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HomeMy WebLinkAbout2023-04-18 City Council Meeting MinutesPage 1 MINUTES OF THE REGULAR MEETING OF THE EDINA CITY COUNCIL APRIL 18, 2023 7:00 P.M. I. CALL TO ORDER Mayor Hovland called the meeting to order at 7:03 p.m. then shared the procedure for public hearing and community comment. II. ROLLCALL Answering rollcall were Members Agnew, Jackson, Pierce, Risser, Hovland. Absent: None. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED AS PRESENTED Member Jackson made a motion, seconded by Member Agnew, to approve the meeting agenda as presented. Ayes: Agnew, Jackson, Pierce, Risser, Hovland Motion carried. V. COMMUNITY COMMENT Andy Brown, 5512 Park Place, shared concerns about the proposed takeover of Fairview Southdale Hospital by Sanford and requested the City petition the City Attorney to instead offer merging with Mayo Clinic instead as Sandford had too much debt. He said this action would have tremendous economic impact in the community and shared concerns regarding future service levels such as ECO truck and funding and requested the Council and City leadership speak to this issue. Janey Westin, 6136 Brookview Avenue, shared copies of City Code Chapter 36 Article III Planned Commercial District 36-612 regarding conditional uses that had been granted for 4404 Valley View Road, The View 44 Apartments, and City Flats development on Kellogg and Valley View Road. She said these areas were still zoned PCD-1 Commercial and not supposed to have residential uses at the basement or first level. She said these uses were not allowed anywhere in City Code and asked why the properties were not zoned more appropriately and stated these concerns needed to be addressed before construction on the former Bruley site occurred. V.A. CITY MANAGER’S RESPONSE TO COMMUNITY COMMENTS Manager Neal responded to Community Comments at the last meeting. VI. CONSENT AGENDA ADOPTED AS AMENDED Member Pierce made a motion, seconded by Member Jackson, approving the consent agenda as amended, removing VI.A., Minutes of the Worksession and Regular Meeting of April 4, 2023: VI.A. Minutes of the Worksession and Regular Meeting of April 4, 2023 VI.B. Approve Claims for Payment for Check Register Claims Pre-List dated March 31, 2023, totaling $2,132,958.17 and Pre-List dated April 7, 2023, totaling $1,664,471.99 VI.C. Request for Purchase; License Plate Readers, awarding the bid to the recommended low bidder, Flock, $43,500 VI.D. Approve 2023 ARPA Grant Agreement Contracts VI.E. Approve Public Participation Plan for Carryout Bag Ordinance Proposal VI.F. Request for Purchase; To Enroll the City in Xcel’s Energy Fleet Electrification Advisory Program, awarding the bid to the recommended low bidder, Xcel Energy, $90,000 Minutes/Edina City Council/April 18, 2023 Page 2 VI.G. Request for Purchase; Change Order: Citywide Facilities Fire Alarm and Sprinkler Services, awarding the bid to the recommended low bidder, LVC Companies, $30,550 VI.H. Request for Purchase; Painting the Edina Aquatic Center Pools, awarding the bid to the recommended low bidder, Paintball, LLC, $54,935 VI.I. Request for Purchase; Braemar Park Courtney Fields Planning Services, awarding the bid to the recommended low bidder, WSB & Associates, $158,700 VI.J. Request for Purchase; Braemar Park Trail and Natural Resources Planning Services, awarding the bid to the recommended low bidder, SRF Consulting Group, Inc., $308,868 VI.K. Request for Purchase; 2023 Commodities Quotes, awarding the bid to the recommended low bidder, Martin Marietta Materials, $3,775.95 Ayes: Agnew, Jackson, Pierce, Risser, Hovland Motion carried. ITEMS REMOVED FROM CONSENT AGENDA VI.A. MINUTES OF THE WORKSESSION AND REGULAR MEETING OF APRIL 4, 2023 – APPROVED AS AMENDED Council Member Risser indicated a concern regarding the accuracy of the April 4 Work Session Minutes. Member Risser said the minutes indicated that Assistant Manager Schaefer said “Edina is the only City to duplicate public hearings” and that is not accurate. Assistant Manager Schaefer indicated that she misspoke as she was introducing the Planning Commission’s topic. However, the minutes are accurate because Assistant Manager Schaefer did say that “I think we are the only City to duplicate public hearings” as she introduced the presentation from the Planning Commission. Mr. Neal stated the standard for minutes was to include what was actually stated and that this clarification would be included in the record and should address any concerns regarding inaccuracies. Council noted a correction was needed on Page 7 of the April 4 regular meeting minutes that Member Risser voted against Item IX.C. Resolution No. 2023-16; Subdivision and Development Contract for 4404 Valley View Road. Member Risser made a motion, seconded by Member Pierce, to amend Item IX.C. Resolution No. 2023-16; Subdivision and Development Contract for 4404 Valley View Road as stated. Ayes: Agnew, Jackson, Pierce, Risser, Hovland Motion carried. Member Risser made a motion, seconded by Member Pierce, to approve the amended minutes of April 4, 2023, Regular Meeting as corrected. Ayes: Agnew, Jackson, Pierce, Risser, Hovland Motion carried. VII. SPECIAL RECOGNITIONS AND PRESENTATIONS VII.A. EAST EDINA HOUSING FOUNDATION REPORT – RECEIVED East Edina Housing Foundation President Ann Swenson shared the Foundation’s history created 40 years ago to assist with affordable housing. She shared their non-profit status with a board of directors appointed by the HRA to provide original mortgages that accrued funds to be used for second mortgages. She shared backgrounds of all board members that included specific skillsets and said they supported the community with loans and second mortgages for the Come Home to Edina program. Ms. Swenson shared how they purchased a large property in 2018 on 70th and Cahill that resulted in 62 new family units and their work to provide senior housing options through The 4040 senior housing project that provided 118 units for seniors. She spoke about the Come Home to Edina WHLTH program and the goal of the Race and Equity Task Force to provide funding assistance for first generation homebuyers then spoke about how they served as policy advisors for the City for affordable housing. She stated they were a unique organization that supported City policy and initiatives and were still supporting affordable housing after 40 years. Minutes/Edina City Council/April 18, 2023 Page 3 The Council thanked the Foundation then asked questions and provided feedback. VII.B. 2022 TRAFFIC SAFETY SUMMARY REPORT – RECEIVED Traffic Safety Coordinator Bauler shared the 2022 traffic safety requests, statistics, and trends. He outlined the process to submit a request which included review by the Traffic Safety Committee, Transportation Commission, and Council consideration. He outlined the categories which included parking and signage, intersection control, traffic calming, pedestrian safety, and others then outlined the year’s requests in detail. He shared how requests were geolocated which allowed for data collection on specific areas then shared trends that showed the increase in requests in the spring were likely due to returning to pre-pandemic traffic volumes, summer requests focused on the Grandview and West 50th and France areas, and that parking and signage requests were consistent throughout the year. The Council asked questions and provided feedback. VII.C. ARBOR DAY 2023 – PROCLAIMED Member Jackson made a motion, seconded by Member Agnew, to proclaim April 28, 2023, as Arbor Day in the City of Edina. Ayes: Agnew, Jackson, Pierce, Risser, Hovland Motion carried. City Forester Overholt accepted the proclamation and invited the public to the Arbor Day celebration on April 28 at Rosland Park where City staff and volunteers would be planting 50 new trees. The Council asked questions and provided feedback. VIII. REPORTS/RECOMMENDATIONS VIII.A. RESOLUTION NO. 2023-30; ACCEPTING DONATIONS – ADOPTED Member Agnew introduced and moved adoption of Resolution No. 2023-30, accepting donations. Seconded by Member Pierce. Rollcall: Ayes: Agnew, Jackson, Pierce, Risser, Hovland Motion carried. VIII.B. NEW ON-SALE INTOXICATING AND SUNDAY SALE LIQUOR LICENSES FOR THE LYNHALL EDINA, LLC, DBA THE LYNHALL NO. 3945 – APPROVED Clerk Allision stated The Lynhall No. 3945 was located at 3945 Market Street and was currently licensed for On-Sale Wine and 3.2 Percent Malt Liquor. The applicant had applied for an On-Sale Intoxicating and Sunday Sale Liquor licenses which allowed for the sale and service of all liquor types unlike their current licenses. The Lynhall was also recently approved for a sidewalk café permit. Staff reviewed the application and found it complied with Code requirements. A background investigation was completed by the Police Department and was successful and the applicant had completed the required employee alcohol awareness training. She noted no comments were received during the public hearing and recommended approval. Member Jackson made a motion, seconded by Member Pierce, to approve new On-Sale Intoxicating and Sunday Sale Liquor licenses for The Lynhall Edina, LLC, dba The Lynhall No. 3945. Ayes: Agnew, Jackson, Pierce, Risser, Hovland Motion carried. VIII.C. NEW ON-SALE WINE LICENSE AND ON-SALE 3.2 PERCENT MALT LIQUOR LICENSE FOR DELEO BROTHERS PIZZA, LLC – TABLED Mr. Neal stated the applicant, DeLeo Brothers Pizza, LLC, located inside Southdale Mall at 1705 Southdale Center, had applied for an On-Sale Wine license and an On-Sale 3.2 Percent Malt Liquor license that was denied because in 2021, the owner continued to display his liquor license after it was expired and not Minutes/Edina City Council/April 18, 2023 Page 4 renewed and sold alcohol to plain clothes officer without a liquor license. He said the applicant had requested due process regarding denial of the license and recommended a hearing be held at the next Council meeting to allow staff to add context for the denial and the applicant the opportunity to respond. Member Jackson made a motion, seconded by Member Agnew, to table consideration of denial of new On-Sale Wine license and On-Sale 3.2 Percent Malt Liquor license for DeLeo Brothers Pizza, LLC, to allow for a hearing on May 2, 2023. Ayes: Agnew, Jackson, Pierce, Risser, Hovland Motion carried. VIII.D. RESOLUTION NO. 2023-25; ESTABLISHING THE 72ND AND FRANCE 2 TAX INCREMENT FINANCING DISTRICT – ADOPTED Economic Development Manager Neuendorf stated this item pertained to the use of Tax Increment Financing to support redevelopment of 5-acres of vacant land located along the France Avenue commercial corridor. The resolution would establish the TIF District and adopt the TIF Plan for spending new property taxes collected within the boundaries of the District. A private developer proposed to redevelop the site at 7200-7250 France Avenue with two new buildings and reconstruct the property in accordance with the PUD zoning and in a manner that delivered many benefits to the general public. The public benefits would not be possible without the use of tax increment financing. He said the TIF Plan was prepared by the City’s financial advisors with review by the City’s special counsel for TIF redevelopment matters and the Edina Housing and Redevelopment Authority approved this TIF Plan on March 23, 2023. A public hearing was held on April 4, 2023 with additional public input collected online. He summarized the proposed TIF Plan in detail and noted for 10 years the properties had been stagnant and values unchanged with blighted, unsafe buildings that resulted in numerous police calls. He shared history on past projects in the City and amount of TIF provided and noted most projects were privately funded but when TIF was used was justified for public benefit. Mr. Neuendorf outlined the projected tax capacity of $2,048,974 with a budget of $34 million that would likely result in an apartment complex or hotel which would include affordable housing that could be pool for other affordable projects. He shared the included public elements such as a permanent easement and potential for a pedestrian underpass then noted there were no other plans for a north/south roadway and that adequate taxes would be generated to pay down the TIF note. The Council asked questions and provided feedback. Jay Lindgren, Dorsey and Whitney, confirmed if approved the Council retained discretion on land use in Phase II and stated the TIF agreement was clear that no approvals had yet occurred for Phase II. He said the agreement also referred to the proposed use of housing or a hotel and if another use was proposed an amendment to the agreement would be required. City Attorney Kendall said the PUD was already approved for the site and incorporated the PCD zoning which was typical zoning analysis and would be permitted in the PUD. He said the TIF agreement would still require all City approvals be granted before the TIF note for Phase II was available. Community Development Director Teague clarified the uses contemplated and approved were consistent with the office/residential designation within the Comprehensive Plan and included limited retail and office so no Comprehensive Plan amendment would be required. Nick Anhut, Ehlers and Associates, confirmed any proposed pedestrian underpass was a qualified expense subject to public proceedings and would be an approved use of TIF for public infrastructure. Mr. Neuendorf added use of any TIF funds for an underpass would be required to be used within five years. Director of Engineering Millner stated the City would take a lead position in the event of a pedestrian underpass but would partner with Hennepin County in the project and noted they were already aware of this possibility. Minutes/Edina City Council/April 18, 2023 Page 5 Member Jackson introduced and moved adoption of Resolution No. 2023-25, establishing the 72nd and France 2 Tax Increment Financing District. Member Pierce seconded the motion. Roll call: Ayes: Agnew, Jackson, Pierce, Hovland Nays: Risser Motion carried. VIII.E. TAX INCREMENT FINANCING REDEVELOPMENT AGREEMENT WITH 7250 FRANCE GROUP, LLC – APPROVED Mr. Neuendorf stated this item pertained to the potential use of Tax Increment Financing to provide financial support so that the developer could construct the private and public improvements at 7200 and 7250 France Avenue. A Redevelopment Agreement had been prepared based on the Term Sheet reviewed and approved by the HRA on February 16, 2023. He said the developer proposed $162 million in investment for public and private improvements along France Avenue and TIF was requested to cover the $7.55 million gap. He said the site qualified for TIF and the project included $10 million in costs to create public benefit. He said the redeveloped modern facilities would create jobs and add vitality to the Greater Southdale area with a north/south road and bike/pedestrian trail between Gallagher and 72nd, sidewalks as recommended in Southdale Plan, and future Metro Transit bus stops. He spoke about streetscaping and public outdoor spaces then shared the operating pro forma in detail and confirmed the ability to claw back TIF funding if not met. He stated all risk was with the developer then outlined the proposed timeline with Phase I to being summer 2023 and Phase II in 2025. He shared agreement details with safeguards in place to reimburse the developer up to $7.55 million in direct costs plus market interest. The Council asked questions and provided feedback. Member Jackson made a motion, seconded by Member Pierce, to Approve Tax Increment Financing Redevelopment Agreement With 7250 France Group, LLC as presented. Ted Carlson, Orion Investments, explained the stormwater design by Confluence Architects was guided by the Nine Mile Creek Watershed which meant water would be treated and moved downstream and would be in complete compliance with their guidelines. He said the area would include native plants to filter stormwater and would be populated dependent on weather then added their intent was to preserve as many trees as possible for neighborhood screening to the west of the project. Ayes: Agnew, Jackson, Pierce, Hovland Nays: Risser Motion carried. VIII.F. ORDINANCE NO. 2023-04; AMENDING CITY CODE CHAPTER 2, SETTING WATER FEE FOR 2023 – ADOPTED Mr. Neal stated on December 20, 2022, Council adopted Ordinance No. 2022-20, which set the schedule of fees and charges for 2023. The schedule of fees included changes to Chapter 28 - Utilities to implement recommendations from the utility rate study initiated by the City and conducted by the City's financial advisor, Ehlers. The changes were intended to meet the goals of promoting water conservation, pay for reinvestment in the aging utility system and expanding system capacity, and make water and sewer more affordable for lower volume consumers. The rate study included setting a new multifamily water fee of $3.62 for all water consumption; however, this fee was erroneously missed from Ordinance 2022-20. By approving Ordinance 2023-04, multifamily properties would be charged $3.62 per 1,000 gallons of water consumed instead of paying based on the 2022-tiered rate structure. The rate study also recommended all property types to be charged the same rate structure for sanitary sewer, which was based upon water usage. It was the lesser of the winter quarter (November 1 to March 1) or actual usage, but no less than the new minimum of 8,000 gallons, with the fee to be $6.86 per 1,000 gallons of water consumed. The Council asked questions and provided feedback. Minutes/Edina City Council/April 18, 2023 Page 6 Finance Director McAndrews clarified State law required tiered system for multi-family had to be per unit and confirmed this charging was possible within the current software. She said staff would review data after the first year but noted in the previous structure units were charged on a per unit basis and rarely did the City charge beyond year 1 and was ultimately a flat rate charge. Member Agnew moved to grant Second Reading adopting Ordinance No. 2023-04 amending Chapter 2 of the Edina City Code, Section 724 Section A Setting the Multi-Family Water Fee for 2023. Member Jackson seconded the motion. Roll call: Ayes: Agnew, Jackson, Pierce, Risser, Hovland Motion carried. VIII.G. RESOLUTION NO. 2023-20; CERTIFICATE OF APPROPRIATENESS APPEAL, 4630 DREXEL AVENUE – ADOPTED Assistant City Planner Bodeker stated Scott Busyn, the applicant, was appealing denial of an amended COA by the HPC. The proposed COA amendment was for approval of the rebuilt chimney (as the chimney was built today) without the previously approved stone detailing. The HPC heard the amendment request at their January 9, 2023, meeting and denied the amendment. The public hearing comments closed on April 10 and an option for upholding the appeal and approving the request was included. The original certificate of appropriateness was approved September 8, 2020, and at the time the chimney was to remain and was therefore not discussed by the HPC but during construction it was discovered the chimney was not stable and needed to be removed. She said the HPC reviewed the amendment in June 2022 and approved building materials and reconstruction without the exterior gas fireplace insert and with stucco and stone fireplace surround to match the original structure. She stated upon inspection the lack of material detail was discovered and the applicant sought an amendment without the stone detailing, which was denied by the HPC. The Council asked questions and provided feedback. Mr. Kendall confirmed the plan of treatment procedure for construction in the district and standards for mass, sizing, etc., and stated the plan of treatment still applied for maintaining the general historic character of the entire district and just because the chimney was no longer a contributing resource did not mean it was no longer subject to plan of treatment and still required view by the HPC. Member Jackson introduced and moved adoption of Resolution No. 2023-20 to uphold the HPC recommendation denying an amended certificate of appropriateness request to approve the rebuilt chimney without the previously approved stone detailing at 4630 Drexel Avenue. Member Risser seconded the motion. Roll call: Ayes: Agnew, Jackson, Pierce, Risser Nays: Hovland Council took a short recess at 9:05 p.m. VIII.H. SKETCH PLAN FOR 7235 FRANCE AVENUE – REVIEWED Mr. Teague said the City Council was asked to consider a sketch plan review from Enclave Companies for redevelopment of the Macy’s Furniture store site at 7235 France Avenue. The proposal was to tear down the existing structure and construct two 150,000-square foot office buildings (10 and 11 stories) on France Avenue connected by skyway to two 7-story multifamily residential buildings, 230 units in each building, on the east side of the site adjacent to the Promenade. He said the project would include 10% affordable housing units and would require rezoning and an EAW due to project size. He noted the building height of the proposed office buildings were above the 84-foot height guidelines at 150 feet and if allowed should be stepped in further. Minutes/Edina City Council/April 18, 2023 Page 7 Patrick Brama, Enclave, shared more about Enclave and thanked staff for the process to provide developers feedback to refine their vision and direction. He said they served as a multi-faceted development firm and would be the property manager and partial owner with a vested interest in achieving City goals which resulted in better outcomes and partnerships. He spoke about the assets nearby and their intent to create more engagement with the community and access to those assets. Nate Enger, ESG Architects, shared his history with the challenging site then spoke about design experience guidelines similar to the 7250 France site. He shared their goal to build upon existing assets, improve access, and create walkability within a human-scaled project. He said the four building project would be architecturally varied with mixed-uses and be family friendly and incorporate greenery. He outlined the podium projects with portions dedicated to parking and how they intended to break smaller blocks into grid patterns and align appropriate uses with the site. He stated the residential would be on the east side as it would be appropriate along the promenade with offices along France Avenue but still open for pedestrian areas for active dynamic areas. Mr. Enger explained the one layer of parking under the site but the need for a 5-story podium of parking under the office building that would be screened and two levels under the residential area screened as well. He shared the proposed residential quality materials and how the office building would not be built on spec and likely need some sort of tenancy which would include branding requests but would be a high level of sophistication and connect across France Avenue for a pedestrian realm with lots of landscaping. The Council asked questions and provided feedback. IX. COMMISSION CORRESPONDENCE (MINUTES AND ADVISORY COMMUNICATION) - Received IX.A. MINUTES: PARKS AND RECREATION COMMISSION, MARCH 14, 2023 X. MANAGER’S COMMENTS – Received X.A. RAILROAD SAFETY LEGISLATIVE POSITION STATEMENT – APPROVED AS AMENDED Mr. Neal shared that at the April 4, 2023, Edina City Council meeting, Council requested staff draft a legislative position statement on railroad safety and emergency response for consideration and approval. Member Jackson made a motion, seconded by Member Pierce, to approve the proposed Railroad Safety Legislative Position Statement. The Council asked questions and provided feedback. Ayes: Agnew, Jackson, Pierce, Risser, Hovland Motion carried. X.B. FOLLOW-UP FOR PLANNING COMMISSION WORK PLAN ITEM X.C. PREP MEMO APRIL 18, 2023 XI. MAYOR AND COUNCIL COMMENTS – Received XII. ADJOURNMENT Member Jackson made a motion, seconded by Member Agnew, to adjourn the meeting at 11:34 p.m. Ayes: Agnew, Jackson, Pierce, Risser, Hovland Motion carried. Minutes/Edina City Council/April 18, 2023 Page 8 Respectfully submitted, Sharon Allison, City Clerk Minutes approved by Edina City Council, May 2, 2023. James B. Hovland, Mayor Video Copy of the April 18, 2023, meeting available.