This transcript features a joint meeting between the Bayport City Council and the Planning Commission. Based on the names provided and the context of the dialogue, here is the attributed transcript. [0:28] **(Silence/Background Noise)** [0:58] **(Silence/Background Noise)** [1:28] **(Silence/Background Noise)** [1:58] **(Silence/Background Noise)** [2:54] **Mayor Michele Hanson:** I'd like to call to order the City Council and Planning Commission joint meeting for the City of Bayport. We're going to start with a roll call from Sara for the Planning Commission. **Sara Taylor:** Commissioner Kelly? **Commissioner Kelly:** Here. **Sara Taylor:** Siegfried? **Commissioner Beth Siegfried:** Here. **Sara Taylor:** Oaks? **Commissioner Oaks:** Here. **Sara Taylor:** And Commissioner Kipp is idling. Thank you. Matt, will you call the roll for the City Council? **Matt Kline:** Yep. Councilmember Do? **Councilmember John Do:** Here. **Matt Kline:** Councilmember Gilmore? **Deputy Mayor Ethan Gilmore:** Here. **Matt Kline:** Councilmember Hill? **Councilmember Katie Hill:** Here. **Matt Kline:** Mayor Hanson? **Mayor Michele Hanson:** Here. **Matt Kline:** And then Councilmember Bliss is not here tonight. [3:41] **Mayor Michele Hanson:** All right, so we are going to start with a public hearing considering resolutions for annexation petitions from Baytown and preliminary plat for Bay Haven development from Pratt Homes. Dan Lied from the Planning Company is here to present it, and we also have in the audience representatives from Pratt Homes who can come up after Dan. **Dan Lied:** Good evening, Mayor, Councilmembers, and Commissioners. Dan Lied with the Planning Company. If you want to switch to the screen display, thank you. This item comes to the joint meeting tonight after being opened as a public hearing at the previous Planning Commission meeting in January. There were some changes made to the project that were different from what the Planning Commission and City Council had considered in October last year as a concept plan. We wanted to be sure with the developer’s agreement that we had all the information that the Planning Commission and City Council needed to make decisions on these items presented coherently and consistently throughout the process. So, we took a couple weeks to regroup and bring this all back in one package for you this evening. [5:13] **Dan Lied:** The applications coming forward to the city include an annexation for properties in Baytown Township to bring those into the City of Bayport, amendment of the comprehensive plan, amending the zoning map, and the specific development plans for Bay Haven at Bayport, including a PUD General Development Plan and a preliminary plat. [5:59] **Dan Lied:** Surrounding the area, you have ISD 834 and Barker’s Alps Park to the east. To the north of Fifth Avenue North is obviously the Fire Department facility as well as the state prison. To the west are rural properties as part of Baytown Township. To the south is the Inspiration development. This is somewhat of a logical extension of the City of Bayport. [6:44] **Dan Lied:** To the annexation process: the city would do this by ordinance. The criteria for annexation have been met. Planning Commission holds a public hearing, they make a recommendation to the City Council, and City Council adopts an ordinance. [7:31] **Dan Lied:** Once the annexation happens, we need to include the property as part of the comprehensive plan. This then goes to the Metropolitan Council for final approval. We’re affecting two amendments. The first is to include the property within the municipal urban service area (MUSA), where sanitary sewer and water utilities are made available. [8:16] **Dan Lied:** Utilities are available to the property to provide for development. Also, we are designating what land uses occur there. The proposal is for a residential development consisting of single-family and multiple-family dwelling units. Requirements require a minimum of five units per acre. [9:48] **Dan Lied:** For the Bay Haven development, it's proposed as a residential planned unit development District. For properties not included in the development, staff recommends they be designated as R1 single-family estate. [10:33] **Dan Lied:** The preliminary plat covers 28 acres, proposing 35 single-family villa lots and 30 to 70 townhouse or multiple-family units. It is subject to Washington County review, which includes dedication of right-of-way for Stage Coach Trail (County Road 21). [11:18] **Dan Lied:** Recommendations came back saying a signal is not warranted, but long-term, the county wants to make this a roundabout. The county is requiring the developer to dedicate right-of-way for that future construction. Utilities are available and need to be coordinated with the school district project. [12:04] **Dan Lied:** They're proposing two phases. The first is the 35 single-family villa homes. What's changed since the concept plan is the location and designation of the multiple-family component. It’s moved more central to the project to allow access on all sides by public streets. [12:50] **Dan Lied:** The developer is proposing a minimum of 30 units up to 70 total. The city would include a maximum building height of 35 feet so it's appropriate in scale to the single-family neighborhoods. [13:37] **Dan Lied:** One thing discussed was the need to provide notice to people buying homes in this neighborhood as to what's going to occur on Lot 5. City staff outlined a specific declaration recorded with each of those lots so that at closing, they are made aware of the range of development types. [14:23] **Dan Lied:** The developer also stated they'd include that in sales materials and post a sign. We're dancing around the issue of avoiding what happened to the south several years ago with the Inspiration development. From the city's standpoint, we can regulate what they're allowed to build. [15:08] **Dan Lied:** The property is significantly wooded with steep slopes. The developer is setting aside a 13.5-acre outlot that would be preserved in perpetuity through conservation measures. [15:55] **Dan Lied:** All streets within the development are to be public. There would be a sidewalk on one side of each public street. The developer is also extending a trail from Stage Coach Trail through the development that would connect to Barker’s Alps Park. [16:40] **Dan Lied:** The developer is going to undertake a quiet title action to acquire a property gap to complete this trail. The developer is requesting the cost of constructing that segment through the gap be credited to their park dedication fees. [17:27] **Dan Lied:** Regarding Washington County's recommendation for a trail along the east side of Stage Coach Trail, City staff doesn't support that because the trail doesn't go anywhere at this point. [18:13] **Dan Lied:** They surveyed 701 trees. With the plans prepared, they're removing 273 trees. Based on the city's ordinance, they'd be required to plant 308 trees to replace those. [19:45] **Dan Lied:** They are also working to identify significant trees that could be transplanted. Staff doesn't see it as practical to add more trees than are being proposed. [20:30] **Dan Lied:** Our recommendation is approval of the annexation, amendment of the comprehensive plan, approval of the PUD development stage plan, and approval of the preliminary plat, subject to 32 conditions. In discussions this afternoon, we are recommending an amendment to condition number 19 regarding the quiet title action. [21:18] **Dan Lied:** This gives the developer flexibility to move forward with Phase One while still ensuring the city will have that trail corridor completed in a timely manner. We are comfortable with the proposed change. Thank you. [22:26] **Dan Lied:** Leonard Pratt is here from Pratt Homes to present the elements of Bay Haven at Bayport. **Leonard Pratt:** Good evening. Thank you for serving the public purpose and volunteering to be Commissioners and Council people. I want to congratulate your staff on being reasonable people to work with. I also want to introduce the landowners: Jan and Brad Anderson, and Chris and Jim Otto. I have with me Dwayne Sigic, who assisted with the details; Jacob Steen from Larkin Hoffman on the legal side; and Pete Keeley, an architect who has designed over 10,000 units. Let me begin by playing a drone video. [24:46] **Leonard Pratt:** It’s one of a kind. We set our project in the open pasture land. Even with that, there's trees that have to be moved. [25:53] **Leonard Pratt:** This is a family business, Pratt Homes. Art Pratt is my partner and nephew. We've been at this for 52 years, concentrated on the Northeast area including Bayport, Stillwater, and Lake Elmo. [27:26] **Leonard Pratt:** We were given Builder License Number One in the state of Minnesota. We're going to build villa homes. We've built about 800 villa homes in the East Metro. You can see representative homes in the Royal Club in Lake Elmo and 21 Oaks in Woodbury. Those homes sell between $850,000 and $925,000. [28:57] **Leonard Pratt:** We’re also finishing a project in North Oaks where homes start at $1.2 million. We are experienced in matching the product to the setting. These are targeted at "empty nesters" who want someone else to cut the grass and remove the snow. It’s a lifestyle decision. [30:29] **Leonard Pratt:** When we pick new neighborhoods, I look for the story. Bay Haven has a very powerful story. [31:16] **Leonard Pratt:** This focuses in on what we're doing. The interior pictures represent the lifestyle. We give people choice; each home is custom designed. [32:51] **Leonard Pratt:** These prices are dictated by our customers. We still have our own carpentry crews building these houses. Most cases will have lower levels with rec rooms and extra bedrooms. Because of time, I’ll call Pete Keeley from Collage Architects forward to describe the building. [33:38] **Pete Keeley:** Thank you, Len. Good evening. We specialize in housing—apartments, 55 plus senior living. These are about creating homes with versatility and lifestyle choices. If you have a great site, don't screw it up. We tried to create a special place. [35:56] **Pete Keeley:** The building has a U-shape. On the north side, it creates a courtyard with a terrace over underground parking. These places have a sense of community. We try to take the ends of the building and step them down. It’s a three-story building that steps to two stories on the ends. [38:15] **Pete Keeley:** About 30% are one-bedroom units, the rest are two-bedroom and above. Building materials will be high quality. I’m an apartment dweller now for these same reasons. [39:02] **Pete Keeley:** We want to make a strong presence off of Stage Coach. We don't want the building to be a wall; we want a feeling of layering with front porches. Stone is the base to feel like a natural outcropping. [40:35] **Pete Keeley:** This is the low point on the site, which is why we’re bringing parking in here. This is the front door. We have a two-story data that wraps the rim of the building to bring down the scale. [42:05] **Pete Keeley:** The back courtyard steps down to two stories as it gets into the villa neighborhood. There would be fire pits, outdoor dining, and grill areas. [42:52] **Pete Keeley:** This is the east side. The building is very close to grade here. Regarding height: a story is usually 11 feet floor-to-floor. That gets us to 33 feet for the building. [44:24] **Pete Keeley:** Underground parking has 100 stalls. People in these projects generally have fewer cars than a 2:1 ratio. [45:12] **Pete Keeley:** Units range from 850 square feet to 1,950 square feet for a penthouse. Sweet spot is 1,400 to 1,600 square feet. These will rent for about $2.50 a square foot. [46:42] **Pete Keeley:** The common spaces include fitness areas and kitchens to host families. This was the 63-unit version. We also looked at a 30-unit townhouse style, but to hit density, it’s still essentially a three-story building. [50:34] **Pete Keeley:** The villa homes and apartments are complementary. Rental by choice gives people freedom and flexibility. [51:21] **Mayor Michele Hanson:** Can you be a little more clear? Is this an actual plan? Because I feel like there's very little plan other than a few pictures. Are you actually intending to do this, or is this just an idea? **Leonard Pratt:** It’s an idea to establish parameters so we know where we're going. I’m going to introduce Jacob Steen. [53:08] **Jacob Steen:** Thank you, Mayor and Council. I want to touch on conditions of approval. We’d like flexibility with the 35-foot height maximum. If we stick to 35 feet, it would be a flat roof and we’d lose character. **Mayor Michele Hanson:** What are you suggesting for the height? **Pete Keeley:** If you added 10 feet to that and said from average grade to the midpoint of the gable, it would be about 45 feet. [55:16] **Jacob Steen:** With respect to phasing, the first phase is villas, second is multi-family. We understand the city’s concerns about past developments. We’re in talks with multi-family developers. The villa section is about a 2-to-3-year buildout. We propose that the last third of those villas would be contingent on having a multi-family proposal before the city that meets requirements. That puts Pratt Homes’ money where their mouth is. **Mayor Michele Hanson:** Why wait? **Jacob Steen:** We don’t have a builder today because of uncertainty in the market. We want to find the right partner. If we need to, Len is committed to building out townhomes at high quality. Regarding the county right-of-way: they asked for a 165-foot wide roundabout. We’d lose villa homes and old growth oaks. We want to work to right-size that right-of-way. [1:01:27] **Mayor Michele Hanson:** Staff, any questions? No? Then the Planning Commission chair can open the public hearing. **Commissioner Kelly:** I’m going to open the public hearing for the Planning Commission. If you would like to make a comment, please state your name and address. [1:02:14] **Commissioner Kelly:** (Hearing no comments) I move to close the public hearing. **Commissioner Beth Siegfried:** I will second that. **Commissioner Kelly:** All those in favor? (Ayes). The public hearing is closed. [1:03:00] **Mayor Michele Hanson:** Beth, do you want to start since you're right here next to me? **Commissioner Beth Siegfried:** I have a couple questions. City Engineer, does the city have the capacity for sewer and water for this development up to 100 units? **Joe Hansen (Public Works Director):** Madam Chair, Madam Mayor, we’ve done an analysis. We modeled 97 units and we’re fairly confident your systems can supply the needs. [1:05:01] **Matt Kline:** I’d like to hear from the developer on water conservation efforts, specifically irrigation, which is a major issue for us in the summer. **Dwayne Sigic:** We would consider native plants and low-water landscaping. We use a fescue mix instead of bluegrass which doesn't need constant watering. All proposed tree species are native to Minnesota. [1:06:53] **Commissioner Beth Siegfried:** About the declaration for homeowners—how legally binding is that? **Jacob Steen:** The concern is providing notice. We’d have clear disclosures in purchase agreements and signs on the property so they are aware of the multi-family project. [1:08:44] **Commissioner Beth Siegfried:** I’m concerned. Bayport is a blue-collar town. I love the mix of people. I’m concerned about how $900,000 villas fit into our community and the Met Council’s comprehensive plan. **Leonard Pratt:** A range of housing choices matters. Why not give that upper-end product a chance in Bayport? It will carry an upper-end product there and be a net plus. [1:11:31] **Mayor Michele Hanson:** What is your research? How many people are looking for houses this expensive? Most of what you're saying is for empty nesters. **Leonard Pratt:** It’s a visceral thing after doing this for 52 years. New construction is expensive. It’s literally impossible to hit an "affordable" price band with brand new builds. These people will come downtown to eat and support the local community. [1:16:54] **Mayor Michele Hanson:** I communicated with someone earlier who said anything is going to sell. I’m not worried about that. **Commissioner Beth Siegfried:** I'm not worried about selling; I'm worried about the affordable housing problem in Minnesota. How does this help the unhoused or people who work in our community? **Leonard Pratt:** You’re giving a choice of a place to live. It’ll be a net plus through tax valuations and volunteering. [1:20:44] **Dan Lied:** To put this in context: in 2018, 78% of Bayport homes qualified as regionally affordable. The goal for new affordable units was seven. It’s challenging for new construction to be affordable because of the infrastructure costs. The plan emphasizes maintaining existing houses as the affordable component. [1:23:02] **Commissioner Beth Siegfried:** On this outlot—it's just land that would never be developed? **Dan Lied:** Correct. It’s too steep. It will be deed-restricted so it cannot be further subdivided. [1:24:36] **Councilmember John Do:** I appreciate the risk. I’m thinking about Inspiration and the 15 years it took to finish. Len, have you ever run into a situation where you could not finish a project? **Leonard Pratt:** No. I’ve hung in there through the housing crash. I developed an instinct for this. There aren't many brand-new villa homes in these river towns in competition with this. [1:30:33] **Councilmember John Do:** The location of that multi-use site—you can't avoid it when you drive in. **Leonard Pratt:** We’ve worked hard to position it. The scale cannot overwhelm. That’s why Pete dropped the outside corners. [1:32:41] **Councilmember John Do:** Price point on the multi-family? **Pete Keeley:** A one-bedroom is probably $1,400 to $1,800. Two bedrooms are $2,000 to $2,900. Penthouses could be $3,500 to $4,000. [1:35:26] **Mayor Michele Hanson:** Is there a vision for it to be condos instead of rentals? **Pete Keeley:** These are rentals. You want a long-term operator who manages it well. [1:36:30] **Mayor Michele Hanson:** I like the multi-family idea, but it feels like a puzzle piece that is up in the air. Is it reasonable for the city to put in the contract that they can't build the last 12 villas until the multi-family is done? **Dan Lied:** That's workable if the developer offers it. It inserts the city into the private market risk, but if they offer it, we can add it as a condition. [1:39:55] **Matt Kline:** Future land use wouldn't allow for villas on that multi-family site anyway; it has to be a minimum of 30 units. [1:42:15] **Councilmember Katie Hill:** A lot of my questions were asked. The water/sewer for the school was one. My brother-in-law is 26 and would probably love apartments here. [1:43:11] **Deputy Mayor Ethan Gilmore:** City staff and attorneys have gone through this. I could care less what the price points are; it’s his risk. I think it’s a benefit for the taxes it will bring. [1:44:32] **Pete Keeley:** More units means more tax base. [1:46:31] **Mayor Michele Hanson:** Len, why did the Ebenezer plan fall through? **Leonard Pratt:** They wanted a building that was too large and close to the street. I wanted to reduce the size and step the corners down. They weren't willing to do that. [1:49:22] **Councilmember John Do:** Will there be a range of finishes? Could someone build a $600,000 villa? **Leonard Pratt:** Probably not $600,000 because of the base costs, but there's a range of about $200,000 between models. [1:51:55] **Councilmember John Do:** At what point do we get in trouble with our ladder truck height? **Matt Kline:** We serve Baytown and Bayport; the ladder truck is already built to reach those heights. [1:53:50] **Councilmember John Do:** I grew up going to the Coler farm. If there could be an "Ode to the Colers" or the Andersons in the street names. **Jan Anderson (from audience):** The Colers homesteaded that. Three generations. **Leonard Pratt:** We call it Bay Haven to honor Jan and Brad’s horse farm, but we can look at "Coler Way" for a street name. [1:56:56] **Mayor Michele Hanson:** The Washington County roundabout concerns me. If they are uncompromising, you lose lots. How do you feel about that? **Leonard Pratt:** I’m going to proceed one way or the other, but we will fight to right-size it. **Jacob Steen:** That roundabout plan is probably 10 to 15 years out. We just don't want the city to give the county a blank check on our land. [2:05:54] **Mayor Michele Hanson:** Building height—are we uncomfortable with them going taller? **Dan Lied:** We can modify the condition to say "maximum building height 3 stories or 35 feet above enclosed parking unless a greater height is approved with a PUD stage plan." This gives the Planning Commission the power to say no to a "big box" but yes to good architecture. [2:09:30] **Mayor Michele Hanson:** And we add condition 33 for the 24-lot permit limit? **Dan Lied:** Yes. [2:12:15] **Eric (City Attorney):** One requirement is a cooperative agreement with Baytown about First Avenue North. [2:16:30] **Mayor Michele Hanson:** I’m feeling a little better. I like the contingency idea. If the Planning Commission is ready, we need a motion. [2:17:35] **Commissioner Beth Siegfried:** I move to adopt a resolution extending the corporate limits of Bayport to include the subject parcels... and an ordinance amending the zoning code. **Commissioner Kelly:** I second. **Sara Taylor:** (Roll call) Siegfried—Aye; Oaks—Aye; Kelly—Abstain (work conflict). Motion carries. [2:19:28] **Councilmember Katie Hill:** I move the same motion for the City Council. **Deputy Mayor Ethan Gilmore:** I’ll second. **Matt Kline:** (Roll call) Do—Aye; Gilmore—Aye; Hill—Aye; Hanson—Aye. [2:20:28] **Dan Lied:** The second motion includes amending conditions 12C, 19, and 33 as discussed. [2:21:55] **Commissioner Beth Siegfried:** I move to adopt a resolution amending the comprehensive plan... and approve a PUD General Development Plan and preliminary plat for Bay Haven at Bayport as amended. **Commissioner Kelly:** I second. **Sara Taylor:** (Roll call) All Ayes. [2:22:47] **Councilmember Katie Hill:** I’ll make the motion as read. **Deputy Mayor Ethan Gilmore:** Second. **Matt Kline:** (Roll call) All Ayes. [2:23:49] **Mayor Michele Hanson:** All right, motion to adjourn? **Councilmember Katie Hill:** I move to adjourn. **Deputy Mayor Ethan Gilmore:** I second.