City Council

ANDOVER CITY COUNCIL WORKSHOP MEETING – JANUARY 25, 2022 MINUTES The Workshop Meeting of the Andover City Council was called to order by Mayor Sheri Bukkila, January 25, 2022 at 6:00 p.m., at the Andover City Hall, 1685 Crosstown Blvd NW, Andover, Minnesota. Councilmembers present remotely: Valerie Holthus, Jamie Barthel, Ted Butler, and Randy Nelson Councilmembers absent: None Also present: City Administrator Jim Dickinson City Engineer/Public Works Director David Berkowitz City Planner Joe Janish Others DISCUSS MULTI-FAMILY PROPOSAL AT CROSSTOWN BLVD AND HANSON The City Council is requested to consider a potential senior multi-housing development at Crosstown Boulevard and Hanson. Mr. Janish reviewed the concerns of the Council at the previous meeting: the height of four stories and the loss of commercial space. Mr. Janish explained the developer has incorporated commercial into their building. Jack Collins, Executive Vice President of SilverCrest, came forward and thanked the Council for hearing their updated proposal. Michael F. Gould, President of SilverCrest, came forward and explained the mission of their business. He noted he would like to build a residence in Andover and become part of the community. Rich Lee, Premier Commercial Real Estate, a commercial broker stated the market cannot Andover City Council Workshop Meeting Minutes – January 25, 2022 Page 2 support a chain business. He noted there is interest from smaller businesses but doesn’t believe they could afford the rent. He explained a restaurant could take up most of the square footage and if they couldn’t get a restaurant, it could accommodate 4-5 smaller businesses focusing on professional services. Mr. Gould stated the property is planned to have a right-in, right-out access which limits commercial properties. Mr. Dickinson displayed a drawing of the proposal and identified access points and parking. Mr. Gould stated a restaurant will work, but it just needs to be the right kind of restaurant that would close around 9 p.m. Councilmember Butler stated his concern was the complete shift from commercial to residential. He stated he likes the commercial aspect presented but does not want to regret giving up on commercial at this location. Mr. Lee stated the land has been developable for quite a while and hasn’t received much interest. He noted that it could be sitting vacant for several more years. Mayor Bukkila stated the cost of the parcel was higher than market rate. Mr. Lee stated the City has the opportunity to have both commercial and residential. Mr. Collins stated the wellness center is open to the public and includes a pool, fitness area, classes, locker rooms, and therapy space. He stated the bistro is open to the public as well. Mr. Collins stated they will employ around 70 full-time employees. Councilmember Holthus asked for an explanation of the difference between the wellness center and what the YMCA can offer. Mr. Collins stated the two facilities are very different. He pointed out their facility in Maple Grove that is near the community center and a Lifetime Fitness. He stated seniors couldn’t wait to use the new facility because they are with people their own age and feel more comfortable. Mr. Gould stated the pool temperature is significantly warmer. Mr. Collins stated staff are available to help acclimate seniors to the wellness center. Councilmember Nelson stated Andover is going to need more commercial as it grows. He also has a concern with the height of the building. He stated there can be more commercial in the area. Councilmember Nelson stated it will get a lot of activity from the Community Center and schools. Andover City Council Workshop Meeting Minutes – January 25, 2022 Page 3 Mr. Collins stated Andover is also in demand for senior living. He understands there is a need for commercial and their company is trying to solve both demands. Mr. Lee stated he agrees it is a good corner, but the density is not high enough in the area. He stated most commercial properties want to be further south by Bunker Lake Blvd. Mr. Dickinson noted poor access makes it difficult for commercial properties. He stated integrating commercial into the building rather than as a standalone helps with flow and access. Councilmember Barthel stated he understands it is not feasible for a commercial development at this time. He stated the property does not need to be developed in 2022. He stated it is the City’s long-range goal to make it commercial. Councilmember Barthel stated the community is asking for commercial. He does not believe the neighborhood would approve of a four-story building and he would receive phone calls from them. Mr. Lee stated the land is not too expensive, but in his professional opinion, it is suited for a combination of residential and commercial. Mr. Collins noted that SilverCrest works with the community when developing a project. Mr. Gould stated they would make a presentation to the community and share their vision. Mr. Lee stated they would look at a restaurant first and if that didn’t work, they would search for smaller commercial businesses. Councilmember Butler stated he is warmer to this proposal than the one first one. He is pleased to hear a restaurant is a priority. He understands bringing in rooftops with commercial helps make it more successful. Councilmember Butler would like to hear input from the public and asked how SilverCrest would go about gathering public input. Mr. Collins stated they would hold a public meeting and make a presentation promoting their facility. Mr. Gould stated they would attend a public hearing to hear and address concerns. Councilmember Butler would like to cast a wider net than the required 350 feet of the development. Councilmember Holthus stated she likes the addition of commercial and she has seen the for-sale sign on the lot for almost 30 years. She stated she is ready for something to happen on that corner. She would like to have a neighborhood meeting to hear input from the residents. Councilmember Nelson doesn’t think 8,000 to 13,000 square feet of commercial is enough. He knows that residents aren’t in favor of a four-story building. He would like to wait for a proposal Andover City Council Workshop Meeting Minutes – January 25, 2022 Page 4 with more commercial. Mayor Bukkila stated she likes the concept and seniors like a walkable community. She thinks the proposal adds a lot to the residents in the community. Mayor Bukkila stated the Council is pressured to do high density residential and the 55+ is a preferred age group to target. She stated she likes the commercial aspect but doesn’t know if the community will support four stories. Mayor Bukkila would like to see the transition from residential to high-density residential. Mr. Gould stated they can scale things down if needed and will involve the neighborhood. Councilmember Holthus asked if Arbor Oaks is fully occupied. Mr. Dickinson stated the assisted living is full, market rate is full, and Grey Oaks does not appear to have any rentals available. Mr. Collins stated Andover has a high demand for senior living. Councilmember Butler stated he has concerns about the building height, but understands it gets more units with better amenities. He asked if they could show a depiction of what residents would see out of their backyards. Mr. Gould stated he would like to take them on a tour of their Maple Grove site. Mr. Berkowitz requested they look at an outdoor pickleball facility. Mr. Berkowitz asked if they could ghost out additional commercial on the property so if the demand were there, they could expand. Mr. Gould stated it would be difficult to build additional commercial on the site. Mayor Bukkila polled the Council on who was an absolutely against and for the project. Councilmember Barthel was against the project. Councilmember Holthus is for the project, and the rest are undecided but not a definite no. Mr. Dickinson stated the next step is for the developer to conduct a neighborhood meeting. DISCUSS PINE HILLS NORTH AND PINE HILLS SOUTH PARKING LOT PAVING/22- 18 The City Council is requested to discuss the design of the Pine Hills North and Pine Hills South parking lots and provide direction to staff on the concrete ribbon curb. Mr. Berkowitz noted the Pine Hills parking lot will encroach into the right-of-way. Mr. Berkowitz stated they typically setback park parking lots 20 feet based on the City’s commercial standards. Mr. Janish stated there is an exception in the Code that allows Council to encroach into the right of way through a Consent Agenda item. The Council reached consensus to allow the encroachment. Andover City Council Workshop Meeting Minutes – January 25, 2022 Page 5 Mr. Berkowitz stated parks have varied from concrete ribbon curb and does not see a need for ribbon curb at these parks. He stated the concrete curb will cost around $120,000 and the total project cost is $467,000. Councilmember Nelson asked if it is easier to plow with a curb. Mr. Berkowitz stated they don’t plow this lot in the winter, but the curb does help. Mayor Bukkila stated the road leading into the parking lot may break down prematurely due to people driving on the grass. Mr. Berkowitz suggested installing concrete curb on the driveway and not in the parking lot. Councilmember Barthel stated he supports concrete curb for the drive. The Council reached consensus to install concrete curb in the road leading to the parking lot and in the drive aisles. DISCUSS VETERANS MEMORIAL CEREMONY The City Council is requested discuss a dedication ceremony for the Veterans Memorial. Mr. Berkowitz stated the planning committee has been working out the details of the ceremony and has selected Saturday, May 21 or Saturday, June 18. The Council reached consensus to hold the ceremony on Saturday, May 21 on Armed Forces Day. Mr. Berkowitz stated the committee would like the ceremony at the Memorial and to close down Veterans Memorial Boulevard. They would like to have food trucks and a social hour afterwards in the vehicle maintenance facility with City funds or donations. Mayor Bukkila stated an indoor reception could include cake, coffee, and lemonade. She stated the families of the veterans could display a picture and a story. The Council reached consensus to limit the reception to food trucks, cake, coffee, and lemonade. Mr. Berkowitz stated the committee will work out the rest of the details. Mr. Berkowitz stated they have had trouble selling plaques. He asked how hard staff should pursue donations to expand the memorial with statues. Mayor Bukkila stated the community event can be a fundraiser for the site. She recommended advertising in the Community Center. Councilmember Holthus stated it would be nice to have a parking lot. Councilmember Barthel Andover City Council Workshop Meeting Minutes – January 25, 2022 Page 6 agreed. Mr. Berkowitz stated there won’t be parking available. Councilmember Barthel stated it would be nice to have three or four parking spaces. Councilmember Barthel stated he plans to write an article for the newsletter about Veterans Memorial. He asked for additional details about the ceremony and he can include it in the article. Mr. Berkowitz asked the Council to commit to a budget. The Council reached consensus to allocate up to $5000 to the event. DISCUSS MARTIN STREET NW ACCESS OFF BUNKER LAKE BOULEVARD NW The City Council is requested to discuss the proposed Martin Street NW/Walmart access off Bunker Lake Boulevard NW. Mr. Berkowitz stated the County has come up with a proposal to improve the entrance. He stated the County is planning on moving the median two feet and will do a full mill and overlay of the section of improvement. The cost of the project is estimated at $200,000 and the County has asked the City to contribute to the project. Mr. Berkowitz stated staff are recommending 25% of the project cost up to a max of $50,000. Mr. Berkowitz outlined the improvements the County has planned and displayed a drawing. Mr. Dickinson stated the Met Council has allocated $119,000 to the City and the contribution can come out of those funds. The Council reached consensus to pay 25% of the cost up to $50,000. RECESS & RECONVENE Mayor Bukkila recessed the meeting at 7:35 p.m. The meeting was reconvened at 7:45 pm. DISCUSS PRELIMINARY PLAT PROCESS The City Council is requested to discuss the preliminary plat process and the amount of time it takes for staff to get plan reviews done in a timely fashion. Mr. Berkowitz explained the preliminary plat process has evolved over time. He stated staff review it down to the minute details and the pressure to get reviews done is intense. City staff is asking Council to scale down the number of required items and have them be conditional during the preliminary plat review. Mr. Berkowitz stated the large, important items will be completed and staff will make sure the details are resolved before the plans are stamped approved. Andover City Council Workshop Meeting Minutes – January 25, 2022 Page 7 Mr. Dickinson stated many purchase agreements are tied to the preliminary plat approval. Mr. Berkowitz stated the City is developer-friendly and move as fast as they can. Mr. Janish stated staff will continue make sure all the conditions are met, however, the Planning and Zoning Commission and the City Council will see a longer list of conditions. Mr. Janish explained the preliminary plat process:  Applicant submits the application  The Andover Review Committee has 14 days to make comments on the application. Staff compiles the comments and sends back to the applicant. 14 days. City Code states the list is not completed until all the requirements are met.  The City and the applicant exchange comments and solutions for 60 days and can have 4- 6 rounds before the majority of comments are addressed. The 60 days can be extended to 120 days.  When majority of items are addressed, a public hearing is scheduled with the Planning Commission and then placed on the next Council meeting.  Once Council acts on the preliminary plat, the timelines are not in effect, and it falls under an administrative process. Staff are recommending primary items to be required under the 15-day review and the remainder as conditional items:  Preliminary plat info  Geological technical report  Stormwater report Mr. Janish stated if core items are missing, the application goes back to applicant as incomplete. He explained if all items are present, then the comment review begins giving staff at least two reviews until a public hearing. Mr. Berkowitz stated most other cities use this method. He stated Andover’s sketch plan is similar to other cities’ preliminary plat. Councilmember Holthus asked what can be done at the sketch plan phase to make it more expedient. Mr. Berkowitz stated it depends on the scope of the project. Mr. Janish stated a sketch plan is required for a PUD. The preliminary plat allows the developer to begin grading. Mr. Dickinson stated the preliminary plat gives the developer a legal right over the property. He noted that Council will see an increase in staff comments. He stated there are multiple Andover City Council Workshop Meeting Minutes – January 25, 2022 Page 8 developments coming through which are driving this change. Mr. Dickinson stated this method will protect the City. Mr. Janish stated the preliminary plat checklist is an internal document. If Council has an issue with seeing longer lists of conditional items, then this isn’t the route to go. Mayor Bukkila asked if they can move forward with this process and if there are issues, add items to back to the core. Mr. Berkowitz stated Council can add items to the core if needed. Councilmember Butler asked if they could add items on a case-by-case basis and Mr. Berkowitz replied, absolutely. Mr. Berkowitz stated the sketch plan helps the process move along faster. Councilmember Holthus stated Council can see up to 75 comments. Mr. Berkowitz stated Council has seen that many comments in the past with a project that needed to be pushed through. The Council reached consensus to move forward with the proposed process. DISCUSS AMERICAN RESCUE PLAN ACT FUNDING The City Council is requested to discuss how to apply funds from the American Rescue Plan Act (ARPA) in the amount of $3.6 million. Mr. Dickinson provided a proposal for how to use the money. He explained the Federal Government proposed a standard allowance for cities getting less than $10 million. The City completed the lost revenue computation for the City and the amount is $1.2 million. Mr. Dickinson stated the City will be using their auditor to audit the funds. He noted the City has more flexibility with accepting the standard allocation and stated the items where it can be used. He announced road building and maintenance has been added. The funds must be spent by the end of 2024. Mr. Dickinson noted transparency is possible with the standard allocation. Mr. Dickinson stated the Met Council is looking at simpler ways to allocate their funds and they have distributed funds to the City in the amount of $119,000 to go towards roads. The Council reached consensus to accept the standard allocation from ARPA. PRE-AUDIT DECEMBER 2021 COMMUNITY CENTER UPDATE The City Council is requested to review the Andover Community Center (ACC) budget summary report for 2021. Mr. Dickinson stated the ACC is at 103% of revenue and 80% on Andover City Council Workshop Meeting Minutes – January 25, 2022 Page 9 budgeted expenses. He stated adequate staffing has been a challenge, so they were below in personnel costs. He noted staff are overworked and cannot maintain this workload. Mr. Dickinson stated he is looking for 1.0 FTE to be added to the Community Center. Mayor Bukkila asked if they are replacing part-time position and adding an FTE. Mr. Dickinson stated that is his plan. The Council reached consensus to add a 1.0 FTE to the ACC. PRE-AUDIT DECEMBER 2021 GENERAL FUND BUDGET PROGRESS REPORT The City Council is requested to review the pre-audit General Fund Progress Report. Mr. Dickinson stated revenue is at 104% and expenditures is at 93%. He pointed out a few areas that were under budget and over budget and explained the difference. OTHER ITEMS Mayor Bukkila asked when the City is going to start actively planning for Emergency Management. Mr. Dickinson stated staff is working with Anoka County Emergency Management to start getting National Incident Management System (NIMS) training set up for staff and Councilmembers. Mayor Bukkila asked if they were working with the Department of Homeland Security and risk assessments. Mr. Dickinson stated he wished he had the time. Mayor Bukkila explained the NIMS training is mostly online and there are courses for elected officials in addition to staff. Councilmember Butler stated he would like to discuss the Parks and Open Space Commissions’ roles and names to see if they should be adjusted. Mayor Bukkila stated staff can review the Commissions’ roles and add it to a workshop meeting. Councilmember Butler would like to shift how the land was acquired to how does the public use it. ADJOURNMENT Motion by Barthel, seconded by Nelson, to adjourn the meeting at 8:32 p.m. Motion carried unanimously. Respectfully submitted, Andover City Council Workshop Meeting Minutes – January 25, 2022 Page 10 Shari Kunza, Recording Secretary TimeSaver Off Site Secretarial, Inc.