City Council July 17 2023

Hastings, Minnesota 0:00- Call to Order 0:45- Comments from the Audience 1:27- Consent Agenda 2:02- 2nd Reading/Order Public Hearing: Subdivision Ordinance 2:02- 2nd Reading/Order Public Hearing: Fee Schedule 10:00- Resolution: Minor Subdivision (1450 4th St. W.) 11:55- Resolution: Prelim & Final Plat- Ries Addition 15:50- Announcements Adjournment

[0:00] Mayor Mary Fasbender: Meeting to order. Please stand for the Pledge of Allegiance. [0:16] Mayor Mary Fasbender: Indivisible with liberty and justice for all. Welcome, and let the roll reflect that a majority of the members are present and a quorum has been established. Council members, are there any corrections to the June 26th meeting or workshop? Okay. Comments from the audience? At this time, we will take live comments, and maybe either through Zoom or in person, and we ask the attendees on Zoom to use the raised hand feature. Or if there's someone in the audience that wishes to speak to the Council at this time, you may step forward and go to the podium. [1:03] Mayor Mary Fasbender: State your name and address. No one on Zoom? Okay. Council members, are there any Council items to be considered? Okay. And Council, I would accept a motion to approve the consent agenda. Councilmember Leifeld? Councilmember Haus? Discussion Council? All those in favor of the motion, state by saying "aye." (Council: Aye). Opposed to that motion, state by saying "nay." And that motion prevails. Tonight under Park dedication, we have an introduction for us by Community Development Director John Hinzman. [1:49] Mayor Mary Fasbender: Welcome, John. [1:49] John Hinzman: Thank you, Mayor, City Council members. Before us tonight is a public hearing and second reading of a couple of ordinances related to Parkland dedication. Council may recall that at our last meeting on June 26th, we considered first reading of these code amendments and actually had this on the discussion portion of the agenda because of the changes that were taking place, and I wanted to ensure that the council had questions that were answered at that point prior to the public hearing. What we're doing is we're changing our method and our number for Parkland dedication. A little background on Parkland education: anytime property is subdivided with any a final plat or a minor subdivision, land is dedicated for Park purposes. This can either be a physical dedication—so a new park is created—or a methodology is established for the payment of Park dedication fee. Now the payment for Park dedication fees has not been amended for nearly 20 years since 2004, and as you can imagine, the rates and the cost of all things have gone up since 2004. So we wanted to bring forward a modification to that, and we also wanted to take into consideration changes within the regulatory environment. Park dedication fees have had more scrutiny as of late; park dedication fees now require a Nexus between the fees being charged and the burden to the city's Park system, and there's court cases that are involving that very aspect that we wanted to make sure that we were consistent with. So we wanted to be able to establish a rational mechanism for the establishment of park dedication fees, and ultimately how we set Park dedication fees is up to us. So let's go through the rationale. First of all, what we did is put together a rationale based upon the Parkland we have at present and the amount of people that we have in the city. So when you take a calculation on the number of people in the city and the number of acres of Parkland we presently have, it's about 1,367 square feet per person. Rationale being this is what's being proposed; this is what's being presented now for population in the future—new park to be dedicated should be dedicated similarly. We also want to determine what the fair market value was of land through the independent appraisal, which we did do. We did this for low density, medium density, and high density residential property. And then the important part is to update this on a regular basis. As I said earlier, it's been nearly 20 years since we had an update to our Park dedication fees. So we went through this calculation—I'm going to put this up on the screen here—and looked at what the impact would be to a couple of recent subdivisions: one being single-family and one being a multiple-family. At present rate now for Heritage Ridge, we've got a figure of about $2,200 per unit, which would be about $255,000 in park dedication fee. Based upon this new calculation, that will go up substantially to almost $600,000, going up by over 60 percent. Lake Isabel Flats, an apartment project, would go up even further from a total payment of about $98,000 to over 1.4 million dollars. Obviously, these are a gigantic increase, and the rationale for levying these type of fees is not something that staff could recommend to bring forward. So there's two things that we're doing here: one is providing a mechanism, a rationale for what we charge in park dedication, which this does. However, we as a city do not need to follow that; we may make modifications to it. So that's what the second part comes in. We did a survey of about 25 other cities to determine what park dedication fees were paid, found out that most cities actually charge a flat fee for all types of development whether it's single-family, townhome, or apartment, and those fees are right around $3,500 to $3,600—so range being $1,500 to $8,000 altogether. Our recommendation moving forward is that we get to $3,600 per unit, but that we do not do it all in one shot—that we do it little by little over the next few years. So within a single-family dedication, right now it's $2,200; we'd go up $500 a year until we get to that $3,600 mark in 2025. For higher density properties, a little bit longer of a runway on that—that goes out to about 2027 where it would go from $1,100 to $3,600 a unit. So that is the proposal that we are taking forward today. The two ordinance amendments that we have before you tonight: one is to our subdivision ordinance which amends the methodology section as to how we dedicate Park fees; the other one will be our fee schedule which would have this schedule within it showing what the fees would be and how they change over the next couple of years. So we have had this reviewed by our Planning Commission, our Council committee as well, and the Park and Recreation Commission has looked at these figures. So again, tonight this is a public hearing. You may open it at this time or I could stand for any questions. Thank you. [7:06] Mayor Mary Fasbender: Thank you, John. And Council, just to add, these are closely related ordinances, so let's hold the public hearings together and vote together. Okay. At this time, I will open the public hearing. Anyone wish to speak to the public hearing in the audience? Anyone on Zoom? No raised hands. One more time, anyone wish to speak during the public hearing and the fee structure? Okay. I will close the public hearing and open the discussion for Council. Councilmember Pemble. [7:51] Councilmember Dave Pemble: John, in the review, it was 2004 the last time they were gone through and set a value. Is there a mechanism to not run 20 years through? Can you explain that a little bit that it's in please? [8:15] John Hinzman: Absolutely, Councilmember. Yeah, certainly do not want to go 20 years again before looking at these fees. Actually, within the ordinance itself, the subdivision portion of it, it has a requirement in it for us to go back every three years at least. [8:30] Councilmember Dave Pemble: Thank you. [8:30] Mayor Mary Fasbender: Thank you, Councilmember Pemble. Any other discussion, Council? Councilmember Fox. [8:38] Councilmember Jen Fox: No, I just wanted to say thank you, John and Chris Jenkins, for all the work that you've put into coming up with these recommendations for us. We very much appreciate all the thought that went into this and that you've made it a, you know, green ordinance and that we'll be able to keep up on, you know, inflationary adjustments as they're needed in the years to come. And I think that it's really a great recommendation that you've brought forward, so thanks again. [9:15] Mayor Mary Fasbender: Thank you. Thank you, Councilmember Fox. All right, Council, I would accept a motion to approve an ordinance for the city of Hastings, Minnesota, repealing and replacing city code chapter 154 sections 154.07 regarding Parkland dedications, and an ordinance of the city of Hastings repealing and replacing city code section 34.03 Community Development fees regarding Parkland dedication fees for residential development. [9:26] Councilmember Jen Fox: So moved. [9:26] Councilmember Dave Pemble: Second. [9:26] Mayor Mary Fasbender: Councilmember Fox and Councilmember Pemble. Any discussion, Council? All those in favor of the motion, state by saying "aye." (Council: Aye). Opposed to that motion, state by saying "nay." And that motion prevails. Okay, under Community Development, resolutions for minor subdivision and 1415 4th Street West. And John, you may continue. [10:14] John Hinzman: Okay, thank you Mayor. Looking at Shepherd of the Valley Church at 1450 4th Street West. Proposal tonight is to split the property in half essentially down a line which would go something like this: the church would remain as is; the eastern portion of the property is being considered to be sold for a multiple residential project. You may recall a couple of years ago that the council did take action to rezone the eastern portion of this property from R1 to R3. Now the R3 zoning is consistent with the other townhomes that you see surrounding this property. We don't have a specific proposal at this time as to what that might be on the property; we have looked at concept plans showing a townhome type of density within there. Planning Commission did review this at their meeting on July 10th and held a public hearing. We had no one speak to that issue during the public hearing and no comments before or after the Planning Commission review. So they did recommend approval on unanimous vote with limited discussion at that time. So I can stand for any questions. I think we have representation here from the ownership of the church and the potential future developer as well. Thank you. [11:00] Mayor Mary Fasbender: Thank you, John. Any discussion Council? I'll accept a motion to approve a resolution of the city council of the city of Hastings to approve a minor subdivision of property generally located at 1450 West 4th Street. [11:46] Councilmember Jen Fox: So move. [11:46] Councilmember Lisa Leifeld: Second. [11:46] Mayor Mary Fasbender: Councilmember Fox and second by Councilmember Leifeld. Any discussion Council? Okay, all those in favor of the motion, state by saying "aye." (Council: Aye). Opposed to that motion, state by saying "nay." And that motion prevails. Thanks, John. We also have a resolution for a preliminary and final plat for the Reese Edition, Glendale Road and Spiral Boulevard. And John, you have the floor again. [12:31] John Hinzman: Okay, thank you Mayor. Preliminary and final plat approval for Reese Addition. This would be a 20-acre subdivision consisting of two lots. Property is zoned agriculture; it's outside our Metropolitan urban service area, which means we're not intending to bring city sewer or water to the property, and that has a minimum lot size requirement of 10 acres. So essentially we're taking a lot in red, splitting it in half—it would look something like this at the end of it. You may recall that a couple of weeks ago we did approve the sale, a partial sale of this triangular piece of property to be part of this development, and one of the requirements of that sale was that the area that Spiral Boulevard now transverses would be platted as right-of-way as part of this approval. So nothing would change with the geometrics or anything with the roadbed for Spiral, but it would be within its own dedicated right-of-way. So we did have this reviewed by the Planning Commission at their last meeting. During the public hearing, we did have a couple people speak to the issue. It wasn't necessarily objection to the plan itself, but just some concern about stormwater drainage that's been occurring over time there and the impact that it would have to the development. So we did have a condition—a boilerplate condition we have in all subdivisions—that during the grading and drainage review of the project, that there's not more rainfall going off of the property as runoff than coming into it, for our stormwater requirements. So I could stand for any questions for this. Thank you. [13:17] Mayor Mary Fasbender: Okay. Thank you, John. Council? Councilmember Leifeld. [13:17] Councilmember Lisa Leifeld: Thank you, your honor. John, first, I think you answered my first question because when we look at the map, it's on the south side of the road. So that property is owned by them, but we've got the easement for the road? [13:45] John Hinzman: Yes, so right now this triangular piece is owned by us, but we're going to be selling that to them to be part of the subdivision, and then Spiral Boulevard would remain a city street with its own dedicated right-of-way within it. The lot line would be split here, so you'd have a driveway entrance for a home coming off of this location and another one coming around this location. [14:02] Councilmember Lisa Leifeld: I guess my question then would be why is that triangle spot that we're selling off not north of Spiral Boulevard? [14:48] John Hinzman: Got it. So it is—yes, Spiral Boulevard comes about here where we're selling it, a little bit further to the south because we have an 80-foot right-of-way that we typically plat for collector roadways. So we want to make sure that we've got that 15 or 20-foot boulevard area that we typically have within the right-of-way. [14:48] Councilmember Lisa Leifeld: So this at no point could turn around and impact Spiral Boulevard getting out there? Correct? [14:48] John Hinzman: Correct. We've insured through the sale and platting process that that remains public. [14:48] Councilmember Lisa Leifeld: And when you talked about at the meeting, there was some concerns about stormwater runoff to the development—what development? The one up on the hill above it? [15:15] John Hinzman: More owner to the north here. You can kind of see some grading that occurred when this was a gravel mine, and then I guess during large events here coming off of Spiral Boulevard, that impacts the east side of Glendale Road. [15:15] Councilmember Lisa Leifeld: Thank you, John, I appreciate that. With that, your honor, I'd like to make a motion to approve as recommended, please. [15:33] Mayor Mary Fasbender: Okay, thank you. Councilmember Leifeld and Councilmember Fox. Any discussion Council? All those in favor of the motion, state by saying "aye." (Council: Aye). And opposed to that motion, state by saying "nay." And that motion prevails. Thank you, John. Thank you. Council members, any announcements or updates? Councilmember Fox. [15:33] Councilmember Jen Fox: Thank you, your honor. I just wanted to give folks an update that in my capacity as a councilmember, I am serving on one of the League of Minnesota City's policy committees. I'm chairing again the Improving Service Delivery committee, and so today was our kickoff meeting. It's a series of three meetings where we will determine policy recommendations for the League. And I just wanted to let folks know that I did take the opportunity to promote that the League support legislation to support cities as we're moving forward with PFAS and the lowering of what the acceptable standards will be and the financial impacts to our community, and that more needs to be done monetarily, you know, to support our communities. It was interesting that there was interest in this particular issue. Rochester—the city of Rochester—had chimed in that they also have a 60 million dollar PFAS drinking water treatment facility in the works, and so it was really interesting to hear that they're in a similar situation as we are. I guess the difference is that they have a much larger population and commercial development that's available to help support such an initiative, but they too were in a similar boat. And so there were a number of legislative changes that happened this last year, things that I wasn't even aware of. So there is a four-page memo that's available that I'll be happy to send to you all that has the legislative changes of this last session, some of which do impact cities. As a for instance, there was one about Native Landscapes that was a change where we've lost local control in being able to regulate these things. And they had gone on to say that there's an article that's available right now on the League's website about this highlighting it, and that we can no longer limit natural landscapes in people's residential yards, and that there were other limitations. And so I thought, okay well geez, we need to talk about that—that situation and how does that impact our weed ordinance and things of that nature, right? Another thing that's coming with the group—there was a resounding agreement that we needed to talk more about the impact of the new cannabis legislation. And I just wanted to let Ms. Land, our City Attorney, know that they said that there's going to be a webinar next week to give a lot of the details. But what they're really looking for is they would like feedback as to what we should include—the League should be including for recommendations to update the legislation that was just passed. And so I thought you might like to hear that they're taking input. And so I'm guessing that that will be one of the initiatives probably in July that we'll talk more about. And so as you're doing your work, if you have any recommendations that you'd like to bring forward, please let me know. I'm sure there are. Thank you. So yeah, we appreciate your patience and having to digest all that information. So anyhow, I'll find that overview from the League and I'll share that with you, and I'll keep you updated on things that are to come. One thing before I forget, we as a council, we're going to discuss—at I think it was in August—that's what we had tentatively earmarked to talk about what kinds of legislative policy initiatives that we would want to promote as a city. And I'm not sure if that's what we had originally intended for our August 7th workshop or if we're going to do that another time, but now is the time if we as a council want to be vocal on any other issues. Thanks. [19:24] Mayor Mary Fasbender: Thank you, Councilmember Fox. Any other updates, Council? Okay, I have a few announcements. Thank you to the Hastings Chamber of Commerce for putting on Rivertown Days, which starts this week. And thank you to all the sponsors and volunteers. This is such a fun event and really does show off our community. And a special note that the city will be involved on Sunday this year instead of Saturday for our Machinery Hill, which will be under the bridge on Sunday—typically is on Saturday. Summer rec programs at Levee Park: Tuesday, July 25th, Performance in the Park is ETC Theater and Madagascar Junior, which is sponsored by Smead Manufacturing. Thursday, July 27th is Music in the Park with Bella Amor, which is Jazz supported by Ruth and George Doffing Charitable Fund. Thursday, August 3rd is Music in the Park with Tumbling Dice, which is a tribute to The Rolling Stones supported by Ruth and George Doffing Charitable Fund. The rec, art, and police will be at Vermillion Falls Park on Wednesday, July 26th featuring tape painting and inflatable bungee run shootout, which is recommended for elementary and middle schoolers, supported by SC Toys, Country Financial, Hastings Lions Club, Hastings Family Service, Community Ed, and Hastings Prescott Arts Council. National Night Out is an annual community building event; please join us on Tuesday, August 1st at Lions Park or in the local neighborhood gatherings. Moving forward for the meetings: Tuesday, July 18th, 7:00 PM, Heritage Preservation Commission; Wednesday, July 19th, 6:00 PM, Parks and Recreation Commission; Thursday, July 20th, 6:30 PM, Public Safety Advisory Commission. Monday, July 24th: the planning committee has been canceled; Planning Commission is at 7:00 PM and City Council special meeting is 7:00 PM. Tuesday, July 25th is a City Council special meeting at 7:00 PM. And Monday, August 7th, 5:30 PM, City Council PFAS workshop and then a 7:00 PM City Council regular meeting. I would accept a motion to adjourn. [22:27] Councilmember Dave Pemble: So moved. [22:27] Councilmember Angie Haus: Second. [22:27] Mayor Mary Fasbender: Councilmember Pemble and Councilmember Haus. And all those in favor of the motion, state by saying "aye." (Council: Aye). Opposed to that motion, state by saying "nay." And...