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City Council - 12/07/2021APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY, DECEMBER 7, 2021 7:00 PM, CITY CENTER CITY COUNCIL Mayor Ron Case, Council Members Mark Freiberg, PG Narayanan, Kathy Nelson, and Lisa Toomey CITY STAFF City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Jay Lotthammer, Police Chief Matt Sackett, Fire Chief Scott Gerber, and City Attorney Dan Gregerson I. CALL THE MEETING TO ORDER Mayor Case called the meeting to order at 7:00 PM. All Council Members were present. II. PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION IV. PROCLAMATIONS / PRESENTATIONS A. ACCEPT DONATION FROM FRIENDS OF BIRCH ISLAND WOODS FOR IMPROVEMENTS WITHIN THE BIRCH ISLAND WOODS CONSERVATION AREA (Resolution No. 2021-92) Lotthammer stated the donation is a great example of a grassroots organization which originated about 20 years ago. Over the years, they have cared for and enhanced properties within Eden Prairie. The City has benefited from their work. They are looking to dissolve the entity and donate the remaining funds to the City. The Resolution talks about using the funds within the conservation area. Case asked if the funds would be a dedicated line item. Lotthammer confirmed the funds would be a dedicated line item. Mayor Case noted he had worked with the group since its inception. MOTION: Narayanan moved, seconded by Nelson, to adopt Resolution No. 2021-92 accepting the donation from the Friends of Birch Island Woods to be used for Improvements within the Birch Island Woods Conservation Area. CITY COUNCIL MINUTES December 7, 2021 Page 2 Motion carried 5-0. V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS MOTION: Freiberg moved, seconded by Nelson, to approve the agenda as published. Motion carried 5-0. VI. MINUTES B. COUNCIL WORKSHOP HELD TUESDAY, NOVEMBER 16, 2021 C. CITY COUNCIL MEETING HELD TUESDAY, NOVEMBER 16, 2021 MOTION: Nelson moved, seconded by Freiberg, to approve the minutes of the Council workshop held Tuesday, November 16, 2021, and the City Council meeting held Tuesday, November 16, 2021, as published. Motion carried 5-0. VII. REPORTS OF ADVISORY BOARDS AND COMMISSIONS VIII. CONSENT CALENDAR A. CLERK’S LICENSE LIST B. APPROVE FIRST AMENDMENT TO FLYING CLOUD COMMONS DEVELOPMENT AGREEMENT C. ADOPT RESOLUTION NO. 2021-93 DESIGNATING POLLING PLACES FOR 2022 D. ADOPT RESOLUTION NO. 2021-94 APPROVING DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 20 OF CITY OF EDEN PRAIRIE E. APPROVE EXCLUSIVE LISTING AGREEMENT WITH AVISION- YOUNG REAL ESTATE COMPANY F. ADOPT RESOLUTION NO. 2021-95 ACCEPTING VARIOUS DONATIONS AND IN-KIND CONTRIBUTIONS G. ADOPT RESOLUTION NO. 2021-96 PRELIMINARILY AUTHORIZING THE ISSUANCE OF SEPARATE HOUSING REVENUE BONDS FOR TWO RE EQUITIES MULTIFAMILY HOUSING DEVELOPMENTS H. APPROVE FUNDING RECOMMENDATIONS MADE BY THE CITY COUNCIL MINUTES December 7, 2021 Page 3 HUMAN SERVICES REVIEW COMMITTEE FOR SOCIAL SERVICE PROVIDERS FOR 2022 AND 2023 I. AWARD BID TO HULS BROTHERS TRUCKING INC. FOR LIME RESIDUALS HAULING AND DISPOSAL FOR THREE YEARS J. AWARD CONTRACTS FOR 2022 WATER TREATMENT CHEMICALS K. DECLARE SQUAD #233 SURPLUS PROPERTY AND AUTHORIZE REPLACEMENT VEHICLE PURCHASE L. APPROVE ENCROACHMENT AGREEMENT INTO PRAIRIE CENTER DRIVE RIGHT-OF-WAY FOR PARAVEL M. APPROVE PURCHASE OF 2022 FORD TRANSIT VAN FOR PD NEGOTIATIONS IN CAPITAL IMPROVEMENT PLAN N. APPROVE AMENDMENT TO 2019 CLEAN WATER FUND WATER EFFICIENCY GRANT TO ACCEPT ADDITIONAL FUNDS FOR WATER CONSERVATION REBATE PROGRAM O. ADOPT RESOLUTION NO. 2021-97 APPROVING 2022-2025 RESIDENTIAL WASTE REDUCTION AND RECYCLING GRANT AGREEMENT WITH HENNEPIN COUNTY P. APPROVE AMENDMENT TO AGREEMENT WITH STANTEC, INC. FOR 11579 WELTERS WAY EROSION REPAIR Q. AUTHORIZE AGREEMENT WITH USDA FOR DEER MANAGEMENT PROGRAM R. AUTHORIZE AGREEMENT WITH WSB FOR DESIGN AND CONSTRUCTION DOCUMENT PREPARATION FOR NESBITT PARK SPLASH PAD MOTION: Toomey moved, seconded by Narayanan, to approve Items A-R on the Consent Calendar. Motion carried 5-0. IX. PUBLIC HEARINGS / MEETINGS A. OLYMPIC HILLS GOLF CLUB STORAGE ADDITION by Aulik Design Build. Resolution for Site Plan Minor Amendment Review on 82.31 acres (Resolution No. 2021-98 for Site Plan Minor Amendment Review) CITY COUNCIL MINUTES December 7, 2021 Page 4 Getschow stated the applicant recently received City Council approval for an exterior façade remodel of the current clubhouse building. However, the applicant realized they need an addition for more storage. The vast majority of the plan is the same, but they need an amendment to account for increased storage. Charlie Peterson, Architect with Aulik Design Group working on the project, stated they needed to add 400 square feet on the back of the current storage building to create more storage for the property. Case stated the request was rather perfunctory. There were no comments from the audience. MOTION: Nelson moved, seconded by Toomey, to close the public hearing, and to adopt Resolution No. 2021-98 for a Site Plan Review on 82.31 acres. Motion carried 5-0. B. SHUTTERFLY by Tempus Eden Prairie, LLC. Resolution for Planned Unit Development Concept Review on 16.2 acres; First Reading of Ordinance for Planned Unit District Review with Waivers on 16.2 acres (Resolution No. 2021-99 for PUD Concept Review, Ordinance for PUD District Review) Getschow stated the applicant is requesting approval to demolish an existing office building at 11000 Viking Drive. The property is located north of I-494 and south of Lake Smetana. The property is zoned and is guided for Office use. The applicant is requesting a Planned Unit Development waiver for impervious surface coverage. Shutterfly is the current tenant of the site. The proposed alterations to the site are being requested to better meet Shutterfly’s needs. Getschow noted the applicant was at the meeting with a presentation for the Council. Terry Helland, representative of RSP Architects and member of the design team, stated the project approach is creating a path forward for Shutterfly to use the building. He noted it was originally a building used by LifeTouch. The proposal consolidates the existing campus and solves some of the parking challenges which is well below average suburban office standards. They will be introducing new green space with native grasses and plants as well as reducing the pressure on the stormwater management system by introducing more permeable surface area. Helland stated the consolidation is to make better use of the spaces as many offices remain unused. The connected building would be enhanced with a canopy, and they will extend the pedestrian connection and bike path along CITY COUNCIL MINUTES December 7, 2021 Page 5 Viking Drive. Finally, there will be parking lot improvements to bring the parking up to a current standard. Helland explained the ownership team and design team are seeking several waivers to City Code for the project. He showed a slide with an overhead photo of the property and proposed landscape plans. The new green space provides a patio for the tenant. From the street, there will be a better view of the campus. Helland stated the biggest challenge with the current campus is the parking ratio. It was originally approved at 2.8 per thousand and will be increased to almost five per thousand. He showed a slide with the proposed pedestrian path and bike path along Viking Drive and renderings of the proposed facades and landscaping. Case stated it seems pretty straightforward, albeit unique to take down a building. Nelson thanked Helland for the thorough presentation and noted it answered most of her question. Narayanan thanked Helland for the long-term lease in Eden Prairie and the additions of the bike path and greenery. He asked if they plan to put any charging stations in the parking lot. Helland stated there are presently no plans to include charging stations. Narayanan asked why, and Helland stated it hadn’t been part of the project. Karen Frey, representative with Shutterfly, stated there is not an immediate need for a charging station, but they plan to have some down the line. They plan to do special parking for carpooling. Case noted they will have proximity to the new transit station. There were no comments from the audience. MOTION: Toomey moved, seconded by Freiberg, to close the public hearing, to adopt Resolution No. 2021-99 for a Planned Unit Development Concepts Review on 16.2 acres, approve the first reading of an Ordinance for Planned Unit Development District Review with waivers on 16.2 acres, and direct Staff to prepare a Development Agreement incorporating Staff and Commission recommendations and Council conditions. Motion carried 5-0. C. THE ELLIE by United Properties. Resolution for Comprehensive Guide Plan Change from Low Density Residential and Industrial Flex-Tech to Medium High Density Residential on 6.4 acres; Resolution for Planned Unit Development Concept Review on 6.4 acres; First Reading of Ordinance for Planned Unit Development District Review with Waivers and Zoning Change from R1-22 and 1-2 to RM-2.5 on 6.4 acres; Resolution for Preliminary Plat of seven Parcels into CITY COUNCIL MINUTES December 7, 2021 Page 6 one Lot and one Outlot on 6.4 acres (Resolution No. 2021-100 for Comprehensive Guide Plan Change, Resolution No. 2021-101 for PUD Concept Review, Ordinance for District Review with Zoning Change, Resolution No. 2021-102 for Preliminary Plat) Getschow stated the applicant, United Properties, is requesting approval to construct a 239-unit apartment building at Lincoln Lane. The property is located on the east side of Eden Prairie Road about one quarter mile south of Highway 5. The property is just north of the historic Smith Douglas More House and the Applewood Pointe development. The total project site is 6.4 acres and involves the redevelopment of seven single family homes around Lincoln Lane and the removal of the street. There are industrial uses to the north and east, commercial and residential uses to the south and residential to the west. The applicant is proposing to raze the single-family homes and build a 349,800 square foot apartment building. The proposal includes a 4-story building over one level of underground parking. Scott Peterson, representative of United Properties, noted the real estate development firm is based in Minneapolis and St. Paul and has been around for numerous years. They develop an array of site types and have developed properties in Eden Prairie before. He noted Staff had been great to work with on the project. Matt Johnson, architect with DRL Group, showed a slide with a proposed rendering of the outside of the building. Nathan Kaye, designer with DRL Group, explained everything in the building is tied back to Eden Prairie. For example, the name of the building was chosen as homage to the woman credited with giving Eden Prairie its name. Elizabeth Fries Ellet was an author from the east coast who visited Eden Prairie, and, in her book, “Summer Rambles in the West” she wrote about the area being the garden of the prairie land. Johnson showed an overhead photo of the site. He explained the building will include a variety of unit types making up the 239 units. There are 404 parking spots, and there is a large courtyard of usable and open space. They hope to align the intersection and add a turn lane to create a safer area. As for sustainability, they plan to preserve 16 significant trees, install multiple electric vehicle charging stations, use stormwater recapture for watering the gardens, build a green roof, incorporate native plants, and use higher density housing to reduce urban sprawl. Most importantly, the site does include several affordable units. Johnson showed an image of the proposed site plan. Since meeting with the Planning Commission, they did add a screening fence along the east property line. Johnson showed a rendering of the open usable courtyard which would CITY COUNCIL MINUTES December 7, 2021 Page 7 include a pool, pickle ball court, bocce ball court, culinary garden bets, an outdoor kitchen, a playground, and more amenities. Kaye noted the material palette was pulled from existing buildings in Eden Prairie which includes masonry, natural colors, and an accent of darker colors. He showed a slide of the proposed external materials. Johnson continued the presentation by showing other renderings of the site. He noted the native plants they plan to incorporate in the landscaping and green roof. Case asked about the watering, maintenance, and upkeep for the green roof. Johnson stated it is low maintenance after it is established. It is watered ahead of time, but it is designed to be mostly self-sustaining overall. There would need to be minor weeding to care for the green roof. Case asked how the green roof would be accessed. Johnson explained it could be accessed by a lift from the ground below and noted it was not accessible from within the building. Nelson asked what percentage of the property are affordable units. Peterson stated they are working with the Housing and Redevelopment Authority on those details, but they are planning on 20 percent of the units being affordable units at 50 percent of the area median income. Nelson asked if the affordable housing would be spread across the different types of units. Johnson stated the affordable housing is split and prorated across a mix of units available in the building. Toomey asked if there will be a fence on the north side of the building near Birchwood Labs. Toomey noted Birchwood Labs had a concern about tenants crossing through their property to access Dairy Queen. Johnson stated they did put a fence on the north side originally, but Staff requested they remove it because it was inside of an easement. Toomey asked if they could plant trees on the north side. Klima stated some of the initial plans showed a dog run on the area. An outlet is being created to preserve a potential future road connection to Eden Prairie Road. Therefore, Staff asked for the dog run to be removed from the north side of the property. She noted the dog run included a fence which was within the easement area. Case asked if a fence could be placed in a different spot to stop people from crossing the property to access Dairy Queen. Klima stated Staff could look at alternatives later on and perhaps the fence could be located south of the outlot. She added the Staff could discuss the concerns before the second reading. Toomey asked how the developers were going to reuse materials from the homes they will take down, as noted in the proposal. Peterson stated there are CITY COUNCIL MINUTES December 7, 2021 Page 8 organizations which salvage those materials. For example, Habitat for Humanity has reused cabinetry from previous sites. Freiberg noted there is a concerned homeowners association across the intersection from the proposed site. He stated there is a lot of traffic pressure on Eden Prairie Road. Peterson stated the current traffic light is oversized for the current set up. The City’s traffic study shows the traffic light will operate at an acceptable level of service and should be through 2030. Peterson stated the plan includes a turn lane to help residents get into the site and widening the intersection to better align with the street. Additionally, the parking on the west side of the site does not face across Eden Prairie Road. Freiberg stated it can be difficult to turn left onto Eden Prairie Road and explained the City cannot do much as it is a County road. The light backs up traffic all the way to a nearby school. Case asked if Freiberg was concerned about the 400 additional cars frequenting the traffic light and its impact in relation to school traffic. Freiberg confirmed Case’s clarification. He added the right turn lane has potential to mitigate those concerns. Peterson stated the City’s traffic report showed the traffic light is acceptable and will continue to be acceptable for the foreseeable future. He added the developers liked the site because there is already a light on the intersection as it adds safety for their potential residents. Case stated there is a site near Menards which will potentially an apartment building. If the space does get developed, they have a more difficult intersection. It is a better situation in the current proposal than other sites in Eden Prairie. Donald Hanson, 7936 Timber Lake Drive, explained he is a resident who lives across the street from the proposed development. He stated he went to the Planning Commission and gave a presentation to them about natural beauty. He met with an architect on the project, and the architect stated they would consider a natural beauty site. After all, the word “eden” means natural beauty, and “prairie” includes natural elements. However, the architect did not take his comments into account. He explained black is not a natural color, and the building should be complementary to the sky which would be earth tones. Hanson explains he is concerned about the colors of the exterior. He added Applewood Pointe, the neighboring development, nailed the colors of the earth tones. Case thanked Hanson for his comments and added he was leaning in his favor. Scott Malmsten, 16309 Lincoln Lane, stated he is one of seven residents of the potential building site. He pointed out there were a few more residents in attendance from the seven current residences. He stated Applewood Pointe is a CITY COUNCIL MINUTES December 7, 2021 Page 9 great addition to the community and explained the project was a reason why the current residents wanted to go with the same property group. Malmsten noted the developers included electric vehicle charging stations in the proposed plans. Mark Thieroff, representative of Birchwood Labs, stated the developers added a privacy fence on the east side at their request, but it turns the corner at the north side and stops. Thieroff explained they would like the fence to continue on the north side. He added a planned unit development is a give and take and the developer is asking for rather substantial waivers, so they would encourage the Council to use its authority to ensure a fence on the northern side of the property. Case asked Staff to speak to the viability of a fence on the northern side. Ellis stated the outlot on the north site of the property will ultimately be possessed by the City to be used as a potential road. Therefore, Staff does not want the fence to be on City property. There is also a drainage and utility easement, and the City prefers to keep those free and clear of any obstructions. The developer would have to move the fence ten feet south of their property line which is where the parking lot would start. The developer would have to see if they could fit both a fence and parking in the area. Case asked if the fence could be a couple of feet off the parking curb. Ellis stated the parking lot goes right up to the easement line. Case asked if the City could allow the fence on the easement. Ellis stated the City could allow the fence, but someone would have to remove the fencing someday. This would create the issue of who is responsible for removing and reinstalling the fence. Considering a fence would have to be replaced down the line anyways, is there a planning use of the easement or northern portion of the property sooner than ten or fifteen years. Ellis stated he would prefer for the developer to attempt to place the fence on their side of the property. If the parties have exhausted all options, then there could discussion about putting a fence on the easement. Case thanked Ellis for looking out for the best interests of the City. He asked if there could be a compromise where both Staff and the developers could give up a foot or so. Ellis confirmed Staff could consider such a compromise. Ann Berne-Rannow, 17150 Cedar Crest Lane, stated she drives on Eden Prairie Road all of the time. There are ten stop lights between her house and the Community Center, and having a more frequented traffic light there would impact her. It is a tough commute up and down Eden Prairie Road, and more traffic creates more issues. She stated the traffic light does not seem like it could handle so much more traffic. MOTION: Nelson moved, seconded by Freiberg, to close the public hearing. CITY COUNCIL MINUTES December 7, 2021 Page 10 Motion carried 5-0. Freiberg noted one of the trees to be removed is 795 caliper inches. He added he is not a fan of the cash in lieu of option for tree removal. He noted some of the beautiful trees on the proposed site, and he would like further consideration to save more of the trees in the area. Freiberg asked if there is an alternative. Klima stated saving trees becomes challenging on the site as it is a majority parking lot. She added one of the proposed waivers is in regards to the landscaping requirements. City Code allows the opportunity for the tree replacement to be done as a cash in lieu of option, a change the Council enacted a few years ago in response to problems at infill sites or overgrowth. Looking at the total number of caliper inches provided on the site, it would exceed the required amount by City Code. Nelson thanked Klima for the clarification on the trees and noted her appreciation of the landscaping. She added she likes the planned outdoor amenities for the unit, especially post-COVID-19. Nelson asked if there was enough space between the Smith Douglas More House and the edge of the proposed site. Klima stated the plan does meet the setback requirements for the zoning district. Case asked if the Council pushes back on the design, what kind of flexibility does it have at the current point in the process. Klima stated if there are specific recommendations by the Council, Staff can work on the input with the developers before the second reading. The proposed building materials do comply with the building material requirements. Case stated the Council are not design experts, but it does represent the people of the City. He is not asking for a complete redesign but for something still remarkably different. Klima stated Staff has worked with developers on similar requests in the past between the first and second reading, so Staff can do something similar for this proposal. Narayanan asked if they are going to have charging stations. Toomey stated they are going to have twelve charging stations. Narayanan stated he was pleased with the amount of charging stations. Case thanked Narayanan for his continued persistence in relation to charging stations. Toomey asked when the traffic study was completed and noted COVID-19 has affected traffic. Ellis stated the City used pre-pandemic traffic volumes and inflated the numbers up to 2030. The analysis indicated the intersection would be a consistently high level of service. Ellis noted the City is looking at traffic problems at the intersection of Eden Prairie Road and Highway 5 and resolutions for the issue which is causing spill back issues at neighboring intersections. CITY COUNCIL MINUTES December 7, 2021 Page 11 Freiberg thanked Ellis for his clarification. Nelson stated the black and white comes with a very modern, and she would prefer for it to look more like the Smith Douglas More House than the storage building. With some color changes, it could be perfect. Case thanked the developers for honoring Eden Prairie’s history in the naming of the building. He noted it would be helpful to have a plaque with the same information in the lobby. Case stated the building feels stark and commercial, likely due to the white panels. Applewood Pointe did a better job of representing the gables of homes in the area. Case noted his preference for the varied decks. Additionally, he noted the brown and black seems very dark for the exterior. Getschow stated the developer may have a response to the color question. Peterson stated they are looking at over one acre of green space in the plan. Additionally, they are planning to plant eleven trees at Applewood Pointe. Peterson explained they spent a lot of time designing the exterior, reviewed Hanson’s presentations, completed a site walk, and met with people from Smith Douglas More House. He noted there is no white anywhere on the project, and the colors they chose are primarily earth tones. As for the parapet roof, it is economically difficult to do a gabled roof with affordable units with the scale of the building. The parapet is a nod to the gable roofs and a step away from a straight line roof. Additionally, the color palette does complement the sky. Case asked if the rendering on the presentation, which appeared white, is actually the tan color on the sample materials board. Kaye stated the rendering is meant to depict direct sunlight hitting the building. He explained the darker gray panels would be only on certain vertical portions of the building while the majority of the exterior would be tan and light gray. Case stated the cream portion of the building still looked industrial and cold rather than warm like Applewood. Toomey asked about the lighter color not shown on the panel. Kaye stated there are only two colors of fiber cement being used, neither of which are white. Case explained the Council has to live with the decision for quite some time. He noted the Council’s comments are somewhat subjective, but it would like for it to be slightly altered and more pleasing. Toomey added it is a large building and large project which will be in Eden Prairie for many years to come. She stated she would like for there to be more character. Case added he was fine with the colors, but he agreed it could use more character. He proposed there could be more stonework or another material on the verticals. The parapet adds to the starkness of the building. CITY COUNCIL MINUTES December 7, 2021 Page 12 Nelson stated the parapets do not bother her. She stated she does not want the building to look old-fashioned, but she believed it would be nicer if there was more blending. She encouraged the developers to look more at buildings in the area. Case asked Klima to bring back a few possibilities for the project with potential costs for the second reading. Freiberg asked if Case was asking for a color change or a total redesign. Case stated he was talking about color but would like other possibilities for the roof line. Nayaranan stated it looked like there was too much cream and there needed to be more detail. Freiberg stated it does not bother him the same way it bothers Case. He noted his approval of new color proposals, but he doesn’t see merit in a total redesign. Nayaranan stated he supports the idea of affordable housing and is excited about the green roof. He appreciates the charging station and the community space in the center of the development. Nelson stated she was not looking for a complete redesign but taking another look at the color and material choices would be wise. She explained she likes the project overall and the green elements. Overall, the change doesn’t need to be drastic. Peterson stated he supports a fence on the north end of the site and would like to see a fence on the northern property line. The developers have looked at putting a fence past their proposed curb, and it is incredibly difficult. It would negatively impact snow removal, the green space area, and the residents. It is an easier decision to have it on the property lines in terms of working with the neighbor. Overall, it would be clearer to have a fence on the northern property line. Case asked what the ramifications would be of no fence on the north side. Klima stated the concern expressed by Birchwood Labs and its representatives is having their property be a shortcut for access to commercial uses farther up on Eden Prairie Road. There is a designated trail to access those facilities, but the City cannot ensure people will not take a shortcut. The eastern property line divides land on the proposed site and undeveloped land owned by Birchwood Labs. The northern property line divides land on the proposed site and developed land owned by Birchwood Labs. The developed land to the north could discourage shortcuts. Case asked Staff if there was an option for a fence on the north property line which could be easily removed in future years. Ellis asked if the question was referring to the building of a fence on the developer’s land or on the City’s oulot. CITY COUNCIL MINUTES December 7, 2021 Page 13 Peterson stated the fence would be on the other side of the outlot. He explained they have worked extensively with the City in regards to the outlot. Ellis stated he does not know if the City has allowed a private fence to be built on public property before. Toomey suggested the developer plant bushes and put up a sign warning people against trespassing. Ellis stated he does not see a huge need for a fence or barrier on the north side of the proposed development. The argument saying people may use the northern property as a shortcut rather than the adjacent trail doesn’t make sense. Mike Shelton, CEO and President of Birchwood Labs, stated the north boundary is a tree-covered hillside. Therefore, it is a perfect spot for people to walk through to the Starbucks, Burger King, and Dairy Queen. Additionally, the easement goes up to a pond off Fuller Road which is a danger for children. Case asked if Shelton’s preference would be for the fence to be on the curb of the new development. Shelton stated the property line would be a great location for a fence to eliminate traffic. Shelton added he lives in Edina and noted the City recently had a child drown in a retaining pond. Shelton stated Birchwood Labs was the first building on Fuller Road, and they have been providing jobs and taxes for the City for over fifty years. They merely want a fence to protect their property. Klima showed a slide with a picture of the overhead view of the proposed site. She pointed out people would have to navigate a couple of parking lots and green spaces to access the businesses or they would have to use the trail on Eden Prairie Road. Case asked Ellis why the City wouldn’t consider putting up a fence if it was a safety issue for children, if it made the project work, and if the proponent were to pay for it. Ellis stated the City has not fenced any other development for the proposed issues. He noted he is questioning the legitimacy of the problem. Even if the City puts in a fence, a child may still climb the fence. If a fence needs to go in, it should be on the owner’s property. If the fence is put on the City’s property, then it is the responsibility and liability of the City. Additionally, if they add a road down the line, the City is creating a future issue of where to move the fence. If there is a real need for the fence, it should go on the developer’s property. If there is an option between putting it on the City easement lot or the drainage and utility lot, he would prefer for it to go on the drainage and utility lot. Case asked Council if it would be interested in directing Staff to evaluate potential compromises or other options for the fence. Nelson agreed with the direction for Staff. CITY COUNCIL MINUTES December 7, 2021 Page 14 MOTION: Toomey moved, seconded by Narayanan, to adopt a Resolution for a Guide Plan Change from Low Density Residential and Industrial Flex Tech to Medium-High Density Residential on 6.4 acres, adopt a Resolution for a Planned Unit Development Concept Review on 6.4 acres, approve the first reading of a Planned Unit Development District Review with waivers and Zoning Change from R1-22, and I-2 to RM-2.5 on 6.4 acres, adopt a Resolution for a Preliminary Plat of seven parcels into one lot and one outlot on 6.4 acres, and direct Staff to prepare a Development Agreement incorporating Staff and Commission recommendations and Council conditions including color variations and fence possibilities on the north side. Motion carried 5-0. Case thanked the residents of Lincoln Lane for their time in Eden Prairie and hoped they would remain in Eden Prairie. D. CODE AMENDMENT FOR NEIGHBORHOOD COMMERCIAL by City of Eden Prairie. First Reading of Ordinance to Amend City Code Chapter 11 Relating to Gas Stations within Neighborhood Commercial Zoning District (Ordinance) Getschow stated at its October 26, 2021 meeting, the City Council directed Staff to prepare and bring forward an amendment to the City Code which removes gas stations as a permitted use in the neighborhood commercial zoning district. Klima stated the text amendment would add language to Section 11.25 stating gasoline/convenience stores are not a permitted use in the neighborhood commercial zoning district. The City currently has three gasoline/convenience stores in neighborhood commercial zoning districts, and there would be additional language added to allow those to remain as permitted uses. The amendment also addresses what design standards should look like for gas stations and removes the neighborhood commercial zoning district from the list. Klima noted the Planning Commission voted 9-0 to recommend approval of the project at the November 8, 2021 meeting. Klima showed a slide with a map of parcels zoned neighborhood commercial zoning districts throughout Eden Prairie. Out of parcels zoned commercial, 7 percent of the acreage is zoned as neighborhood commercial zoning districts. She also showed a map of the 13 gas stations located in Eden Prairie broken down by zoning district of each gas station location. Narayanan asked if the zoning defines hours of operation for the convenience stores. Klima stated the neighborhood commercial zoning districts refers to gasoline/commercial convenience stores. In the other section up for amendment, it does not give a defined use. The Planning Commission talked about the issue as well, and there was a general consensus that if there are gas CITY COUNCIL MINUTES December 7, 2021 Page 15 pumps then it would be a gas station. Lima stated the Ordinance does not address operating hours for convenience stores. Case stated the Council has always been concerned about landowner rights. He asked if as long as the landowner can fully actualize the value of their property by proposing other permitted uses, then the City Council would not be putting an undue burden on the landowner with the Ordinance. Gergerson stated the Ordinance in question creates a couple of legal nonconformities. The current owners of neighborhood commercial zoning districts with existing gas stations can repair or renovate, but they cannot enlarge. There are other permitted uses in the code which landowners could use the land for. Case stated there are other neighborhood commercial zoning district parcels across the City which have other permitted uses allowing the landowner to actualize the value of their land and not submit them to an undue burden. Gergerson stated Case was correct. There were no comments from the audience. MOTION: Narayanan moved, seconded by Nelson, to close the public hearing and to approve the first Reading of the Ordinance to Amend City Code Chapter 11 relating to Neighborhood Commercial Zoning District Gas Stations. Motion carried 5-0. E. FIRST AND SECOND READINGS OF ORDINANCE NO. 15-2021 APPROVING 2022 FEE SCHEDULE FOR ADMINISTRATION OF OFFICIAL CONTROLS AND RESOLUTION NO. 2021-103 APPROVING SUMMARY ORDINANCE FOR PUBLICATION Getschow stated this Ordinance establishes a fee schedule for the City’s costs in administering Official Controls pursuant to Minnesota Statutes Section 462.353, Subd. 4. He added most of the fees are related to Eden Prairie’s building codes. There were no comments from the audience. MOTION: Nelson moved, seconded by Freiberg, to close the public hearing and to approve first and second readings of the Ordinance Updating the Fee Schedule for Administration of Official Controls and adopt resolution approving the Summary for Publication. Motion carried 5-0. F. 2022 FEE RESOLUTION 2021-104 FOR CITY SERVICES (Resolution No. 2021-104) Getschow stated this Resolution updates the fee schedule for the City’s services not covered by ordinance. The fees are for various Parks and CITY COUNCIL MINUTES December 7, 2021 Page 16 Recreation services, public fees for police and fire services, rental fees, and other similar fees. Case asked if there was a percentage increase for the fees or if they stayed the same. Getschow stated there were not any increases in fees beyond the three percent inflation. There were some where Staff would compare its fees to other cities to ensure Eden Prairie’s are in the same range. For the most part, the fees were increased in the two or three percent range. Case stated the City gathers funds to do its work from taxes and fees and tries to keep a balance so not all of the burden is on taxpayers. There were no comments from the audience. MOTION: Narayanan moved, seconded by Freiberg, to close the public hearing and to adopt the 2022 Fee Resolution. Motion carried 5-0. G. RESOLUTION NO. 2021-105 CERTIFYING 2022 PROPERTY TAX LEVY, ADOPTING 2022 BUDGET, AND APPROVING 2022 HRA TAX LEVY Case stated the Council had done many important things throughout the evening, none of which were more important than setting the budgets and levy to ensure the residents have a quality standard of life. Getschow introduced Tammy Wilson, Finance Manager, to make the Staff presentation. Wilson stated the purpose of the meeting was to solicit public input on the City’s proposed tax levy and budget for 2022. It is a requirement of State law and must be held after property owners receive their proposed property tax statements for the following year. Wilson stated Staff has met with Council multiple times to discuss both the 2022 and 2023 budget, but the current presentation and discussion is regarding 2022 budget. The proposal is for a $53 million budget with a $50.1 million general fund, $2.5 debt, and $400,000 in capital levy. The market value has increased from 2021 to 2022, and the adjusted net tax capacity increased as well. The City’s tax rate is 32.32 percent for 2022. Wilson showed a slide breaking down the general fund revenue including taxes, license and permits, intergovernmental revenue, charges for services, and the revenue. She noted the largest portion in the licenses and permits category relates to cable television. The City proposed a decrease in charges for services due to the impact of COVID-19 on the Community Center. Staff anticipates some of the American Rescue Plan Act funds from the intergovernmental revenue portion will be used to fill in for the loss in revenue for charges in services. Overall, there is a proposed 9.6 percent increase in CITY COUNCIL MINUTES December 7, 2021 Page 17 general fund revenues. Wilson stated the proposed general fund expenditures is $52.6 million with an increase of $2.5 million or 5.1 percent. The budget maintains services from prior years. The budget also includes a 3 percent base wage increase for City employees and new positions of dispatcher, assistant fire chief, and forester. It also includes a health insurance engagement, a contract with Hennepin County for social service outreach employee for Police, worker’s compensation insurance increase, increased technology services for body cameras, increase resources for Yard Waste Drop-Off Site programs, and increased election budget due to 2022 being an election year. Wilson showed a pie chart of the general fund expenditures. Wilson stated the proposed debt summary includes a $2.5 million levy. Eden Prairie has not changed the amount since 2017. The overall property tax levy is an increase of 4.7 percent. She showed a slide of the City tax impact based on the property type. There would be an increase for residential and apartment properties, and commercial would see a decrease. The median residential home would see an increase of $82, an apartment building valued at $5 million would see an increase of 6.9 percent, and a $2 million commercial property would see a decrease of $615. Case noted the City collects taxes off the entire tax base. Commercial went down not only because of their value decrease, but also because the State sets a formula which the City does not have a say in. Narayanan stated the taxes being addressed is only the City’s portion of the taxes. He explained the residents will still be impacted by other tax changes. Case asked what proportion of residents’ taxes is accounted for by the City. Staff stated the City accounts for 27 percent of the taxes. Wilson explained a median residential home in Eden Prairie would see an increase in $199 for their property taxes. Furthermore, apartments would see an increase of 4.6 percent, and a commercial building would have a 4.9 percent decrease in property taxes. Narayanan stated the City is responsible for $82 of the $199 for median residential homes. For a typical residential property, the County receives 31 percent of the property tax, School District 272 receives 34 percent of the property tax distribution, and other taxing districts are responsible for 8 percent. Case stated the City of Eden Prairie may have slightly higher tax rates than the surrounding areas, but its median price house is also higher than the surrounding areas. CITY COUNCIL MINUTES December 7, 2021 Page 18 Wilson stated for commercial properties, the County receives 14 percent of the property taxes, the City receives 12 percent, the State receives 22 percent, and the school district receives 15 percent. 33 percent of the commercial property tax distribution accounts for fiscal disparities, and another four percent is due to taxing districts. Wilson stated the monthly cost of City services for the median residential home is $118.67. She showed a slide breaking down the cost of the City services based on various portions of the City’s general fund services. Case noted his appreciation for the slide and stated the City provides an array of quality of life services for its residents. Getschow stated the City puts together a two-year budget for efficiency purposes, but the discussion at hand is only for 2022. Getschow showed a slide with an overview of the 2021 schedule used to determine the budget and levy. He noted the first step in the process was a community survey. The process also included various discussions with the Council and Staff nearly every month. Getschow stated the key was to maintain the high quality of life in Eden Prairie. He noted the City ranks very well throughout the country. Additionally, it is a very safe City, and the residents wants the City to continue investing in public safety. There are concerns about upcoming light rail and public transportation changes. The community parks and natural environment continue to be nationally-renowned. Getschow stated there were six main goals in the development of the budget. In the goal of community well-being and safety, the City have invested into public safety. The budget includes adding police officers, a social worker, a dispatcher, and an assistant fire chief. The City is also focused on providing high quality and efficient services and noted they use quite a bit of technology to provide around-the-clock services. The City takes a lot of pride in investing in its employees, and those employees, in turn, provide exceptional services. A preserved, beautiful environment is another goal of the budget, so they are adding to the forestry program with an additional position. A sense of community was addressed by providing more community events and working on a race equity plan. Eden Prairie is a leader in sustainability with its water usage, electric fleet, or recycling efforts. Finally, Eden Prairie has seen a growth in its tax base. The City has been reaffirmed with the highest bond rating possible, it has some of the lowest debt, and it has been able to build up the business development funds. Getschow noted there is much more to the budget such as trails and elections. Getschow stated the proposed budget is a 4.8 percent increase and the proposed levy is 4.7 percent. He noted it is higher than what the City has had CITY COUNCIL MINUTES December 7, 2021 Page 19 historically. Because of the flat growth in commercial property and robust growth in residential property, there is a bit of a shift. Getschow showed a slide comparing 2021 city tax levies across similar cities in the metro area. Eden Prairie is in the bottom third of the 20 comparison cities. Getschow also showed a slide comparing 2022 city tax levies for Eden Prairie and similar- sized cities. Getschow stated the City is part of a program where it has to put a portion of its value into a Metro-wide pool. Then the property tax is redistributed. Because Eden Prairie has seen positive growth in commercial property over the decades, Eden Prairie is the number four contributor. The concept is intended to ensure cities avoid luring businesses to its own city in hopes of tax breaks or more employment opportunities. It does ultimately affect the residents’ taxes. Without the fiscal disparities, the City tax would be 7.5% less for a median value home in Eden Prairie. Case asked for clarification on the community survey about comments made related to public transportation and the light rail. Getschow stated people are excited about seeing the light rail in the community. There were a few with concerns about how the community could be different with the addition of a light rail. Case stated Eden Prairie has received and will continue to receive American Rescue Plan Act funds. He asked if the budget is relying too heavily on those funds which would result in a heavier tax increase in 2023. Getschow stated the one-time revenue is being used for one-time expenses or loss of one-time revenue. Case noted tax rates are difficult for people to understand. He explained a healthy community would have a declining tax rate. The tax rate for 2022 is lower than in 2018, which is significant and a reflection of responsible spending. Steven Wagner, 9325 Wilderness Cove, stated his tax increase for 2022 is 11.25 percent while his property value has increased 7.2 percent. He explained he attended the meeting to get a better understanding of the increase. Getschow stated the City rate is lower than the County rate. The increase in value for Wagner’s home is quite a bit higher than average. Getschow recommended Wagner meet with the assessor for more clarification and information about the tax increases. Case thanked Wagner for his questions. Case asked if Wagner agrees most of the 11.25 percent increase is accounted for by the increase in property value. Wagner stated he did not do the math to answer the question. Case explained the City collects taxes from the whole tax base. When the state provides a formula for a lower commercial tax rate, then it affects the residential CITY COUNCIL MINUTES December 7, 2021 Page 20 properties. Combined with a hefty home value increase, it ultimately resulted in Wagner’s large property tac increase. Case encouraged Wagner to meet with the assessor to have more of his concerns addressed. MOTION: Narayanan moved, seconded by Toomey, to close the public hearing, adopt a resolution certifying the 2022 Property Tax levy to be $43,102,554, approve the 2022 Budget of $55,617,390 as reviewed by the Council, and approve the HRA tax levy and budget of $200,000. Narayanan stated there is inflation due to lack of materials. He asked if the shortage will impact the City in the coming year. Getschow stated Staff kept material scarcity in mind, and the budget can withstand the potential pressures of inflation. Narayanan stated the number one thing brought up by residents is quality of life in Eden Prairie. He stated the Staff has done an awesome job in keeping the taxes as low as possible while maintaining a high level of service quality. For example, snow plowing is very quick. He stated he is proud to be a member of Eden Prairie’s City Council. Case stated Staff has done an excellent job. He noted the budget is a culmination of the Council’s involvement and community input which started back in March. VOTE ON THE MOTION: Motion carried 5-0. H. VACATION OF EASEMENTS (Resolution No. 2021-106) Getschow the developer of Outlot B, Castle Ridge 3rd Addition has requested the vacation of the drainage and utility easements over this lot to facilitate the plat of Castle Ridge Fifth Addition for the new Flying Cloud Commons development. There were no comments from the audience. MOTION: Nelson moved, seconded by Freiberg, to close the public hearing, and adopt the Resolution vacating Drainage and Utility Easements. Motion carried 5-0. X. PAYMENT OF CLAIMS MOTION: Toomey moved, seconded by Freiberg, 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.” CITY COUNCIL MINUTES December 7, 2021 Page 21 XI. ORDINANCES AND RESOLUTIONS XII. PETITIONS, REQUESTS, AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBER B. REPORT OF CITY MANAGER C. REPORT OF COMMUNITY DEVELOPMENT DIRECTOR D. REPORT OF PARKS AND RECREATION DIRECTOR E. REPORT OF PUBLIC WORKS DIRECTOR F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS XVI. ADJOURNMENT MOTION: Narayanan moved, seconded by Freiberg, to adjourn the meeting. Motion carried 5-0. Mayor Case adjourned the meeting at 9:47 p.m. Respectfully submitted, ___________________________ Nicole Tingley, City Clerk