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06-01-04A regular meeting of the Hopkins City Council was held on June 1, 2004, in the Council Chambers of the Hopkins City Hall. Present were Mayor Maxwell and Council Members Brausen, Thompson, Johnson, and Rowan. Also, present were staff members Mielke, Genellie, Stadler, Kerrigan, N. Anderson, Elverum, and City Attorney Jerry Steiner. CALL TO ORDER Mayor Maxwell called the meeting to order at 7:40 p.m. II. OPEN AGENDA -PUBLIC COMMENTS AND CONCERNS William Kennedy, 1226 Landmark Trail, expressed his concern about an individual near his home that was arrested for having drugs and guns. Mayor Maxwell said that someone from the Police Department would call him and give him more information about the process. III. PRESENTATION 1. Recognition of Sharon MacDonald Sharon MacDonald has been the coordinator of the Reduce-the-Use Program, a community wide program that reaches out to youth, hoping to eliminate their use of drugs and alcohol. Prior to that, Ms. MacDonald was a Chemical Health Specialist with the Hopkins School District, and a teacher at Alice Smith Elementary School. Ms. MacDonald was with the school district for thirty-four years. Mayor Maxwell read the proclamation naming June 2, 2004 as Sharon MacDonald Day in Hopkins. IV. REPORTS -COMMITTEES/COMMISSIONS 1. Zoning and Planning Commission Mary Hatcher reported that a Zoning and Planning Commission Meeting was held on May 25th. The Commission held public hearings on the rezoning overlay for Rudy Luther on Mainstreet and 250 5th Ave S; Comprehensive Plan Amendment for 250 Stn Ave S; and CUP for 250 5th Ave S. The Commission recommended approval of all items. The Commission also reviewed the concept plans for the Hopkins House and a front yard variance for 109 Holly Road. They liked the Hopkins House concept. They recommended denial of the variance. They could not determine a hardship. June 1, 2004 City Council Meeting Minutes Page 1 V. CONSENT AGENDA 1. Minutes of May 18, 2004 City Council Meeting 2. Minutes of May 25, 2004 City Council Work Session 3. Ratify Prior Month's Disbursements 4. Approve Miscellaneous License Applications 5. Appointment to Chemical Health Commission, Michael Borowiak (Memo) 6. Growers' Market Agreement (CR2004-83) 7. Approve Sub-recipient Agreement with Luther Company-Hennepin County Environmental Response Fund Grant Program (CR2004-91) 8. Approve Contract, Hennepin County Environmental Response Fund Grant Program, Luther/Hopkins Honda/Mainstreet Property (CR2004-90) 9. Award 2004 Sidewalk and Alley Repair Project (CR2004-85) 10.Lease Agreement with Hennepin County for Satellite Link (CR2004-85) 1 1.Approve Liquor License Applications for the License Year 2004/2005 (CR2004-88) The City Clerk stated that the Liquor License approvals included the 2:00 a.m. closings and an addition of an outdoor serving area for Mainstreet bar and grill and assured Mayor Maxwell that the Police Department will review the added serving area. Council Member Rowan questioned the Massage license at 101 Jefferson Ave., the location of SuperValu. The City Clerk responded that SuperValu has made arrangements to have massage for their employees at that location. In response to Mayor Maxwell's question, Mr. Genellie stated that the Satellite Link would not interfere with our radio reception. Mayor Maxwell stated that the agr ement should contain a clause that will allow the City to have the link removed if it does cause interference. Council Member Rowan moved and Council Member Brausen seconded a motion to approve the Consent Agenda. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. VI. OATH OF OFFICE The City Clerk administered the Oath of Office to Michael Borowiak, newly appointed to the Chemical Health Commission. June 1, 2004 City Council Meeting Minutes Page 2 VII. NEW BUSINESS 1. Front Yard Variance, 109 Holly Road (CR2004-81) The applicants, Diane and Mike McDonnell are proposing to move the laundry room to the rear of the garage and construct an eight-foot addition to the front of the existing garage at 109 Holly Rd. The home is located in a R-1-C zoning district. In the R-1-C zoning district, the front-yard setback is 30 feet. The proposed addition will give them a 26-foot, 2-inch front yard setback. The applicants have noted that there is no undue hardship. The Zoning and Planning Commission recommended denial. Council Member Thompson asked if averaging had been brought up. Ms. Anderson responded that the corner house had been built in 1914 and was there before the lots were plotted or zoned. Mr. and Mrs. McDonnell and their architect, Lonnie Strassman, came forward. He stated their involvement in the community and the Hopkins school district. They stayed behind the line of the neighbor's front, averaging the line with the homes on both sides of their home. The Council members discussed the addition and determined that the hardship could be that the severe encroachment of the neighboring house produced an adverse impact on their property. City Attorney Steiner cautioned the Council on granting a variance based on the neighboring property. Mr. Steiner stated that the hardship should be unique to the applicant's property. The Council and the applicant discussed other variances that were granted based on conditions of neighboring properties. Mr. Mielke provided findings that would support the variance; 1) That the home to the north has an existing setback of 17 feet creating a situation unique to this property; 2) That the home to the north creates a visual impediment to this property; and 3) That the granting of this variance will create a better site line transition within the block. The Council discussed the ordinance. They felt that the ordinance should be changed to allow averaging of the setbacks on each side of the home. The Council discussed a continuance to review the hardship. Council Member Rowan moved and Council Member Thompson seconded a motion to adopt Resolution 2004-42, approving the findings of fact as stipulated by City Manager Mielke for a front yard setback for the lot at 109 Holly Rd. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, nay; Mayor Maxwell, nay. Council Member Thompson moved and Council Member Brausen seconded a motion to direct the Planning Commission to consider an ordinance change allowing an June 1, 2004 City Council Meeting Minutes Page 3 average of set backs for purpose of additions and include site lines as feasible means of defining hardships. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. 2. Rezoning of Luther Company Mainstreet Property Between 6th and 8"' Aves. To PUD (CR2004-77) 3. PUD Agreement for Luther Company Mainstreet Property between 6th and Stn Aves (CR2004-89) Hopkins Honda has purchased the former Knox site with the intention of relocating the Honda facility to this site. The relocation will remove the entire Honda line from downtown Hopkins. The area between 6th and 8t" Aves will be available for redevelopment. The shape of the area presents challenges for development. The area is currently zoned B-3, General Business. In order for the development to occur, the property will need to be rezoned to Planned Unit Development (PUD1. This will be accomplished by placing an over-lay PUD in the B-3 district. The PUD will allow flexibility for future development. The basic zoning and Comprehensive Plan designation will remain. Kersten Elverum, Housing and Development Coordinator, reviewed the conditions of the PUD agreement for Luther Company Mainstreet property. The agreement will be filed with the property and will be assigned to any future purchaser. As the project for the site becomes better defined, the developer will need to seek additional Council approvals through an amendment to the PUD Agreement or the execution of a redevelopment agreement. The purpose of the agreement at this time is to define the broad parameters of future redevelopment efforts and assure that the existing uses, auto sales and repair, will not continue. The Zoning and planning Commission recommended approval of both items. Council Member Johnson moved and Council Member Rowan seconded a motion to adopt Resolution 2004-38, approving Ordinance 2004-923, placing an overlay zoning of PUD on the area occupied by Hopkins Honda between 6th and 8th Aves on the north side of Mainstreet for first reading. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. Council Member Rowan moved and Council Member Thompson seconded a motion to approve the PUD/Development Agreement between the City of Hopkins and the Luther Company for the properties occupied by Hopkins Honda between 6th and 8th Aves on the north side of Mainstreet and authorize its execution. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. June 1, 2004 City Council Meeting Minutes Page 4 4. Comprehensive Plan Amendment, 250 5th Ave S (CR2004-79 Hopkins Honda has purchased the former Knox site with plans to relocate the Honda facility to this site. The site is currently zoned Business Park and will have an overlay zone of UPD to allow the auto sales lot. Because an auto sales lot is not a permitted use within the business park district, the Comprehensive Plan land use section will be amended to permit an auto sales lot use. The Zoning and Planning Commission recommended approval. In response to Mayor Maxwell's question, Ms. Anderson stated that there should be approval from the Met Council within two weeks for a simple text amendment. Council Member Thompson moved and Council Member Brausen seconded a motion to adopt Resolution 04-40, approving a Comprehensive Plan amendment to allow an auto sales lot at 250 5th Ave S. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. 5. First Reading, Rezoning of Former Knox Property to PUD (CR2004-78) Hopkins Honda has purchased the former Knox site with plans to relocate the Honda facility to this site. This site will allow all of the Honda activity to be on one site. The new building will be oriented to the east for visibility from Highway 169. The main access point will be from 5th Ave S. There will be an environmental clean-up process before construction can begin. The Zoning and Planning Commission recommended approval. The Zoning and Planning Commission recommended approval. Council Member Brausen moved and Council Member Rowan seconded a motion to adopt Resolution 2004-39, approving Ordinance 2004-924, placing an overlay zoning of PUD at 250 5th Ave S for first reading. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. 6. PUD Agreement Hopkins Honda Project, Formerly Knox Property (CR2004- 84) As part of the PUD overlay rezoning for 250 5th Ave S, a PUD/CUP agreement has been drafted. The agreement outlines the terms and conditions for this specific development. If for some reason this development does not take place or the auto use terminates in the future, the site reverts to the base zoning of Business Park. June 1, 2004 City Council Meeting Minutes Page 5 The Council discussed the 8th Ave S access. The County has agreed to allow access from 8th Ave S. The City will be required to grant an easement for LRT and for access for a future transit station/bus transference circulation area if the decision to locate a station for LRT in that location is made. The Council discussed the 8th Ave access. City Attorney Steiner suggested that an additional statement be added that the City will retain the right to discontinue truck exits at 8th Ave if it is determined that doing so creates unsafe conditions. Council Member Brausen moved and Council Member Rowan seconded a motion to approve a PUD agreement to construct an auto sales lot at 250 5th St N subject to inclusion of the City Attorney's statement on truck exits. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. 7. CUP Hopkins Honda Project, Former Knox Property (CR2004-80) City Planner Nancy Anderson reviewed the site plan for the new Hopkins Honda on this site. Ms. Anderson pointed out that the pylon sign would be oversized for visibility from Highway 169. The Project Architect, John Baker and Hopkins Honda General Manager, Kyle Allison, came forward to answer questions. Mr. Baker reviewed the site plan and the elevations. Mr. Baker stated that the Watershed District would finalize their approval and conditions when the City has completed their approvals. They are working on a drainage plan with the District. Ms. Elverum stated that the City has received a one half million dollar grant for contamination cleanup, but the applicant will also be spending a considerable amount on cleanup. Nancy Anderson reviewed the traffic study. Council Member Rowan moved and Council Member Brausen seconded a motion to adopt Resolution 2004-41, approving a conditional use permit to construct an auto sales lot at 250 5th Ave S. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. 8. Concept Review, Hopkins House Redevelopment (CR2004-821 Mathwig Development is proposing to convert the former tower of the Hopkins House into fifty residential units. The units will be sold as condominiums. The plan also shows razing the building on the east side of the tower and constructing six town homes. June 1, 2004 City Council Meeting Minutes Page 6 The property is currently zoned B-3, General Business. The townhouse and condo area will have to be rezoned to residential for the project to occur. Staff recommended a residential PUD zoning. Troy Mathwig, Developer; Mike Roes, Realtor; and the project architect from EKV Group came forward. The architect reviewed the site plan and elevations, pointing out the exterior finish, the sizes and types of units and the placement of the units. Council Members discussed the types of buyers, the cost of the units, the retail area and possible uses, and parking issues with the Hagen property. The Mayor expressed a concern about crowding the area. The Council discussed traffic; Mr. Kerrigan stated that a traffic study would need to be completed before final approval. When the property is rezoned, a PUD agreement that defines the specifics of the project will be required. No action was taken. 9. Facility Project Budget Update (Memo) The'original 5900,000 contingency is still largely intact with a balance of almost 5780,000. There is a punch list of items to complete at the Public Works and Fire Department locations. Those two building will be completed in about one and one half months. Interior demolition of the former Fire Station is complete. Block and face brick is being installed in building addition areas, plumbing work is underway, and new roofing is being installed. The new dispatch area should be completed by July 6th. The project is running about two and one half months behind schedule. No action was taken. 10. Authorize Funds to Digitize Building Plans (CR2004-87) The Inspection Department has approximately 685 commercial building plans stored in the lower level storage area. This storage space is being remodeled as part of the Police Department project. The plans will have to be moved from the area. Storage space is limited and will eventually be filled. Mr. Genellie mentioned three options, move the plans to another building, store them off site or have them digitized. The cost of the digitized would be limited to 520,000. June 1, 2004 City Council Meeting Minutes Page 7 The Council discussed the various options. In response to questions, staff assured the Council that future plans will be scanned in house. Council Member Brausen moved and Council Member Johnson seconded a motion to authorize the City Manager to spend no more than 520,000 for the purpose of digitizing building plans. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. Mr. Mielke announced that the work session scheduled for June 8, 2004, would begin at 6:00 p.m. VIII. ADJOURNMENT There being no further business, Council Member Johnson moved and Council Member Thompson seconded a motion to adjourn the meeting. The meeting was adjourned by unanimous consent at 10:55 p.m. Respectfully Submitted, erry O aier, City Clerk ATTEST: y, ~~f /~~ Eugene J. M xw ,Mayor June 1, 2004 City Council Meeting Minutes Page 8 COUNCIL MEMBERS