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HomeMy WebLinkAboutJanuary 30, 1979 v o 0 ~ 01 ANDOVER u o SPECIAL CITY COUNCIL MEETING - JANUARY 30, 1979 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jerry Windschitl on January 30, 1979, 7:35 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, for the purpose of the Good Value Homes Presentation and Confirmation of the Fire Department Officials. Councilmen present: Councilmen absent: Also present: Jacobson, Lachinski, Orttel, Peach None City Engineers, D. R. Kasma and John Davidson and Dave Pillatzke; Planning and Zoning Commission representatives, d'Arcy Bosell, Ralph Kishel, Byron Copely, Larry Retzlaff, George Lobb, and Rich Okerlund; Park/Recreation Commission members, Wes Mand, Glen Rogers, Steve Nichols, Edna Meyers, and Bill LeFebvre; Good Value Homes representatives, Frank Voth, Vice President in Land Development, and Duane Olson, Consulting Engineer, and others Agenda Approval MOTION by Jacobson, Seconded by Lachinski, that we accept the Agenda as presented. Motion carried unanimously. Good Value Homes Presentation Mr. Voth gave a description of Good Value Homes and their proposals for development in c=> Andover. Mr. Voth described Good Value Homes as a comparatively small, privately owned company, based in the City of Anoka, and concentrating developments in Anoka County. He stated they have closed about 450 houses this past year, and reviewed some of the de- velopments they have done in Blaine, Coon Rapids, Brooklyn Park, Circle Pines, Vadnais Heights, and Oakdale. He also presented a packet to the Council showing the types of houses they construct. Mr. Voth explained when they move into a community, it is hoped that they can bring something to the community which will add value and improve it; and he expressed a desire to work within the City's plans and requirements. Mr. Voth realized that onecr the problems is that some of the property is not properly zoned and that it would have to be rezoned. Some of the land would be required to be single family zoning, and they would be willing to work together with the City should multiple dwellings or something of that nature be desired on the part of the City. The Planning Commission has recommended a rezoning for 10 acres on the corner of Round Lake and Bunker Lake Boulevards, though he realized that that hasn't yet come before the Council. One of the things that is in that purchase agreement is that Good Value provide access to that 10 acres so they can move to the east for an access onto Bunker Lake Blvd. The County Highway Department has approved the improvement of Round Lake Boulevard along the present alignment. He felt that the first 330 feet north of Bunker Lake Blvd. on the northeast corner of the intersection could well be rezoned to a commercial nature also. A medical-dental clinic has contacted him that would like to come out here, which he felt would be desirable on the part of the residents of the community. It appears to them that the problems that pertain to drainage, extension of sanitary trunks, and water systems are those that can be handled in an adequate way. Their company has made it their policy to obtain FHA subdivision approval of all of their subdivisions; therefore, they build streets to the standards of both the Community and of FHA, which can be more o stringent. Mr. Olson reviewed the development areas from the aerial photos, which showed a super- imposed sketch arrangement of a possible development on each of the sites. This was purely for a point of discussion. The site north of Bunker Lake Boulevard on both sides o o \.J '-./ Special City Council Meeting January 30, 1979 - Minutes Page 2 /\ ,-) ~-) of Round Lake Boulevard include: an SO-acre parcel to the east of Round Lake Blvd; two 40's on top of one another with a commercial strip sold immediately on the east side of Round Lake and another portion they would like to review as potential commercial to connect with it just north of Bunker Lake Boulevard; all others proposed as single-family residential dwellings; and falling entirely within the Coon Creek Watershed District. The other portion is an SO-acre piece, two 40.s side by side to the west of Round Lake Boulevard; has some lowland that is in a flood plain situation in the north; a proposed realignment of Bunker Lake Road would bisect the property; sketched into single-family residential lots; all lots to be internal and not facing on the new collector; and with a provision for some active park with some grading and some left natural for drainage and ponding. Mr. Kishel stated the proposed realignment of Bunker Lake Blvd. is under study, and it would still be five years at best before it would come about. Mayor Windschitl noted that should this road be the tie-in for the proposed Rum River Crossing, that the Council has been luke-warm at best to the entire situation. Mr. Olson stated they have addressed parkland dedications only very lightly. They have looked at areas that would be suitable for J:)'.arks and areas that would be dedicated but not necessarily usable for active park purposes. The land to be dedicated would exceed the City.s percentage. They have done no soil surveys as yet and have no topographies on any of the sites. Relative to the County's decision on the improvement of Round Lake Boulevard north of the intersection with Bunker Lake Boulevard, Mr. Kishel stated that the final decision has been to make the improvement along the existing roadway unless a major item comes forth. In review, Mr. Olson explained they are looking at a total acreage on the two combined parcels of 144 acres with approximately 290 lots, roughly 2 lots per gross acre. Obviously, if the Bunker Lake rerouting isn't going to be a firm proposal, they would have to work outside that framework and decisions would have to be made. Ms. Bosell noted she assume they would be applying for a rezoning, as that land is presently zoned for 2~ acres on the first two 40's. Gerald Gerard, 3442 136th Lane - asked what their policy was in developments of this sort. 290 lots means qUlte a few more children. Where will these children go to school? If schools have to be built, who is going to pay for them? Has your company done anything to help build new schools? Mr. Voth stated that when they come in with a preliminary plat, they will go through whatever bodies are necessary for rezoning, etc. The company has never been confronted with paying for schools. They have dealt with the school district and have told them what they were doing, giving them potential counts, etc. Then the school districts have made their plans according to the needs they project in the community. Mr. Gerard - this proposal is a massive development right across the road from where he llves. If 290 lots is going to be put in, this will certainly require an additional elementary school, as we are already very crowded. He would like some assurances that he would not be paying for schools for those children in the new development. Secondly, what is the company's policy on providing park and recreational land for developments? Mr. Voth stated they usually relate themselves to the Ordinances of the community and abide by them. Mayor Windschitl stated the City Ordinance requires 10 percent of the land area or a cash amount that is determined by the value of the property. The Park Board has developed a comprehensive plan for park site locations, so we know in what general area we want a major park and where they want smaller parks. ,~-" . \.J Mr. Olson went on to explain their proposed development south of Bunker Lake Blvd. and east of Coon Creek -- within Section 33 is 103 acres; approximately 220 lots proposed; adjoins Coon Creek; some deep lots along the floodplain;; access to Bunker Lake Blvd.; '---/ '-.-/ o 'Special City Council Meeting January 30, 1979 - Minutes Page 3 o ") v all lots facing internally and nbl1t! fronting Bunker Lake Blvd.; and a proposed 5-acre park. Land in Section 34 immediately to the east involves two 40's side by side; 167 lots proposed, which at the present time do not have access to platted streets. They have anticipated the layout in there which would permit tying into areas which were apparently split retaining half streets, etc., to fit the City's street pattern. This entire parcel is proposed as single family residential housing and extends south to the City limits. He assumed that this area falls within the 78-2 Coon Creek Watershed Resolutions governing water going to the Creek, but agreed that this particular site lends itself quite well to natural ponding or storm water drainage. Mr. Voth stated basically they are fairly conservative and have tended to do well on single family detached housing directed primarily towards the middle market. If there are those insights that the City has that it would be acceptable or wise to consider some higher density type housing, they would seriously look at it. It was noted that they are looking at quad housing, some doubles, in their other developments, and have some doubles being constructed in Coon Rapids in Pneasant Ridge. This is tentatively laid out on single- family requirements. If the City feels that certain areas might be suitable for higher density, they are open to suggestions and would consider it. It is their intention that this land would be developed in a staged manner. He felt that they would be developing density to whatever the Ordinance requires, but wouldn't like to see it go below two lots per acre. Their concern is to build quality lots as economically as they can. Mr. Mand - asked if they proposed any parkland in that area. Mr. Olson stated with some gradlng some land could be combined with park and ponding along the creek. Yes, they should have a park in this area if it develops. There is five acres that lends itself well to ponding. Mr. Voth stated the company feels that parks are necessary in communities, and they want to provide sufficient recreational opportunities for children. He encouraged people to drive through some of their completed subdivisions to see their work. /) '---/ ,.., o Bob Dillon, Midwest Planning - asked if they have a date set when they expect full development. Mr. Voth stated they have a subdivision just south of Andover which is just going on-line right now. And they would like to bring some of this land on line at the conclusion of that. A year from this summer they would need to have some land available with some lots. He thought they would like to begin the improvement of the 80 acres that sits at the corner of Bunker Lake and Round Lake as the first area. They generally find that the development of approximately 80 acres works fairly well. He guessed they would do some of the work late this fall, including the installation of a well for pressure water system and then probably proceed with the installation of the street and utilities in the spring, so they would be able to move in their next summer. for selling in the fall of 1980 or spring of 1981. Then they'd move across Round Lake Boulevard and develop that, then proceed to the property east of Coon Creek. Mayor Windschitl stated it would be the City's preference that the property where the sewer is already available be developed first. The City has a capacity of being able to bond for only so much and is already paying for the bonds on this one. To assume the costs of extending the sewer trunk would be a financial concern on the City's part, especially when you already have capacity that is unused on the one parcel. The whole sewer plan has been done rather conservatively so we don't end up with the rest of the residents paying for the developer's expenses. The Assemblies of God Church came in for the extension of sewer west on Bunker Lake Road of about 400 feet. That is the only petition the Council has seen relative to sewer extension. Mr. Voth stated they want to do whatever helps the City and helps them as well. They are not locked in on the exact direction of staging, so he felt it would be potentially feasible to do the other. '--.J (j 'Special City Council Meeting January 30, 1979 - Minutes Page 4 o \.J ,/) '--' ' Mr. Voth stated that they would like to petition the City to allow them to install their own streets and utilities. Mayor "Hindschitl stated that developers are allowed to install streets, under supervision of City engineers and meeting our existing requirements. The Council has never taken a position on putting in utilities to date. Mr. Kasma stated the policy noted in the handout adopted April, 1977, by the Andover Council, that in new areas the developer does his own storm drainage plans and streets if the financing is done by him; but the water and sanitary sewer plans are to be done by the City consulting firm to provide continuity of utilities and to avoid double costs. He asked how are they planning to finance sanitary sewer and water to service this area. Mr. Voth stated in the City of Vadnais Heights where they are currently working, they have designed all of the plans and specifications for grading, streets and utilities, water, sewer, and storm drainage, which have been reviewed by their engineering firm. They have deposited the escrow in order that the City may pay to do the inspection of the job. They give maintenance bonds at the conclusions and post performance bonds in the mean time. They are paying for everything entirely by themselves out of their funds and there is no . draw on the funds of the City. Vadnais Heights, Oakdale, and Brooklyn Park principally are the three cities where they either request or require the developer to fund the im- provements, simply because the City doesn't have the money to do all of this work. In Coon Rapids and Blaine, the City installs the utilities. Their company has done the rough grading; the City. through assessment and selling of bonds, has financed the projects. Mr. Kasma stated the City has a provision in its financing policy to finance with City funds on a five-year assessment basis with 35 percent downpayment on your part. Mr. Voth asked how much of a markup is charged for overhead when the City does the work. He then reviewed the policies of the Cities of Coon Rapids and Blaine. Good Value Homes wants to do it the most efficient way, but would like to have the option of negotiating these things. It was his feeling that the consulting firm works on behalf of the City to protect the City's interests. But if the City does the work, they. as the developer, don't have anyone to protect their interests or have a say in it. He felt the method of them doing their own engineering, with the City approving and inspecting, is cost effective and protective of the City as well as the developer. Mr. Olson stated in all cases where they have done the engineering work, they have adhered strictly to City standards in every way and will work with the City Engineers on that, which is a dual approach to the situation. Mayor Windschitl stated from the City's bonding capabil ity. it would be best that the developer finance as much of the project as possible; and it also protects the taxpayers in the event the project falls through. Mr. Olson stated in other communities when other areas have also been benefited by the trunk facilities and consequently an improvement project would be assessed, that this would be handled by the City and its consultants. Mr. Davidson stated the main question is whether they are using public funds or their own funds. TKDA has worked both ways, but if there is an occasion when it isn't in the City's best interest. they don't want to be put in a position where the contractor's engineering would be degrading our professional expertise. If facilities are being designed to service areas beyond those specific plats, then he felt the City should go through a 429 proceeding whereby the City would bond, design and construct. If the developer chooses to have an internal central water supply on an interim basis until the City water supply is available, the facilities that he provides would have a general city-wide benefit later. Generally, this would be set up under some large corporation with water sold privately until such time the City would buy the corporation. The overall plan should meet that future provision. Mr. Voth agreed, and foresaw two wells, one in each location, and would want to work with the City so that there would be an acceptable agreement for the transfer of the utilities when the City would take them over. These would be in conformance with the City's require- ments. ,_., I '-- / o '---/ () Special City Council Meeting January 30, 1979 - Minutes Page 5 r- \ U v ') '--~" '~) \.--...... Recess at 8:47; reconvene at 9:04 p.m. Mr. Voth stated he wanted to meet again with the Council to discuss the concept of industrial revenue bonds used for residential mortgage purposes. They have received authorization from the City of Vadnais Heights for the use of industrial revenue bonds, the proceeds of which are used for mortgages purposes. Industrial revenue bonds are a device that the government has allowed communities to have in such instances where they think it serves the purposes of that community. Interest rates are now l~%, probably going to 10~% by March or April. The City of Chicago issued a very large bond issue at 7.99 percent. If we were to do something of this nature, we have computed that it allows a home buyer to qualify for $10,000 more house. Obviously the payments are about 20 percent less than the home buyers paying at the higher rates. Mr. Voth felt that this is good for the community because the interest rate benefit is passed on to the home buyer and not kept by the developer. When presenting this to the City of Vadnais Heights, they did a study to show how many million dollars it would take for a subdivision of this size. If industrial revenue bonds were used, a part of the proceeds of that would be used to provide the funding for the utility bond. It has a direct benefit to the community. ~ayor Windschitl asked if there is a specific treasury ruling that deals with this type of thing. Mr. Voth stated that John Friedman, Briggs and Morgan, is the bond counsel who has developed this, and he will send a copy to the City Clerk so she can make copies for the Council. This has been given the approval of the Commissioner of Securities, John Larson, December 25. This particular statute is nailed to specific real estate and is not of a general nature. If it is used for a general purpose, then a different statute is involved which requires the establishment of a non-profit corporation. Mr. Voth also stated that it is not his intention to say that developing land in Andover is contingent upon this being done. He proposed talking with Mr. Forness, having him investigate this, and discussing this in detail at a future date. Glen Rogers- asked if this is the same plan that Burnsville has. (Yes, approximately the same.) Did your company approach the Coon Rapids City Council regarding this same thing? (Yes.) Doesn't this type of financing put the developer at an advantage relative to selling these properties because of the lower interest? The other developers in the City do not have the advantage your company has. Mr. Voth stated that yes, obviously it would. He had lunch with Mayor White today, who told him they would not do this for one developer unless they did it for all. Mr. Voth was not opposed to it being done for all. In the City of Vadnais Heights, it was clearly the understanding that the Council would be receptive to receiving proposals from others. It differs from Burnsville in that authorization was given to one man who is an attorney and wanted to develop land and have mortgage money to sell the lots; whereas two other developers in the community couldn't do it. He felt we would be talking about $500,000 in industrial revenue bonds. Mr. ~oth stated he was aware of the City's unit charge for sanitary trunk policy, but he hasn't gone into it in any detail. But generally, the company does not want to be changing the community's rules. He also stated that with the expensive cost of utility extension, the more people you can put close to them, the better; therefore, they were not considering larger lot sizes. Mr. Davidson then reviewed TKDA's handout to the Council dated January 30, 1979, relative to Good Value Homes' proposed development. He reviewed maps of (1) the zoning of the property; (2) the logical extension of the sewer trunk lines which would run along the service road south of Bunker Lake Road and would not inhibit traffic on any of the roads; (3) the proposed water distribution system concept; and (4) the storm sewer system suggesting possible ponding areas. Charlie Vieman -questioned if no water would go into Coon Creek from the Adolfson's property; will it all go to the west into a ponding area behind what we call Case's house. ,~. 'J \..J . . Special City Council Meeting January 30, 1979 - Minutes Page 6 CJ o u /' . ) '-..,' Mr. Davidson stated the water will go to Coon Creek, but some kind of facility will have to be constructed. They will be making use of the existing ditch systems from Coon Creek, recognizing that because of the restrictions of the Watershed Board, they will have to put in some ponding facilities. Mr. Vieman - on the area west of Round Lake Boulevard, if there is an overflow, has Anoka glven permission for the overflow into their system? Mr. Davidson stated they have designed the pond such that the overflow would not exceed the present overflow rates. Having the overflow is kind of an emergency thing. In a 100-year rainfall, it can over- flow freely without damaging private property. Anoka is aware of this situation. Mr. Kasma asked what they can expect to see from Good Value as their next step. Mr. Voth stated he would have to do more thinking about what direction they are going, thinking of their needs and the community's needs, merchandising, etc. If the market sustains itself, they expect to come with preliminary plans sometime this summer. Mr. Kasma explained in order to get a sewer trunk line to the property on Round Lake Blvd., he felt they would want to be ready with plans by July or August to be getting into winter construction. Confirmation of Fire Department Officials MOTION by Peach, Seconded by Lachinski, that the City Council appoint the following three people as Officers in the Andover Volunteer Fire Department: Fire Chief _ Robert Palmer; Assistant Fire Chief - Thomas O. May; and Fire Marshall - Richard Lundeen, for a one- year term. Motion carried unanimously. MOTION by Peach, Seconded by Orttel, that the City Council remove Paul Evans from the BUllding Committee and add Robert Palmer and Thomas May. Motion carried unanimously. MOTION by Lachinski, Seconded by Orttel, to adjourn. Motion carried unanimously. Meeting adjourned at 9:35 p.m. Respectfully submitted, 'i\~~~~ Recording Secretary r-., " _./ :-) \."-~