NDC -4 will meet on August 4th to discuss the draft agreement. He informed Council that he has given his comments on the agreement to Councilmember Huber, the city's NDC -4 representative. Councilmember Huber stated that he has also received comments from Councilmember Smith. He explained that he will present the comments for discussion at the NDC -4 meeting and stated that he is hopeful that a final draft of the agreement will be ready in the near future. City Attorney Hart stated that he has preliminarily reviewed the draft agreement and will review the comments provided by Mayor Mertensotto and Councilmember Smith. COUNCIL COMMENTS Councilmember Krebsbach commended staff on the success of the park celebration and Councilmember Huber for his leadership on the Park Commission in developing the park system. Mayor Mertensotto suggested that vines similar to those at I -35E and Wagon Wheel be planted along the fence at Kensington Park to screen the freeway from the site. Councilmember Huber updated Council on the status of NDC -41s search for an executive director to replace Holly Yerrigan. ADJOURN There being no further business to come before the Council, Councilmember Huber moved that Page No. 3724 August 3, 1993 the meeting be adjourned. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 9:47 o'clock P.M. Kathleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor