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CC SUM 2021 08 09CHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES AUGUST 9, 2021 Mayor Ryan called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman Campion, Councilwoman Schubert , Councilman McDonald, and Councilwoman Rehm. COUNCIL MEMBERS ABSENT: None. STAFF PRESENT: Laurie Hokkanen, City Manager; Kate Aanenson, Community Development Director; Charlie Howley, Director of Public Works/City Engineer; Kelly Strey, Finance Director; and Andrea McDowell-Poehler, City Attorney. PUBLIC PRESENT: Tim Erhart 9611 Meadow Lark Lane Dan Blake Black Cherry Development Martin S chutrop Schutrop Building & Development Corporation Mayor Ryan asked the City Council if there were any modifications or additions to the agenda. After the roll call vote there were no changes to the published agenda. PUBLIC ANNOUNCEMENTS: None. CONSENT AGENDA: Councilman McDonald moved, Councilman Campion seconded that the City Council approve the following consent agenda items pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated July 26, 2021 2. Receive Park & Recreation Commission Minutes dated June 22, 2021 3. Approve Claims Paid 08-09-2021 4. Approve Purchase of Lift Station Pumps for Rehabilitation of Lift Station #2 5. Approve Fireworks Display at Chanhassen High School, September 24, 2021 6. Approve Temporary Modification of the Licensed Premises to serve Beer in Chanhassen Brewing Company Parking Lot Area All voted in favor and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. None. City Council Minutes – August 9, 2021 2 OLD BUSINESS 1. Ordinance 674: Approve a Request to Amend City Code Chapters 1 and 20 to Define "Agritourism"; Create Standards and Criteria for an Agritourism Use as an Interim Use; Allow Agritourism Uses as an Interim Use in the Agricultural Estate District; and Approve an Interim Use Permit for an Agritourism Use on Property Located at 9111 Audubon Road. Community Development Director Aanenson noted the item was discussed at the last City Council meeting and tonight they w ill review some of the changes and believes they are in concurrence. She clarified that the new terminology to be used is “Agritourism” rather than “Agritainment” and is for Interim Use. Tonight the City Council would be approving an ordinance amending City Code sections 1-2 Definition of Agritourism; 20-252 Standards for Agritourism and Interim Use; 20-576 adding Agritourism as an interim use in the A-2 District; and an Interim Use Permit (IUP) for Agritourism use at 9111 Audubon Road. Ms. Aanenson noted they revised the timeframe to 8:00 a.m. until ½ hour after sunset, outdoor music must require a special event permit, the Applicant must maintain driveway easements for emergency access to the property, and items promoting the establishments are permitted but retail space for these items is limited to 300 square feet. The Applicant shall provide safety practices, procedures, and locations. Ms. Aanenson said there are 19 A-2 parcels that meet the minimum size standards of 20 acres, but must be on collector roads so only 6 of those comply, including the Degler Farm. She showed the site plan on screen and walked the City Council through the Interim Use including locations for hayrides, corn/bean maze, vendors, sledding hill, corn pit, and parking. They also added to the interim use an annual report of the activities proposed for the upcoming year and an updated site plan as the City wants to maintain that parking is being met by August 1 of each year. Staff recommends staying with five years on the IUP and the Applicant can always ask for an extension 60 days prior to the expiration date. Ms. Aanenson shared that the Planning Commission voted 3-1 on a motion recommending adoption of the ordinance subject to revisions discussed. Staff believes they have addressed the issues and are ready to approve; there is still a list of things the Applicant must do to advance the IUP itself. Councilman McDonald asked within the definitions of Agritourism did they narrow the field down to what the Degler’s want on their property or is it broad enough for others who may want to have activities on their property? Ms. Aanenson replied they tried to make it broad enough to meet the Degler’s needs and broad enough for someone else to also meet the criteria. Councilman McDonald asked if they would waive fees on an extension of the five-year IUP. Ms. Aanenson noted they do not waive fees and she cannot bind a future City Council to waive the fees. City Council Minutes – August 9, 2021 3 Councilman Campion asked requiring the IUP to be updated every five years, if nothing is changing, why make the Applicant pay to apply again? Ms. Aanenson noted that is what they do for all interim uses and typically an interim use is not found on a piece of property that has a municipal service to it. Usually it is an area in transition so higher and better uses want to come in. Councilman Campion asked in that case would it be a conditional use rather than an interim use? Ms. Aanenson replied a conditional use runs forever with the property and interim use stays at the five years. City Attorney McDowell-Poehler believes this use is not completely consistent with what the Comprehensive Plan has it guided for. Ms. Aa nenson noted that is correct and that that is another reason for the IUP as they are trying to find middle ground to allow them to do something so the interim use is bridging that. Attorney McDowell-Poehler stated this is new to the City and it gives the opportunity for the City to review how this is operating and whether it wants to continue or make changes due to the newness of this type of activity within the City. Councilwoman Rehm’s understanding is if it is a five-year IUP they are looking at $200 per year which seems pretty reasonable. She believes notifying the neighbors would use up that $200 pretty quickly. Mayor Ryan thinks it was shared at the previous meeting that it was very expensive to reapply and asked if that is the case. Ms. Aanenson replied no, it is a nominal fee of $200 per year but she thinks it is less than that because they added in the Code Amendment. She does not have it in front of her right now. City Manager Hokkanen said Staff calculated that it would be about $997 in current dollars, so the average over five years would be about $200 per year. Mayor Ryan asked if in five years the City Council reviews it and nothing has changed, does the Applicant still have to pay the fee? Ms. Aanenson replied they would have to extend the interim use for another five years. Mayor Ryan clarified they would be paying for the next five years. At that time if the City Council decides to change it to a Conditional Use Permit (CUP) would that be a consideration for fees at that time? City Council Minutes – August 9, 2021 4 Ms. Aanenson said yes, although she would want to give it a bit more thought as they would be keeping a farm operation that is inconsistent with the Comprehensive Plan. Mayor Ryan noted in five years if the Council wanted to approach this differently they could evaluate fees at that time. Ms. Aanenson replied in the affirmative. Attorney McDowell-Poehler said if it is something the Council wanted to consider making more permanent, they would need to do a Comprehensive Plan Amendment at that time and rezone the property to allow it to be a Conditiona l Use Permit activity and then it could continue permanently. Mayor Ryan noted something was mentioned about a commercial parking permit administered by the County and at the last meeting restriping was mentioned. She asked to circle back on traffic clarifications. Director of Public Works/City Engineer Howley said regarding the permit from the County, they have a standard permit for access. An intensified use is a trigger for the Applicant to get a commercial driveway permit and they simply have to apply. Mayor Ryan said regarding special event permits, if there is an increase in volume, a traffic and site plan still needs to come before the City. Ms. Aanenson noted once they get the permit, the City would work through the administrative things to get all the permits in place. Mr. Howley said the County is doing a resurfacing project on Audubon and their design staff in- house made some modifications to the formal striping plan and have incorporated that into the project based on what they know about this project. Mayor Ryan asked if there are traffic concerns from residents, does that come to the City or the County. Mr. Howley believes it would be a County response. Councilman Campion moved, Councilman McDonald seconded that the City Council Approve Ordinance 674 to Amend City Code Sections 1-2, 20-252, and 20-576 regarding Agritourism; Approve an Interim Use Permit for an Agritourism Use on Property Located at 9111 Audubon Road; and Adopt the Planning Commission’s Findings of Fact. All voted in favor and the motion carried unanimously with a vote of 5 to 0. PUBLIC HEARINGS: None. City Council Minutes – August 9, 2021 5 NEW BUSINESS: 1. Ordinance 676: Approve a Request to Rezone Property from Agricultural Estate District (A-2) to Single-Family Residential (RSF) and Subdivision of Property into 21 Single-Family Lots with Variances at 775 West 96th Street Ms. Aanenson noted Planning Case #2021-12 Erhart Farm went before Planning Commission on July 20, 2021 and Black Cherry Development is making the request. She showed the subdivision first phase which terminates on a temporary cul-de-sac and noted there was a wetland alteration permit and the site is heavily wooded. The Applicant is requesting the rezoning which is different from the first phase and is straight single-family minimum 15,000 square-foot lots. Staff believes this is the most appropriate zoning district. The subdivision is creating 21 single- family lots and one of the lots is the existing farmstead, extending the sewer and water to the properties, and access via West 96th Street. Ms. Aanenson noted some questions from one of the property owners that thought extension of the street was crossing her property; they did get the documentation that it is unimproved City right -of-way. The property is heavily wooded and that was a concern regarding development, so there is tree preservation plan and the Applicant must increase the tree planting to meet all those requirements and are part of the conditions of approval. Mr. Howley spoke about grading and drainage, and showed onscreen a place where there are currently wetland spoils which must be removed. He noted this is an important cog in the overall Comprehensive Plan for utilities, they will extend water main on the map all the way through, stub it at West 96th Street, and stub it at the end of Eagle Ridge Road, and said the portion of the main running down the spine will be a 12-inch trunk main and the rest will be 8-inch main. There is currently a temporary lift station at the end of Eagle Ridge Road at the temporary cul- de-sac and a new lift station will be constructed and the temporary one will be abandoned. He explained current and future lift station plans within the area. Mr. Howley spoke about storm sewer and noted all collection will be via gravity and goes into a storm water best management practice (BMP); the Applicant still needs to go to the Watershed District and get formal approvals. He spoke about collector roads, local roads, and nature trails and said the plan is to ultimately extend Eagle Ridge Road as the collector all the way to Powers Boulevard, and there will be sidewalks on the streets as that is the City’s standard. Mr. Howley stated in the 2040 Comprehensive Plan it shows the need for another water tower in the City and noted a blue dot on screen for an ideal potential location, although they are a long way from putting in that water tower. He noted after the subdivision goes in, it is a perfect time to redo West 96th Street and they put it on for 2026 although that date could change. Ms. Aanenson noted some neighbors were concerned about streets and the City does not know how that will be platted out. Another question that was asked earlier is whether this would require an Environmental Assessment Worksheet (EAW) and because it is under 250 residential units they will not need to. Ms. Aanenson walked the Council through variances and stated the City Council Minutes – August 9, 2021 6 Planning Commission held a public hearing on July 20, 2021 and voted 6-0 to recommend approval of the project subject to conditions of the Staff report. Mr. Howley shared concerning the future project on West 96th Street, it would be a public project that the City would assess for which is typical. He noted residents there already have sewer and would not be assessed for that, and would not be charged a hook-up for sewer; they would be assessed for the roadway reconstruction and the City will put in storm sewer and water main. He clarified people would be assessed 100% for the water main and 40% for the roadway costs. He estimated about a $15,000 assessment total over 10 years. Residents could hook up to water at their pleasure and there would be a hook-up fee charged. Ms. Aanenson noted Staff is recommending approval. Councilma n McDonald asked regarding the narrow road and it was stated there would be no parking; is that overnight parking the same as it is throughout the City or is that 24 hours/day? Mr. Howley clarified it would be a permanent no parking on one side of the str eet but people could park on the other side of the street. Councilwoman Rehm asked if there will be a sidewalk on that street. Mr. Howley replied the engineering recommendation is to put a sidewalk there because of the reduced street width. He thinks there is flexibility there and he would like to hear feedback. The Councilmembers discussed a sidewalk on the smaller yellow loop road (7-8 houses) on screen. Mayor Ryan asked regarding stormwater management, will the City be able to get access to those backyards? Mr. Howley replied Staff is comfortable with the access and showed it on screen. Mayor Ryan has a real concern regarding construction traffic on West 96th Street and noted it is narrow and not in the best shape. Building out road, curb and gutter, grading, and the many trucks and workers going down the street, she thinks they must be very thoughtful as it will be a problem. Mr. Howley replied this development will attach to two public roadways and the job superintendents and those in charge will let the construction route be known; however , many will go whatever is the quickest way to get there. He does not know that they can say definitively that not many will use Eagle Ridge and noted West 96th Street is probably the shortest way. Mr. Howley hopes they do use West 96th Street and the reason is that Eagle Ridge Road is a brand new road and they do not really want to add more stress to that road. Most construction traffic City Council Minutes – August 9, 2021 7 will be coming in and coming out as a one-way through; one could argue that 50% of the traffic will be on both roads. He clarified they are talking about 21 homes and while West 96th Street is currently narrow, there are not many people that use that street. Mr. Howley stated it is unreasonable and unfeasible to tell them to build a construction road from Powers Boulevard as it is half a mile away. The City is somewhat stuck and must do their best through permitting, inspections, and communication to mitigate the issues that come with construction traffic. Tim Erhart, Applicant , noted the idea is to try to preserve the feeling of trees and forest on the property and that is why they did not propose to put a sidewalk on the road. Mayor Ryan asked what they can expect when it comes back for Final Plat approval. Ms. Aanenson said there is anot her piece on the south that will be added so the Applicant will come back for Preliminary Plat approval. These will be custom-graded lots rather than mass graded which allows for the homeowner to pick the trees they want to save and build their house desig n around them. She clarified if the City Council wants to leave out the sidewalk they would have to strike that condition. Councilwoman Rehm asked the timeline for the project. Dan Blake, Black Cherry Development, said it is unlikely they will get the entire neighborhood built this year, but they would like to get the grading done. He cannot imagine they will get the streets done until next spring. Regarding construction traffic, they do not anticipate things happening at the pace of a Lennar neighborho od where all of the homes are built within a close timeframe. He said it could be 2-3 years from the time the first house is built until the last house is done and noted the market controls a lot of those things. Councilwoman Schubert moved, Councilman McDonald seconded that the City Council approve O rdinance 676 rezoning the development from Agricultural Estate District (A-2) to Single-Family Residential District (RSF); Preliminary Plat with variances for street width, front yard setback (Lot 1, Block1), wetlands setback (Lot 1, Block 1), and street frontages (Lots 3 through 9, Block 1) subject to the conditions of the Staff report eliminating the sidewalk requirement; and adopts the Planning Commission Findings of Fact. All voted in favor and the motion carried unanimously with a vote of 5 to 0. 2. Ordinance 675: Approve a Request to Rezone Property from Agricultural Estate (A2) to Single-Family Residential (RSF); and Resolution 2021-44: Subdivision Approval of Two Lots and One Outlot with Variances for a Private Street and Private Street Width at 9197 Eagle Ridge Road Ms. Aanenson noted this went before the Planning Commission on July 20, 2021 and the Applicant is Schutrop Building and Development Corporation. The subject property is off Eagle City Council Minutes – August 9, 2021 8 Ridge Drive and there is an existing home immediately to the west. The existing site is served by a private drive that serves two homes and by adding the additional home, the request by the Fire Department is that a turnaround be put in place. Public utilities are stubbed but they will have to connect and provide for storm water treatments. Ms. Aanenson walked the City Council through variance findings including private street standards, wetland preservation, trees, and existing retaining wall. The Planning Commission voted 6-0 to approve subject to conditions of the Staff report. Mayor Ryan asked regarding the maintenance of the storm water pond. Mr. Howley replied it will be privately owned and maintained so there will be an agreement and the City will not have to worry about it. Councilman McDonald motioned, Councilwoman Schubert seconded that the City Council approve O rdinance 675 rezoning the property from Agricultural Estate District (A-2) to Single-Family Residential (RSF); approve Resolution 2021-44 approving Preliminary and Final Plat for a two-lot, one outlot subdivision with a variance for the use of a private street and private street width subject to the conditions of the Staff report; and adopts the Planning Commission’s Findings of Fact. All voted in favor and the motion carried unanimously with a vote of 5 to 0. COUNCIL PRESENTATIONS. None. ADMINISTRATIVE PRESENTATIONS. Ms. Hokkanen reminded the City Council about the budget work session on August 16, 2021. CORRESPONDENCE DISCUSSION. 1. 2021 Building Permit Activity July Year To Date Councilman Campion moved, Councilwoman Schubert seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The City Council meeting was adjourned at 8:28 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk