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Item 3.2 2025.05.27 City Council MinutesPage 1 of 7 OTSEGO CITY COUNCIL MEETING TUESDAY, MAY 27, 2025 7:00 PM OTSEGO PRAIRIE CENTER Call to Order: Mayor Stockamp called the meeting to order at 7:00 PM. Roll Call: Mayor Jessica Stockamp and Councilmembers: Ryan Dunlap, Tina Goede, and Corey Tanner. City Staff: City Administrator/Finance Director Adam Flaherty, Emergency Services Director Daryl Rausch, Streets Operation Manager Kevin Lamson, City Planner Daniel Licht, City Attorney Dave Kendall, and City Clerk Audra Etzel. City Engineer Ron Wagner arrived at 7:02 PM. Councilmember Michelle Lund arrived at 7:16 PM. Pledge of Allegiance: Mayor Stockamp led in the Pledge of Allegiance. 1.Open Forum: Mayor Stockamp opened the Open Forum at 7:01 PM. No one from the public spoke. Mayor Stockamp closed the Open Forum at 7:01 PM. 2.Consider Agenda Approval: City Administrator/Finance Director Flaherty requested the addition of agenda item 6.2 and noted that materials were distributed to the City Council at the dais. CM Dunlap asked to have item 3.3 removed from the consent agenda for discussion, adding item 5.1 to the agenda, and to change the order of discussion by moving item 4.2 prior to item 4.1. CM Dunlap motioned to approve the agenda as amended, seconded by CM Tanner. All in favor. Motion carried 4-0. 3.Consent Agenda. 3.1 Approve Claims List. 3.2 Approve City Council Meeting Minutes. A.May 12, 2025, Meeting. 3.3 Approve Pay Application #5 for the Fire & Emergency Services Facility Project. Moved to Item 5.1. 3.4 Approve the Renewal of the City’s Workers Compensation Insurance Coverage. 3.5 Accept Quotes and Authorize the 2025 Trail Maintenance Project. Item 3.2.A. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MAY 27, 2025 Page 2 of 7 3.6 Zoning Map Amendment and Conditional Use Permit: PID 118-800-154101. A. Adopt Ordinance 2025-02 Amending the Zoning Map. B. Approve a Conditional Use Permit. 3.7 Linco – 2nd Addition. A. Adopt Resolution 2025-22 Vacating Drainage and Utility Easements. B. Adopt Ordinance 2025-03 Amending the Zoning Map. C. Approve a Preliminary Plat, Final Plat, and Site & Building Plans. 3.8 Approve the Purchase of a Fleet Vehicle – Single Axle Plow Truck. 3.9 Adopt Resolution 2025-23 Accepting Bids and Awarding Contract – Well 12. 3.10 Approve Liquor License Renewals for July 1, 2025, to June 30, 2026. 3.11 Approve Hiring for the Street Maintenance Seasonal Positions. 3.12 Approve Hiring for the Utility Office Coordinator Position. 3.13 Approve Change Order Proposals – West WWTF Improvements Phase 1 Project. CM Dunlap motioned to approve the consent agenda as amended, seconded by CM Tanner. All in favor. Motion carried 4-0. 4. Planning: 4.2 Otsego Waterfront. A. Presentation by City Planner. B. Consider Approval of a Preliminary Plat & PUD Development Stage Plan. City Planner Licht reviewed the Request for Council Action. Modern Construction of Minnesota representative Jesse Hartung agreed with the staff report. CM Dunlap asked about meeting the conditions from the prior application, which was denied. Mr. Hartung said the unit sizes, parking, and building height have been addressed. Mayor Stockamp asked about the required parking and exterior building material requirements. Mr. Hartung said the project would comply with those conditions of approval and the drawings would be modified prior to final plat application. Mayor Stockamp asked City staff about requiring updated drawings before approval. City Planner Licht said the City Council can approve with conditions or require issues to be addressed before approval at their discretion. CM Tanner asked about traffic study results. City Engineer Wagner said a complete build out of the entire area was considered. City Planner Licht noted the traffic study included the most intense potential use of the subject site. Mr. Hartung said in his experience, preliminary plats are approved with conditions to meet the requirements to move forward, and he will follow the conditions of approval as recommended by the Planning Commission. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MAY 27, 2025 Page 3 of 7 CM Lund asked about the required parking spaces. City Planner Licht explained the breakdown of enclosed and total parking spaces required. City Planner Licht said the intent of the M1 District is to set uniform standards for Mixed Use land guided by the Comprehensive Plan. City Planner Licht reviewed the application process and provided options for the City Council to consider. CM Lund asked about the previous application including one enclosed space per unit. City Planner Licht said the previous application did include the required enclosed parking spaces noting the new plans changed. CM Dunlap asked Mr. Hartung why the submission was not updated. Mr. Hartung said he has been waiting for the M1 District to be amended and understands the conditions, noting the drawings will be updated prior to application for final plat. CM Lund said it is not easy to add covered parking. Mr. Hartung stated that he is aware of the cost to add the additional required parking. CM Lund asked about the approval process. City Planner Licht said the City Council can approve the application with conditions and plans will come back to City Council for Final Plat approval, and if needed, the final plat could be referred back to the Planning Commission. Mr. Hartung said time is critical and he would like flexibility to meet the conditions before final plat consideration. Mr. Hartung asked if CM Dunlap would approve the project if the conditions were met. CM Dunlap stated he would still not approve since it does not meet the underlying ordinance requirements without use of a PUD District. CM Goede has concerns with the required enclosed parking being provided. Mr. Hartung said adding parking spaces would move portions of the building and outside parking further south. Mayor Stockamp asked what retail is anticipated. Mr. Hartung said he is having ongoing discussions with potential tenants, but they cannot be disclosed at this time. CM Dunlap asked about the rooftop amenities. Mr. Hartung noted there is no public space, the rooftop will only be for private use due to the fire code. CM Tanner asked about additional phases. Mr. Hartung said amenities would be added in a series of phases including a public plaza, hotel, restaurants, commercial space, docks, and gazebos. CM Lund asked about prior developments completed by the developer. Mr. Hartung listed several prior projects, noting this would be his first mixed use project. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MAY 27, 2025 Page 4 of 7 CM Tanner has concerns with filling the space and meeting the parking. Mr. Hartung said this will be one owner offering amenities and the parking spaces will be met. CM Lund wants this to be a successful project for the community. Mr. Hartung said he has completed a market study showing a demand for high-end housing. CM Lund asked about the funding. Mr. Hartung said he will be using a green rate market HUD for funding, which require high standards and due diligence. CM Goede also wants to see the project be successful and is concerned about vacancy issues. Mr. Hartung said Phase 1 is 12,000 square feet, with about 80% tentatively leased out. Mayor Stockamp asked about getting an updated drawing addressing the conditions for parking and building materials. City Planner Licht reviewed the options the City Council can take. City Attorney Kendall said if the conditions are not met with the final plat application, the application does not need to be approved. CM Dunlap said the M1 District did not exist when the PUD application was submitted. Mr. Hartung said he has been waiting to submit under the M1 District. City Attorney Kendall said this is a PUD application. City Planner Licht explained the PUD and M1 District process. Mr. Hartung said the conditions have been stated and he plans to comply with these. CM Tanner asked if other developments have been approved with conditions. City Planner Licht said it is typical to have conditions with any development, but it is up to the City Council to be comfortable with approval subject to the conditions recommended. CM Tanner motioned to deny based on the applicant not submitting an updated drawing. Motion failed due to lack of a second. City Planner Licht noted that the City Council can table the discussion to allow the developer to submit additional site plans and drawings addressing the conditions being discussed. City Council consensus is to see the parking and exterior building materials to visualize the change to the development. City Planner Licht said the action items for the developer would be to provide updated site plans and drawings addressing building setbacks, exterior building material requirements, and parking requirements. Mr. Hartung will prepare updated drawings as requested. CM Dunlap still does not support the proposed building height as the base ordinance height is 48 feet. Mayor Stockamp said the Planning Commission did discuss the height and supported the proposed building. City Attorney Kendall noted the application is a PUD and needs to be considered as such. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MAY 27, 2025 Page 5 of 7 Mayor Stockamp motioned to table Otsego Waterfront Preliminary Plat and a PUD Development Stage Plan for Lot 1, Block 1, until the June 9th City Council meeting, seconded by CM Goede. All in favor. Motion carried 5 -0. 4.1 Zoning Ordinance – Mixed Use (M1) District. A. Presentation by City Planner. B. Consider Adopting Ordinance 2025-04 Amending the Zoning Ordinance Regarding Zong Districts and Mixed Uses. City Planner Licht reviewed the Request for Council Action. CM Tanner asked if development is required to have mixed use. City Planner Licht said the M1 District can have standalone commercial or residential uses or mixed use buildings. The theory with mixed uses within an overall development is to drive market attraction and make retail more sustainable. CM Dunlap likes mixed uses idea, but he would like to see the height limited to 48’ in the M1 District. CM Lund doesn’t want to restrict the development and recommends a height limit not a floor maximum. Mayor Stockamp noted you don’t notice the building heights as much when traveling on Highway 101. CM Dunlap expressed concern about the proposed building height impacting infrastructure capacity. City Planner Licht noted a utility and traffic study would still need to be completed for the City to approve a proposed development. Mayor Stockamp asked about multiple requests for 75 foot tall buildings. City Planner Licht said the property would still need to be able to accommodate the parking and utilities, this would be reviewed with an application before approving rezoning. CM Tanner said many residents do not want more apartments. City Planner Licht outlined the housing related policies of the Comprehensive Plan. CM Dunlap is concerned about the long term financial impact to the City. City Planner Licht said density is a benefit to the City in terms of economic development. City Administrator/Finance Director Flaherty said the type of development determines the allocation and the tax capacity, it doesn’t generate revenue, revenue is set in terms of the tax levy by the City Council. Mayor Stockamp asked if other cities have expanded their height requirements. City Planner Licht said cities are either increasing building heights or allowing through a Planned Unit Development. CM Goede said she likes the idea of height diversity along Highway 101. Mayor Stockamp said the step-up in height is respectful to the existing uses. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MAY 27, 2025 Page 6 of 7 Mayor Stockamp appreciates the City reviewing the parking requirements and being thoughtful. CM Tanner has concerns about changes to the character of the City. City Planner Licht said character of the City has been changing for more than 50 years. CM Lund said the City needs to look ahead and plan for development. CM Dunlap has seen cities that have not planned for development and wants to see Otsego financially stable. CM Goede motioned to adopt Ordinance 2025-04 amending the Zoning Ordinance regarding Zoning Districts and mixed uses and approve publication in summary form, seconded by CM Lund. CM Dunlap is opposed to allowing building height over 48 feet. Mayor Stockamp said she would be concerned if the City does not guide the height, noting there may be requests in areas not appropriate for the height. Voting in favor: Stockamp, Goede, and Lund. Voting against: Tanner and Dunlap. Motion carried 3-2. 5. City Council Reports and Updates: A. Heritage Preservation Commission CM Tanner said the Commission did not meet this month. B. Parks and Recreation Commission Liaison CM Lund provided updates regarding the Friedrich Park grand opening. C. Planning Commission Liaison CM Dunlap said the Commission reviewed multiple applications, some of which were on the agenda tonight and others that will be on future agendas. D. Public Safety Commission Liaison CM Goede said the Commission has chosen to start their meetings with the pledge of allegiance, acknowledged first responder safety month, and is updating their mission statement. 5.1 Approve Pay Application #5 for the Fire & Emergency Services Facility Project. CM Dunlap opposes this action because the City receives services from the existing contract providers at a price point that is cost-effective for the taxpayers. CM Tanner motioned to approve Pay Application #5 in the amount of $257,709.35 for work completed on the Fire & Emergency Service Facility project, seconded by CM Goede. Voting in favor: Stockamp, Goede, Lund, and Tanner. Voting against: Dunlap. Motion carried 4-1. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MAY 27, 2025 Page 7 of 7 6. Staff Reports and Updates: 6.1 Consider Scheduling Special City Council Meetings for Audit Presentation & Budget Discussions. Mayor Stockamp motioned to call for a Special Meeting on Monday, June 9th at 6pm for the Audit Presentation, seconded by Dunlap. All in favor. Motion carried 5-0. City Administrator/Finance Director Flaherty said the special meetings for budget discussions will be scheduled at a later date. 6.2 Employee Resignation CM Goede motioned to accept the resignation of Matt Sinna from the position of Mechanic, effective May 27, 2025, seconded by CM Tanner. All in favor. Motion carried 5-0. City Administrator/Finance Director Flaherty said he and Streets Operation Manager Lamson met with Albertville staff to address the compost issues. The proposal is a gate with an attendant during set hours; an informational flyer will be prepared for the residents prior to the change. CM Dunlap proposed a season pass to help generate revenue to recover costs. Flaherty noted a cost recovery is not currently being considered but will continue those discussions with the City of Albertville. Emergency Services Director Rausch said the Emergency Services Groundbreaking is tomorrow, May 28th at 3:30 PM. Sergeant Jason Oltmanns, Wright County Sheriff’s Office provided updates regarding an increase in traffic, vehicle/motorcycle accidents, and the compost site. 7. Adjourn. CM Goede motioned to adjourn at 9:51 PM, seconded by CM Tanner. All in favor. Motion carried 5-0. Minutes prepared by City Clerk, Audra Etzel. City of Otsego: _________________________________ Jessica Stockamp, Mayor ATTEST: ___________________________ Audra Etzel, City Clerk