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HomeMy WebLinkAboutCity Council - 10/21/2025Approved Minutes Eden Prairie City Council Meeting 7 p.m. Tuesday, Oct. 21, 2025 City Center Council Chambers 8080 Mitchell Road Eden Prairie, MN 55344 ATTENDEES City Council Members: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG Narayanan, and Lisa Toomey City Staff: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Amy Markle, Police Chief Matt Sackett, Fire Chief Scott Gerber, Administrative Services/HR Director Alecia Rose, and City Attorney Maggie Neuville MEETING AGENDA I. Call the Meeting to Order Mayor Case called the meeting to order at 7 p.m. All Council Members were present. II. Pledge of Allegiance III. Open Podium Invitation IV. Proclamations and Presentations V. Approval of Agenda and Other Items of Business Narayanan added “Diwali” as an item under Council Member Reports. MOTION: Toomey moved, seconded by Narayanan, to approve the agenda as amended. Motion carried 5-0. VI. Minutes MOTION: Narayanan moved, seconded by Freiberg, to approve the minutes of the Council workshop held Tuesday, October 7, 2025, and the City Council meeting held Tuesday, October 7, 2025, as published. Motion carried 5-0. VII. Consent Calendar A. Clerk’s List B. Aspen Estates by Bill Welch. Adopt Resolution No. 2025-092 amending Resolution CITY COUNCIL MEETING AGENDA October 21, 2025 Page 2 No. 2025-082 relating to the conditional approval of the Development Agreement for Aspen Estates C. Approve T-Mobile lease agreement at 13900 Holly Road, approve license agreement D. Approve T-Mobile lease agreement at 8950 Eden Prairie Road, approve license agreement E. Adopt Resolution No. 2025-093 accepting Staffing for Adequate Fire and Emergency Response (SAFER) grant awarded to the City F. Adopt Resolution No. 2025-094 allowing Cities of Eden Prairie and Bloomington to join cooperative agreement for 911 call handling system G. Adopt Resolution No. 2025-095 supporting legislation allowing municipalities to implement local design standards for municipal state aid roads H. Adopt Resolution No. 2025-096 endorsing Dell Road funding application for the State local road improvement (LRIP) grant program I. Approve Change Order 1 for Well 10 Rehab with Keys Well Drilling J. Approve Change Order 1 for Well 16 Rehab with Keys Well Drilling K. Approve professional services agreement for low salt parking lot design project at City Center with Bolton & Menk L. Award Contract for traffic signal 12B and 14K improvements to Egan Company M. Award construction contract for reconditioning of the City’s Red Oak Sanitary Sewer Lift Station No. 11 to Krueger Excavating N. Approve professional services agreement for 2027-2029 Pavement Evaluation with AET O. Approve lease agreement with Jillian Davis for operation of a bookstore at Dorenkemper property P. Authorize agreement with SkyGlow Drone Productions for July 3 Drone Show Q. Approve professional services agreement for tax advisory services for Water Treatment Plant ground source heat pump project with Deloitte Tax, LLP MOTION: Nelson moved, seconded by Toomey, to approve Items A-Q on the Consent Calendar. Motion carried 5-0. VIII. Public Hearings and Meetings CITY COUNCIL MEETING AGENDA October 21, 2025 Page 3 A. Valley View Hotel Development by CSM Lodging Acquisitions. Adopt Resolution No. 2025-097 for Guide Plan Change from Medium Density Residential, Parks and Open Space, and Office to Parks and Open Space on 53.01 acres and Commercial on 6.59 acres, Adopt Resolution No. 2025-098 for Planned Unit Development (PUD) Concept Review on 6.59 acres, Approve first reading of Ordinance for PUD District Review with Waivers on 6.59 acres and Zoning District changes from Rural to Parks and Open Space on 53.01 acres and Rural to C-Regional Service on 6.59 acres, adopt Resolution No. 2025-099 for a Preliminary Plat of one parcel into 2 lots and 1 outlot on 59.6 acres, and adopt Resolution No. 2025-100 supporting Park Dedication Fees on 6.59 acres Getschow explained that CSM is requesting approvals necessary to develop the 59.6 acres of land at the NE corner of Valley View Road and Interstate 494 into a 157-room hotel and an 8,000 sq ft restaurant. The hotel and restaurant will occupy 6.59 acres, and the northern 53 acres will be acquired by the City to be preserved as parks and open space. Approvals necessary include a comprehensive plan amendment, zoning district change, preliminary plat, Planned Unit Development, and site plan. John Ferrier, Vice President of Architecture and Development, CSM Corporation, located at 500 Washington Avenue in South Minneapolis, introduced himself. Mr. Ferrier detailed the history of the Residence Inn. He explained the reasoning behind the requested waivers for building height, shoreland setback, and the shore impact zone. Additionally, the application includes requests for zoning and land use changes to become Regional Commercial and Parks and Open Space designations. Lastly, Mr. Ferrier showed various renderings of the proposed building. Toomey asked about the status of the Bald Eagle’s nest discussed at the Planning Commission meeting. Mr. Ferrier stated that three different groups investigated the property, and no group could find a nest. Toomey noted the nest may be more visible as the leaves fall. Mr. Ferrier pointed out that there are many fallen trees on the property, and they believe that the nest was in a fallen tree. Toomey thanked the developers for the retention of heritage trees. She asked about the size of the retaining walls. Mark Kronbeck, Principal Landscape Architect, Alliant Engineering, stated the highest point is 22 feet. Concrete modular block is the planned material. Bart Knutsen, 7120 Willow Creek Road, pointed out the beauty of the property as it stands. He suggested the building utilize hills to screen the building from folks viewing the lake. Bruce Paradis, 12530 Beach Circle, asked what the plans are for the undeveloped portion of the property. He asked if the plans would add pressure to the lake. CITY COUNCIL MEETING AGENDA October 21, 2025 Page 4 Case asked Staff for clarity on the shoreline ordinance. Klima noted the shoreline ordinance talks about dock rights along the shoreline. The property doesn’t have direct access to Bryant Lake. The City’s portion of the property would maintain its natural condition. Hans Rasmussen, 5540 Queen Avenue South, introduced himself as a representative of UNFI. He offered to answer any questions and explained the history of project discussions. The land has been assessed as developable land. MOTION: Nelson moved, seconded by Freiberg, to close the public hearing. Motion carried 5-0. Case asked if there is any plan to connect the property to existing trail systems. Klima stated the topography doesn’t allow for an access point or parking lot. There is potential to partner with the schools to access low-impact amenities such as a trail. Case stated the school could use the area for educational purposes. Case asked what the plans are for the current Residence Inn building. Mr. Ferrier stated the developers are open to multiple options, such as reusing or redeveloping the buildings. Nelson asked what clientele would be utilizing the new development. Scott Cross, General Manager of Residence Inn, stated that their model is attractive to long-term guests or international contractors. They offer one- to two-night stays on occasion. Narayanan asked if the restaurant has a drive-thru. Mr. Ferrier stated the restaurant doesn’t include a drive-thru. MOTION: Freiberg moved, seconded by Toomey, to adopt Resolution No. 2025- 097 for a Comprehensive Guide Plan Change from Medium Density Residential, Parks and Open Space, and Office to Parks and Open Space on 53.01 acres and Commercial on 6.59 acres, adopt Resolution No. 2025-098 for a Planned Unit Development (PUD) Concept Review on 6.59 acres, approve the first reading of an Ordinance for a PUD District Review with waivers on 6.59 acres and Zoning District changes from Rural to Parks and Open Space on 53.01 acres and Rural to C-Regional Service on 6.59 acres, adopt Resolution No. 2025-099 for a Preliminary Plat of one parcel into 2 lots and 1 outlot on 59.6 acres, adopt Resolution No. 2025-100 In Support of Park Dedication Fees on 6.59 acres, and direct Staff to prepare Development Agreement incorporating Staff and Commission recommendations and Council conditions. Narayanan asked what the basis was for the cited vibration impacts on the current Residence Inn building from the light rail. Mr. Ferrier stated they CITY COUNCIL MEETING AGENDA October 21, 2025 Page 5 completed multiple studies on the topic with the Metropolitan Council, which confirmed the concern for vibration impacts. VOTE ON THE MOTION: Motion carried 5-0. Getschow noted Mr. Knutsen asked questions about elevation during the public hearing. He asked the developer to show the resident sightline photos of the proposed building to address his concerns. Case added that the building will be inset in a manner to absorb most of the additional 12 feet of height. Mr. Ferrier stated little to no visual impact on the surrounding areas is expected due to setbacks, berming, natural slopes, and landscaping. B. Roers Eden Prairie Apartments by Roers Companies. Adopt Resolution No. 2025- 101 for Guide Plan Change from Industrial Flex Tech to Medium High Density Residential on 5.86 acres, adopt Resolution No. 2025-102 for PUD Concept Review on 5.86 acres, approve first reading of Ordinance for a PUD District Review with Waivers on 5.86 acres, and Zoning District Change from Office to RM-2.5 on 5.86 acres Getschow explained that Roers Companies proposed to demolish an existing five- story office building at 6436 City West Parkway and construct a 195-unit apartment building at that location. The approvals necessary include a comprehensive plan amendment, zoning district change, Planned Unit Development Concept Review, and PUD District Review with waivers, and a site plan. Nick Asta, Developer at Roers Companies, detailed the unique goals and abilities of Roers. The project is technically transit-oriented. The construction timeline is similar to that of the light rail. Case asked how long the trail will be from the light rail station. Klima noted there are two alternatives for locations, and the City is working to determine the best design fit. It is likely one-quarter to one-third of a mile wide. Justin Merkovich, JLG Architects, noted the project was unanimously approved by the Planning Commission. He detailed the reasoning for the developer’s request for density, setback, height, and parking waivers. Case asked if folks could use nearby parking lots in case of overflow parking. Mr. Merkovich stated there is no additional sparking space available within the property lines. The area has ample parking for other uses, and they have been working closely with other property owners. CITY COUNCIL MEETING AGENDA October 21, 2025 Page 6 Mr. Merkovich explained the historical context of the site and showed external renderings of the site. The project is uniquely placed to utilize public transit. Toomey noted her appreciation of the curvature of the building. She asked what was done with the demolished materials. Mr. Asta stated that any demolished materials will be recycled. Toomey stated she would like to see more definition on the top floors. Case pointed out the importance of top, middle, and bottom visual interest. No one wished to address the Council for the public hearing. MOTION: Narayanan moved, seconded by Toomey, to close the public hearing. Motion carried 5-0. Nelson asked if there are plans for a play area, green space, and flowering plants. Mr. Merkovich explained that the plans exceed requirements for exterior materials, landscaping, and open space. The outdoor space includes pools, a dog run, and potential saunas. Narayanan asked if there were solar panels. Mr. Merkovich stated that they have determined the building can benefit from solar panels. They hope to use the solar to offset gas use and work toward a fully electric building. Freiberg asked if the proposed building would be the tallest building in the area. Mr. Merkovich confirmed there are other taller buildings nearby. MOTION: Narayanan moved, seconded by Toomey, to adopt Resolution No. 2025-101 for a Comprehensive Guide Plan Change from Industrial Flex Tech to Medium High Density Residential on 5.86 acres, adopt Resolution No. 2025-102 for Planned Unit Development (PUD) Concept Review on 5.86 acres, approve the 1st Reading of an Ordinance for a PUD District Review with waivers on 5.86 acres and Zoning District change from Office to RM-2.5 on 5.86 acres on 6.59 acres, and direct Staff to prepare Development Agreement incorporating Staff and Commission recommendations and Council conditions. Case noted residents have expressed concerns about multi-family housing being sold off and flipped. Mr. Asta stated Roers is both a developer and a building management company, and their investors support the work because of the combination. The TIF documents show that Roers is committed to the building for the long run. VOTE ON THE MOTION: Motion carried 5-0. C. Roers Eden Prairie Apartments Redevelopment Plan Modification, Establishment CITY COUNCIL MEETING AGENDA October 21, 2025 Page 7 of TIF District, and TIF Plan Getschow explained that Roers Apartments is requesting Tax Increment Financing (TIF) for Roers Eden Prairie Apartments located at 6436 City West Parkway. Roers Apartments is a 195-unit mixed-income apartment project that meets the criteria for a new Housing TIF District. The project will be developed in one phase. The project proposes to include 20 percent of the units affordable to residents earning at or below fifty percent of the Area Median Income (AMI). An additional five percent of the units, which is 10 units, will be inclusionary housing units as required by City Code and will be affordable to residents earning at or below 80 percent of AMI. The remaining 146 units will be market rate. Getschow explained that the request necessitates a Redevelopment Plan modification, creation of a new TIF District No. 27, and a TIF Plan for Roers Apartments. The TIF Plan for TIF District No. 27 is the City’s planning document for the district. It spells out the objectives and policies for the district, identifies the geographic boundaries, and sets the maximum budgetary authority for the district. This planning document allows for the creation of a new TIF district. Approval of the TIF Plan does not grant any specific TIF assistance to the property owner. Assistance is granted through a separate TIF agreement between the HRA and the developer. Case explained the importance of offering affordable housing in a community and how TIF works and benefits the City. No one wished to address the Council for the public hearing. MOTION: Toomey moved, seconded by Nelson, to close the public hearing, direct staff to include the Redevelopment Plan Modification for Redevelopment Project Area No. 5, establishment of TIF District No. 27, and adoption of a TIF plan on a future City Council meeting agenda, and recommend that staff include the TIF Plan and the TIF Development Agreement on a future HRA meeting agenda. Motion carried 5-0. D. Approval of 2025 special assessments, adopt Resolution No. 2025-103 approving special assessments Getschow pointed out that each year, the City Council holds a public hearing to consider levying the Special Assessments that have been identified over the previous 12 months. This year, the Council will address a list of projects and supplemental assessments for such things as connection fees, sanitary sewer and water access charges, removal of tall grass and weeds, and removal of trees. Staff recommends Council approve the list of assessments. The City Council established the amount to be assessed for the Fall 2025 assessment hearing at its regular meeting on September 16, 2025. The total amount proposed to be assessed in 2025 is $64,596. CITY COUNCIL MEETING AGENDA October 21, 2025 Page 8 No one wished to address the Council for the public hearing. MOTION: Freiberg moved, seconded by Narayanan, to close the public hearing and adopt Resolution No. 2025-103 approving all Special Assessments present in the fall of 2025. Motion carried 5-0. IX. Payment of Claims MOTION: Toomey moved, seconded by Narayanan, to approve the payment of claims as submitted. Motion was approved on a roll call vote, with Freiberg, Narayanan, Nelson, Toomey, and Case voting “aye.” X. Ordinances and Resolutions XI. Petitions, Requests, and Communications XII. Appointments XIII. Reports A. Reports of Council Members 1. Diwali – Councilmember Narayanan Narayanan explained that Diwali is a cultural celebration symbolizing the victory of light over darkness. Many American states, schools, and other entities recognize Diwali as a legal holiday. He encouraged folks to wish the Indian community well for their celebration. B. Report of City Manager C. Report of Community Development Director D. Report of Parks and Recreation Director E. Report of Public Works Director 1. Approve purchase of 7955 Wallace Road for the utilities division Ellis explained that at the March 18, 2025, City Council Workshop, Klima presented information related to the potential redevelopment of the 60- acre Danfoss site. During that discussion, Ellis presented a proposal for the City to purchase the 2.16-acre Danfoss-owned property at 7955 Wallace Road to satisfy ongoing equipment and material storage needs for the Utilities Division. This property contains a 26,548 square-foot industrial CITY COUNCIL MEETING AGENDA October 21, 2025 Page 9 building and sits on the far western edge of the Danfoss campus on its own lot. At that meeting, the City Council expressed support for Staff moving forward. This topic was again discussed with the Council at the October 7, 2025, City Council meeting, where members reaffirmed support for negotiating a purchase agreement to acquire the property. This property purchase will be funded by Water, Wastewater, and Stormwater Enterprise funds since the Utilities Division will be the user of the building, as well as CIP funding. Narayanan pointed out that the building is a great fit for the City’s needs. MOTION: Nelson moved, seconded by Narayanan, to approve the purchase agreement for 7955 Wallace Road and authorize the City Manager to execute any documents necessary to close the transaction and purchase the property on behalf of the City. Motion carried 5-0. F. Report of Police Chief G. Report of Fire Chief H. Report of City Attorney XIV. Other Business XV. Adjournment MOTION: Toomey moved, seconded by Narayanan, to adjourn the meeting. Motion carried 5-0. Mayor Case adjourned the meeting at 8:29 p.m. Respectfully submitted, _______________________ Sara Potter, Administrative Support Specialist