City Council

Maple Grove City Council Meeting minutes May 20, 2024 Call to order Pursuant to call and notice thereof, a regular meeting of the Maple Grove City Council was held at 7:30 p.m. on May 20, 2024 at the Maple Grove Government Center/Public Safety Facility, Hennepin County, Minnesota. Members present were Mayor Mark Steffenson and Councilmembers Judy Hanson, Kristy Barnett, Kristy Janigo and Rachelle Johnson. Absent was none. Present also were Heidi Nelson, City Administrator; Joe Hogeboom, Community and Economic Development Director; Peter Vickerman, Planning Manager; Chris LaBounty, Public Works and Engineering Director; William Abderhalden, Acting Fire Chief; Amy Dietl, City Clerk; and Justin Templin, City Attorney. Mayor Steffenson called the meeting to order at 7:30 p.m. and led the city in the Pledge of Allegiance. Additions or Mayor Steffenson asked if there were any additions and/or deletions to the deletions to the consent agenda to which Heidi Nelson stated agenda the following: Item amended to the agenda None Item amended to the consent agenda 3N. Call for sale of bonds for the 2024 street rehabilitation project and phase 1 of the Community Center remodel expansion project Item added to the agenda None Item removed from the consent agenda for discussion 3L. Public works week proclamation Maple Grove City Council Minutes May 20, 2024 Page 2 Consent items The following consent items were presented for Council’s approval: MINUTES A. Regular meeting – May 6, 2024 B. Work session meeting – May 6, 2024 C. Board of Appeal and Equalization meeting – May 2, 2024 HUMAN RESOURCES ITEMS D. Appointment of internal operations manager Motion to approve the hiring of Zach Lundberg for the internal operations manager position. Subject to the successful completion of all pre-employment requirements and a 12- month probationary period. E. Appointment of deputy city clerk and recruitment approval for administrative assistant I Motion to approve the promotion of Brennan Sorensen to the position of deputy city clerk effective May 21, 2024, subject to a 6-month probationary period. All required screenings have been successfully completed. Motion to authorize staff to begin the recruitment process for the administrative assistant I position. COMMUNITY & ECONOMIC DEVELOPMENT ITEMS F. 7690 Urbandale Lane North conditional use permit - Resolution No. 24-068 Motion to adopt Resolution No. 24-068 approving the 7690 Urbandale Lane North conditional use permit. G. Arbor Lakes Business Park Building 9 planned unit development concept stage plan amendment - Resolution No. 24-067 Maple Grove City Council Minutes May 20, 2024 Page 3 Motion to adopt Resolution No. 24-067 approving the Arbor Lakes Business Park Phase 4 Building 9 planned unit development concept stage plan amendment. H. Evanswood of Maple Grove 3rd Addition final plat - Resolution No. 24-066 Motion to adopted Resolution No. 24-066 approving the Evanswood of Maple Grove 3rd Addition final plat. ENGINEERING ITEMS I. Arbor Lakes Gateway Project No. 23-14 Authorizing condemnation proceedings Resolution No. 24-064 Motion to adopt Resolution No. 24-064 authorizing condemnation proceedings for acquisition of street right-of- way and perpetual drainage and utility easements across property needed for Arbor Lakes Gateway – City Project No. 23-14. J. Eagle and Pike Lakes Internal Load Management Project No. 24-15 Establish project and approve agreement Resolution No. 24-069 Motion to adopt Resolution No. 24-069 establishing Eagle and Pike Lakes Internal Load Management Project No. 24-15 and authorizing the mayor and city clerk to enter into the agreement with the Shingle Creek Watershed Management Commission. K. Valley Forge Lane No parking zone Resolution No. 24-071 Motion to adopt Resolution No. 24-071 designating a no parking zone along the west side of Valley Forge Lane 120 feet to the south and 60 feet north of the UPS sorting facility truck entrance driveway. L. Public works week proclamation This item was removed by Councilmember Johnson for discussion. Maple Grove City Council Minutes May 20, 2024 Page 4 M. Sureties Motion to approve the surety actions. ADMINISTRATIVE ITEMS N. Call for sale of bonds for the 2024 street rehabilitation project and phase 1 of the Community Center remodel expansion project Motion to adopt Resolution No. 24-070 calling for the sale of bonds for the 2024 Street Rehabilitation project and Phase 1 of Community Center Remodel/Expansion project, Resolution No. 24-070 in the par amount of $22,755,000. O. Community Center renovation and expansion phase one award bid package 1 Adopt Resolution No. 24-72 accepting and awarding bids for bid package #1 for the Maple Grove Community Center – arena renovation and expansion and assigning the contracts to RJM Construction in accordance with the construction management at risk agreement. P. Approve claims Motion to approve claims totaling $ 3,629,691.14. Motion by Councilmember Hanson, seconded by Councilmember Barnett, to approve the consent items as amended, removing item 3L (Public works week proclamation). Upon call of the motion by Mayor Steffenson, there were five ayes and no nays. Motion carried. Consideration of The following items were pulled from the consent agenda. items pulled from the agenda Regarding Item 3L (Public works week proclamation), Councilmember Johnson reported May 19 through May 25 would be observed as public works week in the City of Maple Maple Grove City Council Minutes May 20, 2024 Page 5 Grove. She indicated the theme for this year was “advancing quality of life for all”. She thanked all of the public works staff members for their tremendous service to the community. Motion by Councilmember Johnson, seconded by Councilmember Janigo, to proclaim May 19-25, 2024 as public works week in the City of Maple Grove. Upon call of the motion by Mayor Steffenson, there were five ayes and no nays. Motion carried. Special business Open forum There were no open forum issues brought before the Council at this meeting. 2023 Fire Acting Fire Chief Abderhalden explained each October, the prevention Maple Grove Fire Department invites all 4th graders attending poster contest schools located in Maple Grove to participate in a fire safety winner poster contest. The contest is sponsored by the Minnesota State Fire Chief's Association and the National Fire Sprinkler Association. The poster theme needs to include a fire safety message. The theme for 2023 was "Cooking Safety Starts with YOU. Pay attention to fire prevention." A city-wide grand prize winner is selected from all entries and the winner receives a trophy, $25 check, and recognition at a City Council meeting. The grand prize poster is also entered into the statewide contest for additional cash prizes. The winning poster from the statewide competition is published on the cover and inside the spring issue of the Minnesota State Fire Chief's Association magazine, which is distributed to fire departments across the state. The Maple Grove Fire-Rescue Department congratulates each poster contest winner and thanks all 4th graders who participated. He reported Fire Inspector Educator Shannon Burton would be presenting this year’s prize. Fire Inspector Educator Shannon Burton discussed how he visited each elementary school in the city in order to conduct fire safety presentations. He commented further on the fire prevention poster contest and recognized Devanshi Mugunthan as the 2023 fire prevention poster contest winner. He further added that Ms. Mugunthan took second place in the state competition. He presented Ms. Mugunthan with two checks and a round of applause was offered by all in Maple Grove City Council Minutes May 20, 2024 Page 6 attendance. Firefighter oaths Acting Fire Chief Abderhalden introduced the newest paid on- of office call firefighters Rachel Acevedo-Hoffman and Justin Erickson to the City Council. Mayor Steffenson administered the oath of office to Firefighters Rachael Acevedo-Hoffman and Justin Erickson and welcomed them to the Maple Grove Fire Department. A round of applause was offered by all in attendance and badges were pinned on. Public hearings Public hearing Public Works and Engineering Director LaBounty stated Heritage Christian Academy purchased the property south of Easement their main parcel (6914 Nottingham Parkway) and desires to Vacation No. 24- combine two properties into one. The drainage and utility 02 easement will no longer be located on the perimeter of the property and thus is not needed for a public purpose. City staff Resolution No. notified affected property owners, private utility companies, 24-065 and published the public hearing for proposed vacation in the Osseo-Maple Grove Press on May 2 and May 9. Comcast is the only private utility that provided comments and has no concerns with the proposed vacation. Following the opening and closing of the public hearing, it is recommended that council adopt the resolution vacating said drainage and utility easement. Motion by Councilmember Janigo, seconded by Councilmember Barnett, to open the public hearing. Upon call of the motion by Mayor Steffenson, there were five ayes and no nays. Motion carried. Mayor Steffenson opened the public hearing at 7:46 p.m. and asked if anyone would like to address this issue. No public testimony was offered. Motion by Councilmember Johnson, seconded by Councilmember Hanson, to close the public hearing at 7:47 p.m. Upon call of the motion by Mayor Steffenson, there were five ayes and no nays. Motion carried. Maple Grove City Council Minutes May 20, 2024 Page 7 Motion by Councilmember Johnson, seconded by Councilmember Hanson, to adopt Resolution No. 24-065 vacating certain easements located in the City of Maple Grove, County of Hennepin, State of Minnesota. Upon call of the motion by Mayor Steffenson, there were five ayes and no nays. Motion carried. Community and economic development items Hennessey Grove Planning Manager Vickerman explained the applicant is planned unit requesting a planned unit development concept stage plan, development development stage plan, rezoning, preliminary and final plat concept stage for the purpose of developing a 14-lot residential subdivision plan, on two adjacent parcels located in the southwest portion of development the city, near Maple Grove Parkway and 68th Avenue North. stage plan, The combined 9.8-acre site borders the Cedarcrest rezoning, neighborhood to the north, and the Cedar Estates preliminary and neighborhood to the east. A proposed extension of Kimberly final plat Lane North will connect these neighborhoods to 68th Avenue North. Staff commented on the request further and reported the Planning Commission recommends approval. Councilmember Johnson asked if the DNR and Hennepin County reviewed the wetland proposal. Planning Manager Vickerman explained planned impacts would be sent to these groups for review, but because no impacts to the wetlands were proposed, the plans were not sent to the DNR or Hennepin County. Community & Economic Development Director Joe Hogeboom later corrected the record that the wetland plans were sent to these groups to confirm wetland boundaries. Councilmember Janigo questioned what happens to a property when a great deal of trees are removed and replaced with homes and impervious surfaces. Planning Manager Vickerman reported the drainage for this site would stay at the rate and volume that it was previously at. He stated water would be routed to the storm ponds. He believed the drainage would be improved for this property because it was properly engineered. Maple Grove City Council Minutes May 20, 2024 Page 8 Councilmember Janigo inquired who would be responsible if the drainage became worse for the neighboring properties. Planning Manager Vickerman explained this would depend on the situation and if the grading was found to be done incorrectly. He indicated the city would work with the property owners to resolve the situation. Public Works and Engineering Director LaBounty discussed how staff worked to address these concerns early in the grading process by thoroughly validating and ensuring the site matches the plans. He stated this was private property and a private development. He noted the city was involved with the project only through the development of the infrastructure. Paul Tabone, Centra Homes, thanked staff for the thorough presentation. He explained he met with staff at the end of winter to discuss the approvals he would need. He reported the proposed development met all city standards. He reiterated that all wetlands were being preserved on the property. He commented on the landscape plan that was completed for the site and stated he would work to preserve as many trees as possible, especially along the border. He estimated project grading would begin in the summer of 2024 if supported by the City Council. Councilmember Hanson questioned if there were previous plans brought to the city for this property. Mr. Tabone stated the previous project was brought to the city in 2014. Councilmember Hanson commented on how the neighbors were concerned with the proposed development. Mr. Tabone explained he reached out to all property owners on the north side, but stated he had not held a neighborhood meeting. He commented further on how he would be moving this project forward within the confines of city code. Councilmember Hanson discussed how the neighbors would be impacted by the tree loss. She asked that the developer keep as many trees as possible, even if they are not high quality in order to maintain the screening that was in place for the existing property owners. Mr. Tabone commented further on the tree inventory and noted the mature trees along the north property line would be preserved. Maple Grove City Council Minutes May 20, 2024 Page 9 Councilmember Hanson requested the applicant speak to the price point for these homes. Mr. Tabone indicated the homes would begin at $600,000 to $650,000. He explained the homes do not include finished basements so if the homeowner chose to complete the basement the home value could increase another $50,000 to $100,000. He was of the opinion he would be delivering a home product that was in keeping with the surrounding neighborhood. Councilmember Janigo asked for further information on the home product that would be built and what the target market may be. Mr. Tabone reviewed architectural renderings for the homes with the Council stating the homes would have four or five bedrooms and 2.5 to 3-4 baths with three or four car garages. He indicated the homes would start at 2,596 square feet and would go up to 3,993 square feet. He reported the target market was for move up buyers. He stated Maple Grove was a very desirable place to live and these homes would be a nice addition to the neighborhood. Councilmember Johnson inquired if these homes would be built to suit or would they be designed by the developer and sold off. Mr. Tabone stated typically he built a handful of specs at a time and they would then be released for sale. He indicated there would be some diversification in the elevations between the homes within the development. Councilmember Janigo questioned how many trees would be preserved on the site. Mr. Tabone reported he did not have a number. He explained once the site was ready for grading, silt fence would be installed and would double as tree fencing. He noted the preliminary landscape plan shows clusters of trees that would be saved. He stated he would do the best he could to preserve the trees along the easterly property line as well. Councilmember Janigo encouraged the developer to not encroach on the tree root canopies. Mr. Tabone reviewed the landscape plan in further detail with the Council. Councilmember Janigo stated it appears the homes on the northerly side would have less screening than the other homes. Mr. Tabone indicated there were not a whole lot of Maple Grove City Council Minutes May 20, 2024 Page 10 trees in this area that could be preserved. Heather Latterell, 17347 69th Avenue North, reported she lived behind the north lots. She indicated there were significant trees between the two properties at this time. She expressed concern with the fact she had no control over how this property would be graded and if she would have water problems in the future. She discussed how the new development would be graded, trees would be removed and a road would be installed, all of which would impact her property. She feared how the new grade of this property could adversely impact her property. She encouraged the developer to save as many trees as possible along the north property line. Lastly, she expressed concern with the fact the proposed homes do not closely reflect the neighboring homes. Cindy Leisey, 6926 Holly Lane North, reported she was a 40- year resident of Maple Grove. She noted when she built her home in the Cedar Crest neighborhood, she was drawn to the tree line and wildlife. She indicated she received no notification from the developer and she would have appreciated some kind of notification. She stated she called the builder to try and get some information on the proposed development and she was told the homes would begin at the $650,000 price point. She was concerned with the proposed renderings for these homes because they do not look like the homes in her neighborhood. She was concerned the developer may not honor the $650,000 price point when homes are built this fall. She did not believe there has been honest communication from the start of this project, which left her with an uneasy feeling. Betsy Young, 17251 68th Place North, thanked the Council for listening and taking comments from the public. She explained she lived next to proposed Lot 11 and she was suggesting the plans be rotated. She reported she saw no evidence of trees being saved by the developer. She stated she was also concerned that the trees on her lot could be damaged by construction equipment. She noted it was not true that the neighbors were communicated with. She was of the opinion the developer’s efforts were disingenuous. She requested further information regarding the city’s project point system was addressed. Planning Manager Vickerman explained the project point system was explained within the city’s zoning Maple Grove City Council Minutes May 20, 2024 Page 11 code, Section 36.61(C1). Ms. Young stated the developer has stated these homes would start at $600,000. She explained after visiting their website, she found there are zero houses currently being offered for sale in any developments in the metro area over $600,000. She commented there was only one plan that had a home with a value of $550,000. She stated the lack of honesty from the developer was very concerning to her. Councilmember Hanson indicated the price of these homes may be higher in Maple Grove, due to the location. Ms. Young expressed concern with the fact $300,000 and $400,000 homes may be built adjacent to her neighborhood. She wanted to know specifically what house plans will be built for this development because she did not want her property value be adversely impacted. She commented her other concern had to do with drainage. Councilmember Hanson spoke to how the developer would be improving the drainage by properly engineering the site. Public Works and Engineering Director LaBounty discussed how the plans show added storm sewer that would be routed to the storm water pond, along with emergency overflow that would help to convey the water away from the neighboring properties. He indicated additional storm sewer basins would be added to the west side of the property which would assist with managing the rate and volume of water on the site. Mr. Tabone explained he heard the concerns regarding stormwater and he believed this had been adequately addressed by staff. He reiterated that he would not be impacting any of the wetlands. He reported the price points for the homes would be market driven and discussed how homes in Maple Grove commanded a higher price point. He commented on how the market may change and stated the homes were forecasted to be in the range of $600,000. He stated if the trees were not in his property, they would remain in place and he would work to save as many trees as possible along the borders. Councilmember Barnett stated after listening to the residents, Maple Grove City Council Minutes May 20, 2024 Page 12 attending the Planning Commission meeting, and reading emails she had a few thoughts. She explained she liked this development because it would bring a needed type of housing to the market. She anticipated this development could have a lot more houses in it, on smaller lots with a lower price point. She indicated these would be pretty large lots and she was going to choose to believe the developer when he said he would work to preserve the trees. She stated this property would not be cheap and there would be a base price point for the homes and she would choose to believe this price point was as the developer indicated. However, she also understood in the end, the market would dictate the price point for these homes. She indicated it was not up to the city dictate price points for homes. She stated she appreciated the concerns that were raised, and noted the city would work with the homeowners who would be impacted by the easements to ensure they were made whole. In the end, she believed this development would be good for the city. Councilmember Janigo indicated this development was too much for her. She explained there was ample time for the developer to engage with the neighbors and this did not occur. She supported this item going back to a Council work session for further discussion on neighborhood outreach for infill developments. She supported infill developments being held to the same standards as greenfield developments, or even a higher standard due to the impact to the neighbors. While she understood city code requirements were being met, she did not support this project moving forward. Councilmember Barnett disagreed with Councilmember Janigo. She commented while policy changes could be made, she noted the developer had no obligation to contact the neighbors and the owner of the property has every right to sell the property for development. She explained the neighbors’ homes were once on vacant property until the land was purchased and the homes were built. She stated this property owner has the same right to sell the property and develop. She indicated the development that was before the Council was the type of project the City Council has been looking for. Motion by Councilmember Barnett, seconded by Councilmember Johnson, to direct the city attorney to draft a Maple Grove City Council Minutes May 20, 2024 Page 13 resolution and a planned unit development agreement approving the Hennessey Grove planned unit development concept stage plan, development stage plan, preliminary and final plat subject to: 1. Any grading work taking place on neighboring private properties will be limited to the boundaries of the existing drainage and utility easement. Areas impacted by this grading work will be restored, by the developer, as closely as possible to its original condition. Including replacing sod, irrigation, fencing, trees, shrubs, etc. 2. The applicant addressing to the satisfaction of the city any remaining applicable comments contained in the memorandums from: a. The Engineering Department dated April 19, 2024 b. The Parks & Recreation Department dated May 7, 2024. Upon call of the motion by Mayor Steffenson, there were four ayes and one nay (Councilmember Janigo opposed). Motion carried. Motion by Councilmember Hanson, seconded by Councilmember Barnett, to direct the city attorney to draft an ordinance approving the rezoning from R-A (Single-Family Agricultural District) to R-2 PUD (Single Family Residential District -Planned Unit Development). The applicant shall acknowledge that park dedication requirements are based on staff review and recommendation to the Park and Recreation Board and their subsequent board action. Board meetings are held on the third Thursday of each month. Mayor Steffenson commented on how the grading plans would have to meet specific drainage requirements, which will assist in taking care of this property, given the fact it was typically wet. He stated he would have to agree with Councilmember Barnett. He understood infill developments were difficult because of the impact they had on the neighboring property Maple Grove City Council Minutes May 20, 2024 Page 14 owners, but noted this entire area has changed dramatically over the past 15 to 20 years. Upon call of the motion by Mayor Steffenson, there were four ayes and one nay (Councilmember Janigo opposed). Motion carried. Zoning ordinance Planning Manager Vickerman stated in 2023 cannabis text amendment businesses were legalized in Minnesota with retail sales – cannabis expected to begin in the first quarter of 2025. This action has a number of provisions that need to be addressed in city code:  Identified a number of different cannabis-related business types that would be licensed by the state  Required municipalities to properly zone for these types of businesses  Allowed cities to limit the number of businesses with a retail endorsement to one per 12,500 residents  Allowed for buffers around specific uses for cannabis businesses with a retail endorsement, i.e., where the public may purchase cannabis directly  Allowed cities to create a registration system for certain cannabis businesses  Addressed signage for cannabis businesses Planning Manager Vickerman commented on the proposed ordinance text amendment in further detail and explained the Planning Commission reviewed this item at the May 13, 2024 meeting and recommended approval on a 5-2 vote. The two Planning Commissioners who voted against the proposal recognized the need to have these zoning requirements, and didn’t object to how cannabis businesses were being zoned, but objected to the State of Minnesota requiring the City of Maple Grove to accept cannabis businesses in the city. Councilmember Hanson thanked staff for their efforts on this ordinance amendment. She understood cities would not have the ability to license these uses. She commented on how these uses would be dictated by state statute. She appreciated the fact the city would be ahead of the game when it came to the use and sale of cannabis. Councilmember Janigo commented only six retail businesses Maple Grove City Council Minutes May 20, 2024 Page 15 could be located in the City of Maple Grove. Councilmember Barnett questioned what the state used to determine the city’s official population. Planning Manager Vickerman presumed the state used the 2020 census information. Councilmember Johnson anticipated this ordinance would be a moving target until everything gets rolled out and the city could determine what works and what does not. Motion by Councilmember Johnson, seconded by Councilmember Janigo, to direct the city attorney to draft an ordinance amending city code regarding cannabis businesses. Upon call of the motion by Mayor Steffenson, there were five ayes and no nays. Motion carried. Regulation and City Clerk Dietl explained in 2023, Minnesota became the 23rd retail registration state to legalize recreational cannabis use for adults 21 and of cannabis older. Retail sales, however, have been delayed until 2025 to products provide time for the establishment of the new state office in charge of regulating cannabis. It is unknown when in 2025 the Ordinance No. Minnesota Office of Cannabis Management (OCM) will begin 24-06 issuing licenses for retail cannabis products. City staff is proposing new city code language to be ready to address the regulation and retail registration of cannabis products as required by the city whenever the OCM is ready to begin issuing these licenses. As part of the licensing process, upon receipt of an application for a cannabis license, the OCM will ask the city – in which the business will be located - to provide input on the application. Within 30 days, the city will certify to the state whether the proposed business complies with local zoning ordinance and applicable state fire and building code. Another provision of the new law states that cities may, by ordinance, limit the number of licensed cannabis retailers, cannabis mezzo businesses with a retail operations endorsement, and cannabis micro businesses with a retail operations endorsement to one registration for every 12,500 residents. Staff commented on the ordinance in further detail and recommended approval. Councilmember Hanson thanked staff for bringing this ordinance before the Council. She appreciated the fact staff Maple Grove City Council Minutes May 20, 2024 Page 16 had addressed using products in city parks. Motion by Councilmember Hanson, seconded by Councilmember Barnett, to adopt Ordinance No. 24-06 amending Chapter 10, Article II, Sections 10-40 through Section 10-48 to address regulation and retail registration of cannabis products. Upon call of the motion by Mayor Steffenson, there were five ayes and no nays. Motion carried. Motion by Councilmember Hanson, seconded by Councilmember Johnson, to authorize the publication of the ordinance summary of Ordinance No. 24-06. Upon call of the motion by Mayor Steffenson, there were five ayes and no nays. Motion carried. Report on Community and Economic Development Director Hogeboom upcoming updated the Council regarding the following: community and economic  The Planning Commission would meet next on Tuesday, development May 28. items Engineering- public works items Report on Public Works and Engineering Director LaBounty updated the upcoming Council regarding the following: engineering  The city hosted a successful drop off day last week. items  Staff thanked the City Council for recognizing the Public Works Department and for their efforts on behalf of the community. Administration items Report on City Administrator Nelson explained that the Council has her upcoming Monday report if there are any questions. She reported city administration offices would be closed on Monday, May 27 for Memorial Day. items She explained Beyond the Yellow Ribbon would be hosting a Memorial Day celebration at Central Park on May 27 at 12 p.m. Maple Grove City Council Minutes May 20, 2024 Page 17 She indicated the Council would be holding a joint work session with the Park Board on Monday, June 3. Items added to None the agenda Adjournment Motion by Councilmember Janigo, seconded by Councilmember Barnett, to adjourn to the regular City Council meeting on June 3, 2024 at 7:30 p.m. Upon call of the motion by Mayor Steffenson, there were five ayes and no nays. Motion carried. The meeting was adjourned at 9:03 p.m. by Mayor Steffenson. Respectfully submitted, Heidi Nelson City Administrator