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042505 CC Reg Min . CITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, APRIL 25, 2005 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL MEETING Mayor Love called the meeting to order at 7:00 P.M. A. Roll Call Present: Mayor Love, Councilmembers, Callies (arrived 7:38 P.M.), Lizee, Turgeon, and Wellens; Administrator Dawson; Attorney Keane (arrived 7:07 P.M.); Engineer Brown, Finance Director Burton, and Planning Director Nielsen Absent: None B. Review Agenda Mayor Love reviewed the Agenda for this evening. Administrator Dawson requested Item 8E, A Request for Sign Permit for Sunsplash Sun Studio, be added to the Agenda for this meeting. He also noted the date for the Firefighters Dance in Item 3D was July 15,2005. . Lizee moved, Wellens seconded, Approving the Agenda as amended. Motion passed 4/0. 2. APPROVAL OF MINUTES A. City Council Regular Meeting Minutes, April 11, 2005 Wellens moved, Turgeon seconded, Approving the City Council Regular Meeting Minutes of April 11,2005, as presented. Motion passed 4/0. B. City Council Work Session Minutes, April 11, 2005 Turgeon moved, Wellens seconded, Approving the City Council Work Session Meeting Minutes of April 11, 2005, as presented. Motion passed 4/0. 3. CONSENT AGENDA Lizee moved, Wellens seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein: A. Approval of the Verified Claims List B. Staffing - No action required . c. City Clerk's License Approvals . . . CITY OF SHORE WOOD REGULAR COUNCIL MEETING APRIL 25, 2005 Page 2 oft 0 1. Adopting RESOLUTION NO. 05-033, "A Resolution Approving an Intoxicating Liquor License On-Sale Intoxicating Liquor and Special Sunday Sales for Minnetonka Country Club." 2. Adopting RESOLUTION NO. 05-034, "A Resolution Approving Intoxicating Liquor License On-Sale Liquor and Sunday Sales for American Legion Post #259." 3. Adopting RESOLUTION NO. 05-035, "A Resolution Approving a 3.2 Percent "Off-Sale" Malt-Liquor License for Cub Foods." D. Approvals for Excelsior Firefighters Relief Association Dance on July 17, 2005 1. Adopting RESOLUTION NO. 05-036, "A Resolution Approving a Temporary 3.2 Percent Malt Liquor License." 2. Special Event Permit 3. Temporary Sign Permit - 24100 Smithtown Road E. Approval of the Agreement with Minnesota Safety Services for Lifeguard Services for Crescent Beach F. Adopting RESOLUTION NO. 05-037, "A Resolution Authorizing a Transfer of Funds from the Sewer Fund to the General Fund; Setting the Terms and Providing for the Repayment Thereof." Memorandum for Internal Loan G. Adopting RESOLUTION NO. 05-038, "A Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment and Ordering an Assessment Hearing for Timber Lane Watermain Project." H. Approval of the Spring Clean-Up Contract for Services I. Authorization for Expenditure of Funds for a Color Copier/Printer Motion passed 4/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. REPORTS AND PRESENTATIONS A. Report by Tom Skramstad, LMCD Representative Mr. Skramstad, Chair and Shorewood's Representative to the Lake Minnetonka Conservation District (LMCD), reported on issues pertaining to the Veterans Camp on Big Island, deicing permits, a communication process on high water emergencies, zebra mussel prevention programs, boat density committee and study, boating restrictions on Six Mile Creek and logistics ofthe LMCD. In response to Mayor Love's question, Mr. Skramstad explained the process for communicating high water emergencies to citizens was under review by the LMCD, and more information would be presented to residents at a later date. . . . CITY OF SHOREWOOD REGULAR COUNCIL MEETING APRIL 25, 2005 Page 3 of 10 Mr. Slaamstad also requested the City consider additional articles on zebra mussels within the City newsletter as a way to educate the public on this topic. He agreed the LMCD would provide additional articles to Administrator Dawson for inclusion in the upcoming newsletters. Councilmember Lizee also suggested he contact the school districts to work with the Staff and students on this topic. Mr. Slaamstad thanked Council for its suggestions and time in these matters, and encouraged all interested persons to contact the LMCD regarding a boat density study. He stated there would be a meeting of the Boat Density Committee of the LMCD on Wednesday, May 11,2005, at the Wayzata City Hall to gather feedback on this topic. Mayor Love thanked Mr. Slaamstad on behalf of the Council for all his efforts in representing the City on the LMCD. 6. PUBLIC HEARING There were no public hearings scheduled this evening. 7. PARKS A. Report on Park Commission Meeting Held April 12, 2005 Commissioner Meyer reported on matters considered and actions taken at the April 12, 2005, Park Commission Meeting (as detailed in the minutes of that meeting). Discussion ensued regarding matching funds for contributions received for the Music in the Park series. Information on the matching program for this series would be made available in the next newsletter. B. Authorize Expenditure of Funds for Skate Park Equipment Turgeon moved, Wellens seconded, Authorizing Expenditure of Funds for Skate Park Equipment as outlined in the proposal provided by TrueRide. Motion passed 4/0. 8. PLANNING Commissioner Conley reported on matters considered and actions taken at the April 19, 2005, Planning Commission Meeting (as detailed in the minutes of that meeting). A. C.U.P. For Accessory Space over 1200 Sq. Ft. Applicant: Paul and Nancy Zander Location: 5215 Howard's Point Road Director Nielsen explained the history of the case, noting the applicants proposed demolishing the existing house located at 5215 Howard's Point Road, intending to build a new home on the property which would include space under the attached garage for additional storage. Total floor area of the two garage levels would be greater than 1200 square feet in area and necessitated a request for a Conditional Use Permit, pursuant to Section 1201.03 Subd. 2.d.(4) of the Shorewood Zoning Code. Councilmember Callies arrived at 7:38 P.M. CITY OF SHOREWOOD REGULAR COUNCIL MEETING APRIL 25, 2005 Page 4 of 10 . He went on to explain the property was zoned R-IAlS, Single-Family Residential/Shoreland and contained approximately 28,008 square feet in area. The garage areas were located on the front of the house and would contain 2180 square feet of area, split evenly between the two levels. The upper level garage faced west, while the lower level garage faced north. Director Nielsen stated the request for a Conditional Use Permit complied with all necessary criteria for this request; however, he noted the lower level garage doors would be double doors, rather than three doors as on the upper level. The Zander's were present this evening and stated they would answer any questions the Council may have had of them. Turgeon moved, Callies seconded, Adopting RESOLUTION NO. 05-039, "A Resolution Granting a Conditional Use Permit for Additional Accessory Space to Paul and Nancy Zander, 5215 Howard's Point Road." Motion passed 5/0. B. C.U.P. For Reconstruction of Badger Well House and Parking Lot Improvements Applicant: City of Shorewood Location: 5745 Country Club Road . Director Nielsen explained several years ago the City prepared an improvement plan for its Badger Field property, located at 5755 Country Club Road. At that time the site was occupied by Badger Field Park, City Hall, Shorewood Public Works Department and a pole building housing the Badger Field well. That plan has been mostly implemented, including paving, curbing and striping of parking areas; landscaping; and removal of the old pole barn that housed the Public Works Department. Since that time, the Badger well house was placed at the top of the Capital Improvements Program and would be reconstructed as called for in the original plan. He went on to explain the existing well house was located on a separate parcel of land currently zoned C- 3, General Commercial. Surrounding land uses and zoning included a self-service car wash to the north; zoned C-3, the South Shore Center; zoned R-IC, Single-Family Residential to the east, Badger Field Park; zoned R-IC to the South, and an auto repair shop; zoned C-3 to the West. The subject property was occupied by the well house and 14 parking spaces that served the park and South Shore Center. The existing building contained 1665 square feet of area, and did not conform to current zoning requirements due to its pole barn construction and proximity to property lines. Also the building's proximity to a steep slope to the north plagued it with drainage problems. It had been proposed that the building be totally replaced. The new building would be one story in height and would contain 1040 square feet of floor area. The new building would be of masonry construction, using rock faced block at its base with a burnished block above. The gable ends would have metal siding above the block and on the fascia and soffits. The roof would be asphalt shingles. . Three existing parking spaces for the park and one for the South Shore Center would be lost for the driveway to a new parking area on the west side of the new building; however, nine new spaces would replace the four. A sidewalk and security lighting would be located at the rear of the building to provide safe pedestrian access from the new parking to the South Shore Center. CITY OF SHOREWOOD REGULAR COUNCIL MEETING APRIL 25, 2005 Page 5 of 10 . Proposed landscaping for the site would consist of foundation plantings on the south side and northeast comer of the building. Two sugar maple trees were shown on the west side of the new parking lot with ornamental trees and arborvitae planted along the sidewalk area. With regard to the analysis of the case, Director Nielsen explained public regulated utility buildings were provided in both commercial and residential zoning districts. He noted several areas of concern including issues related to legal combination of the subject parcel with the Badger Field property, and consideration of rezoning the property from commercial to residential. He also noted various issues including buildings and parking setbacks, screening and landscaping, lighting, and building color. Despite these issues, he recommended the proposed building, parking and landscaping, as proposed, were a vast improvement over what currently existed. Staff recommended the request for Conditional Use Permit be approved, subject to several conditions outlined by Staff. In response to Councilmember Wellens's question, Director Nielsen explained the drainage issues for the site would be remedied as part of this project. Lizee moved, Wellens seconded, Adopting RESOLUTION NO. 05-040, "A Resolution Granting a Conditional Use Permit for the Construction of a Well House Building at Badger Field, 5745 Country Club Road." Motion passed 5/0. c. Rezoning From C-2, Auto-Oriented Commercial to R-IC, Single-Family Residential Applicant: Location: City of Shorewood 25575 Smithtown Road . Director Nielsen explained that last year the Planning Commission, in its annual review of the Zoning Code, determined that the C-2, Auto-Oriented Commercial District, was obsolete and should be eliminated from the Code. Last month a public hearing was continued, pending a rezoning of the one parcel of land in Shorewood that had that zoning classification. The subject property was located at 25575 Smithtown Road and was currently occupied by Lake South Automotive - an auto repair garage. He noted a survey of the subject property was not available at this time; however, an aerial photo depicted the existing building and parking areas on the site. The property had 19,961 square feet of area, according to Hennepin County tax records. The site was entirely surrounded by single-family residential development with R-1C zoning to the north and west, and R-1A zoning to the south and east. The Land Use Plan in Shorewood's Comprehensive Plan designated the future land use of the subject property as low-to medium-density residential. The Area Plan for Planning District 4 stated "Any land use decision relative to the small C-2 property should favor redevelopment to low to medium density residential (one to two units per acre)". . Director Nielsen also went on to explain when the Comprehensive Plan was being discussed, it was noted that although the auto repair operation was an allowable use in the C-2 zoning district, the existing building did not comply with the setbacks of that district, nor did the existing parking area comply with the standards for commercial property (e.g.) setbacks, curbing and striping, and screening from residential property). He also noted the site was essentially unbuildable, due to the requirement that commercial buildings have a 50-foot setback from residential properties. This was considered one of the main reasons that "spot zoning" was so strongly discouraged. . . . CITY OF SHOREWOOD REGULAR COUNCIL MEETING APRIL 25, 2005 Page 6 of 10 By contrast, the site was very usable as a residential site. He then provided an illustration of the setbacks if the property would be zoned R-l C, Single-Family Residential. He stated it was worth noting that there were two choices as to which residential classification the property should have in the future. Property to the east of the site was zoned R-lA, while property to the south of the site was zoned R-lC. The subject property would not be buildable as an R-lA (40,000 square feet), therefore the R-lC classification was recommended. Next he reviewed how the property would be affected by the change in zoning classification. The property would be "grandfathered in" and the business could continue to operate as it had in the past. It could be sold as a nonconforming use and a new owner might continue the business as it has been operated in the past. Under the new classification, neither the building nor the parking area could be expanded. However, he noted, that was the case under the existing classification as well, due to the substantial nonconformity of the site. Perhaps the most significant impact of the rezoning was that any change in the existing use of the property would have to be to residential use rather than the list of allowable uses in the C-2 district. Again, the site was quite buildable and usable as a residential property. ill working with the City on this matter, the property owner had suggested that the "down zoning" of his land represented a taking and questioned how he would be compensated at the last public hearing on this matter. Staff had contacted the City Attorney to address this issue, and he was present this evening to provide information on that topic. Attorney Keane summarized a memorandum he had presented to the Council earlier in the evening regarding issues related to "down-zoning" and whether a zoning change constituted a regulatory taking including denial of an owner's economically viable use of his/her land. He noted in this case, the uses allowed in the auto-oriented commercial district were fairly limited in scope and probably had limited commercial viability given the low volumes of traffic and surrounding residential character of the area. The proposed R-IC District would allow the property owner to redevelop the property as residential use as was consistent with the Comprehensive Plan and the surrounding land use pattern. Residential lot sales throughout the City had been exceedingly strong in recent history. ill addition, he noted the business could remain as was being currently operated or could even be sold as the same business use. Further, there was no sunset clause associated with the use in this case. ill summary, he stated, Minnesota statutes required metropolitan cities to conform zoning classifications to Comprehensive Plan designations. A property owner had no vested right in a zoning classification, and based on current regulatory takings law, it was his opinion that the change in zoning for the property would not constitute a regulatory taking. Mayor Love stated the City was in receipt of a petition submitted on this matter by the owner of Lake South Automotive. Bill Kirchner, owner of Lake South Automotive located at 25575 Smithtown Road, stated he had several remaining concerns. He questioned the urgency in rezoning his property, and noted his business was wanted in that location by area residents as he provided several valuable services to the community in addition to automotive repair. He stated his site was considered a non-conforming site only since Kelsey Lane had been added as part of a recent development project. He did not see value in changing the rezoning as it impacted his long term fmancial benefits for his family. He stated a rezoning ofthe property would "devalue" his property by approximately 30% as lenders would interpret the rezoning as wishing to eventually rid the area of the business site. He requested the City table this matter until some CITY OF SHOREWOOD REGULAR COUNCIL MEETING APRIL 25, 2005 Page 7 of 10 . time in the future since his business had been in place since 1932, prior to many of the City's current zoning ordinances. Sheryl Gilbertson, 26055 Shorewood Lane, stated she was a long-time resident ofthe City who believed strongly that this matter should be pursued. She implored the Council to look beyond the legalities of the situation and examine the ramifications of action on this matter. She stated Lake South Automotive had been a good neighbor for the past 21 years, and she did not like the idea that this property would be devalued as result of City actions. She stated she liked the mixed use of the area and the small town feel of the area. She did not see any advantages arising out of the rezoning that would better the City and only saw negative impacts to Mr. Kirchner and his business. She further stated redevelopment in the area had already begun to take place in the area, and she could not understand any reasons why this matter had to be pursued at this point in time. She requested the City table action on this matter, and if it could not at this time, consider compensating Mr. Kirchner for the action. Michael Hoy, 25480 Smithtown Road, stated he had lived across the road from Lake South Automotive for seven years, noting there were many fine qualities ofMr. Kirchner. He stated he thought it was disingenuous of the City to remove property rights from Mr. Kirchner without compensation. He thought the rezoning seemed unfair in this case, and he believed it was nice to have diversity in Shorewood. . Councilmember Wellens stated it seemed as though this case was driven by the Comprehensive Plan. He stated he thought it was important for the City to have the Comprehensive Plan fit its residents and not the other way around. He stated this seemed to be a solution without a problem and he did not believe adequate justification had been made in this case. Councilmember Callies stated she heard the numerous accolades related to Mr. Kirchner and noted these also impacted business value. She summarized the actions taken related to the Comprehensive Plan in this case, and noted the State of Minnesota and City of Shorewood required good planning for the City, including the removal of spot zoning sites within the City. She stated she thought it was beneficial to have the parcel fit into the neighborhood. She further stated this case was not about Mr. Kirchner but about the use designated for his property, and that was the exact reason for planning for the future. She noted the rezoning would not preclude Mr. Kirchner for continuing his operations. Councilmember Lizee agreed, noting she viewed this matter as consideration of changing a commercial site to a residential site with uses remaining into perpetuity. She also did not think this case infringed on the property rights of Mr. Kirchner. Councilmember Turgeon clarified this property was the only site of its kind remaining in the City, and noted the decision would be quite difficult if Mr. Kirchner could not operate his business at all or could not sell it; however, that was not the case. Mayor Love questioned the impact to any potential business plans for the site. Attorney Keane explained lenders frequently examined sites for zoning compliance and some were more stringent than others in this regard. . Paul Zisla, attorney representing Lake South Automotive, stated the proposed action would create problems in viability for the site and the owner believed a diminution would take place. While legally the action could be taken, he stated it did not mean it had to be taken at this point in time. Further, he . . . CITY OF SHOREWOOD REGULAR COUNCIL MEETING APRIL 25, 2005 Page 8 of 10 stated there was a great deal of support for Mr. Kirchner and the property would be less valuable for him with a loss of flexibility. He suggested the Council look to find alternatives. Mayor Love stated the issues of acting versus reacting to a situation defined planning in the utmost sense of the word. Councilmember Lizee agreed, noting there was very little that was less flexible with the rezoning than was the current situation. Councilmember Turgeon questioned what modifications could be made to the property currently. Director Nielsen explained the property could be maintained, but not expanded or altered. He also clarified there was not a conditional use permit associated with this property in any way at this time. Mayor Love stated he appreciated all comments received on this case, and it was the Council's responsibility to review any removal of property rights from a resident. Callies moved, Amending the Zoning Code to Eliminate the C-2, Auto-Oriented Commercial District. Motion failed for a lack of second. Callies moved, Lizee seconded, Adopting ORDINANCE NO. 414, "An Ordinance Amending Section 1201.09 Subd. 2. of the Shorewood Zoning Code and the Shorewood Zoning Map." Motion passed 4/1, with Wellens dissenting. D. Zoning Code Amendment Eliminating The C-2, Auto-Oriented Commercial District Lizee moved, Callies seconded, Adopting ORDINANCE NO. 415 "An Ordinance Amending the Shorewood Zoning Code to Eliminate the C-2, Auto-Oriented Commercial Zoning District" and Adopting RESOLUTION NO. 05-041, "A Resolution Approving Publication of Ordinance No. 415 by Title and Summary." Motion passed 5/0. Mayor Love thanked all parties involved for being present this evening and he personally wished to express appreciation for the business and site being part ofthe community. E. Sign Permit for Sunsplash Sun Studio Director Nielsen explained Edison Signs, on behalf of Sunsplash Sun Studio, had requested a sign permit for their location with the Shorewood Village Shopping Center. Director Nielsen noted the request was consistent with the Conditional Use Permit governing the site and Staff recommended approval of the ma tier. Wellens moved, Turgeon seconded, Approving a Sign Permit for Suns plash Sun Studio, Shorewood Village Shopping Center, 23750 State Highway 7. Motion passed 5/0. . . . CITY OF SHOREWOOD REGULAR COUNCIL MEETING APRIL 25, 2005 Page 9 of 10 9. GENERAL/NEW BUSINESS A. Calling for the Sale of Bonds Administrator Dawson stated at a Work Session Meeting held on January 24, 2005, the Council had indicated support for water system improvements and the issuance of water revenue bonds to finance same. He noted the proposed action this evening would set a date for the sale of bonds and would approve a financial services agreement allowing that action to take place. Engineer Brown then noted the projects that would be financed from the sale of these bonds. Finance Director Burton reviewed the budget and bond scenario for these projects for Council. Mr. Paul Donna, of Northland Securities, explained the bonding process for Council and providing a brief synopsis of the issuance environment in the current marketplace. B. Authorization of Services of BKV Group Administrator Dawson explained that at its March 28,2005, Work Session meeting, Council agreed concepts for improvements to City Hall should be developed further especially in light of the recent acquisition of property adjacent to City Hall. He also noted since BKV Group had performed the City Hall evaluation completed early last year, there might be economies to having that firm build upon its work. To that end, BKV Group had submitted a proposal to further evaluate concepts in greater depth over the next few months. Its work program would include identification and assessment of up to seven options, including enhancement of previous options as well as development of three new concepts. Costs for this evaluation were estimated to be $10,000. Councilmembers Callies and Turgeon expressed concern for the amount of hours and associated costs for this evaluation. Discussion ensued regarding this topic. Lizee moved, Turgeon seconded, Recommending Authorizing the Services of BKV Group to develop further refinement of option for City Hall improvements, not to exceed $10,000. Motion passed 5/0. 10. ENGINEERINGIPUBLIC WORKS Engineer Brown stated there was nothing to report on at this time. 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff 1. County Road 19 Intersection Engineer Brown noted the utility realignment work had begun and was proceeding nicely in the northern section of the project near the carpet store. In addition, he noted there would be a significant change in the landscape in the area of the chocolate shop near the Tonka Village Shopping Center. Councilmember Turgeon questioned the status of the utility costs for the project. Engineer Brown noted the costs had shifted significantly in recent months and Staff continued to pursue resolution of these issues. Attorney Keane stated it would be appropriate for the City to engage an expert regarding . . . CITY OF SHOREWOOD REGULAR COUNCIL MEETING APRIL 25, 2005 Page 10 of 10 segmenting the costs associated with upgrades to utilities and construction. Engineer Brown stated he would report back to Council on this matter. 2. Concession Operation Services Update Engineer Brown stated Staff was pleased to report an agreement had been reached with a new contractor, Mr. Russ Withum, to provide concessions services at Eddy Station in Freeman Park beginning April 18, 2005. B. Mayor & City Council 1. SLMPD Issues Group Mayor Love stated the South Lake Minnetonka Police Department Issues Group continued to make progress in the mediation process outlined for the member cities. Further meetings would take place in May and more information would be available at that time. One tentative agreement had been reached on members ofthe Coordinating Committee by the Issues Group. Councilmember Lizee stated she had attended the Met Council's West Metro Transit Meeting in Hopkins on April 12, 2005, regarding changes in transit routes. She provided a status report on the actions at that meeting, noting more information would be available at a later date. Councilmember Turgeon requested a Work Session Meeting to be held after the next Regular Council meeting. 12. ADJOURN Lizce moved, Wellens seconded, Adjourning the Regular City Council Meeting of April 25, 2005, at 9:43 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Sally Keefe, Recording Secretary Woody Love, Mayor