03-14-11 CC WS Mtg MinCITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
MONDAY, MARCH 14, 2011
MINUTES
1. CONVENE CITY COUNCIL WORK SESSION
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
6:00 P.M.
Mayor Liz6e called the meeting to order at 6:02 P.M.
A. Roll Call
Present. Mayor Liz6e; Councilmembers Hotvet, Woodruff and Zerby; Attorney Keane (arrived at
6:06 P.M.); Administrator Heck; Finance Director DeJong; Planning Director Nielsen;
Director of Public Works Brown; and Engineer Landini
Absent: Councilmember Siakel
B. Review Agenda
Hotvet moved, Woodruff seconded, approving the agenda as presented. Motion passed 4/0.
2. SMITHTOWN CROSSING
Director Nielsen explained the Planning Commission began working on the Smithtown Crossing
Redevelopment Study (the Study) in 2010. The Study area includes the commercial area around County
Road 19 and Smithtown Road. It's broken into three locations; the northwest quadrant of the Smithtown
Road and County Road 19 intersection, the southeast quadrant of that intersection, and the area north of
County Road 19 just west of Shorewood Lane. The Study has focused primarily on the northwest
quadrant, while noting some of the things the Commission talked about to date also apply to the southeast
quadrant. The City's Comprehensive Plan states the City would prefer a unified, cohesive redevelopment
of the northwest quadrant as opposed to parcels being developed individually.
Nielsen reviewed a number of benefits that could be achieved from redeveloping the northwest quadrant
with a unified, cohesive approach.
➢ It would be much more efficient to develop pending for the entire quadrant than on a lot
by lot basis. Drainage is very sensitive in that area; both rate control and volume control.
➢ There could bejoint use parking.
➢ There would be some flexibility with setbacks, in particular in a planned unit
development (PUD).
➢ There would be more efficiency in landscaping. Landscaping is a big element of the
Study.
Nielsen highlighted the three locations on a map. He noted the west boundary of the northwest quadrant
is not well defined. He explained as the area progresses west along Smithtown Road there are single
family residential properties. The Planning Commission wanted there to be some flexibility with that
boundary should a developer want to buy some of those properties. The public safety facility and the
City's Public Works garage located in the northeast quadrant are not included in the overall Study. There
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March 14, 2011
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is a property about 1.5 acres in size with a single family house on it in that quadrant and there was
discussion that the property could be developed into something other than single family residential. One
of the issues associated with the southeast quadrant is that it technically abuts residential property; that's
where the City Hall and Badger Park are located. The lots in that quadrant are shallow and it's difficult to
meet some of the City's setback requirements.
Nielsen stated Gideon Glen is included in the northwest quadrant portion of the Study even though its
use and development have been determined already. Future redevelopment could potentially take
advantage of some of the Gideon Glen views on the northerly edge. There is an issue of buffering Gideon
Glen and the residential area to the north of it. There is a potential issue of land use transition on the west
end of the quadrant. Both vehicular and pedestrian internal circulation is an issue. On the very corner of
the quadrant there is a site that could have soil issues, although it has received a clean bill of health from
the Minnesota Pollution Control Agency. Phasing for the entire redevelopment of this quadrant could be
an issue. There's hope that a single developer would develop this area, but it could realistically be done
in pieces as long as there is a unified, cohesive development plan. There is some concern about vehicular
access to and from County Road 19 as well as to and from Smithtown Road.
Nielsen displayed a concept drawing prepared by Planning Commissioner Hasek showing some of the
things the Planning Commission would like see happen if the northwest quadrant is redeveloped. It
reflects a unified and cohesive development, one large ponding area, access control along County Road
19 and Smithtown Road, and some type of area identification (this is consistent with the Country Road
19 Corridor Study). He also displayed a drawing showing what it could look like if the lots were
developed independent of each other. There could potentially be a pond on each of the lots and the ponds
would be very inefficient and ineffective. Developing the area on a piecemeal basis would be much less
efficient because each lot would have to comply with the setback requirements, its own pending, and
parking area.
Nielsen explained the vision for the Smithtown Crossing redeveloped area was set forth in a vision
statement. The intent of the vision statement is to paint a picture for developers of what the City is
looking for. Some of the items are above and beyond the requirements of the City Code. For example, the
City has minimal construction material requirements as well as minimal landscaping requirements. The
Planning Commission suggested the City offer incentives to developers so that they would put in
enhanced landscaping, use natural materials in the architecture and so forth.
Nielsen stated in May 2010 the Planning Commission met with some of the northwest quadrant area
property owners. The meeting was relatively well attended. A few owners of residential properties in the
area also attended the meeting. The American Legion, which owns three parcels in the quadrant, was
well represented. There seemed to be consensus among the property owners at the end of the meeting that
a unified, cohesive development approach to redeveloping the area was best for all property owners.
Nielsen then stated in June 2010 the Planning Commission met with a panel of senior housing
developers. The panel was presented material that had been compiled about what the Commission was
looking for and was asked to provide candid feedback on the material. The panel was also asked to
provide their thoughts about the current market. The original vision statement indicated a desire for the
area to be redeveloped retail and housing. The panel members did not think there would be a strong
market for strictly retail. They indicated commercial services would be better than retail in that location.
He noted the City does have a Commercial Service zoning district that has to do with trade contractors
and light industrial type activities. That District is located almost primarily on the east end of County
Road 19 abutting the City of Excelsior.
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March 14, 2011
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Nielsen went on to state the panel members expressed they did not think vertical mixed use would work
well; it isn't working well anywhere in Minnesota. He noted the City Ordinance would allow for a
vertical mixed use development. He stated it's more likely the area could be redeveloped as horizontal
mixed use. He noted there was consensus among the panel members that if the City would allow
somewhat taller buildings than the current height restriction of three stories or 40 feet in height it would
increase the likelihood of the quadrant being redeveloped.
Nielsen explained that in August 2010 the Planning Commission toured several projects in the west
metro. The focus of the tour was mixed use development, design, senior housing, and building heights.
Nielsen described a development located in the Glen Lake area in the City of Minnetonka. He also
showed pictures of that development. That development is a mixed use development. It's a five -level
building with a gable roof that fits well into the site. The top level of the building is in the gable so it
diminishes the effect of the height. There was substantial landscaping and street lighting around the area.
He then displayed a picture of and described a mixed use development located in the City of Chanhassen.
The Planning Commission was not overly enthusiastic about the character of the building. The
landscaping around the area was significant.
Nielsen stated the Planning Commission also went to look at two developments kitty corner from each
other located in the City of Golden Valley. One development is called The Town Square and the other
The Commons. He displayed pictures of the developments. He stated the Commission liked the idea of
the public space in the developments. The Commission thought some type of public /common space in a
redeveloped northwest quadrant could be a draw for people. He displayed a drawing of The Town Square
development superimposed over the northwest quadrant, noting it fits in there quite well and leaves room
for a residential development of some type. He noted The Town Square development includes a parking
ramp and that is not expected in the City. He stated if there were to be a similar development project in
the quadrant it would have on -grade parking.
Nielsen noted that the pictures of the developments the Planning Commission looked at will not be
included in the Study report. The Commission wants developers to come up with their own ideas.
Nielsen stated the Planning Commission would like to see something like The Town Square development
for the northwest quadrant. That development is a two -story structure with a relatively steep pitched roof
that houses all of the mechanical equipment. "There is retail below and office space above. The office
space has not done as well as one would have expected because office people don't want to have to smell
odors from retail operations.
Nielsen noted the Study report includes some copies of photographs which depict what the City is
looking for.
Nielsen stated if the City is willing to give incentives for developments with things such as angled
rooftops, depth and shadow, and significant landscaping it will help entice developers to redevelop the
area the way the Planning Commission recommends. He noted the previous council indicated it was
willing to consider tax increment financing (TIF). He stated he thought that would be pretty essential to
redeveloping the area with a unified, cohesive approach. TIF would be one way the City could contribute
toward the redevelopment in order to try and make it happen the way the City would like.
Nielsen explained the Planning Commission talked about potential amendments to the City's Zoning
Code that include provisions tying flexibility and reward to the level of compliance with the City's vision
for the area. One provision would be to allow taller buildings for the right project and under the right
circumstances. For example, allowing a building to be as high as forty -five feet tall provided the
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March 14, 2011
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architectural design and landscaping fit with the City's vision. Another provision would allow for higher
densities than currently allowed in mixed use developments based on certain conditions.
Nielsen then explained the Commission also discussed the possibility of the City acquiring land in the
area when it becomes available on the market. Having the needed land available when the time comes to
redevelop the area would be helpful. The Study report suggests the City acquire land. He noted there is a
single family residential parcel located on the west edge of the area that is on the market. When that
property turns over the house on the property will likely be torn down. He stated the City could buy that
property, tear the house down and hold on to it until there is a redevelopment project.
Mayor Liz6e asked if the American Legion has any interest in partnering with a developer on the
redevelopment of the northwest quadrant. Director Nielsen responded that during the Planning
Commission's meeting with the property owners Legion representatives expressed interest in partnering
with someone. The Legion wants a new facility. He explained that one of the three parcels the Legion
owns does not abut either of the other two parcels. He noted the Legion is a key land owner.
Director Nelsen noted that a couple of private development groups are somewhat interested in the
northwest quadrant. He stated that in the past the money hasn't worked out for developers even if TIF
was factored in to the equation.
Mayor Liz6e stated PUDs have been an effective tool in the City over many years. She asked if the City
would have to have control over all of the property in the northwest quadrant in order to designate it as a
PUD. Director Nielsen explained the PUD happens with the development. The City's Comprehensive
Plan suggests the quadrant be redeveloped as a PUD, but it has not been zoned as a PUD yet in part
because the west end boundary of the area is not known at this time. There are advantages to both the
City and a developer to develop the area as a PUD. There is more flexibility with a PUD, especially
internally. If the parcels were to be developed individually each property would have to have a minimum
of a five -yard setback from the parking area on the property to the property line and each property would
have to have its own ponding. If developed as a PUD there could be joint parking and one ponding area.
Mayor Liz6e asked if it makes sense to amend the City's PUD to address mixed use now or is it better to
make it site specific. Director Nielsen responded the Planning Commission will discuss a mixed use
provision in the PUD section of the City's Ordinance in the upcoming months.
Councihnember Zerby asked if the Planning Commission considered also looking further to the east on
County Road 19. Director Nielsen stated the Planning Commission studied that area which is called
Planning District 6 in 2007. The study was done in conjunction with the Shorewood Yacht Club
property. During that study property owners expressed reservations about changing the zoning of their
properties at that time.
Nielsen explained Planning District 6 includes the following commercial sites: 1) the Shorewood Yacht
Club (SYC) (zoned L -R, Lakeshore Recreational; 2) the Minnetonka Portable Dredging Company
(zoned C -2, Commercial Service); 3) the South Lake Office Building (zoned R -C, Residential
Commercial; 4) the Garden Patch Nursery (zoned C -2); and 5) the property between the South Lake
Office Building and the Garden Patch Nursery (zoned C -2), which is the old Crepeau Dock location and
is owned by the same individual who owns the Garden Patch Nursery.
Nielsen then explained the C -2 District was created to specifically accommodate the existing uses of
Crepeau Dock, the Garden Patch, and the Minnetonka Portable Dredging Company. During the study the
Planning Commission proposed phasing out the C -2 District. Nielsen stated this Study did not go that far
east. He noted the Planning Commission does intend on revisiting Planning District 6.
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March 14, 2011
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Councilmember Zerby asked what the biggest issue has been for developers when it comes to
redeveloping the northwest quadrant. He stated he heard CVS was considering the site. Director Nielsen
explained CVS wanted a site with highway exposure. Nielsen stated Staff told CVS representatives that
there is a lot of traffic on County Road 19, albeit not as much as on Highway 7.
Zerby then asked if the Planning Commission considered using the northwest quadrant for recreational
purposes. Director Nielsen responded the Commission didn't want to eliminate the commercial element
of that quadrant, and it did not specifically consider a recreational use. Nielsen stated a common area and
pedestrian circulation are a key part of what the Commission is looking for.
Zerby stated there is a lack of temporary event space in the South Lake community for things such as the
Excelsior Farmer's Market, flea markets and Christmas tree sales. The quadrant would be an excellent
use for a town square concept. The area was talked about as part of the gateway project. Director Nielsen
stated a common area could facilitate some of those types of events.
Director Nielsen stated there has been a lot of discussion about a desire to have a connection between the
LRT Trail to the north on Country Road 19 and the Smithtown Crossing area. He noted there may not be
adequate parking to accommodate commercial, residential and event uses at the same time. He stated the
land in the northwest quadrant is quite expensive for just soft recreational use. Councilmember Zerby
stated there is a parking east across County Road 19 and also by City } Nielsen stated maybe the City
could contribute property for a common area so a developer wouldn't have to pay for land he won't make
any money off of. Zerby stated he could envision a nice fountain in a common area in the quadrant and
that he thought that would help sustain property values.
Councilmember Hotvet stated there is an opportunity to install some type of trail amenity in that area,
noting trail amenities are lacking between the City of Excelsior and Carver Park. It could be like a natural
wayside rest area.
Director Nielsen stated the Planning Commission wants there to be a connection between Smithtown
Crossing to the LRT Trail to the north.
Councilmember Hotvet stated there has been discussion about expanding the shopping area located in the
City of 'Ibnka Bay which is east across County Road 19 from the northwest quadrant. She asked if
anyone knows what Tonka Bay's plans are. Director Nielsen responded he has not heard about any
expansion plans.
Director Nielsen related that a senior housing analyst stated three story buildings for senior housing are
being built all over the place, but vertical mixed use with commercial below and senior housing above
are not being constructed. He explained that some portion of a higher building could be set into the hill
on the northwest quadrant and that would reduce the visual impact of a higher building. He stated prior to
the Council and the Planning Commission meeting on this study he would like to prepare a drawing
showing what a four -story building would look like on the site.
Councilmember Woodruff complemented Director Nielsen on the great job he did of pulling all of the
information for the Study together and thanked the Planning Commission for the hard work it has done
on the Study. He commented that he has a copy of document summarizing the feelings of developers in
the metropolitan area about doing things similar to this. He stated lie thought the City tries to be
cooperative when working with developers, but some cities don't.
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March 14, 2011
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Mayor Liz6e stated the northwest quadrant property ties into the community. She then stated she thought
any development would want to capitalize on the Gideon Glen development. She went on to state she
thought it would be great to tie pedestrian and trail usage together, and that to do it as part of a PUD
would be a good idea. She suggested Council have continued discussion about how much control the City
should have and whether or not it should invest in the property.
Director Nielsen stated that the more the City invests the closer it will get to having the northwest
quadrant redeveloped the way it would like. He expressed he did not think the area could be redeveloped
in a unified, cohesive way if all the City does is make a few changes to the City Ordinance. If the City
contributes something to the redevelopment effort it's more likely the vision could be realized. Asking a
developer to leave three - fourths of an acre for common open space without giving anything in return
won't get the City very far. But, if the City is willing to make a contribution a developer can focus on the
part of the project that will make them money.
Mayor Liz6e stated she's interested in gaining an understanding of how the City can take advantage of its
economic development authority (EDA) and how TIF plays into that. She noted the Study report states
"Assisting In the correction of problem soils is yet another,function of the EDA." She stated there are
problem soils in the northwest quadrant.
Attorney Keane asked how large the single family residential property is that is for sale on the west end
of the quadrant and what the selling price is. Councilmember Zerby stated the property is located at
24620 Smithtown Road and the asking price is $154,000. Director Nielsen stated lie thought the property
is more than an acre in size.
Administrator Heck asked Council if its vision is in harmony with the Planning Commission's vision for
the redevelopment of the northwest quadrant. Director Nielsen stated he has not heard anything from the
Council that indicates the two visions are contrary.
Director Nielsen noted that one of the American Legion's goals is visibility. It wants to be seen from
County Road 19. He stated so far the Planning Commission's discussions have been about the common
area being a centralized feature of the development. The common area location would be up to the
developer. Mayor Liz6e suggested the City remain flexible in assigning the location in the quadrant.
Nielsen stated the southeast quadrant may be better suited for public space. He noted the City does not
own the very tip of the northwest quadrant corner; Tonka Bay does. Councilmember Zerby stated access
to the southeast quadrant is not very good.
Mayor Liz6e suggested Council discuss a date for a joint meeting with the Planning Commission and
Park Commission. Director Nielsen noted he will be gone for 2.5 weeks in April. Nielsen suggested May
3` for the meeting. He then suggested that during the first hour sustainability be discussed and during the
second hour the Smithtown Crossing Study be discussed. After that the Planning Commission could
continue on with its regularly scheduled meeting.
The current plan is to have the meeting on either May 2 nd or May 3'd
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March 14, 2011
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3. ADJOURN
Zerby moved, Woodruff seconded, Adjourning the City Council Work Session of March 14, 2011,
at 6:58 P.M. Motion passed 4/0.
RESPECTFULLY SUBMITTED
Christine Freeman, Recorder
Christine Liz�e, Mayor
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