City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, DECEMBER 19, 2023 IN CITY HALL 1. Mayor Taylor called the meeting to order at 7:00 p.m. 2. Mayor Taylor led the Pledge of Allegiance to the Flag and Melanie D. Ryska, City Clerk, gave the Invocation. 3. Council Members present at roll call: Deanna Koski, Michael V. Radtke, Jr., Maria G. Schmidt, Liz Sierawski, Michael C. Taylor, Henry Yanez, Barbara A. Ziarko Also Present: Mark Vanderpool, City Manager; Marc D. Kaszubski, City Attorney; Melanie D. Ryska, City Clerk; Carol Sobosky, Recording Secretary. 4. APPROVAL OF AGENDA Moved by Koski, seconded by Ziarko, RESOLVED, to approve the agenda as presented. Yes: All. The motion carried (7/0). 5. REPORT FROM CITY MANAGER Mr. Vanderpool reminded everyone of the holiday schedule with the offices being closed on Monday, December 25, and Tuesday, December 26 in observance of the Christmas holiday. They will also be closed Monday, January 1, and Tuesday, January 2 in observance of the New Year holiday. He informed that the next City Council meeting will be held on Wednesday, January 3, 2024. Refuse collection will be delayed one day in each of the holiday weeks, so there will be no refuse collection on Monday, December 25, and Monday, January 1. Mr. Vanderpool stated the Sterling Heights African American Coalition has announced its first-ever membership recruitment campaign in its strengthening the voice and impact of African American residents throughout the community. He added the Coalition is a dynamic and influential organization in advocating for the rights, welfare, and empowerment of African Americans in Sterling Heights for the past three years. He advised those interested in joining the coalition go to the City’s website for more information. Mr. Vanderpool highlighted some of the projects started over the last year that they will be looking forward to continuing in 2024: Regular City Council Meeting Tuesday, December 19, 2023 Page 2 • Chaldean Community Foundation project on North Van Dyke – a former blighted property which will be converted into a multi-use residential property with 138 units, inclusive of some affordable housing units, along with 8,000 square feet of retail space and ample amenities; it is along the Clinton River Trail System, designed to include a “wow” factor, and will serve as a catalyst for additional development along the North Van Dyke District. • Jolibee – opening early 2024; a Philippines-based fast-food facility will be the first in Michigan, located on the former Denny’s Restaurant site; this joins other businesses along that corridor that have been the first (or one of the first) locations in Michigan, including First Watch, Total Wine, and Portillo’s. • Zmash Padel – opening next month; this involves a sport that originated in Europe, a mix between racket ball and pickleball; this is their first location in the country and was founded and owned by a number of Detroit Red Wing players, including Henrik Zetterberg; this will serve as a destination for Southeast Michigan. • Haru Café – located on 15 Mile, west of Dodge Park Road; this is the first manga café in Michigan, serving juices, sandwiches, coffees, teas, and snacks. • Big Moe’s Kitchen – a Michigan-based chain restaurant serving quick gourmet carryout; this will be their first location in Macomb County. • Lakeside Mall Redevelopment – City Council approved the Corridor Improvement Authority District, serving the mechanism to finance some of the public improvements that will be necessary to reimagine the Lakeside area; more progress with this project will be coming in 2024. • PetSuites – currently under construction on 15 Mile Road, anticipated to open in 2024; this is a pet resort, which will be one of the nicest pet boarding/daycare, training facilities in the State; there are a number of these across the country, with only this location and Novi in the State of Michigan. • Fire Department’s multi-year Strategic Plan – they have been working hard on developing this over the past year; working through the exciting initiatives to continue the outstanding work of the Sterling Heights Fire Department, a highly-reputable department not only in the State, but also in the Midwest and the country. • Strategic Planning Session 2024 – scheduled for January 30, 2024; invited the community to attend; he added it is not necessary to RSVP but advised that details are provided on the City’s website; will be rolling out their Visioning 2040 plan, which includes the unveiling of the City’s new branding and marketing effort; Peter Kageyama, author of “For the Love of Cities”, will be making a special presentation. Mr. Vanderpool stressed that 2023 has been a busy year, and this is just a sampling of a lot of the fun projects on which they have been working. He concluded his report by adding that they are looking forward to a lot more to come in 2024. Regular City Council Meeting Tuesday, December 19, 2023 Page 3 6. PRESENTATIONS A. Mayor Taylor stated this is to receive the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023. He invited Assistant Finance & Budget Director Nick Makie, along with one of the partners of Plante & Moran, PLLC, to give the presentation. Assistant Finance & Budget Director Nick Makie stated he is pleased to present the results of the 2023 Financial Audit. He advised that independent auditors review their financial statements and accounting procedures each year, which is a very time-consuming and detailed process that involves the cooperation of many employees throughout the organization. He thanked everyone involved, especially the entire finance team, for doing an excellent job. Mr. Makie provided a short presentation to review the audit results, and he informed that the full 150-page audit report has been supplied to City Council and is also available on the City’s website. The net position of the City, which represents total assets minus total liabilities, has increased by $36.8 million from the prior year, with most of this increase in Governmental Activities and is due to the large investments the City has been making into infrastructure, including roads and facilities. He informed that General Fund Revenues totaled $125.7 million, and General Fund Expenditures were $123.1 million, so they were able to add $2.6 million to the General Fund Reserves. This brings their total General Fund balance to $35.5 million, or 28.8% of annual General Fund expenses. In 2024, they are projected to have a Use of Fund Balance of about $260,000, bringing their total reserves to $35.2 million, which is 27.9 percent of expenditures. He stated that General Fund Revenues were within 99.9 percent of budgeted targets and were $10.4 million more than prior year revenues, which is an increase of 9.1 percent compared to last year, with the increase primarily due to an increase in federal and state revenue of $3 million, which related to increases in grant revenue, revenue sharing, and property tax reimbursement, an increase of $2.7 million in operating taxes, and an increase in transport revenue and ticket revenue of $1.25 million. Mr. Makie explained the total expenditures were 1.4 percent lower than budgeted, Regular City Council Meeting Tuesday, December 19, 2023 Page 4 and every city department came in on or under budget. Expenditures increased by $8.5 million, or 7.4 percent, over the previous year, and this increase included a $3 million increase in personnel costs due to contractual wage adjustments, step increases, and added positions, and an increase of $4.5 million in transfers to other funds related to Capital Expenditures, Parks and Recreation, and Road Funding. Mr. Makie reviewed activity in some of the other major funds, including the Major and Local Roads fund, with revenue totaling $23.9 million in 2023. Revenue from the State of Michigan, known as Act 51 Revenue, totaled $15.3 million, an increase of about $630,000 over the prior year. The Safe Streets provided $8 million for neighborhood road improvements, which is up about $164,000 from the prior year, and the General Fund provided an additional $3.5 million toward the Major Roads this year. Investment in major roads increased by $3.2 million year over year, with the actual expenditures, including bonded funds, totaling over $18.3 million for 2023. In 2024, budgeted expenditures are $31.8 million, and a large portion of this increase is due to the reconstruction of Mound Road. This year’s Neighborhood Road projects totaled $6.1 million, with another $5.6 million in investment in 2024. Capital expenditures totaled $6.3 million in 2023, with highlights including another $900,000 in facility improvements, and $1.3 million for vehicle purchases. The 2024 budget will continue to see investments in equipment. The American Rescue Plan Act (ARPA) was passed in 2021, and the City of Sterling Heights has received $19.8 billion of these funds. He advised these funds must be obligated by the end of the calendar year 2024 and spent by the end of calendar year 2026. Based on input from City staff, City Council, and residents, an ARPA Action Plan was proposed and approved by City Council at the Council meeting on April 19, 2022. He reviewed some of the projects in this plan, which included the investment in roads, investment in the city park system, enhanced sidewalk gap program, retention pond improvements, direct household assistance for low- and moderate-income households, and premium pay for essential city workers. Current year’s expenditure was $4.5 million, Regular City Council Meeting Tuesday, December 19, 2023 Page 5 consisting of $668,000 in land acquisition costs for future projects, $340,000 in repairs for Metro Parkway, $2.25 million in repairs for Plumbrook Road, and $1.2 million in household assistance. He noted that $13.4 million in projects are budgeted for 2024. Mr. Makie explained the Water & Sewer fund had an operational surplus in the current fiscal year of $1.4 million, and the current year budget has also projected an increase in fund reserves, which is important for future infrastructure. Mr. Makie reviewed their Forfeiture fund, which is used to receive and handle expenditures related to federal and state drug and gambling forfeitures. These funds are the City’s share of forfeited property seized during arrests in which the City participated. The City has approximately $2.3 million in fund balance related to forfeitures, and he showed on a graph how the revenues from this activity have been increasing, directly attributable to the City’s commitment to combat crime and drug trafficking. The City’s continued investment into interdepartmental task forces and collaboration with other jurisdictions. Revenues are expected to continue to increase due to their funding of a new task force position through the Federal Drug Enforcement Agency. Mr. Makie addressed the City’s retirement funds, informing that their retiree medical fund, or OPEB, has increased its funding level by 9.6 percent from last year to 73 percent funded. The funding of the General Employee’s Pension System increased to 70.2 percent funded, with both the Retiree Medical Plan and the General Employee’s Pension Plan are closed to new hires. The funding level of the Police and Fire Pension Plan increased to 60.7 percent, and this is the only plan that is still open to new hires. The City has continued to prioritize funding for all of its retirement plans by making required contributions and obtaining appropriate actuarial assumptions for the plans. In recent years, the City has also funded its Retiree Medical Plan above the required actuarial contribution. This additional funding not only increases their funding percentage, but it helps to demonstrate the City’s dedication to funding commitments, as regularly cited as Regular City Council Meeting Tuesday, December 19, 2023 Page 6 a positive financial marker by their bond rating agencies. He showed a chart reflecting an increase of their funding levels from 10 percent in 2006 to over 73 percent as of June 30, 2020. Mr. Makie reviewed their bonded debt, with the City continuing to prioritize investment in construction and public facilities in accordance with the Visioning 2030 Master Plan. At times, these investments require the City to issue bonds to fund projects, and most city-issued bonds have a dedicated funding source. There are limits to the amount of general obligations the City can incur. He showed a chart, pointing out their general obligations are only at 22.8 percent of their legal limit for 2023, and it is a lesser percentage than the prior year. Mr. Makie announced that the City has once again been awarded the Government Finance Officer Association (GFOA) Certificate of Excellence in Financial Reporting, as well as a Distinguished Budget Award, adding that these have been awarded to the City for 34 and 35 years, respectively, and shows the City’s dedication to excellence in financial reporting. The audit results show the City’s budgeting and long-term financial planning is on target, and they are continuing to add to General Fund Reserves, ensuring adequate resources will be available to weather any current and future economic uncertainty. He added they are continuing to invest in roads and community and infrastructure, all accomplished while maintaining the lowest taxes paid per resident compared to the ten largest Michigan cities by population, and the City continues to have one of the lowest millage rates in Macomb County. He introduced Mr. David Helisek, partner at Plante Moran, the City’s independent auditors, noting they spent the last seven months reviewing the City’s financial records and operations, and have issued an unmodified opinion on the audited financial report, which is the highest rating possible. Mr. David Helisek, partner at Plante Moran, explained they provided three deliverables. He congratulated the City on 34 and 35 years, respectively, of receiving the award for financial reporting. In addition to the financial audit, they Regular City Council Meeting Tuesday, December 19, 2023 Page 7 also performed a single, or federal programs, audit, as well as a communication to those charged with the governance, as required by the auditing standards. Mr. Helisek confirmed they issued an unmodified opinion on the financial audit, which is the highest level of assurance they can give on a set of financial statements. The financial statements as presented fairly reflect the financial position of the City as of June 30, 2023. As part of this year’s audit, the City was required to implement a significant standard, which is subscription-based IT arrangements. In addition to everyday duties, this was an “extremely heavy lift” for City staff to implement, requiring not only determining arrangements within the finance department that might need to be recorded within the document, but the finance team had to reach out to other departments to explain the standard and help to determine what sort of arrangements, departments-wise and city- wide, that would have to be identified and recorded. It involved pulling contracts, reading them, determining the terms, and whether they needed to be implemented in this year’s financial presentation. He commended the City for doing an excellent job implementing those standards. He also commended the City staff for providing information in a timely manner, and always being available and very responsive. He clarified that they do not do an internal control audit, but they understand them and test them to check for weaknesses within the system. If something came to their attention, they would report it as part of their communication letter. He stated that, as they went through that process this year, once again nothing came to their attention that there was any lack of internal controls or weaknesses in the system. Mr. Helisek stated that, in addition to the financial reporting, they have a Federal Awards statement. They have to do grant compliance testing in instances where local units of government expend more than $750,000 in federal monies in any one year. He stated that, out of the $80 million of federal monies expended by the City this year, they tested two programs and have again issued an unmodified opinion on the Federal Grants Program, which is a significant accomplishment. Regular City Council Meeting Tuesday, December 19, 2023 Page 8 Mr. Helisek stated the last deliverable is a required communications to those charged with governance. He put that communication together and sent it to City Council, giving each of them the opportunity to reach out to him if they had specific concerns during the audit. He stressed they did not run across anything that needed to be communicated and no disagreements with management, and he outlined the contents of that letter. He noted that Mr. Makie covered the financial highlights, and he stated he would be happy to answer questions. Moved by Sierawski, seconded by Yanez, RESOLVED, to receive and file the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023. Mayor Pro-Tem Sierawski requested clarification on the increase they have this year in the General Fund Balance and whether that amount is $10.4 million. Mr. Makie replied that is not correct, clarifying they have an increase in General Fund Balance of $2.6 million, and it was the revenues were $10.4 million higher than the prior year. Mayor Pro-Tem Sierawski appreciated the clarification. She was glad to see part of that was a result of EMS transport. She commended them on doing a good job. Mayor Taylor stated it was a good presentation. On behalf of City Council and the residents of Sterling Heights, he thanked Budget and Finance Director Jennifer Varney and her staff, as well as all of the department heads who collaborated with them. He noted the City has come to expect a high level of professionalism, it is what their residents deserve, and he commended them on the good job. He thanked Mr. Makie for the presentation and expressed appreciation to Mr. Helisek for his work on behalf of the City of Sterling Heights. Yes: All. The motion carried (7/0). 7. PUBLIC HEARINGS A. Mayor Taylor stated this is to consider the application by Sterling Square, LLC, for a horizontal, mixed-use Planned Unit Development (PUD) on approximately 15.1 acres of land situated west of Schoenherr Road, on the south side of Fifteen Mile Road, in Section 35 of the City; PPUD23-0004. He invited Dr. Jake Parcell, City Planner, to give the presentation. Regular City Council Meeting Tuesday, December 19, 2023 Page 9 Dr. Jake Parcell, City Planner, stated this is an application from Mr. Jajou, with Sterling Square LLC, for a Planned Unit Development (PUD) they have been working on with the applicant for about a year. The applicant is requesting the development of a 64-unit multi-family apartment complex in five multi-family buildings. He added they are also proposing four commercial buildings, with two of those to be built now and two phased in later as they identify tenants. The property, with an underlying zoning of C-2, is west of Schoenherr, south of 15 Mile Road, and is located in one of their mixed-use overlay district nodes. It is currently vacant property and is a repaired landfill. The Planning Commission recommended approval for this in November by a vote of 6-1, with two members absent. He invited Assistant City Planner Shawn Keenan to provide some background on the project. Assistant City Planner Shawn Keenan explained the parcel is over fifteen acres in size. He talked about the existing zoning of the subject property, which is in the mixed-use overlay district, and he noted the zoning of the neighboring properties. Parcels to the west and the north, across 15 Mile Road, are also zoned C-2, and the parcels to the south are zoned for one-family residential. He noted that Baumgartner Park is situated to the west of the property. He explained the commercial uses that would be permitted for the C-2 district, as well as the overlay district, noting these are much more intense than the uses being proposed for the site. He stated the mixed-use development meets the spirit of the Master Land Use Plan. A slide was shown depicting an aerial of the site and the surrounding area. He explained the Office of Planning looked at some of the commercial plazas to the north, and of the twenty-four units within Brookside Villa Plaza to the north, there was only one vacancy. The adjacent Red Run Plaza to the east has only one vacant unit of the twelve total units. He explained there is a vacant building facing Schoenherr, which was occupied by a hydroponics business that moved on about a year ago. Regular City Council Meeting Tuesday, December 19, 2023 Page 10 Mr. Keenan showed a slide depicting a photograph of the view of the property from the street. He noted that a look at a zoning map from 1985 showed this property was zoned B-1, which is similar to the current C-1 zoning districts but with less intense use. It has been vacant for some time, and they believe the rezoning and overlay has helped facilitate this developer to consider this site. He explained the concept plan, which includes two retail buildings, two free-standing restaurants that front 15 Mile Road, and the five apartment buildings to the rear each support twelve to sixteen luxury apartment units. He added the average monthly rent is anticipated to be approximately $1,900 per month. He pointed out that the development only fronts 15 Mile Road, thereby preserving much of the trees and greenspace to the south that extends along the Red Run Drain. A slide was shown depicting an overlay of the site plan on the aerial photograph of the property to show how the development fits in with the surrounding uses. He emphasized the site plan is very walkable, connecting to the adjacent plaza with a sidewalk, and a connection from the apartment units to Baumgartner Park to the west. There are interior sidewalks that connect to both the sidewalks along 15 Mile Road and along Schoenherr Road. He pointed out that the buffer being maintained between the apartment units and the Red Run Drain is approximately 280 feet wide, which helps protect water quality. He added that corridor can also support wildlife. Mr. Keenan showed the floor plans and elevations of each commercial building that will support up to eight retail units, possibly less if a business wishes to take two or more of the units. He showed the elevations and floor plans of the twelve- unit apartment buildings, and he pointed out the facades have been upgraded to include more durable materials that wrap around the building. He advised that changes made to satisfy the Planning Commission included a reduction in the number of parking spaces for residential and commercial, from 370 spaces to 281 spaces, which in turn increased the greenspace on the site. Additional walking Regular City Council Meeting Tuesday, December 19, 2023 Page 11 paths were included within the development. An artist rendering was shown of the apartment complex, as well as the commercial development. Dr. Parcell pointed out the wrapping around of the façade material facing 15 Mile Road to increase street appeal. He noted they also have single-entry access to the units, which will be individually locked for security purposes. He explained the modifications to the zoning ordinance that are included in the plan, which they worked diligently with Mr. Jajou and his team to reduce those modifications to only five, which include the elimination of parking for recreational vehicles and the reduction in the number of parking spaces, reduction of the required distance between commercial buildings, reduction of the required side yard setback on the western property line, and allowing parking to be located within the front yard setback off the centerline of 15 Mile Road. He explained this development was moved closer to the right-of-way than some of the adjacent developments, but they worked with the applicant to ensure it was stepped back, so it was not overwhelming the development to the east. The parking, which is taking place in the front yard setback, helps to move the buildings closer to the road so they are more in line with the front building line as required by the traditional mixed-use node. He outlined other restrictions, including the hours of operation for the commercial units which are to be from 7 a.m. to 11 p.m. Uses in the commercial units shall fit the character of the neighborhood and be desirable on a walkable level, excluding some uses such as adult entertainment, body art facilities, pawn brokers, banquet halls, and drive-through uses at this time. Dr. Parcell informed that at least ten Level 2 fast charging stations or supercharging stations for electric vehicles will be provided for the residents, and four will be provided for the commercial units. All plans should be reviewed by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) regarding the landfill. The timeline requires that the site plan approval must be received within one year, the first phase to be completed within 18 months, and the full development will be completed within 30 months. He explained that they will not be doing all retail, Regular City Council Meeting Tuesday, December 19, 2023 Page 12 followed by all residential development, but they will be developing one retail building and two residential buildings, followed by the rest of it, so that the entire site is developed at once. Dr. Parcell stated this is the second least intense development they have seen through PUD agreements since 2018. A slide was shown comparing the numerous developments that have been approved since that time, as well as the density of those developments. He noted that Mr. Jajou is proposing to retain approximately fifty percent of the site, which involves a majority of the site’s trees, and that is to provide a buffer for a natural waterway in the back. He is only proposing to develop approximately nine acres, or forty-five percent of the total site. The density of the only disturbed area is only approximately 7.1 units per acre. It is a very low-density development compared to what they have seen in some of their more recent developments. He noted that the site is a former landfill that has been retired since the 1960s; however, they did due diligence to protect anything that is going on with regards to disturbing it. The applicant must complete a Due Care Plan with EGLE, the Engineering Office will review it in full prior to shovels going in the ground and site plan approval being issued. The applicant has already completed nineteen soil samples on site, eleven groundwater samples, and thirteen soil gas screenings, and provided this to the State for their review. Dr. Parcell explained this mitigation will also help the City remediate a Brownfield through this development process, so they will be doing a significant clean-up of the site, which will help the City improve and remediate this former landfill. The applicant will only be developing the frontage in an effort to preserve a Green Initiative Green Storm Water Structure Designated Parcel through SEMCOG. He explained the rear portion of this parcel is for stormwater infiltration as designated by SEMCOG and the County, so they are preserving this by developing only in front on 15 Mile Road. They are proposing to eliminate only on-site trees that are poor, and replanting what will be removed, and this is all being done in the least wooded portion of the site. Regular City Council Meeting Tuesday, December 19, 2023 Page 13 Dr. Parcell addressed the traffic, noting that the City, along with their traffic consultants at HRC, have looked at the area, along with the traffic counts provided by the applicant. They have determined the intersection is appropriate for a community the size of Sterling Heights. There have been some improvements to the intersection looked at to help traffic flow better, so he and the Development Director reached out to the County today to see how they can alleviate any traffic concerns here prior to development. A traffic study was completed, and they found there should only be an increase of 3 percent in the morning, and less than 2 percent in the evening during peak hours. He informed that a mixed use development is a significantly lower impact than a commercial-only development, adding that the C-2 zoning district is a relatively high-intensity commercial zoning, and if the full twenty acres were to be developed in commercial, they would anticipate seeing approximately 244 to 344 trips; however, the mixed use development would result in approximately one-third to one-half of that amount. Dr. Parcell summarized that the Office of Planning and the Planning Commission are recommending approval of this development, adding they have found a mix of density that works on site while retaining most of the natural features. He summarized the reasons for this recommendation, noting there is a need for commercial use based on the low vacancy rate in the area, and the sixty-four multi- family units will help to support the commercial development and the restaurants that exist there. He stated this is a $25 million investment in the community, and it will be providing luxury housing and high-class amenities for commercial, but it is also helping by remediating an existing landfill and cleaning contamination on site while retaining the majority of natural features. It provides connectivity to the parks and pedestrian traffic from Schoenherr to 15 Mile with public walkways. He offered to answer questions. Mr. Zaid Arabo, of ZA Design Build, explained they worked very hard to design this site, and they are extremely excited about this project. He stressed they did not want to overwhelm the large 15.1-acre site but wanted to stay within 30 to 40 Regular City Council Meeting Tuesday, December 19, 2023 Page 14 percent of the site, providing a lot of walkability. He noted that a buffer is created for the multi-family units, having commercial in the front, and it will be a place where the residents can live and work. He pointed out that they created a breezeway between the two commercial buildings because they did not want to overpower the frontage of the site with one elongated building. They will have a lot of areas for people to walk, sit, and hopefully enjoy dining, adding that they hope a lot of the commercial development will be restaurants. He commented that at some point when the moratorium is lifted, they hope to possibly put in a drive-through, but if not, they are happy with what they have proposed. He offered to answer questions. Mayor Taylor opened the public hearing and invited comments from the audience. • Unidentified resident – resident of this area since he was born in 1955; noted the area was a landfill, and he appreciated they are proposing to remediate it, adding that there are things buried there that should not have been buried; however, concerned that this may be open to lawsuits. • Ken Nelson – expressed opposition to Planned Unit Developments; concerned they allow the City to make changes to the zoning ordinance to allow developments that would not meet those ordinances; commented that at the Planning Commission meeting on September 13, the landfill was a big issue of concern; glad to see the applicant stood up to the Planning Commission about moving the buildings closer to the road; opposed to putting residential buildings on an old landfill; noted the Planning Commission originally had a motion on the floor to deny this development but it ended up being recommended for approval. • Jerry Mahlburg, 13013 15 Mile Road – lives in the house his father built in 1954, across the street from one of the ballfields; his father used to see headlights on the landfill property in the middle of the night when it was closed, indicative of illegal dumping; heard there was dumping years ago of 55-gallon drums from a local industry; questioned if the proposed area to be developed is cleaned up, how does that affect the remainder of the landfill, which extends to Schoenherr; expressed concern about possible odors resulting from disturbing the landfill; questioned whether there will be vents and how much odor can be expected; requested odors be kept at a minimum because neighbors have been smelling sewer gas for a long time and deserve quality air; residents in the area always heard the landfill could never be developed, but are now hearing it can be developed with proper cleanup. Mayor Taylor closed the public hearing. Moved by Radtke, seconded by Taylor, RESOLVED, to approve the application by Sterling Square, LLC for a horizontal, mixed-use Planned Unit Development (PUD) on approximately 15.1 acres of land situated west of Schoenherr Road, south side Regular City Council Meeting Tuesday, December 19, 2023 Page 15 of Fifteen Mile Road, in Section 35 of the City; PPUD23-0004, subject to the terms and conditions set forth in the Planned Unit Development Agreement, and authorize the Mayor and City Clerk to sign all documents required in conjunction with this approval on behalf of the City. Councilman Radtke commented that there are a lot of good things with these plans, and there are some things he would like to see done differently. He agreed with Planning Commissioner Nathan Inks’ comments about the buildings being moved closer to the street, noting that while the plan is laid out nicely, he would like to see the building brought closer to the street. He noted there is a lot of success in the City of Troy with buildings that are close to the street, with shared parking behind the buildings, and he specifically cited the areas of 16 Mile and Dequindre, as well as 16 Mile and John R. He would also like to see mixed use in the retail buildings, and he compared it to the development on South Main Street in Pittsfield Township, where there is mixed use, both horizontal and vertical. He commented that when he visited this site this past spring, all of the apartments were rented, and their average rent was $3,500 per month, although he admitted that will not happen here in Sterling Heights. He also requested that they have shared parking agreements, and questioned whether this is in place. Dr. Parcell replied that they currently have designated parking for each use. Councilman Radtke noted that a true horizontal mixed-use development would have shared parking. He is happy the number of parking spaces was reduced, but he would like to see a further parking reduction. He cited a report from both SEMCOG and the U.S. Census that state the average two-bedroom apartment or condominium in Sterling Heights is actually inhabited by 1.5 people, so two parking spaces per unit is too much. He stated he lives at 15 Mile and Maple Lane in the condominiums on the corner, and he looked at his condominium complex on a Wednesday at approximately 6 or 7 p.m., and his lot, with about two hundred parking spaces, was about 56 percent full. He would not like to see a drive-through restaurant at this location, adding he is pushing to have them banned completely in the traditional mixed-use modes, due to the dangerous situation it causes for pedestrians. He urged the owner to create beautiful patio restaurants. He hoped Regular City Council Meeting Tuesday, December 19, 2023 Page 16 that the owner would agree to include in the PUD to make sure the main entrances will always be on the front of the building. He added that he is not opposed to a second entrance in the back but would like to assure that the main entrances will be in front. Mr. Jajou assured he will include that stipulation in the agreement. Councilman Radtke commended the Office of Planning for adding recycling to the site, and also the addition of charging stations. He hoped the owner would take his suggestions into consideration. Mayor Pro-Tem Sierawski requested clarification on the stormwater initiative. Dr. Parcell replied to inquiry he received input on this from SEMCOG and through the City’s Sustainability Commission, and stated the Green Stormwater Initiative is future potential designation for SEMCOG for the property, although it will not be launched for the next few years. They have highlighted vacancies along all waterways and the SEMCOG service area, stating its potential for a Green Stormwater Initiative area. They worked with Mr. Jajou to preserve as many trees as possible along the rear portion to assure they were fulfilling any future obligations for this. Mayor Pro-Tem Sierawski explained she grew up near a landfill in Grand Ledge, Michigan, so she understands the trepidation of people who live near landfills. She requested an explanation of what is involved in the remediation and landfill cleanup that is expected on this property if this is approved. Dr. Parcell stated there is a mystery of what is under the soil on this site. The applicant has done significant testing and submitted those results to EGLE for review. They complete Phase I, Phase II, and a Due Care Plan for cleaning the property. They have brought in the applicant and his engineering team, SME, to meet with the City’s Office of Engineering multiple times over the last year. He added he has been assured by City Engineer Brent Bashaw that they will not allow “shovels to go into the ground” until they receive a document from Egle that declares this site is buildable and will be safe for habitation. If these documents Regular City Council Meeting Tuesday, December 19, 2023 Page 17 are not received by the City, the site will not be constructed, and final site plan approval will not be granted. The Due Care Plan will outline what Mr. Jajou must do to clean up the site, which they review as a substantial public benefit. Through public comment, they have heard there is a lot of concern about the landfill. He assured they will not allow anything to happen on the site until they receive word that all testing is complete and everything will be safe for the parcel to be developed. Mayor Pro-Tem Sierawski understood that there may be venting that may need to be done and the air quality may be compromised. She questioned what they can expect. Dr. Parcell deferred to SME to address that question. He indicated they would potentially have some type of venting in the back. He assured the scent would not be a long-term odor on the site, and that anything else related to the venting will be unrelated to the drain project going on at this time. Mr. Troy Helmick, with SME, stated he is part of the environmental team working on this project. There is contamination on this site related to the historical landfill, so the State of Michigan will require some type of venting. Depending upon the type of contamination on the site, it can be active, so fan venting would be used. It is typical of what they would see in a radon system. They are connected to venting below the slab and will remove any potential contamination and sewer gas up into the atmosphere. He explained the process the State of Michigan follows to make these calculations and determinations. Mayor Pro-Tem Sierawski questioned what the neighboring residents can expect regarding odors and how they will be mitigated. Mr. Helmick replied they will not know until this is activated, but the development of landfills is something occurring all over the State of Michigan. He has not personally noticed any odor with these mitigations because it is a low volume. There may be a higher concentration or odor level when the fans are first turned Regular City Council Meeting Tuesday, December 19, 2023 Page 18 on, but over time, it remediates because the compounds volatilize, thereby reducing the odor. Mayor Pro-Tem Sierawski commented that her concerns with apartments are generally high density, and she appreciated that this development is less dense. She thanked them for explaining the Green Stormwater Initiative, the proposed remediation, and the traffic study. She appreciated the public walkways and felt this is a nice project. Councilwoman Schmidt stated she has a few reservations, expressing concern about the traffic on 15 Mile Road. She noted they will be adding two more driveways on 15 Mile Road and pointed out there are currently thirteen driveways along 15 Mile Road from Schoenherr to the light at the Fire Station and Sterling Heights High School. She expressed concern that this will become a traffic nightmare similar to 15 Mile and Ryan. She drives this stretch of roadway every morning, and she stressed it is very difficult to maneuver through that traffic in both directions. . She questioned why there is no access to and from Schoenherr. Dr. Parcell replied to inquiry that when they looked at this project, there is wetlands in some area and in order to retain the trees and avoid any potential paving in the flood plain, they opted to provide walking paths out to Schoenherr and keep the vehicular traffic on the 15 Mile Road side. Councilwoman Schmidt stated she does not like that both entrances are on 15 Mile Road. She mentioned numerous vacancies in the surrounding commercial developments. She expressed concern that the safety on 15 Mile Road will be compromised as a result of the traffic congestion. She admitted there have been odors in that area for over thirteen years; however, she lives near the methane vents at Freedom Hill, and although they whistled and there was an odor when they were first installed, that odor and whistling have gone away. She questioned what will happen to the remainder of the landfill site if they are only remediating a portion of it. Regular City Council Meeting Tuesday, December 19, 2023 Page 19 Dr. Parcell replied to inquiry that EGLE may require the entire site to be evaluated through their Due Care Plan. The majority will be determined based on the locations of the contamination. They have worked with SME to make sure they are going further back to see the extent of the landfill, and when they follow through with their Due Care Plan, they will ensure there is no leaching of anything that could be moving throughout the underground site. Councilwoman Schmidt stated it seems there are still a lot of unknowns about this property. Dr. Parcell replied that is correct, but they will wait on the State’s Due Care Plan, which will ultimately determine site plan approval. Councilwoman Schmidt recalled the applicant stating he is proposing two different restaurants, and proposed future restaurants may be drive-through. She pointed out that would generate even more traffic. She felt this would add too much to the already-congested area. Councilwoman Koski questioned the history of the property, and whether there is any history of landfill on neighboring properties that have already been developed. Dr. Parcell stated he has not been able to find anything through any site plan records that there was landfill under any of those areas. He knows they have had no issues with any mitigation. Councilwoman Koski questioned whether there were any problems with the building that is now vacant. Dr. Parcell replied to inquiry that he could not find anything related to the landfill. He replied to further inquiry that the petitioner has done some testing, completing nineteen soil samples, eleven groundwater tests, and thirteen soil gas/methane screenings along the frontage of 15 Mile Road. He depicted in an aerial photograph how far this testing extended on the property. It covered the majority of the western portion of the site, and everything is under review by the State of Michigan. Regular City Council Meeting Tuesday, December 19, 2023 Page 20 Mr. Helmick replied to inquiry that they found a lot of evidence, including evidence of a historical landfill, including glass, brick, and more down twenty feet or more. There were environmental borings, with geotechnical drilling done. Discussion has taken place on how to design foundations that can support the planned buildings with the landfill material in place. Councilwoman Koski questioned how this affects the project from a financial aspect. Mr. Helmick replied it is very expensive, and there is more environmental testing to be done with regard to EGLE’s requirements. Councilwoman Koski questioned whether the project could get to a point where it would not be financially feasible to develop. Mr. Jajou assured they have worked all of this into the budget. He stated they are prepared to go through with this as long as EGLE approves it. He replied to further inquiry they are prepared to make the corrections to complete the project, and they are financially stable to do this as long as EGLE allows them to build on it. He noted they are still waiting for the results, and he agreed with Dr. Parcell that a shovel will not go into the ground until it is approved by EGLE. Councilwoman Ziarko thanked the applicant for taking the time to bring these plans forward. She stated she has lived in this area since 1978, and her house is on the map that was shown. She has watched the development in the area, even before Brookside Villa was a plaza, and prior to the development of the Comerica Bank. She emphasized she cannot make a left-hand turn out of her subdivision without using the left-hand turn lane, which is illegal. She stressed the traffic is very intense, and although she does not know how this development would impact that traffic, but she has been complaining about this traffic light at the intersection for years, and nothing has been done to correct the current traffic problem. She explained the least of her concerns about this development is the environmental portion because she is confident that will be taken care of if EGLE approves it, and they will make sure it is done the right way. She witnesses the Regular City Council Meeting Tuesday, December 19, 2023 Page 21 traffic issues every day, and although she appreciates Mr. Jajou’s interest in the City of Sterling Heights and the plans look good on paper, she does not feel this is the right location for this development. She acknowledged that, although the vacancies in the strip malls are minimal, some of those units have been vacant for years. She felt it may be misleading when the Master Plan indicates this development is feasible, and she added that even if City Council approves this tonight, she anticipated they will be coming back requesting to add another story to make it financially feasible. She stated her answer would have to be no on this request. Councilman Yanez appreciated Councilwoman Ziarko’s comments, but he stated he is very interested in the environmental part of this. He inquired as to whether Mr. Jajou has any tenant agreements for the commercial space. Mr. Jajou replied to inquiry that he does not have any tenant agreements in place because they are waiting for this approval. Councilman Yanez questioned whether they have a timeline from EGLE. Dr. Parcell understood it is all submission-based, so the quicker they can do the testing, the quicker it will be reviewed. He understands it should be completed within the time frame allotted within the PUD agreement. Councilman Yanez questioned whether there is a cap on the landfill. Mr. Helmick replied no to the inquiry. He replied to further inquiry that their firm did the testing. Councilman Yanez questioned whether there was any leaching when they took the core samples. Mr. Helmick stated they did not do leaching testing in 2021, but they did that testing in 2019. There was nothing that was going to leach out of the soil at that time. Councilman Yanez questioned how long Mr. Helmick has been doing environmental consulting. Regular City Council Meeting Tuesday, December 19, 2023 Page 22 Mr. Helmick replied he has been doing environmental consulting for almost twenty-five years. He replied to further inquiry that they go through a process called a Response Activity Plan, which is a Due Care Plan. It will explain how to build the property safely for the construction workers, and in its final use, how tenants or others on this property should operate and live safely on this property. Councilman Yanez questioned whether they monitored for methane gas. Mr. Helmick replied affirmatively. He replied the most recent assessments were within the footprint of the first site plan; however, they have moved the site over, so out of the nineteen locations where they took samples, they had identified methane in four of those locations. Councilman Yanez inquired as to whether there will be the potential for venting if this project is built. Mr. Helmick replied that is absolutely the case. Councilman Yanez stated he plays golf on a course situated on a landfill, and he has been able to smell the odor when close to a vent. They are close to going into the process for greenhouse gas emissions inventory for Sterling Heights, so releasing a greenhouse gas such as methane on a regular basis, at least for some time, is troubling to him. Mayor Taylor stated he is in favor of this project. He commented that the requested variances are minimal, but he felt they are very close to a project that the developer would be able to build by right on this property. He stated he is not going to “nitpick” the project, and he added that by making this a horizontally mixed-use district, it will be less intense than it otherwise could have been. He agreed with the concerns expressed by Councilman Yanez, but if they receive approval from EGLE, he is satisfied. He noted traffic was another concern, and although 15 Mile and Schoenherr is not on his regular route, he has traveled that area through heavy rush hour. He pointed out that traffic is a reality of life and felt that the traffic resulting from this development will have minimal impact on the area. He stated he will be voting in favor of this project, and he is happy to have Regular City Council Meeting Tuesday, December 19, 2023 Page 23 them in the City. He hopes it will be approved, pointing out there is currently a huge housing need, and he further commented that they should be doing everything in their power to make sure there is housing available for people who want to live in Sterling Heights. He does not feel they are near the breaking point in terms of how much population the City can hold, and although that area of the City is busy, he is confident it can handle the density of the proposed density. Councilman Radtke stated he spoke with the Office of Planning, noting he thought the building was going to be three stories in height, but was told it was reduced to two stories because of the instability of the soil. Mr. Arabo clarified that they did not want to overdevelop the site, and they could have gone to three stories if they had wanted to do so. They felt sixty-four units was a good number. He also noted he feels that 1.5 parking spaces per unit is more than enough parking. He explained they started with a larger shopping center and only one large building without the breezeway. Councilman Radtke stated he would be comfortable to see another floor added to the apartment buildings. He agreed with Mayor Taylor’s comments that they have a housing shortage in the entire region. He appreciated that they are keeping the site heavily treed and that they are developing walking paths to get to the roadways as well as the adjacent park. He pointed out there are few neighbors who would complain because they are somewhat isolated, with a shopping center on one side and a cross-access agreement with them, a shopping center across the street, a Fire Station, and a school. He added he would be comfortable with three-story apartments. Mr. Jajou clarified that he wants to keep these as luxury units, each having their own private entry. With a third story, they cannot afford that privacy to perspective tenants because they would have to share a hallway with four units. Councilman Radtke agreed with Mayor Taylor that it is the applicant’s project, and he is trying his best to work within the means of the site. He trusts EGLE’s determination, and if this is approved by EGLE, he felt they should be allowed to Regular City Council Meeting Tuesday, December 19, 2023 Page 24 build. He recalled a problem with a similar site in Utica, and EGLE denied it, so the plan eventually fell apart. He agreed with Mayor Taylor that 15 Mile Road is a major road made for traffic. He questioned whether the methane would be required to be vented if nothing is developed on the site, or whether it would be allowed to stay captive in the ground. Mr. Helmick replied that the property is not capped so the methane gas is already coming out. It is not noticeable because it is a large parcel of property. He replied to further inquiry there would be venting below each of the structures, and the vents would be designed to exit a couple of feet above each structure. Councilman Radtke reiterated they need housing in Sterling Heights, and this is a good example of a less dense project that has a good opportunity. He hoped Mr. Jajou would take his suggestions into consideration. He stated he will be voting in favor of this project. Roll Call Vote: Yes: Sierawski, Taylor, Radtke. No: Yanez, Ziarko, Koski, Schmidt. Motion failed (3/4). The meeting recessed at 8:51 p.m. and reconvened at 8:55 p.m. 8. ORDINANCE INTRODUCTIONS A. Mayor Taylor stated this is to consider introduction of a map amendment to Zoning Ordinance No. 278 to conventionally rezone property commonly known as 8850 Hall Road and situated on the southwest corner of the intersection with Brockton Avenue, from O-2 (Planned Office District) to R-80 (One Family Residential District); Case PZ23-0009. He invited Dr. Jake Parcell, City Planner, to give the presentation. Dr. Jake Parcell, City Planner, stated this is a conventional rezoning for a single- family home. The applicant is requesting to rezone the property, measuring approximately 18,000 square feet, from O-2 (Planned Office District) to R-80 (One Family Residential District). He explained this is on the south side of Hall Road and is currently vacant, and the rezoning was recommended for approval by the Planning Commission in November. He showed an overlay of the zoning of the surrounding lots. The area is already a little spot-zoned, and the Master Land Use Regular City Council Meeting Tuesday, December 19, 2023 Page 25 Plan has it designated as Suburban Residential, although it is actually a few trees on a vacant lot that was previously an office use. The expansion of Hall Road eliminated some of those office buildings, which were demolished. A lot of them were redeveloped as subdivisions. This is one non-conforming parcel for O-2 due to increased setbacks in the office to the residential district, and the size of the parcel would not support an office with parking. The applicant purchased this parcel and would like to come in line with the Master Land Use Plan and bring it into compliance by building a single-family home. He indicated this is basically a clerical cleanup of what they were left with after the expansion of Hall Road. He offered to answer questions. Mayor Taylor opened the floor for public comment, but no one spoke. Moved by Radtke, seconded by Taylor, RESOLVED, to introduce the map amendment to Zoning Ordinance No. 278 to conventionally rezone property commonly known as 8850 Hall Road and situated on the southwest corner of the intersection with Brockton Avenue, from O-2 (Planned Office District) to R-80 (One Family Residential District); Case PZ23-0009. Councilman Radtke commented that this seems like a commonsense solution after MDOT completed the large Hall Road expansion. He questioned whether the property will be readdressed to have a Brockton address rather than a Hall Road address, especially since the curb cut was forced to be relocated to Brockton Avenue. Dr. Parcell replied affirmatively, noting they can address that when the development comes through. He assured it will be taken care of. Mayor Pro-Tem Sierawski stated she knew the Brocks who had a farm on that road. She added this is a great solution to an unfortunate situation. She questioned whether the petitioner is present this evening. Dr. Parcell replied to inquiry that unfortunately, the applicant was unable to be present this evening as he is traveling for the holidays. Mayor Pro-Tem Sierawski inquired as to whether the petitioner intends to live in the house. Regular City Council Meeting Tuesday, December 19, 2023 Page 26 Dr. Parcell replied to inquiry that he intends to build the house and then sell it. He purchased this as part of several properties, but once they discovered through discussions that it is functionally obsolete as office use, he decided to rezone it and build a home. Yes: All. The motion carried (7/0). 9. ORDINANCE ADOPTION A. Mayor Taylor stated this is to consider adoption of the first amendment to the Appropriations Ordinance for the 2023/24 fiscal year. He opened the floor for public comment, but no one spoke. Moved by Ziarko, seconded by Schmidt, RESOLVED, to adopt the first amendment to the Appropriations Ordinance for the 2023/24 fiscal year. Yes: All. The motion carried (7/0). 10. CONSENT AGENDA Mayor Taylor stated this item is consideration of the Consent Agenda. He opened the floor for public comments, but no one spoke. Moved by Koski, seconded by Ziarko, RESOLVED, to approve the Consent Agenda as presented: A. To approve the minutes of the Regular Meeting of December 5, 2023. B. To approve payment of the bills as presented: General Fund - $1,597,245.73, Water & Sewer Fund - $3,497,472.13, Other Funds - $1,786,059.06, Total Checks - $6,880,776.92. C. RESOLVED, to award the bid for GeoMax Zoom 95 A5 1" robotic total station, with accessories, to Survey Instrument Sales, Inc., 24037 Acacia Road, Redford, MI 48239, at a cost of $23,348. D. RESOLVED, to: 1. Rescind the September 5, 2023 bid award to Johan’s Enterprises, Inc., 652 Lefferts Ave., Brooklyn, NY 11203, for the Gen3 dual tube night vision system, including one mount and four helmets, at a total cost of $11,801.54; and, 2. Award the bid for the Gen3 dual tube night vision system, including one mount and four helmets, to Tactical Night Vision Company, Inc., 1050 Nevada Street. STE 405, Redlands, CA 92374, at a total cost of $11,697.84. E. RESOLVED, to purchase annual maintenance and four (4) additional named user licenses for OnBase enterprise content management software from Applied Innovation, LLC, 5555 Glenwood Hills Parkway, Grand Rapids, MI 49512, for the period January 1, 2024 through December 31, 2025, at pricing available through General Service Administration cooperative purchasing contract no. GS-35F-249DA, at cumulative cost of $15,228.60 for 2024 and a 7.5% increase for 2025. F. RESOLVED, to approve the agreement for animal licensing services between the city of Sterling Heights and PetData, Inc. for a three-year period and authorize the City Manager to sign the agreement on behalf of the City and exercise the option to extend the term for three additional one-year terms. Regular City Council Meeting Tuesday, December 19, 2023 Page 27 G. RESOLVED, to purchase computer equipment from People Driven Technology, Inc., 6300 Venture Hills Boulevard SW, Byron Center, MI 49315, at competitive pricing available through Midwestern Higher Education Commission cooperative purchasing contract #MHEC-04152022 at a cost of $17,101.75 and authorize the City Manager to sign all necessary documents on behalf of the City. H. RESOLVED, to accept the proposal from Midwest Visual Works LLC, 2810 Lauryl Drive, Commerce Township, MI 48382, for audio/visual system upgrades in the Sterling Heights Public Library's programming center at a total cost of $14,482 and authorize the City Manager to sign all required documentation on behalf of the City. I. RESOLVED, to purchase four (4) GameTime trash receptacles and six (6) GameTime 8' benches from Playcore Wisconsin, d/b/a GameTime, c/o Sinclair Recreation, LLC, 176 East Lakewood Boulevard, Holland, MI 49424, at pricing available through OMNIA Partners / US Communities cooperative purchasing contract no. 2017001134 at a cumulative cost of $13,536.08. J. RESOLVED, to: 1. Approve the Administration Services Contract with Blue Cross Blue Shield of Michigan for the period January 1, 2024 through December 31, 2024, with monthly fees of $69.59 per employee/retiree contract for administration, and $141.06 per employee/retiree contract for specific stop-loss insurance at $250,000 for the self-insured retention; and, 2. Authorize the City Manager to sign all documents required in conjunction with these approvals, upon review and approval by the City Attorney. Yes: All. The motion carried (7/0). 11. CONSIDERATION A. Mayor Taylor stated this is to consider an appointment to the City of Sterling Heights Zoning Board of Appeals – Alternate Member. He opened the floor for public comments. • Saif Yousif, proposed nominee – stated he is happy to serve and is looking forward to it. Moved by Sierawski, seconded by Radtke, Resolved, to appoint Saif Yousif to the Zoning Board of Appeals – Alternate Member to a term ending June 30, 2026, subject to the appointee meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Mayor Pro-Tem Sierawski thanked the nominee for coming up to speak this evening. She stated he is willing to serve and excited about it, so he will be an excellent alternate member to the Zoning Board of Appeals. Councilman Radtke expressed his appreciation at Mr. Yousif’s willingness to serve. Mr. Yousif is the owner of multiple businesses in the City, and he felt Mr. Yousif will bring a good perspective to the Zoning Board of Appeals. Yes: All. The motion carried (7/0). Regular City Council Meeting Tuesday, December 19, 2023 Page 28 12. COMMUNICATIONS FROM CITIZENS Mayor Taylor opened the floor for public comments. • Sylvia Orduño – resident in the City of Detroit but working with several State legislators on some statewide legislation; effort to enact statewide water affordability legislation to protect residents across the state experiencing problems with being able to pay for their water bills; growing problem across many communities; legislation would create a new fund paid for by a $2 fee per month for everyone who has a water meter; they have been benefitting from a lot of money coming through federal government to cities and townships in the state, but those funds will be ending in 2026; requested support of Mayor and City Council for a Resolution for this legislation; she offered to come back to go through it in more detail and answer questions. • Ken Nelson – talked about a website (www.worldpopulationreview.com), which takes information from the Census Bureau; commented the City does not need any more rental units. 11. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Vanderpool stated he has nothing further to add this evening. Councilman Radtke wished everyone a Merry Christmas, Happy Holidays, and Happy New Year. He addressed the issue of density, which is not a problem if it is managed properly. He pointed out a densely developed area can offer services at a cheaper price, which is one of the reasons why the taxes are so low in Sterling Heights because they can deliver services at a very good price. He noted there is a problem when talking about density per square mile because they have to take into consideration the problem with averages. He compared it to going to downtown Detroit, where the population can be very dense, versus some of the outlying areas still within the city limits, where the population density is much lower. He does not agree with the census numbers across the state and noted that they have filed an appeal. He does not believe the City of Sterling Heights is losing population, noting they are improving housing. He clarified he pushes for housing in the City because of shared services, and people want to live in this City. He expressed concern that there is a fear of renters, noting a lot of these applications for apartments have been denied. He cited the application considered earlier this evening for sixty-four upscale rental units, and even if there were two people per unit, it would be the addition of about 120 residents, which he felt the City can handle. He was concerned that, while the reasons for the denial are based on Regular City Council Meeting Tuesday, December 19, 2023 Page 29 items such as traffic counts, higher density, etc., it comes across that they are saying they do not want renters. He felt sorry for developers who spend money to try to get their developments approved, and he felt sorry for the Planning staff who spend a lot of time with the applicants, knowing these developments are going nowhere. He felt bad for the City because they are losing money. The people who move into these rental units, especially the luxury apartments, would be spending a lot on not only their apartment rent, but they would also be spending money at businesses within the City. Councilwoman Ziarko stated she served for the last two years as president of the Michigan Municipal League Board of Trustees. She attended her first meeting after passing the gavel off, and she has the opportunity to continue to sit on the Board but without a vote. She plans to continue to attend because she has learned so much over the years through the League. She pointed out that there are seven Council members, each one different, and they all make decisions. She is respectful of someone else’s opinion, and she would like the same respect in return. She would like to learn more about the legislation for the Water Coalition legislation, so she would be willing to meet in a small group if that is Ms. Orduño’s intent. She concluded by stating her home celebrates Christmas, but she wished everyone a Merry Christmas or whatever holiday they are celebrating at this time of the year. Mayor Pro-Tem Sierawski wished everyone a Merry Christmas because that is what she celebrates in her home, but she wished them happy holidays as they spend time celebrating their families, being thankful for what they have, and hopeful for the new year. She stated they are finally able to travel without being fearful of the Covid pandemic, which was declared ended this past May. She stated she would love to meet with Ms. Orduño about the proposed Water Coalition legislation. She would like to find a way to make water affordable for everyone. Councilwoman Schmidt wished everyone a Merry Christmas and a Happy New Year, urging everyone to stay safe, especially first responders and those out taking Regular City Council Meeting Tuesday, December 19, 2023 Page 30 care of the roads. She thanked them for all they do for this community, and she added they have a lot to look forward to in the coming year. Councilwoman Koski wished everyone a very Merry Christmas, a happy, healthy, and prosperous New Year. She urged those traveling to stay safe and enjoy the holidays. Councilman Yanez wished everyone a Merry Christmas, Happy New Year, and Happy Holidays in whatever they celebrate. He added they can wish each other peace, and they need to stand for those principles. He urged everyone to think about their neighbors, loved ones, and look out for them. Mayor Taylor stated he does not want to rehash everything discussed tonight, but he felt it is apparent that the City Council is not welcoming apartments. He expressed frustration because applicants are spending considerable time, money, and resources to go through the Planning Department, receiving encouragement, and then they are denied at the City Council level. He stated it is not the way to run a city and treat developers and others who want to do business in the City. He suggested they need to develop a way to let these applicants know that they have very little chance of developing an apartment complex in Sterling Heights. He has looked at all of the applications for apartments in the last twenty-four to thirty-six months, and he could see no pattern for the denials. He thought if the residents in the area came out to complain, that is when the proposal is denied; however, there are times like tonight when there are no residents complaining and it still gets denied. He does not understand the standards by which they are voting. He thought that it was the high-density developments that were being denied, but tonight’s proposal was not high-density, yet it was also denied. He stated he is not here to try to convince his colleagues that he is right, and they are wrong, but he emphasized they need to be honest with the development community. He pointed out that the attorney, the Planning Office, the private sector, and the property owners are putting a lot of work into these. He felt these developers need to be shown the projects that have come to City Council and have been Regular City Council Meeting Tuesday, December 19, 2023 Page 31 denied so that they can stop wasting their time trying to develop apartments in Sterling Heights. He hoped the message is clear to the development community that they can take their $25 million and spend it in another community because the City of Sterling Heights is “closed for apartment people.” He concluded by wishing everyone a Merry Christmas. 12. UNFINISHED BUSINESS There was no unfinished business. 13. NEW BUSINESS There was no new business. 14. CLOSED SESSION PERMITTED UNDER ACT 267 OF 1976 Mr. Kaszubski stated there are no items for Closed Session this evening. 15. ADJOURN Moved by Ziarko, seconded by Schmidt, RESOLVED, to adjourn the meeting. Yes: All. The motion carried (7/0). The meeting was adjourned at 9:30 p.m. MELANIE D. RYSKA, City Clerk