This transcript reflects the Cottage Grove City Council meeting held on May 17, 2023. [00:00] **Mayor Myron Bailey**: Foreign 2023 Cottage Grove City council meeting which I am calling to order. The first order of business is the Pledge of Allegiance so we please rise. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation under God, indivisible with liberty and justice for all. All right, will the clerk please do the role? [00:00] **Tammy Anderson (City Clerk)**: Councilmember Khambata? [00:00] **Councilmember Tony Khambata**: Here. [00:00] **Tammy Anderson (City Clerk)**: Councilmember Dennis? [00:00] **Councilmember Steve Dennis**: Here. [00:00] **Tammy Anderson (City Clerk)**: Councilmember Thiede? [00:00] **Councilmember Dave Thiede**: Here. [00:00] **Tammy Anderson (City Clerk)**: Councilmember Olsen? [00:00] **Councilmember Justin Olsen**: Here. [00:00] **Tammy Anderson (City Clerk)**: Mayor Bailey? [00:00] **Mayor Myron Bailey**: Here. All right, next on our agenda this evening is Open Forum. This is the opportunity for anybody who wants to speak on something that's not on tonight's agenda is welcome to do so. We did have a sign-up sheet out in the entryway and we did have one person at the moment that signed up, but it's regarding something that's on tonight's agenda so I would hold off on that particular individual, Patrick Balmuth. Yeah, so we'll hold off on that one until we actually have our conversations about that topic. If anybody else that was in the audience that did not sign up that wants to speak before the council you can do so at this time. We do limit it to three minutes. Is there anybody in the audience that would like to speak on something that's not on tonight's agenda? All right, seeing none, we'll go ahead and close the open forum and we'll move to number five which is adoption of the agenda. [00:00] **Councilmember Steve Dennis**: Motion to adopt the agenda. [00:00] **Councilmember Justin Olsen**: Second. [00:00] **Mayor Myron Bailey**: Motion by Councilmember Dennis, second by Councilmember Olsen. All those in favor signify by saying aye. (Group: Aye). Opposed? Motion carries. Next is six, we have three presentations this evening. The first one is recognizing Jared Wright's years of service on the Planning Commission. I've known Jared for a long time here, so what I'd ask maybe for Council to do is have Jared and his wife—anybody else you want to bring up with you—come up to the front here and then we'll meet you down in the front for a little recognition. [00:00] **Mayor Myron Bailey**: All right, so just as a comment here, both of these two individuals here have been very active in our city in a variety of ways, whether it's taking pictures or getting involvement through Strawberry Fest commissions. I'm going to turn it over to the liaison for the Planning Commission to talk a little bit about Jared, but I just wanted to mention the reason we're doing this is they're moving out of Cottage Grove. We're very sad to see that happen to be honest with you, but it's better for the family. I'm going to turn it over to the council liaison Tony Khambata to say a few words. [00:00] **Councilmember Tony Khambata**: Well Jared, I am a little disappointed that we never got to ride motorcycles together. I had the pleasure of working with you on Planning Commission as chair and in the years that I worked with you, you were always insightful, you always brought good questions to the table, and I truly believe you were a large part of the process that has led to a considerable amount of economic development that we've experienced in our community. I think you were a big part of that and you've got big shoes for me to try and fill here in the next couple of weeks. Sincerely, as somebody who had the pleasure to work with you and help mentor you, I really am going to miss you. I think Steve's got a couple words for as well. [00:00] **Councilmember Steve Dennis**: Thank you Councilmember Khambata. Well, you know I want to talk a little bit about the character of the man because here it was back in 2018 when you ran for City Council and this gentleman stepped forward because he wanted to make a difference. He liked the direction the city was going in if I recall, and just had a very, very positive aura and spirit in everything that you did. Getting a chance to get to know you in that fashion, you actually created a friendship with many of us here. Having been a long-term liaison for the Planning Commission, it was my pleasure to in essence interview you and offer you a chance to join us with the rest of the council's support. Then when you went away for a deployment, you and I kept in touch and when you came back you were willing to be part of the team again. Everything he did was professional, it was dignified, it was respectful, it was caring. I wanted to mention I've got a little something for you here tonight... it's a Red Line Hot Wheels 1968 of your car [Mercury Cougar], almost the same color blue. A huge thank you on behalf of all of us here in the community. [00:00] **Jared Wright (Planning Commission)**: Honestly, just thank you. I didn't expect to run again to see you guys and then you guys became like very good friends and family and I definitely learned a lot though too. So I just thank you very much for your friendship. Hopefully I can make it up here and still visit you guys. Thank you, you guys got a great City here. [00:00] **Mayor Myron Bailey**: All right, so I will just mention as we're presenting this plaque to you on behalf of all the citizens of Cottage Grove, our staff and the council—thank you for your years of service and good luck where you're going and be safe. All right, the next presentation this evening is the Emergency Medical Services Week Proclamation. Our Director of Public Safety will kick this off, Pete Kerner, and then Councilmember Dennis is going to read the actual proclamation. Pete, welcome. [00:00] **Pete Kerner (Public Safety Director)**: Good evening Mayor and Council. I'll keep this relatively short. I think everyone will be impressed to hear what a great paramedic service we have. I'm extremely proud of our service. We started back in 1974 as the first agency that had police officer paramedics. We transitioned to the fire department now so we have fire paramedics. I’d put our services up against any community in the state. Last year our fire department talked about doing the "Heart Safe Community" so we did kick it off where the Council supported the letter of intent with the Minnesota Department of Health. With the heart safe communities, we just want to increase community and public awareness, placing the AEDs wherever people live, work and play, and educating the public on how to administer CPR. Our initial goal was 2,000 people to be trained in hands-only CPR... since May of 2023 we've already had 1,600 people. We set up a goal of 25 events. Right now we have 53 AEDs identified in town. Overall, we are above the scoring. I'll turn it over to member Dennis. [00:00] **Councilmember Steve Dennis**: Thank you Mayor and thank you Director Kerner for the great presentation. It’s my pleasure to designate the week of May 21 to 27, 2023 as Emergency Medical Services week. [Reads Proclamation text]. Mayor, I will make the motion that we designate this week Emergency Medical Services. [00:00] **Councilmember Dave Thiede**: Second. [00:00] **Mayor Myron Bailey**: Motion by Councilmember Dennis, second by Councilmember Thiede. All those in favor signify by saying aye. (Group: Aye). Opposed? Motion carries. Thanks Pete. The final presentation this evening is Public Works Week Proclamation and our Director of Public Works Ryan Burfeind is going to walk us through this, and then Councilmember Olsen is going to read the proclamation. [00:00] **Ryan Burfeind (Public Works Director)**: Thank you Mr. Mayor, members of the Council. So next week is National Public Works week. This is a great time of year where we can thank all those Public Works professionals that make sure you've got water, sewer, the roads are plowed, and parks are maintained. This winter in particular was the third snowiest winter of all time. I'm very thankful for our staff's dedication. I will turn it over to Councilmember Olsen. [00:00] **Councilmember Justin Olsen**: Thanks Ryan. Mayor, I appreciate the opportunity here to read this Proclamation declaring National Public Works Week for May 21 through 27, 2023. [Reads Proclamation text]. I'll make the motion that we declare Public Works week. [00:00] **Councilmember Tony Khambata**: Second. [00:00] **Mayor Myron Bailey**: All those in favor signify by saying aye. (Group: Aye). Opposed? Motion carries. Thank you Ryan. Next on our agenda is number seven which is Consent. Is there anything Council would like to pull? [00:00] **Councilmember Steve Dennis**: Mayor, I'd like to pull item G, which is the investment advisory services. [00:00] **Mayor Myron Bailey**: All right, seeing no other pulls, we'll turn it over to Councilmember Dennis regarding investment advisory services. [00:00] **Councilmember Steve Dennis**: Thank you, Mayor. This was a process that the investment committee—myself, Councilmember Khambata, our Finance Director Brenda Malinowski, and our City Administrator Jennifer Levitt—worked on. We put out bids looking for an investment management company to help us manage assets and fund balances. We interviewed three different firms and looked at background, staff qualifications, and philosophy. The one we decided to go with was an organization called PMA Asset Management. They are a local organization. One of the primaries is Pat Harris, who understands what we deal with as public officials. I'll invite our Finance Director Brenda to come up and talk about the negotiation process. [00:00] **Brenda Malinowski (Finance Director)**: Mayor, members of the Council. We were able to negotiate that rate down one basis point for the first 25 million. The other value-added is that PMA also handles the 4M fund through the League of Minnesota Cities, which they founded. This will give us synergy and streamline our cash investment. [00:00] **Councilmember Steve Dennis**: I’ll ask the Council to accept PMA as the company to work with tonight. [00:00] **Councilmember Tony Khambata**: Motion to approve. [00:00] **Councilmember Justin Olsen**: Second. [00:00] **Mayor Myron Bailey**: All those in favor signify by saying aye. (Group: Aye). Opposed? Motion carries. Next is eight: Approve Disbursement. 8A is to pay the bills. [00:00] **Councilmember Steve Dennis**: Motion to pay the bills. [00:00] **Councilmember Dave Thiede**: Second. [00:00] **Mayor Myron Bailey**: All those in favor signify by saying aye. (Group: Aye). Opposed? Motion carries. Ten is Bid Awards: Summers Landing 3rd and 4th Editions Final Street Improvements. Welcome back, Ryan. [00:00] **Ryan Burfeind (Public Works Director)**: Mayor, members of the Council. The low bidder is OMG Midwest Incorporated, doing business as Minnesota Paving and Materials, with a low bid of $366,575. Bituminous and concrete prices are coming down, so we were happy with these results. [00:00] **Councilmember Dave Thiede**: Motion to approve. [00:00] **Councilmember Justin Olsen**: Second. [00:00] **Mayor Myron Bailey**: Motion carries. Next is 11, our regular agenda. The first item is 7404 Lamar Avenue: proposed restaurant minor subdivision, rezoning, site plan review, and variance. Mike Morosa is going to take us through this. [00:00] **Mike Morosa (City Planner)**: Good evening, Mayor and Council. Wayne Butt is the applicant for a minor subdivision, rezoning, site plan review, and variance. The site is approximately nine acres at 7404 Lamar Avenue. Historically it was a landscaping business. The applicant purchased it in 2021. The applicant submitted an application for a catering establishment, but the documents reference a restaurant. Under our code, a catering establishment prepares food for off-site consumption, whereas a restaurant is open to the public. To be a restaurant, at least 50% of seating must be available to the public. This separates it from an Event Center. The applicant is proposing 90 indoor seats and 30 patio seats. Because the existing septic system only supports 15 people, the applicant is proposing to combine lots and build a new septic system on the parcel to the north. This requires rezoning those residential lots to B2 business. There is also a variance request for the parking lot setback from 20 feet down to 2.5 feet. Planning Commission voted to approve the request, but all these applications are tied together as one package. [00:00] **Mayor Myron Bailey**: Before we let Council ask questions, I'll kick it over to our City Attorney. [00:00] **Corey Land (City Attorney)**: Thank you, your honor. I have prepared a thick packet of history for the record. Beginning in January 2022, staff met with Mr. Butt. He originally said he wanted an Event Center. He was told that is not allowed in B2 zoning, but a restaurant is. Throughout 2022, Mr. Butt sent mixed signals—repurposing for a "wedding venue," then a "landscape building," then an "event center." He even advertised "Lakeside Events" online, leading to a cease-and-desist. He appeared in Open Forum in October 2022 inviting the Council to his "Event Center." He was again told it was not zoned for that. At the Planning Commission, Mr. Butt said, "everyone wants a restaurant... we never wanted to be restaurant owners but that's what folks are asking for." However, after that meeting, he emailed staff asking if his application included a "catering establishment." If you do not believe he will actually open a restaurant, you have no option but to deny, as the septic and parking analysis rely on the restaurant use. I have prepared findings for denial at your desks. [00:00] **Councilmember Dave Thiede**: Could he have takeout in his restaurant? [00:00] **Corey Land (City Attorney)**: Takeout is a sub-use of a restaurant, but the application was pitched solely as a restaurant. [00:00] **Councilmember Tony Khambata**: Is there a kitchen on site? [00:00] **Corey Land (City Attorney)**: The floor plans do not show a kitchen. [00:00] **Councilmember Justin Olsen**: If there's an approval for a restaurant and then the use is not a restaurant, what happens? [00:00] **Corey Land (City Attorney)**: We would bring him in for a revocation of all approvals. [00:00] **Mayor Myron Bailey**: I will invite the applicant up to speak. [00:00] **Ryan Case (Attorney for Applicant)**: I represent Mr. Butt. We are asking you now to approve this as a restaurant. It is our intention to get shovels in the ground. To have the feeling that Mr. Butt is lying to you as a reason to deny seems arbitrary. We are accepting all 34 conditions. [00:00] **Councilmember Tony Khambata**: Wayne, did you determine what you wanted to use the place for before you started spending money on it? [00:00] **Wayne Butt (Applicant)**: The goal was to eventually light the Ferber Farm and start the wedding process. Looking at the demographics, the goal was an Event Center. When I called restaurant owners in town, they said they can host private events. I didn't know the code changed to a 50% public seating requirement. I'll do whatever it takes. Yes, let's be a restaurant. [00:00] **Patrick Balmuth (Resident)**: I am here in support of Wayne. He’s preserving history. Don't disapprove his plans. [00:00] **Blake Council (Resident)**: I hope there wouldn't be disparate treatment in the ordinances between restaurants. [00:00] **Mary Marty (Resident)**: We do not like the buses and the drunks imported into Old Cottage Grove. It doesn't sound like he has gone through proper procedures. [00:00] **Edgar Marty (Resident)**: How can you say it's a restaurant if it doesn't have a kitchen drawn in the plans? That blows my mind. [00:00] **Councilmember Tony Khambata**: I don't see a hardship to justify the variance. I think it's self-inflicted. I'm a no. [00:00] **Councilmember Dave Thiede**: I move to adopt resolution 2023-069 approving the variance. [00:00] **Mayor Myron Bailey**: No second. That motion fails. [00:00] **Councilmember Tony Khambata**: I move to deny resolution 2023-069. [00:00] **Councilmember Justin Olsen**: Second. [00:00] **Mayor Myron Bailey**: All those in favor of denial signify by saying aye. (Khambata, Olsen, Bailey, Thiede: Aye). Opposed? (Dennis: Nay). Motion carries 4-1. [00:00] **Councilmember Tony Khambata**: I make a motion to deny items two, three, and four [Resolutions 068, 070, and Ordinance 1065]. [00:00] **Councilmember Justin Olsen**: Second. [00:00] **Mayor Myron Bailey**: Motion carries 4-1. Next item is Northheart Architecture, high-density residential. Emily. [00:00] **Emily Schmitz (Community Development Director)**: This is for a 299-unit multi-family building on the "Civic 40" parcel south of 100th Street. This requires a Comp Plan amendment from industrial to high-density residential. It’s a 5-story building with 55 feet height. 1.6 parking spaces per unit. We are working on the street and utility project for 2024. The building uses high-quality materials, 65% glazing. [00:00] **Mary Beth Wise (Norheart Architecture)**: We are excited to be part of the community. Shovels in the ground November of this year, finishing November 2025. [00:00] **Councilmember Steve Dennis**: Motion to adopt resolution 2023-066. [00:00] **Councilmember Tony Khambata**: Second. [00:00] **Mayor Myron Bailey**: Motion carries. [Subsequent motions for Ordinance 1064 and Resolution 067 also carry]. [00:00] **Mayor Myron Bailey**: Final item: Low Water Zone treatment plant and Public Works utility building. [00:00] **Emily Schmitz (Community Development Director)**: This is a 20-acre parcel at 110th and Ideal. Two buildings: a Water Treatment Plant and a Utility/Engineering building. [00:00] **Ryan Burfeind (Public Works Director)**: The Water Treatment Plant is fully funded by the 3M settlement—$32 million to remove PFAS. It will be operational by June 2025. The utility building is for our staff. We are trying to save the trees along Ideal Avenue. [00:00] **Councilmember Justin Olsen**: Motion to approve Resolution 2023-063. [00:00] **Councilmember Dave Thiede**: Second. [00:00] **Councilmember Steve Dennis**: I have not supported the utility building due to cost. I support clean water, but I will vote no on the combined site plan. [00:00] **Mayor Myron Bailey**: All those in favor of 063 signify by saying aye. (Group: Aye). Opposed? (Dennis: Nay). Motion carries 4-1. [00:00] **Councilmember Dave Thiede**: I move to adopt resolution 2023-074 for the Water Treatment Plant plans and specs. [00:00] **Councilmember Tony Khambata**: Second. [00:00] **Mayor Myron Bailey**: All those in favor signify by saying aye. (Group: Aye, including Dennis). Motion carries 5-0. [00:00] **Mayor Myron Bailey**: Any council comments? [00:00] **Councilmember Steve Dennis**: Looking forward to the icsc trip to Las Vegas to bring business to town. [00:00] **Councilmember Dave Thiede**: Four weeks until Strawberry Fest! [00:00] **Councilmember Justin Olsen**: Memorial Day event is May 29th at 10 AM at City Hall. Captain Nick Arrigoni is the speaker. [00:00] **Mayor Myron Bailey**: Ice Show is May 20th. St. Paul Saints Cottage Grove night is June 10th. We have a closed session for a performance evaluation of Jennifer Levitt. Have a great evening.